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23 Sep, 2022 17:00

German producers warn of food shortages – Welt

Manufacturers of both frozen and fresh products say they cannot cope with soaring energy costs
German producers warn of food shortages – Welt

Germany’s frozen and fresh food producers have warned that rising energy prices may soon force them to stop operations, according to Die Welt.

“There are significant supply gaps in the daily food supply for people in Germany. The situation is more than serious,” an open letter from the industry said.

“Companies now fear that production lines will soon come to a standstill and that refrigerated logistics centers for food distribution will be closed. Some are even preparing for possible insolvency.”

The letter was initiated by the German Frozen Food Institute and the Association of German Cold Storage and Logistics Companies, and signed by five other industry groups. It was addressed to Chancellor Olaf Scholz, Federal Minister of Economics Robert Habeck and Federal Minister for Food Cem Ozdemir.

According to the authors of the letter, the financial standing of food producers is deteriorating every day, which could soon result in a wave of bankruptcies in the industry. They warn that government intervention is needed to salvage the situation. In particular, they are calling for financial support for energy-intensive medium-sized producers in the deep-freeze chain.

“The food industry is currently experiencing the worst crisis since the end of the Second World War… It's a minute to twelve. Act now – otherwise the refrigerators and freezers of the German population will soon be empty,” the letter urges.

Germany, along with the broader EU, is facing a sharp rise in energy prices and a record inflation surge amid intensifying anti-Russian sanctions and a policy of abandoning Russian fuel.

The situation could also soon lead to energy rationing and shortages. The frozen food industry is particularly susceptible to energy supply problems, due to its strong reliance on electricity for freezers.

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