A detailed look at grocery prices
We can expect the price of bread to increase by a further 10 percent soon.
So says Dánjal Jespersen, of the SMS consortium, which owns Tórshavn’s Miklagarður supermarket, the Bónus grocery chain along with bakery chain Mylnan.
He took us on a trip through the aisles of Miklagarður to show how grocery prices have increased over the past few weeks.
The tour started in the butter section. A pack of Kærgården was DKK 16.95 a few weeks ago. Today’s price is DKK 20.95.
“In Denmark, this product is DKK 23.95, so we are a little bit behind in terms of increasing our prices,” he said.
“I’ve just heard that this product will go up to DKK 26.95 in Denmark over the coming days.”
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Meat prices have also gone up significantly this year.
“Six weeks ago, we charged DKK 85 for one kilogram of minced beef. We now charge DKK 104.”
There is a significant supply shortage of certain grocery products, Jespersen explained as he took us to an empty shelf in the cooking oil section.
“A few weeks ago, one litre of rapeseed oil was DKK 14.75. Today’s price is DKK 23.75.”
As we all know by now, the price hikes are to a large extent due to the war in Ukraine. With Russia and Ukraine being among the world’s largest wheat exporters, the war has had an inevitable effect on flour prices.
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The price of flour went up 30 percent at the start of this year. In mid-March, the price increased by a further 15 percent. And the price continues to grow:
“A few days ago, two kilos of First Price wheat flour cost DKK 13.75. It has now gone up by DKK 1, and we expect the price to rise even higher soon,” he said.
“This brings us to the price of bread. Rising wheat prices, rising oil prices and the significant supply chain disruptions we’re seeing could easily result in a further 10-percent increase in bread prices soon.”
A packet of Karat coffee is DKK 39.90 in Denmark. The price in Miklagarður is DKK 29.95.
“We haven’t increased the price of this product yet, but soon we will probably have to.”
Looking into a basket of four common grocery products, we see some that have increased in price and others that have not.
Our reporter asked if Faroese retailers are perhaps being a bit premature in passing the rising costs onto the customer.
“I don’t believe we are,” said Jespersen. “We obviously cannot sell our products at a loss. Two of these four products are cheaper here than in Denmark, so I believe we are responding to the current situation in a realistic and responsible manner.”
Read the Faroese version of this article here.
Translated by prosa.fo.
More Faroese News in English.