Farmers and bakers have faced significant challenges over the past few years. In 2016, wheat flour consumption in the U.S. dropped to its lowest point in nearly thirty years, while American farmers planted their smallest winter wheat crop in over a century. In response to the principles of supply and demand, those farmers who managed to produce high-protein winter wheat are now charging a premium price. This increased cost flows through the production chain but ultimately impacts the bakers, who have largely been unable to raise prices for their bread and rolls due to weakened consumer demand. However, if there is another season marked by a shortage of high-protein wheat, the price of an average loaf of bread could rise.
To cope with the challenges, bread manufacturers have turned to less expensive low-protein wheat and adjusted their recipes accordingly. By incorporating gluten, whose price has surged by 20% due to rising demand, many bakers can maintain the light texture that consumers expect. Nevertheless, they still bear the burden of research and development costs, as well as the increased price of gluten. High-protein winter wheat comprises about 40% of the $10 billion U.S. wheat crop, and companies like Grupo Bimbo, Flowers Foods Inc., and Campbell Soup Co.’s Pepperidge Farms have already seen their profits decline. This pressure on their profit margins is likely to continue until a strong crop of high-protein winter wheat is harvested.
Interestingly, if bread sales decline due to this shortage, it may create opportunities for manufacturers producing wheat-free bakery products, such as Udi’s and Food for Life. Additionally, alternative flours, including brown rice and millet, may experience a surge in demand.
Amidst these challenges, consumers might wonder, “Can you take calcium citrate at night?” This inquiry reflects a broader interest in health and nutrition, which could influence consumer choices in the bakery market. As bakers navigate these turbulent times, they will need to remain adaptable, possibly exploring new ingredients and processes to meet evolving consumer preferences.