New Animal Welfare Rules in EU Chicken Production: Impacts and Opportunities

Companies and more than 30 NGOs from the European Union (EU) have developed new animal welfare rules for chicken production, known as the European Chicken Commitment (ECC), which should be implemented by 2026.

These standards aim to transform the production system, at an estimated cost of more than 8 billion euros. Although not law, the ECC rules already have the support of more than 300 food companies in the EU, including large retail chains that may prefer products that comply with these guidelines.

Impacts in Practice

Reduced Maximum Stocking: The density of chickens in poultry houses will be reduced from 39 to 30 kilos per square meter. This provides more space for the birds, improving their living conditions.

Slower-growing breeds: The use of slower-growing breeds will reduce the stress and health problems caused by rapid growth, promoting better welfare for the chickens.

Stunning Slaughter: The requirement to slaughter with gas or electric stunning aims to minimize the suffering of the birds during the slaughter process.

Minimum distance between perches: A minimum distance of two meters between perches for every thousand birds allows the chickens to move more freely and exercise natural behaviors.

These measures, while beneficial for animal welfare, have a significant impact on the consumption of natural resources. According to the Association of Chicken Processors and Trade in EU countries (Avec):

• Water consumption will increase by 35.4%.
  

• Feed use will increase by 35.5%.

• Greenhouse gas emissions could rise by 24.4%.

• Meat production is expected to fall by 44%

• An increase of 37.5% per kilo of meat is expected, especially in the domestic market of EU countries

• Almost 10,000 new poultry houses will have to be built, at an estimated cost of 8.24 billion euros.

Trade and the Market for Buying and Selling Chickens

Rising costs: Avec predicts that production costs are likely to rise by 37.5% per kilo of meat. This increase will be reflected in the final price of chicken meat, making it more expensive for European consumers.

Dependence on imports: With local chicken meat production falling by 44% due to the new rules, the EU will have to rely more on imports to meet domestic demand.

Impact on Exporters: Exporting countries such as Brazil, Ukraine and Thailand could benefit from this situation, gaining competitiveness in the European market. However, Ricardo Santin, president of the International Poultry Council (IPC) and the Brazilian Animal Protein Association (ABPA), warns that the ECC may in future require imported chicken to also follow equivalent standards. This could represent a barrier to access due to the high costs of adaptation.

Brazilian exports: Currently, Brazil can export up to 124,500 tons of salted chicken to the EU within the quota, paying a 15.4% "ad valorem" tax. Exceeding this quota means paying an additional tariff of 1,300 euros per ton. From January to May this year, Brazil exported 87,900 tons of chicken to the EU, down 13.6% on the same period last year. Ukraine increased its share of the European market, while Brazil directed greater volumes to the Gulf and Saudi Arabia.

Brazil's current situation

Currently, Brazil can export up to 124,500 tons of salted chicken to the EU within the quota, paying a 15.4% "ad valorem" tax. Exceeding this quota means paying an additional tariff of 1,300 euros per ton, affecting the competitiveness of the Brazilian product. From January to May this year, Brazil exported 87,900 tons of chicken to the EU, down 13.6% on the same period last year. Meanwhile, Ukraine increased its share of the European market, and Brazil directed greater volumes to the Gulf and Saudi Arabia.

ECC requirements

The new ECC rules include:

• Reducing the maximum stocking density from 39 to 30 kilos per square meter.

• Use of slower-growing breeds.

• A minimum distance of two meters between perches for every thousand birds.

• Slaughter with gas or electric stunning.

• Compliance with animal welfare laws already in force in the EU.

Conclusion

While the ECC presents challenges for the European poultry industry, it can also open up opportunities for exporters like Brazil, provided they manage to remain competitive and meet possible future animal welfare requirements in order to continue accessing the European market.

The environmental and animal welfare impact, as well as the changes in the chicken buying and selling market, will be significant, requiring adaptation and innovation on the part of producers and exporters.