Prices of various food groups are expected to increase in Latvia next year, Inguna Gulbe, the head of the Latvian Institute of Agricultural Resources and Economics.
She said that grain and grain products are expected to see a rise of over 20%, with rice expected to remain at the current level. Furthermore, fruit and vegetable prices are expected to increase by about 30% at the beginning of the next season due to this year’s drought.
At the same time, she said that the price of sugar, tea and coffee will most likely remain the the current level, and that dairy products and meat are also not expected to see an increase during the first several months of 2019.
Gulbe explained that the price of grain this year has increase by about a third due to this summer’s drought, and grain is an ingredient used in many food products. However, she added that the price of pork and poultry has even seen a decrease.
Looking at global trends, Gulbe pointed out that oils, seeds, grain and fish prices are on the upwards trend, while coffee and tea has seen a slight reduction. This past October, milk and meat prices on the global market saw a reduction.
She also said that the price of dairy products have fallen when compared to the previous year due to a considerable rise in exports from New Zealand.
Gulbe added that the price of butter has declined this year, but has not yet fallen to the level before the deficit crisis.
She also said that there are very strong egg producers in Latvia, which are capable of exporting their products, and thus the price of eggs remains low.
Gulbe also pointed out that due to the increase in ingredients, as well as fuel, taxes and salaries for workers, there will also be an increase in the price of bread in Latvia next year as well.
She also said that the price of sugar in the country remains low, and is expected to remain low next year as well.