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  • Soaring prices of ingredients force bakers out of business

    Soaring prices of ingredients force bakers out of business

    Everyone knows that these are not the best of times in business. Prices of virtually all goods have gone astronomically high but one of the worst hit are the small-time Confectioners and bakers who cannot afford bulk buying of ingredients.

    These are confectioners and bakers that retailers measure out flour, butter, sugar, oil, baking soda etcetera in paint/custard buckets, bowls, cups to buy and they sell with minimal profits but as prices continue to go up, majority of them are closing shop.

    Just last Wednesday the National Bureau of Statistics (NBS) released a report that Nigeria’s headline inflation rate rose to 27.33 per cent in October from 26.72 per cent in September.

    The bureau said the October 2023 headline inflation rate showed an increase of 0.61 percentage points in the October 2023 headline inflation rate compared to September 2023.

    On a year-on-year basis, the headline inflation rate in October 2023 was 6.24 percentage points higher than the rate recorded in October 2022, which stood at 21.09%.

    This indicates an increase in the year-on-year headline inflation rate in October 2023 compared to the same month in the previous year, October 2022.

    According to the report, the food inflation rate in October 2023 accelerated to 31.52% on a year-on-year basis, which was 7.80% points higher compared to the rate recorded in October 2022 (23.72%).

    The increase in food inflation on a year-on-year basis was attributed to higher prices of bread and cereals, oil and fat, potatoes, yam and other tubers, fish, fruit, meat, vegetables, milk, cheese, and eggs.

    On a month-on-month basis, the food inflation rate in October 2023 was 1.91%, which was 0.54% lower compared to the rate recorded in September 2023 (2.45%).

    Per the report, “The decline in Food inflation on a month-over-month basis was caused by the decline in the rate of increase in the average prices of Fruits, Oil and fat, Coffee, Tea and Cocoa, Bread and Cereals.”

    Food prices have been steadily increasing in Nigeria in recent years, and the situation worsened due to the impact of government policies, including the removal of subsidies on petrol, among other factors.

    There are projections Nigeria’s inflation will keep increasing till the year ends, possibly reaching a record level of 30%, the highest seen since the country’s modern democratic era.

    In an interview with Mama Esther who has been selling confectionery at Ipodo market Ikeja, she said she can no longer remain in the business as she is selling at a loss. “Sometimes at the end of the day I find out that I made little or no profit. I have reduced the size of my products to the anger of my customers but am still selling at a loss most times.”

    Lamenting about the price of sugar and other ingredients, she said she was changing her line of business adding that her family will go hungry and bankrupt if she remains in this business.

    Mrs. Anthony Onwu, a retired teacher who delved into the business to augment her pension said she closed her shop early this year as the ingredients became unaffordable. “I now go to people’s houses to do lessons and make do with whatever I am paid.”

    No matter what you are buying, these days you are going to pay more for it. “Small businesses across the country are paying more for ingredients. One week it is cocoa powder, the next week, it is butter,” said Mrs. Onwu. “The week after that, it is going to be eggs, any diary, just across the board, everything has been on the increase.”

    Read Also: Salary in Naira or Dollars, Nigerians can now decide how they like to get paid

    Investigations revealed that a bag of 50kg  Dangote sugar that used to sell N43,600 just two months ago, as at Thursday last week, sells for N55,000. A 50kg bag of Mama gold flour which was less than N30,000 just some months back, currently sells for N45,500. A crate of average sized eggs which cost N1,200 is now N2,600. Small size baking powder of N800 now sells for N1,500. There has been a horrendous increase in all prices of goods.

    Bread, a favourite Nigerian fathers welcome home gifts for their children, is disappearing in homes. Most households have now jettisoned the pastry from their diet lists, as the prices of flour and other ingredients for making bread have continued to increase, leaving bread prices on a high side.

    To worsen the situation, many bakery owners are shutting down, due to their inability to meet up with increasing cost of ingredients.

    Several increases have been done in the prices of bread since the Russian-Ukraine war, which has resulted in unavailability of enough flour all around the world.

     Mr. Abayomi Olorunfemi, a baker noted that apart from shutting down business, some bakery owners are reducing the sizes and increasing the prices of bread to make ends meet.

