Italian rice price increases due o the effect of war in Ukraine

Up to week 13, the Italian rice industry, the main player with a 40% share of the entire European market, has made great efforts to contain the fallout from cost increases. All production costs have increased sharply over the last year and are increasing further with the outbreak of war in Ukraine.

The industry, which has largely absorbed the increases recorded until last autumn, is no longer able to contain the new cost escalation. Compared with 2021, the increases have reached peaks of up 120% on some varieties. Paddy rice strongly affects the price formation of the processed product. The industry has tried to contain cost increases by squeezing margins, but it is clear that the persistence of the increases makes the situation no longer sustainable.