Price of imported grain / 42% year-on-year decrease in March 2024, but bread unchanged

2024-05-01 07:30:03, Ekonomi CNA

Price of imported grain / 42% year-on-year decrease in March 2024, but bread

A kilogram of imported cereals in March 2024 cost at least 42 percent cheaper than in March of last year (referring to the amount of imports and prices of cereals from customs), but in the domestic market, bread and dough products recorded an increase of further light during the month of March, INSTAT reported.

Data on inflation show that the price of bread and cereals in our country increased in March 2024 by 1.5% more than in March 2023.

According to data from customs, a kilogram of grain in March 2023 was imported with a value of 63 ALL, while in March 2024 with an average value of 36 ALL per kilogram, or 42% less. (see the table below).

This example shows that the Albanian market is not resilient to price changes in international markets. When prices increase, they are immediately reflected in the domestic market to a greater extent than the international market, but when decreases occur, they are not reflected.

Price of imported grain / 42% year-on-year decrease in March 2024, but bread

In 2022, the prices of bread and cereals increased significantly by 20% as a result of the increase in the price of wheat from Russia's attacks on Ukraine. Prices have continued to rise again, albeit at a slower pace, even though the global market calmed down. (see inflation chart).

Bread producers constantly complain about rising costs in the domestic market for labor especially, but the prices of raw materials that create the biggest cost of the activity have been halved.

Importers, in addition to the drop in prices in the international market, are also benefiting from the fall of the euro, which has led to an extra increase in their profits.

Low grain prices have increased imports during the quarter of 2024. Wholesalers are making supplies at a cheap price, but consumers are not benefiting. The country's markets suffer from regulation and oversight in terms of both pricing and food safety.

Price of imported grain / 42% year-on-year decrease in March 2024, but bread

Last year, 287 thousand tons of grain were imported, with an annual increase of 19%. cereal imports have been declining over the past decade due to a shrinking and aging population.

For example, in 2023, imports of cereals were 21% lower than in 2020. But last year the import of this product revived, after a sharp decline in 2021, where there was a lot of domestic production due to fears that the war in Ukraine could lead to shortages in international markets.

Wheat planting increased in 2021, also encouraged by the government, but when harvests began, prices in international markets fell so much that a large part of the domestic production remained stock in warehouses, or went to self-consumption, bringing import decline.

But this year, grain imports have revived even more, due to cheap prices and expectations for increased consumption due to the increase in the number of tourists./ Monitor.al