    “This country’s economy is really dealing with businesses. It has turned smart business men into people who aren’t smart anymore. Many of my colleagues in the business are shutting down. Those who have three to four bakeries now have two.

    “Some are now reducing the size of their bread and increasing the prices. This year, bakers have increased the prices of bread over three times. It is very traumatic because customers no longer patronize bread due to the increased prices and small quantity and lessened quality.”

    Mrs. Are Toluwalase, a business woman, said she had to stop buying bread when the price of a family size bread was increased to N1,200 from N1,100.

    “I stopped buying bread when the price of a family size bread was increased to N1,200 from N1,100 two months ago. The quantity is nothing to write home about. With two cuttings, a family size bread is finished. Before you get such bread for N500. I have a family of six.”

    Mr. Aderotimi Samuel, a bakery owner, said he has two bakeries in Ikorodu but recently shut down one to be able to meet the cost of maintenance.

  • Master bakers, caterers seek end to multiple taxation, others

    Master bakers, caterers seek end to multiple taxation, others

    The Association of Master Bakers and Caterers of Nigeria (AMBCN) has urged the Federal and state governments to stop their multiple revenue taxation policies.

    They said such policies suffocate the bakery industry.

    In a communiqué issued at the end of its National Executive Council (NEC) meeting in Abuja, AMBCN advised its members to maintain the production of products that comply with the quality and standard prescribed by the National Agency for Food and Drugs Administration and Control (NAFDAC), irrespective of the challenges they face due to high costs of production.

    The communiqué, jointly signed by its National President, Alhaji Mansur Umar, and the National Secretary, Jude Okafor, reads: “The NEC-in-session called on the Federal Government to suspend the wheat levy, which has accrued over N600 billion and diverted to other areas, rather than the composite bread production industry for which it was established.

    Read Also: Bakers implore govt to intervene in rising prices of flour, others

    “The NEC-in-session called on the Federal Government and states to order a stop of multiple revenue/taxation policies, which are suffocating the bakery industry.

    “The NEC-in-session appealed to the Federal Government to implement the palliative scheme to our ailing bakery industry, which has witnessed closure of over 30 per cent of our members, since the removal of petroleum subsidy. This closure has caused loss of jobs for over five million Nigerians engaged in our industry.

    “NEC-in-session calls on the Federal Government to intervene on incessant increase on flour and sugar, just like it recently did in the cement industry. This is more important because food is the first law of nature as it affects preservation of life.”

  • Bakers cry out over hike in flour price

    Bakers cry out over hike in flour price

    BAKERS on Wednesday cried out over the rising prices of ingredients, asking the government to come to their aid.

    According to them,  the hike in the cost of flour has turned them to debtors which has incapacitated them from producing bread on regular basis.

    Their president, Alhaji Dauda Sulaiman, said the  price of flour has risen from 6,300 to 11,500.

    This, he attributed, to the exchange rate in the international market.

    Sulaiman said the millers had been adamant over the hike in flour price, explaining that all efforts to appeal to them to reduce the cost have proved abortive.

    “A bag of flour which we used to buy at N6,300 is currently being sold at  N11,500, yet all our bread prices still remain the same; this is killing our business, the millers should have a rethink and bring down the cost of flour for us to produce bread for the populace. We have been in dialogue with them but the millers have turned deaf ears to our appeals,” he said.

    Sulaiman said some of their members have taken  to Okada riding business.

    “Some of our members have quit the business and turned Okada riders because of their inability to continue over debts, some have nothing to do again,” he noted.

    He said “the prices of flour in  neighbouring countries were lower than that of Nigeria. Where are we going? We are running on debts, we appeal to the government to quickly come to our aid for us to remain in business.”    Sulaiman added that the cost of flour in the Southwest is two times higher than that is of the North.

    The Progressive Bakers Association National Secretary, Comrade Olalekan Timothy,  accused some government agencies of turning the bakers to Automated Teller Machine (ATM) where they come to collect money with no reason at any time.

    He urged  the government to stop  the abuse.

  • Bakers seek cut in flour price

    Bakers seek cut in flour price

    THE Association of Master Bakers and Caterers of Nigeria(Lagos State Chapter) has appealed to flour millers to reduce the price of flour to boost productivity and strengthen food security.

