Ugandan consumers will have to dig deeper into their pockets for bread from Monday, November 2, as bakers announce fresh price increases, citing rising costs of wheat flour, yeast, fuel and transportation.
The Uganda Bakers Association says the price of a 1-kilogramme loaf of bread will increase from Shs5,000 to Shs5,500 at factory level, with the recommended retail price expected to range between Shs6,000 and Shs6,500.
The price of a 500-gramme loaf will also rise from Shs2,500 to Shs3,000 at the factory, while consumers buying from retail shops are expected to pay between Shs3,300 and Shs3,500.
The adjustments are expected to add to the financial pressure on households already grappling with the rising cost of essential commodities.
Speaking at a press conference held at Ntake Bakery in Nalukolongo, the association’s chairperson, Dr Gaster Lule Ntakke, said the decision followed a general meeting at which members reviewed the increasing costs of production before agreeing on the new prices.
Ntakke said bakers had tried to maintain existing prices for as long as possible because they understood the economic challenges facing ordinary Ugandans. However, he said the continued increase in the cost of raw materials and transportation had made the situation increasingly difficult for manufacturers.
“We have tried our best to avoid increasing bread prices because we understand the difficult situation people are going through. However, the situation has become unbearable, and we have been forced to make a slight adjustment to the prices,” Ntakke said.
He attributed the price changes to increases in the cost of wheat flour, yeast and diesel, which bakeries rely on for transportation and, in some cases, production processes.
According to Ntakke, bakers could no longer absorb the additional costs without affecting their operations, prompting the industry to revise its prices to sustain production.
He appealed to consumers to bear with manufacturers, arguing that the adjustments were necessary to keep bakeries operating while maintaining the quality of bread supplied to the market.
Ntakke also urged retailers not to impose excessive mark-ups on bread prices, saying the industry wanted to keep the product as affordable as possible despite the rising cost of production.
He reaffirmed the association’s commitment to producing bread that meets the required measurements and quality standards set by the Uganda National Bureau of Standards.
Isaac Njoroge of Jonisa Bakers Limited said the baking industry remained vulnerable to changes in international commodity prices and foreign exchange rates because a significant proportion of its production materials are imported.
Njoroge estimated that about 80 per cent of the materials used in bread production come from outside Uganda, exposing manufacturers to higher import costs whenever the exchange rate moves unfavourably.
“About 80 per cent of the materials we use to produce bread come from outside Uganda, and the dollar is also expensive,” Njoroge explained.
He said the combination of expensive imported inputs and rising transportation costs had made it increasingly difficult for bakers to maintain prices without compromising the sustainability of their businesses.
Njoroge appealed to consumers to remain patient, assuring them that bread prices could come down if the economic situation improves and production costs stabilise.
He said bakers hoped to return to more affordable prices once the cost of doing business eased.
The Uganda Bakers Association has appealed to the government to address the rising cost of production, particularly fuel and wheat, warning that sustained increases could continue to affect the price of bread.
Bakers argue that higher diesel prices increase the cost of transporting raw materials to factories and delivering finished products to retailers across the country.
They say government intervention to ease fuel costs and address other production challenges would help manufacturers remain in business while keeping bread affordable for consumers.
The latest price adjustments come amid broader concerns over the cost of living, as increases in fuel and transportation expenses put pressure on businesses and household budgets.
Bread is a widely consumed staple in Uganda, making changes in its price particularly significant for households that depend on it as part of their daily meals.
The new prices are expected to take effect on Monday, November 2, although the final amount consumers pay will depend on retail pricing and the outlets from which they purchase bread.
The bread price increase comes against a backdrop of rising production and distribution costs affecting Uganda’s baking industry. Wheat flour, yeast, fuel and transportation are among the expenses manufacturers say have become increasingly difficult to absorb.
The industry’s reliance on imported production materials also exposes it to fluctuations in international commodity prices and the Uganda shilling’s exchange rate against the US dollar. When import costs rise, manufacturers face pressure to increase prices or absorb the additional expenses at the risk of reduced profit margins.
Fuel costs further affect the price of bread because bakeries depend on transportation to receive raw materials and distribute finished products to retailers. These additional expenses can ultimately be passed on to consumers.
The latest adjustment is particularly significant for low-income households, for whom bread is an everyday food item.
