After a period of rising prices, some stability seems to have returned to the food sector. However, growth remains stagnant due to structural challenges such as shortages of raw materials, declining exports, and a labor shortage. The demand for labor migrants and the impact of new legislation are further adding to the pressure on the sector.
The Wet toelating terbeschikkingstelling van arbeidskrachten (WTTA) aims to address abuses related to labor migration. Once this legislation comes into effect, companies will only be allowed to hire workers through certified employment agencies. For the food industry, where temporary workers often make up a third of the workforce, this could have significant consequences. Labor migrants play a key role in production, often working in physically demanding and uncomfortable environments. It is crucial for companies to ensure that their employment partners comply with the new requirements.
The appeal of the Netherlands as a workplace for labor migrants is decreasing. Higher wages in countries like Poland mean that more labor migrants are choosing to stay in their home countries. This presents companies with the challenge of keeping their jobs attractive, while an aging workforce puts additional pressure on the available labor pool.
Automation and robotics are becoming increasingly important to address labor shortages. While simple tasks can be automated effectively, handling natural products like meat and vegetables remains a complex challenge. Innovations such as artificial intelligence could provide solutions, particularly for tasks that require high levels of variation. For many companies in the food industry, however, it is a race against time to adapt to these developments.
Source: ABN AMRO