Although gas prices have fallen dramatically in recent times, the situation remains precarious for many bakers. The energy crisis has already prompted 35 bakers with around 70 branches to go out of business, says director Marie-Hélène Zengerink of the Dutch Association of Bread and Pastry Entrepreneurs (NBOV). ‘Saving energy is difficult and a lot depends on the expiry of the contract.’
The De Gangmaker bakery with branches in the Zeeland cities of Kruiningen, Yerseke, Kapelle and Kamperland closed its doors this week. And Zengerink understands that choice. “Energy prices today are often three to ten times higher than before the energy crisis.” The bakers can only pass these higher costs on to their customers. But there is a risk that customers will stay away».
The situation has become somewhat more favorable for industrial bakeries, says director Wim Kannegieter of the Dutch Bakery Association (NVB). ‘Our customers realized that bakers weren’t the only ones facing rising costs. For us it is no longer a red alert phase.’ But the danger has not yet passed. “If prices go up again, things could change in the blink of an eye.”
Power
Bakers cannot easily save much energy, explains Bakkerijmonitor consultant Friso Berghuis. ‘You can’t bake a loaf of bread at a lower temperature. Of course, not only ovens, refrigerators and freezers are turned off.’
To save costs, bakers can get a good look at what’s selling when and adjust their range accordingly. Narrowing the range can lead to lower costs. For example because less staff is needed. “So you have fewer different products, so you can produce more efficiently.”
Investments
Important investments are therefore necessary for real energy savings. But many small bakers don’t have that money, says NBOV’s Zengerink. “Many baked goods companies have been running out of supplies for months.” Plus, there’s uncertainty about which technology you should invest in, Berghuis explains. ‘A year ago, the baking world wouldn’t have thought it was in this situation.’
The consultant thinks many bakers are now viewing the situation with suspicion. “If there’s a second round of price spikes, many entrepreneurs may stall.” Meanwhile, this month is an exciting one for many bakers. ‘I’ve heard that many bakers were given a new energy contract in January. At the same time, January is still a minor month.’
Some bakers may transfer their business to a competitor with multiple branches. “This crisis is clearly changing the industry,” predicts Berghuis.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
