Increased competition on price and weight of Maltese bread as price of flour increases

Reports of large loaves of Maltese bread being sold in the region of 520g, in addition to the price being increased by som 25 cents per loaf, have raised concerns, particularly among the more vulnerable people in society.

Following reports that the price of a 50kg bag of flour would be increasing by €2, a number of bakers had previously agreed to raise their prices by 24c for large loaves, and 20c for small loaves. This, they claim, to cover rising wage costs and wheat prices.

Maltese bread has traditionally been sold at 600g for a large loaf, and 300g for a small loaf. The predicted changes on these items were of a simple rise in price by 24c and 20c respectively. However, consumers are becoming increasingly concerned about the apparent shrinkage in the size of bread.  

Some people have claimed that a large loaf can weigh as little as 465g – a full 135g less than the 'usual' product.

 

GRTU tried to advise bakers

Contacted by The Malta Independent, the GRTU Malta Chamber of SMEs said it is not representing the bakers.

GRTU CEO, Abigail Mamo said: "We just said we could represent them, and gave them our advice on how to handle the situation after the reports that they would take collective actions. From their side there didn't seem to be any commitment to remedy the situation or do something different."

She further stated that the GRTU offered to represent the bakers because at the time there was a cooperative within the organisation, then when it dissolved everyone went their own way, and very few remained. The primary issue being that the majority of them didn't seem to want to be represented.

 

MCCAA refers to free market

When contacted for comment, the Malta Competition and Consumer Affairs Authority pointed out that the market was liberalised in 2009, affecting not only the price of bread, but also the weight.

"The repeal of the price order on bread liberalised the market not only in respect of the price but also in respect of the weight of the loaf wherein previously the large and small loaves had established prices and weights. This ultimately led to the actual weigh differing from one baker to the other."

"Whilst fluctuations in price and weight might stir uncertainty in consumers, this could be the result of the liberalisation of the market, and individuals competing for customers by varying their product from the previously mandated parameters.

Following the repeal of the 2009 price order, the Authority had, between 2011 and 2012, carried out an exercise with bakeries informing them that the price of bread is to be indicated in both the actual price and actual weight of each product as well as the price per kilo of each product.  Routine inspections are continually carried out in this regard."

The MCCAA also noted that, whilst they did not receive any complaints, they received "queries relative to the increase in the prices of bread from the consumers". These queries referred to questions on how there will be an increase in price when there is an established price and weight on the traditional Maltese bread.

The consumers concerned were given the above explanation, and in those cases where consumers complained that the price was not indicated correctly, were asked to give details of the bakeries or outlets where price indication was lacking.

from The Malta Independent https://ift.tt/2MfpDJW
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