Bakers set to increase bread prices over high cost of baking ingredients
The Premium Bread Makers Association of Nigeria gave this warning on Monday at a press briefing in Lagos .
“The challenges we face as a result of the incessant increase in the prices of baking ingredients have rendered most premium bakeries comatose making us to operate at a loss, ” the President of the association , Mr Jemide Tosan , stated .
The association noted that whereas the prices of flour , sugar and other baking ingredients had increased threefold in the past three years, there had been no corresponding increase in the prices of premium bread by the PBAN members .
It said between 2015 and 2018 , the price of flour had increased from N6,500 to N11,500 per 50kg bag , while sugar had seen 77 percent rise in price in the same period , with salt , margarine, yeast and preservatives had recorded 84 percent , 67 percent , 112 percent , 45 percent and 137 per cent increases , respectively .
Also , the price of diesel, which is used to power factory generators on a 24 - hour basis, had gone up by 57 percent , while the price of improvers used in enhancing the quality of bread had risen by 160 percent during the period , the association stated , adding that conversely , the price of bread had only witnessed 11 percent rise within the period .
“ Most of us got loans with double - digit interest rates from financial institutions to fund our bakery projects and are finding it extremely difficult to meet our loan repayment obligations , ” Tosan noted , adding that something had to be done to save the industry from extinction .
He said , “ Given the current situation, most premium bakeries may be forced to embark on a price increase , which will further make bread unaffordable to the common man .
“ As an association , we are totally committed to ensuring that Nigerians have healthy, quality, affordable and harmless bread on their tables .
“ It is in light of this that we appeal to the Federal Government to look into the issues that currently threaten the existence of the premium bakery industry in Nigeria. ”
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