Bakers return to the streets to protest a new rise in the price of raw materials

The price of popular bread, whose price remains at $0.12, is once again the subject of analysis and protest by bakers’ unions at the national level.

This Monday morning, dozens of bakeries from the provinces of Guayas, Azuay, Esmeraldas, Carchi, Loja and Pichincha held a sit-in outside the Government Palace, where they requested to be received by President Guillermo Lasso to explain the situation in the sector.

The price of bread, a pending that the government of Guillermo Lasso inherits

The protests are fueled by the Bakers Union of Ecuadorwhich less than a year, since in May 2021 they protested the rise in supplies and announced the increase in bread from $0.12 to $0.20, which was later suspended when talks began with the previous government, this time they return to claim for new rises in the costs of the products.

According to the union, the new price increases occurred with more force since last week.

For example: the 20 liter oil drum went from costing $24 in 2021 to $36 this year. The kilo of butter went from $1.37 to $2, the 50 kilos of flour from $30 to $40 and the 500 g block of yeast had an increase of between 20 and 30%.

Elena Cacuango, coordinator of the Union of Bakers of Pichincha, He assured that the representatives of the unions also went to the National Assembly to be heard and indicated that if there is no favorable response they will organize new mobilizations.

“We do not know for sure the reason for these increases. Now the price of a block of 50 kg of butter for a small artisan bakery is $115, the previous year it cost $74.90″, said Cacuango.

While, Wilson Flores, owner of Erick Bakerywhich has three stores in Guayaquil, assured that the rise in prices, both for flour and fat, has been constant for a year and month after month they have grown by an average of between 5% and 10%.

“But this time we bakers were surprised that, without prior notice, one of the last increases was that of fat after the carnival holiday,” said Flores, who points out that it is predicted that until next July a quintal of flour cost $50, which a year ago was between $30 and $32, depending on the brand.

A decade ago was the last increase in the price of bread, which is now rising due to high raw material costs

Flores commented that last year the justification of wheat importers for the increase in products was the increase in freight costs due to the pandemic, but this year, according to the businessman, flour suppliers have explained to them that this time the increase will be due to the effects of the war between Russia and Ukraine.

“Supposedly this is affecting wheat production and they announce a rise of up to $50 at the end of June,” reiterated Flores, who assured that the estimated price of bread, to cover current costs and placate the rise in raw material that exceeds 60% should be between $0.20 and $0.25

Meanwhile, the guilds manage the possibility of directly importing the products. “The economy of the Ecuadorian people cannot take any more. We are aware, we are part of the people, we want to choose to import raw material, especially fat, which is what has risen in the highest percentage,” said Cacuango.

“The only request for the Government is that it allows us to bring through any ministry the raw material we need to solve the problems we have in our artisan bakery sector,” added Mauro Sánchez, president of the Esmeraldas baker’s guild, who pointed out that they would import fat and flour from the country that offers them the best quality and price.