Faced with skyrocketing energy and ingredient costs, German baker Tobias Exner has installed new energy-efficient ovens, reduced his opening hours and even considered baking at lower temperatures.

But “it just doesn’t taste the same without a good crust,” he said, adding that such efforts could do little anyway to address the existential crisis he and other bakers are facing.

“If the framework conditions don’t change, sooner or later most of the bakeries in Germany will simply no longer exist,” Exner told the AFP news agency.

Bakeries in Germany are among the businesses hardest hit by the economic fallout from the Russian invasion of Ukraine.

The war has pushed up energy prices across Europe, but especially in Germany, which was previously heavily dependent on Russian gas.

“All bakeries have ovens. Seventy percent of artisanal bakeries have gas ovens and gas prices are going up,” says Friedemann Berg, General Manager of the Federal Association of German Bakers.

And two of bakers’ main ingredients – flour and oil – have been affected by the blockades in Ukrainian ports.

With 220 employees and 36 branches in Berlin and the surrounding area, Exner’s business is relatively large and is surviving the crisis better than many others – but he too is struggling.

Wheat is now 2.5 times more expensive than before the crisis, while the price of a liter of oil has risen from around 82 cents to more than three euros ($2.91).

Energy bills for the company have now nearly quadrupled compared to 2020.

“You can tell that the calculation doesn’t add up anymore,” said Exner about the machine hum at the company’s main production site in Beelitz.

But Exner is reluctant to pass the cost increases on to his customers, who he says “wouldn’t pay those prices.”

In Berlin-Mitte, the mood on site seems to confirm his fears.

“Any more? It’s not possible. It’s being picked up,” says unemployed Gloria Thomas, 56, when asked if she would be willing to pay more for her favorite bread.

Many bakeries in Germany have already gone under due to recent cost hikes, while others are protesting to demand urgent help from the government.

And it’s about more than just rolls, says Exner.

“These businesses are often the most important institution in the village – they are a grocery store, social center, post office, etc. at the same time.”

At the beginning of September, around 800 German bakeries served their customers in the dark for a day to draw attention to their plight.

Germany’s centre-left government has announced aid measures worth almost 100 billion euros to tackle inflation, but small businesses have so far been largely excluded from the aid.

Worse, they were offended by controversial statements made by Business Secretary Robert Habeck earlier this month.

When asked in a TV panel show whether he believed that Germany was headed for a wave of bankruptcies, Habeck replied: “I can imagine that certain industries will simply stop production for a while.”

The statements caused anger, especially among bakers, who accused Habeck of not having an understanding of their industry.

“Habeck is probably no fool, but the question is, is he qualified for the job he has right now? And I would say no,” said Exner.

The Bakers’ Association calls for “quick and unbureaucratic” financial aid.

Bakeries can cut costs here and there, but “they can only do so much,” says Berg.

If government aid doesn’t arrive soon, “the future looks bleak,” he said.

“It could be that many companies have to go out of business or simply have to file for bankruptcy.”