Bakers province Buenos Aires warned of a new price increase Bread. in the dialogue , industry sources said A kilo can be up to 400 dollars. According to the last price agreement Secretary of Domestic Trade The active ceiling is 290 pesos per kilo, although there are stores selling it for up to $340.

Bakers blamed the possible increase on higher operating costs in general, as they said factories supplying subsidized flour under the state trust could stop doing so due to a lack of payments.

“Yesterday we received information that factories attached to the trust have been suspended by the government due to non-payment, orders and deliveries until the situation is settled. Raul Santoandre, President of the Bakery Industry Federation of the Province of Buenos Aires (FIPBA) told this media. He added that the delivery, which was supposed to take place tomorrow, has been suspended.

In addition to this complaint, in the activity they talk about the high costs of fats, sugar problems and other elements that they use for different baked goods.

It should be remembered that the confidence that Santoandre points to was created by the increase in the withholding on flour and soybean oil, from 31% to 33%, to collect about 400 million USD and thus compensate for the wheat flour that reaches the bakery. The measure was taken after the invasion Russia in Ukraine which raised the prices. A grain reduction price of $25,815 per ton has been set so that, moreover, the state pays the difference to mills that later process the wheat so that they can sell a 25-kilogram bag of flour to bakeries. $1200 plus tax. This value has recently increased to $1,346.

“There are businesses that still have stocks of this flour, but there will be a problem if there is no solution before next week because the factories will not deliver.“- said the President of FIPBA.

He clarified that they are ready and will try to meet with groups of bakers at the national level to analyze the measures to be taken. But he warned: “The price increase is already underway.” According to his explanation, on the other hand, not all bakeries receive subsidized flour.

Santoandre requested a meeting with Comercio Interior. “We need to restore the working table that was formed where we had fluid dialogue and meetings to assess the panorama”said.

Gaston Mora, president of the Avellaneda Bakers Center, said on April 27 that they will assess the state of operations and also warned: “The increase will start directly in August”. He added: “The value will be located between 320 and 340, in some places it may touch 400”.

Mora talked about problems related to sugar and margarine. About sugar he said: “It’s going to change everything sweet that’s in the bakeries, because it’s $190 a kilo, and a month ago it was $100.”. In addition, regarding margarine, he noted that there were companies that “suspended sales.” He also warned about the complications of obesity.

“When we signed the contract, we did so on the condition that we were going to maintain the price if the raw material remained at the price, but everything related to the price of bread has increased by 70% and we cannot continue the price. “, said. He noted that the sector should also address the increase in employee salaries.

last april Fipba X-rayed how the price of bread paid by the consumer is determined. According to the report, St French bread flour accounts for 29% of the final price. This breaks down to 17% for wheat and 11% for direct milling. At the same time, taxes 21% and bakery 50%. In the latter case, factors such as labor, services and rent are involved.

Escrow

Regarding the bakers’ problems in supplying subsidized flour, allegedly due to non-payment by the state to the mills, the source said: “Affiliated mills have already supplied more than 170,000 tons of flour at cost. It is subsidized. At present the mills of the State owe one and a half months of already accrued compensation, this advance has already been given, and under these conditions no mill can continue to supply at the fixed price. The price should be taken at market value, which in this case would be about $1,800 for a 25-kilogram bag.”

6 milling companies have entered the system and another 20 will be in the process. As an attraction for companies that do not trust to fulfill the payments, the state has set an advance equivalent to 75% of the first estimated compensation of each mill based on its grinding.

Regarding the latter, the source noted that the firms that entered the system recently received the advance payment today. This is while others are waiting to be collected.

In response to a question , In domestic trade, they acknowledged the delay in payments and promised: “It will be normalized soon, there may have been bureaucratic issues, but it is on the way to being resolved.”

In a statement this week, the Small and Medium Milling Industry Association (Apyminra) called for the flour trust for bakeries to be suspended, arguing that it is not working. Among other things, he specified:The price of bread follows the inflation curve and does not fall even though the price of flour falls. In fact, the price of wheat and flour fell by 40% in the last two months, while bread rose by 3.4% in June. That’s why we don’t understand what justifies FETA (that’s the name of the state fund).”