Rising cake cost due to Ukraine-Russia war

PETALING JAYA: With the Ukraine-Russia war not showing any sign of easing, traders and bakers in Malaysia are being asked to prepare themselves for a shortage in flour as well as a price hike.

Johor bakery, biscuit, confectionery, mee and kuay teow merchants association president Chink Poh Cheng said flour mills had informed businesses that supply of flour has to be cut down by 30% to 40% due to the shortage.

“The factories are negotiating with traders on reducing their supply as they cannot fulfil our demands.

“They are trying to avoid shortages. This is difficult for all of us,” said Chink.

Ukraine and Russia are the world’s biggest exporters of wheat, and the ongoing conflict has resulted in a shortage of flour worldwide.

He said flour mills had already begun increasing its prices this month.

“The price of flour went up by RM5.50 for a bag (25kg) this month and the latest reason is because the war has affected the supply chain.

“In the past year, flour prices increased due to the Covid-19 pandemic. Our members had just started to recover from the pandemic this year as things appear to be better. But now, the Ukraine-Russia situation is a new issue that we have to face.

“It is not just flour prices – we traders are also dealing with increases in the price of cooking oil, petrol and more, and these are all a result of the conflict,” said Chink.

Bakers too are feeling the pinch from the flour price hike.

A home baker from Kuala Lumpur, Nur Assuhanis Ahmad, 30, said the price of the flour she uses for baking increased rapidly in March.

“Fifteen kilos of premix flour that used to cost RM220 previously now costs around RM245,” she said.

“Since the cost of goods have gone up, I had to increase the prices of my cakes. But that has caused me to lose some of my customers.”

Aside from that, Nur Assuhanis said she could previously rake in RM6,000 to RM10,000 in sales but now it is difficult to even get RM3,000 a month.

Another home baker who declined to be named said the increase in flour prices following the war has forced her to increase the price of the cakes and cookies for Hari Raya.

“Customers must also understand. Our cost is increasing and we need to make some profit to survive too. We cannot be breaking even or making a loss.

“It is not that we are simply increasing the price to burden them,” she said, adding that she has increased the price of a jar of cookies by RM5.

However, Co-founder of Heart & Halo Vegan bakery, Abhimanyu Arunatheym said he has not seen any increase in flour prices.

“I wouldn’t say the cost of vegan ingredients are the same, but the cost of flour has remained the same.

“Vegan ingredient prices are generally on the high side and can be a little volatile.

“But generally, I’ve not seen a direct consequence of the war to our costing for now,” he added.