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BayWa closes location in Kronach: farmers in great distress!
BayWa will close its agricultural locations in Kronach by the end of June 2025, which will severely affect agricultural businesses.
BayWa closes location in Kronach: farmers in great distress!
An economic shock is looming for the Kronach region: Germany's largest agricultural trader, BayWa, is planning to close its location in Kronach and other Bavarian cities such as Thiersheim and Velden by the end of June 2025. This measure is part of a comprehensive restructuring concept that envisages a total of 26 site closures by 2027. In Franconia Local media report that the closures will place a heavy burden on many farmers in the region. Small businesses in particular are affected by this, as they often cannot raise the necessary amount for a whole truckload.
The announced closure is not accidental. BayWa suffered a loss of over 93 million euros in the last financial year, which made the measures necessary. In this context, the Bavarian Farmers' Association, represented by Harald Köppel, expresses its deep regret and concern about the consequences of the closures. “The farmers in the area will have to travel longer distances, which means additional costs and time,” says Köppel. In the future, grain collection and fertilizer distribution will be relocated to Burgkunstadt, where a new infrastructure will be created.
Comprehensive renovation concept
As the Farmer's newspaper reports, BayWa plans to close ten additional agricultural trading locations in Bavaria and Baden-Württemberg by the end of 2023. This does not happen as part of regular insolvency proceedings, but rather as part of a StaRUG procedure, which is intended to enable restructuring outside of insolvency proceedings. The goal is to receive the approval of over 95 percent of creditors and thus reshape your own future.
The company is currently examining its network of locations for economic viability. Of a total of 400 locations, 26 were classified as not being economically viable. While most of the affected employees will continue to be employed at other locations, some are obliged to exercise their pension entitlements. The exact number of jobs that will be eliminated will be up to 1,300 by 2027.
An opportunity for new actors
Amid these challenges, however, there is a ray of hope: Nicolas Roth from Roth Land- und Kommunaltechnik GmbH plans to close the gap caused by the BayWa closure. Roth's company, which has been active since April 2023, not only wants to offer agricultural machinery, but also take over the areas that BayWa previously served. “There’s something there!” says Roth, motivated to continue to offer farmers in the region a point of contact.
The fate of BayWa and the associated changes represent a major challenge for agriculture in the region. With fewer points of contact for farmers and a decline in local infrastructure, it will be crucial how quickly new alternatives are found and whether companies like Roths are actually able to provide the necessary service.
It remains to be seen how the situation will develop, but one thing is clear: the closures cast a shadow over the future of agriculture in Kronach and the surrounding area.