The Secretary of Commerce established new reference prices without taxes on common flour 000 at the exit of the mill with an increase of 5%, through Resolution 1453/2023 published today in the Official Gazette, within the framework of the Argentine Wheat Stabilizing Fund (FETA).
Thus, the value that will govern from today for 000 flour was established at $2,594 for 25 kilogram bags (4.98% more than the $2.4712 in force since August 24) and at $101,814.50 in the case of the ton (previously $96,986.75), taking as a reference a wheat price of $54,715.40 per ton (5% more than the $52,109.91 of the previous resolution).
The new prices represent a 4.98% increase and 5% compared to the last increase set in mid-August, which was 7.9%.
The increases take into account as a reference the variations in the FAS price of wheat by 40%, that of wholesale inflation by 30% and that of salaries by the other 30%.
Reference price increases: how does it affect bakery products?
Since March of this year, it was decided to compensate only the 000 flour bag, abandoning the subsidy for common 0000, and for tapera and semolin, in addition to ceasing to set base values for gluten, premixes, special and whole wheat conditioned flours.
The change, effected by resolution 319/2023was based on the fact that the “current climate scenario is seriously unfavorable for national agricultural production.”
However, since July, 000 quality 24/26 flour and 000 quality 26/28 flour were reintroduced, which will have a price of up to 10% and 20% more than the one set as a base, respectively.
Prices on all varieties are without taxation, at the exit of the mill and without delivery costs; and the following logistics costs by region must be incorporated into them: city and province of Buenos Aires, 3.50%; Center, Cuyo and Litoral, 5.50%; NEA and NOA, 7% and Patagonia, 10.5%.
Inflation: the increase in flour below the index
Today’s increase – the recitals point out – is “consistent with the evolution of the rest of the components of the cost of products derived from wheat flour”.
In this regard, it was detailed in the recitals of the resolution that “this update of the FETA values implies a cumulative variation in the price of the 000 bag of flour 63% for the first 9 months of 2023” and “83.1% with respect to the values in force for September 2022”.
Likewise, he pointed out that “this price update It is still below those reflected by the Indec for the price of French bread in GBA and the General CPI”, which in July showed interannual variations of 130.9% and 113.4%, respectively.
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scenery. “Bread is going to be between 380 and 430 pesos in 80% of the country’s bakeries,” said yesterday the president of the Chamber of Grouped Industrial Bakers of the North (CIPAN), José Hernández.
He FETA It was provided by decree 132/2022 of March 19 of last year, “due to the sustained increase in food prices” that “strongly impacted wheat, corn, sunflower and their derivatives from the beginning of the war conflict.” between the Russian Federation and Ukraine”.
The implementation of the subsidized prices seeks to guarantee a reference value for wheat in the domestic market, “that allows maintaining stability in the share of the flour bag as a component of the cost of the products derived from it”.
Source: Ambito