Avianza Statement June 22, 2022

In relation to the information about “possible chicken shortages after the summer”:

AVIANZA shows its commitment to Spanish consumers and calls for the responsibility of all members of the food chain

Madrid, June 22, 2022.- From Avianza, the Spanish Interprofessional Association of Poultry Meat, which represents 90% of the production of chicken, turkey and quail meat in our country, we consider it necessary to call for the responsibility of the entire food chain to transfer confidence to Spanish consumers at a time, once again, of maximum tension in the market.

We represent the activity of more than 5,000 farms, 280 production centers, 120 slaughterhouses, as well as 65 integrating companies, which means more than 40,000 professionals linked to the sector directly and indirectly. A sector that integrates the activity of farmers, veterinarians, producers of raw materials, slaughterhouses, cutting and production centers, marketing companies, logistics, specialists in genetics, foreign trade, sustainability, innovation, etc.

Our mission has been and is to ensure the defense of a priority sector in the agricultural and livestock field of our country, where poultry meat is the most consumed in Spain, and which represented a volume of more than 1.4 million tons of poultry meat. produced in 2021.

Since March 2020, when the health crisis caused by the COVID19 pandemic and its economic and social consequences began, we have been one of the sectors hardest hit by the increase in raw materials for the production of feed, energy, transportation, measures additional health control measures, increase in supplies, war in Ukraine, transport strike, etc.

And at all times, our companies and professionals have maintained their activity to ensure the supply of poultry meat to consumers, even in the worst moments of confinement. We are, therefore, a responsible, committed sector that advocates constant cooperation, and we have done this despite the great difficulties that both the aforementioned professionals and the companies involved have had.

For this reason, as a poultry sector we have remained united to demand that both Spanish and European public administrations, as well as the distribution sector, the main marketer of our products, adopt measures to correspond to the great human and business efforts undertaken to maintain our production at all times.

It is necessary to advance in the weighting of public aid to a sector that, due to its weight, is undervalued, with items that do not correspond to our volume or importance in the economy. All this, within a constructive and at the same time firm dialogue with the administrations.

We have also asked the distribution channels for this responsibility, with the review of trade agreements that will adapt to the new macroeconomic situations, since the entire production chain, from genetics to breeding, through production, processing and marketing of the product She is exhausted after more than two years of continuous efforts.

Some data show the dimension of an unsustainable situation, since the reality and figures are alarming for everyone who is part of the production chain.

• It has gone from a price of 36.2 euros/MWh to €289.62/MWh according to data from the Iberian Electricity Market Operator (OMIE). The cost of energy is key for farms, slaughterhouses, production centers, logistics and transportation, etc.
• If we add to this that cereals have increased, we go from having an average feed cost of 300 euros/tonne over the last 5 years to more than 500 euros/tonne in 2022.
• Likewise, of the production cost per kilo of chicken, 70% goes to the feed. These costs have been assumed by the integration companies with full responsibility to continue bringing poultry meat to the population. For example, the integrators have had a cost increase of 40% of costs since January 2022 and only 15.5 % has been passed on to them.

As we said, the poultry sector is made up of countless other actors such as genetic research, farm breeding, production or processing, marketing, labor, the plastic and cardboard sector, logistics, etc. All these branches are in critical condition.

We agree, and we convey this to all the agents involved in the sector, that compliance with the Chain Law is needed, but in real time and in a fair manner and for this to be the case we need responsibility on the part of the distribution to make a remuneration according to the increase in all these items.

As we said, the poultry sector as a whole is exhausted, with all companies assuming critical losses, but again, as on previous occasions, the union of all of us, as well as the common defense of our objectives, will be key to overcoming it. As an interprofessional that represents that 90% of the poultry sector, we reaffirm more than ever our commitment to work on it.

Therefore, and most importantly, we call for responsibility not to convey critical messages such as “possible shortages” to consumers, as they can generate even more uncertainty in an already tense social and economic situation. As an association, we represent the interests of the entire sector, and the integrating companies belonging to this interprofessional group convey their commitment to society to continue bringing the necessary product to their homes, while reiterating their willingness to continue collaborating to, in a united way, demand solutions and the necessary help so that our poultry sector is matched with the aid and necessary co-responsibility of the rest of the Food Chain.

Madrid, June 22, 2022.

Antonio Sánchez, president of Avianza / Jordi Montfort, Secretary General of Avianza.