Cold storage electricity costs and logistics are up more than 100 percent compared to the same month

In the coming weeks, this year's chicory roots will be harvested in the important growing regions of…

In the coming weeks, this year's chicory roots will be harvested in the important growing regions of northwestern Europe. The heat wave of the past summer months will have an impact on the coming marketing season, predicts Michael Schindler, sales manager of Brandenburg trading company SL Schwanteland. However, they must wait until week 49 for the first new chicory.

After the traditional summer slump, demand for German chicory is now slowly picking up, Schindler observes. "We have not had to record any shocking slumps so far. Recently, we have also partially succeeded in implementing a price increase in food retail. However, we also need this price adjustment in order to be able to continue to cover our costs. Electricity costs in cold storage and driving have sometimes increased by over 100 percent compared to the same month last year."

Complicating matters further, in addition to the minimum wage increase to 12 euros/hour, is the sharp rise in packaging costs, Schindler continues. "In my opinion, the potential for further cost reduction in production has also been exhausted, which is why the main task in the new marketing season is to pass on the additional costs accordingly."

Shortages and price increases
Producer SL Gartenbau Ltd obtains a significant part of the roots from the Netherlands, while the remaining part comes from regional cultivation. In the company's own forcing plant, the roots are sprouted into marketable shoots and delivered within a radius of about 300km. Schindler: "Due to the drought, the harvest will be smaller this year, which in turn will lead to shortages and price increases. Although we won't be able to properly assess the inventory until the harvest is complete, we should also expect a higher proportion of small-fall product."

Double-edged sword
Over the years, chicory has predominantly established itself as a niche product in the trade and is only produced and marketed by a few specialists in Germany. According to Schindler, the peak season is primarily concentrated in December through March. "The situation is like a double-edged sword: on the one hand, we see ourselves forced to increase prices, but on the other hand, the customer is increasingly looking at the price in accordance with the circumstances. So the key question this year becomes: To what extent will the consumer remain loyal to us. I am confident, however, that the solid group of buyers will continue to turn to chicory."