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»Existence-threatening« situation: cost increases threaten the confectionery industry

2022-05-18T17:16:10.210Z


According to the Federal Association of the German Confectionery Industry (BDSI), increasing costs for raw materials and delivery problems are hitting numerous companies hard. Around 50,000 people are employed in the industry.


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Reaching for a praline is likely to become even more of a luxury due to rising prices

Photo: Daniel Naupold / dpa

Sharply rising prices and delivery problems: The confectionery industry in Germany, which is characterized by medium-sized companies, is facing major problems.

The Federal Association of the German Confectionery Industry (BDSI) announced that energy, agricultural raw materials, packaging, transport and logistics had become massively more expensive during the pandemic.

The Ukraine war, however, exacerbated the situation drastically.

These burdens “affect companies across the board and more and more often to an extent that threatens their very existence”.

In April, the prices of important confectionery raw materials continued to rise: sunflower oil by 151 percent, butter by 78.4 percent, palm oil by 73.3 percent, wheat by 71.8 percent and skimmed milk powder by 69.6 percent .

According to a BDSI survey, 83 percent of companies report bottlenecks in packaging materials.

Around 72 percent have serious supply problems with raw materials such as wheat, vegetable oils, glucose, eggs and milk powder.

Around 50,000 jobs

In view of these challenges, BDSI chairman and Katjes boss Bastian Fassin called for the federal government to give top priority to strengthening the domestic economy.

"Because only then can jobs and investments in Germany be secured in the long term."

Around 50,000 people are employed in the confectionery industry in Germany.

dam/Reuters

Source: spiegel

All business articles on 2022-05-18

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