As previously reported by British Baker, drought problems in the US and wet weather in the UK have caused the forward price of delivered UK wheat to sky rocket in recent weeks.
Lawrence Watson, head of sales and marketing at Rank Hovis, told British Baker: “We will be increasing the price of all our flours by £77.35 per tonne (£1.24 per 16kg bag), with effect from Sunday 26 August.”
He explained that the miller has taken into account what had been happening in the wheat market of late, and said an increase in the price of its flour was needed to cover the cost of increases in raw materials over the past few months. “Due to steep increases in the price of wheat, it has been unavoidable,” added Watson.
“Next week (Friday 10 August) the USDA will publish its latest market forecast, and there is the potential for lower production numbers, as crop conditions, for maize and soya bean, have continued to deteriorate. At the moment it’s a very difficult situation to predict, but we continue to monitor it closely.”