Cost pressure rises in the food industry

The plans of the new cabinet directly affect the food chain. According to the CPB, increased levies will translate into higher retail prices. Producers are seeing their costs rise due to new taxes. This increases pressure on margins as well as household purchasing power.

Sugar tax adds to the burden

The coalition agreement includes a sugar tax on food products containing more than 6 percent sugar. From 2030 onward, this measure is expected to generate a net €850 million. The CPB attributes this revenue entirely to higher costs for businesses. Including VAT effects and implementation costs, the total approaches €1 billion, RaboResearch calculated.

Producers already pay approximately €700 million per year in excise tax on non-alcoholic beverages. If the sugar tax is introduced, the cumulative burden will rise to at least €1.5 billion. According to the sector, this puts the competitive position of Dutch manufacturers under pressure, without demonstrable additional health benefits.

FNLI argues that a sugar tax is only defensible if it delivers measurable health impact. That requires clear objectives and ongoing monitoring. Revenue should also be earmarked for prevention and lifestyle interventions. A generic measure is expected to be insufficiently effective. Targeted incentives for product improvement and innovation would have greater impact. If the measure works as intended, revenues will gradually decline.

Packaging levy and rising costs

In addition to the sugar tax, a circular plastics levy is also under consideration. One option is an additional charge per package. Exploratory analyses mention an amount of 4 to 5 euro cents per consumer package. According to the sector, this would be ineffective, as packaging is already covered under extended producer responsibility. The additional levy would increase prices and distort the level playing field, particularly in border regions.

Other measures further intensify cost pressure. The cap on the Drinking Water Tax will be abolished in 2027. This will significantly affect food producers. While electricity taxes are set to decrease, gas taxes will increase. Due to grid congestion, many companies are unable to switch from gas to electricity. Higher network tariffs are also feeding through into the cost base.

FNLI Director Cees-Jan Adema states: “Wij willen samen met het nieuwe kabinet stappen zetten die werken in de praktijk: maatregelen met onderbouwde effectiviteit en goede uitvoerbaarheid en die tegelijkertijd de betaalbaarheid van boodschappen en het concurrerend vermogen van de Nederlandse voedingsmiddelenindustrie bewaken.”

Fnli.nl