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Supply Chain

Ukraine To Help Food Producers Cope With High Gas Prices

Ukraine's government will prepare measures to help domestic food producers, including bakers, cope with a rise in gas prices, prime minister Denys Shmygal has said.

Following a record jump in gas prices across Europe, Ukraine's prices have also risen, with flour millers reporting 10 gas price increases this year.

Support Mechanisms

"On behalf of the president, the government is developing mechanisms to support Ukrainian bakers and also Ukrainian producers of staple food products," Shmygal told a televised briefing.

He did not give detail, but said the government intended to limit the rise in prices for some types of bread.

The government has a list of basic foods considered especially important, including plain bread, cereals, vegetables and milk.

At the beginning of the year, the government limited the rise in gas prices for households by switching retail consumers to annual contracts with fixed prices until the end of April.

Restrict Food Wheat Exports

Last week, sources told Reuters the government could restrict food wheat exports from the country later this season, as it seeks to tame inflation that is close to record levels.

The agriculture ministry and traders sign an export memorandum each season. It is currently set at 25.3 million tonnes without specifying the amount of feed or milling wheat shipments.

The government could update the memorandum and add a 4 million tonne milling wheat export limit for the rest of the season, the two sources said.

Ukrainian grain traders' association UGA said this week Ukraine had enough wheat to ensure its domestic food needs and there was no need to limit exports.

In March of this year, leading food producers' associations in Ukraine said they would keep domestic prices stable for several popular food items to help stave off inflation already hitting neighbouring Russia.

News by Reuters, edited by ESM. For more Supply Chain news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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