Expensive wheat in Ecuador puts noodles and crackers in jeopardy

The article highlights the significant increase in wheat flour prices, which has reached up to 50% this year due to the Russia-Ukraine conflict, causing concerns for noodle manufacturers. The price of wheat has surged to its highest level since 2008 in international markets, impacting cereal exports from large producers like Ukraine and Russia. As a result, Ecuadorian manufacturers are facing challenges such as raw material shortages and price hikes, which are passing on to consumers in the form of higher prices for noodles and other wheat-based products. Additionally, these manufacturers are contending with other challenges, including worker salary increases and tax reforms, leading to a situation where the cost of producing staple foods like bread and pasta is becoming increasingly expensive. The article also mentions that local production of wheat in Ecuador falls short of the demand, necessitating imports from countries like Canada and the United States. The overall trend of rising prices of essential food items is expected to continue to be a significant issue in Latin American countries in 2022.