Gardenia hikes bread production by 30%
Published Apr 13, 2020 12:00 am
By Bernie Cahiles-Magkilat
Gardenia Bakeries, the country’s largest bread maker, has ramped production by 30 percent to cope up with the high demand for bread and bread products even as the company urged consumers to stop hoarding as this creates unnecessary shortage of bread in groceries and supermarkets.
Simplicio P. Umali Jr
Simplicio Umali Jr., president and general manager of Gardenia Bakeries Philippines Inc., said they have been operating 100 percent capacity or 30 percent higher than 70-80 percent capacity pre-coronavirus level.
They no longer shutdown their plants unlike before just to cope with the unusual high demand.
“We are delivering daily and all our factories are operating 24 hours a day but consumers are buying more than usual creating this unnecessary shortage,” Umali told Business Bulletin.
Umali, however, admitted there are a few areas that they encounter problems as some checkpoints restrict the movement of vehicles.
While the company is experiencing strong demand, Umali said they are also experiencing 20-30 percent increase in operating cost because 30 percent of their workers cannot report for work. As such, most of their workers have to render work for 12 hours a day.
To encourage workers to report for work, they offer daily allowance on top of their overtime pay and provide personal protective equipment. They also provide shuttle services for workers. At least 80 workers are staying at their factories and are provided sleeping quarters and food.
In terms of supply, Umali said they have enough supply that can last them for two to three weeks.
The Bureau of Customs had encountered difficulty in their computer systems earlier but the Inter-Agency Task Force has facilitated for the clearance and release of their imports. Gardenia’s ingredients like yeasts and product improvers are mostly imported.
“We have sufficient inventory for two to three weeks and IATF is facilitating our clearance at Customs. We are in touch with suppliers for our packaging because some of them have stopped operating,” he added.
They have also encountered tightness in supply of sugar because some suppliers were not able to operate, but the situation is improving, he said.
In terms of flour, the main bread ingredient, Gardenia has stable supply from different millers, which have been experiencing lower demand because some bakeries have temporarily closed down operations.
“There is no real shortage and we do not see shortage except for high demand creating this unnecessary shortage,” he stressed.
Meantime, the Philippine Association of Flour Millers (PAF¬MIL) said there is ample supply of flour at steady prices.
“There is enough bread in the market for everyone. Bakeries continue to produce bread and other bakery products to meet consumer demand. We also have enough flour and deliveries to bakeries remain unhampered as flour trucks and other food delivery vehicles were issued passes by the Inter Agency Task Force on Emerging Infectious Diseases (IATF-EID), the group tasked to oversee the government’s response to the Covid19 pandemic” said PAFMIL Executive Director Ric Pinca.
Aside from the big bakers, Pinca said community bakeries or the “mom and pop” type bake shops in residential neighborhoods also have ample bread and flour supply to meet the country’s normal demand for bread.
The millers, according to him have three months inventory of wheat and flour at any given time while forward purchases of the raw material wheat have been made, thus assuring the country of continuous supply of wheat all year round.
“In fact, as of now, there is a vessel unloading 50,000 metric tons of wheat grains at the Manila anchorage for flour mills along the Pasig River. Several more vessels are expected at the end of the month in other ports in the country,” he said.
On the shortage of flour in small packages in the supermarkets, Pinca said this is largely a distributorship issue stressing that millers normally deliver directly to distributors not to retailers.
“For the one-kilo packed all-purpose flour we do not really produce that much for supermarkets because that is a small market and the packaging is expensive,” he said.
To avoid shortage of bread supply in supermarkets, Pinca said consumers should only purchase one or two days’ supply of bread and not hoard this basic commodity as doing so would deprive the others of their own needed requirement at this time when everyone’s cooperation is necessary to get the country past the Corona virus pandemic.
“People are buying more than usual number of loaf bread and pan de sal that grocery shelves are emptied of loaves and buns that normally occupy so much store shelf space,” he said.
Meanwhile, Pinca said wheat flour millers have been providing bread to Covid19 frontliners in hospitals and military and police forces manning the checkpoints in various locations in Metro Manila.
“PAFMIL member companies continue to provide much needed support to needy communities, doctors and nurses in various hospitals and to the government’s uniformed personnel manning Metro Manila’s entry points”.
“We believe that it is in times of crisis like this Corona virus pandemic that the business community should extend a helping hand to those who need the help most, especially the less privileged groups and those leading the fight against the spread of the pandemic”. PAFMIL is privileged to contribute its share in this effort, Pinca added.
