The Association of millers and industrialists of Senegal (Amis) is not happy with the new government’s decision to reduce the price of bread. As a sign of its disagreement, Amis has announced that it will halt bread production today.

A first consequence of the lack of consensus in the Senegalese government’s approach to lowering the price of staple foodstuffs, notably bread: a production stoppage at the flour mill.  » Association of millers and industrialists of Senegal is committing its 7 members to a withdrawal measure. The millers cannot engage in a scheme to sell at a loss and officially declare a provisional halt to production », they state in a press release of which Le Quotidien has obtained a copy. Amis reminds us: « Article 30 of law no. 94-63 of August 22, 1994 (on prices, competition and economic disputes) formally prohibits us from selling at a loss. It is therefore decided, as of this Monday June 24, 2024, to periodically and collectively halt production in order to slow down the level of losses incurred on a daily basis, until such time as a solution is found to ensure the survival of millers. »

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Amis members say they, like all Senegalese, were informed of the State’s decision, resulting from the National Consumer Council of June 21, 2024, to lower the price of bakery flour from 19,200 CFA francs to 15,200 CFA francs, a reduction of 4,000 CFA francs. « This measure comes at a time when the average cost of wheat is rising steadily and exceeds 300 euros. This reality does not allow us to provide a response based on a reduction in the essential factors of flour production. Technical meetings with government departments revealed that the waiver of customs duties and value-added tax (VAT) would represent 1,355 CFA francs on the price per bag. Under these conditions, the financing of the 2,645 CFA francs difference in the price of flour remains uncertain for milling companies and for all players in the sector. The 4,000 CFA francs reduction has not yet been financed », they note.

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Claude Demba Diop, President of Amis, and his comrades drew the attention of the Ministry of Industry and Trade to the effects of a hasty measure, given the stocks of wheat already in the production circuit and the volumes of flour on sale in distributor networks. But despite these warnings about the unpreparedness of the sector, the cost price of flour announced at the end of the National Consumer Council is well below the actual selling price, and the date of entry into force is a blow to the activity of stakeholders, they note. In their view, « every bag of baker’s flour delivered from the production units constitutes a clear infringement of Senegalese law, in addition to amplifying the losses of the producing companies. Applying the announced prices indirectly obliges millers to subsidize the price of bread ».

A situation which, according to Amis, « will inevitably lead the 7 companies to a programmed and collective bankruptcy ».
By Amadou MBODJI / ambodji@lequotidien.sn

  • Translation by Ndey T. SOSSEH