Higher bread prices take effect today

by Bernie Cahiles-Magkilat, MB

Big bakers will start implementing higher prices on Pinoy Tasty and Pinoy Pandesal today, Valentine’s Day, almost a week after the Department of Trade Industry announced price adjustments in the suggested retail price (SRP) on basic necessities and prime commodities (BNPCs).

Jerry Lao, president of the Philippine Baking Industry Group (PhilBaking), said the 450-gram Pinoy Tasty will have a new price tag of P40.50 with P2 price hike per loaf and the ten-piece pack Pinoy Pandesal at P38.50 with P1.50 increase starting today. 

“Effective day of increase is tomorrow,” Lao said, as he explained that the implementation schedule will depend on the cut off date of respective supermarkets that their group members are serving.

Lao, however, said that the price increase granted was only half of the amount they requested since last year with the DTI. This means, he said, they will still pursue the balance of their petition.

“We are going to appeal after the implementation of the first tranche, we will ask them (DTI) when is the next balance,” he said.

At present, he said, bakers are supposed to get P8 price adjustment because the price of flour already went up to P1,050 per bag of 25-kilogram wheat flour from only P800 before August last year. The price of flour went up due to several factors including supply chain disruption due to the Russian war in Ukraine and the depreciation of the peso. The rule of thumb is that for every P40 increase in flour prices is a corresponding P1 price hike in loaf bread.

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But PhilBaking members sought for a P6 price adjustment for Pinoy Tasty but got P2. They also sought for P3 price increase for Pinoy Pandesal but got only half of what they wanted based on the SRP released by DTI on Feb. 8. The price increase they sought did not yet include higher cost of fuel, sugar, and other ingredients, Lao pointed out.

Demand this year is also very uncertain although the full reopening of classes is expected to boost sales.

Sales in December last year was dismal compared to the previous 2021 as more people went home to the provinces and there was a marked decline in foot traffic at the supermarkets last Christmas season. January and February were also quiet, he said.

Personally though, his company’s Tiffany brand was able to post a 10 percent increase in sales last year.

“Hopefully, sales for the rest of the year would perk up with the opening of classes,” Lao said.

Meantime, the Filipino Chinese Bakery Association, Inc. (FCBAI) President Gerik Chua and past President Henry Ah and other officers announced the much-awaited “Bakery Fair 2023” on March 2, 3 and 4, 2023 at the World Trade Center on hopes to fully revive the baking industry in the country. 

“This is a comeback fair,” said Chua noting that the Bakery Fair 2023 is the first after four years and after the pandemic. “This signals the revival of the Philippine baking industry despite inflation and other challenges,” said Chua.

The “Bakery Fair” is the biennial (once every two years) civic project of the FCBAI to promote and uplift the Philippines bakery industry and support socio-economic development.

The biggest and most star-studded Philippine bakery event, Bakery Fair 2023 has 136 exhibitors covering 10,000 square meters or one hectare of the World Trade Center. There shall also be many educational technical seminars by different top bakery industry-related companies, bakers, chefs and experts.

One of the exciting events of Bakery Fair 2023 is the “FCBAI Bakers Cup Wedding Cake Competition 2023”, which is a comeback after the pandemic and it shall showcase exciting and awesome wedding cake creations of “Kasalang Pinoy” theme. Be mesmerized with the bakers’ amazing creations using fondant, royal icing, gum paste and many more. This is one of the most awaited events of the year, wherein the first prize winner will have a chance to receive a prize worth P80,000 pesos. Winners shall be announced on March 2 and the wedding cakes of finalists shall be on exhibit throughout Bakery Fair 2023.

Another important event in Bakery Fair 2023 is “Angel Cup 2023”. The Angel Cup-Bread Display Competition highlights the making of Bread Showpiece, Artisan Bread, Healthy Bread and Sweet Dough with dough filling.