From
February of this year, there have been continuous and steady increases
in the price of wheat purchased from our overseas suppliers. In
March, prices rose a marginal 3 percent over February.
These increases were absorbed by our company. Our July shipment
was 9% higher than February, which our company also absorbed in
the hope that prices would eventually fall.
However, with the volatility of the future’s market and
declining world ending stocks, wheat prices continued to climb
to levels higher than they have been since 1997. Last month’s
shipment was bought at an unprecedented 21% increase over February.
Some of the conditions which continue to affect the price of wheat
on the world market stem from increases in U.S. Domestic and ocean
transportation cost, droughts in China and the United States and
other factors relating to the high demand for corn and other grains,
in the production of ethanol and bio-fuels in the United States.
Locally, too we have been faced with higher trucking and electricity
cost associated with increases in the price of fuel and other
petroleum products.
Needless to say, we are not in a position to continue to absorb
these increases. Regrettably as of Monday, October 16, we are
forced to adjust prices upwards by an average 5.5 percent, in
order to partially cushion the effect of the rising costs.
We trust that we would be in a position to hold those prices as
long as the market remains fairly constant with improved conditions.
We look forward to your kind consideration and understanding in
this matter.
Caribbean
Agro Industries
