Gov't, baker negotiations on prices break down

EU

Representatives of the Hungarian government, the Hungarian Bakers Association and the National Association of Food Processors failed to reach an agreement on the price of baked goods during negotiations yesterday.

At a press conference following the talks, Fidesz faction leader Antal Rogán said the cheaper vehicle gas prices should have lowered the price of baked goods at the same pace. Rogán elaborated that the price of white bread rose by 58% between 2006-2013, increasing at the same pace as the price of vehicle gas. However, when vehicle gas prices fell by 11% last year, the price of bread dropped by only 5%.

Association head József Septe said that the price of gas accounts for only 3% of the 18-20% cost of logistics in the baked goods industry, adding that the current cost structure of such businesses does not allow for any price reductions.

Rogán also noted that bakeries operated by Albanians and companies registered in Kosovo would come under scrutiny because of the baking association's contention that these businesses rarely register their employees, according to Hungarian news agency MTI.

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