Economy

German confectionery jobs at risk as energy prices threaten Christmas production

By Anthony Myers contact

- Last updated on GMT

German confectionery manufacturers are known worldwide for their Christmas and Advent products. Pic: ISM
German confectionery manufacturers are known worldwide for their Christmas and Advent products. Pic: ISM

Related tags: BDSI, Confectionery, Chocolate, Economy, Energy

The German Confectionery Industry has issued a stark warning to the federal government that jobs are at risk in many small and medium-sized family businesses due to broken supply chains, skyrocketing energy costs, raw material costs - and raw material availability for future productions.

As it approaches the busiest time of the year with many companies producing traditional specialties for their Christmas and Advent products, Bastian Fassin, Chairman of the Federal Association of the German Confectionery Industry (BDSI), said: "Without quick help from the federal government, we run the risk of these companies and their products disappearing from the German market forever.

"It is therefore right and proper that the federal government wants to curb the exploding energy costs with a price brake. But this must take into account the amount of energy required by the company​."

The BDSI predicts that for 2023, companies expect additional costs for the purchased electricity of at least 750% compared to 2022.

Added to this are the massive cost increases on the raw material markets, for example for sugar (+100%), glucose (+200%), butter (+95%), milk powder (+60%), wheat (+60%) and sunflower oil (+280%).

"Our manufacturers can no longer compensate for the enormous cost increases through savings or by passing them on proportionately in the sales prices​," Fassin said.

He revealed the BDSI has contacted Chancellor Scholz and the Federal Ministers Dr Robert Habeck and Christian Lindner for immediate help on Germany’s energy price cap, and also in following areas:

• Introduction of a uniform EU industrial electricity price

• Abolition of all EU tariffs on imports of food raw materials

• Securing of pre-financing and support in the event of financial difficulties through state guarantees and long-term KfW loans

Due to the explosion in costs, companies are being deprived of the liquidity and earnings that are indispensable for securing jobs and making the necessary investments. Politicians must therefore take all measures to relieve the markets for energy and agricultural commodities and actively reduce costs. We are now hoping for a practical design of the economic defence shield​," Fassin said.

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