Inflation and the rise in energy and raw material costs threaten to impact the biggest consumption campaign of the entire year, Christmas, at a difficult time for the agri-food chain, which also faces the entry into force next January plastic tax.

Spain is “the only country in the European Union that is going to implement this rate” that will have an impact of 690 million euros on companies in the sector, according to Mauricio García de Quevedo, general director of Fiab, the Federation of Agri-food Industries and Beverages.

A dozen organizations representing the entire agri-food chain have been asking for months to delay the application of the tax, which is included in the Royal Decree on Packaging and Packaging Waste, which begins to be applied in January.

This rate forces companies that use non-reusable plastic to pay 0.45 cents for each kilo of this material.

The food and beverage sector warns that it will have an impact on the entire chain (producer, manufacturers, distributors), as it will mean "increasing costs even more", according to García de Quevedo.

They also believe that the complexity at the time of developing this new tax requires a very detailed regulatory development where all the procedures and paperwork to be followed are explained, but they denounce that the administration has not yet resolved the doubts raised.

Those 690 million euros that companies will have to pay “is an amount that is very relevant for the sector.

For this reason, we believe that asking for its entry into force to be delayed for a year is common sense, ”says the general director of the food employers’ association.

Fiab recalls that the new legislation on sustainability (the Royal Decree and the aforementioned tax) threatens the survival of 2,400 companies and more than 25,000 jobs.

cost problem

García de Quevedo insists that this represents an added cost for the sector at a difficult time in which it is already cutting its margins to avoid having to transfer the increase in costs (energy and raw materials) to the consumer price.

“We have not even asked for the suspension, but to delay it for a year.

It shows a great lack of sensitivity to ask for this measure to be applied in the current context, ”says the manager, who believes that it will not precisely help alleviate the impact of inflation on households.

Yes, it is committed to other measures for this, such as lowering VAT on food or eliminating it in the most basic of the basket.

This Tuesday begins the 37th edition of the Aecoc congress, the employers' association of companies and manufacturers in the consumer goods sector, which includes food, beverages, drugstore and perfumery.

This is the largest event in the sector, where companies from the entire agri-food chain meet and where, as happened last year, the rise in prices and costs will be one of the issues to be discussed, along with the environmental legislation that comes into force force in January.

Last summer, the organizations that represent the agri-food chain, including Aecoc and Fiab, asked the Government to delay this tax.

Christmas campaign

Regarding the price increase, García de Quevedo believes that it will have an impact on the next Christmas campaign.

"Our companies don't like to raise prices, it's a difficult decision because when you do, you take a risk because the consumer often makes decisions based on price," laments the manager.

Remember, in addition, that agri-food companies "are not making money with inflation."

That of food already exceeds 14%, according to the latest CPI data published by the INE.

Despite this, according to the manager, the average price of the shopping basket in Spain "is 5% below the average price in the European Union."

The director general of Fiab is committed to subsidizing some raw materials to curb the inflationary escalation in food and to guarantee that it is produced at a reasonable price.

“Companies must be helped to get through this pothole,” he says.

Yesterday, the organization he leads presented the figures for exports to the main destinations with the most business potential in America, Asia and the East.

In 2021, Spain registered sales of 38,202 million euros, 12.2% more, with a growth of 6.7% in volume.

55% of exports are to EU countries, especially France, Italy and Portugal, while the remaining 45% is to other markets, with significant growth in Japan and China.

Mexico, Saudi Arabia, Morocco and the Philippines.

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  • Asia

  • France

  • Italy

  • Portugal

  • Japan

  • China

  • Mexico

  • Saudi Arabia

  • Morocco

  • America

  • European Union

  • INE