by Michelle Springer

DOUGH woes across the region are making bakers worry about their living daily bread and at least one is concerned workers will have to walk the breadline.

Barbadian bakers are staying watchful since Trinidad, Jamaica, St Lucia, Grenada and Belize recently announced price increases of about 30 per cent across the board, a figure that reflects the hike in wheat prices on the international market.

Stable flour prices in Barbados will depend on whether Government continues its subvention to consumers.

Minister of Trade George Hutson told the SUNDAY SUN the

matter of extended subsidies was before Cabinet.

If it is not approved, the suppliers ADM Barbados Flour Mills Limited will have to increase the price of flour by 30 per cent on April 14.

Last month Government approved a $501 000 subvention to help buffer increasing cost of wheat across the international market. That ended on March 31.

Thus prices of an entire gamut of locally manufactured flour-based goods, such as salt breads, turnovers, jam puffs, pizzas, biscuits and wedding cakes are also likely to increase unless the subsidies come forth.

"Based on what our principals are telling us, the price of wheat will continue to rise. We're not seeing any let-up with the prices right now, Cecil Hypolite, commercial manager of the mill, told the SUNDAY SUN.

Hypolite was referring to predictions from the March 28, 2008 issue of the Weekly Price Report published by the United States Wheat Associates, which suggested a five to seven-and-a-half per cent increase in wheat prices in June with a decline of similar value in September.

Bakers across the island have been facing challenges since the three price hikes in 2007, the final one being in October where they were expected to pay an increase of 25 per cent.

Some like Cheryl Reid from Cherie's Bakery & Deli were absorbing prices until it became just too much.

"To begin with, from the first inception [of the price increases] I never raised my prices. I was absorbing the cost for a long time. But then when they kept going up I couldn't absorb them any longer," Reid said, pointing out, "I had to put them out to the customer."

Reid, who specialises in cakes, pastries and salt bread, had little choice but to increase her prices.

Before the last increase in October 2007 customers were paying $2.75 for a bag of six salt breads, after which they had to pay $3.25.

"It seems there's going to be another price increase coming from what I'm hearing," she said with some concern.

Reid, who deals directly with Barbados Flour Mills, recalled paying about $40 for a 45-kilogramme bag of flour before the increase.

"Now I'm paying about $71 and change for a bag," she laughed humourlessly.

Weekly demand for her range of cakes and pastries require at least a purchase of ten bags. The $710 incurred has nothing to do with the increased cost of electricity and other inputs, including overheads, that are needed to run her small staff of six.

"I've been fortunate to have customers who understand," she said, considering herself blessed to maintain her list of clientele throughout the rough period.

Increasing costs of the main wheat based component has influenced this baker to diversify her product. In order to ensure her business remains economically viable, Reid has added other flour and non-flour based products such as "floats", roti and cooked lunches to her list of offerings.

A wedding cake specialist who spoke to the SUNDAY SUN on conditions of anonymity said she too was obligated to increase the cost of her products.

"Even though the price increases were making the cakes more expensive to produce I still had to try to control my prices as I don't want to price myself out of the market," she said.

Each product is highly individualised depending on size, flavour, icing and decorations to impact on the overall cost of the price.

Before the October 15 price increase, newly-weds were paying about $600 to $650 for a standard two-tier cake. That will now cost between $700 and $800.

For one that is three-tiered, they would have to pay $900 to $1 100, up from $900.

As she works with only one other person, she doesn't have the added burden of staff to pay. Nevertheless, she also had to reduce expenses to still remain competitive.

"I've had to find ways to keep it affordable and still make the customer happy, like making the size of cakes slightly smaller than before," she said.

This baker was sourcing smaller portions of flour from a retailer and paying $24.75 per 12 kilo bag before it went up to $34.25.

Gray "Doc" Brome of Pizza Man Doc told the SUNDAY SUN another story on how he was coping.

"The prices have affected us tremendously. They have put me at a loss for the past seven to eight months and we've been absorbing them over a year now," he said.

The pizza chain, which uses about 60 bags of flour a week, has been sourcing the base ingredient from Guyana since the price hikes started a year ago.

But even those prices which were once favourable at BDS$54, are now too spicy for the entrepreneur at BDS$86.

"The losses are so great at this point that we have no other alternative than to pass it on to our customers," he said.

These price increases should become effective around the second week of April, he said, stating the pizza parlour could no longer continue to absorb the rising costs.

Pizza Man Doc has three locations around the island and employs about 120 people. Brome warned that if he was not allowed to send up his prices then some of his employees would have to go out on the breadline.

"If we are not allowed to increase the prices we're going to have to let go some of our staff or even close down some of our locations," he said.

Adrian Padmore from West Indian Biscuit (WIBISCO) also indicated the company was experiencing trying times.

"The quantum of the increases have had an impact on our business," he said.

Those increases, he said, were higher than they were able to bear so they had no other choice but to pass some of those costs on to the consumer.

"Most of our products have had some measures of increases over the last 12 months. Our production volumes have been impacted slightly and sales have slowed on some items," he said, thankful at least they haven't had to lay off staff.

There were unsuccessful attempts to get comments from officials at Purity Bakeries and Zephirin's Bakeries Inc.

michellespringer

@nationnews.com