Cost components of bread are increasing due to logistics expenses
By the end of 2026, bread prices in Ukraine may fluctuate within 5-10%, provided that military risks do not escalate. This was stated by Yuriy Duchenko, President of the Ukrainian Bakers Association. This was reported by Ukrinform citing the Ukrainian Radio, according to the portal PromPolitInform.
According to the head of the industry association, the domestic bakery market is characterized by high competition, which serves as the main deterrent against unjustified price growth. Additionally, lower flour prices caused by problems with grain exports are currently helping to keep prices partially stable.
Production Cost Factors
However, other cost components have a significant impact, including fuel, logistics, operating on backup generators, and frequent attacks on enterprises. Fuel costs alone increased the logistics component in a loaf of bread by 60 kopecks, meaning all savings achieved through cheaper flour were neutralized by expensive logistics.
Trade Markups and Taxes
Certain mass varieties of bread are subject to trade markup limits of no more than 10 percent. Retail stores actually profit not from high markups on bread, but from customers purchasing other related goods alongside it, creating an incentive to keep prices minimal. Furthermore, buyers still pay the 20 percent value-added tax to the state on the final product.
Photo: Ukrinform
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