Rising energy costs and the price of raw materials have long been blamed for squeezing sectors like manufacturing, hospitality, and farming. Yet animal husbandry faces a pressure that often seems even more relentless. In Alicante, the livestock sector shows a stark picture: tens of thousands of chickens, goats, and sheep have been lost in a short span, signaling a farming crisis driven by unaffordable care costs that keep ranchers from replacing stock. The consequence is clear: lower meat, milk, and egg production, with potential supply gaps looming over the market.
For some time, livestock has endured a precarious situation. The latest census from the National Institute of Statistics reveals a troubling trend in Alicante: 630 farms disappeared, dropping from 1,590 in 2009 to 960 in 2020. This acceleration over the past two years aligns with the surge in operating costs that pushes businesses to the edge. Asaja-Alicante reports that the outlook appears bleak, noting soaring expenses in essentials like feed and medicines, while electricity costs remain well above 2020 levels. A farmer remarking on silo filling illustrates the strain: 3,500 euros once to 6,000 euros now, and freight for feed rising from 1,400 to 2,800 euros. These numbers translate into higher meat and dairy prices for producers, though the increases do not always cover the added costs, leaving many with a narrow margin to operate. [Asaja Alicante]
The result is a meaningful reduction in headcounts for both goats and sheep, a drop estimated around 20 percent by farm managers. The reasoning is pragmatic: replacing animals takes time, during which farmers must carry ongoing costs without immediate returns. In other words, the enterprise faces a cash-flow squeeze that discourages breeders from expanding or even maintaining stock, with the additional consequence of potential losses from disease like tuberculosis, which further reduces meat and milk outputs needed for cheese production. [Asaja Alicante]
Chickens face a parallel squeeze. Vicente Sánchez, who runs a farm in Novelda, notes that grain and electricity costs are up, and the price of birds themselves has climbed as well. The tragedy mirrors the goats and sheep: natural losses and mandatory sanitary measures can no longer be absorbed. Sánchez explains that maintaining a 12,000-chicken operation would require roughly 100,000 euros to replace the birds, a sum that is often unrealizable in the current climate. He also warns that upcoming European welfare rules, which will phase out cages, could reduce farm capacity by about half. [Regulatory impact]
In contrast, free-range operations such as Paco Baeza’s farm in Mutxamel see some relief from higher egg prices, but they still wrestle with squeezed margins. Packaging costs and other expenses have trimmed profitability to a level where selling at a competitive price becomes extremely challenging. The overall tone remains cautious, with producers continuing to endure tight financial constraints while striving to keep supply stable. [Market signals]
A broader picture emerges
The sector-wide impact is clear: over a decade, around 630 farms and roughly 50,000 head of cattle have disappeared in the region, reflecting a structural shift in local farming. Egg production faces particular strain, in part due to an avian flu outbreak that ripples across Europe and northern Spain. Some supermarket chains briefly ration eggs, though Valencian suppliers say deliveries remain steady for now. [Health and market dynamics]
The situation has prompted a formal briefing by Asaja next Monday in Elche. Discussions will focus on enforcement of the Food Chain Law and the need to address violations, according to the technical secretary, Ramón Espinosa. Farmers are currently not compensated at prices that cover costs, a core concern driving the sector’s cautious stance and urging stronger policy support. [Industry advocacy]