Bulgaria: Wheat prices to go up

Sofia / BG. (div) It is expected than less than half of the 2009 wheat harvest in Bulgaria will have good bread producing qualities which will inevitably lead to a growth in its price, the Bulgarian Association of Grain Traders told local medias in Bulgaria. Right now wheat from the previous harvest is traded at 110 EUR per ton, while the newly harvested quantities are yet to appear on the market. It is expected that some 3,5 million tonnes of grains will be harvested this year, while only half of that quantity is enough for bread production in the country. According to the Association, even if the prices go slightly up it they will still stay within the limits of grain prices on the international market. The Federation of Bread Bakers in Bulgaria commented that a raise of the price would be fair to farmers and their labour. The Federation pointed out that if wheat prices go up, the price of bread for the final consumer will inevitably grow as well.

Addition: Earlier dry conditions have damaged yield potential in some EU member states so, as harvest progresses, variable results are expected. Bulgaria is one of the worst-affected countries – government figures put the wheat crop at one million tonnes below last season at 3,5 million tonnes – the British «Farmers Weekly» reported. By 15 July Bulgarian farmers had harvested almost a third of the crop, but rain and hail may have affected quality. In Romania, wheat is 38 percent harvested with yields better than expected but below 2008 levels. Quality is expected to be poorer with 70 percent feed against the norm of 50 percent.