Saturday, 04 February 2023 03:39

Bakery sector expresses concern over rising raw material prices

Written by Evelyn Alas

The bakery sector of the country indicated that they are still concerned due to the substantial increase in the value of butter and flour, raw materials used in the production of consumer products.

According to bread producers, butter increased by 100%, while flour reported increases of 80%.

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They affirm that they have been experiencing this situation of the increase in the price of raw materials since 2021 due to the post-COVID-19 crisis, then the container crisis and then the effects generated by inflation at world level and the shortage in the international wheat flour market due to the impact of the war between Russia and Ukraine.

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In view of the situation, they request the Central Government to apply measures through which the prices of the products used for the production of bread can be acquired in a more accessible way.

According to data from the Ministerio de Agricultura y Ganadería (MAG), the prices of strong flour at wholesalers of 50 pounds are at a value of US$25 and soft flour at US$24.

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Most bakeries currently sell 4 units of bread for US$0.25, but they fear that due to the economic situation the cost may increase or even that producers may close their businesses, as is the case of 120 bakeries that have closed operations due to the increase in the cost of materials.

 

Translated by: A.M