Energy costs are surging at a time when poultry producers face a fragile balance between input prices and meat prices. Heat and power expenses threaten the local chicken supply after the summer, with rising gas and electricity costs affecting farms across the region and Spain as a whole. The Small Farmers Association (UPA) warns that farmers could lose about 10 to 15 cents per bird unless meat companies raise their purchasing prices, potentially pushing the market toward a chicken shortage from October.
Carlos Esparcia, head of livestock for the UPA, told La Opinion that the fattening cycle for a chicken lasts roughly two months. He cautions that there will be little to no production in two months unless the existing flock is replaced to begin a fresh cycle.
Local estimates place the number of chicken farms in the area at around 240 to 250, with an annual contribution of roughly 27 to 28 million birds. The cost pressures stem from the energy crisis, and producers say the rise in chicken meat prices in supermarkets has not yet reached farmers linked to integrated firms.
Integrated firms buy chickens, provide fattening facilities, and deliver birds to farmers for further processing. Poultry farmers also bear the responsibility for animal care during their time on the farm.
The UPA argues that energy bills are unsustainable for farms, which have high electricity use in summer and gas consumption in winter to maintain stable enclosure temperatures. Esparcia notes that young birds require gas heat, while cooling becomes essential when weather is warm due to the high bird density on farms.
Losses in the region could reach 3.5 million euros. Esparcia, who heads livestock for the regional UPA, estimates that Murcia’s chicken producers will face about 3.5 million euros in losses from higher energy costs. Across Spain, the UPA projects total losses could reach 75 million euros by year end if the firms they supply do not provide higher payments for the chickens they have fed for months.
Current estimates place overall energy-related costs around 32 million euros, with electricity accounting for about 75 to 80 percent of a typical farmer’s variable costs in integrated poultry operations. Propane usage has spiked from 0.85 to two euros per kilo, a jump that pushes the average farm’s propane bill from roughly 2,000 euros to 5,000 euros. Such increases are described as unbearable, prompting farmers to seek loans to cover expenses.
In a statement, the agriculture group says poultry employers have met with leaders and are pressing firms to comply with the Food Chain Act and shoulder production costs. Esparcia emphasizes that farmers cannot charge less than 0.55 to 0.60 euros per chicken; currently, prices paid by meat companies are too low to cover costs. Attempts to obtain a response from Avianza, the industry group for meat companies, did not yield a comment for this report.
Heatwaves recorded since May have tripled electricity bills for producers, though the firms they work with have not reassessed prices paid to the farmers who raise and feed the birds. Esparcia notes that a chicken earns less than 60 cents for producers, while meat companies pay around 45 to 50 cents, leaving production costs uncovered.
Meanwhile, supermarkets and department stores push meat prices up in their shops. Esparcia says consumer prices rose from about 2.20–2.50 euros per kilo to roughly 3.20–3.50 euros. Some farmers say they may stop operations due to ongoing losses from cooling and other expense pressures.
The UPA estimates that Spanish consumers are paying roughly 35 percent more for chicken than six months ago, while farmers capture little of that increase. Profitability has collapsed, threatening farm viability in several regions. The association warns the situation could trigger a nationwide chicken shortage in October if costs remain unmet.
Esparcia notes that poultry farms have invested heavily to improve animal welfare and climate control, including continuous temperature management, ventilation, and feed systems. He adds that there has been little generational shift in the sector, with average ages around mid-40s. Many young people have entered poultry farming, though the UPA criticizes that some beneficiary companies still operate without formal contracts, leaving farmers to absorb production costs.
Carlos Esparcia: “We no longer remember the pandemic”
Esparcia reflects on a past era when farmers in the region were dedicated to raising chickens and supermarkets once faced empty shelves. He recalls the initial fear that stockouts would spike looting before shoppers realized supply was guaranteed. The post-crisis period brought foreign supply shortages and higher freight costs in 2021, followed by grain price increases tied to the 2022 invasion of Ukraine.
Ukraine’s export challenges led to seeking alternative suppliers, underscoring the risk of dependence on third countries. The UPA calls for enforcing the Food Chain Act to ensure poultry farms can cover production costs and avoid selling poultry below cost. The market’s current dynamic emphasizes higher consumer prices with limited producer gains, a misalignment the association seeks to address.