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No nitrogen means no yeast, no bread - and no beer

No nitrogen means no yeast, means no bread - with this causal chain, the German Association of the Yeast Industry warns of supply bottlenecks.

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No nitrogen means no yeast, no bread - and no beer

No nitrogen means no yeast, means no bread - with this causal chain, the German Association of the Yeast Industry warns of supply bottlenecks.

The background is the high gas prices in Europe. “Yeast needs nutrients to grow – and these are produced by the primary industry. There, however, many plants are at a standstill due to the high gas prices, ”describes Markus Weck, the general manager of the yeast association, to WELT.

In addition to vitamins and minerals, the proliferation of yeast cells in large fermenters primarily requires nutrients containing nitrogen and phosphate. And that's where the problem lies. Because the production of nitrogen is currently only running at minimum load throughout Europe. Around 70 percent of the capacities are currently idle, among other things, SKW Piesteritz in Wittenberg in Saxony-Anhalt has also shut down plants.

Because large quantities of natural gas are required for production - and that is now so expensive that production is no longer economical. And this is now affecting yeast production. “The supply situation is dramatically bad. Week after week, the yeast industry worries whether it will still get enough nitrogen to be able to produce," says industry representative Weck.

If she doesn't get it, this can have dramatic consequences for food and beverage production in Germany in the coming weeks. "The yeast industry occupies a key position within the complex supply chains of the food industry because it provides a valuable and irreplaceable ingredient for numerous sectors - above all artisan and large-scale bakers, but also for breweries and winemakers," says a statement from the association.

The German yeast industry thus plays an irreplaceable role in the local security of supply of staple foods such as bread. However, the production of yeast extract, which is used in the food industry as a flavoring in soups and sauces, among other things, would also be affected. "We are still able to deliver, but that can change quickly if the supply of raw materials does not improve," says expert Weck. The industry sees the production of baker's yeast as "massively threatened".

Weck's industry association believes that the situation can only be relieved in the short term with political help. "The yeast industry, as part of the food industry and its supplier industry, urgently needs noticeable relief from politicians in order to survive the current energy and raw material crisis and to be able to continue producing in Germany." There are currently a handful of suppliers in Germany who sell around 130,000 tons produce yeast per year. This exceeds the market requirement of around 100,000 tons. At least 70,000 tons are also sold abroad.

The topic of energy concerns these manufacturers not only when purchasing nitrogen. The companies are also large consumers themselves. Because in order to be able to multiply optimally in the fermenters, the yeast also needs uninterrupted cooling in addition to nutrients and a continuous supply of air. In addition, after separation from the yeast, the nutrient medium has to be processed in a complex manner in order to produce animal feed and agricultural raw materials within the framework of the circular economy.

Finally, the containers, tanks and piping used must be steam cleaned to avoid contamination of the yeast. "For all of these process steps, an adequate supply of energy at competitive prices is essential," the industry association complains.

Cries for help on the subject of energy prices also come from the customers of the yeast manufacturers, such as the breweries. "It's five to twelve," says a joint appeal by the German Brewers' Association and its six regional associations. “Fear of existence is spreading in large parts of the German brewing industry, which is characterized by medium-sized companies. Hundreds of companies and many thousands of jobs are at stake. They are in danger of falling victim to a completely misguided energy policy in the midst of the worst crisis in the German economy since the war.”

The brewers warn of numerous closures in view of the exploding costs for electricity and gas and, as a result, also unprecedentedly high prices for many other goods such as malt and yeast, glass and crown caps or pallets and packaging material such as foil, cans and cardboard boxes. At the same time, according to the complaint of the brewing trade associations, politicians are taking measures of questionable effectiveness and erring about energy policy instead of doing everything to quickly reduce the cost of energy use for business and end consumers.

"In this situation, the vague promise of aid packages, the extent of which nobody knows and from which nobody knows when funds will flow, does not help," the appeal says. “The crisis is here and now. And it is now demanding a solution.” The industry is demanding, among other things, an ideology-free use of all available energy sources for electricity generation, a cap on electricity and gas prices and a suspension, or at least a reduction, of all taxes, levies and surcharges on electricity and electricity Gas.

The example of Radeberger shows how real the existential crisis in the industry is now. The largest German brewery group will close the production and bottling plant of the traditional Binding brewery in Frankfurt, the company has now announced. "Against the background of the most recent crises, the massive burdens that the German brewers are confronted with and, last but not least, the dramatic cost explosions that we as an industry have to shoulder, it is unfortunately no longer possible for the group of companies to continue operating," says Guido Mockel, spokesman for the management of the Radeberger Group.

In October 2023 at the latest it will be over in Frankfurt, the brands and quantities produced and bottled there will be gradually relocated to sister locations by then. The company, which belongs to the Oetker Group, then operates 13 brewing locations across Germany.

Managing Director Mockel calls the closure a "difficult decision, but one that can no longer be postponed". Because the industry has not even remotely recovered from the consequences of the corona pandemic and is already groaning under what are probably the most dramatic cost increases since the end of the Second World War. “In our group of companies alone, these burdens currently amount to an additional three-digit million amount, and the trend is rising. A sum that can no longer be cushioned by increases in efficiency alone,” says the brewery manager. That's why there will also be price increases for beers from Radeberger from December - for the second time this year, which is extremely unusual for the brewing industry. The market leaders include the brands Jever, Radeberger, Tucher and Schöfferhofer as well as Allgäuer Büble, Berliner Kindl, Stuttgarter Hofbräu and Ur-Krostitzer.

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