Spain's poultry sector poised for 2027 growth amid consolidation
Spain, the EU's second-largest chicken meat producer, is expected to expand in 2027 due to positive margins, steady domestic demand, and competitive prices, according to a USDA Foreign Agricultural Service report. The sector remains highly concentrated, and consolidation is continuing: MHP agreed to acquire Payán Hermanos, while Plukon agreed to acquire Avimosa. Spain has been free of HPAI since February 2026, but Newcastle Disease outbreaks have led to vaccination programs in affected regions.
Spain is the EU’s second-biggest chicken meat producer, and the USDA Foreign Agricultural Service expects output to rise in 2027. Chicken prices have climbed more quickly than feed costs, helping feeding margins. Domestic demand is steady, and Spanish prices remain competitive with other EU states and outside suppliers.
The sector is dominated by a few firms, and takeovers are continuing. MHP, which has controlled Uvesa since spring 2025, planned in June 2026 to purchase Granada-based Payán Hermanos. Plukon planned in May 2026 to buy Avimosa, a Madrid- and Toledo-based integrated business covering feed output, chick hatching, rearing and processing. Spain has recorded no HPAI since February 2026, but Newcastle Disease outbreaks led to vaccination in affected areas.
Consolidation may affect farmers, workers, and rural communities as larger groups absorb independent poultry businesses. Consumers could benefit from steady supply and competitive prices, though fewer buyers and processors might reduce bargaining power for contract growers and smaller suppliers. Disease-control measures, including vaccination, may add costs or operational changes for producers while helping protect flocks and food availability. The sector’s expansion could support jobs and exports, but its benefits may be unevenly distributed.