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Avianza Communiqué II General Assembly of Associates

Madrid, July 1, 2022.- After the celebration of the II General Assembly of Associates of the Spanish Interprofessional Association of Poultry Meat (Avianza), last Tuesday, June 28, 2022, we want to convey to the public opinion some of the main conclusions reached, after a in-depth analysis of the current situation our sector is going through, as well as the serious and pressing problems that concern you. Avianza represents practically all the companies in the poultry sector, approximately 90%.

First of all, We want to point out that we do not share the messages that have appeared in recent days in some media about a possible shortage of poultry meat for consumers.. Although we respect the opinion of the different actors in the sector, and even though we are the first to confirm that there are serious problems that affect us, we believe that at this time alarmist news cannot be conveyed to the public opinion, which, in addition, can lead to greater problems. .

We are aware that all productive sectors of our country, also at a global level, We are suffering from the unaffordable increases in current energy costs, but to this it must be added in the specific case of meat-poultry sector, the very strong escalation of raw materials, wheat, barley, corn, soybeans... that we have been suffering from since the end of 2020.

Just some data: the cost of feed is approximately 70% of the total production costs of the poultry sector, The price of raw materials for feed formulation has increased by 100% in the last year and a half, a 50% since the war between Ukraine and Russia began at the end of last February, with the aggravating factor that both countries produce 30% of all world cereal production.

And this brutal cost increase It has barely been able to be passed on to our main clients, especially the Distribution channel (large stores), which represents 80% of all sales in our sector, with the poultry companies themselves having to assume the rest of the cost.

We consider that it is good for all economic operators in the poultry-meat sector that The Food Chain Law is respected, in all phases of the production process, in which not only are the poultry meat processing companies, but also, of course, all our integrated farmers and, of course, those who make our products available to final consumers, both Large Distribution, such as the Horeca Channel or operators in more traditional markets.

Otherwise, the companies represented in AVIANZA will continue to suffer significant losses that could condition its own viability. And at this point, we insist, we do not forget our associated farmers, an important part of the production process.

We ask that the value of the product be recognized what do we do, its contribution to the healthy diet of millions of people and its role as a generator of employment, as well as its contribution to the Gross Domestic Product of our country and, ultimately, its contribution to the sustainable well-being of the population.  

We want finally thank you for the support we receive from all Public Administrations, state, regional and local, among them, the Ministry of Agriculture, Fisheries and Food, which we allow ourselves to personalize in the Minister, Mr. Luis Planas. We know that the needs are infinite and the resources are limited, but we fully trust that we can count on your decisive support. A good example of this was the participation in the closing of the Assembly of Mr. Fernando Miranda, Secretary General of Agriculture and Food, whose assistance we especially appreciate. AVIANZA. Spanish Interprofessional Association of Poultry Meat.

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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.