Flour is more expensive: a 10 percent price increase is expected

By: Trademagazin Date: 2024. 08. 15. 12:20

The price of flour in Hungary is about to rise significantly, by about 10 percent, which is caused by several factors. Zoltán Lakatos, the president of the grain processing department of the Grain Association, told Világgazdaság that the main reason for the price increase is the low quantity of high-quality grain and the increased demand.

The quality of this year’s grain harvest has deteriorated significantly, which was already noticeable last year. While under normal conditions, about 65 percent of the harvested grain was of good quality, this year this proportion dropped to only 20-25 percent. Drought weather and unfavorable environmental factors had a significant impact on the crop, and the higher-yielding wheat varieties preferred by many farmers could not meet the challenges. As a result of the unfavorable weather, 2-3 weeks were lost from the ripening period, which further worsened the quality of the harvested wheat.

On the demand side, mills requiring large quantities of high-quality wheat, feed processors looking for high protein content, and exporters taking advantage of the weakening German production also contribute to the price increase. These players are competing for good quality wheat, which has led to further increases in prices. While the price of a ton of wheat was around HUF 70,000 last year, this year it may cost up to HUF 80,000.

Rising grain prices are expected to result in further increases in the price of flour, which will have a direct impact on the prices of baked goods and other foodstuffs.