Mar 2007 Financial News

‘Special’ in NFM flour prices ends

Mar 06, 2007

Consumers are likely to be hit with increases in the price of bread as the price of flour to bakeries is set to increase from today.

Several bakeries said they were informed yesterday by agents of the National Flour Mills that they would be required to pay the full list price for the flour they purchased from the NFM.

One proprietor said that since the last price increase on December 12, 2006, bakeries had been offered a special price which was less than the list price for two brands of flour used by the bakery trade.

On a 45 kilogram bag of National Bakers Flour with a list price of $139.95, the bakers were offered a special discounted price of $120.53. A 45 kilogram bag of High Gluton Baker’s Flour with a list price of $139.05 was sold to the bakers at $125.90.

The bakery owner who spoke to the Guardian said the NFM agent said the discount had ended.

She lamented the impact the increased prices would have on business, complaining that bakeries have faced increases in the prices of a number of inputs in recent times, among them increased costs of electricity, milk, icing sugar and labour. She said that in addition to rising labour costs, bakers are having increased difficulty in recruiting labour.

Chief executive officer of National Flour Mills Neil Rolingson confirmed the end of the discounted price to bakeries, but said he did not think the bakers had any cause for complaint, adding that it was just like any promotion a business might offer to its clients. He said it was a special and a special is not a permanent fixture.

I don’t think they have much of a case,” he said.

Source:
The Trinidad Guardian
Business, Page 17
Tuesday, March 6, 2007.
http://www.guardian.co.tt/business5.html