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German growers warn of food shortages – Welt

Frozen and chilled food makers say they can’t cope with soaring energy costs

German frozen and fresh food producers have warned that rising energy prices could soon force them out of business, according to Die Welt.

“There are significant gaps in the daily food supply of Germans. The situation is more than serious,” an open letter from the industry says.

“Companies now fear that production lines will soon come to a halt and refrigerated food distribution logistics centers will be closed. Some are even preparing for possible insolvency.

The letter was initiated by the German Institute for Frozen Foods and the Association of German Cold Storage and Logistics Companies, and signed by five other industry groups. It was addressed to Chancellor Olaf Scholz, Federal Minister of Economics Robert Habeck and Federal Minister of Food Cem Ozdemir.

According to the authors of the letter, the financial situation of food producers is deteriorating day by day, which could soon lead to a wave of bankruptcies in the industry. They warn that government intervention is needed to salvage the situation. In particular, they are asking for financial support for energy-intensive average producers in the freezer chain.

READ MORE: Strong increase in Russian food exports announced

“The food industry is currently going through the worst crisis since the end of the Second World War… It’s one to twelve. Act now – otherwise the fridges and freezers of the German people will soon be empty,” the letter urges.

Germany, as well as the whole of the EU, is facing a sharp rise in energy prices and a record spike in inflation amid intensified anti-Russian sanctions and a policy of abandoning Russian fuel.

The situation could also soon lead to rationing and energy shortages. The frozen food industry is particularly susceptible to energy supply issues, due to its heavy reliance on electricity for freezers.

For more stories on economics and finance, visit RT’s business section

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