"Fear of Competition"

Frozen Food Company’s Bankruptcy Sparks Massive Backlash

“No one needs Belgian vegetables when the best farmers are right on our doorstep”—this is one of the messages being used in protests against the closure of the Ardo plant.(Bild: Krone-Collage/FABIAN VOLF, Attila Molnar)

Fearing competition, the Belgian frozen food company has decided to shut down the plant in Groß-Enzersdorf rather than sell it. But politicians and business leaders refuse to give up and are determined to “create opportunities for everyone from farmers to consumers.” A shaky Plan B is emerging from Eferding in Upper Austria.

It’s a stab right to the heart of local vegetable production: The Belgian company is shutting down the country’s largest frozen food plant. Next summer, the lights will go out, and around 240 people will lose their jobs. For the 500 farming suppliers, a significant portion of their business foundation will be lost.

A loss of five million euros per year cited as the reason
The corporation’s justification— as reported —is brutal: The facility is structurally unprofitable, and even public subsidies couldn’t change that. Since 2023, the plant has been posting an average loss of five million euros per year. Continuing operations would require investments of 112 million euros. Even a scaled-back version producing only spinach would cost 66 million euros.

“They simply want to supply the market with Belgian vegetables”
That’s the company’s perspective. But the closure without a replacement raises questions. First and foremost: Why isn’t the plant, along with its expensive machinery, simply sold? Ardo dismisses the idea—no new owner could turn the site into a profitable operation. Politicians suspect a different motive: “They don’t want to create competition for themselves; they simply want to supply the Austrian market from Belgium with Belgian vegetables in the future.” The federal and state governments have repeatedly tried to persuade the company to stay. The frozen-food giant remained stone-cold.

On Monday, a town hall meeting organized by Markus Wieser, head of the Chamber of Labor, took place at the still-operating Ardo plant, reflecting the workers’ despair and anger over the agricultural multinational’s cold-hearted approach.(Bild: AK)

But this move could backfire on the Belgians. ÖVP Minister of Economic Affairs Wolfgang Hattmannsdorfer wants to work toward a “competitive location”—and apparently won’t let the vegetable producer spoil his plans. Agriculture Minister Norbert Totschnig (ÖVP) was even more specific on Monday on the sidelines of a meeting of EU environment ministers in Luxembourg: he wants to “create a vision”—for “everyone from farmers to consumers.”

The trail leads to Austria
On the one hand, if not the plant itself, then at least the production capacity could be taken over—possibly by several domestic companies. “Discussions are underway with a wide variety of stakeholders,” explains Totschnig. One lead points to Upper Austria. The vegetable processor efko, based in Eferding, could set up a new production facility in Austria in collaboration with the family-run business Schneider’s Gemüseland and the producer organization Tiefkühlgemüse (ETG).

efko is still keeping its cards close to its chest: “Whether and in what form efko will participate in a possible solution for frozen food processing is currently open,” says Managing Director Thomas Krahofer. The goal is for vegetables and fruit to continue to be grown, processed, and purchased in Austria in the future.

The alternative: a new company sets up operations. There is certainly enough land available for this in the vast Weinviertel region. However, with the closure scheduled for next summer, there isn’t enough time to get such a project off the ground in time. There is also unease among customers. Among others, Ardo supplies Iglo as well as the private-label frozen food brands of Billa, Hofer, and Spar from its Groß-Enzersdorf facility.

Iglo and Retailers Search for a Replacement
According to its own statements, Iglo is therefore already “actively seeking ways” to “maintain the processing of Marchfeld vegetables in the region as much as possible.” On Monday, the company stated: “Initial discussions have already taken place.” Rewe, Billa’s parent company, reassures customers that the supply of local frozen vegetables is secure. “At the same time, we are exploring new opportunities for collaboration with alternative suppliers from Austria to ensure a reliable and high-quality supply in the long term.”

Mikl-Leitner Calls for Swift “Solidarity”
Strong words come from Governor Johanna Mikl-Leitner (ÖVP): “What Ardo is doing is almost unparalleled in its recklessness. They are endangering jobs, the livelihoods of our farmers, and putting domestic food production and regional supply at risk. We will do everything we can to find a solution. It won’t be easy, but we won’t let anyone down.” She is calling for a “national show of solidarity”—for greater independence and sustainable food production.

Support is coming from the Chamber of Labor. On Monday, President Markus Wieser sought to speak with the workforce—amidst machines, vegetables, and the bitter certainty that this will all soon come to an end. “You are the ones who, with your hands and expertise, refine the high-quality vegetables grown by the Marchland farmers. Ardo couldn’t care less about all these skills; it’s shutting down and wants to flood Austria with its own products, produced abroad,” Wieser thundered.

Even before the pandemic, he had called for key sectors of critical infrastructure to remain in Austrian hands. His warning: “Public services, industry, and food supplies must not become dependent on foreign companies.”