MANILA, Philippines - The price of bread is expected to go down by P1 this week as flour prices have decreased significantly, bakers announced yesterday.
The Philippine Baking Industry Group Inc. (PhilBaking) said the rollback for loaf bread would be P1 while pan de sal prices would be down by 50 centavos per 10-piece pack.
“The reduction in loaf and pan de sal prices is partly due to the temporary lifting of tariff on wheat which resulted in the decline in flour prices,“ Philbaking president Simplicio P. Umali said.
He added that the price of flour went down to around P790-P835 per 5-kilo (kg) sack this month from the previous P840-P850 a sack also due to the decrease of wheat prices in the global market.
“We are hopeful that this decrease in prices will stimulate bread consumption, especially since pan de sal and loaf bread are becoming more affordable,” Umali said.
Aside from the falling costs, he cited the baking industry’s effort to stimulate continuous growth through a campaign dubbed “Yehey Pandesal” launched last month at a bakery fair at the World Trade Center in Pasay City.
The campaign aims to create greater awareness of the health benefits of bread, compared to other food like rice.
Consumers are encouraged to eat more bread products, especially during breakfast, the most important meal of the day.
“Morning is the time of the day when you need energy to help you get through the day and accomplish all your tasks and responsibilities,” Umali said.
Big bread company Uncle George already implemented a price reduction during the first week of the month, while other member firms like Gardenia, Creative Bakers (Walter Breads), Sunmaru (Tiffany) and MLM Foods (Fortune Bakeshop) announced that they would cut their bread prices this week.
Other bakeries are also expected to reduce their prices as soon as they consume their higher priced inventories.
Based on the weekly report of US Wheat Associates, major producer High Protein Wheat has substantially decreased its price to $298 per metric ton, about a third lower than the price a year ago of $895/MT.
The freight cost to bring the wheat from the US to the Philippines has also dropped from $68/MT last year to $27/MT this year. – Ma. Elisa Osorio