Last Friday we walked into our favorite bakery to pick up the usual order of two challah breads for the traditional Shabbat dinner. A new message was scotch-taped on the front of the display counter advising us, in large Times New Roman font, that henceforth buying baked goods will require the skills, nerves and risk taking of a commodities trader.
To Our Valued Customers
Delicious Bakery will raise prices effective March 28, 2008. Our new prices reflect unprecedented and staggering increases in the cost of flour and other commodities. One of our suppliers writes, “World wheat prices are at record highs and show no sign of letting up. The world wheat market is facing a perfect storm of factors that are relentless in their ability to force wheat prices to never before seen levels. Since December 2007 wheat has risen by 66% on top of the 83% increase in 2007.”
Delicious Bakery is appreciative of your continued support of our bakery products. Our management and staff work diligently to provide all of our customers with the best quality baked goods at the best prices possible. We are doing our best to control cost. However, due to the increasing volatility in the wheat and food commodity markets, we cannot predict future price changes.
Surprisingly, commodity prices began sky rocketing just when political, media and academic elites successfully coerced automakers to use ethanol as gasoline substitute. Does the use of food as fuel cause commodity prices to rise? Doh!
