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Last Updated: Friday, 10 November 2006, 08:39 GMT
Bread to rise on high flour price
Sliced bread
Buying a loaf is going to require more dough at the checkout.
The price of flour and bread in the UK is set to rise because of the soaring cost of wheat, millers have warned.

Experts said an 800 gram loaf could increase by about 3 pence as wheat prices have hit 10-year highs, partly due to a drought in Australia.

Independent miller ADM Milling said it was heading towards higher prices.

ADM Milling's last price rise was in September, and experts say such rapid price increases would be "exceptionally unusual".

More dough

An ADM Milling spokesman said the company was reviewing the situation "on a daily basis in light of continued upward movement in the world wheat market".

Director of the National Association of British and Irish Millers, Alex Waugh, said all millers had been hit by the higher wheat prices.

He said it was likely others besides ADM would raise their flour prices.

The Federation of Bakers, representing large-scale bakers, said its members had already suffered from rising fuel and wheat costs.

"The general principal is that I'm afraid consumers will have to see a price increase because the bakers can no longer absorb these rising costs," said the federation's director Gordon Polson.

Over 5.6 million tonnes of wheat are used by the UK's flour milling industry each year, though only about 4% ends up being sold to customers as flour, rather than in bread and other products.


SEE ALSO
Wheat prices jump to 10-year high
11 Oct 06 |  Business

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