The Russia and Ukraine crisis threatens the bread of Turkey

Published 2022년 2월 24일

Tridge summary

The article highlights the impact of geopolitical tensions, particularly between Russia and Ukraine, on wheat prices and the bread market in Turkey. Despite the risk of increased prices from Russian wheat, the market remained stable due to the threat of war. The article also discusses the challenges faced by bakers in Turkey, such as rising costs of minimum wage, electricity, natural gas, and fuel, which are pushing up the cost of bread. Bakers are seeking discounted electricity to maintain the price of cheap bread, and there are concerns about the impact of high costs and potential closures of low-capacity bakeries. The article also notes that the Turkish Grain Board is providing cheap flour to bakeries and that the Ministry of Agriculture has reassured the public that there will be no shortage of wheat, flour, or bread, even in the case of a war in Ukraine.

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Original content

The risk of war prevented the expected pre-harvest reduction in wheat prices. Bakers wanted discounted electricity after discounted flour for cheap bread. With the tension between Russia and Ukraine, the war coming to a close has brought up the possible risks in bread, flour and wheat in Turkey. As the stocks and the harvest period were close, there was no Russian-originated increase in bread. However, the hikes in minimum wage, electricity, natural gas and fuel are forcing the bread hike. Evaluating the developments in Ukraine, Ministry of Agriculture officials said that in case of a possible war, there will be no shortage of wheat, flour and bread. Stating that there are enough stocks in the warehouses of the Turkish Grain Board (TMO) and the ports, the officials said, “It is not possible to experience a shortage or excessive price increase originating from Russia. There is wheat everywhere. Russia is cheap, but there is always the opportunity to buy wheat from Argentina, EU ...

Source: Gidatarim