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According to the Center for Agricultural Information and Rural Business, in the second week of January, the average purchase price of wheat in Lithuania amounted to almost 197 euros per tonne. This is one tenth more than in the same period last year. Only the extra class wheat in our country has risen in price by 13 percent annually.
Expensive bread and pasta
On the international stock exchanges, the purchase prices of wheat futures rose to 240 euros per tonne. It is estimated that there has been no such price increase on the Paris Stock Exchange since 2013. Furthermore, prices are reported to have been affected by Russia’s announcements to increase tariffs on exported wheat.
“It is clear that this decision has a significant impact on the international market. This year, other major European grain exporters, France and Germany, have posted lower yields, fearing a shortage of grain on the market, importers are more active in buying, and futures prices rose to record highs. precedents on the stock exchanges. “says Linas Agro. director Svajūnas Banelis.
According to him, the high purchase prices of cereals for futures are currently favorable for farmers, but consumers of final products may not receive very pleasant changes.
“Most of Lithuania’s grain producers have already sold their crops. It is estimated that the country’s farmers have about 10-15%. Grains not yet sold. Rising grain purchase prices and Russia’s desire Protecting their domestic market can also have a very unfavorable effect on consumers of final products.
“The prices of fast food products, such as pasta or bread, are already rising, which may become even more pronounced in the near future,” predicts S. Banelis.
Meat can also become more expensive due to higher feed prices
Dalia Ruščiauskienė, director of the Lithuanian Association of Grain Processors and Traders, admits that the prices of cereals in the markets fluctuate not only due to Russian decisions, but also due to the updated report of the US Department of Agriculture. soybean and grain stocks in world markets. .
“With Russia falling in grain exports, the market began to fear there would be a shortage of grain <...>. For these reasons, there is a fairly high demand for cereals from buyers, which encourages price volatility in international cereal markets.
There are other factors that do not add stability, such as the global pandemic situation or the drought in Argentina ”, commented D. Račkauskienė.
According to her, the current situation makes us think about higher cereal prices in 2021. Stability can be expected if there is a good harvest in Russia, Europe and Argentina this year.
“There will be an impact on the prices of final products if the prices of cereals remain high for an extended period. We are not talking only about bread, but also other products, such as meat, whose price is determined by the price of raw materials, the same cereals or soybeans.
The price change also depends on the composition of the product. Most producers can be seen as having longer-term contracts, so producers may have to write off higher raw material prices for some time at a loss. However, for those who are in the opposite situation, changes await them ”, warned the head of the association.
Suppliers are not talking about higher prices yet
At least for the moment, Lithuanian stores have not seen a major increase in the price of cereal and bread products recently.
The website of the Agricultural Information Center and Rural Business produktukainos.lt announces that in the second week of this year, compared to the same week last year, a little more, more than 13 percent. at 1.55 euros per kilogram: the price of pasta has risen.
A kilo of extra wheat flour now costs up to 0.99 euros a year ago.
At that time, dark and light bread, as well as the loaf of bread, became 3 to 8 percent cheaper in stores in recent years.
The producers of flour and bread products interviewed by the tv3.lt portal did not want to publicly comment on how much and when their products may become more expensive due to the increase in grain purchase prices. They based their refusal to comment on the fact that similar comments could be treated as price coordination prohibited by competition law.
At that time, Ernesta Dapkienė, director of the communication and image department of the Maxima retail chain, reported that the company she represented had not received any notice about the possible valuation of the products recently.
“The prices of flour and bread products are currently stable. So far, we have not received any information from suppliers about possible price changes, ”said E. Dapkienė.
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