| FOR IMMEDIATE RELEASE
May 1, 2008
CONTACT:
Aleksandra Syska
1.800.638.0924
asyska@rbanet.com
McLean, VA – The Retail Bakers of America testified
before the Joint Economic Committee on May 1, 2008, stating
that the impact of high food prices has taken a toll on bakery
owners, leading them to wonder if they will be able to stay
in business or if they will be forced to close their doors.
In response to the rising prices of commodities, retail bakeries
have increased their product prices, attempting to sell their
way out of difficult times. As the economy nears its breaking
point, owners are determining their next survival tactic.
Cutting labor, reducing hours, tightening inventories, and
eliminating waste are options in attempting to seek out economies
of scale.
RBA’s First Vice President, Richard Reinwald, owner
of the 20-year-old Reinwald’s Bakery, in Huntington,
NY, urged Congress to look for a rational policy that would
allow bakery owners to bring their product to the market at
reasonable prices. “The proper balance between food
and fuel is necessary to be sought out so that American families
can enjoy wholesome diets and still live within a reasonable
budget.”
A significant drop in bakery product volume has been common
throughout the country. Consumers, who are now placing bakery
purchases on credit cards, are more frugal. Bakeries are unable
to provide donations to local food pantries, which have relied
on them for support.
According to Senator Charles Schumer, D-NY, Chairman of the
Joint Economic Committee, American families have experienced
an overall 4.5 percent price increase in the last year. The
cost of oil and eggs has doubled. Flour costs have increased
by as much as 32 percent, with milk up by 20 percent. Rye
bread, in short supply and already being imported from Europe,
has also experienced a significant increase in its cost.
Reinwald also spoke today to Fox Business News and has been
interviewed by several newspapers, including Newsday, NY,
regarding this industry crisis. Lynn Schurman, RBA’s
President and co-owner of Cold Spring Bakery, MN, discussed
yesterday on Bloomberg’s “On the Economy”,
the concern of rising food prices in the United States and
the impact it is showing on Americans.
Reinwald, whose bakery produces pies, breads, fancy cookies,
birthday and wedding cakes, stated, “It will be a sad
day for American families when they are forced to celebrate
without a birthday cake.”
About Retail Bakers of America
Founded in 1918, the Retail Bakers of America (“RBA”)
is a 501(c)(6) not-for-profit trade association committed
to the success of the retail baking industry. RBA is the nation’s
premier source for industry information serving its 1,100
retail bakeries, industry suppliers, educators, schools and
student members. RBA was an active participant in the “Band
of Bakers” March on Washington in 2008, stressing the
urgency of the current wheat crisis and calling for a re-assessment
of the infatuation with ethanol production. For additional
information and sample letters for consumers to send to their
congressperson and senators, please visit www.rbanet.com.
###
|
