Poor harvests and biofuel demand trigger wheat shortages

Last July Finfacts reported: The combination of heatwaves in Europe and the US, low global grain stocks and an increase in production of biofuels has seen wheat prices rise to 10-year highs and may lead to big increases in the cost of bread and pasta.

Paul Kelly, Director, Food and Drink Industry Ireland, speaking on behalf of the IBBA, now says: “Bread bakers are experiencing increases of up to 25% in the cost of flour, the main ingredient in bread. This is on top of increases of over 30% in the cost of gas, the main energy source in baking bread. Ireland is not unique in this regard, it is a global problem and it shows no immediate signs of improvement, if anything it is worsening.”
FinFacts