Parched Kansas Wheat Boosting Prices for Panera Bread, Wheaties

Agricultural , Commodities , Food May 02, 2011 No Comments

WheatWheat production in Kansas, the second-largest U.S. grower, probably will drop as dry weather persists, threatening to increase costs for bread makers and restaurants that are already boosting prices.

The state’s winter-wheat crop was in the worst shape in 15 years as of last week, after drought across the Great Plains dimmed prospects for the harvest that starts in June, government data show. Less output would erode inventories already expected to drop 14 percent in the U.S., the world’s biggest exporter.

Wheat futures have surged 62 percent in the past year after adverse weather cut output from Russia to Canada in 2010, spurring companies including Grupo Bimbo SAB, the world’s largest bread maker, to pass on higher costs to consumers.

Panera Bread Co., a St. Louis-based restaurant chain, and General Mills Inc., the maker of Wheaties, plan to raise prices.

via Parched Kansas Wheat Boosting Prices for Panera Bread, Wheaties – Bloomberg.com.

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Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website Propurchaser.com.

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