One more rise in flour price has been recorded in Armenia – the wholesale price has reached 222 per kilo, and the retail price 240 AMD per kilo.
The bread price is rising as well through some bake-houses are still using their flour reserves and have not yet raised their prices.
The main reason is the rise in the wheat price in the international market. On January 21, the wheat price in the U.S. and European commodity exchanges was U.S. $330-350 per ton – the highest price over the past 30 months. In 2008, the wheat price exceeded U.S. $400 per ton. This year the wheat price has shown a 10% rise as compared with last year.
Three major factors causing a rise in wheat prices are as follows. First, a low yield is expected in Europe, and experts forecasts lower wheat exports from Europe. Secondly, a great demand for wheat has been formed during a short period – mainly in Algeria and Tunisia, which has increased imports because of the social crisis. The weather, particularly the floods in Brazil and Australia, is the third factor influencing the wheat price.
Most experts do not forecast a food crisis in 2011. The rise in the wheat price is a short-term rise, they say. This year’s wheat yield is expected to exceed last year’s yield worldwide.
In Armenia, the rise in the international prices for wheat caused a 10% rise in flour price. Although some bake-houses are still using their four reserves, the price is expected to rise in the future.
