Why is bread becoming more expensive in Russia?

Harvesting wheat in the field.

Photo: María LENZ

Of course, bread is far from chicken. However, bread and rolls made from wheat flour have risen in price by 5% over the year (i.e. compared to last November). Rye bread: 5.7%. This was reported by Rusprodsoyuz, a professional association of food producers and suppliers.

These figures are very modest in modern times. They are lower than inflation, which, according to Rosstat estimates, has already risen to more than 7% so far this year. Eggs, for example, in just one week have risen on average in Russia by 4.5% in price, almost the same as white bread throughout the year.

But the question still arises: why is bread becoming more expensive? This is the second year that we have excellent harvests, we no longer know what to do with the grain, farmers cry because prices in the domestic market have fallen below the pedestal…

But because it’s not just wheat. According to the Grain Union, the proportion of the grain itself in the cost of each bread is now only 12% to 23% (depending on the type of bread and technology). This is at the factory price, without taking into account the promotion of the distribution and transportation network from the factory.

“The increase in the price of bread was due to cost components: logistics, increased wages, increased costs for maintaining equipment and spare parts,” explains Rusprodsoyuz.

And they give a couple of examples. In particular, since the beginning of the year:

transport company rates increased by 35%;

Personnel costs increased by 25-30% (there are not enough people, so salaries have to be increased).