There is no shortage of wheat flour in the domestic market, just high prices, the Department of Trade and Industry (DTI) and Philippine Association Of Flour Millers, Inc. (PAFMIL) said.

Trade and Industry Secretary Ramon M. Lopez said the industry maintains a 90-day inventory of flour amid reports that some bakeries and restaurants are reducing production because of tightness in supply of wheat flour.

“Supply is good, around usual 90-day inventory but world prices are going up due to Ukraine issue, drought in India, France and US and the export ban in India,” Lopez said.

For his part, PAFMIL Executive Director Ric Pinca said prices of regular flour are within the P800 level per 50-kilogram sack from P600 early this year, but the premium flour is already at P900 per bag.

“Supply is not the problem, the price is. The mom and pop stores right now are having difficulties, but the big bakers will be able to adjust,” he said.

Pinca said that prices of wheat have gone up 48 percent already since last year but it can change anytime because Ukraine supplies 30 percent of total global wheat demand. He explained that countries importing from Ukraine are now shifting to the US, the Philippines’ main source of high protein wheat, causing prices to spiral.

Aside from the US, local millers are already sourcing wheat from Canada and Australia, which has been experiencing good harvest for three seasons already. Australia now accounts for 5 percent of total Philippine flour supply at lower prices but not high protein wheat.

Shipments from Australia also takes shorter at 10 days only while the US and Canada take 20 days plus additional 10 days for loading and unloading.

Pinca further pointed out that it is not just flour is just 40 percent of total bread production and the bulk is comprised of other ingredients such as sugar, oil, shortening where prices are also surging.

Simplicio Umali Jr., president and general manager of the country’s largest bread manufacturer Gardenia Bakeries Philippines Inc., said prices of flour already went up by 65 percent from P670 per sack last year to P1,100 due to the drought that hit North America and worsened by the Ukraine war.

All other ingredients and costs in baking have also gone up. While flour supply is stable, Umali said that baking ingredients availability is a concern.

“Supply shortages and shipment delays are already being felt, forcing bakers to limit product variety offered,” he said.