Low wheat prices don’t reflect in flour — bakers

04/24/2009

Local bakers said bread prices will stabilize or even be reduced if millers will further reflect the international wheat prices, which have already reached the 2007 level of $300 per metric ton, on their products.

The Philippine Federation of Bakers Association Inc. (PFBAI) has even asked the assistance of the Department of Trade and Industry in urging flour millers to bring down the price of flour to the 2007 level, considering the significant decline in international wheat prices and freight cost as well.

“If flour millers decrease their flour prices to the 2007 level of P660/sack, which is in line with the price of wheat, bakers will surely pass on the reduction to the consumers. We are hopeful that millers will be able to implement this price reduction in a few weeks,” Simplicio Umali of the Philippine Baking Industry Group Inc. said.

He added that the reduction will help the ailing baking industry to stimulate the demand for bread products.

PFBAI president Chito Chavez appealed major flour millers to “bring down the price of flour for us to be able to stimulate bread demand or else small bakers will be wiped out.”

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