Experts predict an increase in bread prices in Ukraine

Bread prices in Ukraine may spike in the coming months. This trend is explained by the rising costs of raw materials and electricity.

This was stated by the Vice President of the All-Ukrainian Association of Bakers, Oleksandr Taranenko.

“First of all, this is happening due to the increased cost of raw materials, which have gone up by almost 40% between May and June. We know the situation in the energy sector. This also increases expenses. We haven’t stopped production, but we are forced to operate on diesel generators, and electricity from generators is 2.5 times more expensive than from the grid,” Taranenko explained.

He noted that all these factors are increasing the costs of production, and, as a result, the prices of the products.

“In the near future, I don’t see grounds for a sharp increase in bread prices, but considering current trends in the grain and flour markets, we expect prices to rise,” the expert added.

At the same time, he pointed out that it is not possible to talk about increased profitability—bakeries are operating with almost zero profitability.

Svetlana Cheremissina, an expert at the Institute of Agrarian Economics, noted that bread prices in Ukraine could increase by 4-6% by the end of the summer of 2024. The reason for the rise in the cost of this popular product is the increase in electricity tariffs and raw material costs.

She also pointed out that since the beginning of 2024, purchase prices for 2nd class wheat have increased by 47.4%, reaching 8,401 hryvnias per ton, and for 3rd class wheat by 37.6%, reaching 8,191 hryvnias per ton.

Later, the President of the All-Ukrainian Association of Bakers and the Director of the company “Kyiv Khlib,” Yuriy Duchenko, stated that Ukraine faces bread supply disruptions because flour prices jumped by 50% over the two summer months and continue to rise.