~On request of Carl & Sons~
PHILIPSBURG--The Island Government is considering an increase in the maximum price of controlled bread as requested by the management of Carl & Sons Bakery in the beginning of this year. Manager of Carl & Sons Kenrick Housen told The Daily Herald that he understood government is looking at a NAf. 0.50 increase, which would offset the rising prices in ingredients, transport, fuel, utilities and other components that the bakery has to contend with.
Housen said Minister of Economic Affairs Franklin Meyers has been very open with the discussions and progress thus far and he understands that the price increase is going through the appropriate channels.
If granted, the price adjustment would affect only the government controlled bread, namely sliced white bread, sliced wheat bread and lard bread. The last price adjustment came in 2008 after Carl & Sons had stopped producing bread for a short period, seeking increases to offset the same aforementioned cost. The 2008 price increase was the first in about 10 years.
At that time, sliced white bread was increased from NAf. 1.50 to NAf. 2.00 ? an increase of NAf. 0.50 cents, sliced wheat bread from NAf. 2.25 to NAf. 2.50 ? an increase of NAf. 0.25 cents and lard bread from NAf. 1.50 to NAf. 1.80 ? an increase of NAf. 0.30. If the increase is granted, sliced white bread would then cost NAf. 2.50, sliced wheat bread NAf. 3.00 and lard bread NAf. 2.30.
Housen's request to government for an increase is similar to actions undertaken by the Association of Bakers on Cura�ao, which has asked the Minister of Economic Affairs of that country for an increase of NAf. 1.25 in bread prices. The association on Cura�ao told the minister that bakeries are finding it difficult to survive with cost incurred far higher than what the current prices of bread can yield in returns.
"We are trying to maintain an affordable, quality product while at the same time everything's going up," Housen said, adding that the bakery does not offer other products that can offset cost and with the economy slowed down, options for sale of other products (to the hotels primarily) have also diminished. He said he hopes to hear from government soon about the increase.
In 2008 government requested its accountant bureau (SOAB) to assist with the calculation to review the financial information of Carl & Sons, which was submitted at the time. Based on the findings from the review conducted by SOAB and negotiations with Carl & Sons an agreement was reached on May 28th, 2008.
Additionally, some terms and conditions for future price adjustments were agreed upon, which government had hard targeted for process improvement namely: SOAB would assist the Economic Affairs Department in developing a standard model to establish the price of controlled bread, other bakeries would also be consulted in the development of the model to ascertain the appropriate methodology and terms and conditions will also be established to determine price changes and the future process for price changes.
Secretary General of the Ministry of Economic Affairs Miguel DeWeever was contacted on Thursday for comment, but by press time no response had been given to The Daily Herald. DeWeever was also asked via email if any of the aforementioned process improvement actions were undertaken.
Lucy Gibbes of the Department Economic Affairs did confirm that a request from Carl and Sons had been received and "we are in the process of finalizing our findings."
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