Rising Costs and Alicante Livestock: Impacts on Farms, Meat, and Eggs

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Overview of Rising Costs and Their Impact on Alicante Livestock

Rising energy prices and higher costs for raw materials have touched many sectors, but animal husbandry faces some of the sharpest pressures. In Alicante, the combination of more expensive feed, medicines, and energy has led farmers to postpone renewing herds. The result is a noticeable drop in meat, milk, and egg production, raising concerns about future supply and prices.

Recent data from national statistics confirms a troubling trend. The latest census shows a decrease in livestock holdings across the region, with the number of active farms falling markedly from 1,590 in 2009 to 960 in 2020. This decline signals deeper structural pressures in the sector that have only intensified in recent years.

Over the last two years, the cost rises have accelerated and affected every link in the production chain. Farmers report sharp increases in inputs such as animal feed, with costs climbing dramatically, and pharmaceuticals also becoming more expensive. Electricity bills remain well above the levels seen in 2020. For example, a farmer recalls that filling a silo used to cost about 3,500 euros, but that figure has risen to around 6,000 euros. The price of a feed truck has nearly doubled, moving from about 1,400 euros to 2,800 euros. These numbers illustrate how production economics tighten quickly when input costs climb.

These cost pressures translate into higher prices for meat and dairy products for producers, though not always to the same extent as the increases in farming costs themselves. The result is a sense of strain, with many operators saying they barely manage to stay afloat.

The effects show up in farm headcounts as well. Estimates from the sector group suggest a roughly 20 percent reduction in both goat and sheep stocks. Farmers face a tough choice: replace animals to maintain production or wait, knowing it takes a year before new stock becomes productive. Meanwhile, ongoing costs must be shouldered without immediate returns, creating a fragile balance for many holdings.

Beyond herd numbers, the decrease contributes to a reduction in the supply of meat and milk used for cheese production. Tuberculosis cases and other health challenges add to the pressures on animal populations and available output.

Chickens and Laying Hens under Strain

A similar story unfolds for laying hens. A farm owner in Novelda notes that grain and electricity costs have risen, and the price of birds has climbed as well. The combined effect is that natural losses, along with mandatory sanitary evacuations on farms, become harder to absorb. He cites that maintaining 12,000 birds would require a replacement cost approaching 100,000 euros, illustrating how vulnerable operations can be to a single setback.

European welfare regulations aimed at cages are expected to reduce farm capacity significantly, with some predictions estimating a possible 50 percent drop in output for certain operations. This regulatory pressure compounds the financial challenges already faced by producers.

In contrast, free-range poultry operations, such as a farm in Mutxamel, face somewhat different dynamics. Their eggs can command higher prices, providing some insulation from rising costs. Yet even these producers see margins squeezed by packaging costs and other increased expenses that limit profitability and complicate pricing efforts.

Overall, the region has seen a marked contraction in poultry and livestock holdings as costs outrun returns. The industry faces a pivotal moment where options to safeguard livelihoods, maintain production levels, and meet consumer demand must be discussed and addressed at public briefings and within the sector networks. The broader question remains: how can producers adapt quickly enough to sustain farms and communities that rely on their outputs?

Eggs, in particular, have become a focal point of concern. The avian flu outbreak affecting parts of Europe and northern Spain has prompted rationing by some large retailers. While suppliers in the Valencian Community have reported stable delivery for now, the overall trend points to tighter availability and higher prices for a staple item that many households depend on. This situation underscores the sensitivity of the supply chain to disease outbreaks and market shocks, especially in a landscape already stressed by cost pressures.

Industry representatives from the Asaja association note that these challenges will be central to discussions at an upcoming briefing. Beyond highlighting cost pressures, the meeting will also address potential violations of food chain regulations and the need to ensure that farmers receive fair compensation for their products. The message from the sector is clear: producers should not be paid below their costs, a situation that would undermine the viability of farms and the communities they support. (Fuente: INE and regional farming associations)

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