Belgian food sector under pressure

The Belgian food industry, an economic cornerstone employing over 100,000 people, is facing significant challenges. Fevia, the federation of Belgian food companies, has raised the alarm: declining production, historically low profit margins, and rising costs threaten the sector’s future. Chairwoman Nathalie Guillaume stresses the urgency: "Our companies must strengthen their competitiveness to accelerate the transition to sustainability and continue fulfilling their role as providers for our society."

Historic drop in margins puts investments on hold

The sector's operational margins have decreased by a third since 2019, reaching a historic low of 2.32% on average. This financial strain has direct consequences for investments and jobs. Forty percent of companies expect profitability to decline even further, which Guillaume warns will impact the entire food supply chain. Meanwhile, fluctuating raw material prices, rising labor costs, and increasing energy tariffs continue to squeeze the sector. As a result, Belgian food companies are losing market share both domestically and internationally.

Need for stable policies to ensure a sustainable future

The industry also faces a complex web of regulations and sustainability demands, which hinder innovation and investment. Many companies, especially SMEs, have paused their strategic plans as a result. Fevia is calling for a stable and coherent regulatory framework to enable companies to keep contributing to health, sustainability, and economic growth.

Collaboration across the food supply chain, including fair trade relationships, is essential, according to Guillaume, to preserve the value of Belgian products. "Belgian food deserves greater recognition. Only by working together can we strengthen our sector and prepare it for a sustainable future."

Fevia.be