Strain on the grain supply chain

“We have not seen this level of wheat cost for the last 13 to 14 years. And wheat prices will continue to go up and that is going to affect our margin. And the fact that we can’t pass on all the cost to consumers is going to be challenging for our agri business,” managing director Lim Soon Huat (file pic) said at a media and analyst briefing yesterday.

PETALING JAYA: The rising cost of raw materials, particularly with the added stress of the Russia-Ukraine conflict on commodity prices, will weigh on PPB Group Bhd’s margins this year even as it continues to struggle with supply chain disruptions and labour shortages.

The group’s grains and agribusiness segment – its largest revenue contributor – may continue to take a hit as the raw material costs of flour, feed and maize products soar with limited options for the group to mitigate the rise.