The Master Bakers Association is threatening to increase the price of bread in response to rising costs of inputs. For example, the price of a 50kg bag of wheat flour has spiked 42% from N8,500 in 2017 to N11,100. An increase in the price of bread could negatively impact food inflation because of its disproportionate weight in the food basket.
A possible substitute for wheat flour is cassava flour. Nigeria is the world’s largest producer of cassava with an annual production of 57.13 million tonnes. The production belt cuts across Kwara, Kogi and Benue. The price of garri, the main derivative of cassava has fallen by 8% this year to N6,500.
The attached bulletin addresses these and other issues in the domestic and global commodities market.
Enjoy your read!