Producers mull bread price hike

The managers of bakery producers Boromir, Titan and Spicul maintain they are waiting for the harvest season to end and wheat prices to stabilise to decide whether to raise bakery product prices.

Should wheat prices rise further, the price of bread is likely to go up by as much as 25%, namely to 1 RON and 30 bani, according to ZF estimates on the basis of information provided by producers.

Wheat weighs around 70% in the price of flour, which in turn determines 50% of bread prices, bakery producers explain, meaning that wheat accounts for 35% in the final price of bread.

This means that some producers will start raising the prices of flour and bread in the portfolio as soon as this month, as a direct reaction to wheat price increase. Nevertheless, producers would not say whether they plan to raise prices or not and by what percentage or how their businesses will be affected.