The Uganda bread price increase has pushed the factory price of a one-kilogram loaf from Shs5,000 to Shs5,500, with bakers blaming rising wheat flour, fuel and transportation costs and calling on the government to intervene.
The Uganda Bakers Association announced the adjustments during a press conference at Ntake Bakery in Nalukolongo, where industry representatives said manufacturers could no longer absorb rising production expenses without adjusting their prices.
A half-kilogram loaf has also increased from Shs2,500 to Shs3,000 at factory level.
The association expects retailers to sell one-kilogram loaves for Shs6,000 to Shs6,500 and half-kilogram loaves for Shs3,300 to Shs3,500.
The association did not specify when the new factory prices took effect or whether all bread manufacturers in Uganda had adopted the changes.
Association chairperson Canon Dr Gaster Lule Ntakke said manufacturers had tried to maintain existing prices despite rising production expenses, recognising the financial difficulties many Ugandans face.
“We have tried our best to avoid increasing bread prices because we understand the difficult situation people are going through. However, the situation has become unbearable, and we have been forced to make a slight adjustment to the prices,” Ntakke said.
The association attributed the changes to higher wheat flour prices, fuel costs and transportation expenses, which affect both production and the delivery of bread to the market.
Diesel is used to transport bread and also supports some production processes, making fuel costs an important factor in the industry’s operations.
The bakers want the government to address rising fuel prices, arguing that this would help manufacturers remain in business while keeping bread affordable.
The cost of bread production in Uganda is also linked to the industry’s reliance on imported materials, according to Isaac Njoroge of Jonisa Bakers Limited, who is a member of the Uganda Bakers Association.
Njoroge said approximately 80 per cent of the materials used to produce bread come from outside Uganda, exposing manufacturers to exchange-rate fluctuations and the cost of purchasing imported supplies.
“About 80 per cent of the materials we use to produce bread come from outside Uganda, and the dollar is also expensive,” Njoroge said.
His explanation highlights another pressure facing Uganda’s bread manufacturers: imported production materials can become more expensive when exchange-rate movements work against local buyers.
With consumers likely to pay more for bread, Ntakke urged retailers not to impose excessive mark-ups on the announced factory prices.
The association’s expected retail ranges provide a guide, but they do not establish what every shop is charging or confirm uniform pricing across the country.
For households that regularly buy bread, the increase adds to everyday food expenses.
However, the association did not quantify the likely effect on household budgets, bread consumption or bakery revenues.
Njoroge said manufacturers hoped bread would become more affordable if the economic situation improved and production costs stabilised.
For now, the industry’s immediate concern is the pressure that fuel, transportation and imported materials place on production, alongside the need to keep businesses operating.
The association’s appeal to the government centres on rising fuel prices, which it says contribute to the cost of manufacturing and distributing bread.
The Uganda bread price increase leaves consumers facing higher costs as manufacturers seek relief from rising production expenses. Whether bread becomes more affordable will depend on how those costs change, with the association hoping that stabilisation will eventually allow prices to fall.
