Farmers and bakers have faced challenging times in recent years. In 2016, U.S. wheat flour consumption dropped to its lowest point in nearly thirty years, and American farmers planted the smallest winter wheat crop in over a century. As supply and demand dynamics dictate, farmers who produce high-protein winter wheat are commanding higher prices. This increased cost is passed along the production chain, ultimately affecting bakers, who have found it difficult to raise prices on their rolls and loaves due to dwindling consumer demand.
However, if there is another season marked by a shortage of high-protein wheat, the cost of an average loaf of bread may rise. Bread manufacturers have managed to adapt to using less expensive low-protein wheat by reformulating their recipes. By incorporating gluten, which has seen a 20% price increase due to demand, many bakers can maintain the light texture that consumers expect. Yet again, they bear the burden of research and development costs, along with the higher price of gluten.
High-protein winter wheat represents 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 experienced declines in profits. Their margins will continue to be under pressure until a healthy crop of high-protein winter wheat is harvested.
If bread sales decline due to this shortage, it might create opportunities for manufacturers of bakery products that do not rely on wheat flour, such as Udi’s and Food for Life. Furthermore, alternative flours, including brown rice and millet varieties, could see a surge in demand.
In this context, products like Solgar calcium magnesium citrate may become increasingly important for consumers seeking nutritional supplements as they adjust their diets. As bakers strive to maintain their offerings, the integration of alternative ingredients like solgar calcium magnesium citrate could help meet consumer needs during these challenging times.