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Commerce authorized a 4% increase for flour: does bread increase?

Commerce authorized a 4% increase for flour: does bread increase?

In addition, he highlighted that “the implementation of the Argentine Wheat Stabilizer Fund seeks to guarantee a reference value for wheat in the domestic market that allows maintaining stability in the participation of the flour bag as a component of the cost of the products that are obtained from it.” derive”.

Based on this, he indicated that “in order to improve the impact of the financial tool both in the cost structure and in the product for the consumer, it is necessary to increase the offer of flour with compensation in the market and, likewise, update its values ​​so that they are consistent with the evolution of the rest of the components of the cost of products derived from wheat flour”. A) Yes, the 25-kilogram bag of 000 flour becomes worth $1,531 and that of 0000 flour, $1,837.

The prices are without taxes, at the exit of the mill, without delivery costs, and they must be incorporated in concept of logistics costs by region, 3.5% for the city and province of Buenos Aires; 5.5% for Centro, Cuyo and Litoral; 7% for NEA and NOA; and 8% for Patagonia.

The Argentine Wheat Stabilizing Fund was established by decree 132/2022 of March 19 of this year, “due to the sustained increase in food prices” that “had a strong impact on wheat, corn, sunflower and its derivatives due to from the beginning of the war between the Russian Federation and Ukraine”.

The resolution also explained that the updating of the Fund’s prices will be determined monthly by Commerce, considering various parameters in a referential way.

In this regard, 40% of the monthly variation of the average FAS Theoretical Value in pesos of the ton of wheat published by the Ministry of Agriculture will be taken into account; 30% of the Wholesale Price Index (IPIM) of the National Institute of Statistics and Censuses (Indec); and 30% of the Wage Index.

In addition, the regulations specified that the minimum monthly adjustment will be 1%, even if the formula shows a lower value.

Does the bread increase?

Given the shortage of subsidized flour, several provinces have already begun to increase the kilo of bread and add the classic increase in December due to seasonality.

Although the Argentine Federation of the Bread Industry (Faipa) has not yet given a clear signal in this regard to price increases, the provincial entities advanced with increases as is the case of “Mendoza, Salta, Santiago del Estero, Jujuy and Córdoba.

On the other side, a small group made up of bakers not grouped in Faipa (businessmen from the suburbs) met to reach an agreement on the price list for bread, with a suggested minimum price between $430 and $460 pesos. The head of the Merlo Bakers Center, Martín Pinto, spoke about the new increase in the product, and said that “given the repeated increases that we have in raw materials, fuels, spare parts for machines, the skyrocketing of flour that went to 3,600 pesos.

In the latest data from INDEC for September, the kilo of French bread rose 6.8% in the month and that of table bread 5.5%. Regarding the year, “bread and cereals” showed an accumulated rise of 74% in Greater Buenos Aires and in the Northwest an increase of 84.9%.

Source: Ambito

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