    Its chairman, Mr.Jacob Adejorin, spoke in an interview with the News Agency of Nigeria (NAN) in Lagos.

    Adejorin advised millers to adjust the price of flour to reflect the present exchange rate of the naira to the dollar as well as the recent slash in the price of diesel by the Federal Government across the country.

    “We still buy a bag of flour for between N11,000  and N11,300. This was the price when the naira was being exchanged at N500 to the dollar.

    “Now that the naira has appreciated against the dollar at N363 to the dollar, we expect that flour millers should have reduced the price of a bag of flour from its present price.

    ”The prices of other raw materials, such as sugar, salt, margarine, edible oil and yeast have been reduced in the market.

    “The high cost of flour has negatively impacted on the productivity and profitability of bread.

    “This had led some bakers to opt out of the business to become commercial motorcyclists,” he said.

    Adejorinadded that the reduction in the price of flour would enable the association to become employers of labour.

    He added that it would also be able to provide affordable and nutritious flour-based food varieties for the citizenry.

  • NAFDAC confirms reduction in use of bromate in Nasarawa

    NAFDAC confirms reduction in use of bromate in Nasarawa

    The National Agency for Food and Drug Administration and Control (NAFDAC) on Tuesday said that its advocacy had drastically reduced the use of potassium bromate by bakers in Nasarawa State.

    Mr Michael Attah, NAFDAC Coordinator in Nasarawa State, told the News Agency of Nigeria (NAN) in Lafia that NAFDAC officials paid repeated unscheduled inspection visits to bakeries in the state.

    Attah said that the agency would not relax in its campaign against the use of the banned substances until eradication.

    “For now, we have not heard of any case of bakers using potassium bromate, which affects the kidney, although I cannot say it has been totally eradicated,” he said.

    The NAFDAC coordinator said that aggressive campaigns organised by the agency enlightened bakers on the hazards posed to human lives by the use of the `improver’.

    “In 2015, we called them, enlightened them and appealed to their consciences. In 2016, there was a general investigation carried out by NAFDAC.

    “We have test kits which we use when we visit bakeries unannounced. All that made them to do the right thing.

    “There are other alternatives with which to improve their products; most of them have embraced the alternatives,” he told NAN.

    Attah also said that the agency had opened an outpost in Karu Local Government Area of the state to provide effective service for the huge population.

    “We will ensure that these two offices in the state effectively cover the 13 local government areas.

    “The agency’s officials will pay advocacy visits to traditional rulers across the state to urge them to sensitise the youth to the hazards of peddling illegal drugs.

    “We noted resistance in Keana, Obi and Awe local governments in the southern part of the state.

    “Their boys are uncooperative. We will visit traditional rulers, then youth leaders to speak to them so that we can penetrate effectively,” Attah added.

    He appealed to the state government to support the agency in the area of logistics so that both offices could work effectively to reduce drug abuse.

  • Bakers lament rising costs of ingredients

    Bakers lament rising costs of ingredients

    The Association of Master Bakers and Caterers of Nigeria (AMBCN) has  decried  the rising costs of baking materials. They regretted that the development has been forcing  members to close shops and appealed to the Federal Government to come to their aid.

    Speaking at the association’s first NEC meeting at Sagamu where the newly elected executives were inaugurated, the national president of the association, Dominic Daniel Turi, said: “We are making efforts to collaborate with the  government so that they can look into issues affecting bakery operation in the country, especially the high cost of flours, sugar and other baking ingredients. According to him, “we used to buy flour for N8,000 but now it is N12,000. The price of sugar was N6,000 but now is N20,000; butter was selling at N6,000, it is now N12,000. So, we are appealing to government to assist the baking industry. In the northern part of the country, 65% of the bakery industry has closed down and the remaining few is now baking doughnut.”

    Mr Turi encouraged the members to work hard, saying, “We all have responsibility to ensure that we work hard in building a sustainable industry in the association.”

    In addition, National Secretary of the Association, Honourable Jude Okafor, said, “the association has taken cognizance of the multiple challenges rocking bakery industry, such as increment in the prices of baking materials and ingredients and promised that the association would explore every necessary avenue to assist its members remain in business.

