An increase from 5 to 10 cents is expected in the coming weeks. Some bakers are broadcasting rising energy prices, rising grain and commodity prices.
“This is unheard of.” The president of the National Confederation of French Bakery and Pastry (CNBPF) does not remember such a complicated year for bakers. Some craftsmen have already started increasing the price of the wand: in Sarthe bread costs about 5 cents more in some stores it signals France Bleu.
Increase in the price of grain and raw materials
In one year the price of wheat has increased by 30%. Again it was a banner year for bakers. As a result, the cost of flour has skyrocketed. This is the number one expense item for craftsmen. Another cost item: paper packaging which is almost out of stock and costs more than last year.
Energy price explosion
Like individuals, bakers are faced with rising energy prices. Gas and electricity cost more. A real problem for a profession forced to use an oven, which sometimes works all day long, is very energy intensive.
“The craftsmen have just discovered their energy bills for the month of September. The increase is significant, after just a few invoices, many of them will end up passing this increase on to consumers,” says Dominique Anract, president of the CNBPF at BFM Business.
Enough to see the price of our wands increase in just a few weeks. Every business is free to set the price of bread. On average, a baguette costs 89 cents in France. The increases, moderate until then, did not allow the bakers to substantially increase their margins. “In 20 years the baguette has fetched only 23 cents. We are a long way from the rising cost of living”, according to Dominique Anract.
Especially since some companies are still suffering from the health crisis. Bakeries located near tourist spots and large businesses did not recover their 2019 turnover.
An increase deemed irreversible by bakers. “Difficult to go back, even in the event of a drop in wheat prices”, according to the National Confederation of French Bakery and Pastry. “Wages have gone up, this increase in the price of bread will barely compensate.” With this increase, the average price of the baguette could therefore reach the one euro mark by the end of 2021.