One of the most effective and feared military tactics is the so-called pincer movement. Here the attacker attacks an enemy position from two sides at the same time, thus forcing him to divide his forces and attention on two fronts. Due to inflation, caused among other things by the war in Ukraine and the ongoing pandemic, the bakeries in the Ebersberg district are facing something very similar: a double increase in the price of food and energy, both of which they consume in large quantities. But where are prices rising particularly sharply? And what impact does that have on customers and bakeries?
Yeast has become 50 percent more expensive
“Edible oils, flour and dairy products have become particularly expensive,” reports Martin Freundl, manager of the bakery of the same name in Ebersberg. This is also confirmed by Magdalena Kreitmaier, who runs several branches in the district. “Butter cost six euros a kilo at the beginning of the year, now we’re already at eight euros and fifty,” she says. Volker Wöhrle, managing director of the Hasi bakery chain, is particularly shocked by the price of yeast, which has risen by 50 percent. And Franz Schwaiger, who runs a hotel café in Glonn, also reports price increases of between ten and thirty percent: “Previously you paid 43 euros for a hundredweight of flour, now it’s 69,” says Schwaiger. However, the range has not yet been affected by any of the bakers.
Volker Wöhrle, Managing Director of the Hasi bakery chain, reports that purchasing costs are up to 50 percent higher.
(Photo: Christian Endt)
The reason for the price increase is the narrowing of the flow of goods and the increase in the price of primary products, as Volker Wöhrle explains. Fertilizer is now five times more expensive than usual, which also makes flour and yeast more expensive. In addition, one notices the complexity and vulnerability of the global supply chains, sometimes also the dependence on Asia, for example when it comes to the delivery of paper or molasses.
Rising wages and the higher minimum wage mean additional costs for the bakeries
At the same time, however, the prices for energy and gas are rising. “You can really see that in the utility bills in our branches,” reports Magdalena Kreitmaier. She is still waiting for an increase in the electricity bill, but it won’t be long. However, she bought the heating oil that is used for the stoves in May when the prices were still reasonable. But this stock is also coming to an end.
The main building of the Kreitmaier bakery on Grafinger Marktplatz. Here, as in the other branches, the ancillary costs have risen sharply.
(Photo: Christian Endt)
Martin Freundl mainly runs gas ovens, but also has a few that run on oil. “I have now bought 40,000 liters of heating oil,” he reports. He feels compelled to purchase more oil furnaces as gas may become unaffordable or simply not available. “So much for more climate protection,” he says. And it’s not like oil is cheap either. Wöhrle’s ovens also run on oil, and he now pays twice as much for their operation.
Martin Freundl (left), Freundl Junior (right) weigh amounts of dough for pretzel corners.
(Photo: Matthias Ferdinand Döring)
Franz Schwaiger is in a slightly better position energetically. He has been running a wood chip system for heating for twelve years and his large oven is electrically operated. This also has the advantage that you can only turn on part of the same, which reduces energy consumption. However, the coming months will not be easy for him.
This is also due to the rising living costs of the employees, which have to be compensated for by higher wages, as well as the new minimum wage of twelve euros. “Despite everything, we have to make sure that our employees are paid fairly,” says Schwaiger. The other bakers also feel this pressure. Martin Freundl describes the situation as follows: “Every day we are confronted with finding new ways not to go under.”
Price increases are inevitable given the current development
The most obvious of these ways is price increases. The Freundl bakery has already completed its third this year, and Martin Freundl is anything but enthusiastic about it: “In 43 years I have never seen anything like it,” he says. At the same time, he had no other choice. Franz Schwaiger compares baking with other crafts. “A plumber also raises his prices when the material costs rise,” says Schwaiger. Just because bread is a staple and people are used to a fixed price doesn’t mean that this reality can be ignored. At the same time, the bakeries are trying to keep the price increases within acceptable limits. Magdalena Kreitmaier believes that this also has an ethical dimension: “You can’t always pass everything on to the customer.” After all, the situation is also difficult for fellow citizens.
Franz Schwaiger from Glonn expects prices at the counter to continue to rise.
(Photo: Christian Endt)
Customers are still largely supporting the price increases. Only Volker Wöhrle has observed a sharp decline in sales over the past few weeks. “Some of our customers only come to us every two days instead of every day,” says the Hasi managing director.
The bakeries would like more support from politicians
It remains to be seen what the situation will look like in autumn and winter. “Our supplier has already announced the next price increase of ten percent for September,” reports Kreitmaier. “I’m at a loss.” However, she hopes that things will get better and sees the state as having an obligation. For example, VAT can be reduced from 19 percent to seven percent for all products.
Volker Wöhrle demands more from politics than mere phrases. “It’s time to find political solutions to these problems,” he says. He has the impression that the war in Ukraine is often put forward by politicians in order not to have to take action. “At the moment we bakers can only react,” says Wöhrle. That’s why he expects the worst for the coming autumn and winter. Both Kreitmaier and Wöhrle also want the federal government to stop speculation with food. “You have to imagine that wheat – a staple food – is traded on the stock exchange!” exclaims Kreitmaier.
Martin Freundl also wishes for relief. But he also points out that the situation in Germany is still relatively relaxed. “The war is of course much worse,” said Freundl. With the restriction of a little luxury one would find one’s way around.
And Franz Schwaiger is also combative. Above all, he would like politicians to be more tough on Russia. “It’s unacceptable for a country to attack its neighbors in such an aggressive manner these days,” said Schwaiger. He is ready to do anything to punish this behavior. Also that the bread tongs of the bakeries in the district will rattle less than usual in the coming weeks and months.