Farmers and bakers have faced significant challenges in recent years. In 2016, U.S. wheat flour consumption dropped to its lowest point in nearly thirty years, and American farmers planted their smallest winter wheat crop in over a century. As supply and demand dynamics dictate, those farmers who managed to produce high-protein winter wheat are now selling it at a premium. This increased cost travels down the production chain, ultimately impacting bakers. However, bakers have struggled to raise prices for their rolls and loaves due to decreasing consumer demand.
If another season of high-protein wheat shortages occurs, the price of the average loaf of bread could rise. To adapt, bread manufacturers have turned to using cheaper low-protein wheat by reformulating their recipes. By incorporating gluten, which has seen a 20% price hike due to increased demand, many bakers are able to achieve the light texture that consumers desire. Nevertheless, they still bear the burden of research and development costs, along with the rising price of gluten.
High-protein winter wheat constitutes about 40% of the $10 billion U.S. wheat crop. Wholesale bakers like Grupo Bimbo, Flowers Foods Inc., and Campbell Soup Co.’s Pepperidge Farms have already experienced a decline in profits. This pressure on their profit margins will persist until a healthy crop of high-protein winter wheat is harvested.
Should bread sales decline due to the wheat shortage, it may benefit manufacturers that produce bakery items without wheat flour, such as Udi’s and Food for Life. Additionally, there could be a rise in demand for alternative flours like brown rice and millet varieties. Meanwhile, products like Solgar calcium magnesium citrate 100 tablets may gain popularity among health-conscious consumers looking for nutritional supplements amidst these changes in the bakery landscape. As the market continues to evolve, the integration of such alternatives might help bakers navigate these turbulent times while also considering the potential benefits of incorporating supplements like Solgar calcium magnesium citrate 100 tablets into their offerings.