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NEKOVRI publishes statement on 2022 price indexation and estimate for 2023

Yesterday, NEKOVRI published a new communication regarding the cost price evolution in the Dutch refrigeration industry for the year 2022, as well as the outlook for 2023.

 
It announces a price indexation of 26.15% for 2022 and 17.09% for 2023.
 

Dutch coldstore sector anticipate a price indexation of 12.6% for 2022 and 10.10% for 2023

 Read NEKOVRI's news flash : The "Price index calculation 2022-2023" is known. The actual cost change 2022 compared to 2021 has come out at 12.6%. The estimated index for 2023 indicates an increase of 10.10%.

Press release regarding cost increase 2022

It is common knowledge that costs for Belgian refrigeration and freezing companies, for handling, storing and freezing goods have increased enormously in 2022. This increase is due to the huge increase in electricity tariffs and raw materials used in logistics, e.g. cardboard, plastic packaging materials and pallets.

Since energy prices shot through the roof last year, the BVBVK immediately anticipated this situation by introducing an "energy price surcharge" from the month of February. The purpose of this surcharge was to objectively and transparently justify the increase in cost price due to the spectacular rise in electricity prices.

Within a month and a half, 2022 will be over and therefore the BVBVK Board of Directors considers it opportune to issue a report on the cost increases faced by companies in the refrigeration and freezing sector over the past 10 months.

Attached to this message you will find two press releases regarding these cost increases, t.m.:

1) A notice regarding the cost increase for the companies that applied the energy surcharge in the past period.

2) A notice regarding the cost increase for companies that did not apply the energy surcharge in the previous period.

The BVBK Board

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Portable Document Format (PDF) PERSBERICHT (incl energie).pdf (pdf, 204 KB)

Portable Document Format (PDF) PERSBERICHT (excl energie).pdf (pdf, 229 KB)

BVBVK/UPBIF Energy supplement Oktober 2022

Below you can find the energy surcharge that has come into effect from today, i.e. the monthly surcharge.

Portable Document Format (PDF) BVBVK energieprijstoeslag oktober 2022.pdf (pdf, 164 KB)

Cold store indispensable for storage of agricultural products.

A Dutch cold store now pays almost half a million euros a month to keep onions and chicory cool. According to Johan de Groene of Green AGRI, energy costs for his business have risen dramatically. "We used to pay about 75,000 euros a month and we are now going over 400,000 euros," he said. At this cold store, farmers can store their produce, such as onions, winter carrots, chicory roots and celeriac for a certain period of time.

 
Read more here

NEKOVRI - Intervention for refrigeration and freezing industry comes too slowly.

Besides households, businesses from small to large have also been hit hard by sharply rising energy costs. The Dutch government has completed its inventory of options for targeted support to SMEs, which cannot escape high energy consumption.

 
NEKOVRI, the sector organisation of the Dutch cooling and freezing industry, regrets that the sector has to wait so long for the exact details of the "November package" and the "TEK scheme". There are still many questions and a lot is unclear, such as who can claim the schemes. Where before there was talk of energy-intensive companies it is now about energy-intensive SMEs. NEKOVRI is happy that support is coming but in addition to this compensation, Nekovri will continue to plead for a structural solution and compensation in parallel with the implementation of this package and scheme.
 

BVBVK/UPBIF Energy supplement September 2022

Below you can find the energy surcharge that has come into effect from today, i.e. the monthly and quarterly surcharge.
 

Dutch cold stores association poll its members regarding new measure to cover energy costs

Due to high power prices, energy suppliers charge cold stores high deposits in fruits and vegetables. High refrigeration costs are going to hit sales.

 
The umbrella organisation for cold stores and freezers Nekovri is polling its members on how energy companies are making demands for advance deposits of millions of euros for increased energy contracts. 
 
 
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Refrigeration and freezing sector is in a chokehold.

"You can't just turn off a cold store. The sector is in a chokehold, structural measures are needed." 

The situation in Belgium is the same as in the Netherlands. The government knows, but is burying its head in the sand.  
 
The food supply will be compromised, but no one pays attention. 
 
What can be done to prevent worse ? 
 

Energy crisis is a hurricane for refrigeration - freezing sector

Le secteur de l'entreposage frigorifique tombe d'une crise à l'autre. Il y a deux ans, la pandémie de corona a causé des problèmes majeurs lorsque les chaînes logistiques ont été perturbées, mais ce n'était rien comparé à la hausse vertigineuse des tarifs de l'énergie à laquelle le secteur doit désormais faire face. "Par rapport aux tempêtes précédentes, cette crise est un ouragan, voire pire", a déclaré Davey Gerlings, PDG de l'association industrielle Nekrovi.

