Bread manufacturers across Uganda, operating under the Uganda Bakers Association, have made an urgent appeal to the government to intervene and curb the escalating cost of production, specifically highlighting the soaring prices of wheat and diesel.
The manufacturers have also called on consumers to bear with them following a decision to increase bread prices nationwide.
Addressing journalists at a press conference hosted at Ntake Bakery in Nalukolongo, industry leaders explained that the price of crucial raw materials, particularly wheat flour, alongside diesel required for machinery and distribution fleets, has surged dramatically in recent months.
The association’s leadership noted that these rising operational expenses left them with no alternative but to adjust wholesale and retail bread rates to keep their businesses viable.
Canon Dr Gaster Lule Ntake, the chairperson of the Uganda Bakers Association, stated that manufacturers had absorbed the surging costs for as long as possible to cushion ordinary Ugandans from additional financial strain. He noted that despite their efforts to hold rates steady, the pressure on production margins eventually became unsustainable, forcing a modest upward adjustment across standard loaf sizes.
Under the updated pricing structure, a one-kilogram loaf of bread previously sold to retailers at Shs 5,000 at the factory level has increased to Shs 5,500. Consequently, end consumers purchasing the one-kilogram loaf from retail shops are now expected to pay between Shs 6,000 and Shs 6,500. A half-kilogram loaf, which previously left the factory floor at Shs 2,500, now costs Shs 3,000 wholesale, with retail prices projected to range between Shs 3,300 and Shs 3,500.
In light of these adjustments, Dr Ntake urged retailers and shop owners across the country not to exploit the situational rate changes by imposing excessive profit mark-ups on everyday consumers. He emphasized that the baking sector relies heavily on diesel fuel both to power heavy bakery equipment and to transport finished goods to retail outlets nationwide, making fuel price surges particularly damaging to the supply chain.
Adding to the sector’s grievances, Isaac Njoroge of Jonisa Bakers Limited, a member of the association, highlighted the industry’s deep reliance on global markets. He explained that roughly 80 percent of all raw materials used in commercial bread production in Uganda are imported, leaving local bakers highly exposed to international supply chain disruptions and foreign exchange volatility. He pointed out that the strength of the US dollar against the local currency has drastically increased the cost of importing essential inputs like wheat flour and baking additives.
The association reaffirmed its commitment to reviewing prices downward as soon as global wheat prices stabilize, exchange rates calm, and local fuel costs subside. In the interim, the bakers continue to petition relevant government ministries to consider targeted tax relief or policy interventions on key agricultural inputs and energy to protect both local manufacturing and consumer purchasing power.