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LKI 2920-045 on support for panadero

JULY 28, 2020 
“ shutdown of  micro and small bakeries shelve LKI plea for   rollback in the retail prices of bread “  
Consumer Group Laban Konsyumer Inc. (LKI) recently stated that based on recent developments  ,   the poor sector  are no longer   eating bread because it is expensive  and they are shifting to rice as well as instant noodles and other substitutes such as boiled eggs and bananas. Micro and Small bakeries are affected and most of them have closed shops . The community  bakers need   support on how they can be able to recover , open again and  get back to their feet soon. Maybe , we can institutionalize  Rolling  stores or mobile  Kadiwa stores  that  sells  branded bread  as well as the Pinoy Tasty and Pinoy Pandesal direct to the community  “. 
Dimagiba suggested  an innovative program  in  what he calls “Borrow and Loan Program”  in the bread sector. Stated otherwise  , it means “ Give and Take”  during this trying time.    That may mean   that the Big Boys of  the bread  industry such as Gardenia, French Baker, Sari  Rote and Marby as well as the flour  industry of San Miguel, Concepcion, Foremost, Liberty   extend and exert efforts in the   the recovery of the bread and bakery  industy   . They should be able to share their rich  resources and treasures  in this lingering pandemic that hits the micro and small community  bakeries in the country. Dimagiba added that the  spirit of collaboration and cooperation should prevail  and  that the stakeholders can be able to formulate a recovery plan amongst themselves  in an effcient, effective and reasonable measures.  Dimagiba recalls that in the past the flour industry  produced and  sold quality flour at reduced prices but  to communuty panaderos , and also extended lenient payment terms.  Big Bakers can in turn share training and expertise in  an  efficient, effective and reasonable manner on a pro bono  basis. He said  the Big Boys should increase the production and market share    of Pinoy  tasty and Pinoy   pandesal  over their own brand.  
Dimagiba added that many experts have advised business to prioritize cash flow than the profit and  loss statement during these times.  The suggested progran is   wholly led and solely by the flour and bread industry.  Every body survives.   
Dimagiba is shelving any plea for price rollback of bread products soon in the midst of the shutdown and closure of micro an small bakeries.    This  economic development hinders the rollback of bread prices . The price of the premium flour have remained at all time low of Php 720.00 per bag from a high of Php 920.00 per bag almost two (2) yers ago. Given that flour is 75 percent of the cost component of bread, the lower prices of flour must translate to overall lower charges to end consumers. The  other raw materials are  sugar, shortening . A trade importer, who remains to be anonymous have scaled down the importation of flour as they are no longer competitive with the low  prices of the local industry. The rule of thumb is actually for every 40 peso per bag  reduction in flour prices, this should be equal to a 1 peso rollback in the retail prices of  bread. . 
The sugggested program  “ is worth its salt and light “, Dimagiba  quipped .  END END