Energy pressures hit bakeries and butcher shops
Business owners are vulnerable as costs rise faster than sales, driven by inflation and the impact of the conflict in Europe. The surge in prices for raw materials, electricity, and fuel hits sectors with constant energy use, such as bakeries, patisseries, and butcher shops. Organizations like Facpyme and Confecomerc urge governments to recognize these sectors as heavy energy users and to take steps that help them weather this tough period.
Bakers face ongoing uncertainty as inflation persists. Industry groups note that prices for essentials like flour, yeast, sugar, milk, and eggs push up production costs while selling prices struggle to keep pace. This creates a real dilemma for many small bakeries that must cover higher input costs without fully passing them on to customers.
The government’s Royal Decree addressing electro-intensive companies aimed at large bakeries and pastry producers, but trade CNAEs are not fully covered. This leaves a gap that requires administrative support to sustain these businesses, especially those with high energy use in the production chain.
Beyond increased expenses, there is a loss of passing knowledge within families who have operated these shops for generations. The inflationary spiral threatens long-standing business lines passed from parents to children, and the stress is pushing some shops toward closure.
The closure of these facilities would ripple through local economies and communities, harming neighborhoods and towns. A decline in bakeries could accelerate early retirement for owners and shrink the number of small, traditional shops—an outcome that would be difficult to reverse without swift policy responses.
The bakery and patisserie sector remains a key part of the food economy, supplying daily needs to the public and to other businesses such as hotels and caterers. In other nations, including France, measures are already in place to shield this essential craft. Examples include assistance with electricity bills and options to defer taxes and social security contributions for merchants facing high energy costs.
Butchers are also under pressure
Butchers confront similarly steep costs. Their facilities and equipment demand steady energy use, including after-hours and weekend operation. In addition to ordinary operating expenses, cold storage, display counters, slicers, wrappers, mincers, and ovens add to the baseline cost structure faced by butcheries and delis. VAT treatment for meat products is another point of discussion, with advocates arguing that VAT relief could ease budgeting and support consumer purchases during tough times.
Lowering VAT on meat products would provide relief and help these firms survive the current cost pressures. Retailers stress that meat remains a staple, central to healthy diets, and continued affordability is vital for communities that rely on local shops for reliable access to essentials.
Promoting trade through education
Faced with these challenges, Facpyme and Confecomerc are taking action to stabilize the sector. The craftsman nature of these trades demands professional skill and ongoing education to sustain high standards. It’s crucial to position small shops as essential parts of urban life, offering healthy, daily necessities. The message from industry leaders is clear: these businesses must be protected to preserve local economies and cultural heritage. They emphasize that shops delivering essential products keep neighborhoods vibrant and cannot be allowed to disappear without quick, practical support. (Cited: Facpyme; Confecomerc)
Energy costs also influence the broader trade balance, affecting imports and exports of food products. The bakery and butcher sectors have deep roots in the Valencian Community, representing a living heritage of artisanal craft, quality foods, and traditional practices. They are seen as anchors of local economies, sustaining jobs and supporting related businesses in the supply chain. Without timely remedies, closures could cascade, hurting neighborhoods and the broader regional economy. These communities urge policymakers to act now to keep bakeries and traditional butchery thriving for future generations.
Ultimately, the fate of these industries matters beyond the storefront. They embody local identity, sustain livelihoods, and contribute to the social fabric of towns. By addressing energy costs, offering targeted relief, and promoting education and succession planning, communities can help these venerable trades adapt and endure.