Why did bread go up in price in Colombia? | Finance | Economy

The increase is imminent: the bread will rise in price and will be sold at a minimum value of $ 400 pesos. The bakers made this decision due to the increase in raw materials to make the product, which is one of the main ones on the Colombian table.

(Read: They anticipate a rise in milk prices for farmers)

This is how merchants already they have posted signs in their bakeries that warn in advance of the hike and that it will be a new blow to the pockets of Colombians who have seen inflation rebound strongly this year.

(Read: Why are doctors the number one enemy of bread?)

According to Dane, the consumer price index stands at 4.33% so far this year and in the first nine months of 2021 the greatest variation corresponds to food and non-alcoholic beverages.

(Read: ‘Bread must be made as before’, Levapan,)

Faced with what is happening with the rise in the price of bread, the wheat milling industry in Colombia, unionized in the Fedemol Chamber of ANDI, indicated that the sector is being affected by

In Colombia, due to the almost non-existent national wheat production, which represents 0.3%, 99.7% of the wheat used for the production of wheat flour must be imported by sea, mainly from Canada and the United States.“explained the guild.

Thus, he indicated that the global supply chain of wheat derivatives, like all chains, has been having difficulties since March 2020, as a result of the pandemic generated by covid-19, difficulties that have become more critical during the last few months due to a lower available supply of world wheat.

In addition, he argued that climatic variables influenced the decrease in plantings, crop yields and production worldwide. “Canada’s harvest was reduced by 33% due to the increase in temperature and there is a high demand from China for corn and soybeans, which has led to other countries using wheat for animal feed“, he specified.

In this regard, Pilar Ortiz, director of the Fedemol Chamber, indicated that in the period from June 2020 to August 2021 high increases have been seen in international wheat prices.

For example, durum wheat that is used for bakery, as observed in the Kansas Stock Exchange, has had an approximate increase of 62% in its prices, soft wheat that is used for biscuits and bakery mixes, as observed in The Chicago Stock Exchange, has had an approximate increase of 38% and the durum wheat that is used for pasta, as observed in the Minneapolis Stock Exchange, has had an approximate increase of 153%, in the period of June 2020 to August 2021”, He explained

And he added that to the critical situation of increases in international wheat prices is added the complexity that is occurring with oil and natural gas.The international movements of oil and gas have generated important increases for the period from June 2020 to August 2021 and the domino effect that is causing in the supply chains the difficulties that the transport of maritime cargo is facing due to the partial closures by COVID 19 outbreaks that have led to an average increase in global ocean freight above 67% in the period August 2020- August 2021“, he pointed out.

In the period June 2020 to June 2021, international freight for Colombia from Canada, the main source of our wheat importsThey had an increase of 109% and from the United States they had an increase of 45%.

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