Wheat Prices May Cause 20 Per Cent Increase In Bread Prices

Wheat Prices May Cause 20 Per Cent Increase In Bread Prices

Experts have warned that a nine-year high in wheat prices could cause the price of bread to soar by 20 per cent.

The Mirror reports that rising global demand has sent the price of bread wheat soaring by 26.7 per cent in the past 12 months as other costs also rise, including transport fuel and gas for bakery ovens, and higher wages to tackle the HGV driver recruitment crisis.

While some of this will be absorbed by retailers, experts say that higher prices o supermarket shelves will be unavoidable.

The price of wheat has also impacted pasta, which has also become more expensive in past weeks, with global food prices now at a ten-year high.

Alice Jones, an analyst with agricultural body AHDB, said: “UK prices are following global trends.”

Bread wheat is now trading on commodity markets at £255.40 a tonne, up nearly 27 per cent on a year ago.

Allied Bakeries, which owns best-selling brand Kingsmill, said the industry was ‘exposed to inflationary pressure’ over the cost of flour, gas and delivery fuel’.  

Wheat used for animal feed has also experienced a price increase, albeit not quite as much, with prices now at 16.2 per cent more than a year ago, according to trade magazine The Grocer.

Alice Jones added: “Global wheat prices keep climbing each week on the back of supply concerns.

As long as global prices keep rising there is scope for domestic prices to keep rising.”

While reviewing the global food market, the UN’s Food and Agriculture Organization reported a ‘recent surge in agricultural input prices’, and said that higher prices of these inputs will mean higher production costs, ultimately leading to higher food prices.

 

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By | 2021-12-10T12:28:54+00:00 December 10th, 2021|Blog|Comments Off on Wheat Prices May Cause 20 Per Cent Increase In Bread Prices

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