The price of basic bread has already risen by around 5–6% in recent weeks, while bakers are warning of renewed pressure on the industry due to higher electricity, natural gas and fuel prices. Following the high electricity prices for businesses at the beginning of November, natural gas has become more than 32% more expensive.
“We operate on a very small margin – 4–5–6%, and we have no way of absorbing any additional costs. The compensation helps,” Dimitar Lyudiev, chairman of the Regional Association of Bakers in Burgas, told bTV.
Bread in Burgas now costs between €0.90 and €0.95
According to Lyudiev, the recent increase in the prices of basic types of bread is mainly due to the higher price of diesel fuel. In recent days, this has been compounded by rising electricity costs.
Standard white or brown bread in Burgas is sold for between €0.90 and €0.95. For the two main types, the increase is in the range of 5–6%. There was a more significant change in price after the return of the 20% VAT rate for bread. According to Lyudiev, during the period when the zero rate was in effect, the product was around 20% cheaper.
Production at one of the major bakeries in Burgas continues around the clock. Traditional country bread is among the products made there. Some businesses use photovoltaic installations, which help limit electricity costs.
Flour prices rise more slowly, while baked goods face stronger pressure
Flour prices rose by around €20 per tonne over the past month. Producers do not currently expect any further increase in the price of the basic raw material.
The increase is more pronounced for baked goods, as butter and cheese are used in their production. The prices of these products are changing more rapidly than those of the raw materials used for basic bread.
Dimitar Lyudiev also noted a change in consumer habits. Basic bread accounts for an increasingly smaller share of consumption, while more people are turning to products they consider healthier.
Compensation will not fully cover costs
The planned state compensation for expensive electricity is important for bakers, but it will not fully cover their costs. The final payments are expected after mid-2027.
For now, it is unclear whether electricity prices for industrial consumers will rise again in 2027. Producers are monitoring the market and do not rule out further price adjustments if energy and transport costs continue to increase.