Prices remain stable but weak consumption slows

Sales of cakes are declining in this period due to the decrease in purchasing power of the population, ROMPAN president Aurel Popescu. Although the supply in the bakery industry is steady at around 7-7.5 million, the slow consumption of the population is affecting sales. Exports of cakes, which account for almost 10% of production, help to offset this.

Prices for the cakes range from 12 to 80 lei per kilo, depending on filling and grammage. In an interview for Digi24 ROMPAN's president told that he has managed to avoid increasing VAT on cakes and biscuits by working with the authorities to classify them.

Aurel Popescu notes that sales of cakes between Easter and Christmas represent only 5% of the total production of 7-7.5 million cakes. However, he says the industry faces a 10% labor shortage, particularly in finding bakers.

Exports of the cakes help keep the balance, with about 10% of production being shipped abroad. Popescu adds that the industry faces challenges in defining which products will suffer the VAT increase, and is awaiting clarification from the Ministry of Agriculture.