The food industry earns less and less
The food industry earns less and less
The German food industry achieved an industry turnover of 2011 billion euros in the first half of 81. This would correspond to an increase of 10 percent compared to the same period of the previous year, according to the economic report of the Federal Association of the German Food Industry (BVE). The world market prices for agricultural raw materials also fell slightly in July due to the improved supply situation, but were still around 50 percent above the previous year's level.
"The production of biofuels also boosts demand considerably," says Klaus-Jürgen Gern, expert on raw material markets at the Kiel Institute for the World Economy (IFW) in an interview with Stern. 40 percent of US corn production would be used to produce biofuel, which would drive corn prices to new heights. The stock exchange listing has doubled since 2009. This in turn has an impact on the price of meat, as corn is a popular animal feed.
For companies in the food industry, it is not sales but rather low margins that are the problem, says Jürgen Abraham, Chairman of the BVE, in an interview with Euro. “The food industry earns less and less [...]. There are two reasons for this: On the one hand, manufacturers are suffering from the sharp rise in raw material prices. On the other hand, there is very strong competitive pressure. Germans only spend half as much money on food as Italians or French, for example. "
In these times, companies need to think creatively and entrepreneurially. Ralf Steinhilber, Director Food Processing at Bizerba, explains using an example: “There are now intelligent cutting machines that place the product to be sliced on integrated scales and regulate the slice thickness with software - while the slicing is still in progress. Companies achieve the exact target weight with every packaging and can thus save up to 130.000 euros annually ”.
The large bakeries are also affected by cost increases in many areas, says Helmut Klemme, President of the Association of German Large Bakeries, at the press conference of the Association of German Large Bakeries on September 08th in Frankfurt. “The prices for grain, fats, butter, oil seeds, cocoa, yeast [...] have risen again. In branch bakeries, raw material costs account for up to 30 percent of sales, and up to 60 percent in food retailers ”. The price would have to rise by three percent to compensate for the higher costs, quotes the Berliner Morgenpost.
The consumer price index for Germany in August 2011 was 2,4 percent higher than in the same period of the previous year. Energy prices rose by 9,9 percent, and food prices rose by 2,5 percent year-on-year. Edible fats, edible oils and dairy products were considerably more expensive. Coffee went up by 21 percent, fruit juices by 14 percent. Compared to July, prices remained stable in August.
Source: Berlin [KLARTEXT ONLINE]
