The EU food and drink sector – Europe’s largest manufacturing industry – is at a pivotal moment, and in need of a bold, coordinated plan to secure its future. This was the message delivered during FoodDrinkEurope meetings with Agriculture and Food Commissioner Christophe Hansen and the Commissioner responsible for the economy, productivity and simplification Valdis Dombrovskis this week.
As the industry responsible for ensuring Europe’s food supply, sourcing 70% of EU farm output, supporting 4.7 million jobs, and driving rural economies, the food and drink sector plays a vital role in the EU’s social and economic fabric.
However, Europe’s food and drink businesses are increasingly burdened by rising costs, complex regulations, and mounting geopolitical uncertainty. These pressures were highlighted in a recent study from Wageningen University for FoodDrinkEurope. Despite being central to many EU policy areas, the food and drink industry lacks a cohesive support strategy.
“Our sector is at a critical crossroads,” said Dirk Jacobs, Director General of FoodDrinkEurope. “But while other industries such as automotives, chemicals and steel are seeing tailored EU strategies, food and drink manufacturers are still waiting for a plan that reflects our scale and strategic importance.”
FoodDrinkEurope urged the EU to act swiftly to create the right conditions for investment, innovation, and better policy, and encouraged Commissioner Hansen to be the leading advocate for the sector.
“Europe must start championing its 304,000 food and drink manufacturers”, Mr Jacobs said. “Many of our companies remain eager to invest in Europe – in innovation, in supply chains, in people – but they need the recognition, confidence and conditions to compete and grow again. That means simpler rules, smarter incentives, and a policy framework that makes Europe the best place to produce food and drink – not just consume it.”
FoodDrinkEurope said the Commission should streamline food-related regulations, accelerate product approval processes, and adopt a science-based, innovation-friendly approach.
“Innovation is our future – but it must be supported by speed, science, and certainty,” said Mr Jacobs. “If we want the next generation of safe, sustainable, high-quality foods to be made in Europe – not imported – we need a regulatory system that gives innovators the confidence to invest here.”
The organisation also raised alarms about worsening supply chain imbalances, citing the growing power of retail alliances and increasing instances of unfair trading practices such as unjustified de-listings.
“The food chain only works when it is balanced,” Mr Jacobs warned. “The entire food chain suffers when dominance at one end squeezes out sustainability and investment at the other.”
Lastly, FoodDrinkEurope reaffirmed its commitment to working alongside farmers in the green transition, calling on Commissioner Hansen to push for performance-based support through a preserved and future-proofed CAP budget, with stronger incentives for regenerative and climate-smart agriculture.
“We’re ready to work in partnership with the European Commission, other EU Institutions and stakeholders to further develop the ‘food’ part of the Vision for Agriculture and Food,” Mr Jacobs concluded. “Let’s plan it together – and get it right.”
