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Home Business

Bread High production cost forces bakeries to shut down; bread price hikes beckon again

by Ahmed Kabore
April 10, 2022
in Business, Top Story
Reading Time: 2 mins read
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The Ashanti Flour Users Association is complaining about the high cost of bread production which, the group says will force them to increase the price of bread again soon.

The group’s president, Comfort Akotua, who has been in the bakery business for 35 years, said she stopped production some two months ago due to the rising cost involved.

“Many bread bakers have stopped operating. For instance, many of those around Anloga Junction is no more in operation. This is because we have been incurring losses. The saddest aspect is that the retailers who engage in street hawking keep complaining that it is expensive.

We are always praying for the situation to improve. Although I am quite old, I can still work, but I cannot work because I have been making losses. How do I take care of my needs and other utility bills if I am not working?” she complained in an interview with Accra-based Citi FM.

In good company with Comfort Akotua is Mavis Kwegyir Stiles, the Chief Executive Officer of Okyeso Nyame Bakery at Bantama.

She said: “The high cost of flour has affected production. Last year, we used to buy 100 bags of flour for GH¢16,000 but now it costs us GH¢34,000 to get that. The cost of sugar is also up. One bag of sugar sells at GH¢400 whereas it used to sell at GH¢280 last year.

Prices of all other ingredients have gone up. We now sell bread for GH¢5 and the retailers sell at GH¢6 Ghana cedis. However, the consumers are complaining that it is expensive and that we should reduce it. We can’t reduce it because the production cost has gone up”.

Akotua warned that so long as production cost rises, the price of a loaf of bread will also keep rising: “We have now increased the price of bread. The ones that used to sell at GH¢2, have been increased to GH¢3.

By next week, we will increase it again to GH¢4. We will also get some that would be sold at GH¢6. We may further increase the prices. For now, we will always increase it anytime the cost of flour and other ingredients go up”. 

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