Bakers in Nigeria have explained that the prices of bread will keep increasing. Data suggests that the galloping inflation that Nigeria is experiencing is, to a significant extent, as a result of wheat prices. The December 2022 consumer price index (CPI) report published by the National Bureau of Statistics (NBS) shows that increased bread costs are a contributing factor to food inflation in Nigeria. The inflation rate in December 2022 according to the CPI and inflation report was 23.75 percent on a year-on-year basis.
This was 6.38 percent higher when it is compared to the rate recorded in December 2021, which was 17.37 percent. On a month-on-month basis, the food inflation rate in December was 1.89 percent, which was 0.49 percent higher when it is compared to the November 2022 rate (1.40 percent). The NBS identified inflation as being caused by the rise in prices of bread and other food items like potatoes, yams, fish, oil, fat, and cereals.
Costs of major ingredients have been increasing since 2022.
Mrs. Okafor, a caterer, told the press that the cost of flour, sugar, and milk for the production of bread has been increasing since 2022. The increase is mainly due to the increase in the cost of importing wheat as a result of the Russia-Ukraine war as well as Nigeria’s foreign exchange challenges. Nigeria is the second largest wheat importer in the world. Because of this, it becomes hard for bakers and even big bakeries to run their businesses effectively without increasing the cost of bread, which is a staple food for families in Nigeria.
She said that her customers have been complaining about the rise in the cost of bread especially the family loaf which costs between N900 or N1000 per loaf. Okafor gave the press a breakdown of the average costs of large quantities of flour, sugar and milk, which are major ingredients needed for bread production. According to her, a 50kg bag of flour costs between N30,000 and N32,000; a 50kg bag of milk costs between N32,000 and N34,000; and a 50kg bag of sugar is N34,000 and N36,000.
Production costs typically determine the burden that bakeries carry.
The General Manager at an Abuja-based FQ Loaf Bakery, Ada Abel, told the press that aside from the rising cost of ingredients, the bakery business carries many other costs. She said that the bakery has multiple products but two are more popular among customers – the Jumbo loaf and the Family loaf. She said that the average unit cost of a Jumbo loaf is N700 and there are over 40 in a batch, which has to be produced mostly using a diesel generator. Meanwhile, the average unit cost of a Family loaf is N650 and there are over 70 per batch.
To mitigate some risks, the bakery adds the cost of only a loaf of bread to each batch. Most times, it is even less than the risks later encountered. There are other risks like loaves going bad in passing through the value chain. These are borne entirely by the business. The bakery buys diesel at N880 per liter. The full production process could take over an hour and has to be run using the diesel generator.
There are other costs which are not factored into the price of bread.
Also, as the loaves pass through the chain of distribution, money is added before the bread gets to the final consumer. Ms. Abel also said that there are other costs that do not factor into the price of bread. She mentioned over 15 levies by the local government council, public health cadet charges, and food handling tests which cost the bakery N5000 per staff and which have to be done every two years. The Public Health Act inspection has to be done every three months and costs N3,500 per staff as well as a N30,000 certificate. She also highlighted the inspection of business premises by officials of the Abuja Municipal Area Council (AMAC), as well as levy increases by the National Agency for Food and Drug Administration and Control (NAFDAC).
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Bread prices will keep rising-bakers. – NBS stats show that increased bread costs contribute to food inflation. Express your point of view.
It is unfortunate bread price keeps increasing. Our flours are too expensive and farmers are not planting enough. The government should help the farmers in this regard.
Bakers in Nigeria have stated that the cost of bread will continue to rise, which is a very unfortunate development considering how quickly the business is expanding.
The skyrocketing cost of living that Nigeria is currently confronting is, to a considerable measure, the result of
This rise is mostly attributable to the fact that the price of importing wheat has gone up as a direct consequence of the conflict between Russia and Ukraine, in addition to the difficulties that Nigeria is having with its currency exchange rates.
It is estimated that Nigeria is the world’s second largest importer of wheat. Because of this, it is becoming increasingly difficult for bakers and even large bakeries to successfully manage their companies without also raising the price of bread.
Customers have been vocal about their dissatisfaction with the rapid increase in the price of bread, particularly the family loaf.
As a precautionary measure, the bakery includes the cost of just one loaf of bread in the total price of each batch. In the vast majority of cases, it is even lower than the hazards that may be experienced later.
The entire production process could take more than an hour to complete and must be powered by the diesel generator in order to be successful.
I don’t understand where we are heading in this country. Everything keeps increase including food we can’t do without. Cost of living in this country is too choking.
To go to school is expensive, how much more to bread? The government should help us. We are tired, their reign has failed us badly.
Everything just continue to rise baker says bread price will continue to rise when will we start to enjoy because this rise of food people are suffering alot
NBS stats show that increased bread costs contribute to food inflation. We are go to survive every hardship that that APC government has cause us. Election is at corner, vote wisely
One of the most common good eaten in Nigeria is now a luxury with the constant increase in things used for producing it.
The cost of importing wheat has increased as a result of the Russia-Ukraine conflict, and Nigeria’s foreign exchange problems have also contributed to the rise. Nigeria is the world’s second-largest importer of wheat.
The cost of importing wheat has increased as a direct result of the crisis between Russia and Ukraine, and Nigeria is also experiencing issues with its currency exchange rates, which together account for the majority of this increase.
It is well with this country. Inflation rate is very high in the country. It has affect the price of everything including our common food: bread. It is away from the reach of a common man
More things added to the inflation of the country including bread. The cost of all items in the make has contributed to the inflation of the country. It is well
Nigerian bakers said bread prices would rise, which is disappointing given the fast growth of the company.
According to some estimates, Nigeria is the second-largest wheat importer worldwide. Since this is the case, it’s getting harder for bakers and even major bakeries to run their businesses profitably without boosting bread prices.
The value of everything just keeps going up. According to the baker, the price of bread will continue to go up. When will we finally be able to stop worrying about money for food and start enjoying ourselves?