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Most popular products generate losses for bakeries

Food

Bakeries sell their three most popular products - white and semi-brown bread, and water-based rolls - at a loss, data from the Research Institute of Agricultural Economics reveals, according to a press release sent to the Budapest Business Journal.

Bakers lost HUF 6.04 on every kilogram of white bread, HUF 23.58 per kg on semi-brown bread, and HUF 0.64 per kg on rolls, taking into account the purchase and cost prices, the research shows.

Things have got worse this year, according to József Septe, head of the Hungarian Bakersʼ Association, who says that bakeries are not in a position to pass on their increased costs as multinational chains will not accept it. For this reason, bakeries are trying to realize profit on other products, with greater or lesser success, he adds.

Balázs Győrffy, president of the Hungarian Chamber of Agriculture, stresses that the body, which covers the whole food supply chain, pays special attention to responding to problems experienced by its members, countering any unfair practices that may be present in the chain.

"The baking industry employs 20,000 people, producing a basic foodstuff, and its survival is a crucial question of national security as well, as in case of a crisis in this branch, the supply of domestically sourced foodstuffs may be in danger," Győrffy notes.

The chamber will investigate the situation in order to support bakers, according to the press release. Furthermore, the chamber will pay for half of the total costs of the research and will support initiatives by the Hungarian Bakersʼ Association.

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