not everywhere· Economy· Updated
Bakeries Seek Price Hike for Controlled Bread Amid Flour Cost Surge
Israeli bakeries are preparing to request approval from the Ministry of Economy to raise the price of government-regulated bread. This move follows announcements from domestic flour mills of price increases ranging from 10% to 15% starting in November and December. The rising costs are expected to affect all baked goods, including non-regulated bread, cakes, cookies, and retail flour sold in supermarkets.
3 newsrooms · 2 languages · since
What happened
- 01Israeli bakeries will ask the Ministry of Economy to raise regulated bread prices due to a 10% to 15% increase in flour costs.
- 02The Russia-Ukraine war has disrupted wheat supplies, forcing Israeli mills to source from more expensive alternative suppliers in Poland and Western Europe.
- 03Imported wheat from alternative European sources is 35% to 40% more expensive than previous supplies.
- 04Flour price increases will take effect in November and December, with the major Bar-Rav Mill announcing an 11% hike.
- 05The price increases are expected to affect all baked goods, including non-regulated bread, cakes, cookies, and supermarket flour.
- 06Additional cost factors include higher shipping rates, global weather-related wheat shortages, kashrut restrictions, and more expensive local wheat.
The primary driver of the price hike is the escalation of the Russia-Ukraine war, which has severely disrupted wheat supplies to Israel. Ukrainian attacks on Black Sea ports and vessels have led suppliers to cancel orders, forcing Israeli mills to source wheat from alternative suppliers in Poland and Western Europe. This imported wheat is 35% to 40% more expensive than previous supplies.
Additional factors contributing to the rising costs include higher maritime freight charges, global wheat shortages caused by weather, kashrut restrictions, and the increased price of local wheat, which is being used again following a drought last year. Major suppliers, such as the Bar-Rav Mill, have already announced an 11% price increase starting next month, leaving bakeries unable to absorb the costs.
Summarized by baba from the reports of 3 newsrooms. Updated
Latest report: The Jerusalem Post. Read The Jerusalem Post’s originalThe coverage
3 newsrooms on this story
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