Three out of 10 food companies in Belgium are considering reducing or even shutting down their production, according to the professional association Fevia. With extreme price spikes and supply issues, it is their only way out of producing at a loss.
“It is clear that the price spiral we have entered is not just ‘a bit more expensive’,” a Fevia spokesperson said. “Every day this looks more like the crisis of the 1970s.”
With high energy bills, rampant food inflation and shortages in supermarkets, food companies are facing skyrocketing costs. On top of that, the pandemic has had a harsh impact on the sector, while harvests have been poor due to unpredictable weather and the bird flu has had an impact on production, too.
While Belgium mostly imports its grains from France rather than Ukraine, if supply continues to shrink significantly, scarcity will drive up the prices everywhere. “Suddenly many countries are asking for a share of the grain harvest in France, but our industrial bakeries have been loyal customers there for years.”