Bakers feel the pinch of costlier bread

Although it is still too early for bakers to realistically calculate whether the new price of Maltese bread has affected sales, some were already telling their cooperative they were already feeling the pinch.

The President of the Bakers' Cooperative, Karmenu Micallef said, when contacted yesterday, that as usually happens when there was an increase in price, sales would go down. Since 2000, bakers have been using 2,000 sacks of flour less a week because of a drop in sales. However, a drastic rise in the cost of flour meant that the price of bread had to go up again as the government refused to subsidise the difference in cost.

The price of a large loaf of bread went up by €0.07 (3c) to €0.54 (23c) this week and that of a small loaf by €0.04 (2c) to €0.34 (15c). The increase was caused by the rise in the cost of flour, which went up by €3.88 (Lm1.67) per sack.

The government is subsidising bakers to the tune of €2.2 million (Lm940,000) but the market will be liberalised come January 1.

"We were really offended at the reaction of some people who expected us to shoulder this drastic increase.

"Considering that our profit is only of €0.01 (3mils) per loaf, working out to €0.70 (30c) per €25.62 (Lm11) worth of raw material, the increase is the least we could expect," Mr Micallef said.

The consumption of Maltese bread had gone down dramatically and it was now only purchased by 40 per cent of the Maltese population. Moreover, imported inferior bread that was much more expensive was proving to be far more popular.

"While the wheat we use is the best quality with a very high amount of protein, that used in imported bread is not, even though the cost of the latter is much higher. Unfortunately, consumers think nothing about paying €0.70 for a baguette from the supermarket when they can get a better quality product from bakers for €0.40.

"What is insulting and hurtful is that we are accused of being thieves when we are working 13 to 14 hours a day, seven days a week, for so little profit. We also have no leave or sick leave."

He said that bakers' conditions of work were so bad that the number was in constant decline. Currently, they number 150 when only three years ago there were 170. In the past 15 days, two bakeries had closed down. Furthermore, the conditions did not attract young people to learn the trade.

Mr Micallef said that rather than increase the cost of Maltese bread, bakers would have preferred the government to subsidise the increase in the cost of flour, especially since this was forecast to drop again in six months' time.

A spokesman for Arthur and Sons Bakery of Birżebbuġa said that any price increase always affected sales one way or another. "If people only have €10 to spend, they cannot spend €11. Although bread is still considered a priority for many people, they are buying only the amount they need and not getting anything extra which they can do without.