Plant Closure in Lower Austria

Vegetable farmers now fear for their livelihoods

The shock over the frozen peas and other products from Groß-Enzersdorf has had a major impact on the region.(Bild: Krone-Collage/AP/ARDO AUSTRIA FROST/FABIAN VOLF, Zwefo)

A bitter shock in the Marchfeld region of Lower Austria: The closure of the frozen food plant in Groß-Enzersdorf, announced by the Belgian Ardo Group, has devastating consequences for hundreds of vegetable farmers. The state of Lower Austria intends to help the affected farmers.

“The production halt that has now been announced is a severe blow to the employees and our farmers,” emphasize Governor Johanna Mikl-Leitner, her deputy Stephan Pernkopf, and Agriculture Minister Norbert Totschnig, expressing their dismay. 

The Ardo frozen vegetable plant—the largest industrial frozen food plant in Austria—produces for brands such as Iglo and the private-label frozen food lines of Billa, Hofer, and Spar. About four percent of the agricultural land in the Marchfeld region is used by farmers who produce on behalf of Ardo Austria Frost through the frozen vegetable producer organization ETG—which includes 500 member farms. 

Chamber of Agriculture Vice President Lorenz Mayr is calling for clarity: “The globally active corporation headquartered in Ardooie, which most recently generated annual revenue of 1.3 billion euros, is now required to lay its cards on the table. After all, our farmers have invested a great deal of passion in this partnership, trusting in it.”

Production “collapses overnight”
For Mayr, therefore, much more is at stake than a single production site. “It is unacceptable that domestic vegetable production, built up over decades, should collapse overnight while, at the same time, more and more vegetables from abroad are shipped into Austria in the future.” But that is exactly what the multinational wants to do—namely, flood the red-white-red market with foreign vegetables instead of valuable domestic peas, spinach, beans, red cabbage, and the like.

Domestic Food Supply Under Pressure
The concerns of farmers—including Paul Nemecek, head of the Lower Austrian Farmers’ Association—extend far beyond the affected farms. “When regional structures disappear, it’s not just investments and value creation that are lost. The domestic food supply also comes under pressure,” says Nemecek.

According to the company, the closure is due to economic reasons: the necessary investments would no longer be worthwhile. Ardo is now expected to quickly disclose what the future holds for the site. A total of 240 people are directly affected there: 190 employees, for whom a social plan is being developed, as well as 50 temporary workers.

Ardo bears responsibility—both toward its employees and toward its agricultural suppliers. The federal and state governments are ready for talks, according to Totschnig and Mikl-Leitner.