Flour millers put blame on bakers

CEBU, Philippines - While bakers claim that prices of flour have not gone down for years, members of the Philippine Association of Flour Millers said otherwise, stressing that flour millers have actually been reducing prices in the last two years.

“Prices of flour in the last two years have gone down from P900 (per 25-kilogram bag) to P740 (current price). We have been reducing our prices. It is the bakers of bread, specifically branded bread sold in the supermarket, that are not reducing the prices of their products,” PAFMIL executive director Ric Pinca said.

The Department of Trade and Industry’s Bureau of Trade Regulation and Consumer Protection (BTRCP) has filed an administrative complaint versus 11 flour millers for profiteering after investigations proved that they have been overpricing their products by P120 per bag.

DTI later warned the industry that they will also be charged of hoarding supply after bakers reported that flour millers have stopped the deliveries resulting in a shortage of supply.

PAFMIL’s Pinca told The Freeman in a phone interview that the organization will continue to defend their stand with the price coordinating council of the DTI. This, despite following DTI’s call for the industry to roll back prices of flour to a range of P630-P680 per 25-kilogram bag. DTI held a meeting yesterday afternoon to coordinate the prices of commodities, including flour.

Meanwhile, he said that one of PAFMIL’s missions is to help small-time or community bakeries become efficient in their operations and grow their businesses like Julie’s chain of community bakeries.

“We want to help them grow because they are losing out to big bakeries. The success of Julie’s, which is Cebu-grown, is a testimony that small bakeries can go big,” Pinca said.

PAFMIL has been conducting training programs on baking, among others, to help community bakeries improve their operations.

PAFMIL currently has seven members. These are Cebu-based General Milling, Aboitiz-owned and Iligan-based Pilmico Foods Inc., RFM Corp., Wellington Flour Mills, Universal Robina Liberty Flour Mills and Philippine Flour Mills. Other flour millers in the country belong to the Chamber of Flour Millers, which has four members in its roster.