AVEC warns of significant impacts on European poultry producers

The European poultry industry is expressing serious concerns over the recently approved trade agreement between the European Union and Mercosur countries, comprising Brazil, Argentina, Paraguay, and Uruguay. The Association of Poultry Processors and Poultry Trade in the EU (AVEC) has voiced strong opposition to the deal, which now awaits approval from the European Parliament.

Background on the Agreement

The EU-Mercosur trade agreement, which was passed by EU member states last week, aims to facilitate trade between the two regions. However, it has sparked controversy within the European poultry sector due to the potential increase in poultry imports from Mercosur countries. Currently, more than 25% of poultry breast meat consumed in the EU is imported from non-EU countries. The new agreement proposes a quota of 180,000 tonnes of poultry imports, which would account for 9% of total EU poultry consumption.

Market Implications

AVEC warns that the increased imports could place unsustainable pressure on European poultry producers. These producers are already operating under stringent standards concerning food safety, animal welfare, environmental protection, and social regulations. The influx of cheaper poultry products from Mercosur countries could undermine the competitiveness of EU producers, potentially leading to market distortions and financial strain within the industry.

Industry Response

In response to the agreement, AVEC has called on members of the European Parliament to reject the deal, citing the cumulative impact of existing and future trade agreements on the European poultry sector. The organisation has expressed its deep disappointment with the member states' decision to approve the agreement, highlighting the potential long-term consequences for the industry.

The future of the EU-Mercosur trade agreement remains uncertain as it awaits further scrutiny and approval from the European Parliament. The outcome will be closely watched by stakeholders within the European poultry industry, who are advocating for measures to protect domestic producers.

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