Food and drink processing cheaper in the Netherlands

12-06-2006 | |

The Netherlands is the best place in Europe to locate food and drink processing plants, according to a cost comparison study by KPMG.

The firm’s “Competitive Alternatives” study is a guide for comparing business costs in North America, Europe and Asia Pacific, based on after-tax cost of start-up and operations over 10 years. The study measures the combined impact of 27 significant business cost components that are most likely to vary by location.

Singapore rated as the cheapest industrialised country for locating food processing businesses, followed by the Netherlands, France, the UK, Canada, Italy, the US, Germany and Japan.

“The study is the most thorough comparison of international business costs ever undertaken by KPMG, and contains valuable information for any company seeking cost advantage in locating their international business operations,” KPMG said in a statement.

Rating European cities individually, Potiers in France comes out on top as the cheapest place to process food, followed by Mulhouse, Brabant Stad (Netherlands), Montpellier (France), Amsterdam (Netherlands), Lincoln,(UK), East Netherlands, Barnsley (UK), Naples (Italy), Leicester (UK), Derby (UK), Livorno (Italy), Florence (Italy), Chemnitz (Germany), and Darmstadt (Germany). The most expensive place worldwide is in Hamamatsu, Japan.

The study used a representative food processing operation to compare locations. The operation is modelled on a small independent food processor, producing medium-value, non-perishable products such as packed, dried, or canned foods or confectionary.

The operation is characterised by moderate facility and other initial investment requirements, a workforce with a relatively high proportion of lesser-skilled employees and moderate energy requirements.