It is now official: the baking industry sells the most important baked goods for less than the production cost

By: Tisza Andrea Date: 2018. 10. 15. 21:25

The Agricultural Economics Research Institute (AKI) had analysed the production cost and profitability of the most important baked goods and they found: the price retailers pay to bakers for certain basic baked goods is lower than their production cost. Using data from 2017, they calculated that bakers lose HUF 6.04/kg on white bread, HUF 23.58/kg on semi-brown bread and HUF 0.64 on a bread roll. It is important to note that these products make up for 60-65 percent of total bread and baked good sales.

József Septe, president of the Hungarian Baker Association told: these losses are very difficult to compensate for in the case of white and semi-brown bread, while on a national average bread rolls aren’t loss-making. Balázs Győrffy president of the Hungarian Chamber of Agriculture (NAK) added that it is of utmost importance for bakers to be able to sell their products to retailers at prices that at least cover their production costs.

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