There are signs that Jamaican consumers will be spared from increased food prices over the next two months despite a dramatic rise in the cost of wheat on the world market.
This comes as the island's sole wheat-processing facility, Jamaica Flour Mills, says it has no plan at this time to adjust prices.
Two month supply
As was reported on Tuesday bakers are worried that if the cost of wheat continues to climb it will lead to higher prices for baked products.
However, Jamaica Flour Mills says it currently has about two month's supply of the grain.
It was purchased before the cost of wheat reached a 37 year high due to drought and fires in Russia which is the world's third-largest exporter.
“Jamaica will fare fairly over the next couple of months JFM through their grain division has forward purchased most of the categories of wheat for Jamaica, both spring wheat and soft wheat, so we should be covered at least through the end of September. We had bough through September so we are good through the end of September maybe until the middle of October,” said Derrick Nembhard, Managing Director of Jamaica Flour Mills.
Farmers spared
And local farmers could be spared from the effects of unstable grain prices on the world market.
On Tuesday the BBC reported that chicken, pork and beef prices will soar as wheat is a key component of animal feed.
However, Vice President for Marketing Feeds and Agricultural Supplies at Jamaica Broilers, Conley Salmon, says he is hopeful that the cost of inputs will stabilize.
“We are hoping that it won’t because of the fact that the harvest is going to start at the end of September and hopefully this will temper the tendencies for corn prices to follow that of wheat,” Mr. Salmon said.
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