Local bakeries and individuals involved in the doughnut business, known as ‘boflot,’ are struggling with the rising cost of ingredients.
This has significantly affected the prices of raw materials, leading to increased operational costs.
Nicholas Nuomonvi, owner of Living Bakery, moved his business near the DVLA Achimota office in 2017, when a 50kg bag of flour cost GH¢170.
Now, the same bag sells for GH¢660, more than three times the previous price.
Nuomonvi shared that the price hikes are not limited to flour; sugar and margarine have also seen substantial increases, along with the cost of LPG.
“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,” he told Citi Business News.
These rising costs have forced him to raise bread prices, reduce his customer base, lay off workers, and scale down production.
The situation is equally challenging for ‘boflot’ sellers.
Formerly sold at GH¢2, they have had to raise the price to GH¢3, but this has not been sufficient.
Elizabeth Oparebea, a boflot vendor, explained, “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.”
She highlighted that the price of vegetable oil during the Salah festivities increased to GH¢500, further straining their business.
Consumers are also feeling the pinch, adjusting the quantities they purchase. Mohammed Anass, a vulcanizer, shared his experience, “In the past, you could 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.”
As ingredient prices continue to rise, both bakeries and boflot sellers are considering further price hikes to maintain operational viability.
The increasing costs are impacting not only businesses but also consumers, who are forced to cut back on their purchases.
Source: www.ghanaweb.live