Bakers raising price of Maltese loaf to make ends meet

Bakers have gradually started increasing the price of the Maltese loaf as they struggle to meet rising production costs and dropping demand.

The president of the Bakers' Cooperative, Raymond Briffa said he was informed that a few bakers had upped their prices to cover costs that shot up after the government withdrew its subsidy on flour on January1.

Bakers have also had to cope with tougher competition from imported bread which, although more expensive than the traditional loaf, often finds its place in the shopping basket.

A few bakers contacted yesterday said that although they had not yet raised prices, they felt it would be the only way forward unless the government helped out.

"Demand is always dropping... Besides, the long hours we work - waking up early and working late, especially on weekends - are not worth it any more... Unless the government helps out, we'll just have to increase the price," one baker said.

A woman who works in a popular grocer said that, over the years, imported bread gained popularity as people enjoyed experimenting with different buns and baguettes, which can cost up to €0.80 compared to a large Maltese loaf that sells at €0.54.

Another shop assistant said products were constantly increasing in price. "However, people only protest when the price of milk or bread rises, even if it's by one cent," she said.

Mr Briffa insisted that increasing the price of bread was always a last resort. The cooperative could not impose prices on bakers once the market was liberalised.

"Now, bread has become like all other products. Just like a banana or an apple, the price may vary from one shop to another," he explained.

According to Julian Sammut, a keen supporter of local food, bakers must not be afraid to increase prices as long as they maintained the same quality.

"Crisp and crusty on the outside and light and aerated within, a good ħobża remains almost as fresh and sometimes tastier the next day... What the cooperative must do is organise their marketing and distribution," he said.

Last May, the government announced that, as from January 1, bread would be liberalised and that it would end the €6.40 subsidy on each bag of flour.

Following the steep rise in the international prices of oil and wheat, the price of bread went up by €0.07 to €0.54 for the large loaf and by €0.04 to €0.34 for the small loaf in May.

Mr Briffa explained that a bag of flour cost €22.62 and served to make about 100 loafs. It was calculated that to make up for the lost subsidies the price would have to rise by about €0.06.

In an attempt to cut costs, the cooperative last month met a Finance Ministry representative and requested cheaper electricity rates by night and assistance to look into the possibility of running ovens on gas, among other things.

Mr Briffa said the government told bakers they were not eligible for cheaper electricity rates. Since the price of fuel (that had peaked last year) was dropping they decided that switching to gas was not a viable solution.

In turn, the government helped through an advertising campaign about the health benefits of Maltese bread, he said.

When asked about the outcome of the meetings with the cooperative, a government spokesman said: "Our position regarding the bakers' issue is that this market is now liberalised and, consequently, the government does not intend to subsidise this sector further".

The spokesman added that the government was giving bakers a subsidy on light heating oil. Mr Briffa confirmed this subsidy (of €2.60 on each bag of flour consumed), adding it was not really linked to the price of bread that was mainly affected by the subsidy on flour.