With the new reference price for wheat, there will be a strong impact on the value of a kilo of bread, which in some areas of the AMBA sells for more than $600
By Gerardo Choren
21/04/2023 – 10,05hs
The Ministry of Commerce updated the reference values for wheat and consequently established an accumulated adjustment of 18% for the first four-month period of the year, a figure that will impact the prices of flour and bread.
The measure falls within the Argentine Wheat Stabilizing Fund. And with the increase for the January-April period, the rise reaches 63.3% year-on-year, according to Resolution 502/2023 of the Ministry of Commerce, published this Friday in the Official Gazette.
According to Commerce, these percentages are “far below” of those reflected by the INDEC for the price of French bread in Greater Buenos Aires, whose data for March 2023 show interannual variations of 90.3%.
While the wheat values in the local market show a variation of 72.9% in the first half of April 2023 compared to the same period of the previous year, according to official figures.
“In order to enhance the impact of the financial tool both in the cost structure and in the product to the consumer, it is necessary to increase the offer of flour with compensation in the market and, likewise, update their values so that they are consistent with the evolution of the rest of the components of the cost of the products derived from wheat flour”, justified the Secretariat led by Matías Tombolini.
What is the Wheat Stabilization Fund?
The Argentine Wheat Stabilization Fund, created just over a year ago, establishes reference prices for Flours 000 and 0000 in bags of 25 kilos and per ton; Tapera flour per ton and Semolin per ton.
Is another increase in the price of bread coming? Commerce authorized an increase in the value of flour
At the time of its launch, the Government highlighted that, through this tool, it seeks “guarantee a reference value for wheat in the domestic market that allows to preserve a stability in the participation of the bag of flour as a component of the cost of the products derived from it”.
Now, Commerce established that the price of flour 000 common is $1,878 for presentations in 25-kilo packages, while for a ton of wheat, $39,609.83.
To this value must be added the logistics costs by region, which will be the following: Province of Buenos Aires and the Autonomous City of Buenos Aires, 3.50%; Center, Cuyo and Litoral, 5.50%, NEA and NOA, 7%; Patagonia 10.5%.
In addition, the Resolution provided that the price update it will be carried out taking as a reference the 40% of the Monthly Variation of the average Theoretical FAS Value in pesos published by the Ministry of Agriculture of the month immediately prior to the one in which the compensation is calculated; 30% monthly variation of the Wholesale Price Index of the last month available on the INDEC website and 30% of the monthly variation of the INDEC Wage Index.
