Bread prices may rise in Ukraine: experts explain the reasons
13 August 15:52
The price of bread in Ukraine may rise in the fall, but the price of grain will have less impact than other factors. This was stated by Denys Marchuk , Deputy Chairman of the All-Ukrainian Agrarian Council , in a commentary to "Komersant Ukrainian".
According to him, wheat and flour account for only 20-25% of the cost of bakery products. This year’s wheat harvest is expected to reach 22 million tons, about the same as last year.
“The price will be more affected by logistics, fuel, electricity and heating costs. Electricity for legal entities has already risen in price since August 1, and heating tariffs may increase in the fall. For producers whose furnaces consume up to 50% of electricity, this may add 1.5-3% to the cost of production. The dollar exchange rate and salary costs will also be important, and the shortage of personnel forces them to invest in mechanization,” Marchuk explained.
Economic expert Andriy Novak notes that despite somewhat lower harvests, the bread market in Ukraine is highly competitive, so there will be no sharp jump in prices.
“An increase is possible, but it will be minimal, because neither producers nor traders can lose competitiveness. However, rising costs force businesses to adjust their prices to avoid losing money,” emphasized Novak.
