Portugal's Bread Prices Set to Rise Amid Global Grain Shortages

The price of bread in Portugal is expected to rise from October due to increased costs of wheat and other expenses borne by companies. According to Débora Barbosa, president of the Association of the Baking, Pastry and Related Trade and Industry (ACIP), raw materials such as bread-making wheat and yeast have risen by around 10% since June.

The war in Ukraine and Russian exports are causing pressure on international markets. Wheat traded in Chicago reached its highest level since 2023 at the end of August, increasing by around 37% from the lows of late June. The European drought is also affecting corn production in France, one of Portugal's main suppliers.

Portugal produces only around 20% of the cereals it consumes and depends on imports for the remaining 80%. Existing reserves are estimated to correspond to around 15 days to three weeks of consumption. A prolonged rise in prices could ultimately increase the production costs of meat, milk, and eggs.