THE POULTRY SECTOR DEMANDS URGENT MEASURES FROM THE GOVERNMENT AND THE EU DUE TO THE COLLECTIVE SALES IN THE HORECA CHANNEL AND COLLECTIVES

Production planned to respond to Easter or international tourism in summer faces losses that could exceed 600 million euros

Propollo, which represents the 90% of the poultry sector, requests financial and fiscal support from national and European public administrations for cold storage, as well as to encourage sales in the national and international market

MADRID, April 8, 2020. The Interprofessional Association of Poultry Farming of Chicken Meat (Propollo), has made a appeal to the Government of Spain, through the Ministry of Agriculture, Fisheries and Food, as well as the European Comission, to respond to the production and employment crisis that is already affecting the poultry sector due to the lack of activity in the HORECA sector during Easter, and the international and local tourism forecasts for the summer due to the COVID-19 emergency.

After the exemplary response of the poultry sector to society during the first two weeks of confinement in March, when it had to increase production output to the distribution channel (large and medium-sized stores, hypermarkets and retailers) to 25%, with the extra costs logistics and personnel that this means, poultry farmers saw sales stagnate starting on the 27th of the same month, up to the usual levels in retail, and without activity in HORECA.

The absence of international tourism at Easter (more than 7.1 million visitors in April 2019), and the summer forecasts, when a 63% of spending equivalent to €54 billion is concentrated for more than 64 million visitors, will generate a decrease in demand for poultry meat also in the retail channel.

It is estimated that chicken consumption among international tourists ranges between 16 and 41 million kilos, for an average consumption of 200g/stay or 500g/stay. By autonomous communities, the largest falls in chicken consumption are expected in Catalonia (17,54%), Community of Andalusia (16,03%) and Madrid (14%), according to Propollo analysis. 

The total production of birds (chicken) each month is around 46 million copies, of which a 25% are derived to the HORECA channel. The collapse in demand for this channel has a special effect on the roast chicken section. According to figures from the previous year, only Demand for roast chickens represented 65% of sales in summer 2019, closely linked to large events and tourism on the coast.

The losses derived from the drop in demand could mean up to 600 million euros for the poultry sector. Its effects are already noticeable in companies, many of which are SMEs and family businesses.

In order to alleviate these effects, from Propollo The following measures are requested:

  • Subsidy lines for cold storage incentive (frozen), given the high impact it would have on production prices, in order not to lose the processed product.  
  • Support to maintain parental populations, which will be reduced if their breeding is not possible as a protection measure.
  • Incorporation of poultry meat ICEX sector program for export support campaigns, since it is one of the few sectors not considered.
  • Tax reduction that tax the activity of livestock farmers and industrialists in the poultry meat sector, in line with its role as an essential sector to supply food products to the population.

For Antonio Sanchez, President of Propollo:

“"We are facing a critical situation for the livestock and agri-food sector in general, but with a special impact on the poultry meat sector, which represents 23% of national production."

“The incidence of the fall in tourism in products such as roast chickens has a catastrophic impact on producers and farms, especially vulnerable due to their family and rural profile in many cases.”

"At Propollo we demand an immediate action plan from public administrations, since the consequences for employment and the business fabric are already here, and as an essential sector for the supply of essential products to Spanish consumers, we are assuming an exemplary commitment to respond to this demand, incurring extraordinary costs, for which we need immediate support”.

THE DISTRIBUTION OF POULTRY MEAT GROWS BY 25% IN MARCH

Madrid concentrated a demand of more than 410 tons in two days (March 10 and 11), while Catalonia and Andalusia grew above 10% in their first week of confinement

MADRID, April 2, 2020. The Interprofessional Association of Poultry Farming of Chicken Meat (Propollo: www.propollo.es), which brings together more than 65 associated companies throughout Spain, has analyzed the evolution of demand for chicken, turkey and other birds in the distribution channel during the first weeks of March, the first month of the coronavirus incidence in our country.

According to data from its associates, since the beginning of the closure of schools and educational centers, first in Madrid (March 11), and until March 27, The sale of this type of meat in distribution channels has increased nationally by 25% (large and medium-sized stores, hypermarkets, and retailers) with respect to the previous usual volume, which was around 24,000 mt per week.

In total they have been placed in supermarkets more than 6,000 extra tons in the week of March 9 to 15, by 3,600tm in the week of March 16 to 22, and has normalized again in the week of March 23 to 29. This represents increases of 25% and 15%, respectively in the first two weeks. On the other hand, turkey also saw increases in distribution demand without affecting the normal production rate.

The general increase in demand in distribution was accompanied by a drastic reduction of the HORECA channel (Hospitality, Restaurants and Cafes) to zero, so direct sales points to consumers have absorbed this production, which has been responded to normally from the sector.

Total, Propollo brings together more than 65 companies, with more than 5,000 farms and production centers, 281 cutting and processing plants, and directly employs more than 40,000 professionals, representing the 90% of the sector.

Madrid and Catalonia lead the way in consumption  

By autonomous communities, Madrid, the first to adopt measures to close schools, registered a demand of more than 410 MT only on March 10 and 11, which represents an increase in 15%, which has risen to the national average of 25% in the period analyzed. In the first week of general confinement, Catalonia recorded a peak demand with 13.8% (470 Tm); Meanwhile in Andalusia It was 10% (520 MT). These two communities are the ones that consume the most poultry meat.

For Jordi Montfort, Secretary General of Propollo and spokesman for the Association, “The sector keeps all its production centers active and is currently committed to the health of workers to continue with normal supply to the market, where a stabilization of the demand curve is expected for the month of April. The management team is in permanent contact with the Public and Health Administrations to inform the sector of the different changes in the guidelines, being one of the industries with the highest demands and standards in terms of biosafety for all personnel.”

Consumer recommendations

Propollo thanks the professionals and production companies, as well as the entire distribution chain, for their involvement and commitment at this time. And some recommendations are made for consumers:

  • Respect the lockdown and make the fewest trips abroad.
  • Opt for home delivery through reference companies to the extent possible.
  • Do not accumulate unnecessarily excess food stock, although you can make a planned purchase based on the storage conditions you have in your home to avoid unnecessary trips.
  • Follow basic rules of hygiene and disinfection of hands and surfaces, as well as food handling areas in the kitchen to avoid cross contamination (cooked foods/raw foods).
  • Cook food and respect their conservation times once cooked.