Quality and innovation in demand

iba is the most important international platform for the baking sector. Experts from all over the world meet here.  Roland Ermer, President of the German Bakers’ Confederation, was interviewed on the challenges posed by the tough market environment and on the potential offered by food trends for artisan bakers. 

Mr Ermer, you have been President of the German Bakers’ Confederation since 2023. Not only that, you have also run a successful family business for 37 years. So I think it’s fair to say you know the industry very well. How does the German bakery market compare internationally? 

The situation in the German bakery trade is tense but stable. The crises of recent years are continuing to pose a challenge for most companies. Yet German bread culture is included in the UNESCO intangible cultural heritage list – and for good reason. Bread is an important staple food in Germany and craftsmanship continues to be valued by consumers. 

What are the strengths and weaknesses of the sector? 

The title of master baker stands for proven quality and expertise in the production of baked goods made to traditional recipes – as well as for the creation of innovative new products. This is being impressively demonstrated in the high-calibre competitions at iba. Values also play an important role in the bakery trade. These include an appreciation of the value of high quality ingredients, of the importance of being firmly anchored in the local area, and of good employee management and customer relationships. The sector’s weakness is also its greatest strength: the bakery trade in Germany is very varied – there is no such thing as a typical bakery. Each bakery business is unique. This sometimes makes it difficult to speak on behalf of THE industry and to find consensus. At the same time, however, this ­remarkable diversity is the reason for the high esteem in which we are held in Germany and around the world. 

The German Bakers’ Confederation has long been fighting against bureaucratic overreach. What forms of bureaucracy are making it difficult for craft businesses to be successful?  

The many documentation obligations that  
we have in Germany – such as the Packaging Act, the requirement for risk assessments in the Occupational Health and Safety Act or the perennial bugbear of having to issue receipts – all make life particularly difficult. EU laws also make it challenging for small and medium-sized companies, as these laws are often aimed at ­industrial companies, with no exceptions being made for small craft businesses. A good example of this is the EU deforestation regulation, which has caused a lot of controversy in recent months. One of our major demands is that ­policymakers reform the Working Hours Act. Currently, artisan bakers are only allowed to bake for three hours on Sundays – far too short to compete with their industrial rivals. 

What other major challenges is the sector facing? 

The shortage of skilled labour and young talent is being felt everywhere. Many companies are unable to fill training places, even though the conditions have improved significantly: fair training pay, a mobility allowance, modern training conditions, and so on. We are countering the shortage of skilled workers and young talent with our “Back dir deine Zukunft” (Bake your Future) campaign and are delighted that we were finally able to report a rise in the number of young people signing up for training contracts last year. 

How does the Confederation support craft bakers in overcoming these challenges?  

The young talent campaign I just mentioned is an important aspect – we inform young people and their parents via the campaign website, our social media channels and the press. We are also having a great impact through partnerships and alliances – for example with the Federal ­Institute for Vocational Education and Training, but also with service providers from abroad – in attracting skilled workers to Germany. 

In your eyes, what are the most important trends – in terms of the market, food and technology – and what effect are they having on artisan bakers? 

Artificial intelligence and digital developments can play a major role in operational processes – such as in goods ordering systems, in shifting night-time production processes into the daytime or in digital workforce scheduling. In addition, the renaissance of craftsmanship is playing a crucial role for many companies. A “transparent” bakery can serve as a showcase for its own craft. Also, customers appreciate the importance of locally-made products – in classic product ranges or in striking new creations that enjoy great popularity in the urban centres. 

How are such technological developments affecting the individual businesses?  

Technological developments are crucial in every sector, which is why trade fairs like iba are so important. Each company must decide for itself where there is need for optimisation and where it is worth investing. Examples here include highly efficient ovens and machines that take the strain out of physically strenuous tasks  
for artisan bakers, or digitalisation which can ­improve communication between the retail, administration and production functional areas.  

How important are craftsmanship, freshness and quality awareness to the success of artisan bakers? 

These three attributes are the so-called USP’s of the bakery trade. Our craftsmanship is a key factor in why customers keep returning to their local bakery. In the past, some bakers tried to compete with industrial producers. That is not the solution. We cannot win the battle for the lowest price, but we can score highly with our craftsmanship. 

What role do regionality, seasonality, crea­tivity and freshness play? 

The bakery trade has always been characterised by local production, its use of locally-­sourced ingredients and its being an important employer in the local region. A bakery provides a basic foodstuff, but it also offers plenty of potential for impulse purchases. This is why it is so important to have good staff who can tempt customers to buy attractive seasonal products such as yeast plaits at Easter or stollen sweet bread at Christmas. When it comes to product selection and development, creativity is required in both the shop and the bakehouse – which is what makes working in the bakery trade so appealing. Freshness remains an important unique selling point. And the best thing is that good artisan bread will stay fresh for days at home. 

How important is the iba for the sector – and especially for artisan bakers? 

iba is THE meeting place for the German bakery trade. Here, companies can see what is happening internationally, gain inspiration from the various competitions and, above all, discuss business with their peers. The Sunday of the fair is Bakers’ Day, which features an extensive and useful programme of events aimed especially at artisan bakers. 

After being held for many years in Munich, the iba is returning to Düsseldorf this May. What are the reasons for this and what are you hoping for from the relocation?  

This year’s iba has a different slot in the calendar and is taking place in a different location. This is due to the break from the usual three-year rhythm – which in turn is an after-­effect of the pandemic. I am very much looking forward to Düsseldorf, as it represents an attractive location for the neighbouring countries in particular. From 2027, iba will be back in Munich as usual and then be held every three years. 

What initiatives and events is the Confederation organising at the fair? 

Visitors will find our Bakery Village in Hall 14. It provides an opportunity to pick up information on the latest activities and services of the Confederation. The popular iba.forum also offers an ideal starting point for exploring the trade fair. Visitors can look forward to informative specialist presentations, enlightening product evaluations and impassioned award ceremonies such as the Honorary Prize of the German Bakery Trade. The highlights are, of course, the competitions in our show bakeries, which also attract an international audience. A new departure will be the Bread Sommelier World Championship on the Wednesday of the fair. The iba.Academy runs instructive workshops for international guests, and also the “Trainee workshop”. And of course there will also be plenty of opportunity for mixing and meeting – at the iba.Bäcker party on Sunday, for example. 

What are you hoping to achieve with all these activities? 

We want every baker to leave the iba full of enthusiasm and inspiration for their own business. Every day at this huge trade fair, visitors are bombarded with so many impressions. For me personally, I think the most important thing is talking to and networking with others in the sector. We are all in the same industry and are all facing more or less the same challenges. And that is why we need to stick together as a community and learn from each other. 

How will the baking sector develop in the short, medium and long term? 

The shortage of skilled labour and young talent will continue to occupy us in the coming years, which is why it is so ­important to create the best possible conditions for both employers and employees. If we bakers concentrate on our core expertise and keep the emphasis firmly on our craftsmanship, I feel we can allow ourselves to feel optimistic about the future. Ultimately, this is determined to a certain degree by the political framework: business-friendly policies that create opportunities for business-owners rather than regulations which hold them back are indispensable here. 

The interview was conducted by Peter Schneider 

© Zentralverband des Deutschen Bäckerhandwerks e. V.