Israeli Flour Prices to Rise 10-15% Amid Supply Chain Disruptions
Translated & summarized from NEWSru Israel by baba
Israeli flour prices are expected to rise by 10-15% starting November 1 due to disruptions in wheat supply chains caused by the Russia-Ukraine war. Major supplier Russia's inability to fulfill orders, coupled with increased costs from alternative sources like Western Europe and Poland, is forcing Israeli mills to raise prices. "Bar-Rav" mill has announced an 11% increase, while "Shtibel-Dagan" is negotiating a 10-15% hike. Import certifications are also facing hurdles from kashrut authorities.
The story in 5 lines · by baba
- Israeli flour prices will increase by 10-15% starting November 1 due to supply chain disruptions.
- The Russia-Ukraine war has impacted wheat and barley shipments to Israel.
- Israeli mills are now sourcing more expensive wheat from Western Europe and Poland.
- The "Bar-Rav" mill announced an 11% price increase, with "Shtibel-Dagan" negotiating a 10-15% hike.
- Disagreements between kashrut authorities are further complicating wheat imports.
Flour prices in Israel are set to increase by 10-15% in the near future, with some mills implementing the hikes as early as November 1. The primary driver behind the price surge is the ongoing conflict between Russia and Ukraine, which has disrupted vital supply chains. Russia has historically been a major supplier of wheat to Israel. However, Ukrainian attacks on Russian ports and vessels in the Black Sea have severely impacted the flow of goods, including ships carrying wheat and barley destined for Israel.
Prior to Russia's full-scale invasion of Ukraine, Ukraine itself was the main grain supplier to Israel. Currently, most Ukrainian grain is being redirected to Europe. The Tel Aviv mill "Bar-Rav," one of Israel's largest and oldest, which supplies flour to companies like "Osem" and "Bonjour," has already informed its clients of an 11% price increase effective November 1. According to the mill's management, Black Sea suppliers have canceled agreements due to their inability to fulfill obligations. Consequently, "Bar-Rav" is now sourcing wheat from Western Europe at prices 35-40% higher than just a few months ago, in addition to increased transportation and labor costs. The mill stated that the current price hike only partially covers these rising production expenses.
Hadar Golombek, General Director of "Shtibel-Dagan," explained that for the past two years, most of Israel's wheat came from Russia. With Russian orders now canceled, his company is forced to purchase more expensive wheat from Poland. He noted recent incidents, including a barley shipment being affected this week and a wheat shipment being impacted about a month ago, both en route to Israel. The situation is further complicated by domestic wheat, which is being utilized this year unlike the previous dry year. The government has linked the price of local wheat to that of American wheat, the most expensive on the market. "Shtibel-Dagan" is negotiating price increases of 10-15% with its clients, expected to take effect partially in November and partially in December. Import challenges are also exacerbated by disagreements between leading kashrut authorities, BADATZ and Rabbi Landau, who are limiting the certification of wheat imports from alternative countries.
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