The Caribbean Millers’ Association (CMA) announced on Wednesday that due to challenges experienced within the industry last year, the price for flour and flour-related products will be increased.
CMA said that it is aware of the effects the increase will have on consumers and assured that all increased will be kept to a minimum. It further said that any future decreases will be passed to consumers.
From January to July 2010, CMA explained in a press release issued by President Elvis DeRiggs, the price of wheat traded relatively flat on the world market. However, the price began to climb last August as a direct result of drought conditions in Russia, which caused a 34% reduction in the crop and all exports of that country were banned.
This event, CMA said, was followed by damaging frost in Canada, which caused poor yields and low protein levels which resulted in only 33% of the wheat being of milling quality. Other grain growing countries around the world, CMA noted, have had similar challenges and it is forecasted that world price will be reduced by more than 35 million metric tonnes.
Wheat prices, CMA further pointed out, are linked to corn and soya beans. These prices have risen considerably within the last year. This has caused a 50% increase in wheat prices since July 2010. Other input costs have also affected the industry, CMA said, and the increase in price is necessary to ensure that a high quality of products continues to reach consumers.
