Sunday, August 18, 2019

Demand and Supply in the Bread Industry

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Bread is an essential commodity. Hundreds of thousands of people consume it on a daily basis. This means that bakeries must produce and serve hundreds of thousands of loaves of bread on a daily basis. Just imagine how many millions are paid by those who demand for bread.

In recent times, the supply chain in the bread industry failed the consumers. Prices are claimed to be linked to the cost of flour. Government officials have indicated that the price of flour has fallen and that they see no justification in any rise in the cost of a loaf of bread. The authorities have indicated that they have spoken with the producers and are told that their profit margin remains the same and attribute any rise in cost to the middle persons. These middle persons also claim that they are not making any profit. Who then is benefiting from the sale of bread?

It is the ministry of trade that should conduct a scientific study of the bread supply chain and be able to tell the nation what is responsible for the rise in the cost of bread. Sanctions before proper investigation is not the best way of managing supply chain challenges.

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