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Exploding energy costs threaten fruit, vegetable, horticulture and potato industries

"Supply of domestic fruits and vegetables uncertain"

The exploding energy costs are endangering the existence of companies in the fruit, vegetable, horticulture and potato industries. A collapse of production cannot be ruled out, as the companies do not fall within the scope of the federal aid programs due to their small and medium-sized structure, the German Raiffeisen Association reports. In a joint letter, The Federal Association of Fruit and Vegetable Producer Organizations (BVEO), the German Farmers' Association (DBV), the German Raiffeisen Association (DRV) and the Central Horticultural Association (ZVG) are therefore appealing to Federal Minister of Economics Robert Habeck to quickly initiate financial aid for companies in these sectors.

In the letter, the umbrella organizations are emphasizing clear that the production of fruit, vegetables and potatoes is extremely energy-intensive due to the high quality standards. However, the companies are unable to pass on the rising costs to the market, as food retailers are increasingly turning to cheaper imported goods due to consumers' declining purchasing power. The situation threatens jobs and value creation in structurally weak rural areas. The collapse of production would lead to supply bottlenecks and spell the end of regional and sustainable production.

State aid must come quickly and without any red tape, because what is not sown today cannot be harvested tomorrow and will not be available to the population the day after.

For more information:
www.raiffeisen.de  


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