3/10/2008

Wheat Flour's Price Increase


The change of dietary habit and the substitute energy is affecting the increasing price of wheat and wheat flower. The Japanese bakeries are now facing big challenge. I spoke to one of the local bakeries this morning and he says he needs to see how the market goes and other shops will react. He cannot just raise the price.

Japanese government buys wheat by SBS ( Simultaneous Buy & Sell ) system. The imported wheat is handed to manufacturers by government. The price increase from next month is 30% and durum wheat ( mainly used for pasta ) price will be increased 71% ! Crude oil price, bio-ethanol, dietary habit's change, Australia's catastrophic draught .... all these phenomenon is related....mmm. The imported pasta will also be more expensive in the near future. ( In Japan, approximately 90% of wheat is imported and within that 20% is imported from Australia. ) I went to the local food shop and bought several packages of pasta as shown in the photo .

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