The umbrella body of bakers in Nigeria Thursday said, except the federal government urgently intervenes in the astronomical cost of ingredients, the price of bread, a major staple for households in the country will soon go up.
They said the industry, with size estimated at $621 million and a Compound Annual Growth Rate (CAGR) of 3% within the next year is nearing collapse just as they urge government to create an enabling window for the sector to access forex.
Briefing journalists in Lagos on Thursday, the Premium Breadmakers Association of Nigeria (PBAN) and the Association of Master Bakers and Caterers of Nigeria (AMBCN) lamented that their business have become comatose due to the incessant increase in the price of baking ingredients and their inability to pass on the cost to the Nigerian consumer.
President of PBAN and Managing Director/CEO of Top Crust, Mr. Tosan Jemide said between March and August 2020 following the Covid-19 pandemic outbreak, the price of flour has gone up 5 different time.
He said “the period between March and August 2020, the price of flour which is our major ingredients has increased from N10,500 per 50kg bag to N13,500. Sugar increased from N13,500 per bag went to as high N29,000. Margarine from N5,800 is almost N11,000. A liter of 25 liter can of vegetable oil which was about N13,000 now sell for N16000 while milk which hitherto was N29,000 now goes for N52,000. Preservative (Calcium Propionate) increased from N25,000 to N34,500”
The PBAN President said the role of bread in food security of Nigeria cannot be over emphasized, as it has found its place on the table of every Nigerian household, regardless of social standing, making it the most popular staple the country today.
