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      The impact of transportation on the cost of bread

      English version
      —
      News
      —
      Company’s News
      —The impact of transportation on the cost of bread
      07.09.2023

           One of the most important and socially significant products is bread. The public is concerned about the price of bread, and state agencies keep an eye on the costs of the many varieties. According to the World of NAN portal (https://world-nan.kz/news/situatsiya-stabilnaya-khleb-podorozhal-na-9), the nation has been producing less bread since the start of the year, mostly as a result of a decline in the demand for baked goods made with first-grade wheat. The cost of bread is rising, though, and as a result, since the start of the year, the price of bread has increased by 9%. What is the explanation for this, considering that bread costs primarily stem from the cost of wheat and power, followed by labor at every level of production? The price of wheat hit 185 thousand tenge per ton a year ago, according to the Grain Union of Kazakhstan. Since the start of 2023, wheat prices have dropped to 80–85, or 50–55%, below the market price. Wagon provision for the allotted time will not come at a lower rate. Thus, the cost of grain and its transit within the nation has little bearing on the increase in bread prices. Since September of this year, the tariff for using the Company's wagons has increased seasonally by an average of 0.28 tenge each loaf of bread. It is less than 0.2% when the price of a commercial bread roll is 150 tenge. Therefore, it may be inferred that the expense of maintaining wagons has no effect on the rise in bread prices. Simultaneously, a seasonal hike in the tariff will enable the Company to maintain the car fleet's technical condition and uphold its policy of offering grain to the domestic market at competitive prices, considering the unique demands of the consumer, while preserving the stability of socially significant product production, their cost, and most crucially, their accessibility for end users.

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