Energy crisis: social association warns of wave of private bankruptcies

23 Sep 2022 12:29 p.m

Seven senior managing directors of the German food industry address unequivocal words to the chancellor and the responsible ministers. If action is not taken immediately, “the refrigerators and freezers for the German population will soon be empty!”

“The food industry is currently experiencing the worst crisis since the end of the Second World War,” was the introductory assessment of an open letter with the title:

“It’s 1 minute to 12!”

Several associations in the German food industry warn the government in a fire letter, stating:

“There is a risk of significant gaps in the daily food supply for people in Germany. The situation is more than serious!”

The addressees are Chancellor Olaf Scholz (SPD), the Federal Minister for Economic Affairs and Climate Protection Robert Habeck (Greens) and the Federal Minister for Food and Agriculture Cem Özdemir (Greens), according to the quote from the Berlin morning post. The cover letter states the looming scenario in the country:

“This particularly affects the particularly energy-intensive businesses in the medium-sized frozen and fresh food industries, which are facing an existential threat as a result of the energy crisis.”

According to the text of the fire letter, many companies in the country now fear that production lines will soon come to a standstill and that cold logistics centers for food distribution will be closed. Reality shows:

“Some are even preparing for a possible insolvency! The earnings situation is deteriorating every day, the liquidity situation is becoming more and more tense.”

Reasons for the dramatic situation can be found in the massive confrontation in the industry “with dramatic price increases for your electricity and gas supply”. Other burdens can be found in:

“(…) disrupted supply chains, staff shortages and scarcity of raw materials. Companies can no longer compensate for these massive cost increases through savings or by passing on a proportion of the sales prices to customers.”

The industry magazine Agricultural today informs in an article from September 21:

A storm is brewing: the selling prices of the industry are 45.8 percent higher than last year. This is the highest increase since the survey began in 1949.”

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Also for fertilizer, fodder and other important agricultural resources “the prices would go through the roof”. The demands of the food industry on the three addressees are therefore:

  • The energy subsidies from the Federal Ministry of Economics and Climate Protection (BMWK) for energy-intensive companies must now come at very short notice.
  • Announcements help and are not enough!
  • Open the energy cost reduction program for all medium-sized companies in the deep-freeze chain at short notice – for industry, cold stores, trade and logistics services.
  • Drive ahead with securing the energy supply with the highest priority!

The letter ends with the unequivocal words:

“Otherwise the fridges and freezers for the German population will soon be empty! Act NOW!”

The frozen food industry in Germany represents a turnover of around 15 billion euros. The signers of the fire letter include:

  • the Deutsches Frozen Institute eV (dti) (with 140 members from all parts of the frozen food chain from industry to logistics and trade)
  • the Association of the Meat Industry (VdF)
  • the Federal Association of German Sausage and Ham Producers eV (BVWS)
  • the Association of German Cold Stores and Cold Logistics Companies (VDKL) (representing over 80 percent of commercial cold stores in Germany)
  • the Federal Association of the German Fish Industry and Fish Wholesalers (BDFI)
  • the Federal Association of the German Confectionery Industry (BDSI)
  • the German Fruit Trade Association (DFHV)

There has been no response from the government to the letter so far.

more on the subject – Bundestag: 50 shades of denial of reality – and a voice from Mansfeld

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Source: RT

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J. A. Allen

Author, blogger, freelance writer. Hater of spiders. Drinker of wine. Mother of hellions.

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