Tuesday, 3 August 2010

Britons to pay more for a loaf of bread as wheat prices jump


Image via Wikipedia
As the title says, from the BBC News website - 'Britons to pay more for a loaf of bread as wheat prices jump'

So it seems that lucky old us will be paying more for our wheat, and hence our bread sometime soon. It's all because of wildfires in Russia and flooding in Pakistan. In Russia a drought coupled with wildfires has destroyed 20% of the wheat harvest. In Pakistan heavy rains and flooding have destroyed 15% of the crop.

So because here in the UK we import all our wheat from Russia and Pakistan it's going to be scarce. Actually that's a lie. We don't import any wheat from Russia or Pakistan. As part of the European Economic Community, we as the EU are competitors with Russia with regards to wheat production.

So there's no shortage of wheat and I'm sure that the rest of the world could easily accommodate this shortfall from 2 countries. That means prices shouldn't rise and this fluid 'value' of wheat should stay constant. After all, stability is something that should be sought after. But of course stability doesn't create the opportunity to generate huge amounts of money from doing very little. Because if the price of wheat goes up then those who store and control the wheat, and to some extent those who produce will make a lot of money for very little work.

So remember that when you go to buy your next loaf and find that the price has gone up from the already high £1.35. Every penny counts, especially for those trousering a grand profit from doing very little. As my mum would have said, "Money comes to money."

Britons to pay more for a loaf of bread as wheat prices jump - Telegraph