German Producers Warn of Food Shortages – Welt

- German Producers Warn of Food Shortages – Welt
by https://www.rt.com/
Manufacturers of both frozen and fresh products say they cannot cope with soaring energy costs
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Germany’s frozen and fresh food producers have warned that rising energy prices may soon force them to stop operations, according to Die Welt. “There are significant supply gaps in the daily food supply for people in Germany. The situation is more than serious,” an open letter from the industry said.
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“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.”
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The letter was initiated by the German Frozen Food Institute and the Association of German Cold Storage and Logistics Companies, and signed by five other industry groups. It was addressed to Chancellor Olaf Scholz, Federal Minister of Economics Robert Habeck and Federal Minister for Food Cem Ozdemir.
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According to the authors of the letter, the financial standing of food producers is deteriorating every day, which 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.
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