According to industry leaders, the bread price could increase by 20 percent in coming weeks due to wheat prices hitting a high of nine years.
As other costs increase, such as transport fuel for ovens and gasoline for baking stoves, the rising global demand has caused the bread wheat price to rise by 26.7% in the last year.
Retailers will absorb some of it, but the higher prices on supermarket shelves is unavoidable. Experts agree.
In the next few weeks, rising wheat prices and soaring fuel prices will cause the prices for basic food items to increase.
The record-breaking petrol prices mean that breadmakers’ production costs are on the rise.
In recent weeks, pasta has become increasingly expensive as global food prices have risen to a 10-year high.
In addition to the rising prices, higher wages are being paid to address the crisis in lorry driver employment.
Alice Jones, an analyst at AHDB said that UK prices follow 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 (owners of Kingsmill), stated that their industry was ‘exposed’ to inflationary pressure over rising prices for flour, fuel and other delivery fuel.
The global increase in demand for wheat is now affecting the type of wheat used as a feed for animals.
The Wheat used in animal feed has seen a rise, although not nearly as fast, at about 16.2 Percent, according to The Grocer trade journal.
Miss Jones stated that global wheat prices are rising each week because of shortage concerns.
“As long global prices continue to rise, there will be room for domestic prices not to fall.”
The UN’s Food and Agriculture Organization recently reviewed the global food market and reported that there was a “recent rise in prices for agricultural inputs”. They also stated: “Higher input costs will undoubtedly translate into higher production costs and ultimately, higher food prices.”
Gordon Polson (CEO of Britain’s Federation of Bakers) told The Grocer, “Energy prices are also on the rise while HGV drivers shortages and employment are resulting in higher wage rates.”