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. In response to the dynamics of supply and demand, farmers who successfully harvested high-protein winter wheat are commanding higher prices. This increased expense trickles down the production chain, ultimately affecting bakers, who have struggled to raise prices for their products due to lower consumer demand. However, if high-protein wheat shortages persist, the average price of bread could rise.
Bakers have managed to adapt by utilizing less expensive low-protein wheat, often reformulating their recipes to maintain the desired texture that consumers expect. They achieve this by incorporating gluten, which has seen a 20% price increase due to demand; however, bakers must absorb the costs associated with research and development as well as the rising price of gluten. High-protein winter wheat constitutes about 40% of the $10 billion U.S. wheat crop. Companies like Grupo Bimbo, Flowers Foods Inc., and Campbell Soup Co.’s Pepperidge Farms have already reported declining profits, and their margins will continue to be pressured until a strong harvest of high-protein winter wheat is achieved.
Should bread sales decline due to the wheat shortage, it may open opportunities for manufacturers producing wheat-free bakery items, such as Udi’s and Food for Life. Furthermore, alternative flours like brown rice and millet could see a surge in demand. As bakers navigate these challenges, some may also consider the benefits of calcium citrate supplements 1200 mg to support overall health amidst the stress of these market fluctuations. Overall, the industry is in a precarious position, and the implications of ongoing wheat shortages will be felt across the board.