Poultry supply chain operators struggle to sustain production levels due to very high energy and feed prices. AVEC President Paul Lopez has urged decision makers to prioritize food and poultry production to ensure affordability and continued supply in the coming weeks.

Poultry meat producers are facing unprecedented increases in energy (especially natural gas, fuel, electricity), CO2, packaging and external labor costs across their supply chains, threatening production continuity.

Energy and gas supplies are especially important for poultry primary breeding to maintain bird welfare. Russia’s invasion of Ukraine also led to a significant increase in feed prices, which accounted for 70% of poultry production costs. This has created a situation where farmers may choose to stop production in the coming weeks rather than risk a large economic loss.

The authorities’ assistance is urgently needed as it will be very difficult to channel additional costs through the supply chain.

Policy makers should continue to prioritize the poultry meat sector for access to energy and feed, similar to the Covid-19 crisis where poultry was seen as a key sector. However, access to energy and feed is inadequate. The viability of the sector is threatened if affordable and stable prices are not guaranteed. The Commission must help Member States to bring energy prices to reasonable levels, increase energy market liquidity, diversify energy supply and find solutions.

Lopez: “Sustainable production is our priority and when it comes to climate change, we see our industry as part of the solution. We urge you to strongly support our sector in developing and accelerating the transition to sources, limiting our dependence on foreign suppliers for fossil fuels and feed, and making the sector more resilient.”

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Source: Poultry World, AVEC.

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