German processors express concern about tense market

The German potato processors united in the 'Bundesverband der Obst-, Gemüse- und Kartoffelverarbeiter' (BOGK) are concerned about the dramatic price increases in the raw material and supply chain. They are particularly concerned about the bottlenecks in logistics and the energy supply.

Agricultural commodities reach historically high prices, says Horst-Peter Karos, director of the BOGK. One of the reasons for this is the sharp increase, up to 100%, in energy prices, the BOGK writes in a message. This results in a price increase for related products, such as fertilizers and crop protection products. Added to this are the ongoing weather risks and supply bottlenecks, which are also a challenge for potato processors. This not only affects the potato market, but also other raw materials, from packaging to rapeseed or sunflower oil.

Passing on costs to trade and consumers
In addition, freight costs have risen explosively. This is partly caused by corona-related measures, which have disrupted logistics chains. But according to Karos, there is also a shortage of truck drivers. BOGK assumes that the current tense situation will continue to plague the potato processing industry after 2022. As a result, according to Karos, processors will have to pass on the rising costs to the food trade and ultimately to the consumer.

Jurphaas Lugtenburg

Is editor at Boerenbusiness and focuses mainly on the arable farming sectors and the feed and energy market. Jurphaas also has an arable farm in Voorne-Putten (South Holland). Every week he presents the Market Flash Grains

j.lugtenburg @boerenbusiness. Nl

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