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Avianza Communiqué 22 June 2022

On reports of "possible chicken shortages after the summer":

AVIANZA shows its commitment to Spanish consumers and calls for responsibility from all those involved in the food chain.

Madrid, 22 June 2022 - Avianza, the Spanish Interprofessional Association of Poultry Meat, which represents 90% of the production of chicken, turkey and quail meat in our country, considers it necessary to appeal to the responsibility of the entire food chain to convey 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 centres, 120 slaughterhouses, as well as 65 integrating companies, which means more than 40,000 professionals directly and indirectly linked to the sector. A sector that integrates the activity of farmers, veterinarians, producers of raw materials, slaughterhouses, cutting and production centres, marketing companies, logistics, specialists in genetics, foreign trade, sustainability, innovation, etc.

Our mission has been and continues to be to defend a priority sector in the agricultural and livestock sector in our country, where poultry meat is the most consumed meat in Spain, and which represented a volume of more than 1.4 million tonnes 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 feed production, energy, transport, additional health control measures, rising input costs, the war in Ukraine, transport strikes, 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, which advocates constant cooperation, and we have done this despite the great difficulties encountered by both the aforementioned professionals and the companies involved.

That is why, as a poultry sector, we have remained united to demand that both the 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 made to maintain our production at all times.

It is necessary to make progress in the weighting of public aid to a sector that is undervalued due to its weight, with items that do not correspond to our volume or importance in the economy. All of this must take place 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 revision of commercial agreements that will adapt to the new macroeconomic situation, as the entire production chain, from genetics to breeding, through production, processing and marketing of the product, is exhausted after more than two years of continuous efforts.

Some data show the dimension of an unsustainable situation, as the reality and the figures are alarming for all those involved in the production chain.

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

As we said, the poultry sector is made up of countless other actors such as genetic research, on-farm breeding, production or processing, marketing, labour, the plastics and cardboard sector, logistics, etc. All these ramifications are in a critical state.

We agree, and we convey this to all the agents involved in the sector, that compliance with the Chain Law is necessary, 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 sector to make a payment in line with the increase in all these items.

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

Therefore, and most importantly, we call for responsibility so as not to pass on critical messages such as "possible shortages" to consumers, as these 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 association are committed to society to continue bringing the necessary product to their homes, while reiterating their willingness to continue working together to demand solutions and the necessary help so that our poultry sector receives the necessary aid and co-responsibility from the rest of the Food Chain.

Madrid, 22 June 2022.

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

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