Apr 20 , 2019
Shoa Bakery has terminated its agreement with the government to sell bread at prices set by the government. Shoa, which has 16 branches in Addis Abeba, had to abide by prices set by the government, because it was buying subsidised wheat from the government. Now that the company is buying wheat in the open market, it is free to set the price of its products. The price of 100 grams of bread at the Bakery has risen from 1.3 Br to 2.5 Br, a 92.3pc increase. The decision was made, because the wheat the government supplied is not adequate and deliveries are delayed, according to Grima Tadesse, production and technique administration officer at the Bakery. “A baking machine (oven) worth 40 million Br has been forced to sit idle because of problems in supply,” he added. The government respects the company’s decision, as Shoa has discovered that buying from the market is more profitable for its business, stated the Ministry of Trade and Industry Communications Director Wondimu Filate.
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