Head of the Lieken bakery: "Bread has to be more expensive"
Created: 07/18/2022, 11:34 am
By: Lisa Mayerhofer
Lieken Urkorn is a brand of Lieken Brot- und Backwaren GmbH.
© Manfred Segerer/imago
The consequences of the Ukraine war are affecting the bakeries in Germany.
"Bread is and must be more expensive," says Christian Hörger, head of the German bakery Lieken, in a podcast.
Wittenberg – Germany is the land of bakers and bread lovers.
But the consequences of the Ukraine war are affecting the industry in this country, reports Christian Hörger, head of the German bakery Lieken in the
Capital
podcast “The hour zero” .
He expects consumer bread prices to continue to rise.
Consequences of the Ukraine war: flour up to 70 percent more expensive
In addition, bakers are increasingly feeling the reluctance of consumers in view of the inflation rates, in addition to the sharp rise in raw material and energy prices.
"We notice that the money isn't that easy anymore," says the general manager of the Central Association of German Bakers, Daniel Schneider.
"Consumers are currently holding back, especially when it comes to small luxuries such as cakes."
Flour has become up to 70 percent more expensive in some cases, reports Schneider.
Overall, production costs have risen by up to 30 percent on average compared to the time before the Russian war of aggression in Ukraine.
Lieken boss Hörger also reports something similar in the
Capital
podcast: “We will spend well over 150 million euros on flour” – that is more than twice as much as in a normal year.
In addition, there would be – with a time lag – higher energy and personnel costs.
Lieken-Chef: Price increase for bread between "ten and 20 percent" possible
Because the gas crisis is also affecting bakers: It is estimated that more than half of the ovens in bakeries are operated with gas.
"Switching to electricity means considerable additional costs, but could keep the system running in the event of a gas shortage," says Schneider.
In view of the situation, Hörger agrees with consumers on higher prices.
"Bread is and must be more expensive," says the Lieken boss in the
Capital
podcast.
He expects a price increase of between “ten and 20 percent” compared to today.
Lieken is one of the largest German bakery groups and supplies supermarkets with the brands Golden Toast and Lieken Urkorn, among others.
The wholesaler is also a supplier to the McDonald's fast-food chain.
(lma/dpa)
