You are my dear … bread

Everything points to a new cycle of rising prices, with a focus on energy and agricultural products such as wheat and corn. Which will cause a domino effect of a new increase in the price of bread, pasta, even meat, as feed prices become more expensive.

The energy crisis continues and intensifies due to the events in Ukraine. The situation contributes to the growth of prices for shares and a number of commodities, which have already risen in price and will now rise to even higher levels, the newspaper writes.

A key blow for the whole world, which has not yet managed to recover from the problems caused by the pandemic, is experiencing new serious complications due to the Russian-Ukrainian conflict. Especially for Greece, a country that lives off tourism, things seem even more complicated, as the country’s economy, weakened by decades of memorandums, is still “shaking”.

Ammonium nitrate, bread and pasta

Vladimir Putin’s decision to suspend the export of ammonium nitrate for the next two months has already “shocked” producers. Actually, this step was taken 20 days before his speech on the recognition of Donbass.

Ammonium nitrate is an indispensable element for growing cereals. It has been called “the most strategic of all fertilizers” and is the most widely used fertilizer in Europe.

The main supplier of European manufacturers is Russia. Lack of ammonium nitrate runs the risk of driving up prices, especially when the decision is made at a time when fertilizer is used the most (early summer and planting season).

Since the share of ammonium nitrate is 20-25% of production costs, this will have a consequential effect on increasing prices for:

wheat, pasta, bread, flour.

The Kremlin cited rising domestic demand as the reason for its decision. According to the Russian news agency TASS, the initial export ban on ammonium nitrate will last until April 2. And this despite the fact that over the past six months, the cost of all raw materials for bakeries has soared from 20% to 70%.

Price increases that have been recorded since September 2021:

Flour: 70% Olive oil: 50% Margarine: 20% Packaging materials: 20%.

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