Do you know that Istanbul’s municipality subsidizes bread sales to the public? Well, this has been an active program since the 1970’s. The main purpose of this subsidy has always been to offer affordable bread to all. When Istanbul’s Public Bread subsidy first started out, it offered unpacked French style bread. Now, it offers a wide variety of bread and bakery products.
The Istanbul municipality owns and operates Istanbul Halk Ekmek (ihe). The direct translation is “Istanbul Public Bread.” It owns and operates three large scale commercial bakeries. Also, it has over 2000 point of sale locations throughout the city. In addition, it distributes its products to many other super markets like Migros and Carrefour. The output capacity is around 1.8 million loaves a day. What is more, it supplies more than 10% of Istanbul’s bread and bakery needs. Nowadays, demand is increasing due to the slow economy. In addition, the purchasing power of many consumers is waning, so ihe is helping
Many citizens of Istanbul view ihe as providing a valuable service to the public. At least in the minds of people, the poor will not go hungry. Also, with abnormal unemployment, the public is happy people have secure jobs.
What does Istanbul Public Bread (ihe) sell?
- Traditional bread types (white, wheat, rye, sourdough, etc..)
- Specialty bread (sun dried tomatoes, fruit, nuts, etc..)
- Crackers
- Rolls
- Reduced calorie bakery products
- Gluten free and organic
- Sugar free
- Flour
- Baby biscuits
- bread sticks
How much does it costs to buy Istanbul’s public bakery and bread products?
Istanbul Halk Ekmek sells it products at a discount. In fact, its products tend to be 30 to 50% cheaper than the leading brand, Uno. The cheapest loaf of bread (250 grams) sells for 0.75 TL ($0.13). At this price, ever the poorest of the poor can afford to buy bread. Also, organic products are significantly discounted to appeal to health conscious consumers.
Here is a list of products with prices:http://www.ihe.istanbul/urunfiyatlistesi
What are the disadvantages of Istanbul’s public bread subsidy?
- Food waste is a big problem. Thus, you can see bread all over the city in trash cans and on the streets
- Producing bread below production cost; therefore, hurting small bakery’s bottom line
- Large payroll subsidized by the taxpayer
- Turkey needs to import large quantities of wheat from Russia
Recently, the Istanbul municipality (IHK) increased the prices of its bakery products. With this raise, it now helps to offset the inflation effect and other costs. The goal of the municipality is to breakeven without sacrificing quality.
In conclusion, Istanbul’s public bread subsidy will continue to be a popular service for the public. However, I think the cheapest bread prices should be increased so food will not be wasted as much. Even in poorer areas, food waste is an issue.
