A Year-End Open Letter: Europe’s Primary Food Processors Warn of Rising Competitiveness Pressures

The presidents of Europe’s primary food processing organisations issued a joint year end open letter warning that the sector is moving from temporary economic strain into long term structural pressure. The resilience of primary processing remains essential for Europe’s food security, rural economies, and strategic autonomy.

The letter references research commissioned from Wageningen University showing that raw material processing volumes in the sugar, starch, cocoa, and flour sectors have contracted since 2022 due to rising input costs, weaker consumer demand, and increasing climate related volatility. According to the findings, real turnover across the sector has fallen by nearly 10% since 2021, signalling a significant decline in competitiveness and financial resilience.

Primary food processors convert agricultural commodities into essential food and feed ingredients that support the wider European food chain. Together, the sector processes more than 220 million tonnes of raw materials annually, generates approximately €70 billion in turnover, directly employs more than 120,000 people, and supports over one million farming families across Europe.

The sector faces a combination of structural challenges including rising energy costs, increasing operational expenses, raw material volatility, growing decarbonisation requirements, stronger competition from international producers operating under lower environmental and regulatory standards, and a continued lack of recognition within EU industrial policy frameworks. As a result, primary food processors often face barriers to accessing state aid, transition financing, and accelerated permitting mechanisms.

PFP warns that continued deterioration in competitiveness could result in the loss of EU processing capacity, the relocation of value creation outside Europe, weaker rural economies, greater dependence on imported processed ingredients, and reduced food security and strategic autonomy.

PFP is calling on the European Commission, the European Parliament, and Member States to begin 2026 with a clear commitment to supporting Europe’s primary food processing industry. The organisation stresses that farmers and primary processors are equally essential and interconnected parts of the EU food chain. It also calls for competitiveness proof decarbonisation policies that recognise rurality, seasonality, and thin operating margins while supporting long term resilience.

The organisation further urges policymakers to reduce Europe’s structural energy cost disadvantage, ensure access to affordable clean energy, include primary food processors within strategic industrial initiatives, reduce unnecessary compliance burdens, and create stable long term policy conditions that encourage investment.

PFP emphasises that Europe must urgently close the competitiveness gap with global producers by reducing structural energy disadvantages and accelerating industrial transition infrastructure. The organisation argues that the regulatory framework should enable farmers and processors to continue delivering sustainable, competitive, and affordable food for European citizens.

PFP brings together the European Association of Sugar Manufacturers (CEFS), the European Cocoa Association (ECA), the European Flour Milling Association, the European Starch Industry Association, the European Vegetable Protein Association (EUVEPRO), and the European Vegetable Oil and Proteinmeal Industry (FEDIOL).