The potato processing industry, represented by the German Association of the Fruit, Vegetable and Potato Processing Industry (BOGK), sounds the alarm. The current war situation between Russia and the Ukraine is leading to an explosive cost increase in almost all areas that affect the manufacturing of processed potato products.
In addition to the exorbitantly high energy prices, the industry is also hit by the high price increases due to the shortage of important agricultural raw materials such as sunflower oil and rapeseed oil.
Even with possible alternatives, if available, there are significant price increases, as is the case for instance for palm oil. The current global distortions in logistics result in massive cost increases in agriculture and a lack of raw materials. At the same time, we are confronted with the absence of Ukrainian drivers and workers employed in the logistics sector and in agriculture.
For the companies in the BOGK, it is not just a question of production costs in the short and medium term, but also the question of whether the production of food, and therefore also the production of processed potato products, can be guaranteed at all for the consumer, says Horst-Peter Karos, Managing Director of the BOGK. From the point of view of the BOGK, a stronger partnership and a recalculation with regard to the contract conclusions with retailers is now urgently required.
For more information:
Horst-Peter Karos
Tel: +49 228 93291-12
