Significant 10 percent decline in food industry revenue

The Dutch food industry saw its revenue drop by nearly 10 percent in the first quarter of 2024. March was the most notable month, with a revenue decrease of 11.9 percent. January (-9.6 percent) and February (-7.4 percent) also experienced significant declines. Falling sales prices in the food industry played a major role in this downturn. Overall, food sales prices decreased by 1 percent in the first quarter compared to the same period last year.

Export hit harder than domestic market

The revenue decline in the food industry was evident in both domestic and international markets, but exports were hit the hardest. International revenue fell by 11 percent, while domestic revenue dropped by 8.2 percent compared to the first quarter of last year. January and February saw a significantly larger drop in exports than in domestic sales. However, in March, this difference was minimal, with exports decreasing by 11.8 percent and domestic revenue falling by 12.1 percent.

Prices of edible oils and fats under pressure

Sales prices in the food industry fell by 1 percent in the first quarter. The biggest price drops were seen in the edible oils and fats industry (-13.1 percent), the animal feed industry (-12.7 percent), and the flour industry (-4.5 percent). Smaller price declines occurred in the dairy industry (-2.9 percent) and the slaughterhouses and meat products industry (-2.6 percent). The only sectors with positive price developments were the fish processing industry (+1.1 percent) and the vegetable and fruit processing industry (+5.8 percent).

Slight increase in number of companies

Despite the revenue decline, the number of companies in the food industry slightly increased, from 7,845 at the beginning of the first quarter to 7,870 at the end of it. The number of large companies grew by 2.2 percent, while the number of medium-sized companies decreased by 2.9 percent. The most growth was seen in the edible oils and fats industry (+8.3 percent) and the slaughterhouses and meat products industry (+1.8 percent). Conversely, the flour industry experienced the largest decrease in the number of companies (-4.3 percent).

Few bankruptcies in the sector

Despite falling revenues and sales prices, only four companies in the food industry went bankrupt in the first quarter. This is a small number compared to the total industry, which saw 74 bankruptcies in the same period. This indicates a relatively stable sector despite financial headwinds.