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Crisis in Ukraine could raise wheat prices Israel today

2022-02-24T12:47:29.554Z


Russia and Ukraine are among the largest exporters of wheat in the world, and the crisis could cost products in the country • Flour mill CEO: "There are substitutes, the question is at what price"


In the food industry, it is estimated that the security escalation between Russia and Ukraine could exacerbate the wave of rising prices in Israel.

If security escalation between the two countries continues for a long time, the price of wheat, which has already risen last year amid the crisis in supply chains, is expected to rise further and cause more food products containing flour to rise in price.

Russia and Ukraine are among the largest exporters of wheat in the world - the two countries together are responsible for close to a third of the world's wheat consumption.

Ukraine ranks fifth in wheat exports after giant powers like the US, Russia, Canada and the European Union.

Bay flour mill CEO Shimon Hefetz said: “The effects are already noticeable.

Both Russia and Ukraine are a major part of the global grain barn.

About 60% of the flour in Israel is made on the basis of wheat from Russia or the Ukraine.

If supply stops from there, of course it will be a problem but mostly of price, because there are other sources that produce wheat.

We are already seeing the result of the rising tension - the prices of wheat have risen by 10%.

However, the Israeli consumer has not yet raised the price, because flour mills are full of wheat that is sufficient for production for about three months.

They renew their inventories through futures contracts with international supply companies.

The security escalation between Russia and Ukraine is affecting the rise in wheat prices, and if the trend continues over time it will no longer be inevitable to raise the price of flour to the consumer.

"I estimate that until after Pesach there will be no increase because the mills are full. We also import wheat from Canada, the USA, Hungary and Germany, but Russia and Ukraine are large suppliers, and if it is not possible to bring wheat from there, prices will have an immediate effect. .

"Supply companies with which Ann Hanu works are international companies and they will find the alternative places, the loan is at what price," Hefetz explains.

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Source: israelhayom

All news articles on 2022-02-24

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