Germany and Austria-Hungary have had a good year on the battlefield, effectively knocking Russia out of the war and crippling Italy while Germany repelled enemy attacks on the Western Front. At home though things are more problematic. The British blockade and the wartime decline in agricultural production have led to food shortages. In Germany no one is starving as such, but civilian mortality rates are around a third higher than in peace time. Because food is being funnelled to the army and to workers in war industries, those deemed surplus to the war effort are getting the least to eat and so are vulnerable to illness and malnutrition.
The situation is worse in Austria-Hungary. The railway network is less extensive, making it harder to transport food to where it is needed, and the authorities have been less successful at organising an effective distribution of food. Agricultural Hungary has also restricted the transfer of food to the industrial regions of Austria. Large numbers of people are going hungry and actual starvation is a real threat to the urban poor.
Germany’s U-boat campaign was meant to bring the war to a victorious end but instead it has brought the USA into the war against the Central Powers. The leaders of Germany and Austria-Hungary fear the indefinite continuation of the war will lead to revolution. Emperor Karl of Austria-Hungary wants an immediate peace on whatever terms he can get, but Ludendorff in Germany is determined that any peace must be a victorious one. He is preparing for a spring offensive on the Western Front, gambling that he can knock Britain and France out of the war before the Americans arrive in strength. Then Germany will not have to face another hunger winter.
Food queue, Vienna (1915) (The World of the Habsburgs)