New increase in flour: how much can a kilo of bread reach

2023-04-22T13:41:21.047Z

There was already an increase three weeks ago that brought the kilo of bread to $500. The Ministry of Commerce published in the Official Gazette a new update of the reference values for wheat. The new prices raise the 25-kilo bags of common flour 000 to $1,878, from $1,764 and, taking the price of a ton of wheat as a reference, to $39,609.83. The previous rise, authorized three weeks ago , had brought a kilo of bread above $500 . It is ruled out that the new movement of the main

The Ministry of Commerce published in the Official Gazette a new update of the reference values for wheat.

The new prices raise the 25-kilo bags of common flour 000 to $1,878, from $1,764 and, taking the price of a ton of wheat as a reference, to $39,609.83.

The previous rise, authorized

three weeks ago

, had brought a kilo of bread

above $500

It is ruled out that the new movement of the main input

will again impact the prices of bakeries.

some neighborhoods of the City of Buenos Aires,

in fact

, the bread is already selling for $650.

The official measure is part of the Argentine Wheat Stabilization Fund (FETA), created just over a year ago, to establish the reference prices for 000 and 0000 flour in 25-kilo bags and per ton.

With the increase granted now, for the

January-April period, the increase reaches 63.3% year-on-year,

according to Resolution 502/2023 of the Ministry of Commerce, published this Friday in the Official Gazette.

The argument of the secretary in charge of Matias Tombolini is that this percentage

increase is "well below" the price measured by INDEC

for the price of French bread in Greater Buenos Aires.

The latest data for March showed an interannual variation of this food of 90.3%.

The official agency reported that a kilo of French bread cost $505.58 a kilo last month.

That is, 10.1% more expensive than in the previous month, according to the latest report on the Consumer Price Index (CPI).

"In order to improve the impact of the financial tool both in the cost structure and in the product for the consumer, it is necessary to increase the offer of flour with compensation in the market and, likewise, update its values so that they are consistent with

the evolution of the rest of the components of the cost of products derived from wheat flour"

, justified Commerce.

The new increase suggests that

it will be transferred directly to bakeries.

In the interior of the country, the kilo of bread would go from the current $450 to $517. According to Martín Pinto, head of the Merlo Bakers Center, "at this rate, in the short term, the kilo will be at $650

In fact, already in some shops in the Federal Capital, it is sold at that price.

According to Gastón Mora, from the Panaderos 27 de Abril Avellaneda center, "it is estimated that

by mid-year the price of bread will be $800 per kilo,

there are even mills that are withdrawing from FETA due to non-payment," he warned before the

Clarion

query

Precisely the acceleration of prices led the bakers to

try to meet

with the Secretary of Commerce, since they fear for the continuity of their businesses.

Last Thursday, April 13, representatives of bakers from 35 districts of the province of Buenos Aires met at CIPAN's Merlo headquarters to assess the current situation and take urgent measures.

Artisan bakeries claim to be

"in a state of extinction."

"We suffered

a removal of subsidies and an excessive increase in electricity and gas,

the prices of the raw materials that we use are constantly increasing,

FETA only reaches a few

and only for 000 flours, our sales are reduced month by month and the profitability that we have is minimal”, they complain.

"We need bread to reach the table of all Argentines at a fair and reasonable price," explain the leaders of the sector.

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