‘Window’ of a new increase in the price of bread opens a possible euro – ban on imports of Russian cereals

The future of his honour in Greece is uncertain following the request of several Member States of the European Union (EU) to prohibit the introduction of Russian, a development that will potentially lead to market shortages in a number of products, but also price increases. Bakery agents note in newssit.gr that although there is currently sufficient capacity based on existing stocks even if the “flow” of Russian cereals is discontinued, it is not ensured that there will be no new increases in bread. This is because Greece imports an important part of the cereals required for the manufacture of bread into its ovens by Russia. It is typical that since the summer, imports into our country have increased in terms of wheat nearly 1.6 times to 108,000 tonnes and corn by 2 times to 260,200 tonnes, placing Greece in fourth place on the relevant list of countries. At a pan-European level, cereals supplies increased by 2.3 times in the same period. Poland’s request for a pan-European suspension of imports from Russia, following many similar ‘national’ bans from Member States such as Latvia, has therefore raised a major debate. In any case, cereals are at the heart of recent agricultural mobilisations, and they are also aimed at imports from Ukraine, which, because of European solidarity, I hope, are not being taxed. Ukrainian government officials, for their part, have reported that they are accepting a return of duties on Ukrainian products, as long as the ban on the introduction of Russian food into the EU continues. What Greek bakers say Newssit.gr discussed with circles from the baker industry on the subject, which were reassuring in relation to the possibility of grain shortages in the Greek market, if such a ban is decided at EU level. Typically it is said that, as in the past, with the outbreak of the war in Ukraine there have been unrest in the supply chains, but they have quickly been normalized, while alternative sources of grain supply are available, with Greece also importing from Germany and Balkan countries. It is also noted that even if cereals imports are discontinued tomorrow, mills have sufficient stocks for more than 2-3 months. Moreover, they already have agreed grain supply contracts for upcoming months. However, the same groups of bakers point out that wheat and flour are traded in stock, and therefore such a ‘political’ development would also affect prices that the flour industry buys wheat and sell their product to the ovens. Furthermore, even if the stored flour in the mills has not been exhausted, and they will in turn pay more for the purchase of wheat in order to make up for their stocks, passing the cost on to the next “krikes” of the chain.

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