Some bread makers are already closing their businesses and quitting because of rising costs, says Mariyana Kukusheva, head of the National Union of Bakers and Confectioners. She spoke to Radio Varna of the Bulgarian National Radio.
The industry is again asking for 0% VAT on bread. Bakers say this would keep prices affordable and save jobs.
The share of bread's cost that goes on electricity depends on the technology and machines in each firm, from 1% to 15%. Kukusheva believes dearer energy affects up to 10% of the cost. Packaging costs are also rising.
It is impossible to say how much more bread will cost, because producers find it harder and harder to absorb higher costs. Kukusheva does not expect shoppers to see pricier bread on shelves before the end of the year. Retailers, not producers, set the shelf price.
Producers risk having to sell below cost, meaning for less than it costs them to bake the bread. Kukusheva says this could force more firms to stop work.