The shrinking sizes of bread or the price increases of pan de sal is due to inflation (or high cost of production inputs) rather than shortages in wheat supply. Wheat is the raw material for flour.
Panaderias or bread makers, usually in our neighborhoods, have either shrunk the size of pan de sal or raised the price per unit. This is because of rising inflation and not from short supply of flour, said the Philippine Association of Flour Millers Inc.
In our subdivision, a talipapa is located just outside our gate where a popular malunggay pan de sal sells for either P2.50 (super small as in one big bite) and a bigger one at P5 apiece. The difference is quality—it is fortified with malunggay or moringa (a medicinal and nutrition-rich ingredient and a slice of cheese, never mind which brand) so there is really no need for palaman.
Seldom would I see people buying the tasty bread (or what in bake shops would be called loaves) because they are pricey and need palaman.
PAFMI today said the increase in bread prices is due to the higher cost of ingredients and not flour shortage.
“Walang shortage sa supply ng harina. Malinaw ‘yan, mayroon tayong 90-day supply available at any time. Ang problema ay tumataas ang presyo ng lahat ng ingredients [sa] paggawa ng tinapay,” PAFMIL Executive Director Ricardo Pinca said in an interview on ABS-CBN News.
He stressed that bakeries will be at a disadvantage if they’re not able to adjust the prices of bread alongside the rising production costs.
Also, the ongoing war in Ukraine by Russia has affected wheat exports, but this does not directly affect the Philippines since we source most of our wheat from the United States, Canada and Australia, Pinca explained.
Other countries no longer have access to Russia and Ukraine wheat exports. So now, they’re turning to the US, Canada, and Australia and this has caused prices to soar.
Russia’s war in Ukraine, which triggered a surge in wheat and oil prices has posed an alarming threat to global food security.
In September 2020, Grain Mart India reported that the prices for wheat futures edged lower because of unfavorable weather in many top countries like France, the UK, US and Argentina. On the other hand, a few other others recorded decent levels of harvest
Russia is one of the major exporters of wheat in the world and exports to almost 100 countries. But, a few markets like China and Algeria have remained elusive because Russian wheat does not meet their standards. Further, due to the fear of the dwarf bunt fungus, China has restricted the imports from the other areas in Russia.
China has nearly doubled its imports in the last few years. Further, Chinese imports are at a seven-year high as they look to ensure food security amidst the pandemic. This poses to be good news for countries like France and Australia. Unfortunately, Russia can only export small amounts of wheat to China, predominantly from its Eastern production regions.
The demand for high-value and high-quality wheat from Australia will increase on the back of product shortages in the US and many other European countries. However, the prices of wheat futures are still low because of the massive amounts of low-quality wheat produced in Russia, India and China.
Even though the prices are low, Australian farmers are hoping to get a good deal in the market because of high-quality wheat shortage globally. Adding to that, Australia had the highest production levels in 3 years and was quite contrary to its competitors. Therefore, they are in good stead to expand their market in the UK, US and France. These countries will look to fill their consumption needs in the absence of quality domestic produce.
Tags: #breadprices, #PAFMI, #inflation, #worldsupplierssufferlowproduction