Spain's dairy industry is facing a challenge as the number of cows and heifers has decreased by 3.2% and 0.3% respectively compared to the previous year, totaling 784,846 cows and 271,142 heifers in March 2023. This decline is attributed to producers ceasing production due to financial losses, leading to a reduction in farm numbers and a 2.2% drop in production in 2022, despite price increases in the fourth quarter of the same year. The industry's future depends on the actions taken by the industry, distribution, and consumers to maintain milk supply and profitability.