Australian foods giant Goodman Fielder has warned that it may be forced into a further hike of its packaged bread prices if the rise in wheat prices continues.

Goodman, Australia’s largest packaged bread manufacturer, increased wholesale bread prices by 5% last month, after drought and high international prices resulted in a 13.5% rise in the price of wheat during the last financial year.

George Weston Foods, Goodman’s main competition in the Australian packaged bread market, has so far left its bread prices as they are. If George Weston continues to hold prices steady, it may begin to encroach on Goodman’s market share.