Germany: Declining export business for confectionery - tipping point looming

30-Jul-2024

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In view of a saturated domestic market and the high concentration in the German food retail sector, the export of confectionery remains of central importance for producers in Germany. With a share of well over 60% in terms of value, exports make a significant contribution to value creation and to maintaining the unique SME structure of companies.

However, the industry can look back on a difficult year so far in 2024. In the first quarter of 2024, the export volume of confectionery fell by -0.6%, a further decline after 2023 (-1.0%). This is a first and a sign of a possible tipping point due to reduced competitiveness.

In a survey conducted by the Federal Association of the German Confectionery Industry (BDSI), raw materials, personnel, energy and bureaucracy were named as the strongest cost drivers in 2024. The implementation of reporting obligations in the area of sustainability and supply chain legislation pose the greatest administrative challenges for companies.

"We urgently need a political change of course, both in Brussels and in Berlin. In addition to the costs, the economy is being suffocated by ever new bureaucratic requirements. SMEs are increasingly doubting whether they can cope with this flood of regulations and whether Germany will remain economically viable as a production location," warns Dr. Carsten Bernoth, Managing Director of the BDSI. "It is now important to provide new impetus in international trade policy and to strengthen the EU single market. We are urgently calling on the new EU Commission and national politicians to do this."

The main problems that policymakers should solve and take into account include:
- Declaration requirements in the target markets
- Compliance with rules of origin for preferential market access
- Unfavorable exchange rates
- Non-tariff trade barriers
- Lack of or unfavorable trade agreements

Note: This article has been translated using a computer system without human intervention. LUMITOS offers these automatic translations to present a wider range of current news. Since this article has been translated with automatic translation, it is possible that it contains errors in vocabulary, syntax or grammar. The original article in German can be found here.

https://www.yumda.com/en/news/1184065/germany-declining-export-business-for-confectionery-tipping-point-looming.html