Poor UK weather and record corn prices resulting from a severe drought in the US has prompted ADM Milling to increase the price of its flour.
In a statement today (2 August), a spokesperson for the UK arm of commodities giant ADM said it has upped the price of its flour by GBP75 (US$116.6m) per tonne.
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A 16kg bag of its flour will now cost bakers GBP1.20 more from 30 July, it said, as “record” rainfall in the UK, and drought in the US has caused world wheat prices to rocket.
Drought conditions have continued to move across around two-thirds of the US where extreme weather conditions have caused corn prices to spike. The US Department of Agriculture has warned the drought will reduce corn yields this year, prompting fears of a spike in prices of the commodity and pressure on feed costs.
The spokesperson for ADM Milling added: “Whilst weather in [the] UK has improved over the past few days, the record rainfall in June/July has delayed the domestic harvest by up to three weeks and has also brought about concerns over quality and yield. This, coupled with a severe drought in the US and the Black Sea region of Europe, has given rise to a significant increase in world wheat prices.
“Consequently, it has become necessary for ADM to increase the price of our flours.”
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By GlobalData
