Friday, December 6, 2002. Posted: 17:39:34 (AEDT)

Bread rises as drought drags on

The drought has started to push bread prices up around the nation.

Flour mills are being forced to bid against feedlots for scarce wheat crops, sending flour prices soaring.

Some bakers have already increased the price of bread by 5 per cent, but a loaf could be 30 cents dearer within months.

Patrick O'Brien from the Baking Industry Association of Queensland says the drought has increased the cost of making flour by 40 per cent and flour mills are now passing that on to bakeries.

"A 40 per cent increase in flour costs basically with the other costs that they are facing with wages and superannuation costs... I'm predicting an increase in bread prices of probably 15 per cent."

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