BDSI warns of Christmas confectionery sector labour crisis, amid soaring energy costs
Germany’s BDSI confectionery trade body has warned of major sector labour shortages and ‘existential worries’ for the Christmas season, as the industry remains under threat from mounting inflation pressures, writes Neill Barston.
The organisation has said that the situation in the country is so severe that many firms within the country’s sweets and snacks manufacturing sector are struggling to survive amid the ongoing energy crisis – which has led to an unsustainable 400% rise in operating costs.
Furthermore, as previously reported, major hikes in ingredients costs is also continuing to have a major impact on the industry, with sugar up 100%, glucose up 200%), butter (+57%), milk powder (+40%), wheat (+60%) or sunflower oil (+37%), which have all weighed heavily on the industry.
As the BDSI noted, interruptions in supply chains and raw material availability have all had a further impact on the sector, including many companies known for the quality of their festive confectionery.
“The enormous cost burden is becoming more and more of a burden for our companies who are even questioning their existence. It is not only the sharply increased energy and raw material costs, but also location-related burdens that are already above average in Germany for the long-term. This includes labour costs, taxes and bureaucracy, and ever-worsening labor shortages,” explains Dr. Carsten Bernoth, General Manager of the Federal Association of the German Confectionery Industry e.V. (BDSI).
“Our manufacturers can no longer sustain these significant cost increases Compensate for savings or a proportionate pass-on in the sales prices.”
The BDSI added that the Federal government should continue to take action to resolve the situation and examine what EU legal powers can be done to assist industry.
According to the organisation, the procurement of raw materials, combined with ‘massive commodity price increases’ was having a major detrimental effect on the sector.
Bernoth added: “Politicians must continue to examine and take all measures to protect companies permanently and to actively reduce costs. This also includes all existing and planned legislative projects being seriously examined. The moratorium on (industry) stress announced by the federal government must be designed effectively and must not become a paper tiger.