Soaring wheat prices impacting local bakeries

by Sarah Rice (srice@wsbt.com)

Tools

Dough being rolled out at the Country Bake Shop (WSBT Photo)

Dough being rolled out at the Country Bake Shop (WSBT Photo)

By WSBT News1

ST. JOSEPH COUNTY — They opened their doors more than 30 years ago.

And since then, the Country Bake Shop has been rolling out the dough, making some of the tastiest treats in town.

But owner Craig Rumpf says raking in the dough has been a little more difficult these days, thanks to surging wheat prices.

"Flour went way up to $52 for 100 pounds, where three years ago you could buy it for less than $20," Rumpf said.

Economists say there are two main reasons for the increase. The first is the growing demand in Southeast Asia.

"Those economies are growing at such fast rates people are just demanding more food. And that's driving up prices up and production hasn't kept pace," explained economics professor Thomas Gresik.

Experts also point to the booming business of bio-fuels.

"Initially the whole idea was to use bio-fuel wastes for fuel purposes. But when bio-fuels become economically more attractive, farmers start growing crops for fuel purposes and not feed purposes," said Gresik.

Factors that aren't just cutting into profits, predictability is also becoming an issue for bakeries.

"I never know from week to week what my salesman is going to charge me for something," said Rumpf.

Forcing Rumpf to make small price increases and scale back on labor. He says when times get tough you can always count on family.

"You can always lean on family a little more than lean on your employees. You might hear about it more, but that's just the way it is," said Rumpf.

Monday, Apr 28 at 2:16 PM Linda wrote ...

Why on earth are we worrying about other countries? How about our own? Many starving people here in the usa and we are worried about Asia? Which government officials are being financially compensated?

Monday, Apr 28 at 12:01 PM agree with Sporty wrote ...

Demand may have gone up but it's probably gone up all over. Again profit is the issue - not making enough profit find an excuse and the public will allow it. Basic essentials for living should be affordable for all - eggs, milk, bread, son on - not just for the above middle income. Wait no more middle income - either poor or rich.

Monday, Apr 28 at 9:26 AM Sporty wrote ...

Ok,did everyone suddenly realize that there are a billion and a half chinese over there? I'm tired of this using Asia excuse to increase prices here!! Yes they may be using more gas,but they didn't just multiply ten times over and all of a sudden need more food,people! That's just a excuse to raise prices. It's like oil,whatever puny excuse can be extracted from the air,they'll use. "A mouse ate some,hurry raise prices!!". Asia has no farm fields to raise their own food? C'mon now!!

Add a comment

Name:

Comment: 500 Characters Left

Comments are moderated and will not appear on this story until after they have been reviewed and deemed appropriate for posting.

WSBT and its affiliated companies are not responsible for the content of comments posted or for anything arising out of use of the above comments or other interaction among the users. We reserve the right to screen, refuse to post, remove or edit user-generated content at any time and for any or no reason in our absolute and sole discretion without prior notice, although we have no duty to do so or to monitor any Public Forum.

WSBT Weather

icon
Current Temp 59
°
More Weather
More On Demand

Stock Quotes

This content requires the latest Adobe Flash Player and a browser with JavaScript enabled. Click here for a free download of the latest Adobe Flash Player.

Tonight On WSBTFull Schedule

7.00
Wheel of Fortune
7.30
Jeopardy!
8.00
Big Bang Theory
8.30
How I Met Your Mother
9.00
Two and a Half Men
9.30
Worst Week
10.00
CSI: Miami
11.00
WSBT News
11.35
Late Show with David Letterman

Question of The Day

What is your reaction to O.J. Simpson's conviction?

E-mail your comments to us. We'll pick some to read during WSBT News at 5:30.