Analysis Of The Factors Impacting The Consumption And Price Of Bread In Latvia

Type Book
Title Analysis Of The Factors Impacting The Consumption And Price Of Bread In Latvia
Volume 3
Publication (Day/Month/Year) 2011
The aim of the research carried out by the authors was to investigate the factors impacting bread consumption and bread price formation in Latvia. According to the research result, the consumption of bread in Latvia decreases. A decrease in the consumption of bread can be explained by the expensiveness of bread, a decrease in the number of residents, a decrease in incomes of residents, and the substitution of bread with other food products. According to the authors’ calculation, the price of sweet and sour bread rose 60%, the price of wheat bread – 53%, and the price of rye bread – 51% over the recent four years if bread prices observed in December of 2010 are compared with those in January of 2007. This price increase, according to the authors, was a reaction of bread producers on an increase in demand, a rise in population incomes, and a price hike of raw materials. During the research, the authors found that the price of wheat bread is impacted by prices of wheat flour, the retail policy of an enterprise, energy costs, labour costs, the financial situation of an enterprise, its incomes and expenses, the marketing strategy of enterprises, and other factors. The main indicators impacting bread prices are demand, competition, and costs. The research methods used in the present research: the monographic method, the logical and constructive method, induction and deduction, statistical analysis methods, the graphical method, surveying, the demand price method, and the price formation method “average cost plus profit”.

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