Baking Materials Cost: Association Expresses Concerns Over Elevated Bread Prices
The Association of Master Bakers and Caterers of Nigeria (AMBCON) voiced apprehensions on Tuesday regarding the escalating expenses of baking materials within Nigeria. The organization highlighted that this issue has grown increasingly troubling for the industry.
Several members of the Association conveyed these concerns during separate interviews with the News Agency of Nigeria (NAN) in Abuja.
Concerns were shared by Ms. Peace Izeduwa, Manager of Nextar Bakery situated in Kubwa, FCT, regarding the repercussions stemming from the escalating costs of essential baking ingredients such as flour, sugar, yeast, and more.
Izeduwa expressed genuine concern that a substantial number of bakeries could potentially face closure due to the escalating production costs. In light of this, she earnestly called upon the government to intervene and address this issue to safeguard the industry's vitality.
She further noted that the recent 15% surge in bread prices, attributed to heightened production expenses, had already adversely impacted businesses within the FCT. This price escalation was a consequence of the removal of fuel subsidies and the unification of the foreign exchange window, both of which significantly affected transportation, commodities, and services.
"Previously, Mix and Bake Flour was priced at N29,500, but it has now risen to N33,750, and the same trend applies to other essential raw materials," added Izeduwa. She highlighted the challenge that bakery owners encounter in adjusting product prices to match the rapid increases in raw material costs set by manufacturers.
She noted that bakers are significantly discontented with the remarkable surge in prices, which occurred less than a month ago when there was a 15% increase due to the escalating costs of raw materials.
It's worth mentioning that on July 24, AMBCON had officially declared a 15% hike in bread prices, as endorsed by the National Executive Council (NEC) of the association.
Mansur Umar, the National President, and Jude Okafor, the National Secretary of AMBCON, jointly conveyed that the decision to implement this resolution was a direct response to the prevailing economic conditions in the country. These circumstances have adversely influenced the production costs of bakers.
Ishaq Abdulrahman, the Chairman of FCT Master Bakers, issued an earnest appeal to bakers across the nation, urging them not to surrender but to exhibit determination and perseverance to sustain their businesses.
He stated, "Many of our fellow members are grappling with dwindling hope and confidence. We earnestly implore the government to give due consideration to our sector, as it stands as one of the foremost providers of employment."
Uche Ubani, a practicing baker, highlighted that as of August 13, the cost of Prime Flour from the supplier amounted to N38,500, and distributors further added their own margin. Consequently, a bag of Prime Flour in the FCT could potentially range between N39,000 and N40,000. At this juncture, Ubani underscored the urgency for governmental assistance to ensure the viability of their business operations.
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