AUS: Australia next to see bread prices rise
Consumers in Australia look set to be the next to see bread become more expensive rise with bakery giant George Weston Foods (GWF) warning that price rises are "inevitable".
The warning comes just weeks after the UK's leading bakers said bread prices would rise, while French bakers also cautioned that bread in the country would become more expensive.
GWF, an arm of UK-based Associated British Foods, blamed the "worst drought in living memory" in Australia for putting pressure on wheat prices.
Chief executive Geoff Starr said: "Bread manufacturers are not immune from the pricing pressures facing the food industry generally as a result of the ongoing drought.
"Based on the outlook for global grain supply and pricing and the continuing local drought, it is inevitable that there will be a significant flow on effect impacting the price of bread."
Starr said a recent forecast from a leading Australian politician that bread prices could rise by up to A$0.20 (US$0.18) a loaf was "not an unreasonable assumption".
Earlier this month, Associated British Foods warned that prices of its Kingsmill bread would rise in the UK due to the rising cost of wheat.
In August, the French bakery federation highlighted the possibility of consumers paying up to 17-18% more for bread products such as baguettes as a consequence of the wheat hike.
Associated British Foods has forecast "good growth" in half-year profits despite an expected fall in earnings from its sugar business....
Associated British Foods (ABF) has relaunched its Kingsmill Gold range in a bid to "restore some of its market share", after reports last year that the company was reviewing its bread business....
Australian baker KH Foods has agreed to sell its Balfours and Betabake businesses to San Remo for a combined AUS$7.4m (US$6.7m)....
Associated British Foods is to close its Patak's factory in Scotland at the end of March with the loss of 60 jobs....
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