Read more : https://www.foodbusiness.nl/bedrijven/artikel/10900609/energiecrisis-is-een-orkaan-voor-voedselketens

A BVBVK member helps cold stores save energy

In connection with ever-higher energy prices, it is clear that SMEs in the refrigeration/freezer sector are being held in a stranglehold. As an entrepreneur, you can do everything you can to save money, but the products must still be brought in or out through a door. It is precisely these opening times that are responsible for energy losses and, of course, the associated costs.

An OPEN & UNPROOFED DOOR costs MONEY, lots of money.

How can you get a grip on your costs and still be logistically active to the maximum? 

Read more about this theme in : Portable Document Format (PDF) A BVBVK member helps cold stores save energy.pdf (pdf, 1.68 MB)

Electricity prices for cold stores jump through the roof

Rob van Opzeeland, Kivits Logistics Group: "The energy market really needs to be addressed before major tragedies occur".

Rob does the math. "On 1 January 2021 - not so long ago - electricity cost 50 euros per megawatt. Exactly one year ago, the price of electricity had doubled to EUR 101. Last week the price peaked at EUR 693 per MW, today we are back at a level of EUR 359. All in all during the peak the price was 14 times higher than a year earlier and now we are at a sevenfold increase in the price compared to 1 January 2021."

Read more: Stroomprijs koel- en vrieshuizen door het dak (agf.nl)

Soaring energy prices - politicians do not feel the urgency.

This evening our Dutch colleagues published an update on the situation at the cold stores in their country. 

See  the link to the article (see: Nekovri nieuwsbrief 25 - 5 september 2022 ) so you can read it too.
 
Conclusion: the situation is just as dramatic as in Belgium but the policy reacts in the same way as in Belgium: o.c. "Until now, however, the urgency is not sufficiently felt in the Netherlands, the message cannot come as a surprise to politicians, as is currently being argued."             
 
The representatives of UNIZO and UCM participating in the talks with our government(s) were informed of this situation by the BVBVK secretariat.-------

Pass on increased energy costs, otherwise you will soon be out of business.

Extreme electricity costs force Dutch cold-storage warehouses (major consumers of energy) to higher prices.

 

Refrigeration and freezing companies: "New energy surcharge makes food (even) more expensive."

 Read more: Portable Document Format (PDF) Nieuwe energietoeslag maakt voeding (nog) duurder - De Standaard - 31 08 2022.pdf (pdf, 1.54 MB)

Nekovri (Dutch Association of Refrigeration and Freezing Plants) calls on members to pass on energy price increases.

Food is in danger of becoming much more expensive as its storage costs soar. The price of electricity is now seven times higher than the average in 2017-2021. 

 
Prices of frozen food will rise by 30% to 50%.
 

The BVBVK starts with energy surcharge

Since energy prices shot through the roof last year, the BVBVK has introduced the "energy price surcharge".

This is a calculation based on objective data, namely the Belpex prices that are published daily on the Elexys website, in order to be able to communicate transparently to customers on a monthly or quarterly basis. When average energy prices rise, a surcharge is received; when average energy prices fall, this obviously works the other way round. It is therefore comparable to the diesel surcharge.

Read more : Portable Document Format (PDF) BVBVK-UPBIF energy supplement February 2022.pdf (pdf, 153 KB)

 

 

PRESS RELEASE _ FROZEN FOOD STORAGE SECTOR SUFFERS FROM RISING ELECTRICITY PRICES - 26 08 2022

 Please find below the press release about the impact of the continuously and unpredictably rising energy prices on the Belgian Refrigeration and Freezing sector.

Portable Document Format (PDF) PRESS RELEASE _ FROZEN FOOD STORAGE SECTOR SUFFERS FROM RISING ELECTRICITY PRICES - 26 08 2022.pdf (pdf, 93 KB)

BVBVK/UPBIF - Look behind the scenes

A federation for the cold storage industry is of paramount importance: it's a body of information that acts as interlocutor and spokesperson in collective sensitive issues affecting the future of your industry and your business.

L'Union Belge d'Entrepôts Frigorifiques is not only a central contact point: now, you receive a lot of information without looking it up yourself. In discussions with policy makers on the environmental costs and  food policy , you will find in the Belgian Cold Storage Association a staunch supporter of our industry. Got questions? L'Union Belge d'Entrepôts Frigorifiques (BVBVK/UPBIF) makes every effort to respond to you directly or via its extensive network.

Energy crisis is a hurricane for refrigeration - freezing sector

Le secteur de l'entreposage frigorifique tombe d'une crise à l'autre. Il y a deux ans, la pandémie de corona a causé des problèmes majeurs lorsque les chaînes logistiques ont été perturbées, mais ce n'était rien comparé à la hausse vertigineuse des tarifs de l'énergie à laquelle le secteur doit désormais faire face. "Par rapport aux tempêtes précédentes, cette crise est un ouragan, voire pire", a déclaré Davey Gerlings, PDG de l'association industrielle Nekrovi.

Read more : https://www.foodbusiness.nl/bedrijven/artikel/10900609/energiecrisis-is-een-orkaan-voor-voedselketens