MANILA, Philippines - Bread sales in the country are expected to increase by six to seven percent this year due to higher demand.
Simplicio Umali Jr., president and general manager of Gardenia Bakeries (Philippines) Inc., told reporters that sales of bread could grow by six to seven percent this year amid improving consumption.
“Consumption is good and I think we can see a little bit of growth compared to last year,†he said.
Industry sales, he noted, grew by about 8 percent last year.
He said year-to-date sales of the industry have risen by 4 to 5 percent this year and sales in the second half are expected to grow at an even faster pace with demand likely to increase further as classes open in June.
“It is natural to see an increase in demand because of the school opening,†he said.
Even as demand rises with the students’ return to school, prices are expected to remain stable.
Umali said most bakers have not adjusted their prices since the start of the year as flour prices have been low.
The Department of Trade and Industry’s price monitoring report for the week of May 20 to 24 showed that the price of 450-gram loaf bread and 250-gram pan de sal remained at P37.50 and P22.50, respectively, compared to the previous month.
The same report showed that most brands of hard flour have not changed from last month, except for the King brand that declined to P910 from P920 per bag.
The prevailing price of hard flour ranges from P875 to P930 per bag.
Umali also said that while consumption is seen to improve, the company is not likely to expand by setting up a plant in Mindanao this year, citing low demand from that market.
“We are supplying (bread to) Mindanao from our Cebu plant. We are able to meet demand,†he said.
Should the firm decide to put up a facility in Mindanao, he said it should have a capacity of 50,000 loaves per day, similar to its Cebu plant.
The firm earlier said it is planning to set up a facility in Davao.
Gardenia’s main plant is located in Laguna.