Could meat be the next food to face taxes?
Meat could be the next commodity to face levies, as a new report says governments may look at taxing it to balance the books.
The Livestock Levy report looked at whether meat may be the next product on the list for balancing budgets and revenue creation.
Practically every government in the world faces challenges when it comes to balancing their budgets, and an increasingly attractive target for revenue creation is a tax on goods deemed to be unhealthy or damaging to the environment or both, the report says.
For example, over 180 countries now impose a tax on tobacco, 60 jurisdictions tax carbon and at least 25 tax sugar.
Meat taxes are already on the agenda in Denmark, Sweden and Germany, and although no proposals have advanced into actual legislation, long-term investors should take note of the compelling arguments being made, especially in Denmark and Sweden. It was in the Nordics that the first carbon tax was introduced in 1990.
It goes on to say that in the global livestock production sector, sustainability megatrends and changing dietary patterns driven by a growing global middle class are creating enormous challenges.
Population growth has driven up up global meat consumption by over 500pc between 1992 and 20161 and this trajectory is likely to continue in the future, especially in emerging markets. For example, demand for meat produced in Asia alone is predicted to grow a further 19pc in the 12 years to 2025.
However meeting this growing demand has proven a difficult endeavour for the global livestock industry, and in recent years the sectors has been linked with a range of environmental, health and social problems. This includes emerging evidence connecting meat consumption with greenhouse gas emissions that exceed emissions from the transport sector.