Flour Prices Set to Rise in Israel Amid Supply Disruptions
Translated & summarized from Now 14 by baba
Israeli flour mills are set to increase prices by 11%-14% starting in November due to Black Sea supply disruptions caused by the Russia-Ukraine war. This rise affects industrial flour and may lead to higher costs for bread and baked goods. Companies like Gulf Mill Group and Bar-Rav Mill are implementing the increases, citing higher wheat purchase prices and sourcing challenges. The situation could potentially impact other food sectors, including poultry and dairy.
The story in 6 lines · by baba
- Israeli flour mills will raise prices by 11%-14% starting in November.
- The price hikes are due to Black Sea supply disruptions from the Russia-Ukraine war.
- Industrial flour is affected, potentially increasing costs for bread and baked goods.
- Gulf Mill Group and Bar-Rav Mill are among the companies announcing increases.
- Higher wheat purchase prices and sourcing challenges are cited as reasons.
- Future increases in poultry and dairy prices are a potential concern.
Israeli flour mills have informed food manufacturers and bakeries of an upcoming price increase of 11% to 14%, effective November. This rise is attributed to disruptions in wheat supply from the Black Sea region, exacerbated by the ongoing conflict between Russia and Ukraine. Initially, the price hike affects industrial flour, but it raises concerns that costs for bread, baked goods, and other products could also increase.
One company, Gulf Mill Group, announced a 14% increase across its flour products, including white flour, bread flour, self-rising flour, cake flour, and semolina, starting in November 2026. Bar-Rav Mill also notified its clients of an 11% price increase in early November.
The primary driver for these increases are disruptions to Black Sea shipping routes. According to Gulf Mill Group, damage to key ports like Novorossiysk and difficulties with vessel movement have impacted grain shipments and increased market uncertainty. The company stated that four ships scheduled to arrive in Israel recently canceled their contracts after failing to load, forcing the company to purchase wheat at a higher cost of approximately $80-$90 per ton.
Bar-Rav Mill explained that supply disruptions necessitate sourcing wheat from alternative suppliers in Western Europe, where prices are 35%-40% higher than a few months ago, in addition to increased shipping and labor costs.
The anticipated rise in industrial flour prices is fueling concerns about potential increases in the cost of products like bread and pastries. While it remains unclear if these costs will be fully passed on to consumers, bread manufacturers under price controls are expected to request approval for price hikes from the Ministry of Economy. Flour sold directly to consumers in supermarkets may also see price increases, though no specific announcements have been made.
Furthermore, if grain prices for animal feed also rise, this could eventually lead to increased production costs for chicken, eggs, and dairy products. However, this remains a potential future concern rather than an immediate consequence of the current flour price increase.
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