Bakers Try To Absorb Egg Price Increases

Details

Economy

Tuesday, 04 December 2012 02:30

By Carol Williams

Antigua, St. John's - The recent one dollar hike in the price of eggs is already hurting the operation of bakeries that specialise in cakes and other confectioneries.

However, Philip Kapcio - the owner of Philton's Cakery and Bakery - said he has no plans to increase the price of his product.

"I'm going to keep prices stable because it's not going to be fair to the consumer, though I'm a consumer as well," he said.

Negotiations between officials in the Ministry of Agriculture and representatives of the Poultry Association last week resulted in agreement that a dozen eggs will be sold at $9 -- that is, one dollar less than was previously announced.

A follow-up meeting is scheduled for December 6 to determine ways to reduce the cost of production and the price to consumers.

Kapcio, who has been operating his business since 1994, said he is paying $15 more for half a case of eggs.

The situation is worsened by the continual hike in the price of products such as butter, sugar and shortening.

He estimates that the cost of making a cake has increased by around $10 within the last year.

Another baker, Patrick Colbourne, said the increase will not have any major effect on the operating costs of his business, which primarily supplies bread.

Despite this, he disclosed that he and others are also feeling the pinch from the spiraling costs of products critical to making baked goods.

"Baking material has escalated over the past few years and the price has almost doubled for most of the stuff we use," he said.

"Most of the times we try to absorb the cost and keep the customers happy because we can't price ourselves out of the market. Most of us bakers are just barely surviving. What used to be our profit is now going into operating costs."

To cope, he said, some bakeries have resorted to laying off workers and putting others on a shortened work week.

Although the cost of a dozen eggs has increased by just one dollar, it must be noted that this is only at the level of the primary producers.

The markups by supermarkets and other retailers could result in even higher end prices to consumers.

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