The central trade platform for confectionery and snack items

Producers of biscuits were unable to post growth

There are roughly 100 industrial producers of biscuits in Germany, and last year these companies were unable to post growth in production or in exports. This was announced by the sector to coincide with the International Sweets and Biscuits Fair (ISM) in Cologne. According to estimates of the Association of the German Confectionery Industry (BDSI), based on official statistics available to date, no growth was achieved in the production volume of biscuits last year (711,000 t). Neither was any growth posted in the production value (overall industry turnover), which remained at the previous year’s level of approximately €2.18 billion.

These results are notably lower than those for the preceding years. Key reasons included the very hot weather in June and July 2006 and the weather from September to December, which was much too warm. These factors diminished consumer demand for baked goods and seasonal baked items.

As in the years preceding 2006, the German producers’ foreign trade last year was characterised by lively trade on the European internal market. Intercompany exchanges, which involve the division of production processes among multiple locations of internationally operating companies, represent a significant share of the foreign trade. According to BDSI estimates, 261,000 t of biscuits with a value of €727 million were exported last year. With these export figures the sector suffered a decline of 6.5 per cent in volume and 5.8 per cent in value. In a departure from the trend in previous years, however, imports increased: A total of 198,000 tons (+5.1 per cent) of biscuits were imported, with a value of €479 million (+5.3 per cent).

Of considerable concern at present for producers of biscuits are the drastic increases in raw materials prices and the rising costs for energy and logistics. The price of wheat, for example, climbed by around a third during 2006, and this is clearly reflected in the cost of flour. The sector was also faced with the increasing price of glucose, which rose by more than 30 per cent. Prices of oils and fats were also up, as were costs of packaging materials. This tremendous cost pressure makes it necessary to raise the prices of biscuits.

Germany’s biscuit industry is expecting more positive developments in 2007. The sector companies are hoping that the weather will be more cooperative in 2007 and that their high-quality German biscuits will attract buyers in Germany and abroad.

A total of 1,609 suppliers from 72 countries will be taking part in the 37th ISM in Cologne (28th to 31st January 2007). The fair will occupy 115,000 m² of gross exhibition space in Halls 2, 3, 4, 10 and 11 at the Cologne exhibition centre.

Only specialist buyers from the wholesale and retail trades are admitted to ISM.

The organisers of ISM are Koelnmesse and the International Sweets and Biscuits Fair Working Group (AISM), which is the conceptual sponsor.

Following its successful premiere in 2006, ProSweets Cologne, the international supplier fair for the confectionery industry, will return in 2007, overlapping with ISM by three days (29th January to 1st February 2007).