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Argentina’s Bakeries Report Sharp Sales Collapse and Thousands of Closures

Sector leaders say collapsing household purchasing power and rising flour and utility costs have halved bread sales and forced many shops to cut output.

Overview

  • Mid-July sector estimates put bread consumption down about 50–60%, roughly 2,850 bakery closures nationwide, and an estimated loss of around 17,000 jobs.
  • Sales of pastries and other nonessential baked goods have fallen far more steeply, with sector figures showing declines near 80–90%.
  • Many bakeries are operating at roughly half their capacity and customers now buy smaller portions instead of kilos, a change that bakery leaders link to falling incomes.
  • The industry blames the squeeze on rising input and operating costs—especially more expensive flour and higher utility tariffs—compounding the drop in demand.
  • Bakers report growing social strain as retirees skip bread to pay for medicines and more people ask for leftover food, a trend that could drive further closures and job losses if conditions persist.