Gas crisis has already caused two dozen bakeries to fold

The high costs of raw materials and energy have repercussions on the bakery sector. According to the Dutch Bread and Pastry Bakers Enetrerpeneurs Association (NBOV), about 20 bakeries have closed their doors since inflation started skyrocketing.

NBOV director Marie-Helene Zengerink stressed that this concerns entire businesses. “There can therefore be several branches per company. We are now mapping out how many staff will be put out on the street, but there will certainly be several hundred,” she said.

The baker d’n Bekker in Noord-Brabant, with a total of six branches, was declared bankrupt by the court in Den Bosch on Wednesday. There is a note on the door of the shops stating that the “wonderful work” is no longer possible due to the “extreme price increase of our raw materials and electricity.”

In Noord-Holland, bakery Bakker will close its doors in February after over 130 years, NH Nieuws reported. According to the regional broadcaster, which spoke to the current owners, this is also due to the high costs of energy and raw materials. The bakery’s costs increased by 80 percent.

In addition to the high costs, bakers also have to deal with declining clientele weighing on their turnover. They have no choice but to pass on the high prices to their customers. “Most bakers have recently increased their prices two to three times, but that can not continue indefinitely. People must continue to buy bread and pastries,” said Zengerink.

The Cabinet pledged 3.1 billion euros in support for SMEs, but only from April next year. Moreover, the average energy costs now amount to 9 percent of the turnover, which is too little to qualify for the allowance. To qualify, businesses have to spend 12.5 percent of their turnover on energy.

Zengerink, therefore, wants the Cabinet to step in. “It is true that the gas price is falling, but bakers are not yet seeing that decrease in the energy bill. And the need is high now. That is why there should be a reference rate, for example, the rate in September last year. The Cabinet could compensate the difference between the energy price then and now with an advance.”