According to the study, the German food market is highly dependent on trade with China. Frozen and canned foods are the most addicted, the German Food Industry Federation said in a study conducted jointly with consultancy PwC.
In the event of a disruption of trade with China, sales of frozen and canned foods could be reduced by 50%. This situation will affect the prices, the availability of the goods in the assortment or the quality of the products.
What foods may be missing
With regard to drinks, meat and fish, 5% to 25% of the assortment in German stores may potentially be at risk. It should also be noted that vegetable and fruit ingredients for products such as ketchup are grown in China and then processed in other parts of the world, adds the German Food Industry Federation. As a rule, pollock is delivered to China, which is processed there for the further production of fish sticks. The country is also a major player in the processing of sheep intestines for the production of sausages. Additionally, metal packaging, such as cans, is either made directly in China or heavily dependent on raw materials such as aluminum and tin.
Food industry awaits China–Strategy
Food industry officials point to “mixed signals” from German politicians. On the one hand, the development of new supply chains is necessary to increase market stability and reduce its dependence in crisis situations. On the other hand, a more rigorous approach to the selection of suppliers will lead to the abandonment of partnerships with some of them. Therefore, a clear strategy of the German government regarding cooperation with China is necessary.
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