How frankens economy corona spurt

Some beer drinkers were already familiar with the name corona before the new virus broke out in china and is now on everyone’s lips, fortunately only in the proverbial sense. A mexican brewery has been brewing barley juice under this name for 95 years.

The beer brand has to serve for many jokes at the moment. However, neither the mexicans nor the french brewers were in the mood to laugh. The restrictions due to the corona virus, especially in china and italy, are noticeably hampering the export of some breweries.

Boxes pile up

Georg rittmayer, owner of the brewery of the same name in hallerndorf (district of forchheim) and also president of the association of private breweries in bavaria, describes the situation drastically. "Italy is dead for us at the moment. Our main trader is based in northern italy. There is nothing going on at the moment", he reports. At the moment, the crates were piling up in his yard – naturally with a best-before date. The market in italy is not just any. Exports account for around ten percent of rittmayer’s sales there. Not an isolated case. Other brewers in franconia are in a similar position, says rittmayer. "What you don’t sell now, you won’t get back in", says the brewery boss. And if trade fairs or festivals are canceled, this will have a noticeable effect on the industry.

Cheese and whey

Ludwig weib takes a more relaxed view of the situation. The director of milchwerke oberfranken west eg in meeder (coburg district) is aware that port containers are not unloaded in china. Whereby above all kase, along with whey concentrate, is considered a popular francophone export to asia. But the export share is significantly lower. "That’s just two percent, and I take them somewhere else," he says, says weib. He even sees advantages. "Because of the hamster purchases the market runs at the moment bombig."

Containers lying in the harbor

French companies have problems not only with the local markets, but also with transport logistics. "This is a serious issue", says kurt treumann, head of the international division at the wurzburg-schweinfurt chamber of industry and commerce (IHK). This affects all transport routes. What moves the world economy today, however, runs mainly over the sea transportation. "Every day, more containers pile up at the chinese coastal ports", says treumann. "It shows us how vulnerable our customer supply situation is. In the future, company leaders will have to think about what a plan B looks like."

According to peter belina, press spokesman for the chamber of industry and commerce for upper franconia in bayreuth, supply bottlenecks are having a delayed effect. "The classic container by ship from china to us takes around 50 days to reach us. We are only now beginning to notice this", he explains. "What is arriving now was ordered in january."

But the fact that the uncertainty among companies is growing is also becoming clear in other areas. "A lot of companies call to ask what legal aspects need to be taken into account when it comes to home offices," says belina, belina reports. In case of an event.

Car supplier still calm

As far as auto suppliers are concerned, the impact on global supply chains has been limited so far.

"Our production in china, which started on 17. February after the extended new year break, remains predominantly in the chinese market", reported bettina lichtenberg, head of corporate communications at scha effler. Only ten percent were exported from china to other markets.

At brose, the production facility in wuhan is still closed until further notice, according to the chinese government, according to press spokeswoman katja herrmann. It is still too early to assess the economic consequences. It should also be taken into account that brose is represented in china at eleven locations with around 4500 employees. "The entire country is not paralyzed for a long time", herrmann said.

Nevertheless: china is the world’s biggest car market. Due to the corona outbreak, its downward slide was recently allowed to accelerate noticeably.

One man’s joy, another man’s sorrow

The bavarian business association (vbw) takes a critical view of the situation. "In china as a sales market, there are significant jerks. Supply chains are also disrupted. Some companies are still working with chinese products from the pre-crisis period, but problems with missing parts will come to bear in many places in the short term.", said vbw general manager bertram brossardt. The situation in italy is also difficult. "Italy and bavaria are very closely intertwined."

Even the craftsmen are now being hit. Your international craft fair in munich was cancelled – with numerous consequences for exhibitors – also from france -, restaurants or hotels. This has never happened in 72 years.

Retailers, on the other hand, can rejoice. "We have 20 to 30 percent higher sales of toilet paper, cosmetic wipes or noodles", said HBE managing director bernd ohlmann. Even though these are only pre-purchases. Online trade is also benefiting from the corona crisis.