In addition to the effects of the coronavirus pandemic, the price of wheat in the commodity futures market climbed 50% to a new all-time high in one year, and a below-average harvest is expected.
The costs of powdered milk, sugar, hazelnuts and soybeans have also risen sharply, the Federal Association of the German Confectionery Industry (BDSI) reported. He said the problems stemmed from declining crop yields, lower imports from third countries, but also increased demand in Asia.
“There are extreme upheavals and dramatic price increases for many important commodities at the same time“said Dr Carsten Bernoth, General of BDSI.
“Manufacturers are particularly affected by large price increases when purchasing the most important agricultural raw materials – wheat, soybeans and sugar, but also in the field of packaging“
The costs of sourcing packaging materials, logistics and energy have also increased significantly.
In international logistics, freight capacities are currently insufficient on road and rail as well as on container ships, BDSI said.
Containers are scarce for transporting goods around the world. During the coronavirus pandemic, many companies have reduced capacity and inventory and are unable to meet rising demand as the global economy recovers.
The BDSI said that a silver lining for companies in the German confectionery industry is that demand for their products from Asia has increased again. German manufacturers are also more optimistic about the prospects for trade with the United States.