DTI: Flour prices down but bread costs the same

CEBU, Philippines - The Department of Trade and Industry noted a decrease in flour prices in Cebu this month by at least P5 to P15, thanks to the supposed decline in the world market price of wheat.

Price monitoring data of DTI-Cebu showed yesterday that various brands of hard flour went down by P5 to P15 per bag of 25kg (kilograms).

The General brand of hard flour or bread flour is now priced at P855 per bag from P860, DTI-Cebu said. The Baker's Choice brand is now at P835 per bag from P850, down by P15.

But despite the recent cut in prices of flour, costs of bread remain unchanged except that of subsidized bread products Pinoy Tasty and Pinoy Pandesal. Although the price adjustments of these subsidized breads were just very minimal.

According to DTI, price of Pinoy Tasty bread loaf went down to P36 from P36.50 and 10-piece Pinoy Pandesal pack to P22 from P22.25.

Bakers have yet to bring down prices of bread amid the drop in flour prices.

But Consumer Welfare Chief Zaide Bation said local bakers just promised to increase the weight of their bread products instead of cutting prices amid the flour price drop.

Bation said the weight of P5 ordinary breads sold at local bakeshops was increased to 60 to 70 grams from 55 grams, as suggested by local bakers.

In a mobile message yesterday, Marilou Bordalba, secretary of Cebu Bakers Association (Ceba), said prices of 450-gram bread loaves sold by bakers will remain unchanged.

"It will remain because majority are selling at P32 to P34 at 450 grams," Bordalba told The FREEMAN.

Bordalba also said that most member bakers of Ceba opted to increase the dough weight of P5 breads. Ceba members include individual bakeshops and chain of bakeries in the province.

Bation said prices of other branded bread loaves remain at their prevailing prices: 400-gram Conching at P36.50; 400-gram Gardenia at P46; 600-gram Gardenia at P62; and 600-gram Pullman at P45.

Earlier reports said that Filipino bakers and the DTI called on millers to cut flour prices by P100 to P200 amid the declining world price of wheat.

Gardenia Bakeries Philippines earlier announced it will cut prices of some of its bread products next month.

According to the US Department of Agriculture, world price of wheat decreased to US$209.87 per metric ton last month, down 16% from US$248.46 in January this year.

Around 90% of flour, which is the main ingredient in bread production, is made of wheat.

The DTI said bakeries account for a big portion of flour consumption in the country.

Other major flour consumers include manufacturers of noodles, cake and pastries, biscuits and other flour-based goods. (FREEMAN)