Bread price ’ll increase-Bakers
By Francis Akinnodi
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Bakers and flour millers have said that increasing flour prices, fueled by Nigeria’s dependence on imported wheat, high exchange rates, transportation costs, and energy prices are forcing increment in bread price.
According to a baker in Akure, Adeyemo Adedayo, “despite companies in the sector implementing cost-cutting strategies, they report significant increases in revenue and profit, indicating consumers may be paying more than the actual rise in production costs” Flour prices have escalated as Nigeria produces less than one percent of its wheat needs, while local consumption has increased by over 40% in the last decade.”
Additionally, he said challenges like foreign exchange scarcity, insecurity in wheat-producing regions, and poor infrastructure exacerbate the situation.
Meanwhile, President of Premium Bread makers Association of Nigeria (PBAN), Mr. Emmanuel Onuorah said: “To be very honest, businesses in Nigeria are facing various forms of challenges.
“All I can say is that the incessant increase in the price of flour, which makes up about 60% of our cost is not good for the bakery industry in Nigeria.
“The challenges facing bakers are so numerous; the price of our ingredients like flour, sugar, calcium Propotionate (preservative), margarine, yeast, bread softener, ascorbic acid etc keeps increasing at an alarming rate.
“Multiple taxation by federal, state and local governments is stifling and almost crippling the bread-making business.”
Also, the National Union of Food Beverage & Tobacco Employees (NUFBTE) has called for government intervention to prevent the industry from collapsing.
Despite the challenges, leading companies like Flour Mills of Nigeria have seen operating profits grow by 61%, driven by high demand and cost optimization strategies.