Bread prices: an expert tells Ukrainians what to expect
1 May 2024 18:22
ЕКСКЛЮЗИВ
Food prices in Ukraine have started to spike again. Compared to 2023, the cost of bread this year decreased by 2.3%, but experts predict an increase in the price of bakery products. Rodion Rybchynskyi, Chairman of the PU “Millers of Ukraine” Rodion Rybchynsky explained to Komersant ukrainskyi 
whether the price of bread will change due to the likely rise in electricity prices.
How much has the cost increased since the start of the large-scale invasion and will the price of bread continue to rise?
I’ll talk about flour prices. The cost of flour includes not only electricity but also other energy components – they make up 3 to 5% of the cost. That is, unless there is a very significant increase, this will be a very small component of the cost of production. Bread producers have more energy components – 30-40%, so of course it will have a greater impact on the price of bread.
But there is another component here, not just the price of electricity. The stability of its supply is more important here. If the bread is already loaded into an electric oven and the process stops, the whole bread will be thrown away, and you won’t be able to bake it again in an hour or two. And this affects the durability of the equipment. If it’s a power surge at the household level, electrical appliances immediately burn, and it’s the same at the enterprise.
So, this is a problem with the price, a problem with the efficiency of the enterprises themselves, the rhythm of work, supply, and so on. This is a very significant problem. That is why I would not focus on the rise in electricity prices – how much will it rise? Let’s say by 15-20%, the main thing is that it will be there at all.
Does the situation with the blocked ports and the problems at the Polish border affect the price?
The ports are no longer blocked. The border has also been unblocked, but it was not blocked for a day. That is, some entrepreneurs have transferred their flows to other border crossings. It is clear that this imposes certain restrictions on logistics and the supply of raw materials and ingredients. For an average citizen, this can be a big problem, but for manufacturers, it is one of the issues that needs to be addressed on a regular basis. We are dealing with it and solving it. We brush our teeth every day, whether we have a toothbrush or not, we will find it and brush it. It is the same here.
