“Price increases inevitable” – German pasta manufacturers react to increased production costs — RT DE

10 Apr 2022 8:33 p.m

The Ukraine war and the economic sanctions against Russia have had significant consequences for pasta manufacturers in Germany. Their costs for raw materials, energy and logistics are increasing. Consumers have to adjust to higher prices.

According to the Grain, Milling and Starch Industry Association (VGMS), the war in Ukraine has had a massive impact on pasta manufacturers in Germany. The war had exacerbated the already tense situation caused by the corona pandemic, said Peter Haarbeck, managing director of the VGMS, who told the dpa.

Energy supply, raw material procurement, packaging and logistics are affected. According to Haarbeck, the companies would have to take the increased costs into account when setting their prices, otherwise they would not be able to continue to exist. He cannot say how high the price increases will be in the end.

A spokeswoman for the Swabian Maultaschen and Spätzle producers “Bürger” emphasized:

“Since we already have to pay higher prices for our high-quality raw materials, a price increase is unavoidable.”

The company from Ditzingen (Ludwigsburg district) is currently in price negotiations with its trading partners. Raw materials, packaging materials, but also the transport costs increased extremely. According to the spokeswoman, suppliers are currently no longer able to supply “citizens” on the agreed terms.

Mike Hennig, Managing Director of Pasta Riesa, paints a similar picture. The conflict in Ukraine and the associated economic sanctions dramatically dramatized the current situation. The company from Riesa (Meissen district) will have to react to current developments in order to survive the crisis. Managing Director Hennig explains:

“Our customers and consumers must expect higher food prices.”

Noodles are made from durum wheat semolina, explained VGMS Managing Director Haarbeck. Unlike soft wheat, Germany relies on imports of durum wheat. However, Russia and Ukraine did not play a major role in the global supply of durum wheat. Nevertheless, there are problems with the supply of durum wheat. For example, the harvest in Canada, the most important exporter, fell sharply last year after a very hot and dry summer. The general uncertainty on the raw materials markets and the high demand for grain as a whole have now also caused the price of durum wheat to rise – albeit by far not as much as that of soft wheat.

At the moment, pasta manufacturers can hardly keep up with the demand from the retail trade. Haarbeck stated:

“Like at the beginning of the pandemic, people buy large quantities of pasta because they store very well.”

According to Haarbeck, the supply is guaranteed. However, he warned against buying hamsters: If people buy far more than they need to, it will push the logistics from the manufacturers to the supermarket to the limit of their capacities.

More on the subject – Dairy Industry Association: Dairy products are becoming even more expensive


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