He bread price in Colombia could be affected and increase. The reason: 99.4% of the wheat used in the country is importedso it is affected by several factors and logistical challenges anchored to international marketsuch as the increase in the cost of freightthe port congestionthe increase in fuel price and the new regulations to reduce greenhouse gas emissions.
This was noticed in Bogotá during the Logistics and freight seminarorganized by US Wheat Associates, the export market development organization for wheat from United States. There, Pilar Ortiz, executive director of the Fedemol Chamber (National Federation of Wheat Millers) of the Andywarned that it is necessary to “understand the challenges that the sector faces, especially in logistics issues, it is key to help reduce inflation and thus benefit consumers.”
“In Colombia, wheat is essential for food and nutritional security. For example, a staple food product for Colombians is bread and pasta, and their main ingredient is wheat flour. In addition to being a nutritional food, it is affordable. Nobody imagines what is behind the production of bread and pasta, it is a supply chain with many challenges because it depends on international dynamics”, said Ortiz.
It is worth noting that according to the latest data from Dane, from April 2023, bread had an annual variation of 25.41%, while some inputs such as wheat (32.74%), flour and cereals (21.61%) and milk (27.83%), also rose, affecting the final price to the consumer.
The regional director of US Wheat AssociationMiguel Galdós, warned that, although Colombia is one of the main wheat import markets, more attention should be paid to the relations of merchants and buyers, not only with the United States, but with countries in the region such as Ecuador , Peru or Chile, to evaluate alternatives for combined charges and thus achieve logistics efficiencies that have a positive impact on consumers.
“Only 45% of the shipments of a commodity such as wheat, which are dispatched to the region, come fully loaded, that is, customers who can buy a complete ship. 55% of wheat buyers cannot do this, so they buy parcel loads, and the most efficient way to buy loads is to unite with other buyers from different countries or different commodities such as wheat, soybeans or corn,” he explained. Galdós, as quoted in Briefcase.
Until not long ago you could get $200 loaves. This, today, is just a sad memory, because, as he warned Marcela Moralespresident of adepan, the price of raw materials has been on the rise for 18 months, and has even doubled its price in this period. For example, the increase in by-products such as fat or milk derivatives has affected the final price of bread.
“Since October 2021, raw materials have been on a bullish wave that has not stopped. There are raw materials that have doubled their price in these 18 months,” Morales said, as quoted in The Republic, where he added: “Previously you could find a loaf between $300 and $400. However, today it is very difficult to find a bread that costs less than $500 and $600.”
This panorama is the same that you see Henry Vanegasdirector of the National Federation of Cereal, Legume and Soy Growers (Fenalce), which shares the forecast of adepan: the price of bread will continue to be around $500. This, explained Vanegas, in part due to the increase in the cost of a ton of wheat in the international market, which has been affected by the Russian invasion of Ukraine: “the ton of wheat went from $1.2 million a ton, to more of $2 million”.
