Bread prices expected to rise in New Zealand

Bread prices are expected to rise in New Zealand after Cyclone Yasi dealt another blow to Queensland’s wheat, sugar and banana crops, reported nzherald.co.nz.

While it was too early to predict what other products would have their price affected by the storm, general manager of retail for supermarket operator Foodstuffs (Auckland) Rob Chemaly said bread prices would rise.

“We know that the Australian wheat crop has really been hit for a second time. Some of that is due to Yasi, and some of that is due to the previous flood, ” he said.

“That will mean that a lot of that wheat crop will be sold off as stock feed. What that means is that it’s not available for milling for flour and then conversion to bread.”

He added, “There may well be a second round of increases as a result of the loss of the balance of the crop.”