Price surge puts EU poultry meat production at risk

Operators in the poultry meat supply chain are struggling to maintain production levels due to very high energy and feed prices. AVEC President Paul Lopez urges decision makers to prioritize food and poultry production to ensure affordable and continuous supplies in the coming weeks.

Poultry meat producers are affected by unprecedented increases in energy costs (particularly natural gas, fuel and electricity), CO2Packaging and external workers jeopardizing the continuity of production.

Energy and gas supply are particularly important for the primary breeding of poultry in order to maintain the welfare of the birds. The Russian invasion of Ukraine has also led to a significant increase in feed prices, which account for 70% of poultry production costs. This has created a situation where farmers may choose to halt production in the coming weeks rather than risk large financial losses. There are enormous difficulties in channeling the additional costs through the supply chain, so the support of the authorities is urgently needed.

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Crucial Sector

Policymakers should continue to prioritize the poultry meat sector for access to energy and feed, similar to the Covid-19 crisis when poultry was considered a crucial sector. However, access to energy and feed is not enough. If affordable and stable prices cannot be guaranteed, the survival of the sector is at stake. The EU Commission must support Member States to intervene to bring energy prices to reasonable levels, increase liquidity in energy markets, diversify energy supplies and seek solutions e.g.

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Lopez: “Sustainable production is our priority and we see our industry as part of the solution when it comes to climate change. Therefore, we ask the authorities to give strong support to our sector to develop and accelerate the transition to sustainable energy sources, limit dependence on foreign suppliers of fossil fuels and feed, and increase the resilience of the sector.”

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