Growth of prices for wheat flour in Ukraine: analysis and reasons

In Ukraine, there is a significant increase in the prices of wheat flour. Since the beginning of June, prices have increased by more than 2,000 hryvnias per ton, which causes concern among consumers and producers. According to AI "APK-Inform", this trend continues during the first month of summer.

As of July 2, prices for high-grade flour fluctuate between UAH 12,500-14,200/t EXW, which means an increase of UAH 2,000-2,500/t compared to the beginning of June. Analysts explain this phenomenon by several key factors.

First, the insufficiently active supply of flour offers is caused by producers holding back sales. They reduce the volume of supply on the market due to preventive repairs at most processing plants before the start of the new season. This reduction in production capacity has led to a shortage of the product in the market.

Secondly, difficulties in purchasing high-quality raw materials for processing also affect price growth. Due to the limited number of offers of raw materials on the market, producers face problems in providing the necessary volumes of wheat for the production of flour. This additionally increases the cost of the final product.

According to experts, the situation may remain tense until the end of the season. Manufacturers will try to adapt to new conditions, looking for alternative sources of raw materials and optimizing production processes.

So, the current situation on the wheat flour market in Ukraine is a challenge for both producers and consumers. Further developments will depend on the stability of raw material supplies and the ability of processing enterprises to promptly restore their production capacities.