Large bakeries: top quality despite cost pressure

Bread market; Baker; United bakers

The German wholesale bakeries will continue to keep their quality promise, even though the costs have increased enormously in many areas. "However, we do not know how long we can still achieve the balancing act between increasing consumer price sensitivity and simultaneously rising costs," said Hubert Zimmermann, President of the Association of German Bakeries.

Above all, the use of high-quality raw materials such as wheat and rye flour has increased significantly, the association announces at its annual press conference on the 30. October in Dusseldorf.

The association is now campaigning with consumers for the insight that high-quality baked goods also need fair prices, so that the recognized high quality of German art of baking remains guaranteed in the future. The prices for bread and baked goods in European neighboring countries such as Austria, France or Italy are 10 to 15 percent above the prices in Germany.

Currently, the industry is exposed to unprecedented cost pressures. In addition to the increased costs for raw materials, higher prices are expected for energy prices and packaging. Already, logistics costs have increased by 5 percent so that the roughly 30.000 supermarkets in Germany can be supplied with fresh baked goods every day.

Should the tension between increasing consumer price sensitivity and unabated cost pressures persist, the association expects an increasing concentration process and additional bankruptcies. Already, more than three companies close the day, and medium-sized companies are now giving up. "This development will mean that companies will no longer have the resources they need to secure employment, process the best ingredients, and invest in new developments. In addition, this trend destroys a balanced producer structure, "says Hubert Zimmermann.

Losers of such a scenario would ultimately be consumers. Because the large bakeries ensure quality and innovation for an indispensable staple food. Bread is recommended by Nutritionists as the foundation of any balanced diet to promote health and fitness. "If the Germans were to eat two more slices of bread a day, this would be a major contribution to reducing the number of nutrition-related common diseases," said Hubert Zimmermann, President of the Association.

The Association of Large German Bakeries brings together companies that supply the food retailers with bread and baked goods as well as larger branch bakeries. They bake fresh daily around 5,5 million loaves and 28 million rolls.

Source: Düsseldorf [vdg]