HomeLatest NewsAfter 90 years, German bakeries will close as fuel costs rise

After 90 years, German bakeries will close as fuel costs rise

Cologne: For 90 years, Engelbert SchlechtremenIts family bakes wheat rolls, rye bread and chocolate cake in this West German town. Next month, they’ll shut down the ovens for good, because they can no longer raise energy prices as a result of Russia’s war in Ukraine.
Schlecktrimen’s grandparents founded the bakery perfume Before World War II. The 58-year-old took over the business from his father 28 years ago and turned it into an organic shop that uses traditional recipes and bans chemical additives in the bakehouse.
Still, even these innovations wouldn’t save him from closing the family business — a bakery and two shops that employed 35 people — nearly a century later. It is the victim of a European energy crisis driven by Russia’s cutbacks on natural gas, which is used to heat homes, generate electricity and power plants.
Rising fuel and electricity prices have already weighed on businesses struggling with rising inflation as well as other cost increases.

After 90 years, German bakeries will close as fuel costs rise

“For some time, we have been dealing with several crises at the same time: job vacancies, manpower shortages, shutdowns due to the coronavirus pandemic, a sharp increase in the cost of raw materials and now an explosion and further increase in energy costs. personnel costs,” Schlechtrimen said this week.
He pointed to a 50% increase in the cost of materials. And “Now, there is also a crisis in fuel consumption. So far, we have seen an increase of about 70%, because we heat the stove with diesel oil. Prices are expected to increase fourfold.”
Schlechtreimen tried to save energy wherever possible – but it wasn’t enough to keep up with the rising costs.
He also raised the prices of his products to meet his rising costs, but customers, who were tightening their belts as inflation rose, stayed away and turned to discounters selling industrially-made baked goods for less.
Eventually, Colon Baker had to admit that he was no longer making enough profit to sustain his business.
Schlechtremen is not the only unemployed person struggling to make ends meet in Germany these days Small, family-owned bakeries across the country are having a hard time making ends meet.
“Many businesses in the bakery business are worried about how they will fare in the next few months. They face a cost tsunami,” said Friedman BergManaging Director of the German Bakers Confederation.
“We would like to see a financial bailout for our bakeries, the federal government providing assistance to help our businesses effectively, quickly and bureaucratically,” Berg said.
The German government this month announced an additional 65 billion-euro investment in a new round of measures aimed at easing the sting of inflation and high energy prices for consumers.
But for people like Schlecktrimen, help may come too late.

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