Energy price increases are threatening a wave of closures across the Dutch baking sector, according to the industry organisation, with some enterprises reporting cost increases of up to tenfold.
According to Statistics Netherlands, Dutch inflation reached 12% in August, driven mostly by a 151% year-on-year increase in gas and electricity prices.
‘I’m hearing from a lot of entrepreneurs that if this continues, they’ll have to close up shop,’ said Marie-Helene Zengerink, general manager of the Dutch Association of Bread and Pastry Bakers, which has 1,600 members.
‘A lot of family companies are being discussed. It is a true emergency.’
On Tuesday, the association took out a full-page ad in the Dutch daily Algemeen Dagblad, pleading with the government to do something about rising energy bills.
Governments across Europe have pushed through multibillion-euro packages to protect businesses and households in the aftermath of Russia’s invasion.
Many bakers’ energy contracts have expired or are expected to expire this year, with power prices ranging from 3,000 euros ($2,968) to 30,000 euros per month, according to Zengerink.
‘You can’t pass that expense on to customers for a loaf of bread.’
The group is urging the Dutch government to temporarily repeal the energy tax and to withdraw its opposition to a price cap on energy implemented in several European countries.
Others in the food industry were also affected by growing expenses. Picnic, a Dutch online grocery delivery company with yearly sales of around 450 million euros, announced a freeze on frozen goods deliveries.
‘The energy crisis has taken such a toll on our ice supply that it can no longer produce sustainable dry ice,’ Picnic explained.
Customers will be unable to order frozen pizzas, meals, or ice cream until a replacement supply is identified, according to the company.
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