By Trend

Global wheat prices reached the top level over the past eight years despite expectations of record production, Trend reports.

The adverse weather conditions observed in the Northern Hemisphere in the spring and summer of last year caused fears about the harvest reduction in 2021. High prices and limited supply from Russia, the world's leading wheat supplier, due to the introduction of export duties, as well as a sharp increase in transport costs, keep prices high.

Data from the Chicago Mercantile Exchange show that soft winter wheat prices have set a record, surpassing $8 a bushel (0.027 tons) for the first time since 2012. Due to the rise in grain prices, experts also predict a rise in the cost of food throughout the world.

So, in Romania in November 2021, the price of grain was about 33.7 percent higher than in November 2020, and 55.7 percent more than in November 2019.

In Turkey, the wholesale grain price for 2021 was set at 2,450 Turkish liras ($196), but is currently priced at 3,720 Turkish liras ($297) per ton.

The import price of grain, mainly from Russia, is $340-350 per ton.

As a result of statistical calculations carried out from September 2020 through September 2021, some rate of change in grain prices was observed in Spain.

Prices for soft wheat vary from 185 to 255 euro per ton, for durum wheat - from 285 to 420 euro per ton, for barley - from 155 to 230 euro per ton, for corn - from 180 to 275 euro per ton.

In Croatia, the price of grain in October last year increased by 52 percent compared to September - October 2020 and amounted to 179 kuna (7.5 kuna = one euro) per kilogram.

The 2022 will be remembered by the world as a post-pandemic period, and the rise in prices is inevitable amid growing demand and a decrease in the manufacturing of grain, food and other essential products.

Major producers of flour and bread made an appeal regarding price changes in Azerbaijan.

"Currently, given the need to continue the activities of flour producers and imports of wheat to provide the country with this strategic food product, there is a need to adjust flour prices in line with current global wheat prices in order to prevent the threat of a shortage. A 50-kg sack of flour can grow in price to 36 manat ($21), and, consequently, the price of a traditional loaf of bread will grow by a maximum of 10-15 gapik (5.8-8.8 cents)," the appeal said.

According to the appeal, due to the ongoing global negative processes, uncertainty, pressure on production and the supply chain, as well as due to the COVID-19 pandemic, food prices have sharply increased in the world. These processes have also affected the cost of food wheat, which is imported to Azerbaijan from Russia.

"Due to the rise in prices on the Russian market, these products are supplied to Azerbaijan at higher prices. Besides, the introduction of a high export duty from February 2021 in Russia also seriously affects the rise in prices," the appeal further said. "In December 2021, the average monthly export price of one ton of milling wheat in Russia grew by 58.7 percent compared to the same period in 2019 and by 33.1 percent compared to December 2020."

"To reduce the negative impact of the global rise in prices on the Azerbaijani market, the state has provided great support to importers and producers of flour throughout the year," the appeal reminded.

"Realizing our important role in the food supply of citizens, we declare that if the price of flour is brought in line with the current price of milling wheat, we’ll mobilize all efforts so that the price of bread and flour products doesn’t rise higher than the specified level before the grain harvesting and procurement season in 2022," the appeal authors said.

The rise in prices on the world market isn’t limited to grain, including wheat. Global prices for dairy products in November 2021 increased by 3.4 percent compared to October and by 19.1 percent compared to the same month in 2020. Global vegetable oil prices rose to a record high in October but declined slightly (0.2 percent) in November.

Despite the fact that prices for meat products on the world market in November 2021 decreased by 0.9 percent compared to October, this figure is 17.6 percent higher than in the same period in 2020.