7 Sep 2007

New Caledonia governmant subsidises cheap bread

10:21 am on 7 September 2007

The government of New Caledonia is cushioning the rising price of wheat by introducing a new bread, called eco bread.

It is subsidising the new bread, which has been available in the territory's bakeries since this week, with nearly two million US dollars.

The measure was introduced to soften the impact of the rising cost of wheat, which has gone up by 50 percent since the beginning of the year.

Nicole Pehau from the New Caledonian government, says it will make a huge difference to people's pockets, as most residents eat bread as part of their daily diet.


Because of the rise of cereals, we had to find a solution for those with a low income in New Caledonia. In New Caledonia, as French peole we eat quite a lot of bread, So we had to do something for the people to be able to buy this bread.

DUR: 12

Nicole Pehau says a loaf will sell for about 1 dollar fifty US