Due to the rise in wheat in the local market, the price of flour is overheating and increases in bread are expected

Wheat, which represents 80% of the final price of flour, registered a strong upward movement in the available market during April and so far in May, going from $257,400 a ton at the beginning of last month $287.800 per ton in Rosario, which implies an increase close to 12%.

However, this is only a reference price, since the milling company pays above that value in search of the appropriate quality for flour production and baking, an issue that the industry is having a hard time achieving. In this sense, specific batches of high quality wheat (+30% gluten) have been paid for more than $450,000 a ton.

In this sense, the president of the Argentine Federation of the Milling Industry (FAIM), Diego Cifarelliindicated that the 25 kilo bag of basic quality flour went from being worth between $11,000 and $12,000 in April to $13,000 or $14,000 this weekwhile those of higher quality remained stagnant among the $17.000 y $18.000.

“The businesses that we are doing are based on the quality lots that we are getting in a year where there is no quality,” said Cifarelli and added: “You can find flours that are much higher, up to 40%, above the market price. In other words, you set the value of the flour based on the wheat you get.”

Taking this context into account, Cifarelli noted that flour “It is increasing, because that is what wheat does. There it increased much more than 10% or less. “There is a lot of volatility and we are paying exorbitant prices for quality batches.”.

Regarding the increase in the price of wheat, the head of FAIM considered that, despite the complications that the milling sector brings, ““It is a good thing because it gives the producer a return that challenges him to continue trusting in the cultivation of a chain that will give the country US$5 billion.” and concluded: “the offer will return to normal to the extent (that the producer) sees that what is being paid is very good and that it is much more convenient to sell in this campaign than to save.”

The increase reported by Cifarelli is consistent with those warned by the bakers. In dialogue with this medium, the general secretary of the Bakery Industrial Federation of the Province of Buenos Aires (Fippba), Raul Santoandreindicated that the 25 kilo bag went from $14,200 or $14,500 to values ​​around $16,000 or $17,000, depending on the quality. In fact, the leader indicated that in the last week it rose $1,000.

“From the mills they tell us that although there is a record harvest, the quality is not the best to make bread flour. The wheat that is obtained is difficult to make and that is why our main raw material increases,” said Santoandre and added that “the baker has to juggle because the gluten does not fuse and we have to find a way back.”

But not only flour registered a marked increase in recent days, but so did fatanother indispensable component of the bakery: “This week the 20 kilo box increased by $20,000, going from $100,000 to $120,000”said the business leader.

However, Santoandre stated that it is not possible to transfer all these increases linearly to the consumer, because “He doesn’t have money. The bakeries are bad, but we try to take care of the customer, although sometimes we don’t know how to do it. Sweets have already stopped selling, the sale of invoices is very resentful and now it is also reaching bread. In other words, we do the increase in a proportion, because if not we have to close.”