A 16kg bag of its flour will now cost bakers £1.20 more, with effect from Monday 30 July, as recent wet weather in the UK, and drought in the US has caused world wheat prices to rocket.
Earlier this month British Baker reported that UK wheat prices had risen by circa £30 per tonne, however according to Alex Waugh, director general at the National Association of British and Irish Millers, the situation in the last couple of weeks has got worse, with forward prices having risen up to £80 per tonne - an increase of 30%, over the past month.
Waugh said the United States Department for Agriculture has reported worsening conditions since it announced reduced estimates for corn production in the US - down 45mt (5%) - on 11 July, causing a knock-on effect on wheat prices. “A lot of people are also reducing their expectations of the UK crop,” he added.
Peter Hayes, national sales manager, ADM Milling, told British Baker: “Whilst weather in UK has improved over the past few days, the record rainfall in June/July has delayed the domestic harvest by up to three weeks and has also brought about concerns over quality and yield.
“This, coupled with a severe drought in the USA and the Black Sea region of Europe, has given rise to a significant increase in world wheat prices. Consequently, it has become necessary for ADM to increase the price of our flours by £75.00 per tonne (£1.20 per 16 kg) with effect from Monday 30 July.”