No bread and flour price increases

posted Jan 25, 2010, 10:43 PM by Leonard Flores
General Santos City (January 26, 2010) - DTI revealed that wheat prices in the international market remains steady at a high of US$292 to a low of US$268 in 2010 as compared to 2008 period where it peaked at US$818.
DTI has sent a letter to individual flour companies to verify reports if there is indeed intent to increase price by P20, and if there is, justify before implementing.
Monitoring reports show that prevailing prices of Wellington and Globe hard flour both went up by P10 compared a month ago.  Wellington 25kg bag sells at P810 while Globe sells at P790.
According to Mr. Pinca of PAFMIL, wheat with 14% protein content is $30 more expensive per ton than the 13% protein content and would translate to about P28 more per bag when sold locally.  Bakers prefer the DNS 14 flour.
Rise in sugar prices should not be a reason for increase in pan de sal and bread loaf prices because sugar is only 8.5% of cost component.
Approximately 80% of bread ingredient is flour.
Bakers associations last week assured the DTI that there will be no price increase.
To ensure that prices of flour will not go up further, the government right now has recommended for the extension of the zero-duties on wheat.