Information for fruit and vegetables business in CIS
Ukraine: The Process of Bread Price Descention Began. Herewith No Administration Pressure - Slauta
The prices of bread have been already reduced in seven regions of Ukraine, as Victor Slauta, minister of agrarian policy, said. He precised that the prices were reduced for 10-12%.
As the minister affirms, the process of prices of bread reduction began without administration pressure. They just gave recommendations to regions, but "there were no decrees of Cabinet of Ministers", - emphasized V.Slauta.
He told that breadmaking firms find the possibility to reduce prices of bakery because of the significant reduction of prices of flour. V.Slauta says, that recently it was 2000 UAH/tonne and now one may buy it at a price of 1100 UAH/tonne.
Besides minister supposes that bakery become cheaper owing to the competition on the bread market.
As "AIC-Inform" informed earlier, Ukrainian bakers set expectant position on the bread market because of administrative regulation of prices in a set of regions. The administration of Ukrainian Bakers Association considers that today our bakery firms have a possibility to reduce prices for 0.1-0.15 UAH for a bakery product but at a condition that there will be no further grain prices growth. But the problem is that noone can guarantee stability of prices of grain. That is the reason why baker are not in a hurry to reduce prices of their products.
Recently Cabinet of Ministers and Public Bakers Organization signed memorandum according to which Ukrainian Bakers Association is engaged to pay off 1 million tonnes of provision grain at the price of state regional purchases till the end of October. Government representatives assured bakers that there will be no administrative price regulations.