Domestic prices for bread in Ukraine depend on external prices, so Ukrainians should expect gradual rise in price of bread.
This was announced by the head of the Association of farmers and private landowners of Ukraine Ivan Tomic.
Domestic prices for bread in Ukraine depend on external prices, so Ukrainians should expect gradual rise in price of bread, said the expert.
“The growth of prices for bread, we will not rapid, but during the winter period, clearly an increase in the price of bread will be. The price of it will rise to 20%. The increase in the cost of bread will not happen in one moment, and will be held in two or three stages,” – he stressed.
I. Tomich explained that the grain harvest this year in Ukraine will be smaller than in the past. However, this crop is not affected, neither in upward nor in downward domestic prices for bread and bakery products.
According to the expert, in this respect, we have only changed the export potential, which, of course, he was smaller than in 2016.
“Domestic consumption of grain and leguminous crops in Ukraine is in the range of 5 million tons or less. So here nothing will change. Domestic prices on bread we depend on external prices. When external prices are not low, and the Ukrainians should expect a gradual rise in price of bread”, – said I. Tomich.
We will remind, Ukraine has completed harvesting of early grain and leguminous crops, gross harvest which this year was 37.3 million tons, harvested from 9.6 million hectares in the 15 regions of Ukraine were recorded maximum average yield of wheat, barley and canola. Gross harvest of wheat as of 28 August was 26.6 million tons with a yield of 41.8 kg/ha.
Thus, at the end of the 2016-2017 marketing year, Ukraine has established a new absolute record in the export of grain to 43.8 million tons. However, market experts point out that, despite the high harvest and record grain exports in September, flour prices in Ukraine will increase. So, before the end of the year will rise in price bread. Explain it to that the price of grain on world markets grows, so will growth in Ukraine.
It is good for the exchange rate, the greater the inflow of currency to support the hryvnia, but the prices will hit the wallets of ordinary citizens.
Experts believe that the price of bread until the end of 2017 will increase by 10%. Bread experts explain that in Ukraine becomes smaller manufacturers of this product. Previously each region had a lot of plants for the baking of bread. Now the market monopolisitc, is a few large enterprises. As a result, the market came to the conclusion that the producers of bread wheat will only buy from large companies.
Also expensive other products made from flour, including pasta. Retailers have already started to claim that they have been working with low profit margins, so after the grow wholesale and retail prices of these products.
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