The price of durum wheat rises: here’s why

The entire Italian durum wheat supply chain will be affected by the increase in energy and logistic prices

The increase in durum wheat quotations – an essential component for the production of pasta – continues unhindered on international markets. This is what Italmopa, the Association of Industrial Millers of Italy, underlines with regard to the violent increases in durum wheat prices over the last two months.

Last July – underlines Silvio Grassi, president of Italmopaour association had already anticipated the risk of a ‘perfect storm’ on the durum wheat market. Mainly due to the significant production decreases expected in some producing and exporting countries and to the low level of international stocks. Our forecasts have been confirmed by an unprecedented performance of the markets which have recorded, in two months, increases by over +65% in the quotations of the raw material.

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Quotations of Italian durum wheat have thus exceeded, on some markets, 500 euro/tonne – compared to an average of 250 euro/tonne over the last five years – while those of imported wheat are now close to 550 euro/tonne.

It is important to underline – says Grassithat the cost of the raw material represents on average more than 80% of the total production costs of a milling company. Changes in market conditions of this magnitude, together with the increase in energy and logistic costs, will undoubtedly have an impact on the entire supply chain”.

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