Local bakeries as well as individuals involved in the doughnut business, popularly known as ‘boflot,’ are grappling with the escalating cost of ingredients.
This, they lament, has notably impacted the prices of their raw materials.
In 2017, when Nicholas Nuomonvi, owner of Living Bakery, relocated his business adjacent to the DVLA Achimota office to continue his bread baking business, a 50kg bag of flour was selling for GH¢170.
But he tells Citi Business News that the price of flour has since more than tripled and is now selling at GH¢660.
However, that is not the only critical item in the bread baking business that has experienced hikes. Sugar and margarine have also had their fair share of the hikes, while the cost of LPG also impacts his business.
Nicholas Nuomonvi says the resulting increased cost of operations has led to hikes in bread prices, reducing his customer base. Additionally, he has been forced to lay off workers while also scaling down production.
“Sugar now costs GH¢720, whereas 3 or 4 years ago, it was slightly above GH¢300. The cost of margarine has also surged. Flour is selling at GH¢660; in 2016, it was GH¢170. The increase in the price of these ingredients is taking a toll on my business. It has caused those who buy from me to reduce the quantity they purchase because they are also unable to sell it off. I used to have a car for distribution, but now I have parked it because purchases have declined. I have had to lay off some of my employees,” he told Citi Business News.
The situation is no different for individuals involved in the business of doughnuts, popularly known as ‘boflot.’
Formerly selling at GH¢2, sellers have been forced to increase the price of ‘boflot’ to GH¢3. But they say that is not enough.
They are considering further hikes to maintain operational viability due to the cost of vegetable oil, flour, and other essential ingredients for making the product.
“The prices of ingredients for preparing buffloaf are rising. Customers complain about the size of the GHȼ3 boflot, yet it is sold at GHȼ5 in some places. The increase is difficult to bear. During the Salah festivities, the price of vegetable oil shot up to GHȼ500; it used to cost between GHȼ450 and GHȼ460. Flour is also selling at GHȼ650. You will need about GHȼ12,000 to purchase the flour and oil, but we are unable to break even. You will have to get a loan to fund your next purchase. This is without considering the cost of sugar. We can use the sugar we bought to prepare buffloaf from 2 bags of flour. If the prices of the ingredients continue to rise, we will increase the price of the product. We will reduce the size of the GHȼ3 buffloaf and make the GHȼ5 a little bit bigger,” Elizabeth Oparebea, a boflot vendor, hinted.
For consumers, they are making adjustments to the quantities they purchase.
“In the past, you can use GHȼ5 to buy boflot and porridge. This has affected me. I used to buy buffloaf for all my three children. But when it was increased to GHȼ3, I only buy for myself. I don’t have enough money to buy more,” Mohammed Anass, a vulcanizer, said.
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