The continuing increase in energy costs in the EU, in addition to households and businesses, has also affected the primary sector and especially all types of livestock businesses. More specifically, the above companies in the sector are affected in the areas of electricity costs and heating costs.
In the cost of electricity, the increase in the price of electricity causes a doubling of costs in general industrial costs on farms (livestock, poultry) and businesses (livestock, poultry slaughter equally) of the sector as a whole.
At the same time, with the increase in the cost of fossil fuels, the cost of breeding also increases. As these are organized housing units, which are capital-intensive businesses, they have significant heating needs during the winter months.
Of course, the cost of animal feed is also expected to increase. In addition, the cost of alternative fuels, such as pellets and liquefied petroleum gas, increases, making it a mixture of overall operating cost increases for these businesses that are difficult to manage in the long run.
The problem is that companies in the industry will not be able to absorb the increased operating costs and will necessarily pass it on to the final price of their product, further increasing inflation and reducing the disposable income of citizens.
EU governments will have to tackle this emerging problem by creating an aid grid so that these companies can absorb these increased costs.