Food prices rose again in Portugal, with spiral pasta increasing 22% in one week, spaghetti 21% and sliced bread 14%. The food basket monitored by DECO PROteste now costs 254.73 euros, 12.91 euros more than at the beginning of 2022, representing a difference of 35.71%. Stewing beef leads the cumulative increases with a rise of 120%, to 12.81 euros per kilogram, while large cod increased 89% and cauliflower 88%. On international markets, rice rises 55%, soybean oil 38%, sugar 21% and corn 15%.
The increases cannot be explained solely by the cost of raw materials. The production chain includes labour, energy, transport and distribution. In the case of bread, flour represents only 14.14% of the total production cost, while personnel costs weigh 40.31%, distribution 15.53% and energy 11.16%. The Association of Bakery, Confectionery and Similar Trades has already warned that members will raise the price of bread in October, warning of the shortage of bakers and distribution workers.
Portugal imports about 80% of its cereal needs, depending on countries such as Ukraine, France, Italy, Germany and Canada. Domestic wheat production covers only 20% of consumption. The president of the National Association of Cereal Producers warns that available national reserves are only about 15 days to three weeks of needs, a small margin. Europe is experiencing a drought that may force Portugal to seek cereals further away, increasing costs. With the expansion of irrigation in Alqueva, lands that produced rainfed cereals now have more profitable alternatives such as olive groves and almond orchards, reducing the national cereal area.
