Downturn in economic climate expected

At the beginning of March, entrepreneurs in the food industry were much more pessimistic about the development of the economic climate than in the first two months of this year. In fact, the only time entrepreneurs were much more pessimistic was at the start of the corona crisis in 2020. This is evident from an analysis of recent CBS business survey data. When measuring the mood among entrepreneurs in the food industry in early March, Russia's invasion of Ukraine was included for the first time. 

The number of food manufacturers anticipating a downturn in the economic climate for their business more than doubled in March this year compared to January and February. In March, 26.5 percent of all business owners were pessimistic, whereas in January and February, 'only' 11.2 and 12.7 percent respectively were not confident about the development of the economic climate. By contrast, more than 15 percent were optimistic about the course the economic climate will take for their business at the beginning of March, while 58.4 percent did not foresee any change for the next three months.

Further price rise expected in food industry

The Ukraine war has further increased the anticipated scarcity of, among other things, raw materials and energy. As a result, at the beginning of March, a large majority of entrepreneurs in the food industry expected further price increases for the next three months (63.4 percent) and 36.6 percent expected prices to remain unchanged. No entrepreneurs were found (0 percent) who expect prices to fall during this period. 

Food industry order position at highest level since start of survey

The order position of the food industry expressed in months of work is at its highest level (2.9 months of work) since January this year, since the start of the survey in early 2001. Only in February 2015 was the order position higher once (3.2 months of work). Nearly 80 percent of food industry entrepreneurs considered their order position at the beginning of March this year to be normal, 6 percent (too) high and over 8 percent (too) small. The order position abroad was considered normal by 67.4 percent of manufacturers, 5.6 percent considered it (too) high and 6.4 percent (too) low.

Nearly 20 percent of manufacturers in the food industry expect staff increases in the next three months

Despite the tight labour market, 19.6 percent of food manufacturers expected to expand their workforce in the next three months. Over 73 percent expected staff numbers to remain stable and 6.9 percent expect staff numbers to drop in the next three months.