LTO: meat tax does not contribute to sustainability

A meat tax does not contribute to further sustainability of the livestock sector and a fair income for farm families, according to LTO Nederland in response to the proposal of the True Animal Protein Price Coalition (TAPP Coalition) of early November 2019.

The levy proposed by the TAPP Coalition should lead to a 30% higher meat price by 2030. "The meat tax will put the sustainability of the Dutch livestock sector on a dead end. A great deal of the so-called compensation would be coming out of your own pocket. How good the intentions are: this plan is unrealistic and not in the interest of the farmer, nor of society," says Marc Calon, chairman of LTO Nederland.

Increasing sustainability

In the European market economy, quality and sustainability stem from the commitment of the entire chain, from primary producer to processor and retailer. This is not an easy process, because consumers still too often choose the cheapest piece of meat. A meat tax is therefore no solution in this case.

LTO also questions the proposed compensation for farmers. TAPP Coalition proposes to compensate the loss of income by paying for services such as animal welfare and climate measures. With this proposal, the TAPP Coalition seems to assume that animal welfare is not the standard in livestock farming. This assumption can therefore never be the starting point of a plan that LTO can support.

Economic feasibility

LTO Nederland: "The proposal to allow the Dutch government to intervene in prices that are set by market forces, both nationally and internationally, is not economically credible. A levy distorts the Dutch market, a market in which, thanks to its quality and sustainability, the Dutch livestock sector is in a good position, but in which international competition is only increasing. The proposal can therefore only lead to a deterioration in the market position of our farmers. That is highly undesirable."

LTO Nederland opposed an increase in VAT on potatoes, fruit and vegetables. However, the TAPP Coalition proposes that a reduction should be paid for by the meat eater. LTO Nederland does not support this.