According to the Finnish Association of Bakeries, both increasing salary costs as well as a sharp rise in the price of grain have contributed to the financial pressures affecting the sector.
The association’s Chairman Jari Elonen says profitability is on the decline.
“Our current cost structure is such that price rises seem inevitable,” Elonen notes.
He points the finger of blame at wage hikes, rising grain prices and the cost of energy. The price per tonne of grain has almost doubled in the past two weeks.
In his view, wholesale prices are likely to grow by 5 to 10 percent.