Ukrainian Ministry of Agrarian Policy declares there are no bread prices growth objective causes
15.06.2007 14:30 "Agro Perspectiva" (Kyiv) —
As to Deputy Minister of Agrarian Policy Yaroslav Gadzalo press-conference report, Ministry is convinced presently there are no reasons for country flour/bread prices boost.
“As of now, Ukraine is provided with total necessary grains volume. Market flour amount is also quite sufficient, – and therefore there are no reasons for bread prices growth,” declared Gadzalo.
Deputy Minister made it known this year Jun 1 grain acceptance/processing companies (as well as other companies providing grain storage services) grains reserves totaled ≈ 4.2 mn MT (incl. food grains – 2.2 mn MT).
“These reserves are sufficient to satisfy country consumption practically until Nov ,” admitted Gadzalo.
He added presently companies owned by State Committee for Material Reserves (State Reserve) and State-run Joint Stock Company Bread of Ukraine perform flour sales at prices much down against market in order to stabilize domestic market prices situation.
While speaking on press-conference, Viktor Bondarenko, Bread of Ukraine Board Chairman, has said Bread of Ukraine had concluded 30,000 MT flour shipments contracts, with 1,000 MT flour having had been already sold.
“Nobody waits in queue to buy flour from our company,” said Bondarenko.
As to him, Bread of Ukraine now sells highest grade flour at UAH1,350 per MT (1 grade – UAH1,200 per MT, 2 grade – UAH1,100 per MT, rye flour – UAH1,100 per MT).
However, Board Chairman admitted highest grade flour market prices have reached UAH2,000 per MT in some regions.
Oleksiy Suslikov, State Reserve Deputy Chairman, reported State Reserve had signed in total 77,000 MT flour sale contracts (with 33,500 MT having been already sold off).
Suslikov admitted State Reserve didn’t revise flour sale prices.
Volodymyr Slabovskiy, All-Ukrainian Bakers Association President, is as well convinced flour prices growth can’t be considered as reason for bread prices boost.
“As of now, flour can’t be regarded as reason for bread prices surge,” declared Slabovskiy.
As to him, last 3 weeks flour prices jump was quite unmotivated as initiated by panic caused by news on large part of grain crops sown areas having had been destructed by drought.
Yaroslav Gadzalo made it known drought had destroyed various agricultural crops at total ≈ 800,000 ha sown areas. However, he said crops destruction can’t be regarded as reason for country bread prices growth due to domestic market sufficient grains stocks.
Deputy Minister admitted State is going to form large enough grains reserves within new MY to completely assure country internal consumption. He also suggested some regions recent bread prices growth was motivated only with certain corporate interests.
“There is a trace of somebody’s corporate interests to be seen,” recapitulated Deputy Minister.
To prove his words, Gadzalo has quoted Lviv region as example: though this region isn’t grains producer (and therefore must purchase 1 grade flour at UAH1,700 per MT), its bread price presently equals to UAH2,17 per kg. At same time, Dnipropetrivsk region, which purchases flour at UAH1,400 MT, has established UAH2,27 per kg bread prices.
Reportedly, Ukrainian Premier Viktor Yanukovych has recently criticized Government Agrarian Block for its having raised bread prices in some regions.
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