Retail Sector Agreed to Sell Chicken Too Cheaply, Says UPA19 August 2013
SPAIN - The Spanish Union of Small Farmers and Ranchers (UPA) claims that there appears to be a "hidden pact" among large retailers to sell chicken meat at €2.14 per kg, while the Ministry of Agriculture says the cost should be 20 per cent higher to cover the cost of production.
Despite the increase in consumption and reduction in the supply of chickens during the summer months, the UP said that this distribution as a commercial meat "trivializes the product, destroying its value along the chain."
In recent months, UPA has been reporting the pressure it has been exerting on different distribution groups that are "consistently using chicken meat as a product claim."
During the summer months, the chicken meat sector reduces supplies due to weather conditions, offering lower weight chickens. This means that every week there is between 20 to 25 per cent less meat on the market than any other week of the year.
However, neither reduction nor traditional supply have increased consumption resulting from the presence of more people in the country during the summer months. This has allowed large distribution chains to establish a retail price higher than the production costs, according to the Ministry of Agriculture, Food and Environment, as reported by the Observatory of Prices.
UPA claims that there is an agreement between the various chicken meat distribution channels to maintain a selling price between 2.14 and 2.15 €/kg, while according to the cited cost, these amount to 2.70 €/kg. UPA is examining the possibility of filing a complaint with the National Competition Commission, denouncing this situation.
According to UPA, the distribution "is putting a strain on the beef sector," which until now had been able to maintain a level of activity similar to that before the economic crisis.
ThePoultrySite News Desk