Earlier this year we had a 42.8% increase in the cost of flour, from $16 per 25kg bag to $22.10.
Last week my supplier told me that the cost will be going up on the 1st November by about 20 - 25%. He hasn’t got the new cost from the manufacturer yet but this is the ball park figure they told him.
Today in the paper there was a report that the price of all wheat based products will be having a servere price increase over the coming weeks due to the strong world wheat prices and our reduced output due to ongoing crippling drought across Australia.
I guess we can expect another increase on top of the one coming in November.
I don’t know if it is the same in the US / Canada but here we pay the world market price, despite the Australian market only using 10% of what is produced. The rest is sold on the international market.
The flow on effect from price increases will affect meat and poultry producers which in turn will cause more price increases.
And I have only just put my new menu to print with our new prices
May have to have a secondary price increase in the new year to offset all these increases.