Wheat prices have risen by 30% since June – a record increase for the last 10 years. On world exchanges, wheat is traded for about $290 per ton. According to experts, this is due to the ongoing war between Russia and Ukraine, which are among the leading suppliers of wheat in the world, and the blows they are inflicting on each other in the Black Sea. Against this background, Bulgaria has over 7 million tons of wheat that are stored in warehouses and cannot reach foreign markets, BNT reported.
Wheat consumption in our country is just over 1 million tons per year. The remaining produced quantity is intended for export. This year, however, we have exported 500,000 tons less than last year.
Radostina Zhekova, chairwoman of the Dobrudja Union of Grain Producers: “Currently, we are exporting, in general, to whoever can find a trader. It is extremely difficult for us to participate in auctions. Usually, we export to the Arabs, to the third world.“
The difficult export is due to the limited commercial shipping in the Black Sea due to the war in Ukraine.
K.d.p. Alexander Kalchev, executive director of the “Bulgarian Maritime Fleet“ Shipping Company: “The main thing that is stopping us is the risks in the Black Sea. The frequent strikes, including on ships that are for general cargo... We do not want to put our crews and ships at such risk.“
Radostina Zhekova, chairwoman of the Dobrudja Union of Grain Producers: “Bulgaria has no other chance than the Black Sea basin for exports. Purely logistically, rail transport in Bulgaria does not work the way it should work. We have no access to another sea through which to export.“
Because of the restrictions, the price of wheat is increasing worldwide.
K.d.p. Alexander Kalchev, Executive Director of the Shipping Company “Bulgarian Navy“: “Traders expect further price increases and, accordingly, to make a larger margin between the purchase price and the selling price.“
Bread producers in our country do not expect more expensive wheat to lead to higher bread prices. In one of the bakeries in Ruse, they report that flour is only one of the components that determine the cost price of bread products.
Julien Taushanov, bread producer: “There is electricity. There are insurances. There are taxes and other indirect factors - labor and wages. So for me, it is naive to consider only the price of flour, which will directly affect. It's a complex thing.“
According to experts, the trend of increasing wheat prices will continue in the event of an escalation of military conflicts in the Black Sea and other regions.