More dough to bake

Consumers to face new round of increases in baking, counter flour

Anastasia Cunningham, Senior Gleaner Writer

Merchants are predicting a difficult year ahead as Jamaica braces for another round of increases in essential consumer goods.

Effective March 1, there will be a significant increase in the price of baking and counter flour.

"I don't believe we have seen the peak yet on the world market," Derrick Nembhard, managing director of Jamaica Flour Mills, told The Gleaner yesterday. "There will be a gradual increase during the year, and I believe it will peak sometime in May or June. The real concern is what it will top out at."

Consumers have been experiencing constant increases in the cost of goods and services, which are expected to persist as the prices of oil, wheat, grain, soybean, corn and other crucial production commodities on the world market continue to trend upwards. Just recently, the price of meat and dairy products shot up.

Audrey Lecky, president of the Bakers' Association of Jamaica, said price adjustments in baked products would take effect early March. However, she said it would be difficult to put a figure to the increase as it would vary depending on a number of factors.

"This is going to be a difficult time for all of us. With earnings not going up, consumers cannot continue to purchase at the same level. It will be really hard on bakers, too, who will have to find more money to purchase raw materials," said Lecky.

"This is going to be devastating. The reality is that consumers' earnings just cannot meet their needs," said Gassan Azan, chairman of the MegaMart chain of superstores, which includes a bakery in each outlet.

"We at MegaMart are looking at some innovative means in the coming months to work with consumers," added Azan, who recently opened the Sweet Tings bakery in downtown Kingston.

Gary 'Butch' Hendrickson, managing director of Continental Baking Company (National Bakery), one of Jamaica's largest suppliers of baked products, said his company would try its best to keep the increase to the consumer as low as possible.

"We can't say what the increase will be until it happens, so it is just a wait-and-see right now," said Hendrickson.

Karl Samuda, minister of industry, investment and commerce, said he was aware of the pending increase but could not comment on the situation until he was properly briefed.

In noting the pending increases, the Consumer Affairs Commission (CAC) is advising the public that it can take some action to mitigate against the impact of surging food prices.

CAC Executive Director Dolsie Allen said no increase was good news, but persons had to face reality and realise that some things are unavoidable.

"We now have to take a look at things as a family, a nation and practise more prudent budgeting," Allen said.

anastasia.cunningham@gleanerjm.com