Imports of food into Austria are putting pressure on local producers, according to Agrar Markt Austria (AMA).
Austrian food exports increased by 7.2% in the first half of the year compared to the same period last year, totalling 5.3 million tonnes. However, imports shot up by almost twice as much, rising by 13.2% to 5.5 million tonnes.
“The higher share of imports is placing considerable strain on our producers and manufacturers,” said AMA Marketing Managing Director Christina Mutenthaler-Sipek at a press conference.
She pointed to the high costs of energy and raw materials, along with inflation – which has recently settled – as significant challenges for domestic businesses. “Prices are clear to consumers, but the production costs behind them are not,” she explained.
Internationally, Austrian products are still well-regarded for their “naturalness and quality.” “We mainly export to EU countries and our neighbours,” she said. But shipping to more distant regions has become too costly.
“Our leading market is Germany,” Mutenthaler-Sipek continued. In the first half of the year, 38.4% of Austria’s agricultural exports went to Germany, slightly up from 37% the previous year. “Since 2020, we have maintained a positive trade balance with Germany and even managed to improve it in the first half of the year,” she added.
“Germany remains a steadfast partner – our neighbours still have a taste for Austrian foodstuffs,” noted Katharina Koßdorff, Managing Director of the Food Industry Association at the Austrian Federal Economic Chamber (WKÖ). “That’s not something we take for granted, especially given Germany’s current economic struggles.”
“Cheese is still our top export,” Mutenthaler-Sipek said. However, cheese exports fell by 2.7% in the first half of the year, totalling €250 million.
In other markets, the picture was less rosy – in six of Austria’s top ten export destinations, the value of exports dropped in the first half of 2024, despite higher shipment volumes. Only in the Czech Republic did both export value (down 8.9%) and volume (down 3.8%) fall. “We have lost our edge in many of these places,” said Koßdorff. In 2023, Austria fared “quite well” compared to 2022, with export declines seen in only two nations.
“There’s generally a spanner in the works economically – even here in Austria,” said the industry spokeswoman. The sector has now entered its third year of recession. “This is having a knock-on effect on the food industry.” Production of items like iced tea, soft drinks, energy drinks, and pet food slipped by 0.6% in the first half of the year, with values remaining stagnant.
“Labour costs here have risen more sharply than in other countries,” Koßdorff pointed out. The industry, which includes around 200 companies and employs 27,000 people, is calling on the next government to cut non-wage labour costs and ease “overregulation.”
According to WKÖ figures, the food industry generated a production volume of €12 billion in 2023. In the first half of this year, the figure remained flat at €5.2 billion. “Export volumes have gone up slightly – this static result is thanks to strong exports to Germany,” Koßdorff explained. Three-quarters of Austrian food and drink exports go to the EU, with the remaining quarter sent to non-EU countries. “Exports to the EU have increased modestly in value, while those to non-EU countries have seen a sharp decline.”
