High sugar prices will soon hit bakeries
Last Updated: Wednesday, January 27, 2010 | 8:49 AM ET
CBC News
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World sugar prices have been on the rise for nine months and now are more than double what they were last April.
'It could be going up as early as this week.' —Rita Lund, Nick's Bakery
Poor growing conditions in Brazil and India, two of the world's largest producers of sugar cane, have led to a worldwide shortage.
The world market price of sugar was 12 cents a pound in April but now is 28 cents a pound.
The higher price hasn't made its way to consumers yet, but bakeries expect it will very soon. The price hike will be dramatic, they are being told.
"I heard through my wholesaler a few weeks ago that the price is going to go up and it could triple," said Rita Lund, who runs Nick's Bakery in Charlottetown. "He thinks it could be going up as early as this week."
Rolly's Wholesaler of Moncton, N.B., which supplies bakeries and restaurants across the Maritimes, is trying to keep its customers informed about the price trend.
"I have a lot of customers that rely on me to tell them what's going to happen," said food service manager Kim Drisdelle. "I don't control this at all. So I'm scared. I'm scared it's going to go higher."
Lund said if the wholesale price does triple, the price of baked goods will have to go up. "Sugar is used in everything we make," she said.
Lund said the price hike will likely be no more than 10 or 15 cents per item, but it is an adjustment she would rather not make.
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