Bakeries warn that the price of bread could increase if energy costs continue to rise. For now, the sector has managed to absorb part of the impact, but admits that, if this pace continues, it will only be a matter of time before there are new price updates.
At the beginning of the year there was already a rise in the price of bread. Nonetheless, Rising production and transportation costs continue to put pressure on the bakery industry’s margins.
“We started January with rising wages. Then came the rise in fuel prices. Then, the increase in all raw materials. All of this means that, no matter how much we want, our margins, which were already short, become even more reduced”, explains Elizabete Ferreira, from Padaria Gimonde.
A The situation becomes even more difficult for companies located in the interior of the country, where logistics costs are higher.
“Being in Trás-os-Montes, our logistics centers are Lisbon and Porto. This means that our transport costs are higher than those of companies that operate close to these centers. For those in the interior, we need to be much more resilient and resistant. But the truth is that, often, we have to follow the prices charged by those close to the big centers, and this always creates difficulties”, he says.
Another challenge highlighted is the distribution of bread in the villages, a service considered essential in many rural areasbut which represents more burdens for bakeries.
“There are fuel costs and the costs of the people themselves who have to make these trips. But there is also a social component: in many villages, if the bakers and small distributors are not there, the populations are left destitute, because many people have no way of getting around. We try to maintain this balance, but it is becoming increasingly difficult”, says Elizabete Ferreira.
As bread is one of the foods most consumed by the Portuguese on a daily basis, any worsening in price ends up having a direct impact on family budgets.
Sought by SIC, the Bakery Commerce and Industry Association guarantees that, For now, a general increase in the price of bread is not expected. Still, the association admits that this scenario could happen if production costs continue to rise.
For now, the decision on possible increases it continues to depend on each bakery.
