Mr. Frank says this line when they are all fighting.
He is saying that they don't need the Nazis to destroy them. They are destroying themselves by fighting. In this scene, they were fighting over food, which was certainly important -- however, Mr. Frank is saying that the good of all must be considered before individual needs.
Mr. Frank is saying that in order to survive, some sacrifice must be made, and the fighting must be stopped.
The opening chapter of the book Frindle focuses on introducing us to the main character Nick Allen, an imaginative boy who likes to brighten up his school by figuring out unique and unusual ideas, an example would be that in 3rd grade, he turned the classroom into a tropical island by making paper palm trees and having everyone wear beach clothes.