I have long maintained that salaries are not too low in South Africa, rather the cost of living is too high and one of the things that people are paying too much for is bread. It is ridiculous that poor people are paying R12 – R15 for a swollen piece of dough, I mean a loaf of bread.

The problem is that people are buying their bread from multinationals such as Pioneer Foods (Sasko), Tiger Brands (Albany) and Premier (Blue Ribbon). So each loaf of bread includes the delivery cost for a driver and his assistant, fuel, maintenance and insurance of the vehicle, plush offices, fat cat executive salaries, shareholders looking for massive returns and the profit markup of the shop selling it.

Start a bread making business to supply the community directly with bread. You should be able to sell a loaf of bread for between R6 and R7.50 and still make a profit. I think the location of the business is important because you should target a densely populated lower income area.

Ideally South Africa should have various people supplying their community with bread instead of the current setup. In the UK there is an organization called Virtuous Bread / Bread Angels which offers bread courses with the goal of putting a micro bakery in every community. I think this concept is even better suited for South Africa than the UK.

Process
This is a business with a lot of expansion opportunity whether you do it yourself, via partnerships or as a co-op. But let’s not get ahead of ourselves you are going to have to learn to bake bread (or hire someone that can), you will need space for baking as well as equipment such as dough mixers and ovens. Here is a basic guide to get you started.


You have a business idea, where to next?
How to Start a Business from Business Idea