Bread prices to go down
By Ma. Elisa Osorio
Thursday, November 13, 2008
The price of pan de sal will go down on Tuesday, the local bakers’ association announced yesterday.
In a press conference, Simplicio Umali Jr., president of the Philippine Baking Industry Group Inc., said the price of pan de sal will go down by P0.25 for every ten-piece pack while the price of a 600-gram loaf of bread will be P0.50 lower.
According to Umali, the price adjustment was a result of the flour miller’s decision to decrease their price by P17 – from P957 to P940.
Umali said the price may go down further before Christmas, given that flour in this country is still “overpriced.”
“We are hopeful that they (flour millers) will bring down the price of flour further,” Umali said. “Before Christmas hopefully we can lower the price by another P1.00.”
Umali claimed flour prices should go down by more than P17.
“We do not calculate anymore because we just end up frustrated. They (local flour millers) don’t follow global trends,” he added.
According to Umali, bakers have suffered losses from August to October. In fact, this year 50 bakers have closed shop. In the past two years, 30 percent of the bakeries closed down.
To address this problem, the bakers have asked the government to do three things. First, to pressure flour millers to further lower the price of flour. Second, to start importing flour, and third, remove the tariff on flour.
“If we allow imported flour to enter the country then local millers will be forced to be more competitive and price their products accordingly,” he said.
“The entry of imported flour won’t kill the local industry,” Umali stressed.
Because of the high price of bread, Umali said the demand for bread has gone down by as much as 10 percent since the beginning of the year.
“It was worse these past three months, but now we are confident that we will improve this November,” he said.
During the Christmas season, he said the demand is expected to go up by 50 percent. “Usually, the demand is greater than the supply but even if this is the case, we won’t increase our price. That is our promise.”
I think that this is a good news to all since the cost of breads did decrease. Christmas season is coming up and i think people would buy more since prices are lower. It was a good thing that the flour millers decreased their price by P17. Even though it's not that high, it still gave benefit to buyers because they would spend less for this kind of product because it would be really unreasonable to pay for a lot with bread alone. For the past 3 months from aug-oct, bake shops did close down and this time sales did increase because of low cost. If they would continue to lower their price then I think by Christmas time, they would have more sales than the previous months. People would buy it for their Christmas parties or any special occasion during the month of December.
7 comments:
It is good to hear that most of the prices are on a down trend already. I'm thinking that this is connected with the weekly oil rollbacks which the oil companies have been doing for weeks now.
With regards to bread, from what I heard some bread makers wouldn't cut their prices instead they would make their breads heavier. This increase in the weight of the breads will give it's customers value for their money.
This is good news for the Filipinos. The lowering of prices should be constant. Other commodities should follow the lowering of prices because almost all Filipinos are not that elite so we should so something to urge them to lower it more.
Usually, Filipinos depend their knowledge of inflation in the gasoline/fare prices. But that is not the only data they use, I sometimes hear people referring the status of the Philippines using the price of bread. So articles like are good in the sense that people may feel more comfortable that the Philippines is progressing. Bread can be considered a basic need for Filipinos because almost all of us buy them every morning.
Sometimes we refer to money as "bread". This shows how much we value our bread. Next to rice, we seek for bread to complete our meal. The price adjustment gives us more capibility to buy and just in time for the Christmas season.
This is god news because it shows that prices are going down and it is still possible for other product prices to go down also. Bread is very important because people who cannot afford to buy enough food sometimes substitute bread as their meal.
i think this article indicate that economc crisis become into moderate economic situation. Bread price had affect from high gas/oil and grain prices. but this issue can big deal with people. it also estimate that we are get out of from our own economic problem, becasue "Bread price to go down
' also announce that other food price might be go down. this is very good deal to us.
I am glad to hear that prices are going down. With the holiday season just around the corner, it would be such great help if the prices of goods go down, even at the slightest bit.
Bread has always been a part of the lives of filipinos. Whether eaten by itself, with cheese, dipped in coffee, toasted with butter and sugar, or turned into pizza crust, bread is always around in a regular filipino household kitchen. With a lot of people running small bakeries, it would be an advantage to their sales and expenses if prices go down
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