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Food sector is Belgium's largest industry

13:45 25/04/2014

The food industry in Belgium grew last year by 1.5% to a value of more than €48 billion, according to the latest annual report from the industry federation Fevia. Taken together with a shrinkage of 3.3% across the industry in 2013, this means the food sector is now the country’s largest sector, accounting for 27% of all industrial enterprises.

“In recent years we’ve been the largest in a number of areas,” said Fevia director-general Chris Moris. “Now we also lead on added value, ahead of the chemicals sector.”

One area where Belgium dominates is in the production of deep-freeze products, including potatoes and vegetables. The dairy industry is the fastest-growing within the sector.

The food industry has grown by 50% over the last decade. Fevia chair Bernard Deryckere placed the watershed moment during the dioxin crisis of 1999, when it was revealed that the toxic substance had entered the food chain though contaminated animal feed. Since then, Deryckere said, the food industry has invested in quality and innovation, helping it attain a leading position.

Also in 2013, jobs in the industry grew by 0.5%, compared to a reduction of nearly 3% in the industrial sector overall. The food sector now employs 88,747 people directly, with indirect employment – transport and retail, for example – at 138,000.

Investment, however, dropped by 10%. The food industry is facing the same problems as other industries, Deryckere said: problems of profitability and a salary cost handicap compared with neighbouring countries. Fevia estimates those costs to be about 21% of total costs – higher for the food industry than for any other industry.

 

photo: Ingimage

 

Written by Alan Hope