Extreme weather has taken the wheat price to highest level in five years, EUR211 per ton, or 0.9 lei per kilogram, according to international quotes.
Western Europe has been dealing with a severe drought, while Central and Eastern Europe has had to cope with lots of rain.
“The main reasons for the rise in wheat price lately are the severe drought in Western Europe, which caused a significant decline in production and quality. In Central and Eastern Europe and in Romania, as well, the heavy rain during the harvesting time led to both production and quality losses, so the amount of bakery-grade wheat was significantly lower,” Angelo Nicolae, manager of BriseGroup, one of the largest Romanian grain traders, which posted RON643 million revenue in 2017, told ZF.
Romania ranks fifth in the EU by wheat production, with about 10 million tons worth some EUR2 billion. If production remained at last year’s level, the price rise should put an extra 20% in farmers’ pockets or EUR400 million.
(English version by Loredana Fratila-Cristescu)