Pasta price hikes on the horizon: Transportation costs hit hard

Rising production costs in the pasta sector have brought the possibility of new increases in shelf prices to the agenda. Aykut Göymen, President of the Turkish Pasta Industrialists Association (TMSD), stated that increases in expense items other than raw materials are creating serious pressure on producers.

Göymen noted that wheat purchased from the Turkish Grain Board (TMO) at 18,500 liras per ton reaches the factory at approximately 19,500 liras when transportation costs are added. Stating that this difference drives up production costs, Göymen drew attention specifically to the rise in shipping fees.

Expressing that the prices applied by transport cooperatives increase the burden on industrialists, Göymen said that transportation that could be done for 500 liras per ton in the market sometimes rises to 1,000 liras. Noting that freight costs have reached twice the normal level, Göymen stated that they expect the government to take action on this issue.

The TMSD President reported that while the share of wheat in total costs was approximately 70 percent in the past, this rate has fallen to 67 percent, while the share of other expenses such as logistics, packaging, and energy has risen to 33 percent. According to Göymen, this cost pressure on pasta, which has a low per-kilogram sales price, may be reflected in prices as a hike.

News Source: 12punto