Claudia Calleja
Bakers raising price of Maltese loaf to make ends meet
Photo: Chris Sant Fournier
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.
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16 Comments
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edward hayman,aquilina
Feb 26th 2009, 11:07
meta jiena it-tifla f- ingliterra ahna hafna hanute tal hobz l-istess Malta, imma hawn issa ghalna huwa difficli insib, ghalhekk l- hobz hawn hu mhux tajjeb, Jekk joghgbok n-nies ta-Malta tiehdu hsieb tal hobz maltija .
john mangion
Feb 26th 2009, 08:12
I LOVE MALTESE BREAD, WHEN IT IS EXPERTLY BAKED. AND I DARE SAY I AM READY TO PAY ANY PRICE FOR IT.
WHAT IS POSITIVE NOWADYS THAT PEOPLE GOT THE CHOICE TO CHOOSE FROM.
ONE CAN BUY ANY OTHER BREAD FOR ANY OTHR PRICE.
SAME GOES WITH CLOTHES- SHOES- DRINKS-FOOD.
Richard Hubbard
Feb 25th 2009, 16:29
I love it, Maltese bread is brilliant my wife and I have been eating it for about 25 years whenever we come to Malta which is once or twice a year in fact we shall be there in 12 days so get baking. I wouuld love to be able to buy bread here is sainsburys or tesco or asda like it. My good lady is a baker for Sainsburys and although we have a great choice of types of bread the Maltese one would go to the top of my to buy list. Our bread here is from about 85c going up to about 1euro 15c per loaf without multiple buy offers, these are only periodic.
Joseph Micallef
Feb 25th 2009, 14:59
Why do they need to raise the price? Don't they alread compensate by reducing the size of bread? What used to be a large loaf is now the size of a small one and the small one is more like a panina! Who do they think they are kidding!!!
John Matthews
Feb 25th 2009, 14:20
Maltese bread, in my opinion, is the best tasting bread that I have ever come across. I have been to many many countries in my lifetime and have never tasted better bread than in Malta. I come to Malta for about one month every year and can't wait to get stuck into the bread, I even take some back to the UK. Not being a baker I don't know the ingredients but most of the rubbish we have in the UK contains preservatives. Perhaps Malta should not only export bread but the bakers that make it to show the British what they are missing.
L..Galea
Feb 25th 2009, 14:19
AFarrugia
And of the proper WEIGHT.
The price of flour has increased because MAltese loaves are made with a very high percentage of hard or American wheat which gives it its particular characteristics.
The problem is that most of the wheat that is grown in the eu is soft wheat, so that we have to import hard wheat from outside the eu.
This means that we have to pay customs duty and levies which are to protect the eu farmers, not Maltese farmers.
So as anyone can see, this is another case of a negative effect of eu membership, this time it is even having a negative effect on OUR particular Maltese bread.
Joe Borg Camilleri
Feb 25th 2009, 13:04
@ wally vella-zarb
Maltese take into consideration price and quality, and also genuine local produce when making their purchases. However with what kind of rationale can you explain that if the demand gets lower (which is normal if the market is open to trade) and the justification for higher price (without improving items such as the product itself, product presentation to consumer, accessibility of product in shops (such as supermarkets), etc?
J Falzon
Feb 25th 2009, 12:42
Fine raise the price. But please can someone ensure we get what we pay for in terms of size and weight ? Sometimes a "large" loaf is pretty hard to distinguish from a "small" one! Oh and by the way I pay 61 cents not 54 cents for a large loaf. Thanks !
wally vella-zarb
Feb 25th 2009, 12:32
It is not a case of 'marketing practices' or of 'getting their house in order'; it is a case of some people's mentality that what is imported must necessarily be better and is therefore worth the price. These are often the same people who reject local produce under the misconception that if something is Maltese it must necessarily be shoddy and overpriced.
Why begrudge the bakers a fair price for their unique produce?
What else can you buy for €0.60? A cappuccino? A soft drink? A bottle of beer?
Ronnie Borg
Feb 25th 2009, 11:49
I really cannot understand someone who claims that demand is dropping and in the same vein claims that a rise in price is necessary. I used to but Maltese bread every day. When prices rose, I cut it down to when I really needed it. If it rises again, it will be off my shopping basket altogether. So if you would like to price yourself out of the market, go ahed.
Joe Borg Camilleri
Feb 25th 2009, 11:28
Rather than blaming their own mediocre marketing practices, bakers do want to punish their own clientèle?
Welcome to Malta !!!!!! Do you want to know beforehand the end result on reaction to such move: more people will buy imported bread. As simple as that !!
GET YOUR HOUSE (or better say FORN) IN ORDER IF YOU WANT TO SURVIVE !!!
Joe Cordina
Feb 25th 2009, 11:19
Maltese loaf for 54cents? I have been paying 64cents for a maltese loaf for the last two or three months
AFarrugia
Feb 25th 2009, 11:14
I have no problem in paying 60c for a hobza.......as long as it is the proper MALTESE hobza...not the look-alike. The government should impose how the maltese bread should be manufactured and rules & regulations set.
Charles Muscat
Feb 25th 2009, 10:59
I have never so much bread wasted in my life. When I visted Malta last the ducks at St Paul's Bay had a larger family with the bread I fed them the visit before. Why all of this? too much waste.
R. Formosa
Feb 25th 2009, 10:45
Did bakers ever consider exporting our famous loaf? We see foreign bread on our islands, so I guess the Maltese bread could go abroad also. People who have been to Malta already know about the bread & most probably like it as most of us (if not all) do.
Maybe some bakers could form a company between themselves and enter this market. Considering that the price of a good loaf of bread in the UK stands at around £0.90, I see an opportunity for the bakers.
M Bonello
Feb 25th 2009, 10:25
Protect the one of the last few jewels of the maltese islands...
its one of the things i miss the most since I live abroad...
And its one of the things i look forward to most when I travel back to the island. Lets don't loose the Maltese Bread