by Bernie Cahiles-Magkilat, Manila Bulletin
After holding off price hikes on Pinoy Tasty and Pinoy Pandesal last year, bakers are raising prices by as much as P3 per loaf and P1.50 for the pandesal pack.
Johnlu Koa, president of industrial bakers – Philippine Baking Industry Group (PhilBaking), said the price hike is expected to take effect on Feb. 1, 2022. This means prices of Pinoy Pandesal loaf will be at P38 from P35 and Pinoy Pandesal to P23 per pack from P21.50 at present.
Koa said the price hike has become necessary as prices of flour now climbed to P1,000 per 25 kilogram bag from P955 late last year and P690 in August of the same year.
The rule of thumb is that for every P50 increase in prices of flour, there is a corresponding P1 increase in prices of bread. Koa noted the price of flour is more than the P3 increase per loaf.
“This is brought about by increase of consumption in China which starting buying wheat grains while Russia has slowed down their wheat exports because of food security issues and wheat crop failure in America due to harsh winter and drought, or global warming,” said Koa.
Aside from flour, other ingredients also went up including LPG, and sugar which substantially increase prices. Other components such as cooking oil, margarine and fats also went. Yeast, however, did not increase as much.
Koa even said that they could be more adjustments coming because local flour mills already advised them that prices of flour could go beyond P1,000 per bag in the future because prices have already been set globally and forecasted.
“When there is failure of crop then we know prices will go up,” he said stressing there is no “flour cartel” in the domestic market.
