By Chinyere Anyanwu [email protected]
Bread, a staple in the daily lives of millions of Nigerians is gradually becoming an unaffordable commodity. In recent times, the once predictable price of this beloved food has become anything but stable. Nigerian bakers, caught in a relentless cycle of rising costs and economic pressures, have been forced to implement a series of price hikes that seem to have no end in sight. The soaring costs of flour, yeast, sugar, energy and other essential inputs are reshaping the baking industry.
A loaf of bread that was priced at N1,500 just three months ago has now risen to N1,800. Similarly, the loaf that sold for N1,800 is currently going for N2,000. The one that was purchased for N2,000 during the same period has increased to N2,300, and the loaf that once cost N800 is now selling for N1,000.
Even Boku bread, a product of Boku Mart, which seems to hold a strong attraction for many consumers due to its quality and relatively pocket-friendly price, has risen from N1,100 a loaf to N1,300 currently. Reacting to the situation, the Sales Representative of Rich O Bakery, Suliat Abdulrahman, who spoke to Daily Sun at the weekend, said going by the unabating increase in the prices of baking ingredients the likelihood of more hikes in the price of bread within a short while seems imminent.
Mr. Kayode Akinidowu, the manager of Dacharis Bakery, who shares the same view with Abdulrahman on further increase in bread price in no distant time, stated that the current price of bread may not last owing to the rate at which flour and other materials used in the baking industry are skyrocketing in price. He said consumers should be prepared to spend more on bread in coming months if costs of baking ingredients keep appreciating.
According to Abdulrahman, “three months ago, we sold a loaf of bread N800 but now we are selling it N900 because of costs of production materials. Three months ago, we bought a 50kg bag of flour for N55,000 but now we are buying it for N72,000. We bought a 50kg bag of sugar for N70,000 three months ago but the last one we bought few days ago was N80,000. 500gms of yeast sold for N20,000 three months ago but it is now selling for N43,000. Every ingredient that goes into baking bread has gone up in price. We used to buy more than 100 bags of flour at a time but today we can hardly buy up to 10 bags.”
She explained that, “with this rate of price increases, we had no choice but to increase the cost of our product because it is from the sale of this product (bread) that we will generate funds for continued production, payment of salaries, power generation, rent and to take care of other necessities in the business.”
Part of the effects of the most recent increase in the price of bread, Abdulrahman said, is the drop in patronage her company is experiencing. She noted that, “our volume of sales has gone down owing to the price increase but it is unavoidable if we have to stay in business. We can’t sell at a loss.”
Calling for government intervention in controlling the prices of baking ingredients, Abdulrahman stressed that, “there should be something government can do to stem the continued rise in prices of these items, especially flour and sugar because the situation is already sending many bakers out of business. A lot of them who cannot sustain production due to these rising costs are closing shop.”
For Mr. Akinidowu, Dacharis Bakery manager, the incessant increase in the prices of baking materials has not only impacted the price of bread but also the sizes.
He noted that despite the increase in the prices of the loaves, his company had to reduce the size of each loaf to ensure that profit margin is not completely eroded. According to him, “the loaf we sold N400 three months ago is now selling for N700; the former N200 loaf is now N300 while the size previously sold for N100 is now N200.”
Bread bakers have not been the only ones affected by the persistent rise in the cost of flour and other baking ingredients.
Mrs. Nkoli Onyemuche, a snacks maker, lamented the impact of increasing prices of baking ingredients including flour, sugar, yeast, butter and baking powder, among others, on her business. She said the situation has necessitated a reduction in the sizes of her snacks such as bun, meat pie, doughnut and fish roll.
For the consumer who is caught in this whirlwind of consistent price hike, the choice of cutting bread off the family menu may or may not be a possible move to consider.
Mr. Chucks Onwuegbu, a consumer whose family does not joke with bread, while reacting to the rising cost of the staple, decried what he described as unfair pricing of the commodity.
He said, “bread used to be a constant feature in my home because no matter what my children eat, they will still demand for bread but with the way it is becoming expensive, making it available for the family regularly is very doubtful.”