West Australian bakery Mias has been placed into voluntary administration.

The family-owned bakery, which has been trading since 1950, employs about 150 staff.

Mias chief executive Conrad Mias said the low bread price was one of a number of factors leading to the company's financial problems.

He said the introduction of Aldi into the market had led to less demand from other major supermarket chains.

"Obviously with Aldi moving into WA over a year ago, our market's been shrinking since their introduction," he said.

"I don't see how a bakery can make bread and remain viable for 85 cents ... you will not survive over an extended period of time with pricing where it is."

Mr Mias said for bakeries to survive selling bread at that price point, they would have to be selling large volumes.

Mias chief executive Conrad Mias said the Government needed to realise Australia's bakery industry was facing problems. ( ABC News: Angus Sargent )

"There's dire problems with the Australian bread market because I don't think you'll see too many bakeries making money," he said.

"It's similar to the dairy industry, there's going to be casualties and I'm just hoping it's not going to be us.

"Enough is enough. I think the Federal Government should start having a look at the actual impact of this cheap pricing in bread and milk.

"I think the Government's got to realise that there are problems when just about every major bread producer in Australia isn't making enough money."

Mr Mias said he was confident the bakery would continue after the voluntary administration period ended.

Mias called in administrators

WA Insolvency Solutions spokesman Kim Strickland said the company's sole director Mr Mias called in administrators on Tuesday morning.

He said the business employed 130 people at its Canning Vale-based bakery and 20 staff at its West Coast Milling operation in Welshpool.

Mr Strickland said the price of bread was an issue in the current competitive market.

He said the business would continue to operate while they assessed its financial situation.

"The company has the total support of staff, suppliers and customers," he said.

"At the moment we are assessing its financial situation to see what options lie ahead for the company, including a restructure of the business.

"We expect that process to take a couple of weeks."

Mias has been baking preservative-free bread since it was founded by Mr Mias' grandparents in Victoria Park in 1950.