The Belgian food industry post corona

The Belgian food industry also did not escape the corona crisis in 2020. The closure of the catering and food service sectors and the decline in export markets hit the sector hard.

Nutrition is essential

Fevia, the federation of the Belgian food industry, advocates a safe reopening of the catering industry and other closed sectors and wants to support companies in a healthy way out of the crisis.

As a vital sector, the food industry has continued to thrive, thanks to the many food heroes, the resilience and efforts of the food companies themselves, and the appropriate support from the government.

Figures do not tell everything

The economic figures for the Belgian food industry for 2020 show a double picture. Year-on-year, sector sales fell 1.7% to 54.4 billion.

In addition to the decline in turnover, the food companies are faced with higher production costs as a result of the corona crisis due to the massive investment in protective measures, higher absenteeism, the increased cost of raw materials and of transport and logistics. Exports also shifted down a gear. Finally, there are the consequences of Brexit.

Some bright spots

A first ray of hope is the recognition of the food industry as an essential sector and the much needed support measures from the government.

The sector was also able to maintain activity and employment somewhat during the crisis. This is important with a view to the future, because today's investments are the competitiveness, growth and jobs of the future.

The approach to make the sector healthy again

Despite everything, more than a quarter of companies in the food industry are facing serious financial difficulties today. Fevia therefore advocates an adequate approach to keep the sector healthy tomorrow:

• Rolling out the testing and vaccination strategy further and accelerating it if possible is now the top priority.
• At the same time, Fevia argues for a quick and safe reopening of the catering and events sector and for a concrete step-by-step plan with supporting measures, also for affected suppliers.
• Fevia also calls for structural strengthening of the competitiveness of Belgian food companies by further eliminating the wage cost and energy cost handicap. The sector also wants to finally put a stop to border purchases, which almost immediately rose to their old, high level after the reopening of the borders. New taxes or levies that make the products more expensive are absolutely to be avoided for Fevia.
• Investing in digital transformation is also a remedy to keep the sector healthy for the future. Fevia sees a lot of future in this and wants to guide many SMEs.
• Finally, Fevia is also fully committed to circular entrepreneurship and asks the government to ensure a good innovation and investment climate that stimulates companies.

Source: Fevia