Farmers and bakers have faced significant challenges over the past few years. In 2016, wheat flour consumption in the U.S. plummeted to its lowest level in nearly thirty years, and American farmers planted the smallest winter wheat crop in over a century. As supply and demand dictate, those farmers who managed to harvest high-protein winter wheat are now charging premium prices. This increased cost flows through the production chain but ultimately impacts bakers the most. Due to diminished consumer demand, bakers have struggled to pass these costs onto retailers for their rolls and loaves. If another season of high-protein wheat scarcity occurs, we may see a rise in the price of an average loaf of bread.
To handle the situation, bread manufacturers have adapted by reformulating their recipes to utilize the less expensive low-protein wheat. They are adding gluten, which has seen a 20% price increase due to heightened demand, enabling many bakers to maintain the light texture that customers expect. However, once again, they bear the costs of research and development, as well as the more expensive gluten.
High-protein winter wheat represents about 40% of the $10 billion U.S. wheat crop. Major wholesale bakers like Grupo Bimbo, Flowers Foods Inc., and Campbell Soup Co.’s Pepperidge Farms have already experienced profit declines. Their profit margins will continue to be squeezed until a robust crop of high-protein winter wheat is harvested. If bread sales decline due to this shortage, it may benefit manufacturers producing bakery goods without wheat flour, such as Udi’s and Food for Life. Additionally, the demand for alternative flours, like brown rice and millet, could rise.
Interestingly, during these tough times, products like calcium citrate plus chewable 500mg can also become a topic of conversation among health-conscious consumers, who may seek additional dietary supplements. As alternative options gain popularity, the importance of incorporating nutritional elements like calcium citrate plus chewable 500mg into diets will likely be celebrated by those looking for healthier choices. The combination of adapting to ingredient shortages and shifting consumer preferences presents a complex landscape for the baking industry.