Super Value chief ‘thrilled’ at Ukraine supply restart

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Super Value’s principal says he is “very thrilled” that Ukraine has begun to ship grain and related products again although it will be some months before Bahamian consumers see any food price benefits.

Rupert Roberts told Tribune Business in a recent interview that Bahamian food stores typically order product some two-and-a-half months out so it will take time before Ukraine’s supply resumption - and the fall in global wheat prices and other staple commodities - makes its way into the local food chain.

Russia and Ukraine reached a late July deal for the latter to resume grain, wheat and other agricultural exports from its Black Sea ports, supervised by Turkey and the United Nations (UN). The hope is that the increased supply will help stabilise world food prices, with some products increasing by up to 50 percent in The Bahamas since supply issues emerged, while fighting off malnutrition, hunger and starvation in developing countries.

“I was very thrilled. That will be a big roll-out. Where that grain goes, it’s going to free up the world market and impact the prices for us. It’s really good news. I hope more of it happens,” Mr Roberts told Tribune Business. “That’s really a drop in the bucket of what Ukraine and Russia have to export and, of course, the rest of the world needs them to grow again and everything else. So it’s really good news. I was surprised when they made the agreement, but it’s good news.

“Those are two big volume items; grain and flour, and related products and cooking oil. They’re big volume items, so if they come down it will be a great help to the budget. Let’s take cooking oil. Cooking oil in some cases doubled, in some cases tripled. But we had almost a year’s supply. We had at least ten months of cooking oil, which we didn’t buy at full price.”

Wheat commodity prices, which peaked at $13 after Russia’s Ukraine invasion began, on Friday were reported by the New York Times to be trading back at $8 per bushel following the two countries’ deal - a level not far from the $7.70 per bushel that prevailed immediately prior to hostilities.

Mr Roberts, while agreeing that “many, many items related to grain” will see their prices come under pressure, added that it may still be some months before Bahamian consumers feel the relief in their food budgets. “Anything we order now is not going to come in for two-and-a-half months,” he told this newspaper. “They’re going to price two-and-a-half months from now. Whatever prevails two-and-a-half months from now we’ll get it. They’ll price it accordingly.”

Philip Beneby, the Retail Grocers Association’s president, said: “There’s some griping here and there about food prices, but everybody understands this is a worldwide phenomenon that we’re going through and The Bahamas is no exception. What can you do? The only thing you can do is govern yourself and buy what you need and, what you don’t need, you don’t buy.”

Adding that it was impossible to predict when global food prices will ease, he added: “You cannot put any gauge or timeline on it at this time. We’re still dealing with COVID. We just have to hope for the best. We are an importing nation; that’s where we are. Even that [the Russia-Ukraine deal] will take some time to trickle down because you’re dealing with existing inventory.

“We have to exhaust existing inventory. Without a doubt there have been price changes and all of the changes are trending upwards. There has been some tremendous increases in terms of some cooking oils and other by-products and the like. Some of the areas I can recall have increased by as much as 50 percent just like the price of fuel has been increasing.”

Comments

ThisIsOurs says...

A 3 pack of oreos at retail on amazon is 12.85, a single is 5.68. How does as single pack which had to be bought at bought at wholesale price cost 9.70 in Nassau?

Posted 2 August 2022, 2:43 p.m. Suggest removal

ohdrap4 says...

The GOVT charges 40% duty plus VAT on it.

Bake your own cookie, butter, eggs, flour, no hight fructose vorn syrup. It will taste better.

Posted 2 August 2022, 2:53 p.m. Suggest removal

ThisIsOurs says...

Firstly I didnt buy it, I just noted the price and thought it was outrageous. Same as I noted a 4oz bottle of vanilla for 14 dollars **before** COVID. Didnt buy that either.

But you're missing the forest. A 3 pack bulk purchase put the retail price at about 4 dollars per item. Buying multiple cases with possibly 48 per case and with a 2months supply and bulk discounts, probably puts the price at 2-3 dollars. It dont matter if you put 100% duty on it. ~10 dollars is inexplicable

Posted 2 August 2022, 3:07 p.m. Suggest removal

ohdrap4 says...

The rule of thumb for merchants is about 3 times the purchase price. For all things which are not price controlled.
Try it on a few items and different places.

Once you pay for items, plus shipping , plys brokers, plus transportation, you are at twice the price, so the markup is about 30 to 40% on a good day.

Some merchants just double the landed price, making it 4 times what amazon charges.

That is why a kitchenaid stand mixer sold at amazon for 180.00 retails for 550 plus VAT locally.

Posted 2 August 2022, 4:01 p.m. Suggest removal

ThisIsOurs says...

Then why did it sell at 6 dollars before? These price jumps on single items cant be justified. Why did toilet paper go from 5+ to 10 dollars on the announcement of 7.5% VAT? These retailers use "news" of price increases as justification to price as high as possible. Gas has been on the decline for 6wks now? Down almost a dollar has any gas station put gas back to 5 dollars?

Posted 2 August 2022, 5:54 p.m. Suggest removal

ohdrap4 says...

Well, I am sure the jumps on single items happen all the time. But people simply stop buying it, and then the items go on sale-- I watch carefully what interests me.

OK flour cost 3.39 vat free in December. Then they put it on sale to deplete old stock for a number of months about 3.59 plus VAT. Now the new stock goes for 5.79 plus VAT.

I only buy what is reasonable. Now that lamp chops go for nearly 8 dollars, I just do not buy them.

I like Sauers mayonnaise because it tastes the same as my homemade mayonnaise. That went from 2.99 to 4.39. But I found it reduced to 2.99 because no one bought it.

There is also cost shifting. If they cannot charge extra for the milk, they divide the extra between the pancake mix and the syrup. Gotcha. But not me, I make my own pancake and my own syrup.

Posted 2 August 2022, 6:26 p.m. Suggest removal

ThisIsOurs says...

I think we agree

Posted 3 August 2022, 5:38 a.m. Suggest removal

ohdrap4 says...

Our flour never came from the Ukraine.
But now Trudeau Castro said he will cut fertilizer by 30%, so watch the price go up.
The 4lbs OK flour now sells for nearly 6 dollars, and the price is controlled.

Posted 2 August 2022, 4:03 p.m. Suggest removal

JokeyJack says...

"Adding that it was impossible to predict when global food prices will ease, he added: “You cannot put any gauge or timeline on it at this time. We’re still dealing with COVID. "

??????????? We were never dealing with Covid, ever. The governments won't allow medication for this illness for those who get it. They have only allowed the injection of some tingum and then people seem to still be getting sick. They claim that Biden is sick too. So they claim, but u know election coming and they need mail-in ballots to "win".

Posted 3 August 2022, 9:35 a.m. Suggest removal

tribanon says...

Can he point to the Ukraine on a world map?

Posted 3 August 2022, 10:15 p.m. Suggest removal

Log in to comment