    He said:  “Actually, it has been a very worrisome development since the recession started in the country. The association has taken steps to cushion the effect of high cost of raw materials. We have asked our members to increase prices of bread between 10 and 20% since last year. But along the line prices continue to soar and today most of our members have shut down. We have written to the Federal Government to intervene with some palliative measures to cushion the effect of high cost of bread production which is stable food in Nigeria.

  • Four million to go as bakers threaten to retrench

    No fewer than four million workers may go, if the Association of Master Bakers and Caterers of Nigeria (AMCON) carry out its retrenchment threat because of what it calls unfavourable business climate.

    The group’s National Publicity Secretary, Jude Okafor said at a forum in Asaba, the Delta State capital that members have resolved to lay off no fewer than 10 workers per bakery unless the government meets their demands.

    Citing the astronomical increase in the cost of flour, sugar, yeast and other materials, Okafor said the members have no choice but to lay off workers as it is the only way they can stay in business.

    He explained that bag of flour which before now costs N5,800 has shot up to N12,000 while sugar is now N22,000 instead of the erstwhile price of N7,000 and yeast presently goes for N18,000 as against N5,500 and vegetable oil is now N18,000 as against N5,000.

    He said appeals to the Federal Ministry of Agriculture to intervene met a brickwall, noting that in frustration, the association ordered its members to withdraw their services with the hope that the government would intervene.

    Okafor said: “The 450, 000 strong members have resolved to lay off workers at the rate of ten staff per bakery for some small bakeries, thirty staff for medium scale bakeries and fifty workers per bakery for large scale bakeries.’’

  • Baker’s honour for bread hawker

    Baker’s honour for bread hawker

    A confectionery has made ex-bread hawker Olajumoke Orisaguna its brand ambassador, reports
    VICTOR OLUWASEGUN

    The fairy tale continues apace. Former bread seller turned celebrity has been made the brand ambassador of Shirley’s Confectionery in Abuja. Olajumoke was presented with a certificate to that effect as well as the firm’s branded shirt at its office in Gwarimpa.

    According to Shirley’s Confectionery, its decision to adopt and unveil Olajumoke as their brand ambassador followed her unusual success story which has become a source of wonder and reference to many Nigerians.

    The story of the young lady is one that most Nigerians are familiar with, a Cinderella-like narrative of grass to grace, of sudden glitz and glamour.

    Amarachi Iwuanyanwu,  a director at Shirley’s Confectionery explained the decision to associate with Olajumoke.

    “We are delighted to inform you about our recent brand association with Olajumoke Orisaguna, a former bread seller who shot to stardom as a result of being at the wrong place at the right time. Now she has featured on CNN, Thisday Style magazine etc.

    “As a result of the unusual grass to grace story, Shirley has decided to make Olajumoke Orisaguna  as the brand ambassador to Shirley’s Confectionery.”

    The event  with took place in Shirley’s Gwarimpa, Abuja Offices had quite a number of media people as well as curious customers of the outfit who simply wanted to catch a glimpse of the sudden model.

    Wilfred, Marketing Consultant to Shirley’s said the purpose of the event was to celebrate something that is phenomenon and exceptional.

    He said Olajumoke’s story is inspirational and that Shirley’s believes in inspiration.

    Amarachi Iwuayanwu, who was at the event with Adaora Iwuayanwu, another director, denied exploiting Miss Orisaguna.

    “We’re not using this opportunity to exploit any situation, we are actually sympathetic and very happy with the grass to grace story of Jumoke. And why we thought it was necessary for Shirley’s to be part of it is that it traces back to what were actually selling.

    “We’re a confectionery shop and selling bread. We feel that out of every other brands that have adopted her as their brand ambassadors, we are more positioned to push her out to the world.

    “Now she is no longer selling Agege Bread, she’s dealing with Shirley’s Bread. The grass to grace story is also the Agege Bread to the Shirley’s Bread story.”

    The event which drew quite a number a crowd, featured photo sessions with the new model.

    Mrs. Orisaguna, who spoke in Yoruba expressed delight at the opportunity given her by the company. She said her story shows that whatever anyone is doing should be done with commitment as no one knows when his or her breakthrough would come.

    “I am happy with what God has done for me because where I am today is unexpected.”

