Wheat has risen dramatically in price at the International Commodity Exchange in Chicago, and since the outbreak of the war between Russia and Ukraine, the price has risen by about 20 percent.
"Of course it will affect the price of flour, I do not know if it will happen tomorrow morning or in the longer term," said Shimon Hefetz, CEO of Israel Hayom, in a conversation with Israel Today.
He added: "We experienced a similar situation in the economic crisis in 2008. The price of flour will lead to all products related to flour - bread, pasta and more. There is no escape. And not only in Israel, everywhere in the world. It is a dramatic crisis in terms of agricultural commodities. "Ukraine is a very large supplier of corn. I also hear about a lot of cancellations of corn contracts."
Hefetz's warnings about the expected rise in flour prices were published a week ago, and despite warnings from many experts, the government is trying to reassure the public by the fact that the emergency stock is enough for months, so not only is there no shortage, but there is no reason for the rise.
Hefetz is convinced that inventory will not help either: "The protection techniques we have for wheat prices are such that if the price rises dramatically, it starts to cost us money. There is a price increase, even though the goods are with us."
Senior government officials are trying to calm the winds, saying the war is unlikely to cause another surge in prices: "If it only affects the longer term, there are full months ahead, both in terms of wheat and livestock food."
They added: "There are other suppliers here besides the Ukrainians and the Russians. There is a big difference whether the event lasts months or a week. The shorter it is, the more it will be an event we can skip. It is unlikely there will be an increase in the short term, it all depends on wartime."
Were we wrong?
Fixed!
If you found an error in the article, we'll be happy for you to share it with us