Bakers under the Association of Master Bakers & Caterers of Nigeria (AMBCN), has announced that it will be increasing the prices of bread by 15% effective July 24.

The association said that the decision was taken due to the “multifarious increases” in the prices of baking materials, including flour, sugar, yeast, vegetable oil, twist tie, petrol, diesel, and multiple taxations from federal and state agencies.

According to the AMBCN, the recent increases in the cost of production have made it “impossible” for bakers to continue to operate at a profit. The association said the price increase is necessary to “ensure that we can continue to produce standard baked products in accordance with NAFDAC regulation.”

The AMBCN called on the federal and state governments to intervene and help to “save the industry from total collapse.” The association said that the price increase is “a last resort” and that bakers are “sincerely grateful” for the understanding of their customers.

The statement reads in part, “We critically accessed the state of our business operations consequently resolve that the recent general increases on our factors of production including but not limited to additional N1.2 million on one truck of flour (N2,000 per bag), N3.6 million on one truck of sugar (N6,000 per bag), yeast additional N2,000 per carton, fuel from N205 to N550, diesel N650 to N700 (depending on the part of the country), multiple taxations from Federal Government regulatory agencies, State government tax agencies, state government emblem collectors, State and Local government health agencies and other taxing agencies too numerous to mention here, continuous collection of now heavily increased wheat levy (which is now diverted to other uses other than the objective for establishing it).

“Charge of all manner of levies on Flour millers that is finally transferred to bakers, it has now thrown a great number of our members into the unemployment market and is still counting.

“Effective 24th July 2023 as an interim measure, all members of AMBCN are hereby advised to adjust their prices by 15% (in consonance with the now heavily increased cost of factors of our production) across the board as we can only produce standard baked products in accordance with NAFDAC regulation as we cannot sacrifice the health of our fellow country men and women on the altar of breaking even point by resorting to unhealthy practices pending further resolutions.

“we sincerely appreciate the understanding and cooperation of our numerous customers nationwide as they grapple with the extra burden placed on them with the imminent increase and promise to revert back should there be significant Governments interventions.”