Opinion

We will say “bread… bun” – To date, more than 200 bakeries have been closed, say the bakers

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The data comes from the Federation of Bakers of Greece, which requests the immediate intervention of the state

There are more than 200 bakeries that have closed for financial reasons, due to retirement or due to non-successor status. In addition, around 15% accumulate losses and debts and many are thinking, as a way out, to suspend their operation or put a permanent lock.

These results from the data of the Federation of Bakers of Greece which requests the immediate intervention of the state.

In particular, in today’s press conference of the Federation, the problems that the country’s bakers have to face were developed in detail, especially the problem of the cost of electricity, oil and natural gas, but also the cost of raw materials.

The conditions that are formed in the market have the result, as it was said, of leading to a reduction in staff and in many cases to the final closure of the business.

As an example, it was mentioned that while last summer, an average bakery paid 2,000 euros per month for electricity, this year in October it pays 6,000 euros.

As it was underlined, there was an additional subsidy for bakeries as they are energy-intensive businesses, “but until today the decisions are not implemented correctly and very few providers credit the subsidy”, as the president of the Federation underlined, Michalis Mousiosadding that presentations and memos have been made on the subject.

“From October onwards, it is estimated that the electricity bill for each bakery will amount to around 6,000 euros per month. An oven consumes between 8,000 and 20,000 kilowatt hours per month…And of course, we’re only talking about electricity. If we include the increases in natural gas, the situation gets out of hand”, said Mr. Mousios, while adding that the increases in the supply of raw materials are also spectacular, while transport and insurance premiums have increased. He noted that no de-escalation is expected in the near future.

Asked if the situation leads to inevitable increases, the president noted that to cover the consumption of electricity, not including increases in raw materials, the price of bread would have to double. Some small increases are inevitable, he said, but he added that the neighborhood bakery is not a supermarket that can change prices on a daily basis. Neighborhood bakeries have a different kind of relationship with the consumer and a different policy on increases, while, as he underlined, the price of bread is already increasing in supermarkets.

In addition, there is a 20% drop in turnover since the beginning of the year.

The bakers are asking for immediate government intervention to cover the costs with:

  1. Increase in government subsidy on electricity.
  2. Reduction of EFC on fuel
  3. VAT reduction to 6%.

It was reported that this is an industry with 14,400 artisan bakeries that concerns 80,000 directly employed and 70,000 indirectly employed “and a social fabric is created in every neighborhood around the bakery.”

In addition, as noted, the investments in the artisanal bakery over the last 20 years exceed 3.5 billion euros as a renovation costs 50,000 – 250,000 euros and have been done with equity.

In total, according to the numbers, 204 bakeries have closed, most of them (63) in Athens, 22 in Thessaloniki and 10 in Heraklion.

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