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The bakery trade - between the art of bread and price pressure

Germany is known for its variety of bread. However, the situation in the bakery trade is difficult, with many businesses going out of business. Others are all the more determined to uphold old bakery traditions and are making new investments.

Wholemeal bread fresh from the oven..aussiedlerbote.de
Wholemeal bread fresh from the oven..aussiedlerbote.de

The bakery trade - between the art of bread and price pressure

Schrippe or Weckle? A cultural dispute has often raged over baked goods, at least between Berliners and Swabians. Baker Tobias Exner offers "Ossis" - his cheapest wheat roll, which he sells for 39 cents.

But nowadays, rolls for more than one euro are also the norm, in this case dark and with grain. Artisan bakers in Germany, whose bread has been a Unesco cultural heritage site for years, are complaining about high price pressure, which customers are also feeling in their wallets.

"We don't raise prices for fun," says master baker and bread sommelier Exner from Beelitz in Brandenburg, who employs around 280 people and runs several branches. "We can't cover our costs at the moment."

Is the trade in danger?

"Unfortunately, one or two bakers go out of business every day," says Friedemann Berg, Managing Director of the Central Association of the German Bakery Trade, in Berlin. Around 600 businesses closed last year. The number of employees - around 238,000 - fell significantly.

Increased energy costs, staff shortages, minimum wage, staff shortages and a mountain of bureaucracy are cited as reasons for the difficult situation. Added to this is the price pressure from discounters and large companies. According to the Food, Beverages and Catering Union (NGG), large chain stores account for almost 30 percent of total sales.

"Sugar is three times as expensive as it was three years ago," says baker Exner, who has reduced his range and sometimes closes earlier in the afternoon. "Whenever Germans have too little money, they save on food." And things could get even more expensive in 2024, at least in bakery-cafés, when the lower VAT rate on food in restaurants rises again to 19 percent next year.

In the bakery at night? Lack of staff puts a strain on bakers

Above all, bakeries are struggling with a lack of staff. The NGG trade union calls working conditions and wages unattractive. In the bakery, work starts at night when others are asleep - many people turn away. According to the central association, a large number of training positions remain unfilled.

Many trainees, who earn 1085 euros in their third year of training according to the national wage scale, also face the problem of not being able to find accommodation. Exner Bakery has now rented 25 apartments for employees itself, and other bakeries also offer trainees shared flats.

"It's getting harder and harder to get journeymen on standard wages. Many are paying extra to keep their staff," says Rajko Pientka, head of department at the NGG trade union. A journeyman, i.e. after three years of training, earns an average of around 2,400 euros a month according to a rough estimate - payment varies greatly in the individual states according to the collective agreement.

Queues outside bakeries

But in many cities, new bakeries are also opening that want to meet the zeitgeist with old craftsmanship. For organic baked goods with spelt, rye, nuts and herbs, customers are queuing up in some places and spending around 8 or 9 euros per kilo for handmade bread.

Consumers are prepared to queue and pay higher prices if they get good quality in return - and not just in the big cities, says Managing Director Berg of the Central Association of German Bakers. "The bakery trade will not be able to pursue a low-cost strategy, it is too labor-intensive for that," says trade unionist Pientka.

Master bakers have long been active on social internet platforms, showing their art of baking in video clips. "Good bread is made with dedication, experience, time and good raw materials," writes a young master baker from Uckermark in Brandenburg, which has also become a magnet for Berlin hipsters, on Instagram. But a modern bakery in the Allgäu region also showcases its breads with "a compact crumb" and "beaten by hand".

"We are experiencing a renaissance in the bakery trade," says association managing director Berg. Last year, 422 new businesses were founded. "We need not fear for the future of the bakery trade."

Baker Tobias Exner, recognizing the financial strains, has said, "We don't increase prices out of pleasure, we can't cover our costs at the moment." Haunted by high energy costs, minimum wage, staff shortages, bureaucracy, and price pressure from discounters, Exner has resorted to reducing his product range and sometimes closing early. Despite these challenges, artisanal bakers continue to create craft rolls, like Exner's 'Ossis' and high-quality bread, attracting customers willing to spend more for quality, such as those queuing for organic bread in certain locations.

Source: www.dpa.com

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