SA bakeries feel the squeeze again as new product costs soar

A popular Adelaide bakery has revealed how it is cutting costs as prices for key ingredients soar.

The cost of staple ingredients is continuing to burn a hole in the pocket of SA bakeries as prices of olive oil and chocolate soar.

With olive oil prices skyrocketing earlier this year, chocolate is the latest ingredient to have its price hiked due to global shortages.

Prove Patisserie co-founder Anna Rogers revealed the price for olive oil had doubled over the past year, costing between 14.25-$21.48 in July compared to $9.97 the year prior.

The price of chocolate has also gone up, increasing from $14 to $18.5.

“Chocolate has definitely had a sharp increase as well, and that’s probably been the last significant cost increase of about 30 per cent.

“I know quite a few of other people are switching for lesser known brands (generally) or trying to save costs where they can.”

Flour now costs $1.68, rising up 11 per cent from $1.57, with milk increasing 5 per cent from $3.90 to $4.10.

Megan Bowditch and Anna Rogers at Prove Pattiserie in Stepney. Picture: Matt Loxton

There has also been an increase in equipment and transport costs since Ms Rogers opened the business in 2020.

“The cost of pieces of machinery have gone up quite significantly [and] there’s definitely been increase costs with transportation.

“As a small business, you definitely see where all of those costs sort of come in.

“Some places would have free delivery when we started, and now they’re adding that cost on to us because it’s a very real cost for them.”

Ingredients at Prove Pattiserie. Picture: Matt Loxton

The Stepney bakery prides itself on using local produce and has been able to cut costs by using produce like fruit while its in season.

“One way that we try and manage our costs is by using seasonal produce because when it’s in season, obviously there’s a lot of it.

“So we will steer clear of having a strawberry on a Danish in the middle of winter because that’s obviously not going to be local.”

Despite rising costs across the board, the business has been able to triple its staff since relocating and expanding their operations to include bread and retail.

“There’s definitely been a fairly rapid growth period in our business,” Ms Rogers said.

“We went from about five people, and then needed to scale that up so that we could add the bread side of the business, plus the retail as well to about 15 staff.”

As the cost of living crisis continues, Ms Rogers was “optimistic” that the stage three tax cuts brought into effect last month would provide some much needed relief.

“Hopefully it will ease some of that pressure for us to be able to bring that little bit of joy as an affordable, attainable, small luxury into people’s lives.”