Experts do not exclude growth of retail prices for oat flakes in RF

MOSCOW, March 4. Experts do not exclude growth of retail prices in Russia on cereal due to insufficient harvest of oats in 2015, the wholesale price for this crop for the six months increased by 40%. This was reported in the Institute for agricultural market studies (IKAR).

According to the Deputy of the General Director of IKAR Irina Glazunov, the rising price of cereal was primarily associated with the reduction of gross yield of oat in 2015. According to IKAR, in the past year, the collection of oats amounted to 4.5 million tons compared with 5.3 million tonnes in 2014. As a result, in the Altai region, one of the main producer of oats, the prices for food oats at the beginning of March was 9.5 to 10.5 thousand rubles per ton, while that in early August the price was 4 thousand rubles per ton. The rise in prices of raw materials caused an increase of prices of cereal – the average wholesale price of cereal “Hercules”, which at the beginning of September 2015 was $ 14.8 thousand rubles per ton, in early March of 2016 has increased by 40% and exceeded 25 thousand rubles per ton.

According to experts, on this background not exclude the further growth of prices on the wholesale market and in retail. “The share of food oats is approximately 5-7% of gross collection in any given year. A significant reduction in the proportion of oats, suitable for milling purposes, causes growth of prices. This situation occurs in the current season. It is not excluded that the trend of rising prices for cereals in the future, as long as the oat rises in price advancing rates in comparison with the prices of “Hercules” – says Glazunov.

As noted in the industrial organization, cereal is one of the fastest growing segments of the market of cereals and cereal products. By estimations IKAR, their consumption is 120-130 thousand tons with prospect of further growth.