Community Bakeries Seek Government Help For Funding And Upskilling

The country's community bakeries, distinct from large industrial bakeries that often distribute their products through supermarkets, have appealed to the government for assistance in accessing funds for expansion and upgrades, as well as for upskilling their bakers.

Concerns have arisen regarding the limited financing options, limited opportunities for skills enhancement, and stiff competition from foreign corporations currently challenging local community bakeries.

The plea was raised by the Asosasyon ng Panaderong Pilipino (APP) during its leadership of the World Bread Day celebration on October 16.

This occasion was initiated by the Brussels-based International Union of Bakers and Confectioners (IUBC) to honor the contributions of bakers and their products to society. This celebration aligns with the establishment of the United Nations' Food and Agriculture Organization in 1945, founded to combat hunger, bearing the motto "Fiat Panis" (Let there be bread).

APP President Lucito Chavez expressed concerns about the limited financing options, limited opportunities for skills enhancement, and stiff competition from foreign corporations currently challenging their sector. He lamented the diminishing number of professional bakers in the country.

Chavez called for government financial institutions to provide soft loan packages specifically tailored to small bakers looking to expand their businesses and compete with large corporate bakeries.

He stressed that community bakers will face increasing difficulty in competing with the economies of scale enjoyed by major baking companies unless they have access to the capital necessary to expand their operations.

He highlighted the significance of acquiring equipment and technologies to enhance the production capabilities of their members.

Additionally, he pointed out that large corporate bakeries, some controlled by foreign multinational corporations, have been capturing market share from community bakeries, with corporate bakeries now holding 25 percent of the domestic market share.

Chavez also acknowledged the challenges faced by professional bakers, including foreign competition and the recent pandemic, which have led to a "brain drain" in the local bakery industry.

He proposed the establishment of educational institutions offering four-year college degrees in baking arts and sciences.

Chavez suggested that government universities like UP Los Baños could begin offering these four-year courses in baking. He emphasized that those in the local bakery industry are willing to contribute their expertise and experiences to assist in this endeavor.

Chavez concluded by advocating for cooperation between bakers and the government to develop and preserve jobs in the bakery industry, recognizing that running a bakery involves not only baking but also the need for knowledge in costing, accounting, and other business aspects.

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