73% of Belgian meat firms can only continue for another six months

Increased costs for energy, among other things, are having a major impact on the meat and meat processing sector in Belgium. The majority of companies fail to pass on the increased costs and are therefore financially at their wits' end. This is according to a joint survey of 59 companies by four interest groups in the Belgian meat sector, FEBEV, BVK, VIP and NVP. 73 per cent of the companies said they could continue to operate for a maximum of six months based on the current situation. Further increases in energy costs in winter and automatic wage indexation at the beginning of 2023 promise to worsen the situation further.

The Belgian meat sector accounts for 3.9 billion in turnover and employs 5,500 workers. The sector is under severe pressure due to increased costs and especially the fact that these costs cannot be passed on.

'Supplier hopping' yields nothing

The biggest cost items at meat companies can be reduced to a top five. 31 per cent of respondents cited energy as the most important cost, followed by the cost of raw materials (28 per cent), such as livestock, ingredients, materials, cleaning agents, water purification products and CO2. Packaging material follows in third place (16%) and fourth is transport, fuel prices and road taxes (14%). According to the interest representatives, it also makes little sense for players in the meat sector to "shop around" for different suppliers. "Goods and services purchased by the companies have gone up in price everywhere so changing suppliers does not yield anything," they sound. Personnel costs close the top five and are cited by 7 per cent of respondents as the most important cost item. Indexing wages by more than 10 per cent in January 2023 is the next cost increase on the meat industry's plate. 

Revenues are not increasing

Against the increased costs, revenues are rising much less sharply. As many as 98 per cent of respondents in the meat sector are unable or only partially able to pass on these costs to the next link in the chain, and this at both B2B and B2C level. The main argument cited is competition within the market.

Vilt.be

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