Rising energy costs and expensive inputs have touched many sectors, from industry to hospitality and agriculture. Yet animal husbandry faces a uniquely sharp impact. In Alicante, for instance, two years saw the loss of about 46,000 chickens and 23,000 goats and sheep, equating to roughly 20% of the regional total. The reason lies in the unaffordable costs tied to daily animal care, which pushed ranchers to stop replacing stock. The consequence is a drop in meat, milk, and egg production, threatening supply stability within the region.
Livestock has long contended with a challenging environment. The latest census from the National Institute of Statistics (INE) shows a steady decline: Alicante registered 630 farm closures, falling from 1,590 in 2009 to 960 in 2020. This trend accelerated in the past two years, paralleling the surge in operating costs that push many businesses to the brink. Juan Luis Gimeno, who leads the sector in Asaja-Alicante and runs a goat farm in Monóvar, warns that the outlook is grim. He notes, for example, feed costs up about 60% and medicines up around 40%, with electricity prices still well above 2020 levels. He recalls, “Filling a silo used to cost 3,500 euros and now 6,000 euros, while a feed truck has risen from 1,400 to 2,800 euros.”
These cost pressures have translated into higher prices for meat and dairy from producers, but the increases have not fully matched the added expenses, underscoring the message that many operators can barely cope. The shrinkage in headcount among goats and sheep is estimated by Asaja to be around 20%. Farmers have opted not to replace animals because it takes a year before new stock begins producing, all while the operation must be sustained without immediate returns.
The resulting decrease also affects the volume of meat and milk available for cheese production and other value chains. In the goat and sheep sector, the contraction exacerbates losses linked to diseases such as tuberculosis, further shrinking the supply and raising production risk in the region.
Chickens
A similar pattern appears in laying hens. Vicente Sánchez, who runs a poultry farm in Novelda, explains that rising grain and electricity costs are compounded by increasing bird prices. The net effect is that natural losses, like those for goats and sheep, are no longer covered, and mandatory sanitary evacuations on farms add to the strain. “I have 12,000 chickens in my facility,” he notes, “so replacing them would cost around 100,000 euros, a daunting amount to cover.” He cautions that European animal welfare rules — which will require all birds kept in cages to be on the ground — could cut farm capacity by half in some cases.
On the other hand, free-range producers, such as Paco Baeza’s operation in Mutxamel, feel somewhat less pressure because their eggs command higher prices. Still, rising costs, including packaging, compress margins, making it hard to maintain profitable pricing without sacrificing market viability.
The broader picture shows a worrying decline in farm numbers and livestock headcount across the region. The state has moved toward fewer farms and fewer animals, diminishing production capacity and resilience. Eggs, in particular, are becoming scarcer, a trend worsened by an avian influenza outbreak affecting Europe and northern Spain. This has led some retailers, like BonÀrea, to ration egg distribution, though Valencian suppliers report stable on-time deliveries for now. These dynamics are likely to shape policy and market responses in the months ahead, with the food chain under close scrutiny by industry groups.
Industry observers note that these pressures will be a key topic at a briefing organized by Asaja next Monday in Elche. The discussion will also examine potential violations of the Food Chain Law and how producers can be fairly compensated, according to Ramón Espinosa, Asaja’s technical secretary. The overarching concern is clear: farmers must not be paid below the cost of production, ensuring the sustainability of local food systems in the face of rising costs and regulatory changes. [Asaja-Alicante] [INE] [Asucova]