Home » Divella: “Extra costs to produce pasta” on the way, price increases of up to 38%

Divella: “Extra costs to produce pasta” on the way, price increases of up to 38%

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The flare-up in the price of wheat and the expensive bill eventually reached the shopping cart. A kilo of pasta, which in September the large retailers bought for 1.10 euros, now costs 1.40. And by the end of January it will reach 1.52 euros. An increase of 38%. Vincenzo Divella, CEO of the Apulian group of the same name, takes into account how much more will have to come out of the pockets of families for the symbolic product of the Italian table. A thousand tons of dry pasta produced per day, 300 million turnover. The second pasta brand in the country.

How did this increase come about?
We had to ask for the first 30 cents after the summer, to cope with the soaring cost of our main raw material, namely wheat. Between June and today, the price of wheat on the Foggia stock exchange has grown by 90%. An increase that we could never have amortized on our own, just think that for us semolina represents 60% of the entire production cost of pasta. With the arrival of autumn, then, all the other increases took place: the cost of cellophane increased by 25%, gas by 300%, electricity too. For this reason, in January we asked the large retailers for another 12 cents per kilo. An increase that should become effective with the renewal of orders at the end of this month.

These are important figures, have consumers not complained, perhaps switching to sub-brands?
Consumers read, they know that the price of raw materials has risen, they have also touched it in their bills. This is why they have absorbed the increases without disaffection: after all, pasta is still the food that costs the least of all. Large-scale distribution initially resisted, then understood. The only thing he asked us was to spread the increases gradually: the first ten cents more in October, the second in November, the third in December. And now the new quota.

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Will the price increases stop there, or should we expect a further increase in prices?The truth is that prices could rise again. In December, the production plants stopped for 15 days and nobody bought wheat. But already yesterday, at the Bari commodity exchange, the first that met after the New Year, there was an increase of 6%. The pasta factories restart their engines, and immediately the price of wheat rises. And then there is another thing that worries me: will national wheat be enough, until June?

The last wheat campaign in Italy was discreet …
True. It is in Canada and the United States, the world‘s largest producers, that the crop dropped by 50%. The result was that the price of Italian wheat is today at 56 cents per kilo, the lowest in the world, while that of Canadian wheat has galloped up to 65 cents. Today we use national wheat for 70-80%, but although the last production went well in Italy, we have never been a self-sufficient country, so I will have to buy more foreign wheat, which is more expensive today. Not only that, but I will pay more for the Italian wheat I use, because Italian farmers, as demand increases, will increase the price. That’s why the increases may not end there.

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