With the latest update of the reference values for 000 flour authorized by the Secretary of Commerce within the framework of the Argentine Wheat Stabilizing Fund (FETA).
Bakers warn that flour cannot be obtained at the price of FETA, so they must buy it at a much higher value.
Starting Monday, November 27, the price of a kilo of bread will be $1,200, according to a decision made by the Merlo Bakers Center and accompanied by the representatives of Quilmes, Lanús, San Fernando, Tigre, San Miguel, José C Paz, Malvinas Argentinas, Moreno, General Rodríguez, Marcos Paz and Las Heras.
“We made the decision with several baking centers in the Province of Buenos Aires. “It was carried out due to the spike in flour and raw materials, we are taking into account October inflation.”said Martin Pinto, owner of the Merlo bakers center. He considered that the increase does not take into account “the surge that is coming” that could imply a new increase.
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“We were behind with prices,” explained Maximo Zamorano, from the bakery center of San Fernando, Tigre. He anticipated that “that price is not going to be fixed.”
In dialogue with PERFIL, Gaston Mora, from the Federation of Bakers of Avellaneda, stated: “We find ourselves adrift, governed by the market. There is an outgoing government whose Secretary of Commerce tells us that prices should be governed under FETA, but “For 15 days we have not received flour from the mills with that value.”
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“We are in a distressing situation, because FETA must continue until December 10 but They are not delivering the bag at $3,800 but they deliver another product between $8,500 and $9,000,” added the baker leader.
According to Mora, flour is not the only input that increased up to 40%, “but also fat and margarine. That’s why you have to sell a dozen invoices for $4,000.”
Furthermore, he stated that Some bakeries closed their doors for 15 days, until December 10, to maintain stock and be able to work ahead of the Christmas and New Year holidays.
Increases in warehouses
The head of the Federation of Grocers of the province of Buenos Aires, Fernando Savore, questioned the wholesale chains about the shortage of certain products and accused them of speculating on prices.
In this sense, Savore explained that between post-election Monday and Tuesday, he also registered increases of 30%. “The generic edible is approximately 25%, and what is personal hygiene is 30% or a little more, it is a disaster. “I think that in the middle of all this there is too much speculation,” she said in radio statements.
At the same time, the representative of the Buenos Aires grocers stated that “inevitably you have to make a 25% change in the merchandise because if you don’t stay, our profitability is small, these price jumps pass us by.”
“Our business does not have large deposits if we are going to sell at less than cost or exchange silver, in the middle is the operating cost of the business. If I buy at 10 and sell at 10, my business will lose,” he concluded.