Maltese bread to go up by 2c from tomorrow

The price of Maltese bread, so far controlled by price order, is to go up from tomorrow by 2c. However, this is the last time that it is being regulated by a price order.

Sources told The Sunday Times last week that from early next month the bakers' market is to be liberalised and bakers are to operate within a competitive environment.

Lengthy discussions between the Bakers' Co-operative and Minister for Competitiveness and Communications Censu Galea intensified in the past few weeks.

The bakers argued that the price of one of the two essential ingredients for the production of the Maltese hobza, hard wheat, had gone up by about 60c per 50 kg bag and sources said they were demanding an increase of between 3c and 5c.

Bakers were quoted as welcoming the advent of liberalisation in the knowledge that the price will stabilise according to market expectations while ensuring quality is maintained. With prices no longer controlled by the Trade Department bakers will be free to compete to retain their market share.

Market liberalisation comes in the wake of consumer complaints that the weight and quality of Maltese bread has gone down over the years.

Mr Galea last week declined to confirm or deny the decision on the increase, saying that he had met the co-operative on several occasions, particularly throughout the past week. He conceded that there may be a shift in price reflecting the increase in flour.

"On the other hand, we also discussed new options, which within today's commercial realities make much more sense. Throughout the discussions we have safeguarded the consumers' interests in ensuring that any increase will be complemented by high quality standards for consumption, and I believe that through the agreement reached with the co-operative these will be met."

The minister also praised the bakers' approach to the issue, maintaining that they realised that today's competitive realities demanded a change in mentality.

"The Bakers' Co-operative, led by its president, Karmenu Micallef, has discussed all potential options, keeping the interest of consumers very much in mind, and realising at the same time that price has to be complemented by quality," Mr Galea said.