Food Industry Under Pressure

CompaniesRetail & Consumer ♦ Published: November 24, 2010; 14:32 ♦ (Vindobona)

Above all, lack of capital and high labor costs are plaguing Austrian food producers.

Food Industry Under Pressure / Picture: ©

The 3,780 domestic commercial enterprises have on average only an equity ratio of 15%. Bakers, confectioners and butchers, however, with a ratio of 2%, are in a very weak position indeed.

Moreover, the very small-scale enterprises are frequently in the red. Half of the costs are attributable to personnel. Wage increases as the recent ones are hardly bearable, they…