There was a panic: will bread and flour become more expensive in Russia?

Record flour exports and a surge in wholesale prices for raw materials have sparked concerns among bakers, who are warning of potential price increases for bakery products. The rise in flour prices in Russia, attributed to a variety of factors including transportation costs, energy expenses, wages, and panics in the flour market, has led to significant price hikes in wholesale and retail flour prices. Although grain prices rose due to a series of frosts, the fluctuating prices have not significantly impacted retail yet. The situation is causing cash flow issues for flour millers and threatens to escalate bread prices, with bakers anticipating an increase of at least 20%.

The growing export of flour, which reached record levels last year, and the rise in wholesale prices for raw materials are worrying bakers. They threaten to increase prices for bakery products. Forbes found out whether flour is actually becoming more expensive, what the growth of its exports entails, and what to expect from bread prices. At the beginning of summer, after a series of frosts, grain prices rose in Russia and around the world, which gave farmers some reason to hope for higher earnings. However, optimism in one sector turned into panic in another. Already in July, bread producers began to sound the alarm: according to them, the sharp rise in flour prices forced them to either significantly raise product prices or close factories altogether. Forbes' interlocutors say that the problem really exists and the cost of grain is only one of the factors influencing this. Flour prices in Russia have really risen sharply this summer, Forbes’ interlocutors say. “In some regions, ...