- Lowering VAT on foodstuffs has only a short-term effect and does not provide lasting relief.
- The food sector faces challenges from geopolitical tensions, rising raw material costs, supply chain issues, and regulatory pressures.
- Food prices have risen much faster than wages since 2019, reducing consumer purchasing power, which is not expected to recover to 2020 levels until at least 2027.
- The sector’s profitability is declining, and future growth will depend on export competitiveness due to Estonia’s small domestic market.
- EU regulations increase administrative burdens but can offer a competitive edge for adaptable companies; success will depend on efficiency, exports, and risk management.
Source: baltictimes.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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