    On her advice to those that are hawking as she was previously was, she said: “I want to tell them to work hard. People should not shy away from any job that comes their way. They should not say for instance that selling pure water is demeaning or that a certain vocation is not edifying. If I was lazy, I probably would not have been fortunate as I am presently.”

    Azuka Ojiuba, a staff of Thisday Newspaper who represented T Y Bello at the event, said they were happy that Mrs. Orisaguna’s unusual success is being recognised with the endorsement  and adoption of the lady as Shirley’s brand ambassador.

    Will Olajumoke remain humble and faithful to her husband in view of her new status?

    Ojiuba said she has been spending time with the Orisagunas and there is no indication that Jumoke would change.

    “She is still the real home girl that she is. Even when she gibes her husband food, she genuflects we don’t want to change who she is. We just want to give her good education and standard of living. She is still the same, she knows that people want to help her and that they love her. Her life has changed, but she has not changed.”

     

  • Bakers resolve four- year leadership crisis

    •Set to elect new officers

    The Association of Master Bakers and Caterers of Nigeria (AMBCN) will elect new leaders in October four years after the exercise should have taken place.

    The decision to relieve all the leaders who have been in acting capacity for years was reached in Abuja at the just concluded meeting of leaders of the association from the 36 states and the Federal Capital Territory (FCT).

    The acting Chairman of Niger State chapter of the association, Alhaji Mohammed Shukura, disclosed this to newsmen in Minna, Niger State, yesterday.

    The meeting, according to Shukura, was at the instance of the Chairman of the association’s Board of Trustees (BOT), Chief Bayo Folarin.

    It was gathered that the meeting resolved to ensure democratically elected officials are put in place at all levels of the association in line with wind of change blowing across the country.

    The meeting empowered the convener to constitute an electoral committee to organise and conduct elections of officers for the association at national level.

    It was also resolved that similar exercise should be carried out at the state levels.

    Addressing leaders at the meeting, the BOT chairman advised members in acting capacity interested in vying for any of the national offices to resign to ensure a credible and rancour free election.

    Folarin said the timetable for a credible and acceptable election will be drawn and all the 36 states chapters and FCT will be adequately informed.

     

  • ‘Bakers accuse bank of delaying release of N3.4b Cassava Bread Fund’

    The National Master
    Bakers and Catering
    Association of Nigeria has expressed worry at the unnecessary delay in the disbursement of the N3.4billion Cassava Bread Fund by the Bank of Industry (BoI).

    The Chairman of the Association, Simeon Abannlor, while reacting to claims by the Lagos Chapter of the Association that no Master Baker has benefited from the Cassava Bread Fund, said the BoI should be blamed for the delay in the release of funds and not government.

    Abannlor said the Federal Government has been sincere enough by allowing BoI to disburse the funds so as to ensure transparency, but regreted however since January 2014 when the first set of beneficiaries received the bakers equipment made up of 2000 capacity Rotary oven, Spiral Mixer, 80KVA Generator, deep Freezer and  working Capital of N1million, it was yet to process application of other beneficiaries.

    Basically, in an effort to scale up the production of cassava bread by the master bakers, the Federal government domiciled N3.4billion with the BoI to be disbursed to the Small Scale High Quality Cassava Flour Producer, Large Mills, and Master Bakers.

    The body admitted that N1.2billion of the said amount has so far being disbursed since 2013, while 2.2billion is still domiciled with the bank.

    The disbursement of the Cassava Bread Fund according to the National Chairman is in progress, as the ministry has so far trained 200 of its members out of which 177 members are beneficiaries.

    Against the backdrop of the allegation raised by the Lagos Chapter of the association, he disclosed that 96 master bakers across the country have received their equipment. He explained that for the first phase of the project, the bank selected 4 master bakers from each state

    He said each baker received 2000 capacity Rotary oven, Spiral Mixer, 80KVA generator, while the beneficiaries are still expecting deep freezers and a working capital of N1million.

    Commending the Agriculture Minister for taking decisive steps in ensuring the success of the project, and that the fund domiciled with the Bank of Industry gets to the intended beneficiaries, he expressed his reservation against the Lagos chapter of the association for staging protest against the policy, saying they are only trying to play politics with food security.