The Addis Ababa Trade Bureau has responded to concerns from bakeries by agreeing to increase the price of bead. The
study, which was brought to the Trade and Industry Minister, took into account inflation, the devaluation of the birr, the
price of ingredients, labor and transportation before making a decision.
If the proposal is accepted by the Trade Ministry, bread prices will likely increase between 20 and 80 cents. As a result
100 grams of bread currently sold for 1.30 birr would be sold for 1.50 birr while 200 grams of bread would rise from
2.50 birr to three birr and 300 grams of bread which is currently 3.80 would go to 4 birr.
Recently, Shewa Bakery and Flour Factory PLC wrote a letter to the Ministry of Trade to increase the bread price by half a birr
but the government rejected the idea. The last time bead prices went up was four years ago.
A source in the trade bureau told Capital that the bakeries’ request makes sense but the price increase must be approved by the
Trade Minister. Tshaye Zemuye, General Manager of Shewa Bakery said in a previous interview with Capital that they
submitted a letter to the Ministry of Trade but had not received a response from the government.
“We gave them our justifications increasing the price but we haven’t heard back from them. Except for the price of wheat
that we get from the government all of our other costs have reason. Furthermore not every bakery gets wheat from the
government and they are paying 3 birr for the same amount of wheat they are selling for 1.30 so we need a new price that
is adjusted to the current market.” In related news wheat supplies have returned to normal after previously being cut by 50
percent due to slow procurement of wheat form abroad.
Across Addis Ababa 1,401 bakeries get 120,929 quintals of flour from 40 wheat flour factories. The government sold
wheat to flour companies for 500 birr per quintal and flour companies sold the flour to the bakeries at 796.25 birr per
quintal. (Capital Ethiopia)