Last week, Russia banned exports of wheat due to the drought conditions that have been ravaging the country. Many people have expressed concern about how an export ban from such a large player in the wheat market would affect the price of food.
Wheat prices are up 50% since June, and now we are seeing fear mongering about how the price of bread will go up 30¢ or more.
Nothing could be further from the truth.
The fact is there is about 7¢ of wheat in a loaf of bread. If prices were to hold, this would only increase the price of bread by about 5¢ per loaf, while providing a decent return to the farmers who grew the wheat.
If your bread price increases by more than nickel we would encourage you to ask the bakery and the grocery store some hard questions.
Richard Phillips
Grain Growers of Canada
Ottawa, Ontario
Aug. 11, 2010
