The energy crisis is also affecting the trades in Germany, especially the bakeries. Consumers have to pay higher prices, but businesses suffer even more.
Berlin/Brussels – Bread is currently more expensive than ever before. This is shown by data from the statistical office of the European Union, “Eurostat”. In the period August 2021-August 2022, the price of bread rose by an average of 18 percent, the authority announced on Monday (September 19). In comparison: the year before, the price of bread rose by an average of just three percent.
The largest price increase in Europe is in Hungary, where it rose by 66 percent. Lithuania comes second with 33 percent, followed by Estonia and Slovakia (32 percent each). In Germany, the price of bread rose by 17.5 percent in the period mentioned. According to “Eurostat”, the reason for the price development is the Ukraine war. This affects the global grain market enormously, Russia and the Ukraine are export nations for grain, wheat, corn and various oilseeds.
Bread prices are rising: grain shortages and the energy crisis are throwing bakeries into crisis
The high prices for customers could be much higher: Farmers and bakeries absorb a large part of the price increase during the production process. Their costs do not only affect grain and wheat. Farming requires a lot of water for irrigation and fuel for tractors, both of which are also more expensive than usual.
There are already protests by the bakeries in many places. In Hanover, numerous bakery employees took to the streets at the weekend to draw attention to the abuses and to demonstrate. The slogan “Bread on the alert” was on many signs, as reported by Wirtschaftswoche .
In addition to the grain shortages, the gas shortage in connection with the Ukraine war is also causing the problem. “The increased energy and raw material prices will now drive numerous entrepreneurs to the brink of ruin: forecasts for the coming year predict electricity prices to triple and even fivefold gas prices,” warned the Central Association of the German Bakery Trade. It is about almost 10,000 companies that face an uncertain future.
Bakeries in crisis
Numerous bakeries face an uncertain future. A bakery from North Rhine-Westphalia is now offering “inflation bread”. The master baker explains to our editorial staff how the offer is accepted.
Bakeries in crisis: around 10,000 companies in Germany affected
The association is therefore asking for help from the federal government. “Our operations have faced many challenges over the past few months. The bakery trade is a labour-intensive industry and can only pass on the increased costs to customers to a limited extent due to the competitive situation,” explained Daniel Schneider, General Manager of the Central Association of the German Bakery Trade.
A company from Eutingen near Stuttgart provides an example of the current development in the bakery trade. Master baker Tobias Plaz recently shared a photo on social media showing a list of the costs. “We want to share this information with you so that you understand if we have to adjust the prices for our baked goods,” wrote the baker.
So far, the federal government’s relief packages have particularly affected private households. Companies were often left out. (do)