Bakers assure that the cost of the main imported inputs have increased by up to 60%. The war between Russia and Ukraine complicates the situation.
This Monday, March 7, 2021, members of the Bakers Union of Ecuador held a sit-in near the Carondelet Palace, in the center of Quito. The main concern of the union is that the costs of the inputs for the elaboration of the bread have had a strong increase in recent weeks.
For example, the 20-liter can of oil went from $24 -until December 2021- to $36 so far in 2022. 50 kilos of butter cost $74.9 last year, but now they reach $115. Also, the 50 kilos of flour they went from $30 to $40 and the 500 gram block of yeast had an increase of between 20 and 30%.
Wilson Flores, owner of Panadería Erick in Guayaquil, commented that last year the justification of wheat importers for the increase in products was the rising freight prices due to the pandemicbut this year everything points to the effect of the war between Russia and Ukraine. “Supposedly this is affecting wheat production and they announce a rise of up to $50 at the end of June,” he said.
In this scenario, and to cover costs (which includes the 60% increase in all raw materials), the public price of popular bread from $0.12 should be increased to between $0.20 and $0.25.
Request for direct import of supplies
Elena Cacuango, coordinator of the Union of Bakers of Pichincha, explained that the request to the President of the Republic, Guillermo Lasso, is to allow the possibility that the associations import directly the main production inputs. This is intended to somehow reduce the impact on costs.
“The economy of the Ecuadorian people cannot take any more. We are aware, we are part of the people, we want to choose to import raw materials, especially fat and flour, which is what has risen in the highest percentage, ”he assured. In other words, they are not directly asking for an increase in consumer prices, but they warn that without aid this scenario would be inevitable.
In May 2021, a few days before he took power William Lasso, that same Union of Bakers of Ecuador, which brings together representatives from several provinces such as Guayas, Azuay, Esmeraldas, Carchi, Loja and Pichincha, staged protests to raise the price of popular bread from $0.12 to $0.20.
Those demonstrations were deactivated after a short time, but now they return amid the news that the annual inflation in Ecuador reached the 2.71% during February 2022. (JS)
