Spain: The war triggers the cost crisis in a cattle farm that reduces its herd

Published 2022년 12월 30일

Tridge summary

The article highlights the impact of the 2022 Ukraine war on the Spanish livestock industry, focusing on the pig, egg, milk, poultry meat, beef cattle, and sheep and goat meat sectors. The war's repercussions include disrupted access to European grain, leading to higher feed and energy costs, which have resulted in a profitability crisis for farmers. The situation has worsened with the surge in raw material prices and epidemics like avian flu. The industry is grappling with challenges such as increased costs, inflation, and difficulties in passing on expenses to later links in the supply chain. Some sectors have seen reductions in livestock numbers, which has helped stabilize prices and improve profitability, albeit on a thin margin. The upcoming year brings concerns about high energy and raw material costs, with the potential for further reductions in livestock numbers in 2023 due to the ongoing financial strain.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The start of the war in Ukraine in 2022 has had endless consequences for livestock, which was left without access to this European granary and had to face the enormous increase in energy prices, which deepened the cost crisis more than They were already dragging and it has ended up diminishing the cabin. At first, the most affected link in the livestock value chain -and without the capacity to pass on the rise in costs- was primary production. However, as the months went by, the increase in costs ended up affecting the entire chain and turned the crisis into a problem of cost and not of margins among the operators, as the main representatives of the sector have expressed to Efeagro. Pigs In the pig sector, feed is now between 15 and 18% more expensive than a year ago, depending on the category and species. The war broke out just as the white pig began to appreciate after its progressive depreciation since the summer of 2021 (when production in China recovered after the swine fever ...

Source: Agroclm