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According to estimates by the Ministry of Agriculture, Fisheries and Food, the cost per tonne of feed for chicken had already risen by 26.20% from January 2020 to August 2021. In the case of turkey, it has risen by more than 23%.

Added to this is the cost of electricity prices, which have multiplied by 6 in one year, which has an impact on each bird of 5 cents per kg, which is essential for the incubation, rearing and processing of the birds.

MADRID, 18 October 2021

Data on the evolution of feed raw material prices from the Ministry of Agriculture, Fisheries and Food (see report) show a critical situation for the poultry sector. From January 2020 to August 2021, the cost of chicken feed, the most common in distribution chains, rose by 26.20%, from €297.42 per tonne to €375.37 per tonne. Extrapolating the data to the 600 million birds produced each year in our country, with an average of 3.9 kilos of feed for fattening, in this area alone an overrun of more than 198 million euros is estimated. This extra cost means going from €1.13 per animal feed to €1.46, or more than €0.33 per chicken.

These increases also affect another very common product in our diet: turkey. The cost of feed for fattening has risen from €293.22 per tonne in January 2020 to €362 per tonne today (up 23.4%). A 10 kg bird can require up to 24 kg of feed over the course of its rearing (typically between 8 and 17 kg of weight per bird). From January 2020 to September 2021, the cost of feeding a turkey on a farm has risen from 1.10 €/kg to 1.29 €/kg, i.e. more than 1.9 € extra per turkey. In total, more than 13 million turkeys are produced each year in Spain, so the total cost overrun could exceed €24.7 million.

On the other hand, according to MAPA's own data, average national chicken prices paid to producers have gone from 1.82€/kg to 1.52€/kg (data February 2020 vs. September 2021), 16.49% less(see 2020report and 2021 evolution). In the case of turkey, prices have gone from €2.53/kg to €2.12/kg (data February 2020 vs. September 2021). A 16.2% decrease.

These increases in feed costs would in turn be caused by the rise in the main raw materials, which since January 2021 alone have behaved as follows: maize (up 20.96%), wheat (12.16%), barley (17.99%). In the case of soya, it has risen by 33% from 2020 to 2021.

In addition, in 2020, the turnover of the poultry meat sector fell to 2,184 million euros (5% less than in 2019), due to the crisis caused by the fall in demand, which generated even more pressure for producers.

In this way, the increase in feed costs for chickens, turkeys and quails alone would represent 10.16% of the business generated (222 million euros out of the 2,184 million euros mentioned), to which additional costs would have to be added, such as the adaptation of facilities and the logistics chain in view of the COVID measures.

Added to this is the cost of electricity, which has gone from an annual average in 2020 of €34.0/MWh to a 6 and 7-fold increase in 2021, with an average annual wholesale market price of over €200/MWh. In standard poultry production (poultry farm and processing) this could lead to a cost increase of more than €0.05/kg poultry, which is equivalent to more than €87 million per year for the whole sector. Finally, there has been a CPI increase of more than 4%, which has a direct impact on labour costs in the sector.

The sum total of all these costs puts the Spanish poultry sector on an additional bill of more than 309.7 million euros.

A perfect storm against a strategic sector

Poultry meat is also one of the sectors most affected by the price war between the main distribution chains and operators in Spain. The entry of low-cost chicken from foreign markets, even from outside the EU, also represents a grievance and a threat to the competitiveness of our sector, as in some cases low-priced poultry meat that does not meet European production standards is being introduced into our market.

The latest factor impacting on production costs has been the approval of the collective agreements for Slaughterhouses and Production Centres. With a conciliatory vision from Avianza, and the search for a scenario of stability to avoid supply problems for consumers, an accumulated increase of 2.01% in labour costs is forecast, which will reach 5.17% by the end of 2021, thus providing for labour stability in the sector.

For Jordi Montfort, Avianza's secretary general, "The increase in raw material prices has put the poultry sector in a critical position, together with other factors that have already weakened a collective that is an example of productivity, innovation and quality of its products and that generates thousands of jobs. The data from the Ministry of Agriculture, Fisheries and Food are just the tip of the iceberg of a very complex scenario that is affecting thousands of families in our country, at a time when we need to support our industries more than ever".

LINK TO OFFICIAL DATA

Evolution of feed and raw material prices. Source: Web general MAPA / Informe Estimación Precios Piensos septiembre 2021.

Evolution of average national prices chicken 2021. Evolution 2020. Source: MAPA.

From Do It Yourself to "food critic", without giving up family traditions

What's behind a good roast chicken or a salad with turkey? How do we integrate poultry into our diet? AVIANZA presents an X-ray of the most popular profiles among Spanish consumers during the summer: families, couples and singles.

August 2021. Every year in Spain we produce more than 1.7 million tonnes of poultry, in addition to imports from other countries. In the three summer months alone, more than 120 million birds are consumed, with roast or fried chicken as the star dish, along with grilled turkey fillets as a dish on the rise and the recovery of traditional recipes with native birds, such as quail.

Behind the figures, with an average consumption per person of 14 kg of poultry meat per year, there are many stories that revolve around the most demanded product in our country. Avianza (avianza.org), the Spanish Interprofessional Association for Poultry Meathas carried out an online study on the profile of consumers of this type of product in our country, which shows that choosing a good product, cooking it, plating it and eating it is one of the greatest delights for anyone, regardless of age, gender or marital status.

These are the main conclusions of the study:

Consumers in families: from tradition to healthy experimentation

Many family celebrations in Spain are accompanied by a delicious gastronomic proposal with native poultry meats. Consumers' preferences revolve around chicken and turkey meat because of its versatility, price and success on the weekly menu. They also value the possibility of using all parts of the product and are very receptive to the cooking tips they find on social networks.

