New York City’s congestion pricing plan sparks outrage among food distributors, threatening to raise consumer prices and impact food accessibility.
At a Glance
- NYC’s congestion pricing plan set for January 2025 faces opposition from food industry businesses
- Food distributors claim the plan could cost them up to $300,000 annually
- Over 200 businesses join the NYC Food Distribution Alliance seeking exemptions
- Concerns raised about potential impacts on food supply chain and vulnerable populations
- Non-profit organizations like Food Bank for NYC also affected by the new tolls
Food Industry Unites Against Congestion Pricing
As New York City prepares to implement its controversial congestion pricing plan in January 2025, a coalition of over 200 food industry businesses is rallying against the measure. Led by Baldor Specialty Foods, the group is seeking exemptions from the new tolls, arguing that the additional costs could severely impact the city’s food supply chain and ultimately lead to higher prices for consumers.
The coalition, known as the NYC Food Distribution Alliance, includes a diverse range of businesses from food distributors and wholesale markets to food banks and restaurateurs. Notable members such as Chefs’ Warehouse, FreshDirect, and Acme Smoked Fish have joined forces to voice their concerns about the potential consequences of the congestion pricing plan.
With a congestion pricing plan slated to start for Manhattan next month, a coalition of 100+ food distributors, trade associations, wholesale markets, food banks, restaurateurs and small businesses is urging that they be exempt: https://t.co/IugiYoD0Qj#foodretail #foodindustry pic.twitter.com/XkuGCQAiRj
— Progressive Grocer (@pgrocer) December 19, 2024
The financial impact of the congestion pricing plan on food distributors is significant. Some companies are facing annual costs of up to $300,000 in additional tolls.
Seth Gottlieb of Baldor Specialty Foods expressed his concern, stating, “We might be facing a $300,000 or maybe higher annual toll burden.” This substantial increase in operating costs is causing alarm throughout the industry.
“The reality is that 99% of the food served and sold in New York City comes from outside the congestion zone – and it can’t come in by subway or bus,” VP of Marketing at Baldor Margaret Magnarelli recently told the news outlet Progressive Grocer.
“So retailers will experience the impact of congestion pricing directly (on their own trucks) or indirectly (in cascading food pricing). At Baldor, we will aim to absorb as much of this cost as we can to shield our customers, but smaller companies may not have that capability. Additionally, retailers may see distributors requesting delivery times to less expensive night hours. Overall, this will undoubtedly be a challenging adjustment for the whole New York City food distribution system.”
The food industry coalition argues that without exemptions, the increased costs will inevitably be passed on to consumers. This could lead to higher food prices across the city, potentially affecting vulnerable populations disproportionately. The concern extends to non-profit organizations as well. The Food Bank for NYC estimates that the new tolls could cost them $30,000 annually, equivalent to 90,000 meals they could have provided to those in need.
Ian MacGregor, a member of the coalition, expressed his frustration with the additional costs, saying, “It’s a real slap in the face to be told in addition to these costs you’ll pay another $14 for a little truck to cross the 60th St. threshold each time.”
The NYC Food Distribution Alliance is actively lobbying local, state, and national representatives to support their cause.
But will Kathy Hochul and NYC Dems listen?
If recent history is any indicator…probably not.
