Spanish meat industry braces for losses

The Spanish MEAT industry could suffer significant losses in the coming months if production costs continue to rise. Constantly rising energy bills, rising prices for raw materials and ancillary materials (packaging materials, logistics, additives, cleaning products), labor costs, rising transport costs and container shortages are just some of the problems that worry any player in the industry.

According to the Spanish interprofessional association ANICE, companies in the meat sector could suffer losses of more than 500 million euros if prices continue to rise at the same level and if they do not decrease in the next few months. Electricity is one of the main factors threatening the competitiveness of Spanish companies. “If we take the last 3 months (July-October 2021) for comparison, the average price of electricity was 153.99 euros / MWh, which is 353.48% more than the average price of light for the same period in 2020 ", notes ANICE.

Inflation in Spain is currently at 5.4%, the highest level in 29 years, pushing up labor costs. “All these costs are hitting companies at a critical time as they begin to recover from the pandemic. Added to this are the challenges of rising transport costs and a shortage of containers. all trade routes, which is of particular concern to the industry ahead of the Christmas season,” added ANICE.