Since Russia began its invasion of Ukraine in February 2022, the scale of the war has been increasing in severity and destruction. The impact of the conflict extends far beyond the worrying situation in Ukraine and is now burdening many different countries. In the economic sector in particular, there are now various challenges such as enormous price increases in the oil and gas sector or supply shortages of systemically important raw materials.
Already since the beginning of the Corona pandemic, the German confectionery industry has found itself facing massive challenges and complains about price increases and severe supply difficulties, which can be found in everything from energy and agricultural raw materials to packaging and transport, and which burden citizens in their everyday lives.
In the current situation, the Lambertz Group, as a system-relevant manufacturer, is also feeling massive restrictions with regard to the supply chain and is primarily complaining about difficulties relating to the shortage of gas. "In most companies in the German confectionery industry, gas is the most important energy source," warns the Bundesverband der deutschen Süßwarenindustrie e. V. (BDSI). Lambertz sole owner Prof. Dr. Hermann Bühlbecker reacts with similar concern in an interview with WELT: "A gas shortage lies like a sword of Damocles over us and the entire industry (...)." Bastian Fassin, Chairman of the BDSI calls for support: "Together with politics and also the food trade, we must ensure that entire shelves do not remain empty in the supermarkets (...). Politicians must now examine all measures that help to ensure that food producers can continue to produce."
Prof. Dr. Bühlbecker supports the statement of the BDSI and agrees with the demand for a clear prioritization of food production in energy supply. In its statement, the BDSI specifies the current situation: "The companies of the German confectionery industry produce food and therefore have an outstanding importance for the supply of the population (...)."
The extent to which the current situation will worsen in the coming weeks and months is currently unclear. The Food and Agriculture Organization recently outlined a global increase in food prices of 12.6 percent and emphasized that Ukraine as well as Russia are important growing countries for goods such as grain, corn and sunflowers.
The German Confectionery Association (BDSI) shared more information in a statement:
- BDSI: Dramatic impact of Ukraine war on German confectionery industry dated April 04, 2022.