CursorinfoEconomy16:18

Israel Faces Bread Price Hikes Due to Wheat Supply Disruptions

By Алекс Липницкий

Translated & summarized from Cursorinfo by baba

CommunityNeutral tone

Russian · 4 newsrooms covering

Israel is set to experience a rise in bread and baked goods prices due to a 10-15% increase in flour costs, with some changes effective November 1st. Disruptions to Russian wheat supplies, caused by the war in Ukraine, are forcing Israeli importers to seek more expensive alternatives. Major flour mill "Bar-Rav" will raise prices by 11% as it sources grain from Western Europe at significantly higher costs. Global factors like drought and shipping issues are also contributing to the rising wheat prices.

The story in 6 lines · by baba

Israeli flour prices may increase by 10-15%, leading to higher costs for bread and baked goods.
Disruptions in Russian wheat supplies due to the Ukraine war are forcing Israeli importers to find costlier alternatives.
The Tel Aviv flour mill "Bar-Rav" will raise its flour prices by 11% starting November 1st.
Sourcing wheat from Western Europe is 35-40% more expensive for "Bar-Rav" than previous supplies.
Global factors including European drought and Black Sea shipping issues are also driving up wheat prices.
Hadar Golombek of "Shtibel-Dagan" confirmed a switch to more expensive Polish wheat after Russian order cancellations.

Israel Faces Bread Price Hikes Due to Wheat Supply Disruptions — Editorial illustration generated by baba News, not a photograph of the event.

Israel is bracing for increased prices on bread and baked goods as flour costs are expected to rise by 10-15%. Some manufacturers plan to implement new pricing as early as November 1st, according to the Ynet news portal. The primary driver for these anticipated price hikes is the disruption in Russian wheat supplies, stemming from the ongoing war between Russia and Ukraine. Israeli importers are now compelled to source grain from alternative, more expensive locations.

A representative for an Israeli bakery stated, "This is a very significant price increase that will force us to raise prices. We have not yet assessed the exact amount of the increase, but we cannot fully absorb the additional costs." For the past two years, Russia had been Israel's main supplier of imported wheat. However, the war and Ukrainian actions against Russian ports and vessels in the Black Sea have severely impacted these supply chains.

Some Russian exporters have reneged on previously agreed-upon orders, forcing Israeli companies to seek new suppliers. Sourcing wheat from Ukraine is also problematic due to persistent Russian attacks on its ports and grain terminals. The Tel Aviv-based flour mill "Bar-Rav" has informed its clients of an 11% price increase for flour starting November 1st, citing the necessity to purchase grain from Western Europe at costs 35-40% higher than before. "Bar-Rav" also noted increased expenses in transportation and labor, with the price adjustment only partially covering these additional costs.

Global wheat prices are also being affected by drought in Europe, weather patterns in Asia, and Black Sea shipping issues, according to Ynet. Hadar Golombek, General Director of "Shtibel-Dagan," confirmed the company has switched to more expensive Polish wheat following the cancellation of Russian orders. Global grain shortages and rising sea freight costs are further exacerbating price pressures. This development follows earlier reports of an impending wave of food price increases in Israel due to global agricultural market crises, including rising fuel and fertilizer costs and potential yield reductions.