GREAT WHITE, Mich. (WJRT) — Russia’s war with Ukraine may be halfway around the world, but it’s worrying some central Michigan businesses already facing rising commodity prices in due to a booming economy and transportation problems.
Don’t think for a moment that there will be a price drop soon.
Indeed, Ukrainian exports could literally come to a halt as Russian forces enter.
Their war with Russia could hit consumers here in the United States in ways you might not even have thought of.
This is because Ukraine exports 10% of the world’s wheat production.
It is a staple food used to make flour and other food products.
Grand Blanc’s Great Harvest Bread Company co-owner Scott Sassack is watching prices closely and says it’s a balancing act to make a profit.
“It’s going to affect us greatly. And I know that. However, I’m not going to jump on board now and raise prices when I don’t know how much I need to raise that,” he said.
Since the beginning of the year, wheat prices have increased by about 12%.
That includes a sharp drop on Friday, after soaring Thursday when the war started.
Prices had previously jumped more than 25% in 2021.
Rising oil prices are also impacting delivery costs to local retailers, a so-called “double whammy”.
“I’m really loyal to my customers. I want to keep them here. So I want to keep my prices as calm and smooth and equal as possible. And that when we see a spike, it might be out of control for a long period of time. , maybe it’s time to look and see where my percentages need to go,” added Sassack.
Another less common product that could see rapid price increases – sunflower oil.
Ukraine and Russia account for 73% of all exports.