Last Thursday, the government ordered complete poultry farming to stop the spread of the H5N1 virus. The tough measures come in the midst of a winter campaign that has seen 2.5 million animals slaughtered and strained the poultry sector. … Unprecedented health, regulation, and economics. Avian influenza has revealed the difficulties in this sector, as well as the huge impact on the national economy.
For decades, eggs have been the victim of health stigma. However, scientific evidence has brought it back as a complete, versatile and affordable protein. Spanish consumers understand this better than many regulators. Since 2019, consumption has increased by 16.7%, or more than 1.2 billion pieces per year. Currently, one in six breakfasts in Spain contains eggs. The problem is that production hasn’t kept up with that pace. Spain still has a surplus, producing more than it consumes, but there is a mismatch between demand growth and supply growth, which is creating tension. Minister Luis Planas himself acknowledges this gap, but believes the industry can respond. In the market, the difference is already noticeable. Long before the virus threat hit farms hard, egg prices rose 22% in the last year.
The root cause is political, not health. The city of Brussels has increased its requirements for animal welfare, forcing producers to change facilities and processes without guaranteeing proportionate economic returns. In four years, the cage system lost more than 15 allocation points. This could result in more expensive offers, less flexibility and changes such as those currently being imposed due to avian influenza.
The plague acts as a catalyst here. A similar crisis in the United States in 2022 resulted in the culling of millions of birds, resulting in $1.4 billion in direct costs and $14.5 billion in additional costs to consumers. The government responded with a $1 billion plan to strengthen biosecurity. The lack of aid here is conspicuous so far. As happened in the US, shopping carts and CPI will be significantly affected in the coming months. Chickens are also showing signs of fatigue. 97% of birds are kept indoors, but prices have increased by 7.5% since May last year. This protein has long been a barrier to food inflation, and its removal would have a particularly big impact on the most vulnerable households and the middle class, already squeezed by tax burdens and inflation.
Meanwhile, European producers compete at a disadvantage compared to imports from third countries that do not meet the same standards. Adding to the contradictions is the own condemnation of Agriculture Commissioner Christoph Hansen, who on the 4th publicly scolded member states for not enforcing stricter border controls. “We have some of the strictest phytosanitary regulations in the world, but they are only effective if good controls are in place,” he said. Brussels is opening up its markets but not monitoring what comes in. Therefore, the lack of protection has a double meaning. Eggs have returned to the Spanish table as a symbol of their own virtues and balanced nutrition, but if we don’t stop adding to the burden on those who produce them, they will soon become a new luxury that we cannot afford every day. What this field needs is clear, consistent, and fair rules, not more speeches.
About The Author
