Jules Favre, president of the Peruvian Poultry Association (APA), pointed out that the poultry sector is in crisis, due to a drop in egg production due to the high cost of inputs. In that sense, it is estimated that this could fall by 5% due to the situation.
“The situation is critical in the poultry sector due to the rise in the cost of corn and soybeans, which in one year have risen more than 100%. This has caused poultry farmers to lose working capital, since the higher costs have not been transferred via price to consumers,” he said in an interview with RPP.
In addition, the president of the APA said that the price offered to consumers is almost the same as what it costs to produce a kilo of eggs, which has meant that “many poultry farmers cannot continue producing, especially the small ones, since who do not have the financial capacity to take loans from the banks”.
LOOK: Chicken sold in markets is not exempt from VAT, says poultry farmers’ union
So, these have had to compulsorily lower their production capacity. Along these lines, Julio Favre pointed out that a 5% drop in egg production is projected.
However, the demand for this food remains, since it is the cheapest protein, so “the demand is constant and tends to rise.”
Regarding a possible increase in egg prices, the president of the APA stated that although supplies continue to rise, “he could not guarantee whether prices would rise or not, since that depends on the market and how much it can withstand.”
On the other hand, Favre pointed out that he would prefer that the Executive not intervene in business issues, since they are temporary issues and it is a matter of the companies themselves regulating themselves. “When we get the state involved, we end up more complicated than before.”
LOOK: Price of chicken and eggs will not drop with VAT exemption, warns poultry farmers’ union
Likewise, he referred to the appointment of Minister Javier Arce in Midagri and said that he was not a person prepared for the position.
“Minister Arce does not have the minimum qualifications to be Minister of Agriculture, he has never set foot in the field in his life. But the Executive has already accustomed us to this type of appointments, especially in our portfolio, which is very sensitive”.
