Whanganui bakers struggling with rising cost of ingredients

Fiona Hannah of Cinnamonui. Photo / Finn Williams

Local bakers are finding it difficult to keep up with rising prices for ingredients.

Local breadmakers SourBros bakery have had to increase the prices of their bread to combat the increased inflation of the ingredients they need, as well as the shipping of those ingredients and power.

SourBros' Matt Ellingham said his business had been dealing with increased inflation for the last year, but that this year it was necessary to slightly increase prices to counteract this.

"I think we've managed well to try and control those costs, but we haven't been able to wear it for any longer," Ellingham said.

Ellingham said a large reason for the increased costs was to cope with fuel costs also rising, with suppliers having to charge more for their produce to counteract the increased costs of shipping.

He also said that the ongoing Covid-19 pandemic has also put pressure on suppliers of imported goods.

This, in particular, is an issue for breadmakers, as according to the Flour Millers Association, last year New Zealand imported 70 per cent of its milling wheat - wheat used in flour production - from Australia.

SourBros is far from the only bakery struggling with ingredient costs.

Cinnamouni's Fiona Hannah said rising prices of dairy products had been a particular issue for her business.

Hannah said the price of cheese has increased by 30 per cent in the last six months, making the production of her savoury scrolls an expensive enterprise.

Similarly, Phearin Keat of the Cactus Creme cafe said that milk companies had increased their prices four times so far this year, as well as a 15-litre box of ice cream going from $30 to $40 each.

Dairy prices were not the only increases the bakers mentioned, as the Canola oil used by the Cactus Creme had gone from $35 a box to $50, and the cardboard boxes Hannah used to pack her cinnamon scrolls had increased in price by 20 per cent.

None of the businesses said they saw prices coming down in the near future.

"Once prices go up I don't see them going down, I've never seen the prices going down on goods," Hannah said.

While neither Keat nor Hannah has had to put their prices up yet as a result, if inflation continues to rise, both will have no choice but to do so.

However, Ellingham said that this can also come with risk.

"It's a fine balance, you don't want to put prices up too much and risk alienating your customers and pricing yourself out of the market but also you have to be sustainable."

For SourBros the increased prices have been met with understanding from their regular customers, Ellingham said, as many people, both consumers and producers, continue to feel the sting of inflation.