Bakery sector faces rising bread prices amid high input costs

The bakery sector in Argentina is facing rising costs, leading to anticipated price increases for bread and its derivatives. In the province of San Juan, union representatives expect a price hike of between 6% and 8% by late September or early October. This increase is driven by rising costs for raw materials such as wheat, flour, fat, and butter, alongside higher expenses for electricity, rent, and logistics.

The industry is also struggling with a significant decline in consumer demand. In San Juan, bakery product consumption has reportedly dropped by 45% to 50%, prompting some families to purchase smaller quantities for immediate consumption rather than bulk amounts. Current retail prices for a kilo of common bread range from $1,200 to $2,500, while higher-quality artisanal options can reach between $3,800 and $4,200.

Gabriel Ruiz, Secretary General of Panaderos de Lanús, noted that the inflation experienced by small and medium-sized enterprises often exceeds official government figures. He highlighted that essential inputs like flour and electricity are rising rapidly. Ruiz also addressed challenges regarding labor conditions and the impact of unfair competition from clandestine factories.