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Ukrkhlibprom Fears Bread Shortage Due To Unstable Grain And Bread Market
07.04.2003 "Agro Perspectiva" (Kyiv) - The Ukrkhlibprom company, which unites the bakeries, anticipates a bread shortage in retail trade that might be caused by the unstable grain market and pressure on the bakeries by the state regional administrations, Ukrkhlibprom’s director Oleksandr Vasylchenko has told Ukrainian News. “The pressure may result in a bread shortage in some cities,” he said. Vasylchenko added that regional and district authorities are employing administrative methods to keel up bread prices and are pressing the plants.
Moreover, according to Vasylchenko, many plants began to reduce bread output because their give-and-take suppliers refuse to deliver raw materials due to intrusion of local authorities in plant’s activities. Ukrkhlibprom’s specialists believe that bread prices will continue to grow in April-June due to predicted rise in prices for flour and grain caused by seasonal factor and a scandal on the grain market. As Ukrainian News earlier reported, In February prices for bread of first-grade flour rose by 0.8-23.8% to UAH 1.19-1.71 per kilogram compared with January. In January-February, bread production totaled 320,587 tons, which coincided with production volumes of the corresponding period a year ago (320,831 tons). In 2002, bread production totaled 2,127,584 tons, a decline of 4% or 88,229 tons compared with 2001. The demand of the domestic market for bread and baking products is estimated at 6.3 million tons. (Ukrainian News)
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