Why you will still pay more for that bread in Kenya

Published 2023년 3월 31일

Tridge summary

Despite a global decrease in wheat prices, Kenyans are expected to continue experiencing a rise in the cost of wheat flour and bread due to increased export expenses resulting from the depreciation of the shilling. This situation is despite the significant drop in international wheat prices from $520 to $360 per tonne. The depreciation of the shilling, coupled with competition among processors and supermarkets, has led to an increase in the price of bread, with supermarkets keeping their in-house bread prices low, resulting in a narrow profit margin for processors.

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Original content

Kenyans will continue paying more for wheat flour and bread despite a 30 percent decline in the global price of wheat as manufacturers say a weakening shilling has made the imports more expensive. The international price of wheat has dropped to $360 for a tonne of grain currently from a high of $520 in May last year, which was the highest cost to be recorded in the last 11 months. Read: Consumers to pay more for milk and bread as prices rise Processors, however, argue that they are spending more to ship in wheat on the back of a depreciating shilling that has made imports expensive despite a decline in the price of the commodity. “There will be no reduction in the price of bread because of a strong dollar that has made the imports even more expensive,” said Bimal Shah, chief executive officer of Broadway Group. Mr Shah said the price of bread was to rise further last year in October by Sh5 but that did not happen because of steep competition between processors and supermarkets, ...

Source: Businessdailyafrica