In recent months, the cost of a loaf of bread has been rising faster than the price of a gallon of gas. I turns out not one factor, but a "perfect storm" of several, are to blame.
DiLauro's Bakery's Paul Waverchak says just a few months ago, his $2.25 loaf of bread was $1.75. The reason is, the cost of flour has gone through the roof. A 100 pound bag that was $17 a year ago is now just under $60. So far, most of his commercial and individual customers are taking it in stride, although Waverchak says he did lose a restaurant account over the price hikes just this week.
The biggest reason for the spike in flour is the dash to make ethanol, causing farmers to shun wheat in favor of corn.. Also the weak dollar is making the cost of our wheat attractive to other countries who are buying it up. Add several bad harvests to the list and you've got wheat flour selling at a premium. DiLauro's uses 8,000 pounds of it a week.
"If a bag of flour was 17 dollars last year a this time and now it's 57 dollars right now at this time, there's a $40 per bag increase," Waverchak said. "And if you use 80 bags it's over 32-hundred dollars per week, right off the top," he said.
Customers we spoke to today say they've certainly noticed the increase in price of a loaf of bread, and understand the reasons for it. And so far they have no plans to cut back on their bread purchases.