Traditional neighborhood bakeries in Greece are “on the verge of extinction” due to high energy cost. More than 1,500 bakeries have been closed in the last 5 years.
One of the most historic professions in Greece, bakeries, is sending out a warning signal: Traditional bakers are talking about “bakeries on the verge of extinction” and about the “strangulation” of the neighborhood bakery, citing the sustainability of the industry.
“The Achilles heel for bakeries is the skyrocketing cost of energy,” says Panagiotis Sachinidis
According to their representatives, more than 1,500 bakeries have closed in the last 5 years across the country, “a number that statistically exceeds even the closures during World War II.” They argue that if immediate measures are not taken, the developments will be dramatic, as many of the bakeries that remain in operation are facing serious problems, with their future in doubt.
“The Achilles heel for bakeries is the skyrocketing cost of energy,” Panagiotis Sachinidis, president of the Bakers’ Guild of Athens, Suburbs and Surrounding Areas and a baker for the last 43 years in a family business founded in 1950, tells newspaper “TA NEA”.
“We went through an economic crisis, we went through the bailout agreements, we went through the COVID period and we endured. Now, however, with the liberalization of energy, which they told us would be for everyone’s benefit, they have brought the craft industry to its knees,” he says.
“The dramatic increase in energy costs has irreparably damaged the competitiveness of our businesses, directly threatening their viability. We are talking about more than doubling the cost of electricity and gas,” he adds. “Think about what a baker who has rent and staff to cover will do. How can he not close? Today, most bad loans in the sector are due to the cost of energy.”
Unfair competition
The problem has been exacerbated by the dominance of large stores that, while not having a bakery license, they sell bread, along with a multitude of other products. “There is a big problem here, which, in addition to the lost profits that it entails for us, is also a health issue,” says Sachinidis.
“We filed a complaint with the competent bodies about the systematic violation of the legislation by the distribution of unpackaged bread in bread stations, in grocery stores and in other points of sale. Bread is not washed, nor is it boiled to clean it; when it is transported and sold “in bulk”, without any protection, it turns into a health bomb for the consumer. And of course this practice constitutes unfair competition to the detriment of traditional bakers,” he explains.
“Bread is produced with struggle and we are the beacon of the neighborhood. Unfortunately, what we see is that now the big companies are getting stronger and the neighborhood street, the greengrocer, the bakery are being lost…”.
The president of the bakers points out that the sector has made several efforts to find solutions, but without meeting any response. “Craftsmen, and especially the bakery sector, one of the oldest and most traditional sectors of Greek craftsmanship, have an inextricable relationship with the world and are the foundation of the local economy and society. For this reason, we have tried to propose solutions ourselves. When the war in Ukraine began, we made a proposal to the Ministry of Agriculture that Greek farmers sow grain and that the bakers of Athens commit to purchasing it in order to become independent from Ukrainian grain. In fact, we even signed a memorandum of understanding with the Agricultural University. We were not listened to,” he says.
He explains that they have also initiated a first energy community for bakers, that could include 50-200 bakers who will invest in the collective production of energy from Renewable Sources, using the Virtual Energy Offset method. This means that the energy produced by a common photovoltaic park will be offset against the consumption of the participating bakers, drastically reducing their bills and ensuring energy autonomy. A cost of equipment for these photovoltaics can be covered by the Recovery Fund.
They have made a relevant intervention in the consultation for the National Social Climate Plan and are still waiting … the bakers’ president stressed.
