Bread prices skyrocket

BREAD prices have gone up by 39 per cent since January and are still rising – a situation that makes life more difficult for already burdened consumers.

Surging international wheat prices have driven bread prices across the world and this scenario is seen to continue until the global wheat crop production improves. A standard loaf of white bread cost around N$4,30 in January.Now, some 10 months down the line, the same loaf goes for N$5,99.A standard loaf of brown bread currently costs N$5,60, up from N$5,35 in September.International wheat prices have been skyrocketing because of global weather conditions, including droughts in Australia, as well as rising demand in China, the US and elsewhere.The use of wheat and maize as an extract for bio-fuels has also impacted prices.Wheat prices were last week at nearly N$3 000 per tonne – a 25 per cent increase compared to last month.The situation is predicted to normalise in June next year, when a larger world wheat crop is expected.Namib Mills Managing Director Johan von Wielligh said in an interview with The Namibian that global stock levels of wheat were at their lowest in 20 years.Namib Mills is the country’s largest grain-processing company and produces bread flour, cake flour and ready-mixed dough for bakeries, among other things.Namibia’s total annual wheat consumption is 53 000 tonnes, of which 70 per cent is imported from the US and Germany, while 30 per cent is produced locally.Prices of the agricultural commodity are the same globally.Von Wielligh said the soaring prices would continue and the situation had negative effects for producers and consumers alike.”We (producers) are trying to be as responsible as we can for the benefit of the end user, but unfortunately we can’t absorb all costs, so we have manage this situation well and it puts us under a lot of pressure.It would be good for all of us if the situation normalised,” said Von Wielligh.The rising costs of bread and food in general are being felt across the world and according to recent press reports, consumers in neighbouring countries are also feeling the bite.A standard loaf of white bread cost around N$4,30 in January.Now, some 10 months down the line, the same loaf goes for N$5,99.A standard loaf of brown bread currently costs N$5,60, up from N$5,35 in September.International wheat prices have been skyrocketing because of global weather conditions, including droughts in Australia, as well as rising demand in China, the US and elsewhere. The use of wheat and maize as an extract for bio-fuels has also impacted prices.Wheat prices were last week at nearly N$3 000 per tonne – a 25 per cent increase compared to last month.The situation is predicted to normalise in June next year, when a larger world wheat crop is expected.Namib Mills Managing Director Johan von Wielligh said in an interview with The Namibian that global stock levels of wheat were at their lowest in 20 years.Namib Mills is the country’s largest grain-processing company and produces bread flour, cake flour and ready-mixed dough for bakeries, among other things.Namibia’s total annual wheat consumption is 53 000 tonnes, of which 70 per cent is imported from the US and Germany, while 30 per cent is produced locally.Prices of the agricultural commodity are the same globally.Von Wielligh said the soaring prices would continue and the situation had negative effects for producers and consumers alike.”We (producers) are trying to be as responsible as we can for the benefit of the end user, but unfortunately we can’t absorb all costs, so we have manage this situation well and it puts us under a lot of pressure.It would be good for all of us if the situation normalised,” said Von Wielligh.The rising costs of bread and food in general are being felt across the world and according to recent press reports, consumers in neighbouring countries are also feeling the bite.