Matthew Xuereb
Bakers planning to import own fuel to minimise costs
Bakers no longer have the safety net of subsidies from today but increasing the price of bread would mean losing sales because of imported products. Photo: Chris Sant Fournier
Bakers plan to import their own fuel to minimise costs, as they brace themselves to survive without government subsidies as from today.
The move is the latest drive to cut costs and fend off increasing competition from imported bread. The Bakers' Cooperative estimates that sales by members dropped by between 10 and 15 per cent since the price of bread was last increased in May.
Following the steep increase in the international prices of oil and wheat, the price of bread had gone by up seven euro cents to 54c for the large Maltese loaf and by four euro cents to 34c for the small loaf.
Consumers have clearly started turning to foreign products and the Maltese bakers have no option but to reduce their prices even as subsidies are removed.
Cooperative president Raymond Briffa says bakers are reluctant to raise prices again but, given the prevailing scenario, they are left with little option unless they find alternatives.
He acknowledges that the price of fuel decreased but notes that the drop was not enough because their costs to produce traditional Maltese bread were still astronomical. The bakers want to see the cost of raw materials they use to go down. At the current rate, in fact, Mr Briffa estimates that bakers would need to increase prices by 3c5 across the board to cope.
Soon, the cooperative will be meeting the Finance Minister to review the situation and see how bakers fare without the subsidies. But it is clear that a lot of hope is pegged on their idea to import their own fuel. Mr Briffa says he hopes that they would not be faced with a bureaucratic conundrum when they apply to be granted a licence.
Asked about the drop in sales, Mr Briffa complained that imported bread is of inferior quality and, though more expensive, was still proving to be more popular than the traditional Maltese bread. He explains that while the wheat used by Maltese bakers is of the best quality and high in protein that used in imported bread is not, even though the cost of the latter is much higher. Unfortunately, he adds, consumers seem to prefer paying €0.70 for a baguette from the supermarket when they can get a better quality product from bakers for much less.
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Joe Galea
Jan 2nd 2009, 07:56
The traditional bread crisis....another reward to GonziPN's great decisions.
What's next?
wally vella-zarb
Jan 1st 2009, 16:14
Why do we still need to say 'seven euro cents' or 'four euro cents' when we have been in the eurozone for a year? If we are talking about our national currency it ought to be sufficient to say 'seven cents' or whatever the amount may be. There is no need to specify that we are referring to the hundredth part of our currency unit, i.e. the Euro: it ought to be obvious to the listener or the reader.
v.pulis
Jan 1st 2009, 10:13
It would be a real shame and a mini disaster for Malta if the traditional maltese bread is discontinued because of foreign competition. The smell of freshly baked Maltese bread is one of the nicest smells I can think of not to say anything about the delicious taste.I am not the only one saying this as many tourists go crazy over maltese bread. the most recent advocates for the local bread were none other than the group Duran Duran! German friends of mine wanted to know if they could bake their own when they are back in germany. Now germany can boast of hundreds of different kinds of bread yet they prefer maltese. This goes to show our tendency to jettison our own products in preference to foreign albeit inferior ones. the death of the maltese hobza would be akin to the demise of part of our heritage
A Calleja
Jan 1st 2009, 09:19
It is not surprising that sales dropped last time there was a price increase. Due to the heavy subsidies Maltese bread was cheap and as a result there was a lot of "waste". Traditionally nothing was wasted since left overs were used to make puddings, feed animals or left in a special bag to be picked by the refuse collectors and turned into swill for pigs. In more recent years left overs really became waste since most of these 'recycling' practices were stopped for hygiene reasons. The decrease in subsidies automatically resulted in better bread 'management' and reduced waste.
The Maltese bread species is in danger of extinction. A lot of bakeries are using inferior materials and processes that result in a 'look-alike' loaf that tastes bland and for which Maltese bread lovers are not ready to pay a premium.
The bakers of traditional bread should look carefully at what THEY are doing to kill their business. As long as they produce Maltese bread to the traditional recipe they will sell it even at a slight premium but characterless fakes are in direct competition with products from all European bakeries! Let us save the Maltese HOBZA!!