LKI 2020-045 PRESS STATEMENT
JULY 28, 2020
LABAN KONSYUMER APPEALS FOR ‘ BORROW AND LOAN PROGRAM ‘ AMONGST THE
BREAD INDUSTRY STAKEHOLDERS
“ 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