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ROMPAN: The sector of milling and bakery is most affected of all food industries in Romania
The milling and bakery sector is the most affected of all food industries in Romania, as we have a double price for raw materials, besides the other increases of price for energy, gas and fuel, stated recently the chairman of the Romanian Employers’ Association for the Milling, Bakery and Pasta – ROMPAN, Aurel Popescu.
" ‘We are more affected than the other industries. If everybody has experienced increased prices for energy, gas and fuel, nobody has experienced such expensive raw materials as we do. We have a price which is double against July when harvesting. We buy wheat with 1,450lei/tonne against 850 lei last year. Everybody says that we have a good production of wheat this year, but wheat is a produce traded on the stock exchange at global level and everybody works according to the price on the stock exchange. So, the price on the stock exchange in Chicago or Paris is reflected the second day in the price of wheat in Constanta Harbour. We can gain much and there are not many farmers who own wheat. The wheat in the stock,around 5-6 million tonnes belongs to traders and let’s be realistic: they adapt the price to the global market’ Popescu said.
He says that, despite the issues, the increased prices for miling and bakery products at the level of present costs could lead to the drop in sales in the context of limited purchasing power of the Romanians.
In this context, the price of bread could increase by 10-15% during this period, under the cost of production, after an increase of 10-15% which has already happened. ‘ We have already changed prices by 10 -15% and I think that there will be another 10 – 15%. We are trying to keep prices, but people cannot last one month and a half with higher costs and significant losses. It is the policy of every economic operator and when they observe that there are no money to pay suppliers, there is nothing to do. I tell you, everything has become more expenisve, even the bags we use to cover the bread are 20-25 bani, plus the eco-tax of 15 bani and here you have 35 bani which should be added to a loaf of bread. It is much, and you cannot sell the bread without a bag. I am saying again, I really don’t know what we are going to do’ Aurel Popescu said.
As regards the special cakes for Christmas (cozonaci), the most bought products during winter celebrations, Popescu said that he does not think prices could be kept, as everything has become more expensive. ‘ Oil, for example, has got to 10 lei per liter, against 3 lei something. I think this year we are going to eat more expensive cakes. There is nothing we could do’ he said.
On the other hand, the chairman ROMPAN hopes to get support for the milling and bakery industry from the new government.