DISRUPTIONS to the global supply chain caused by the Covid-19 pandemic have been exacerbated by the Russia-Ukraine war, resulting in soaring prices and a sinking ringgit.

Since December, food prices have risen significantly. The increase is most obvious in staples such as bread, flour, vegetable oil and canned food.

The Malaysian Insight takes a look at the items that now cost more.

Bread

Higher ingredient and transport costs saw bakeries increase the prices of baked goods beginning December 1.

Local bread producer Gardenia Bakeries revised the price of its baked goods citing a hike in the cost of raw materials and freight charges.

Consumers now pay RM2.80 for a loaf of Gardenia Original Classic 400g, up from RM2.50.

The Gardenia Original Classic Jumbo 600g costs RM4, up from RM3.55, while a 400g loaf of Gardenia Bran & WheatGerm, which was priced at RM2.50, has increased to RM2.90.

Gardenia’s actions have prompted the Domestic Trade and Consumer Affairs Ministry to launch a probe.

Flour

Flour prices have shot up following the Russia-Ukraine war.

Russia is the world’s largest exporter of wheat, accounting for more than 18% of world exports.

In 2019, Russia and Ukraine together exported 25.4% of the world’s wheat, according to the Observatory of Economic Complexity.

Locally, the price of flour has risen twice this year and is expected to go up again in July.

A kilogramme cost RM2.34 last year and RM3.20 now.

Cooking oil

Labour shortages, logistic issues and the war in Ukraine have caused the prices of vegetable oils to soar.

In Malaysia, vegetable oil was sold at between RM30 and RM45 before the pandemic but the price has doubled.

Vegetable oil prices worldwide hit a record high in February and increased an additional 23% in March, according to the United Nations Food and Agriculture Organisation.

Ukraine is the world’s largest exporter of sunflower oil. In 2021 and until before the war, the country exported more than six million tonnes of sunflower oil, about half of the world’s supply.

Russia is responsible for another quarter of sunflower oil exports but is facing difficulty finding customers due to sanctions.

Indonesia’s suspension of palm oil export also drove prices up. It has since resumed exporting.

Canned food

The pandemic, freight costs, inflation, and supply issues have caused canned food prices to shoot up.

Compared to last year, the prices of canned food have gone up 10-20%.

The price of canned sardines went up the most, from RM5 to RM8.20 while baked beans went up from RM3.50 to RM4.20.

Pork

Pork prices have risen five times in the last five months to reach a record high.

Sold at RM700 per 100kg at the start of the year, the price of pork has reached RM1,140 for the same weight and will most likely go up again.

The main cause of the price hike is supply and demand problems, as most states no longer issue licences to rear pigs.

Chicken

The ceiling price of RM8.90 for chicken since February has left poultry farmers operating at a loss.

As the price of feed soars, farmers have urged the government to remove the ceiling price to allow them to sell at market rate. The ceiling price will expire on June 30.

The past weeks have seen shortages due to a surge in demand.

Coffee and tea

Malaysians will be paying more for tea and coffee at the cafes as the prices of condensed and evaporated milk continue to go up.

Coffee shops have twice revised the price of tea this year. Coffee now costs RM2.70 compared to RM2.50 earlier in the year.

Black coffee cost RM2 but has since gone up to RM2.20.

Milo, a favourite chocolate malt drink, now costs RM3, compared to RM2.80 previously.

Beer

Carlsberg Brewery Malaysia Bhd said it will increase the prices of some of its products from July 1 due to rising input costs.

It adjusted prices by 5% on November 15.

The new prices for the group’s beers, stout and cider will take effect from next month but Carlsberg said the retail price will be at the sole discretion of the sellers.

Carlsberg said despite its cost mitigation efforts, it has had to adjust prices again due to increasing input costs worsened by the Russia-Ukraine conflict.

With its two largest exporters at war, wheat, the main ingredient in beer, is in short supply. – June 8, 2022.