Farmers union: Bread prices may increase in Ukraine despite a sufficient harvest

The UAC, the largest agricultural producers' union, said late Thursday that bread prices could rise this year in Ukraine despite a good wheat harvest. This is due to a rise in energy costs and logistics, primarily.

Ukraine is a major wheat producer, with an annual average production of 22 million metric tonnes. The grain is consumed domestically in approximately 6 million tons.

The Ukrainian millers union stated last month that in 2025, the harvest of wheat would consist of 10.3 millions tons of milling grain. However, the amount of wheat needed to produce bread flour may only be 1.7 million tonnes.

Millers warned that this could result in a rise in the price of bread.

Denys Maruk, UAC’s deputy chief, stated in a press release that Ukraine harvested this year 21.8 million tonnes of wheat. This corresponds to the previous year's level.

Marchuk stated that the main cause of bread's increasing price is an increase in business costs.

He said that inflation in the food industry was 22%, and the costs of electricity, logistics, and fuel for business were always rising.

When we see the finished product on the shelves of a store, it has been through many production cycles. He added that the cost of grains accounts for less than 25% of total bread costs.

Although the government hasn't yet reported the amount of food grain harvested, traders and analysts believe that the weather conditions during the harvesting and ripening phases may have affected the quality. (Reporting and editing by Joe Bavier; Reporting by Pavel Polityuk)

(source: Reuters)