Economy

Bread prices increase by 30% as N350 bread now sells N550

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Weeks after announcing an impending increase in the cost of bread, biscuits and bakeries by 30 percent, the Association of Master Bakers and Caterers of Nigeria (AMBCN) has finally effected the price increase.

According to a report by Nigerian Tribune, a family loaf of bread which used to sell for N350 in Federal Capital Territory (FCT), Abuja now sells for N550.

Prices on other loaves have also been increased by 30% of their original price.

When the AMBCN announced a 30% increase in May, they cited higher cost of production as the reason behind the increase.

According to the association, the price increase was necessitated by the sudden increase in the costs of production as well as prices of sugar, butter, yeast and flour and other baking materials.

“In the last six months, one truck of flour that we used to buy at less than N6m is now N9m,” the association said in a statement released on the day of the meeting.

Corroborating the complaints of AMBCN, the Managing Director of Foods and Foods, makers of Bon bread, Maria Cardillo, revealed that the cost of producing bread was becoming unsustainable in the country because of the instability of prices of raw materials.

She noted that due to increasing cost in production, the company reviewed the price of its family loaf “last year from N350 to N400. But we realized that in less than one year that margin has been greatly eroded. And don’t forget in all of this, there’s increase in power and fuel cost, and all of this will go into the final product.

“So now we actually have no choice. It’s either we shut our doors or we increase the bread by 30 per cent as it has been on the news recently, we really don’t have a choice, but we have been holding meetings and trying to see what we can do because we are also parents and we have children and families,” she said to Nigerian Tribune.

“We know what is going on in the economy of the country, and we are trying to see how the 30 per cent increase will affect people, how many people can afford this move from N400 to N500.

“But I will not be surprised if this trend continues when the flour mills keep increasing the flour price. And they continue to increase sugar price, bread may move from N500 to N600 and ahead.”

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