Bakers to go into 'generic bread' program to reduce prices

MANILA, Philippines - The price of loaf bread is expected to go down by as much as P18 as bakers announced they will be selling loaf bread for only P37 to P38 in July or August.

In an interview, Philippine Federation of Bakers Association (PFBA) vice president Lucito Chavez said bakers will be selling a generic loaf bread with very basic ingredients sometime in July or August. The bread will still be 600 grams.

“The bread will be ‘generic’ and not branded but the ingredients will be very basic,” Chavez noted. The generic bread will have lesser milk and egg, he said.

Big bakers such as Gardenia and Walter Bread are expected to participate in the ‘generic bread’ program. The small bakers on the other hand, will be able to reduce their price in August.

In a separate interview, Philippine Association of Flour Millers (PAFMIL) executive director Ric M. Pinca said that ex mill price of flour is already at P700 to P710 per bag while the delivered price of flour per bag is at P735.

Given the P735 per bag of flour, Pinca said bakers will be able to sell ordinary loaf bread at P40.

Bakers have already instituted a P1 reduction in bread prices this month after flour prices hit P740 per bag.

Gardenia president Simplicio Umali said that if flour millers agree to sell at P680 per bag, bread prices can further go down by P1.50 per loaf and 75 centavos for every 10 pack pan de sal.

When asked what the ideal price of flour is considering the wheat price in the world market, Umali said flour prices should be at P620 per bag. Once flour prices hit P620, loaf bread prices will go down another P1.50 bringing the price adjustment to a total of P3.50.

“We hope flour prices continue to drop so that we can lower the price of bread and consumers will be able to enjoy the benefits,” Umali said.  

Umali said that in spite of all the possible reduction in flour prices, the P1 pan de sal is still not possible. Flour prices must hit P550 per bag in order for this to happen.