“The race for the location of the future is on!” – this was the motto under which the Austrian food and beverage industry (food industry) invited people to its 21st annual reception on November 19, 2024. The focus of the evening was research & development, innovation and general conditions for Austria as a location. The keynote speech was given by top AI researcher Univ.-Prof. Dr. Sepp Hochreiter from the University of Linz, Dr. took part in the innovation talk. Henrietta Egerth from the Austrian Research Promotion Agency (FFG) took part. Around 300 top representatives from business and politics as well as partners along the entire food chain met in the festive ambience of the Hofburg Vienna.
Trade association chairman Marihart: Companies urgently need relief
The food industry is one of the top industries in Austria and is the largest employer in Europe. But the challenges are great: the recession is ongoing, bureaucracy is high and the geopolitical environment and the climate crisis are putting food companies under considerable strain. “The system is exhausted and competitiveness is in jeopardy if countermeasures are not taken immediately,” appealed the industry chairman. KR DI Johann Marihart.
The ultimate goal must be to strengthen the competitiveness of the industry. “This can only be achieved if energy becomes affordable again in Austria, non-wage labor costs fall and over-regulation comes to an end,” said Marihart, citing key demands on the future federal government. This is the only way the domestic food industry can assert itself in tough international competition and advance the development of sustainable food production. New taxes, on the other hand, would intensify the competitive situation and endanger Austria as a business location – a possible consequence would be a “tax leakage”, i.e. a tax-related industrial exodus.
AI researcher Hochreiter: Using new technologies for the manufacturing industry
In this tense environment, innovative technologies and artificial intelligence could open up new opportunities for the industry. AI pioneer and top researcher Univ.-Prof. Dr. Sepp Hochreiter from the University of Linz gave exciting insights into the future of artificial intelligence in his keynote. Europe lags behind the USA and Asia in the global race for AI architectures. But Hochreiter also sees internationally competitive research in this country. Opportunities lie primarily in implementing developments together with industry.
Artificial intelligence has the potential to help with the greatest challenges facing humanity, including energy, climate, nutrition, health and mobility, said Hochreiter. After a phase of basic development and scaling, the industrialization of applications has now begun. For areas such as the manufacturing industry or logistics, the AI expert sees the greatest leverage in further increasing productivity and efficiency.
FFG Managing Director Egerth: Further strengthen Austria as a location for innovation
The managing director of the FFG, Dr. Henrietta Egerthpraised the local innovation location. “With research spending of almost 3.4 percent of GDP – or almost 16 billion euros annually – Austria is a good innovation country compared to Europe.” At the same time, Egerth emphasized the need for application-oriented research and development as well as innovation for marketable products, jobs and long-term growth. In order to move forward, more dynamism is needed from the universities and technical colleges into the economy as well as European venture capital.
It is important to “bring more ideas to the ground and develop concrete products and business models from them,” says Egerth. This requires the use of appropriate talent, the courage of companies to take risks and their openness to new business models. Perseverance is also required, says the FFG managing director. Because many new developments only bring success after 10 to 20 years. And last but not least, the development of a sustainable economic system also requires more budget and suitable funding programs – a concern that the FFG pursues as an interface between R&D, innovation and business.
Trade association manager Koßdorff: Relief instead of new taxes for companies
Mag. Katharina KoßdorffManaging Director of the Food Industry Association, emphasized the urgency of reducing the cost pressure on companies. “A noticeable and sustainable reduction in costs for the location is now urgently required. The desired transformation to a sustainable food system can only succeed if our companies have the resources for it,” says Koßdorff. “Many companies are already investing abroad because work and energy cost much more here.” Added to this are the increasing costs for the many new regulations – from sustainability reporting to the supply chain law to the deforestation regulation.
Koßdorff sees her industry in a phase of economic stagnation and is also against a recently proposed sugar tax on drinks for the purpose of budget consolidation. Such a tax could not compensate for the budget deficit and would place an additional burden on the entire agricultural and food industry – from beet farmers to beverage bottlers. She also pointed to the minimal steering effects of such taxes in countries like Great Britain and to voluntary industry initiatives to reduce sugar. “Sustainable steering effects can only be achieved through consistent nutrition education – and this is long overdue,” says Koßdorff. Details about the 9 demands of the food industry to the new federal government can be found here.
Importance of the food industry in Austria
The food industry is one of the largest sectors in Austria. In the interests of consumers, it ensures the supply of safe, high-quality and affordable food every day. The approximately 200 companies with their 27,000 direct employees will generate a production volume of 12 billion euros in 2023. Around 10 billion euros of this are exported to over 180 countries. The trade association supports its members through information, advice and international networking.