A significant increase in bread prices is expected in Ukraine.

In the first ten days of February, Ukrainians will see bread prices rise by approximately 5%. This is due to a sharp increase in costs for producers: electricity, working during power outages, and wage increases. For consumers, this represents a few hryvnias per month in added income, while for bakers, it’s crucial to keep bread on the shelves.

This was stated by the first vice-president of the All-Ukrainian Association of Bakers, Oleksandr Taranenko.

According to him, businesses plan to revise prices as early as next week, adding about a hryvnia to the standard loaf of bread.

He noted that production costs have increased by 6-7% since the beginning of the year. Electricity has taken the brunt of the impact: tariffs increased by almost 30% in January, adding 2-3% to expenses. Power outages and the minimum wage hike are also impacting the industry.

Every power outage poses a risk to the finished dough: if power is lost during the baking or starter maturation process, the product is ruined, and the manufacturer has to start the process over again, he explained.

Taranenko noted that most large enterprises have generators, but they are not designed to operate continuously for several days. In winter, they use Arctic diesel fuel, which is more expensive than standard fuel and can freeze in severe frosts.

Small bakeries are often forced to temporarily suspend operations, and the delivery of flour and finished bread is complicated by Russian infrastructure disruptions and freezing temperatures.

Another factor is the increase in the minimum wage effective January 1. For an industry where a significant portion of processes remain labor-intensive, this is a significant burden. As a result, producers have found themselves in a situation where maintaining stable operations without price adjustments is becoming increasingly difficult, he noted.

According to Taranenko, a 5% price increase is roughly equivalent to a hryvnia or a hryvnia plus a bit on a loaf. A standard loaf of bread typically lasts for several days, so on a monthly basis, that’s just a few extra hryvnias.

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