With rising wheat prices, butter and energy, bakers think about increasing the price of their flagship product to save their margins.
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“The baguette is a product everyday. We are therefore always embarrassed to increase it, even if it is justified,” says Dominique Anract, President of the National Confederation of the French bakery. Since the beginning of the year, the gold grain has increased by more than 70%, because of the invasion of Ukraine launched by Russia. The two territories are fourth and leading global wheat exporters respectively. The ports of the Black Sea have since the 24th of February paralyzed, many stocks remained blocked there. This automatically resulted in a soaring in this market and therefore on the flour, essential ingredient of the bread.
“The ton of wheat has risen to 460 euros this month. In September, when it reached 280 euros, it was already unpublished,” recalls Dominique Anract. This situation pushes Dominique Eury, baker in the Paris e Arrondissement de Paris, to think about an increase in prices. In 2021, the baguette sold an average of 90 cents in France, but the cap of a euro could be crossed. “In the medium term, we will not have the choice, it will be played between five and ten centimes by product,” he says.
“The price of butter is untenable”
For the moment, Dominique Eury made no decision, waiting for the bill of his miller. It is in discussion with the latter for a “step” repercussion in order to keep prices for its customers. For its part, Monique Imbert, president of the departmental union of the unions of the master craftsmen bakers and bakers of Bouches-du-Rhône, is reassured: “Our local millers maintain their rates”, Ensures it. For the moment.
Although the flour is at the end of the account between 13% and 15% of the final cost of a wand, it is a significant increase in this context of general inflation. On March 31, the National Institute of Statistics and Economic Studies (INSEE) believed that inflation in France was 4.5% over one year. “We have an increase in everything, wheat is at an excessive price and that of butter is untenable, it took two euros per kilo,” says Dominique Eury.
Essential for pastries and pastries, this product has also not escaped inflation. The National Interprofessional Center for the Dairy Economy indicated an increase of 69% over one year in mid-January. Added to this is the increase in electricity bills, for ovens, and fuel, as part of their deliveries for some. In January 2022, INSEE stated that energy had increased by 19.9% over one year, including 24.3% for petroleum products.