Snack items: Poorest potato harvest in 30 years means higher costs for raw ingredients

Potatoes, corn and wheat — primary raw ingredients used in the production of crisps, savoury baked goods, cheesy biscuits, pretzel products and snack specialities — have become expensive and in short supply.

The reasons for this include the poorest potato harvest for 30 years: July 2006 was too hot and dry, and August was extremely rainy, resulting in too few potatoes of which only a limited number were suitable for producing crisps. With the prices of potatoes, wheat and corn having increased by about a third, the sector expects prices of snack items to rise significantly this year. This assessment was announced by the Association of the German Confectionery Industry (BDSI) in the run-up to one of the world’s most important events for confectionery and snack items — the International Sweets and Biscuits Fair (ISM) in Cologne.

Despite the World Cup tournament in Germany, 2006 did not live up to expectations. The hot weather during the championship enticed consumers to spend time outdoors watching the games on large screens at public venues and along the “fan miles”, where people consumed few snack items compared to when watching matches on TV at home. Figures released to date by the Federal Statistical Office, and the supplementary estimates by the BDSI, indicate that the domestic market for snack items posted minimal growth (+1.3%) in terms of tonnage.

However, there was encouraging development in foreign trade of snack items. While imports increased to 92,000 tonnes (+16%), even stronger growth was posted for exports (+24%), reaching a record volume of approx. 130,000 tonnes. The export quota therefore amounted to over 40%.

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 and 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 be held this year for the second time. This event (29th January to 1st February 2007) will overlap with ISM on three days.