Bread Quarter With The Increase Of World Grain Prices Ukrainian Bread Will Rise In Price By 25

Bread from the new Ukrainian harvest will cost more by 20-25%. These expectations were shared by Ivan Tomich, president of the Association of Farmers and Private Landowners of Ukraine, reports Voice UA.

As explained by Tomich, this is due to the fact that our grain as export products is tied to imports at a price, and the import prices of grain are increased by 20% from year to year.

To this growth, it is necessary to add such components of the price as mineral fertilizers and fuel, which also rise in price annually by 20-25%. The cost of baking bread with rising energy prices is also increasing. Therefore, price growth of 20-25% is forecasted from an optimistic scenario for the harvest.

As Tomich emphasized, bread will rise in price, regardless of how much we harvest grain: 59 tons or 62 tons.

We note that over the past few months, world prices for major grain crops have grown significantly. The average value of the FAO Grain Price Index in May was 172.9 points, which is 4.1 points (2.4%) higher than the April value. And the growth of this index continues from the beginning of the year. In May, its value was almost 17% higher than the corresponding indicator of the previous year, reaching a maximum level since January 2015.

Wheat prices in May rose mainly due to concerns about possible production volumes in a number of leading exporting countries. World prices for important forage grains also increased, mainly due to the deterioration of species for harvest in Argentina and Brazil.

We recall that with the start of the current season, Ukraine exported less grain, but sold it more expensive.