Mozambique: Rise in the price of bread a distinct possibility -- Carta

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Mozambique: Rise in the price of bread a distinct possibility — Carta

10:15 CAT | 07 Mar 2022

FILE PHOTO - For illustration purposes only. [File photo: O País]

With Ukraine laid waste and Russia sanctioned, the world, Mozambique included, is beginning to feel the effects of the war. In a press release that ‘Carta’ has seen, Pembe Mozambique Limitada says that the price of wheat flour will increase from today, with the price of a 50 kg bag increasing from the current 1,950 meticais to 2,050 meticais.

The Mozambican Association of Bakers (Amopão) is as a result considering raising the price of bread.

“In the coming days, we will meet with the associates to understand from each one, taking into account the production costs of each company, how much will bread price be increased by, and when, or if for some it might be possible to maintain the current price,” Amopão president Victor Miguel explained to ‘Carta’.

According to Miguel, with the situation in Eastern Europe and wheat flour being the main raw material for the production of bread, some readjustment of the price of bread in the country is inevitable.

“It is not only the price of wheat that has gone up. The price of fuel will also rise, this being also a major prerequisite for the raw material to reach the bread producer. In this sense, we also intend to hear the Government’s position on the matter so that we can make the best decision,” Miguel said.

Russia and Ukraine are among the world’s seven largest wheat producers, with Russia being the largest and Ukraine coming in at fourth. Ukraine and Russia account for about 30 per cent of the world’s traded wheat.

UN data indicate that the armed conflict in Ukraine has already caused the death of more than 220 civilians and more than a million displaced have taken refuge in neighbouring countries, especially Poland.

By Marta Alfonso

Source: Carta de Moçambique