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Tuesday, February 18, 2025

Reshaping Perspectives and Catalyzing Diplomatic Evolution

Is the global grain crisis affecting Italian pasta?

The movements of the government in Italy indicate tireless efforts; To cope with the steadily rising price of the most popular Italian pastry, with waves calling for repeated boycotts of the popular foodstuff.

why now?

Italian pasta producers attributed the price hike to products currently on the market from stocks made when raw material costs were higher than they are today.

This was confirmed by the Italian Food Association, in an official statement, with the association confirming that high costs for packaging and logistics services have also contributed to higher pasta prices.

The statement adds that the cost of pasta production has increased by 8.4% in one year and underlines that costs have decreased, but have not yet returned to pre-war Russian-Ukrainian levels and that ‘they are still high.

According to data from the Italian Ministry of Business, pasta prices increased by 17.5% in March and 16.5% in April, while inflation rates in the country increased by 8.7% and 8.1% in March and April, according to the European Central Bank. .

Pasta is under threat

Tariq Al-Rifai, CEO of the Corum Center for Strategic Studies, says the impact of commodity price hikes last year has trickled down to Italian consumers this year.

It is likely that prices will not rise in the coming months, with stable prices for agricultural crops, especially wheat.

Al-Rifai explains that the most important food products whose prices are still high, compared to last year, are only sugar, while the rest of the products have slowed down.

A survey conducted by the International Pasta Organization in 2022 showed that an Italian citizen consumes an average of almost 23 kilograms of pasta per year.

The importance of international Italian pastries is also reflected in the fact that they are the main course locally for around 60% of Italians.

For his part, the economist Nicholas Loris declared, in an interview with “Sky News Economy”, that the war in Ukraine has caused a new situation on the commodity markets with the prolongation of the conflict.

Loris adds that the past few months have seen some stability in commodity imports, but challenges persist in supply chains and sanctions reactions leave commodity markets vulnerable to volatility.

“The government should at least provide an objective analysis of the root causes of price rises and then focus on ways to ease supply chain constraints, while working to make markets more open to trade flows. , rather than restricting them,” he says.

war effect

At the same time, the Egyptian financial analyst, Mustafa Shafie, points out that Italy was mainly affected by the Russian-Ukrainian war, and the drop in wheat supplies from both countries.

In statements to “Sky News Arabia Economy”, he points out that European countries import wheat and recycle it into derivatives, in addition to pasta, which is a popular food in Rome.

He explained that food products are inflexible and indispensable, and that they are among the products most affected by the war in the last period, explaining that even in the event of a decline, they will not reach the levels of before the war.

The price of wheat hit its highest level in more than a decade in March 2022 due to the war in Ukraine, but pasta production costs have fallen since then, indicating that the rise in pasta prices is due to other factors.

Shafie thinks the chances of a repeat strike by the Italians could be an opportunity to drive down prices by controlling demand.

It should be noted that Italians staged a one-day strike over the purchase of pasta in 2007, when pasta prices jumped 20%.

retail price

The farmers’ group said that although the price of standard wheat is more or less uniform across Italy – at around €0.36 (39 cents) per kilogram – the retail price of pasta varies considerably from one region to another.

According to analysis by Assoutenti, published last April, the average prices of basic materials in several Italian markets have increased – from 1.7 euros ($1.86) to 2.1 euros ($2.33) in year to March, an increase of more than 25%.

But price increases have fluctuated widely between regions, with Tuscany reporting an increase of more than 58%, while Alessandria in northwestern Italy only recorded a 4.6% increase. %.

European anger

In the same context, the economist Omid Shoukry estimates that the continuation of the rise in prices in the months to come will lead to an increase in the discontent of the inhabitants of the old continent.

He added, in statements to “Sky News Arabia Economy”, that if prices continue to rise in Italy and the government fails to reduce inflation, discontent will increase among the population, and this discontent could lead to street protests or a knock buy.

According to Politico, the unprecedented global unrest will include more than 12,500 protests in 148 countries in 2022, mostly over food, fuel and an increase in the cost of living, with the largest events occurring in Western Europe. .

Overall, Germany, Italy, the UK and Spain were among the top 10 countries, which saw the most protests against inflation and rising prices in 2022 and l ‘current year.

world production

According to the USDA, global production is expected to reach 789.8 million tonnes, an increase of 1.5 million from the previous year.

The US report, published in May, suggests an increase in the production of wheat and its derivatives in Europe, benefiting from rainfall in the agricultural countries of the Mediterranean coast, with a drop in production in Russia and a decrease in the cultivated area. and revenue from last year’s record, by 21%, on an annual basis.

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Arab Desk
Arab Desk
The Eastern Herald’s Arab Desk validates the stories published under this byline. That includes editorials, news stories, letters to the editor, and multimedia features on easternherald.com.

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