Among the recipients of PAFMIL’s assistance are the ABS-CBN Foundation, policemen of Northern Police District, Southern Police District, Eastern Police District, V.Luna Medical Center, Fort Bonifacio Hospital and Las Pinas General Hospital. PAFMIL has also allocated bread for the Rizal Memorial Coliseum Covid19 Center once this facility operates this week.
Simplicio P. Umali Jr
Simplicio Umali Jr., president and general manager of Gardenia Bakeries Philippines Inc., said they have been operating 100 percent capacity or 30 percent higher than 70-80 percent capacity pre-coronavirus level.
They no longer shutdown their plants unlike before just to cope with the unusual high demand.
“We are delivering daily and all our factories are operating 24 hours a day but consumers are buying more than usual creating this unnecessary shortage,” Umali told Business Bulletin.
Umali, however, admitted there are a few areas that they encounter problems as some checkpoints restrict the movement of vehicles.
While the company is experiencing strong demand, Umali said they are also experiencing 20-30 percent increase in operating cost because 30 percent of their workers cannot report for work. As such, most of their workers have to render work for 12 hours a day.
To encourage workers to report for work, they offer daily allowance on top of their overtime pay and provide personal protective equipment. They also provide shuttle services for workers. At least 80 workers are staying at their factories and are provided sleeping quarters and food.
In terms of supply, Umali said they have enough supply that can last them for two to three weeks.
The Bureau of Customs had encountered difficulty in their computer systems earlier but the Inter-Agency Task Force has facilitated for the clearance and release of their imports. Gardenia’s ingredients like yeasts and product improvers are mostly imported.
“We have sufficient inventory for two to three weeks and IATF is facilitating our clearance at Customs. We are in touch with suppliers for our packaging because some of them have stopped operating,” he added.
They have also encountered tightness in supply of sugar because some suppliers were not able to operate, but the situation is improving, he said.
In terms of flour, the main bread ingredient, Gardenia has stable supply from different millers, which have been experiencing lower demand because some bakeries have temporarily closed down operations.
“There is no real shortage and we do not see shortage except for high demand creating this unnecessary shortage,” he stressed.
Meantime, the Philippine Association of Flour Millers (PAF¬MIL) said there is ample supply of flour at steady prices.
“There is enough bread in the market for everyone. Bakeries continue to produce bread and other bakery products to meet consumer demand. We also have enough flour and deliveries to bakeries remain unhampered as flour trucks and other food delivery vehicles were issued passes by the Inter Agency Task Force on Emerging Infectious Diseases (IATF-EID), the group tasked to oversee the government’s response to the Covid19 pandemic” said PAFMIL Executive Director Ric Pinca.
Aside from the big bakers, Pinca said community bakeries or the “mom and pop” type bake shops in residential neighborhoods also have ample bread and flour supply to meet the country’s normal demand for bread.
The millers, according to him have three months inventory of wheat and flour at any given time while forward purchases of the raw material wheat have been made, thus assuring the country of continuous supply of wheat all year round.
“In fact, as of now, there is a vessel unloading 50,000 metric tons of wheat grains at the Manila anchorage for flour mills along the Pasig River. Several more vessels are expected at the end of the month in other ports in the country,” he said.
On the shortage of flour in small packages in the supermarkets, Pinca said this is largely a distributorship issue stressing that millers normally deliver directly to distributors not to retailers.
“For the one-kilo packed all-purpose flour we do not really produce that much for supermarkets because that is a small market and the packaging is expensive,” he said.
To avoid shortage of bread supply in supermarkets, Pinca said consumers should only purchase one or two days’ supply of bread and not hoard this basic commodity as doing so would deprive the others of their own needed requirement at this time when everyone’s cooperation is necessary to get the country past the Corona virus pandemic.
“People are buying more than usual number of loaf bread and pan de sal that grocery shelves are emptied of loaves and buns that normally occupy so much store shelf space,” he said.
Meanwhile, Pinca said wheat flour millers have been providing bread to Covid19 frontliners in hospitals and military and police forces manning the checkpoints in various locations in Metro Manila.
“PAFMIL member companies continue to provide much needed support to needy communities, doctors and nurses in various hospitals and to the government’s uniformed personnel manning Metro Manila’s entry points”.
“We believe that it is in times of crisis like this Corona virus pandemic that the business community should extend a helping hand to those who need the help most, especially the less privileged groups and those leading the fight against the spread of the pandemic”. PAFMIL is privileged to contribute its share in this effort, Pinca added.
Among the recipients of PAFMIL’s assistance are the ABS-CBN Foundation, policemen of Northern Police District, Southern Police District, Eastern Police District, V.Luna Medical Center, Fort Bonifacio Hospital and Las Pinas General Hospital. PAFMIL has also allocated bread for the Rizal Memorial Coliseum Covid19 Center once this facility operates this week.