5 Sep 2007

Subsidised bread appears in New Caledonia bakeries

10:21 am on 5 September 2007

The government of New Caledonia wants to fight the rising cost of wheat.

Since Monday, a new bread, called eco bread that is subsidised by the government has been in the bakeries.

It costs 130 French Pacific francs or around one dollar 50 US.

This price has been frozen for a year thanks to a subsidy of nearly two million US dollars.

Around 10.000 "eco-breads" loaves are to be produced each day.

This measure is designed to soften the impact of the rising cost of wheat, which has gone up by 50 percent since the beginning of the year.