The bakery complex “Franzeluta”, which is the largest bead maker in Moldova, has to import 30% of the flour it needs in production because the flour made in Moldova is of a poorer quality. The price of flour is increasing and this generates higher losses. Therefore, the company’s administration insists on the necessity of adjusting bread prices, IPN reports.
The company’s director general Victor Cojocaru said the complex annually needs 44,000-45,000 tonnes of flour or 63,000 tonnes of wheat. “Regretfully, the four made from homegrown wheat at local mills is not of the quality we need for pastry, cakes and candies. We have to use imported flour. Now we import flour from Ukraine and Romania. Today we use 70% of home-produced flour and 30% of imported flour. We invited millers and took samples of imported flour, but they didn’t manage to offer that quality,” he stated.
All the bread producers are dependent on a value chain: cost of wheat – cost of flour – cost of bread. “Compared with last year, the price of flour increased, but flour represents a large part of the cost of bread. Today we purchase flour of the highest quality at the price of 5 lei per kilogram, but many producers ask already 5.70 lei. We think that after New Year the prices will be raised again. Most of the energy tariffs also influence us. The fluctuations in the exchange rates also generate losses,” said Victor Cojocaru.
He noted that in August an attempt was made to adjust the prices of bread, but the decision was suspended. The company failed to earn about 10 million lei profit by December owing to the suspension. “Franzelutsa” needs profit to develop, especially because 80% of its equipment is worn out.
According to Victor Cojocaru, the company must be able to sell bread at the real price and must not sustain losses. Compensations should be provided to socially deprived groups so that these coped with possible price rises.
