Bread prices jump 10% as bakers shelve strike

Bread bakery

Bread bakery

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Bread makers under the aegis of Premium Breadmakers Association of Nigeria have increased bread prices by 10% after suspending its four-day warning strike which began on Thursday.

Speaking in an interview with The PUNCH on Tuesday, the President of the association, Emmanuel Onuorah, said his members had to shelve their warning strike and resolved to increase the prices of bread in order to scale their business amidst the harsh operating environment.

He said, “We have ended the warning strike/withdrawal of services. We finished it on Monday and we have resumed business. We have begun production and selling of bread since yesterday (Monday). Master Bakers have started too. We ended it at the same time. You know it was a joint resolution from the Master Bakers and PBAN. So, we have started work.

"We did increase the price of bread. We increased our bread price by 10 per cent, master bakers increased their bread price by 20 per cent. Inasmuch as we wouldn’t have loved to implement any price increase, it is the only way we can remain in business.”

According to Onuorah, despite the recent hike, the bakers are still operating at a deficit, adding that members have been forced to adopt several survival strategies to remain in business.

Punch Metro had reported how bakers under the aegis of the PBAN announced plans to suspend break-making production last week.

The association revealed in a signed statement that operating a bakery in Nigeria had become difficult due to the incessant increase in the price of baking materials and diesel, which had greatly affected the industry negatively.

The statement partly reads, “In a move to ensure the survival of the premium bread-making industry in Nigeria, we have decided to embark on a withdrawal of services beginning from Thursday 21st of July, 2022 for four days in the first instance and where there is no intervention from the government, we shall escalate the duration of the withdrawal.”

“The reasons for the withdrawal of services included an incessant increase in the price of baking materials, Federal Government’s 15 per cent wheat development levy on wheat imports, NAFDAC’s N154,000 penalty charged for late renewal of certificates, the inability of its members to access grants and soft loans being given by the Central Bank of Nigeria to Micro, Small and Medium-Scale Enterprises and multi-agencies regulation of the bread-making industry.”

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