Ukraine invasion puts local food producers in a tough spot as commodity prices surge
Food producers have to try and run efficient volumes through their factories, says Sasfin Wealth senior equity analyst Alec Abraham
As the price of wheat, maize, edible oil and fuel surge in the wake of the Russian invasion of Ukraine, JSE-listed food producers and grocery retailers face a tough balancing act.
Companies cannot absorb all the sharp price hikes in essential food commodities, but if they pass on rampant price increases to consumers, they run the risk of seeing demand plummet, especially for discretionary items such as biscuits and treats, and could lose customers to rivals, analysts said this week. ..