Bakers need subsidies

The Russian Union of Bakers (RSP) applied to the Ministry of Agriculture in connection with the need to support the bakery industry.

Since the beginning of the year, the cost of flour has increased by 3000 rubles per ton, the prices for electricity, delivery, and imported components have increased — the list goes on.

An important fact is that many enterprises for baking bread and bakery products are on the verge — the profitability of production has dropped to 0.5%.

The region is not an exception in the current economic situation and asks the state for support: the allocation of subsidies that will cover part of the cost of flour production, and the introduction of additional restrictions on grain exports.

At the moment, only those enterprises that have a positive credit history, and many have a negative one, can apply for subsidies.

Since the beginning of this year, all types of flour have risen in price:

premium + 19%

first grade + 23%

grade 2 + 18%.

At the same time, the cost of sugar increased by 100%, and vegetable oil — by 50%.

Due to the sharp rise in the price of raw materials, flour production at many enterprises became unprofitable, which forced the prices to rise.

Therefore, millers are faced with a dilemma: the price of wheat is growing, and the regional authorities and bakers are forcing to keep the prices of flour.

The rise in grain prices hit not only millers and bakers.

Not so long ago, the Rospotitsesoyuz made a similar request to the Ministry of Agriculture.

Higher grain prices have led to a decline in the profitability of poultry farmers, which fell to a minimum level of 7%.

Rosptitsesoyuz asks for subsidies for the purchase of feed, as well as pay more attention to the regulation of the grain market.

Otherwise, some manufacturers may simply go bankrupt.

The continuation of such dynamics of price growth in the future may lead to a drop in demand for raw materials, a reduction in production and an increase in unemployment.

The depreciation of the ruble helped exporters recover losses during the first wave of the pandemic.

For the enterprises of the meat, dairy and bakery industries, which work directly with customers, the situation turned around: the prices for feed, fertilizers, raw materials, etc., increased: for all components of the cycle that are directly or indirectly related to the production of products.

For example, the cost of vitamins and some types of feed amino acids, which are not produced in Russia, increased by 30-50%.

As a result of this rise, the prices for compound feed increased by 75%.


And in the cost of poultry and livestock products, feed costs account for 70%.

Further, the rise in price passed to all branches of the livestock chain, and ultimately to the consumer.

It is in the fall that we observe a widespread rise in prices as a consequence of the March ruble crisis.

At the same time, household incomes are falling, and experts believe that we will see the full consequences of all economic changes at the end of 2020 and in 2021.

The Ministry of Agriculture promised to consider all appeals. The ministry believes that the introduction of quotas for the export of grain from January 1 to June 30, 2021 will positively affect the profitability of both millers and livestock breeders.