Bread price may increase by up to 10pc

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The bread price could increase by up to 10% in the coming period, due to price increases for wheat and flour, and of the labour costs after the minimum wage increase to RON 1,450, said Aurel Popescu, President of Romanian Employers in the milling industry, bakery and flour Products – ROMPAN.

“There are premises that the price of bread increases in the coming period, driven by four factors. First, the price of wheat has increased since March 1 by 7-8% due to higher demand for wheat export. Secondly, there is the increased cost of labour following the increase of the minimum wage to RON 1,450, but also the other wages of employees who were not paid on the minimum wage. We agree with it, because people need to earn better and skilled labour force should remain in the country, but it brings additional costs and we have to include the difference in the price of the finished product. We also need to recognize that energy and fuel and natural gas are more expensive than last year. In percentage, I can say that it is an increase of up to 10% or about RON 0.10 per one loaf,” said the ROMPAN head.

Currently, the price of wheat is RON 780-800 per ton brought to the mill, up by about 10% against the same period last year, while price per ton of flour has increased from RON 850 last year to RON 1,000/ton currently.

In Romania, the bread consumption has declined in recent years, from 98 kg per capita per year to less than 96 kilograms now, but still remains above the European average of 82 kg/capita/year. The domestic milling and bakery companies bring on the market around 180,000 tons of bread monthly.

About 80,000 people work with the milling and bakery industry, more than half of all food industry, where there are about 150,000 employees, of which 40,000 in the companies which are members of ROMPAN. The sector recorded an annual turnover of about EUR 2.5 billion.

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