Financial expert analyzes: Decline in food purchasing volumes in the first half of 2023 - effects on the economy

Financial expert analyzes: Decline in food purchasing volumes in the first half of 2023 - effects on the economy

According to a report by www.nachrichten.at, the “Report on National Food Supply Security” by Agriculture Minister Norbert Totschnig shows that household food purchases fell by 3.5 percent in the first half of 2023 compared to the previous year. The food supply is still secure, with the level of self-sufficiency for various products being well over 100 percent.

The “Austria Suitable for Grandchildren” movement and representatives of the organic industry, on the other hand, criticize the low organic quota in public procurement on the part of Bundesprocurement GmbH and have written an open letter to Finance Minister Magnus Brunner. They criticize that the current quota of four percent is well below the target of 25 percent since January 2023, even though 28 percent of the areas are farmed organically.

As a financial professional, it is important to analyze the impact of a decline in food purchasing volumes. A decline in purchasing volumes could mean, among other things, that overall demand for food falls, which in turn could affect the sales and profits of companies in the food industry. This can also lead to an oversupply of food and lead to price reductions in the long term.

The criticism of the low organic quota in public procurement is also important. A low organic quota could affect the market for organic products and hinder the growth of the organic industry. In addition, this could have an impact on farmers producing organic products, as higher demand for organic products could increase sales and farmers' income.

It is therefore important that public procurement and food demand are balanced to ensure the long-term health of the food sector and agriculture.