Germany’s BDSI confectionery trade group warns of major industry crisis
Germany’s BDSI confectionery trade body has warned the country’s industry is facing a severe combination of major challenges including the ongoing pandemic, rapidly rising energy costs and increased raw ingredients prices, reports Neill Barston.
The association also highlighted that the war in Ukraine is also having a “drastic impact” on agricultural supplies of wheat and other ingredients from the region, placing a significant strain on global economies. In its view, this could create significant shortages of retail ranges should urgent action not be taken.
Furthermore, the BDSI warned that a potential impending gas shortage brought about by Germany considering cutting links with Russia for its energy supplies, could have further major consequences for the industry, including potential production standstills, including for confectionery manufacturing.
In addition, the organisation noted that there have been significant ongoing issues regarding raw materials, with the body noting that ‘supply chains no longer work’ leading to notably inflated prices for agricultural raw materials such a wheat, sunflower oil, sunflower lecithin and nuts. Other ingredients including milk powder, sugar, eggs or palm oil have all recently increased significantly.
Due to price increases for fertilisers and animal feed, other raw materials are also becoming more expensive across the board, placing even further strain on industry.
“We have to work together with politicians and also the food trade for this to ensure that supermarket shelves do not remain empty, which is a risk for many popular confectionery items. Politicians must now take all measures so that food manufacturers are able to continue producing,” said Bastian Fassin, chairman of the BDSI.
The organisation has also called for the sweets and snacks trade to be offered temporary exceptions relating to ingredients declarations and enable the use of alternatives by manufacturers. In addition to the extensive list of challenges, the organisation also highlighted delays in the availability of packaging materials that are also causing a significant issue for the sector.