Rocketing wheat prices have started to filter down the supply chain with the UK’s largest miller Rank Hovis this week raising flour prices by £35 a tonne - or 15-17%.
This could translate into a 4-6p rise on the retail price of a loaf if manufacturers are to recover costs, claimed analysts. However, shelf price is not expected to change until autumn.
Rank Hovis sales and marketing director John Haworth said the increase, which takes effect from September 1, was the “unavoidable consequence” of a 25% hike in grain prices.
UK wheat prices have risen steadily through the weakening of sterling against the euro, the increased pace of UK exports, a smaller UK crop and the end of EU imports from eastern Europe.
This could translate into a 4-6p rise on the retail price of a loaf if manufacturers are to recover costs, claimed analysts. However, shelf price is not expected to change until autumn.
Rank Hovis sales and marketing director John Haworth said the increase, which takes effect from September 1, was the “unavoidable consequence” of a 25% hike in grain prices.
UK wheat prices have risen steadily through the weakening of sterling against the euro, the increased pace of UK exports, a smaller UK crop and the end of EU imports from eastern Europe.
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