Bread prices will grow by 10-15% by late 2020 – Ukrainian Baker’s Association

The Ukrainian Bakers' Association predicts a rise in prices for bread and bakery products by the end of this year by 10-15%.

According to a press release from the association, the factors influencing the price increase do exist. First of all, the rise in the price of bread will be caused by an increase in the cost of wheat and its processed products, an increase in prices for sugar, sunflower oil and other ingredients for the production of bread and bakery products, as well as the devaluation of the hryvnia by almost 20% since the beginning of 2020 and an increase in the minimum wage, the level of which is regulated by the government.

"In general, in such conditions, there is every prerequisite to talk about a price increase of 15-20%. However, we held repeated meetings with the bakery business and we have an understanding that prices will not rise higher than by 10-15%. At least, we can definitely talk about the most popular social varieties of bread, since enterprises understand the social component of this business," Vice President of the Ukrainian Bakers' Association Yuriy Duchenko said.

According to him, since the beginning of the year, the cost of wheat (50% of the cost of bread) has grown by 40%, and only in September by 25%. In addition, prices for sugar have significantly increased (which, according to Duchenko, has no economic justification), for sunflower oil, logistics services, and energy resources. Companies have also significantly increased spending on COVID-19-related precautions.

As reported, the association appealed to the Antimonopoly Committee of Ukraine with the demand to investigate a possible monopoly conspiracy on the sugar market, and also raised the issue of abolishing protective duties on the import of certain types of sugar from abroad.

Source: www.en.interfax.com.ua