Bakers Demand Support as Rising Costs Threaten Bread Prices in Greece

• Representatives of the bakery sector warn that the ongoing rise in energy, flour, and transport costs is creating unsustainable pressure on small and medium-sized bakeries across Greece.
• The industry is requesting targeted support measures, including subsidies on electricity and fuel, to prevent more price hikes in the retail prices of bread and other basic products.
• Rising oil prices linked to instability in the Middle East are expected to increase production and transport costs further, adding uncertainty for the coming months.
• Bakers note that bread remains one of the most sensitive goods in the consumer basket, meaning that price changes affect both households and inflation indicators.
• Without intervention, the sector fears closures of small bakeries, particularly outside major urban centers, where operating costs are harder to absorb.

Energy and Flour Costs Push Bakeries to the Limit

According to representatives of the bakery industry, the combination of higher electricity prices, more expensive flour, and increased transport costs has significantly reduced profit margins over the past year.

Bakeries are among the most energy-intensive small businesses, as ovens operate for long hours every day, making the sector especially vulnerable to fluctuations in energy prices.

The recent increase in oil prices, following the disruption in global supply caused by the conflict in the Middle East, is expected to push costs even higher, affecting both production and distribution.

Industry representatives warn that these conditions make it increasingly difficult to maintain stable prices, particularly for basic products that are consumed daily.

Bread Prices Remain a Sensitive Issue

Bread has a special role in the Greek consumer market, not only as a staple food but also as a product closely linked to inflation indicators.

Even small price surges can have a noticeable effect on household budgets, especially at a time when overall living costs remain high.

For this reason, bakery associations argue that supporting the sector is not only about protecting businesses but also about maintaining price stability for essential goods.

They emphasize that in previous crises, temporary subsidies helped prevent sharp price increases, allowing bakeries to continue operating without passing the full cost to consumers.

Small Bakeries Most at Risk

The pressure is felt most strongly by small neighborhood bakeries, which often lack the financial reserves needed to absorb a prolonged cost upsurge.

Unlike large industrial producers, these businesses depend on daily sales and operate with limited margins, making them more vulnerable to sudden changes in energy or raw material prices.

Industry representatives warn that without support, closures may occur in smaller towns and rural areas, where bakeries play an important social and economic role.

Such developments, they note, would affect not only employment but also access to fresh bread, a product still considered essential in everyday Greek life. Therefore, they demand:

• Establishment of a tax-free income threshold of €12,000 for all self-employed professionals, a measure that the sector considers essential to ensure basic economic sustainability for small businesses, allowing them to cover operating costs and personal living expenses before taxation is applied, particularly in a period marked by rising energy prices, increased raw material costs, and reduced consumer spending.
• Abolition of Law 5073/2023 and the elimination of all forms of presumptive taxation, which the sector considers unfair for small businesses, as income is calculated based on assumed profit levels rather than actual financial results, placing additional pressure on bakeries already operating with limited margins.
• Reduction of indirect taxation, including the removal of VAT on basic consumer goods such as bread and the abolition of special consumption taxes on energy, measures that the industry argues are necessary to keep essential food products affordable for households and prevent additional growth in retail prices.
• Immediate reduction of electricity costs to at least the levels recorded in August 2021, together with the introduction of price caps on electricity, natural gas, and heating fuel for small enterprises classified under activity code 1071, as bakeries remain among the most energy-intensive small businesses and are therefore disproportionately affected by fluctuations in energy markets.
• Protection of struggling professionals from service disconnections, equipment seizures, and excessive financial penalties, including the suspension of electricity cut-offs for businesses unable to pay inflated utility bills, the prohibition of confiscation of professional equipment, and the cancellation of interest and surcharge debts owed to tax authorities and banks.
• Targeted financial relief for the sector, with an additional support margin of 30 percent for operating bakeries and 50 percent for those that have already been forced to close, to compensate for the cumulative impact of energy costs, taxation, and reduced consumer spending that has affected the industry over the past few years.

Industry representatives stress that bakeries are facing a combination of challenges, including higher electricity and fuel costs, more expensive raw materials, and reduced consumer purchasing power. The sector is therefore asking the government to introduce support measures similar to those applied during previous energy crises to prevent extra price increases for basic food products such as bread.