After becoming aware of Grupo Damm’s announcement regarding the closure of operations at the Agama plant in Mallorca, the Regional Ministry of Agriculture, Fisheries, and Natural Environment immediately initiated a series of meetings and institutional contacts to assess the situation and explore possible alternatives. From the outset, the department expressed its willingness to work with the company to identify solutions that would allow the continuation of the plant’s operations and safeguard the island’s dairy industry.
Approximately six months ago, within the framework of these discussions, Grupo Damm presented a proposal to transfer the entire Agama industrial operation to stakeholders within the Mallorcan dairy sector. The objective of this initiative was to ensure the continuity of milk production and commercialisation in Mallorca, maintaining an industrial facility that plays a significant role in the processing and distribution of dairy products on the island.
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Agama Closure
The Regional Ministry examined this proposal with diligence and institutional commitment, considering it a strategic opportunity to preserve a key activity for the Mallorcan primary sector. As part of this process, a comprehensive assessment of the plant’s assets was carried out, and a negotiation process was initiated, promoting constructive dialogue among all parties involved in order to evaluate the feasibility of the project.
The proposal was to create a public-private company to guarantee the continuity of industrial activity. Under this model, the Government of the Balearic Islands would hold a 25% participation, a private investor would contribute 50%, and the remaining 25% would correspond to the plant’s workers and the dairy farmers supplying milk to Grupo Damm. This structure aimed to strengthen the local dairy value chain and improve the long-term viability of the farms connected to milk production.
However, the three dairy farmers supplying milk to Grupo Damm ultimately decided not to join the proposed initiative and chose instead to explore alternative options for the future of their farms. As the involvement of primary producers was an essential element of the project, the absence of their participation made it impossible to continue negotiations under the proposed framework.
Throughout the entire process, the Regional Ministry emphasises that it acted with responsibility, initiative and a strong commitment to the primary sector of the Balearic Islands, leading efforts aimed at preserving industrial activity and protecting the productive ecosystem linked to the Agama facility. At the same time, the Government fully respects the decision taken by the farmers.
The Government of the Balearic Islands remains committed to supporting the dairy sector and will continue working to promote new initiatives that reinforce the profitability and sustainability of dairy farms. The institutional objective is to identify opportunities that ensure the future of dairy farming and strengthen the agri-food value chain across the Balearic Islands.