New Telegraph

Battling rising bread production cost

Following the Russian invasion of Ukraine and its consequences on Durum wheat flour importation, the Association of Master Bakers and Caterer of Nigeria (AMBCN) has disclosed that starting from July 13, it would stop bread production nationwide over the unexpected increase in baking materials. TAIWO HASSAN reports

It is a known fact that members of the Association of Master Bakers and Caterer of Nigeria (MBACN) have been enjoying the luxury of frequently changing the price of bread freely without any moral justification for it since COVID-19 lockdown in 2020 till now by always tactically exploring current manufacturing challenges in the country’s economy to justify their price increments. With this frequent price changes in bread, Nigerians have been at the receiving end. Consumers pay for this constant price changes in the price of bread despite the lean purchasing power of many Nigerians.

Invariably, the continuous style of the Association of Master Bakers and Caterer of Nigeria by frequently changing the price of bread has, however, not gone unnoticed, receiving knocks from members of the organised private sector (OPS) who believes the master bakers are not the only association feeling the heat of production challenges in the country over the adverse effects of the ongoing Russia’s aggression against Ukraine. In recent times, MBACN, despite their regular price changes for the commodity, had already reduced the components of baking — quality and quantity. However, AMBCN attributed the development to the increase in price of flour and other baking ingredients since the lockdown of COVID-19, coupled with forex criss and other business environment challenges.

Effects of Ukraine war on Nigeria’s economy

No doubt, the fallout of the Ukraine war has been devastating on many major economies of the world. The current global price of wheat at the international market is $926.75 per tonne. This price hike, it was learnt, resulted from Russian troops’ refusal to allow about 50 ships with Durum wheat at the Ukraine ports meant for Africa, particularly parts of North Africa and the Middle East, to sail out of the Red Sea. In addition, the war multiplier effects have seen crude oil price at the international market hovering above $100 per barrel, causing fundamental disruptions in Nigeria’s macroeconomic situation.

Particularly, the crisis has taken huge toll on manufacturing’s raw materials, agric products and oil and gas importation into the country. Nigeria is already seeing the disruptions of the supply effects of the Russian sanctions and the Ukraine crisis on higher energy cost amidst shortage in petroleum products importation with queues resurfacing nationwide at filling stations. Following the war, the country’s manufacturing sector has been experiencing uncertainty as some firms are finding it difficult to import raw materials for production over higher cost of dollars at the blackmarket.

Master Bakers’ strike threat

However, the Association of Master Bakers and Caterer of Nigeria has given a notice to embark on a nationwide strike due to the the unexpected increase in prices of baking materials. The association disclosed this in a communiqué issued by its national executive council following a meeting of the council held in Abuja, recently.

The bakers threatened in the communique, which was obtained by New Telegraph, that bakers would withdraw their services across the country from July 13, 2022. They stated that the cost of flour, sugar and other materials used in bakery business has skyrocketed beyond the reach of many bakers. A member of the bakers’ association who did not want to be named, told New Telegraph that the smallest bread could go for N1,000 should the bakers continue the production without government intervention. Already, the smallest standard loaf of bread in Nigeria goes for N500, while a bigger loaf costs as high as N1,200. This is against N350 and N750 each cost before the increase in March 2022.

They also stated that efforts to get government’s intervention in the matter had proved abortive as there have not been a positive response from the concerned ministries, departments and agencies of government. The National President, AMBCN Mansur Umar, who signed the communique, stated that the council reviewed the “neglect of the Federal Government in addressing the challenges facing our sector as captured in our letters acknowledged by the Federal Ministry of Industry, Trade and Investment, Federal Ministry of Finance, Central Bank of Nigeria and unproductive intervention of the Secretary to the Government of the Federation. “Increase in prices of bakery materials, especially flour and sugar, having reached unprecedented levels, for example, flour is now between N25,000 and N27,500, per bag, so also other ingredients.

“The National Wheat Cultivation Committee already constituted is yet to be inaugurated after over one year. NAFDAC, SON, NESREA have turned the bakers into money making machine by charging our members outrageous levies, even at this very challenging moment. “Consequently, the NEC in session resolved that all zones, state, local governments and units of our association should commence full mobilisation of our members nationwide to embark on withdrawal of services starting from Wednesday July 13, 2022, for an initial period of two weeks.” They, however, noted that “members should await further directives.” It was learnt that the hike in baking materials was what led to the recent increase in the cost of bread and other items produced from flour.

Last line

The Master Bakers’ threat to down tools come July 13 over increase in prices of baking materials is expected to further cost increase in price of bread in the country and could lead to bread being priced beyond the reach of the common man. Therefore, government’s intervention is needed to nip the proposed strike in its bud.

Read Previous

Inlaks implements fraud mgt solutions for Dashen Banks

Read Next

Fighting insecurity with emerging technologies

Leave a Reply

Your email address will not be published. Required fields are marked *