Rationalisation in the baking industry

“Raw material prices got 3-4 times bigger, and the price of flour jumped to an irrationally high level, even if it has recovered this year – albeit at a higher level than in the previous period”, informed the president. Energy prices have also augmented and wage costs continued to rise.

There will always be demand for bakery products, so there will always be a need for suppliers. Bakeries producing quality fresh products on a daily basis are in a stable situation.

Just like in the case of all food products, shoppers are reacting to the inflation by reducing consumption: volume sales of baked goods are estimated to have dropped 10-15%. A shift in the shopping basket was also observed, with shoppers increasing the consumption of lower priced breads and buying less from rolls and pastries.

In general demand has grown for sourdough breads, but due to their higher price their consumption is income-dependent. Special diet products are also gaining ground, mainly owing to two factors: food intolerance problems and nutrition trends. If they want to stay competitive, bakeries need to modernise, automate and digitalise. Hopefully the sector will receive enough financial support for these development projects in the coming period, through EU and national development programmes.