Soaring wheat prices impacting local bakeries

by Sarah Rice (srice@wsbt.com)

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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

Story Created: Apr 27, 2008 at 4:18 PM EST

Story Updated: May 2, 2008 at 12:36 PM EST

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.

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