Troubling times in Germany, as BDSI reveals extent of country’s confectionery crisis
www.loveenergysavings.com
Emerging news from Germany that businesses in the confectionery sector face the prospect of crippling 750 per cent energy bill rises next year is indeed a particularly disturbing development.
As the nation’s sweets and snacks body has rightly noted, companies now face severe pressure in order to merely survive through until the Christmas period – which is traditionally one of the strongest of the year, but will now be an endurance test for many smaller enterprises.
This was undoubtedly a key factor in the organisers of ISM in delaying the next edition of the event in light of these near unprecedented conditions, which have been worsened by the ongoing war in Ukraine, which has dominated headlines for much of the past six months. Sadly, that major conflict shows no sign of being resolved in a hurry, and indeed with Russia’s decision to annexe Ukraine’s Eastern territory last week, it appears we are in for a long, hard winter.
While the confectionery sector is far from the only industry suffering right now with spiralling energy costs, the timing of this latest crisis could not have been worse, following two pandemic years that have hit many in the sector extremely badly with highly disrupted trading patterns.
There appear few, if any easy solutions to the situation, which has been markedly complicated by world events and wider economic uncertainty, especially in the UK – which saw the pound drop to near record levels against the dollar within the past two weeks, amid the new British government’s experimental fiscal policy that has caused notable disruption to industry. Indeed, were it not for a £65 billion intervention from the Bank of England to stabilise markets, the situation could well have been catastrophic. It’s hardly surprising that business confidence here, as in much of the world right now is decidedly short on confidence.
Neill Barston, editor, Confectionery Production
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