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The rise in energy and grain prices will not stop with the war in Ukraine. Added to this are wheat supply problems, as Russia and Ukraine are major exporting countries.
Russia and Ukraine alone represent close 30% of world wheat production. The ongoing conflict will have consequences. Will we experience a short-term shortage? In Napoli (Italy)the company Cuomo is one of the oldest in the manufacture of pasta. The production lines are running normally, because the factory has decided to produce with Italian wheat. But this is expensive. “He a year ago, we paid 57 euros per 100 kg. Today, we pay 88 euros“, confides the technical director of the plant.
The cost of energy is another problem, because the price of electricity or gas is on the rise because of the Ukrainian conflict and the economic recovery post covid. Thereby, Amelia CuomoGeneral Manager of Pasta “Cuomo”has seen some of its bills double in a year. “On went from 273 euros to 414 euros”she says. However, there is no risk of a shortage, as wheat crops can be increased in the south of France and the north of Italy if the market calls for it.