2023-10-27 14:59:36
This Friday, October 27, The price of bread increased by 25% in some bakeries who do not have access to subsidized flour. As indicated from the Merl Bakers Centeror, the rise was motivated by the increase in inputs, especially flour, and raw material shortage for its production, with which it is already being sold in values of $1,100 per kilo.
At the end of September the Commerce secretary had agreed with the Argentine Federation of the Bread and Related Industry (FAIPA) and the Chamber of Industrial Bakers of the Autonomous City of Buenos Aires (CIPC) a price for bread under the Fair Prices Programme. As of this agreement, a kilo of French bread had a maximum value of $680 until September 30 and $715 during the month of October.
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But some bakeries have not been able to sustain these prices, among other things because subsidized flour is not available. This was confirmed to the NA agency, Martin Pinto, holder of the Merlo Bakers Center, who also denounced “atrocious speculation.”
Regarding the recent increase and why it was applied, Pinto explained to NA that “several baking centers in the province of Buenos Aires, We have decided to increase our panade products by 25% today.due to the large increases in flour, its lack and the increases in all the rest of the inputs,” he noted.
Pinto also remarked: “We are suffering from atrocious speculation in the sector.” Likewise, the head of the Merlo Bakers Center added that The bread that can be produced with the subsidized flour has a value of $715, while the rest has to be sold for $1,100.
The price of the bag of flour increased
It is worth remembering that yesterday, Thursday, Resolution 1860/2023 of the Commerce secretaryin which theThe reference prices for wheat and its derived products are already in force. Thus, it made updates to the Argentine Wheat Stabilizing Fund (FETA) with the main objective of protecting the price of bread and farinaceous products most consumed by the population.
The measure updated the reference prices for wheat and its derived products, with a cumulative increase of 77.5% for the first 10 months of 2023. “These figures are well below those reflected by the INDEC for the price of French bread in GBA and the General CPI”.
Hereinfollowingthe reference price of the bag of 000 common flour at the exit of the mill is $2,825.
As officially indicated, the update ordered by the Ministry of Commerce is 8.9%; below the monthly inflation for September measured by the INDEC.
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In addition, the 25kg bag of flour without compensation was $4,959 in September of this year, almost 50% more expensive than the bag of subsidized flour, which in that period cost $2,647.
Inflation, the cause of the increase
As Pinto explained, prices have been flat for around four months, but they show increases in inputs and the impossibility of continuing to take care of the increases.
Another blow to the pocket: the kilo of bread will increase up to 25% from Monday
“We decided to increase 25% because we haven’t touched the price of the product for four months or so.either. We have been absorbing the inflation of all these monthsbut unfortunately with this surge in flour and all the raw materials that has been happening week following week, we can’t absorb it anymore“said the person in charge of a bakery located in the Buenos Aires suburbs.
Regarding flour prices, Pinto indicated that It was paid between $4,800/$4,900 y hToday it is worth from $6,500 to $7,000.
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