The energy crisis “explodes” bread prices in Europe

The institute mentions a set of data related toBread prices in EuropeInclude:

  • This increase is significant compared to August 2021, when the price of bread was on average 3 percent higher than it was in August 2020.
  • There are strong disparities between European countries, unlike France which did not exceed Bread price hike 8 percent, prices jumped in Central and Eastern European countries.
  • Hungary ranked first with 65.5 percent, while the increase was about 30 percent in the three Baltic states, Slovakia, Croatia, Poland, Bulgaria and the Czech Republic. As for the Germans, the price of bread rose by 17.5 percent.
  • These are the same countries that have the highest inflation rates in the European Union, and are also recording the strongest price increases, and the reason is that they are highly dependent on Russian gas and have been hit hard by the consequences of The war in Ukraine.

Energy and raw materials eat up the baker’s pocket

The reasons for these increases, according to the president of the National Union of Bakeries and Pastries in France, Dominique Anrack, are due to "The sharp rise in the prices of raw materials and energy".

Explains Anrak in connection with the site "Sky News Arabia"that:

  • wheat prices In the global market, it experienced a skyrocketing rise about a year ago, before the war in Ukraine In the first stage, the exchanges on the level of raw materials between Canada, America, Russia and France faced several crises.
  • These crises included fires in Canada and droughts in Russiawhich made the price of one ton of wheat rise to 280 euros.
  • As soon as wheat prices began to fall, the war began in Ukraine. Kyiv decided to ban the export of wheat and withdraw 12 percent of its product on the market, fearing that it would run out in its internal market.
  • As a result of this measure, demand increased against the weak supply, and thus the price of one ton rocketed to 460 euros.
  • The same applies to yeast, sugar, butter, eggs and baking paper, as prices have risen by about 20 percent.
  • Workers’ wages have also gone up, and they make up between 30 and 40 per cent of bakery turnover.
  • As for the point that overflowed the cup, it was energy prices, as the bakery bill nearly doubled 3 to 4 times, representing 18 percent of the turnover, after it was only 3 percent.

Bakeries closing their doors

Faced with these increases, some bakeries in Europe to close its doors, especially in Belgium and Germany.

Among these bakeries, which failed in the face of high prices, bakery "De Ban Sur La Blanche"which was closed permanently in the Belgian capital, Brussels, on Sunday.

And in reply "automatic" On the question of the face of the site "Sky News Arabia" To Justin and Manu, the owners of the bakery, on the reasons for making this decision, they would only say: "After the very high fees, we had to close the bakery like many of our colleagues".

And in an explanation on the official bakery website at "Facebook"came: "It is with a heavy heart that we announce the closure of the bakery this weekend. The electricity bill went from a monthly premium of 290 euros to nearly 600 euros at the beginning of the year. Currently it has reached 1,485 euros. Therefore, we prefer to limit losses by stopping the bleeding".

Anrak considers that "The closure step taken by a group of bakeries, whether in Germany or Belgium, is expected, in light of the 10-fold increase in the electricity bill.".

On the other hand, he gives an explanation of the French exception, saying: "France is the only country where you buy baguettes every day. We have a special relationship with this basic product because it is hermetically protected. And the decision to increase its price is not easy, which explains that in 20 years, its price has increased by only 25 cents".

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The institute mentions a set of data related toBread prices in EuropeInclude:

  • This increase is significant compared to August 2021, when the price of bread was on average 3 percent higher than it was in August 2020.
  • There are strong disparities between European countries, unlike France which did not exceed Bread price hike 8 percent, prices jumped in Central and Eastern European countries.
  • Hungary ranked first with 65.5 percent, while the increase was about 30 percent in the three Baltic states, Slovakia, Croatia, Poland, Bulgaria and the Czech Republic. As for the Germans, the price of bread rose by 17.5 percent.
  • These are the same countries that have the highest inflation rates in the European Union, and are also recording the strongest price increases, and the reason is that they are highly dependent on Russian gas and have been hit hard by the consequences of The war in Ukraine.

Energy and raw materials eat up the baker’s pocket

The reasons for these increases, according to Dominique Anrack, president of the National Union of Bakeries and Pastries in France, are due to the “sharp rise in the prices of raw materials and energy.”

Anrak explains, in connection with “Sky News Arabia”, that:

  • wheat prices In the global market, it experienced a skyrocketing rise about a year ago, before the war in Ukraine In the first stage, the exchanges on the level of raw materials between Canada, America, Russia and France faced several crises.
  • These crises included fires in Canada and droughts in Russiawhich made the price of one ton of wheat rise to 280 euros.
  • As soon as wheat prices began to fall, the war began in Ukraine. Kyiv decided to ban the export of wheat and withdraw 12 percent of its product on the market, fearing that it would run out in its internal market.
  • As a result of this measure, demand increased against the weak supply, and thus the price of one ton rocketed to 460 euros.
  • The same applies to yeast, sugar, butter, eggs and baking paper, as prices have risen by about 20 percent.
  • Workers’ wages have also gone up, and they make up between 30 and 40 per cent of bakery turnover.
  • As for the point that overflowed the cup, it was energy prices, as the bakery bill nearly doubled 3 to 4 times, representing 18 percent of the turnover, after it was only 3 percent.

Bakeries closing their doors

Faced with these increases, some bakeries in Europe to close its doors, especially in Belgium and Germany.

Among these bakeries, which failed to face the high prices, is the bakery “De Ban Ser La Blanche”, which was closed permanently in the Belgian capital, Brussels, on Sunday.

In an “automatic” response to a question by “Sky News Arabia” to Justin and Manu, the owners of the bakery, about the reasons for making this decision, they only said: “After the very high fees, we had to close the bakery, like many of our colleagues.”

And in a clarification on the official bakery website on “FacebookIt is with a sad heart that we announce the closure of the bakery this weekend. The electricity bill went from a monthly premium of 290 euros to nearly 600 euros at the beginning of the year. Currently it has reached 1,485 euros. Therefore, we prefer to limit losses by stopping the bleeding.”

Anrak considers that “the closure step taken by a group of bakeries, whether in Germany or Belgium, is expected, in light of the 10-fold increase in the electricity bill.”

On the other hand, he gives an explanation for the French exception, saying: “France is the only country in which you buy baguettes every day. We have a special relationship with this basic product because it is tightly protected. And the decision to increase its price is not easy, which explains that within 20 year, its price increased by only 25 cents.

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