“We have to safeguard Maltese bread because this is available fresh, every day, it has its unique goodness and besides, it is a product of quality with no additives and not matched by many in Europe,” said James Debono, a director at Maypole Bakery in comments about the industry, when asked.
“Small bakeries are part of our culture. They surely must not be lost,” he said.
Bakeries face an uncertain future, with the market being liberalised from the beginning of next year.
Mr Debono pointed out that many were talking of small bakeries closing down, something which he could not understand. But, he added, such talk was putting additional pressure on bakers.
He said that the price of Maltese bread will definitely have to go higher because it is still very cheap, especially when compared with the price of other bread. Meanwhile, the price of all bread will go up with the liberalisation of the market as from January, when bakeries will no longer be receiving subsidies for their bread product.
The expected increase in water and electricity rates will also hit bakeries, just as they will affect other businesses.
People were saying that the new water and electricity rates will double and these costs do not include the price for fuel used to operate ovens, Mr Debono said. Fuel prices have been rising considerably and the light heating oil which bakeries use today costs e0.93 cents per litre, he explained. Bakeries switched to using light heating oil after the price of kerosene, which many had been using, went up sky high.
The latest increase in the price of bread was of e0.03, from August, and this will certainly not make up for the increase in costs being forecast, Mr Debono added.
Meanwhile, he further explained, the prices of raw material including oil, sugar and seeds, such as sesame seeds, have risen considerably, some of them doubling or even tripling.
“At least the price of flour has remained constant for some time now,” he said.
When asked whether price increases affect sales, Mr Debono said that if the product is of a good quality, it will still be bought. He said Maltese bread is one of the very few products which do not contain additives but still taste good. Good quality products are needed to ensure this quality bread, and increases in the prices of raw material had to be reflected in the price of the end product, “a point which must be understood by the consumer,” Mr Debono said.
Referring to competition from Europe, Mr Debono said this did not frighten him and he understood it was inevitable. While acknowledging the fact that competition does affect the demand for local bread, Mr Debono said that the consumer did appreciate the work of bakers.
All businesses, small time or not, face problems but standards of quality have to be met. What has to be taken into consideration is that the Malta market is small when compared to foreign markets so new directives must be introduced gradually, to give small-time bakeries time to adapt.
Another bakery which The Malta Independent contacted was Formosa Bakery of Qormi which specialises in making biscuits and pastries. Since it does not make Maltese bread, Formosa Bakery does not receive subsidies so will not be directly affected by the market’s liberalisation.
The bakery though, has been using two large electric ovens for the past 15 years. While not working at night, the Formosa brothers work between 5am and 5pm. Saturdays and Sundays were not off days as they also prepare items to be sold at supermarkets and they set up a stall at the Marsaxlokk open market on Sundays.
When asked about people’s reaction and whether sales declined when prices go up, the baker replied that at first many are disappointed and sales do drop slightly but things get back to normal soon after. Mr Formosa feels that the work of bakers in general is not appreciated enough.