Xinhua Finance reporter in Germany: Russia-Ukraine conflict caused a shortage of grain and oil, food prices

2022-06-19 0 By

Xinhua finance in Frankfurt, April 2 (xinhua Shao Li) Ukraine and Russia for more than a month since the fighting took place, its impact on ordinary germans living in the supermarket have obvious: although restricted measures were taken, flour, cooking oil in the supermarket shelves are still empty, I do not know when it’s time to back fill;Instead of traders’ exhortations that there was no need to hoard goods, people were more concerned with reports of what food would be in short supply next, and would rise sharply in price.Reporters recently visited Frankfurt city and the suburbs of a number of large supermarket chains, found that flour and cooking oil has been seriously out of stock.Globus, a German retail chain, posted a notice saying some goods could not be produced and were in short supply because of the disruption of raw materials from Ukraine.Businesses are struggling to secure supplies.The store currently limits the purchase of flour to one pack (1,000 grams) per person.Not only the hypermarket, but also some of Germany’s best-known chains and budget supermarkets, such as River and Lido, have the same problem: the flour and cooking oil sections are hard to find beyond a few higher-priced breadcrumbs and olive oil.Shelves that used to be full are empty.Traders’ associations in Hesse, which includes Frankfurt, have called on consumers to remain calm and not to stock up in large quantities as they did at the start of the coronavirus outbreak.BayWa, Germany’s largest agricultural trader, does not expect a shortage of food in Europe, but admits prices will rise significantly.And the traders did not give a specific timetable for resuming full supplies of flour and cooking oil.The price of seeds, fertiliser and diesel fuel has risen sharply since the fighting in Ukraine began, and consumers may soon feel the consequences more fully, the Hessen farmers’ association said.According to the association, diesel prices have roughly doubled;The price of feed has doubled;The cost of some types of fertilizer has tripled or more.Stefan Schneider, vice president of the Hessian Agricultural Association, says the liquidity of many agricultural companies is at risk as farmers will have to take on high advances and investments before harvest.And as long as the fighting continues, stabilising operating costs will be difficult.”The price of bread in Germany could double – up to 10 euros – because of the recent sharp rise in wheat prices,” said Klaus-Peter Lucht, vice president of the farmers’ association in the northern state of Schleswig-Holstein.He expects food prices to rise 20 to 40 per cent on average.Some ukraine-based foods such as sunflower oil, canola oil and apricot jam may not even be available for a long time.Germany’s leading budget supermarket, Orloch, recently announced price increases on more than 400 products.German media analysts say consumers will then have to get used to higher prices or even shortages of honey.While Germany imports honey from 60 countries or regions around the world, Ukraine accounts for nearly 18 percent of imports, according to 2020 data.It is unclear, though, how quickly the price of honey in German supermarkets will rise.But industry insiders say it is almost certain that German dealers will struggle to find alternatives to Ukrainian suppliers.The number of bee farmers in Germany has increased significantly in recent years.If it continues to rise over the next few years, it should be possible to make up for the loss of imports from Ukraine within five years.German media have exclaimed that Volkswagen supermarkets in Germany are now seeing scenes not seen since the outbreak of the coronavirus crisis in the spring of 2020: cooking oil, flour and yeast are becoming scarcer — and, if they are, expensive;Honey supply bottlenecks also loom;Beer may become more expensive;Now meat and sausage prices are also going up…Westfleisch, Tonnies, TFB and other major meat production and processing groups in Germany have demanded immediate changes in the prices of their products in supermarkets.”Costs have exploded recently,” says the German Meat Industry association (VDF).In a warning letter to customers, Tonnies said that the high cost of electricity and gas, and the fact that many Ukrainian drivers are now unable to work, had passed on large increases in feed and operating costs to the meat processing industry.Westfleisch group sales manager Hubert Keliger warned that meat and sausage products would be in short supply if prices were not quickly raised to cover costs.The outcome of price negotiations between meat producers and retailers is expected in the next few weeks, and according to Westfleisch, the increase could be between 1.50 and 2 euros per kilogram.And it’s probably not the end.Producers expect a new wave of meat buying from price-conscious consumers.It’s not just meat and sausage producers who are having to endure higher costs, but other food manufacturers are increasingly struggling as well.Non-gm milk production is facing a bottleneck.Because Germany not genetically modified animal feed mainly imported from Ukraine or Russia, Germany’s agriculture and food industry association, said rapeseed and soybean meal feed from Russia and Ukraine are expected to be in a very long period of time can’t supply, many farmers and processing enterprises will soon have to exit the non-gm milk production, non-gmo milk in the supermarket will be a shortage.The German Federal Egg Association issued a red alert, saying: “The German egg industry may be in short supply by the start of summer at the latest.”The head of the association, Henna Schoenek, says the price of animal feed has more than doubled in a very short time.Non-gm soybeans are already hard to come by.In addition, the German farmers’ association expects the production of vegetables, especially cucumbers and tomatoes, to decline significantly due to higher energy prices.Many greenhouses used to grow cucumbers and tomatoes in Germany now have to be idle because of high energy, fertilizer and personnel costs, the association said.Germany’s Federal Food Industry Association has warned of the biggest raw material crisis since the second world war.”Politicians must now review all measures to ensure that market tightness is eased and food security is ensured,” said Stefani Sabet, the association’s managing director.According to Mr Sabet, businesses have reached their limits and are in urgent need of relief to avoid compromising security of supply.The rapid rise in raw material prices cannot be dealt with by the strength of food industry enterprises alone.Statement: Xinhua Finance is a national financial information platform contracted by Xinhua News Agency.Under no circumstances does the information published on this platform constitute investment advice.