Higher tax on Turkish flour will not affect Cebu bakers

CEBU, Philippines - While prices of bread products, biscuits and noodles are expected to increase in the coming months due to higher tariff on imported Turkish flour, Cebu consumers need not worry since local bakery owners utilize local flour which was also supported by the trade department of the province.

In an interview with The FREEMAN, Cebu Bakery Association president Elizabeth Go confirmed that prices of bread sold by local bakery owners still remain stable since they use local flour instead of Turkish flour due to quality.

As a matter of fact, she added, they use other types of flours that are imported from other countries particularly the Australian flour which is found better than Turkish flour.

She said that some bakers usually use Australian flour for pandesal which is considered to be the most affordable bread product in the Philippines.

A 25-kilogram bag of Australian flour is priced at P600 to P700 which is cheaper than local flour but a little expensive than Turkish flour.

She said that it is expected that the quality and weight of the bread will be affected if the prices of the ingredients also increase.

Go explained that if there will be a price hike for flours, it is normal that bakers will either decrease the weight of the dough or minimize the amount of sugar to make sure prices of bread stay the same.

However, she noted that bakeries in remote areas usually do not implement price increase taking consideration to its market which is different from those in urban areas.

She further admitted that bakery owners are also hesitant to increase their prices since it could also mean lower sales for their businesses.

“Stable ang prices sa atong pan for now. They don’t have to worry,” she said.

A piece of pandesal is usually sold at P2 or P5 and is even priced at P1 in remote areas. A P5-pandesal weighs about 40 to 50 grams, a P2-pandesal weighs from 30 to 35 grams and a P1-pandesal weighs up to 15 grams.

A piece of king roll, elorde and corned bread is sold at an average of P5. According to Go, P5 is the most famous price for the common types of bread. Ensaymada, on the other hand, is either sold at P5 or at P10.

Go said that price hike for bread products are usually felt in October and the rest of the months for the holiday season. She said that it is also the time when prices of ingredients such as flour, sugar, oil and margarine increase.

The Cebu Bakery Association has 70 active members in Cebu City.

Department of Trade and Industry Provincial Office Consumer Welfare and Business Regulation Division chief Zaide Bation supported the statements of Go, adding that there has been no price movement as of July 12.

Bation said that Cebu bakers prefer to use local flour that is high in protein unlike the Turkish flour which is normally used in dried miki and lumpia wrapper.

She added that prices of Turkish flour range from P620 to P650 while a bag of local flour is priced from P860 to P880 for 25 kilograms.

In earlier reports, prices of bread products along with biscuits and noodles are expected to increase up to 15 percent by September if the Department of Agriculture will pursue to implement a higher tariff on imported Turkish flour.

According to the Filipino-Chinese Bakery Association Inc., flour represents more than 50 percent of the bread production cost which will eventually translate to higher prices of bread if there will be a price hike on the former.

The Philippine Association of Flour Millers, on the other hand, said that the dumping prices of Turkish flour exportation in the country could negatively affect the flour milling industry in the country since it results to unfair trade. /JOB (FREEMAN)