Rocketing wheat prices could translate into a 4 to 6p rise in the price of a loaf if manufacturers are to recover costs, analysts have warned.
Forward bread wheat prices for November 2003 are up £15-£20 per tonne on last year, which could translate to a £20-£30 a tonne rise on flour, said one analyst: "Typically, £10 a tonne on flour equates to about 1.5p to 2p on the loaf. This is very bad news for own label manufacturers. Allied Bakeries and Rank Hovis may be able to push through increases on Kingsmill and Hovis, but it's a different story if you're not producing the big brands."

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