Increased wheat prices and the cost of bread. (Off the Wire).
Bakeries and retailers have recently announced that increased wheat prices will result in rises in the price of bread and other bakery products. The Agricultural Producers Association of Saskatchewan Saskatchewan, province, Canada
Saskatchewan (səskăch`əwən, –wän', săs'–), province (2001 pop. 978,933), 251,700 sq mi (651,903 sq km), W Canada. (APAS APAS Antiphospholipid Antibody Syndrome
APAS Astrophysical Planetary and Atmospheric Sciences
APAS Androgynous Peripheral Assembly System (NASA)
APAS Androgynous Peripheral Attachment System
APAS Aerodynamic Preliminary Analysis System ) has done an analysis to determine what effect increased wheat prices will have on the price of bread.
The September 26, 2002, Pool Return Outlook (PRO) published by the Canadian Wheat Board The Canadian Wheat Board (known at times as the Canada Wheat Board or by the acronym CWB) was established by the Parliament of Canada in 1935 as a producer marketing system for wheat and barley. It is headquartered in Winnipeg, Manitoba, Canada. provides the price projections for Western Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. milling wheat. For example. The price for No. 2, 13.5 per cent protein is projected to be 29 per cent or $2.34 per bushel bushel: see English units of measurement. higher than last year. This projected increase in wheat prices will result in a three-cent increase in the cost of the wheat in an average one-pound loaf of bread.
Consumers should be prepared to ask millers, bakers, and retailers what other factors resulted in any increase over and above the three cents per loaf.
Terry Hildebrandt, president of APAS, also points out that farmers have been producing milling wheat at a loss for the past several years. "The projected 2002 - 2003 prices will provide a marginal profit, only if normal grades and yields are obtained," says Hildebrandt. "Increased grain prices are bittersweet bittersweet, name for two unrelated plants, belonging to different families, both fall-fruiting woody vines sometimes cultivated for their decorative scarlet berries. to those farmers who lost their crops this year due to drought drought, abnormally long period of insufficient rainfall. Drought cannot be defined in terms of inches of rainfall or number of days without rain, since it is determined by such variable factors as the distribution in time and area of precipitation during and before and frost. In addition," reminds Hildebrandt, "because of the market price option cut to crop insurance in last spring's provincial budget, producers' claims will be paid based on last year's prices."
Comparison of the price of 2CWRS wheat going into a one-pound loaf of bread 2001 2002 Numbers of bushels in a loaf 0.01369863 0.01369863 Price of a bushel of wheat $5.72 $8.06 Cost of wheat in a loaf of bread $0.08 $0.11 Please note: These prices reflect prices at port, which is approximately the price millers pay for Canadian milling wheat.