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Part I: Ingredient prices challenge profitability

Published Wednesday, July 23, 2008

The meteoric rise in ingredients prices to record levels appears to have peaked. Bakery operators and their bakery supply distributors, still reeling from financial hits of $30-per-hundredweight flour and near-60-cents-a-pound soybean oil, are trying to recover their footing. Doing so has not been easy. Worldwide Factors Cited for Volatile Commodities Prices A shortfall in 2007/08 U.S. wheat production and a weaker U.S. dollar, which encourages agricultural exports, have contributed to a 60-year low in U.S. carryover stocks. Reduced production among major grain exporting nations ...

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