CBL calls for postpone­ment of new levies

Pressure on the food supply chain continues to increase. According to the Centraal Bureau Levensmiddelenhandel (CBL), geopolitical tensions in the Middle East are driving up the cost of energy, raw materials and transportation. The industry association is therefore calling on the Dutch government to refrain from introducing planned tax increases and new levies for the time being.

Costs continue to rise across the supply chain

According to the CBL, higher prices for oil, gas, raw materials and transportation are affecting the entire food supply chain. The impact is being felt by farmers, producers, logistics service providers and supermarkets alike.

Supermarkets are trying to limit the impact by operating more efficiently and reducing costs. However, according to the CBL, margins in the sector have been tight for many years. As a result, there is increasingly less room to absorb rising costs. Although consumers do not always notice the effects immediately, the CBL expects food inflation to reach as much as ten percent next year.

Border regions feel the impact

The industry association also points to developments in border regions. According to the CBL, consumers are increasingly choosing to buy groceries and fuel in Belgium or Germany, where the overall cost of many products is lower.

This is putting pressure on the competitive position of Dutch businesses. According to the CBL, it is also affecting the vitality of villages and urban neighborhoods.

Additional costs continue to mount

At the same time, the supermarket sector says it is investing heavily in sustainability, healthier food, circular solutions and the protein transition. The CBL emphasizes its support for these objectives, while noting that these ambitions also come with additional costs.

On top of this, the organization points to planned measures such as a potential sugar tax, the truck toll, higher energy taxes and increases in the minimum wage. The CBL is therefore calling for restraint when introducing new taxes and levies while economic uncertainty remains high.

Cbl.nl