Brace Yourself – the Cost of Bread is Going Up!

It is inevitable; the cost of bread is going up. We have been reporting that some stores and bakers have been selling a sixteen-ounce pack of sliced bread at two dollars and fifty cents, retail and wholesale. This is exacerbated by the fact that the cost of living is at an all-time high and internationally, it is reported that for the Latin American region, spiking world prices will see the costs of commodities going up by seventy-five percent by the end of the year. In speaking with stakeholders, such as La Popular Bakery, they contend that the price has increased due to the rising acquisition costs of raw materials used to make bread. The cost of flour is also expected to increase in the coming weeks. Today, when the media caught up with Minister Jose Abelardo Mai, he was asked about the situation. Minister Mai says that bread is a regulated commodity, so it is illegal for the bakers to increase the cost by seventy-five cents. But the bakers have made a strong case and the cost will have to go up, but not that high.

Jose Abelardo Mai

Jose Abelardo Mai, Minister of Agriculture, Food Security & Enterprise

“Controlled commodity, it is price controlled. It has been like that from 2008. The bakers submitted to us that they want to increase the price of bread by seventy-five cents wholesale and retail. They did provide enough evidence to show that the cost of baking the bread has gone up to one dollar and eighty-one cents a pound. So they are selling at one-seventy-five so they are selling below. So we looked at it, we analyzed it, we prepared a cabinet paper and presented to cabinet. Cabinet has not said no, but they are saying that we need to do further research and further engage the bakers because bread is a daily thing. We have asked our director of controlled supplies to look at the structure of the price that they have and to see where it is possible to minimize the increase. We are not saying that they will not get an increase. We are saying let us study carefully any increase in any commodity right now will put additional suffering on our people.”

Reporter

“In a month’s time, will we be paying for bread?”

Jose Abelardo Mai

“[Umm] I suspect there will be an increase; not necessarily what the bakers are asking. And I suspect that there will be more people coming for increases in commodity.”