Durum wheat: the run in prices continues
Italmopa: "a strong impact on the entire supply chain is expected"
The rush of durum wheat prices on international and national markets continues. This is what Italmopa (Italian millers' industrial association (Confindustria - Federalimentare) highlighted regarding the violent increases in durum wheat prices that have occurred over the last two months.
"Already last July", emphasizes Silvio Grassi, president of Italmopa, "our association had, responsibly, anticipated the risk of a 'perfect storm' on the durum wheat market, in light, in particular, of the significant production downturns expected in some producing and exporting countries and the low level of international durum wheat stocks. Our forecasts were confirmed by an unprecedented trend in the markets which, in two months, recorded increases in raw material prices of more than 65%”.
The prices of national durum wheat have thus exceeded, on some markets, 500 Euro/t, compared to an average of 250 Euro/t over the last five years, while those of imported wheat are now close to 550 Euro/t.
"It is important to underline", explains Grassi, "that the cost of the raw material represents on average more than 80 percent of the total production costs of a mill. It is clear that changes in market conditions of this magnitude, together with the increase of energy and logistics costs, can only have an impact on the entire supply chain and not only on the milling industry. In this context, the durum wheat supply chain table, whose appropriate convocation had been anticipated by the undersecretary hundred during our last general assembly, will be able, and this is my wish, to constitute a moment of pragmatic discussion on overcoming the numerous critical issues, which we have highlighted for more than two decades, which characterize the national durum wheat supply chain, with the active and responsible involvement of all the actors that compose it".
EFA News - European Food Agency