From Deutsche-Welle, September 4:
Skyrocketing prices for electricity, gas and grain are putting an existential burden on Germany's many bakeries. Only large chains and successful artisan bakeries are likely to survive, says one baker in Bonn.
If you want to buy what many believe is the most delicious bread in the city of Bonn, you have to plan well ahead. That's because the line in front of the Max Kugel bakery is long.
The prices are high, too. The cost of a wholewheat loaf has just gone up by 80 cents to €6.60 ($6.56). That's about €2 more than the competition charges.
But Max Kugel's customers in Bonn's affluent Südstadt district are buying his wares as if the Ukraine war and its impact on electricity, gas and grain prices never happened.
The 32-year-old bakery owner is a little surprised. "I always expect a loss of sales when there are price increases, but we don't see a decrease at all. It was rather surprising that even during the hot summer months, we still sold a lot of bread," he told DW.
The bakery boasts huge high-consumption ovens that run on electricity and gas. Prices of flour and grain are shooting through the roof. Then there's the fierce competition, with the many discounters and large bakery chains selling bread and rolls at much cheaper prices.
In Germany, of all places, where bread is seen as much as a cultural asset as Goethe, football or Mercedes-Benz, it's hard to imagine traditional bakeries being forced to close their doors.
But many of them are already calling for a government bailout. "Only the very big and the very small will manage to survive," Kugel predicts.
With 13 employees working the oven and the counter, he views his bakery as a small business. Although Kugel would certainly have what it takes to expand his concept, which is embodied by his slogan "We only do bread" ("Da wo's nur Brot gibt") written across each of the white paper bags used to package the loaves.
Every day, the bakery makes 10 types of bread without preservatives and premixes. No cakes, no croissants. Kugel's business model is to focus on the essentials....
....MUCH MORE
The laptop class and above are impervious to price hikes for food, it just doesn't register.
Whereas for the working class this winter there will be no spending beyond food, fuel and housing.
With maybe a shared subscription to Better Huts and Gardens for some survival tips.
Earlier today:
Ag Commodities: Wheat Much Higher After Putin Talk
No respite for the bread-eaters. Front futures up 46.75 (5.72%) at 863.75
