Cyprus Mail 18 March 2022 - by Angelos Nikolaou
A souvlaki pie that before the war in Ukraine cost €5.50, with the latest increases in raw materials soars by €0.50 - €1.00 and has therefore been formed from €6.00 - €6.50.
Price increases in energy, meat, LPG and sunflower oil lead souvlitzidika and restaurateurs to price increases of 10%-20% for products selling meat as raw material. The price of pork has already risen by 30 cents per kilogram, while another 15 cents went up the price of chicken.
The sunflower oil was sold at €13 and now the price has gone to €18 per barrel. According to circles in the restaurant market, the prices of both meat and other products supplied are expected to increase further in the near future, while in recent times the price of vegetables accompanying souvlaki is also rising.
The latest increases in meat prices are a consequence of huge increases in feed prices. The prices of corn, barley and soybeans have skyrocketed and the first two products are now sold at €400 per tonne, and soybeans at €600. Feed costs make up 70% of the cost of producing animals.
However, the above price on souvlaki seems to be only the first since it follows and continues. According to information from "F", all livestock sectors are ready to proceed to large increases in both pork, chicken and lamb and goat meat. In Cyprus, meat market shares range from 40% to pork, 30% to chicken, 20% to beef and 10% to lamb.
Earlier this week was the first major increase in the price of pork of 10% and there was a first increase of 30 cents per kilogram, followed by a second increase early next week for another 10%. Pork will be more expensive to the consumer by €1 per kilo and will go from €4 to €5 per kilo. Pig farmers proceeded to a first increase in live animals from €1.60 to €1.75 and the price of the carcass went to €3.50 along with the slaughter fees which also increased in turn.
Increases also come in the price of chicken due to the increases that occurred after the war in Ukraine and the fact that the Ukrainian market that supplied Cyprus was completely lost, while other traditional markets such as Poland and Romania either have obstacles or have increased their prices and Cypriot traders have turned to the Latin American market. The increases will be around 20%. Therefore, those who currently buy whole chicken at a price of €3.70 per kilo will soon see an increase to €4.40 per kilogram. As far as the chicken fillet that most consumers buy is concerned, from €9.80 it will reach €11 per kilo. It is noted that the Cypriot market is covered by 40% by local chicken and 60% imported. There is not expected to be a shortage due to reduced arrivals on the one hand and on the other hand with the large increase in price it is estimated that demand will decrease.
Increases in the price of meat from sheep and goat farmers are estimated to increase by around 12%. The price will therefore go from €8.50 per kilo to €9.50.
All livestock sectors have been in despair lately with the increases in cereal prices and in a difficult position to feed their animals with the right proportion of feed. At the same time they are waiting for help from the state.
Concern about the viability of leisure centres
The war in Ukraine will also affect the industry of recreation centres, says a statement from the Pancyprian Association of Leisure Center Owners (PASIKA). It notes that based on a survey in Greece, conducted recently in relation to the pandemic crisis, the leisure centre industry will be able to return to a state of profitability in 2024. "It is an indisputable fact the loss of a significant percentage of visitors to our country from Ukraine and Russia, where a part of this percentage will be attempted to be covered by other markets. It is, however, equally serious and we hope that the problem will not turn out to be greater afterwards than the shortages of goods in the food chain and the now daily increases in most products and of course in energy, where they make both the operation of businesses and their viability very difficult", he added.
For these reasons, it is noted, the Deputy Minister of Tourism, "realizing the huge danger that enters both the hotel industry and that of the recreation centres, has expressed the intention to propose the lifting of all restrictive measures so that both visitors to our country and permanent residents can enjoy their holidays freely in the country".
