Local bakers are poised to appeal to the Department of Trade and Industry (DTI) for another P2 price increase in the price of Pinoy Tasty and Pinoy Pandesal as the industry remains challenged by rising raw material costs.
Simplicio Umali Jr., president and general manager of Gardenia Bakeries Philippines Inc. which is a member of the Philippine Baking Industry Group, said the original request of the bakers was for a P4-increase but only P2 was granted.
Umali said the P4 increase will cover part of the increases in the cost of ingredients especially flour.
Henry Ah, past president of the Filipino-Chinese Bakery Association Inc. (FCBAI) in a press conference announcing the Bakery Fair, said the P2 increase is not enough to cover high cost of flour, sugar and shortening which are the main ingredients used in the bakery industry.
Ang said because of high raw material costs, Pinoy Tasty and Pinoy Pandesal have become less available in groceries and supermarkets.
“Hopefully with the (P2) increase, these products will be back on shelves and fill up the demand of the market. P2 is better than nothing,” Ah said.
According to Ah, FCBAI will live with the P2 increase for now and that other products such as special occasion cakes and baked items can make up for the sales of bakers.
Ah said flour is stable at P1,000 and below per bag but sugar is still high at P4,000 plus per bag.
He said egg supply remains short.
Gerik Chua, FCBAI president, said the industry is hopeful albeit cautious as the group sees demand coming back due to increased mobility and lesser restrictions.
“We recognize the efforts exerted by government to help maintain prices. But our profits are being squeezed. Flour is stable as we have a lot of local millers, so there is competition,” Chua said.
During the pandemic, neighborhood bakeries thrived but now they are the ones feeling the pinch.
About 90 percent of bakeries are small.
Chua said to help the industry grow, FCBAI is holding Bakery Fair 2023 on March 2 to 4n at the World Trade Center in World Trade Center which will signal the revival of the Philippine baking industry. – Irma Isip
