Domestic bread makers express concerns about the increasing presence of foreign bakers in the market
The bread industry in Ghana, a fundamental component of the nation’s diet, has traditionally been dominated by local producers.
Despite the growing demand, many of these producers have continued to operate on a smaller scale.
However, recent attention has shifted towards a newly established expansive factory located along the Accra-Tema motorway.
This development has sparked worries within the community, as there are fears that large-scale production could marginalize smaller players.
Traditionally priced at GH¢5 a decade ago, the cost of a loaf of bread has witnessed fluctuations due to changes in exchange rates and disruptions in global markets caused by conflicts in certain international regions.
These alterations in size, weight, and flavor have compelled local bakers to navigate the delicate balance between production expenses and retail prices, all with the objective of reaching a break-even point.
Escalating costs associated with bread production materials have pushed producers to transfer these increased expenses to consumers.
This adjustment has led some local bakers to close their businesses, while others are holding on, hoping for more favorable circumstances.
The bread industry remains a significant contributor to Ghana’s economy, generating employment opportunities across its entire value chain.
On visiting various key streets, Citi News observed retailers near the Kpone barrier actively engaging potential customers, reflecting their perseverance driven by economic conditions despite narrow profit margins.
However, some street vendors mentioned that the current high prices make it challenging to sell a substantial quantity of bread each day, impacting their potential earnings.
Hot Oven Bread has successfully captured a notable market share in the Greater Accra and Volta regions. Nevertheless, the company has faced considerable challenges during its five-year existence, particularly due to the global economic crisis.
Combined with local factors, these obstacles have resulted in rapid and substantial price hikes within a short span.
Fred Kwashie, the company’s accountant, shed light on this journey, highlighting the industry’s profitability while underscoring the issue of high raw material costs, many of which are imported.
Kwashie advocates for protecting local industry players from foreign competition.
He stresses that an industry of this nature should ideally be safeguarded for the benefit of Ghanaians, expressing uncertainty about the government’s efforts to shield them from foreign giants with significant resources.
The landscape of the bread industry has transitioned from small-scale operations to an industrial level, featuring established brands like Hot Oven and A1 bread, as well as emerging players like Amigo Bread, situated along the motorway.
Amigo Bread, a subsidiary of BB Bakery under the Three Dreamer Manufacturing Company Limited, aims to revolutionize the sector through the adoption of advanced machinery. Bismark Ofei-Ansah, the Executive Director, confidently asserts that the demand for bread remains strong, justifying the need for expansion.
Ofei-Ansah acknowledges the challenges associated with high production costs, including factors such as power, water, and taxes.
He advocates for government intervention to address these pressing concerns. Ofei-Ansah’s own bread factory, currently undergoing testing, stands as one of the largest and is set to officially launch in the upcoming weeks.
Amid ongoing debates regarding the entry of both local and foreign participants into the expansive bread market, Paapa Baah, the Administrator of Bread Academy, which specializes in bread production training, advocates for inclusive growth.
While concerns persist about foreign competition, the prevailing sentiment leans towards the belief that there is ample space for all participants within Ghana’s evolving bread industry.
Source – citinewsroom.com
