Senfour Modern Bakeries Association of The Gambia (SMBAG) has assured of their readiness to dialogue with the government of The Gambia to find possible solutions to the current issues surrounding bread prices in the country.
“We remain committed in working with the government and the Gambian community to ensure the bakery industry remains healthy and beneficial for all its stakeholders,” the press release stated.
The release said the bakers have met diligently and in good faith with several government offices to address this critical matter.
The release read that “Our sole purpose in engaging these officials was to ensure the matter is resolved in a way that consumers will be minimally impacted. In keeping with that purpose, we look forward to continuing to work with the government as we find permanent solutions for this urgent matter.”
The press release encourages all customers to buy directly from their local bakeries, as it will significantly reduce the burden to both manufacturers and retailers; stating that this will also give retailers more control over their businesses and allow them to retail at favorable rates.
“Although it is convenient to blame increased prices on bakery owners it is crucial to comprehend the full picture. When bread is sold at D7, the average profit breakdowns are as follows; D4.50 for production, 50 Butut bakery profit, D1.25 Biker’s profit, 75 Butut shopkeeper’s profit,” the release stated.
“To that end, we are asking consumers and retailers to help us identify these areas by contacting us at 247-2445. We will direct you to your nearest bakery or make arrangements to have bread deliver in areas where bakeries are not accessible,” the release stated.
“It is also important to note that capital investments for bakery owners range from 3 million to 6 million Dalasis versus the cost of a motorcycle or bicycle for bikers. Unfortunately profit margins this low is unsustainable for bakery owners who also have to consider equipment replacement and breakdowns and other expenses involved in supporting and growing their business. Our profits have reached this level because we were forced to give in to the aggressive demands of bikers (suppliers) that deliver to the public. In fact, wholesale prices have dropped so low that it has created a major economic crisis within bakeries. Product delivery is a huge expense in this industry which can be better managed,” it stated.
It also said bakers absorb a large portion of savings that could be passed to consumers where retailers reduce their ability to offer lower rates to consumers when they insist on using suppliers.
In the same development, Ahmed Wazani, proprietor Chakaraa Bakery who have over 46 employee, said that there is a massive increase on production materials.
He added that in May 2018 a bag of flower was D895 and April 2019 it rises to D1250. Also last year April diesel was D42 and this year’s April is is over D64.
According to him, all production items for bread in the country have increased including salt, noting the market free and proprietors own their businesses.
“If you want to sell your bread at D3 or D 100 is up to you, but with the increase in everything, I do not understand why the interfering and not addressing the cause,” Ahmed Wazani pointed out.