Where your money really goes when you buy a loaf of bread

When you pick up a loaf of bread at the shop, only a small slice of the price goes to the farmer who grew the wheat. Studies in South Africa show wheat producers usually get less than 20% of the final price.

The rest is made up of the costs of getting the loaf from the field to your table. Roughly speaking, transport and logistics take about 20%, baking and labour 25%, packaging 10%, and the retailer’s markup around 25%. Other costs like electricity and admin add about 5%.

These are estimates, not exact figures, and they can change depending on the brand and region. But the picture is clear: most of what you pay goes to getting the loaf made, delivered, and sold, not to the farmer.

Pictured above: Bread.

Image source: Pexels

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