Dominik Barabási

2022.01.13. 20:28

The margins of commercial service providers must also be reduced in order for the mills to continue to operate, Zoltán Lakatos, President of the Grain Association, told VG. Traders may also need to reduce their profits.

The government has introduced another measure to curb domestic price increases: it has frozen the prices of six products at their October 15 prices. Among other things, the price of wheat flour, about which Zoltán Lakatos, vice-president of the Association of Grain Processors, Feed Manufacturers and Traders, talks about World economyson.

The President of the Cereals Association would consider it important to start by ensuring that the selling prices of the mills do not change, as this is the only way they will be able to prevent downtime due to falling prices.

To this end, the government should clarify the price of wheat flour, which is on a fairly wide scale, according to a government announcement.

He added.

According to him, however, the average price issued by the CSO in October, on the basis of which one kilogram of wheat flour was HUF 203, is a handhold here. This means a net supplier price of HUF 159-160, which is not higher now. Consequently, according to Zoltán Lakatos, it is a government measure

it will not be a difficulty for the mill industry but will drain the extra profit of traders.

The president of the organization believes that the mills will withstand such conditions by April 30th. However, he said there could be disputes with traders as they would try to force them to deliver cheaper. But since the bakery industry has only two to three days’ supply, it would be dangerous to force the milling industry into loss-making production and then downtime.

In his opinion, the government measure is completely foreign to the market, although it will be good for consumers in the case of flour.

However, goods weighing 1-2 pounds make up only 15 percent of the use of flour, he continued. He added that the flour prices have risen in recent months due to high wheat and energy prices. THE Due to increased costs, the mill industry would have to achieve a transfer price increase of at least HUF 10 per kilogram, which did not even catch up with the increase in wheat prices.

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