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Grain imports have become more expensive by half within a year

2022-05-13T16:07:18.322Z

Russia's war against Ukraine is sending grain import prices skyrocketing – by more than 50 percent in a year. Consumers are also feeling the effects of this with other foods.



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Ears of wheat: "Further price increases are likely"

Photo: Daniel Bockwoldt/ dpa

The Ukraine war drives up grain prices.

Grain imports to Germany rose by 53.6 percent in March compared to the same month last year, according to the Federal Statistical Office in Wiesbaden.

The last strong increase was in May 2011, when it was 74.0 percent.

According to the Grain, Milling and Starch Industry Association (VGMS), this reflects the world market price that has been rising for months.

"Grain is becoming more expensive worldwide and this even before the war in Ukraine, which has drastically aggravated the already tense situation on the grain market," said a spokeswoman for the association on request.

For a German company, it does not matter whether it buys grain from German, Polish or Ukrainian production - the price for this is set on the Matif futures exchange in Paris.

The rise in prices has long since reached consumers.

"The prices in the supermarket for flour, oatmeal, muesli and cereals but also pasta have already risen," it said.

"In view of the cost situation for grain and the cost increases in all relevant areas - energy, packaging, logistics - further price increases are likely."

The development is also worrying many bakeries at the moment.

In addition to more expensive grain, they would also have to shoulder the rising energy and personnel costs, said the Central Association of the German Bakery Trade.

"However, price increases are only possible to a limited extent, since artisan bakers are in strong competition with the bread industry's range of products in supermarkets and gas stations," it said.

According to the latest data from the Federal Statistical Office, people in Germany had to pay a total of 8.7 percent more for bread and cereal products in April than a year earlier.

Wheat flour rose significantly in price by 21.4 percent.

Bread and rolls cost 9.6 percent more than in April 2021.

Before the war began, Ukraine was one of the world's top grain producers.

Many countries, especially poorer ones, are urgently dependent on cheap wheat from the country.

Because of the Russian war of aggression against Ukraine, however, sea routes and ports are blocked.

For Germany, on the other hand, imports from Ukraine with a share of 1.9 percent and from Russia with 0.1 percent play a subordinate role.

A total of around 11.4 million tons of grain worth 3.2 billion euros were imported last year.

At the same time, Germany exported 11.7 million tons worth 2.8 billion euros.

Source: spiegel

All business articles on 2022-05-13

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