Food producers in Germany are warning of “serious” shortages as the global industry faces the “worst crisis since the end of the Second World War.”
German frozen and fresh food producers are raising the alarm, warning that they are unable to cope with soaring energy costs.
According to the German outlet Die Welt, industry leaders warn that rising energy prices may soon force them to stop operations.
“There are significant supply gaps in the daily food supply for people in Germany,” an open letter from the industry said.
“The situation is more than serious.
“Companies now fear that production lines will soon come to a standstill and that refrigerated logistics centers for food distribution will be closed.
“Some are even preparing for possible insolvency.”
The letter was initiated by the German Frozen Food Institute and the Association of German Cold Storage and Logistics Companies.
It was also signed by five other key food industry groups.
The letter was addressed to Chancellor Olaf Scholz, Federal Minister of Economics Robert Habeck, and Federal Minister for Food Cem Ozdemir.
According to the authors of the letter, the financial standing of food producers is deteriorating every day.
The situation could soon result in a wave of bankruptcies in the industry.
They warn that government intervention is needed to salvage the situation.
In particular, they are calling for financial support for energy-intensive medium-sized producers in the deep freeze chain.
“The food industry is currently experiencing the worst crisis since the end of the Second World War,” the letter warns.
“It’s a minute to twelve.
“Act now – otherwise the refrigerators and freezers of the German population will soon be empty.”
Germany, along with the broader European Union, is facing a sharp rise in energy prices and a record inflation surge.
The crisis has soared amid intensifying anti-Russian sanctions and a policy of abandoning Russian fuel.
The situation could also soon lead to energy rationing and shortages.
The frozen food industry is particularly susceptible to energy supply problems, due to its strong reliance on electricity for freezers.