NASSAU, BAHAMAS – A well-known Bahamian bread supplier said that with commodity prices and operational costs rising it has been left “with no choice” but to raise the price on its products by 5-8 per cent.
Kimani Smith, Purity Bakery’s general manager told Eyewitness News: “Costs have gone up and there is very little you can do about it. We are just falling victims to the effects of globalization. Commodity prices, energy prices, transportation costs are all increasing and you have to make the necessary adjustments to remain profitable. We have payroll to meet, we have obligations to our staff and our shareholders. No one likes to pay more but it’s necessary. This is happening all over the world.”
Smith in a recent notice to customers said: “The disruption to the global supply chain caused by the COVID-19 pandemic resulted in soaring commodity prices, shipping constraints and high industry costs. The disruption is now being compounded by the war in Ukraine. Prices for ingredients that are essential to our baking process continue to rise quickly and the availability of these supplies are constrained.
“Consequently we find ourselves in the position where it is necessary for us to increase the prices of domestic breads, rolls and sweet goods in our product portfolio.” Russia and Ukraine are the world’s top wheat producers and the war between the two countries is having a major effect on wheat supply chains.
Smith said: “This isn’t a fun position to be in. When this will all end we don’t know. We were mindful of the fact that everyone is still sort of recovering from the pandemic and we just had somewhat of an increase due to VAT being placed back on breadbasket items. We were really in a tight spot.”
Smith said that prices on the company’s products will vary.
“The increases are moderate. It’s a 5-8 percent increase in our wholesale prices,” he added.
“Our retailers will have to pay 5-8 percent more, depending on what it is.”
