The debate about a meat tax keeps resurfacing in The Hague. The government is considering a levy on meat, intended to better incorporate the costs of environmental and animal welfare issues into the price. Recently, via a Woo (formerly Wob) request, documents were made public in which we can read how far these plans have already been worked out. The ambitions are great, but practice demands more realism.
The Ministry of Agriculture is talking about a "sustainability levy" on meat. That sounds noble: the polluter pays, and the proceeds would flow back to farmers who want to become more sustainable. But the papers show that the policy is still full of loose ends. Who exactly should pay the levy? What happens to meat from abroad? And how do we ensure that the money actually reaches farmers and does not disappear into an anonymous pot?
The government seems to want to levy the tax on the consumer side - i.e. at the checkout - while the backstop is meant for the producer. But what if the farmer produces for export, and the consumer eats meat that comes from Germany or Brazil? Then the logic quickly falls apart.
Another issue is affordability. People with smaller wallets spend a larger share of their income on food. So they are hit relatively harder. The government is considering compensation, but experience shows that such schemes are rarely simple and often do not reach everyone.
Small and medium-sized enterprises in the meat sector in particular - regional slaughterhouses, processors, artisanal butchers - feel the effects of such a measure most quickly. Larger players can swerve to foreign suppliers, bundle products or play with margins. SMEs lack that space. Even worse, it remains to be seen whether they will benefit from the so-called backstop of the levy.
SMEs barely feature in the Woo documents. While precisely these companies are important for local food security, craftsmanship and sustainable production in the region. The competitive position comes under extra pressure in border regions. What do you do when your customer just goes and gets his meat across the border?
If a meat tax does come about, there should be something in return. Fair access to investment funds. Support for sustainability. And clear agreements on competition and chain cooperation, so that small companies are not run over.
The Dutch meat sector is not standing still. Farmers, slaughterers and processors have been working for years on better animal welfare standards, cleaner stables and shorter chains. But this can only succeed if the government works together, rather than sprinkling policy over the chain from the drawing board.
The meat tax does not reflect the reality of the industry. It is unfair and unworkable. It is a nice playing field only for the Inland Revenue.
