The price of instant noodles rises due to the inflated price of wheat

The cost of instant noodles is expected to rise as the Russian invasion of Ukraine continues to wreak havoc on wheat prices.

Instant noodles, or ramen noodles, have gained popularity since they were modernized and mass-marketed, beginning in the 1950s. Now, the staple may be seeing a price increase after decades of sales as a low-cost option.

The increase is proof of how strongly the current wheat shortage is affecting the price of the staple foods on which the world depends.

Sylvain Charlebois, a Dalhousie University professor and senior director of the Agri-Food Analysis Laboratory, told the Star that while Canada doesn’t see the same kind of wheat shortage as other countries, local traders are seeing an increase in the price of wheat. wheat. dried wheat products.

It’s a different story in Asia, where the cost and scarcity of imports are driving price increases.

Executives from five major companies operating in Thailand have approached the government for a price adjustment, Thai news outlet The Nation Thailand. reported on monday.

Such a price increase would be the first for the product in 14 years, given a Department of Domestic Trade policy that certain products and services cannot increase prices without Thai government approval.

And earlier this month, Indonesian agricultural authorities warned that the price of instant noodles could triple due to the inflated price of wheat.

In February, an industry analysis report found that the global instant noodle market is expected to reach $38.5 billion (US) by 2027, fueled in part by growth in popularity during the pandemic.

In Canada, the same report shows growth in the instant noodle market of around two percent by 2027.

In Canada, dry pasta prices in July are 18% higher year over year, according to Statistics Canada. Other dry goods are also seeing a significant increase, up 10 percent compared to last year.

Since the Russian invasion of Ukraine—the world’s third and seventh largest producer of wheat products, respectively— dried pasta products are up 15 percent per 500 grams from January, Charlebois said.

While Canada, the world’s fourth largest supplier of wheat, does not have the same shortages as other countries, manufacturers around the world depend on Ukrainian wheat for their products, he said.

Lower inventory of imported wheat products is currently affecting the cost of commodities, Charlebois said.

“No one is buying (wheat) from Russia, and Ukraine has millions of tons in reserve, which cannot be moved so quickly,” he said. Supply chain issues, which have affected wheat prices since the invasion in February, are putting pressure on prices “in general,” Charlebois said, adding there is good news: some supply chain issues. they are fading.

Charlebois said that although there has been some movement of wheat shipments out of Ukraine, it is not enough to stem the current pressure on the market.

Rising food costs across the board require people to “recalibrate” budgets, Charlebois said.

Reducing waste by saving extra dry goods not used in a meal could be a way to stay away from the grocery store for longer periods, he said.

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