Wheat export restrictions in Kazakhstan, Russia and Ukraine: impact on prices along the wheat-to-bread supply chain.

Author:

Götz L.,Djuric I.,Glauben T.

Abstract

Abstract

Kazakhstan, Russia and Ukraine (KRU) are among the grain-exporting countries that implemented wheat export restrictions between 2007 and 2011 during the global commodity price peaks. This chapter provides an overview on the price effects induced by wheat export controls in the KRU region. It becomes evident that the domestic price effects of export controls were heterogeneous among the KRU countries, and that domestic prices were only partially insulated from international price developments. Also, export controls increased, rather than decreased, domestic wheat price volatility. Furthermore, the effectiveness of export controls as an instrument to protect against high food prices is questionable, particularly in the case of wheat, which is transformed to an end consumer product in a complex supply chain. In all three KRU countries, the intermediate milling industry did not transmit the price increases of the wheat price to the flour price. Instead, the milling industry increased the flour price proportionally, which increased bread production costs and led to higher bread prices throughout the KRU region.

Publisher

CABI

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