German Food Industry Strengthens Crisis Management Amid Ongoing Risks
- Rising procurement costs and shifting supply chain risks pose significant challenges for the German food industry, according to a risk study published by the Bundesvereinigung der Deutschen Ernährungsindustrie...
- The study reveals a distinct shift in risk factors along supply chains compared to previous years.
- The food industry has proven in recent crisis years that it remains capable of delivering and operating even under the most difficult conditions.
Rising procurement costs and shifting supply chain risks pose significant challenges for the German food industry, according to a risk study published by the Bundesvereinigung der Deutschen Ernährungsindustrie (BVE) and AFC Risk & Crisis Consult GmbH. Based on a survey of 330 industry decision-makers, the research highlights that while companies have professionalized their general crisis management, broader operational resilience and structural adaptations remain urgent priorities amid ongoing geopolitical tensions, cyber threats, and financial uncertainties.
Procurement Costs Replace Raw Material Scarcity as Primary Risk
The study reveals a distinct shift in risk factors along supply chains compared to previous years. While the physical availability of raw materials previously dominated industry concerns, escalating procurement costs now represent the leading challenge for 81 percent of respondents. Meanwhile, 65 percent cite diminished raw material availability, and 57 percent point to extended delivery times. Uncertainties surrounding long-term investments have likewise intensified. To counter these pressures, 70 percent of businesses are diversifying their supply chains, while over half are adjusting their procurement strategies. Also, 43 percent are increasing their regional sourcing of raw materials, whereas traditional tactics such as building up inventory reserves or withdrawing from specific sourcing countries are losing traction.
The food industry has proven in recent crisis years that it remains capable of delivering and operating even under the most difficult conditions. The companies have adapted their structures, broadened their supply chains, and professionalized their crisis management. Yet resilience also requires economic strength. Companies can only make long-term provisions, secure supply chains, and invest in new technologies and structures if they have the necessary financial leeway. A competitive food industry is therefore the prerequisite for successfully mastering future crises and reliably securing supply.
Kim Cheng, Managing Director of the BVE
Advancements in Traditional Crisis Management and Cybersecurity
When it comes to conventional crisis management, the sector displays a solid baseline of preparedness. The survey indicates that 97 percent of participating companies are prepared for product-related crises, and 81 percent are ready for operational disruptions. However, readiness drops significantly for compliance crises at 66 percent and reputation crises at just 50 percent. Comprehensive operational resilience management is currently implemented in only 20 percent of surveyed firms. At the same time, companies have significantly stepped up their investments in IT security. A total of 88 percent of organizations now invest in IT systems and network security, 84 percent utilize multi-stage data backups, and 81 percent conduct training programs for responsible personnel. Two-thirds of the respondents have established an Information Security Management System (ISMS), reflecting broad across-the-board enhancements compared to 2024.
Resilience does not arise only in a crisis. Companies must know their critical processes and dependencies, run through scenarios, and create clear structures for prevention, reaction, and restart. For this, Business Continuity Management must be understood as a connecting element between risk, crisis, and resilience management and lived out practically. Our results show that the industry has made important progress here and at the same time there is further potential, especially regarding redundancies, Business Continuity Management, and the systematic preparation for different disruption scenarios.
Lena Meinders, Managing Director of AFC Risk & Crisis Consult GmbH