Delivery bottlenecks and rising prices
Consequences of the Ukraine war: is the German confectionery industry on the brink of collapse?
The consequences of the Ukraine war are threatening the existence of the German confectionery industry
© Carmen Jaspersen/ / Picture Alliance
After the corona pandemic, the war in Ukraine is now drastically affecting the confectionery industry. “The load limit has been reached,” says the federal association and asks politicians for help.
Empty supermarket shelves, higher prices – the effects of the Ukraine war can also be felt here in Germany. In addition to other sectors, the German confectionery industry is now sounding the alarm and, by its own admission, sees itself in the most difficult situation since the founding of the Federal Republic.
According to a statement by the Federal Association of the German Confectionery Industry (BDSI) on Monday, energy, agricultural raw materials, packaging and transport had already become much more expensive with the corona pandemic. “The Ukraine war is now exacerbating the situation drastically and to an extent that is threatening to exist.” In the worst case, the impending gas shortage could lead to production being shut down, since gas is the most important energy source for the industry.
“The limit has been reached”
In addition, existing supply chains should no longer function and the market for important raw materials should be empty. There are significant increases in purchase prices and delivery problems for wheat, sunflower oil and nuts, for example. Important ingredients such as milk powder, sugar, eggs and palm oil have also become more expensive. Some companies are worried about their existence. “The load limit has been reached,” according to the BDSI.
“Together with politicians and the food trade, we have to ensure that supermarket shelves don’t remain empty,” says Bastian Fassin, chairman of the BDSI. Politicians must therefore examine measures so that food manufacturers can continue to produce.
BDSI wants to change recipes and suspend the obligation to declare ingredients
The BDSI’s demand for a clear prioritization of food production in the event of energy bottlenecks seems strange: “The companies in the German confectionery industry produce food and are therefore of outstanding importance for supplying the population in Germany, especially in emergency and bottleneck situations. ” The association refers to the Federal Office for Civil Protection, which advises to create a stock of “durable and high-energy products” in emergency situations. According to the BDSI, this explicitly also includes chocolate, biscuits or pretzel sticks.
This requirement has a serious background: “The industry wants to ensure that sufficient food is still available, even if it now contains rapeseed oil instead of sunflower oil,” explains the association. Currently, changes to the recipe could fail due to the necessary packaging reprints, since there are also delivery bottlenecks for packaging materials. Fassin therefore proposes a short-term exemption from the statutory obligation to declare ingredients on product packaging. In this way, individual ingredients that are not available can be exchanged.
source: BDSI