The poultry sector in Europe is facing challenges due to proposed animal welfare regulations and the pricing strategies of supermarkets. The regulations could reduce farm capacities by a third, while supermarkets using chicken meat for promotions negatively impact prices for farmers. Bureaucracy and fiscal pressure are also contributing to the challenges. According to COAG, 5,000 poultry farms could be affected by supermarket promotions, and farmers are considering reducing production to avoid tax pressure. The proposed regulations, administrative obstacles, and tight margins are causing significant pressure on the sector.