Small bakeries in Mexico manage to resist the rise in the price of raw materials

“We have done everything to try to resist increasing the prices of our products, but now we can no longer endure it,” reads the social networks of Mexikan Pan, an artisan bakery located in Iztapalapa, in Mexico City. This business, founded by Nancy Mercado a little over three years ago, withstood the onslaught of COVID-19 and now also the rise in supplies, from flour to butter. However, with the recent rise in raw materials, they are still thinking about how to turn around the high prices, although it has been impossible to contain an increase in the final price. These rises occur while the conflict between Russia and Ukraine seems not to end; instead, the environment continues to put pressure on wheat and corn prices. On March 21, for example, the price of soft red winter wheat on the Chicago Stock Exchange hit a new high, rising 3.1% to $10.97 a bushel, a unit equivalent to 27 kilos. The disadvantage for small producers is that, unlike large companies, they cannot store large ...