Flour company Odlums has warned consumers that the price of bread is set to rise because of poor wheat harvests and higher energy costs.
Odlums said spiralling energy costs and a poor global wheat harvest have caused world stocks to slump to a 25 year low resulting in hikes of between 15 and 20 per cent in the price of flour.
It said stocks of wheat in Canada and North America are at their lowest levels for almost 25 years and market quotations for quality wheat have risen by 20 - 40 per cent in the past 12 months.
Odlums said the price increase is an essential reaction to overall cost base increases and it is inevitable that they will be passed on to consumers.
From a wheat price point of view they are seeing a picture of significantly higher prices across the board for all wheat types. Increases in distribution and packaging add to the problem.
"As a result, major flour producers are facing total cost increases of 15-20 per cent," it added.