Their tastes: barbecued or roast chicken, chicken or turkey salad, chicken curry, fried chicken, crispy fried or free-range chicken, among others, with a strong link to home cooking recipes, especially when combined with regular ingredients in their shopping basket.

It is an environment where women are the main buyers (72% vs. 28% men), and has the widest age range, with 67% between 35 and 54. Also noteworthy is the 28% of shoppers aged 55-64, seniors who have to prepare food for large groups.

The strong intergenerational family ties, cooperation in the preparation of dishes and the scheduling of meals, as well as a great fondness for popular recipes that are characterised by their flavour and that provide a solution to most of the needs of the diners stand out.

Its geographical location is broader than other groups, with a presence in large and small cities, towns and medium-sized municipalities.

Within the families, Avianza has also analysed the profile of parents with young childrenThe majority of the families are between 27 and 44 years of age, with a predominance of women (80% vs. 20% men) as the purchase decision-makers. In this case, we are talking about a woman who calls herself "modern", curious, who likes to be informed, loves the properties of poultry meat and is not afraid to go out of her comfort zone to find technical and specialised information, especially with the aim of offering healthy food to her young children.

They are looking for safety and balance in the diet, beyond the product itself. A nutritional balance and also a balance between what is fun or attractive for children and the recommendations that may not be so much to their liking, but which are essential for their growth. Poultry meat is therefore a creative way to "patiently" respond to nutritional challenges. The increase of turkey on their menu, especially grilled or in cold cuts, is noticeable.

This type of mother and father love the DIY(Do It Yourself), with their own style, without anachronisms and inclusive. They are not parents who want to compete, they love diversity, they are multifaceted, they know it and practice it, and they are able to make "magic with time".

Such families want to experience new things, create new dishes with chicken or turkey, and invite the little ones to be part of the experience.

As shoppers, they are not into bargains, they are suspicious of hoaxes and slogans, and they do not accept being told what to do, buy or take. They are encouraged to draw their own conclusions. Their mission statement is: "I am not a target and neither is my family, you don't know me".

Consumers as a couple: "gastronomy tastes twice as good with the one you love".

Called "gourmets" or "food lovers" because of their interests, they define themselves as foodies. They are passionate about discovering new proposals, especially if they bear the healthy stamp. Their ideal dish for romantic moments usually revolves around poultry (chicken, turkey or native species such as quail) as it allows them to combine "good eating" with well-being. After all, there is nothing worse than a heavy digestion after a dinner for two.

In this type of buyer profile, women show alower age range, starting at 25 years of age, while it rises to 35 years for men. However, we increasingly find childless couples in older age groups, up to 55 years of age. The group of urbanites living in large cities, with higher education, who like to travel, get to know other cultures, and enjoy a medium/high purchasing power, stands out. They are concerned about ecology and climate change, innovative in their diet, and interested in the origin of the product they consume. The Spanish poultry meat seal is a guarantee for them.  

This is the most "masculinised" of the four profiles analysed by the Avianza study, which does not mean that it is the majority, but it does reveal that men play a more prominent role in the decision to buy poultry meat. This is a man who is fond of good food, knowledgeable about the product and comfortable in kitchens. He directly links cooking with well-being in all its phases: from preparing the menu for his week (what do I fancy), designing the route through establishments to find the product he is looking for and has in mind, storage at home (he is an expert in redistributing the freezer), he is concerned about the preparations (marinades, marinades), and he respects and enjoys the rhythms required to obtain the best result.

For this type of consumer, cooking time is personal time, and they do not hesitate to dedicate it to themselves and their partners. That is why they enjoy the plating, the details and the accompaniments to the main product. Gastronomy tastes twice as good with a partner", they say. Seeing their partner enjoy such a carefully prepared dish is part of what unites them. They see cooking as culture, even as "live art". They are consumers of tradition and its modernised versions, but without altering values or principles. Finally, they consider themselves fanatical followers of gourmet food on social networks and specialised online sites. Recipes with less common poultry species are gaining ground, such as capon, pularda, turkey, or quail.

Single consumer: delivery, yes, but without sacrificing quality food.

The live-alone consumer segment has been associated with an interest in nutrient-poor takeaway food, but poultry consumption is one way to break away from that notion. The proliferation of delivery options makes it easier to add poultry dishes to their menu, which are also more resistant to travel and time spent at home.

Singles, students, people who telework at home, we are not only talking about young people, but also about more adult people who are now separated or divorced. The gender distribution is even (50%), with women between 25 and 40 years old, and men between 30 and 45 years old, which also reflects a later exit from home for this second segment.

The "chicken millennial" consumer is "app-addicted, social, critical and free-thinking". They attach great importance to being close to reality, and spend time on home management, nutrition or personal wellbeing. They are pragmatists, pure practicality.

They resort to the delivery service because not having the time or desire to cook is not incompatible with eating well and being satisfied, beyond the usual proposals. They want to try out the novelties of the restaurants and play at being culinary critics.

Their visit to the supermarket is oriented to buy some cut (tray of meat) and the right ingredients, because they also feel ready to cook and make even a better version. They do not have a limited budget, but they want to check which is the best option vs. delivery. They are wary of sales strategies based on purely commercial campaigns, although they are willing to take part in competitions if they are clear about the rules and it is a challenge.

They love their capacity for self-management, making the most of their "single" situation and not passing up satisfying opportunities (cinema, travel, spa, adventure, ...) for tomorrow. Always accompanied by a good gastronomic proposal.