Aboitiz Group food unit Pilmico Food Corp. expects the landed cost of imported wheat to be a bit higher despite the reported softening of prices in the global market.
Pilmico president and chief executive Tristan Aboitiz said the price of wheat had started to decline after the run-up last year at the start of the war between Ukraine and Russia.
“But it really began to come off only in the last few months, so my guess is that landed wheat price will probably remain high, until, maybe, into the third quarter of this year,” he said at the Aboitiz Group shareholders’ briefing Monday.
He said net importers like the Philippines were looking forward to the coming harvest season in Europe, North America, the Black Sea and later in the year in Australia.
Global reports predicted that wheat output would be better in 2023.
“If we get good crops coming out of these major wheat producing areas, then it’s good. But, if for whatever reason, harvest falters, then definitely there is room for prices to move back up again,” Aboitiz said.
He said the company was hoping that the price of wheat would continue decline so they could pass on the decreases to customers.
“Right now we’re in a wait-and-see mode. And the balance sheet remains tight, but we’re hopeful that prices will remain low,” he said.
Local bakers continued to reel from the lofty prices of raw inputs, not only of wheat flour but also of sugar and other ingredients.