In spite of its poor quality bread, the Premium Bread Makers Association of Nigeria is set to increase the price of the product.
Currently, a loaf of bread containing 20 and 25 slices costs N250 and N300 respectively, while the jumbo size (not sliced) sells for N450 or N500.
The president of the association, Mr. Jemide Tosan, explained at a press conference held in Lagos on Monday that the prices of baking ingredients had gone up, hence the move to increase the price of bread.
“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.
He said whereas the prices of flour, sugar and other baking ingredients had increased considerably in the past three years, there had been no corresponding increase in the prices of premium bread.
He said between 2015 and 2018, the price of flour had increased from N6, 500 to N11, 500 per 50 kilogram bag, while sugar had seen 77 per cent rise in price in the same period, with salt, margarine, yeast and preservatives recording 84 per cent, 67 per cent, 112 per cent, 45 per cent and 137 per cent increases, respectively.
Besides, Tosan said the price of diesel, had gone up by 57 per cent, while the price of improvers used in enhancing the quality of bread had risen by 160 per cent during the period.
He however regretted that the price of bread had only gone up by 11 per cent 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.
“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,” he said.