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Wheat Price Fluctuation puts Baking Industry on Alert

Wheat Price Fluctuation puts Baking Industry on Alert

The Mozambican Association of Bakers (AMOPAO) recently put on the table for discussion a proposal to increase the price of bread from 10 to 12 Meticais due to the rising cost of acquisition of the main raw material, wheat, from 1,650 to 2,100 Meticais per 50-kilo bag.

This increase in the cost of acquiring wheat on the international market was due to the appreciation of the dollar, but with the sudden appreciation of the Metical between April and mid-May, as well as the Government’s negotiation with the millers, the price of wheat fell from the then 2,100 to between 1,750 and 1,800 Meticais per 50-kilogram bag.

This caused the price of 160-gram bread to remain at ten Meticais. “Although the cost of wheat did not go down to the initial price of 1,650 Meticais, this reduction was the reason we decided to maintain it,” explained Victor Miguel, president of AMOPAO.

Despite the maintenance of the cost of this cereal, it is noted that some bakeries have readjusted the table, having increased one or two Meticais.

For Victor Miguel, the readjustments made by some bread producers are not aligned with the purposes of the association and are not the result of guidelines that it has been making in regular meetings that bakers have held with the government.

He explains that these are isolated cases, in the same way that there are bakeries that have reduced their prices.

“We have also had problems with retailers who often buy bread at low cost, but then resell it very expensive to the final consumer,” the interviewee points out.

For this reason, Victor Miguel recommends that consumers buy bread at bakeries, because, besides being cheaper, it has better hygiene conditions.

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