Agro Perspectiva

Estonia: pekari warn of a rise in price of bread

13.03.2007 08:30 "Agro Perspectiva" (Kyiv) — According to «Postimees», leading bakeries of Estonia predict for 2007 almost 10 % a rise in prices on bakery products, referring on growth of the salary and rise in price of raw material. Director of association Eesti Pagar Vejkko Vaarya has assumed, that 10 % the rise in prices will be caused by rise in price of raw material, that is, flours(torments), and also increase of charges on a labour and services of logistics. The representative of firm Euroleib Ilmar Poll has recognized, that the rise in prices in branch is inevitable. First of all it(he) has named the reason of rise in price deficiency of a labour. As he said, the rise in prices on a flour(torment) will make up to 3 % from 10 %-s’ rises in price of bread. At the same time, representatives of the companies on a batch of bread and roll Êalev Chocolate Factory AS, AS Balti Sepik, AS Leibur have stated more conservative forecasts, having noted, that increase of the prices depends and on other factors, including, from a grain yield. As they said, the crop of 2006 in the world was small, procurement prices of a rye and wheat have as a result grown. World reserves of grain for last 30 years the smallest. Experts believe, that the role development of alternative sources of fuel will play also, including, manufacture of bioethanol from grain is, in turn, has already pushed to a rise in prices on grain worldwide. Executive director Leibur Ants of Progod-sends considers(counts), that cost of bread in Estonia is obviously underestimated. " It is wrong, when the loaf of bread costs(stands) less, than the daily newspaper, the ticket for the bus or hour of a parking in the center of Tallinn ", — it(he) has told. It(he) has added, that average cost of bread of 1 kg in Estonia in 3–4 times is less, than in the Europe. " Thus for bakeries we do(make) investments into the equipment under world(global) quotations, considering consumer ability of inhabitants of Estonia ", — has noted Progod-sends. It(He) has given an example, when in a year on the person in Estonia leaves approximately on 50 kg of a batch under the average price of 15 crones ($1,26), that in a year makes 750 crones ($63). If 1 kg of bread will rise in price for 20 % up to 18 crones ($1,5) in recalculation for a year growth will make 250 crones ($21). In comparison with charges of family on gasoline, water, gas and heating it is a drop in the sea, has told Progod-sends. It(he) has added, that in February — March of the price for bread and a roll already raised(increased), for example, Leibur has risen the prices almost for 10 % and in the nearest half a year does not plan new increases. At the same time, a new rise in prices on bread to not avoid, if will rise in price fuel, gas and an electricity, and to all to it(this) will increase also a bad crop.