Dutch bakeries on the brink of bankruptcy

According to the Dutch Bread and Pastry Association (NBOV), many bakeries across the Netherlands are on the brink of bankruptcy due to rising energy costs.

"Between 40 percent and 60 percent of all bakeries will be unable to pay their energy bills as of January 1," NBOV President Arend Kisteman told local media: "There are about 3200 bakeries in the country. This means that more than 1,500 bakeries will close." Asked if his bakery would survive, Kisteman, who owns a bakery in the northeastern city of Zwolle, replied, "No, for me it will be the end of the story." Like most Dutch families, bakeries are seeing fixed, cheaper energy contracts turn into a variety of more expensive contracts. "Such energy contracts are eight to ten times more expensive compared to last year," Kisteman said. Kisteman said more and more bakeries are staying open for four or five days to cut costs, instead of six days as they usually do. The Dutch Statistics Netherlands (CBS) announced on Tuesday that the country's inflation rate rose to a record high of 12 percent in August, up from 10.3 percent in July. Energy prices, which rose 151 percent, were the main reason behind this increase, but rising costs of daily necessities and housing prices also contributed significantly to the rise. The Dutch Bakers Association (NVB) is also concerned. The association estimates that 40 medium-sized and industrial bakeries, mostly supplying the country's supermarkets, will experience production problems within a few months. NVB Director Wim Kannegieter said that some industrial bakeries may have to stop production within a few months. Kannegieter said, "Some bakers are already having to stop production. Industrial bakeries make bread for supermarkets, which make up 90 percent of the market. They won't last for months either." Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!