Wheat and Flour Prices in Nassau County
Nassau News Staff Writer
When people think about something that is going up in price, they automatically think gasoline.
However, with recent climate changes, they should think about another basic commodity that is rising higher in cost, and that is wheat and its byproduct, flour.
This grain is an integral part of the United States’ economy. It is used to feed livestock that provide meat, as well as being a main ingredient in some of our favorite foods like pasta, bread, bagels, and, of course, pizza.
But with the rapidly rising cost of flour, store owners must combat the preparation costs somehow and have begun to raise their prices to match that of the ingredient.
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A bagel or a slice -- long frugal New Yorkers' choices for on-the-run breakfasts and lunch -- now are taking a bigger bite out of Nassau County consumers pockets as bakers and pizza makers face higher prices for wheat flour, the basic ingredients for their products.
Barry Levy, assistant store manager for Bagel Town in West Hempstead said “three months ago I was paying $10 a bag for flour … now I am paying $35 and am told it is going to increase again very soon.”
To try and balance the cost of flour and limit the amount he must increase his menu, he has begun to dig into his own pockets in an effort to ease the cost. “I started pulling $1,900 from our profits and putting it back into the flour to keep my bagel prices down,” he told Nassau News. At Bagel Town a plain bagel with butter will cost you 89 cents but less than a mile away it costs $1.25.
On the website for the U.S. Commodity Futures Trading Commission, a press release, posted Feb. 8, commented on the approval of several amendments to increase the daily price limit on wheat contracts to 60 cents per bushel, up from 30 cents per bushel -- with a further hike to 90 cents per bushel approved, if necessary.
Businesses affected by the price of flour are scrambling to stay afloat in this sea of uncertainty. Mama C’s pizzeria of Hempstead has to purchase 400 bags of flour every two weeks, and each time she places an order the price has changed. “Two weeks ago I paid $32.00 per bag, and when I put in the order this week, it was up to $34.00," the manager told Nassau News in a telephone interview.
Regardless of the reasons behind the skyrocketing prices in wheat and flour business is apparently still good, managers say. Customers have commented on the prices and have taken a deep concern, but only few have curbed their appetite for flour based products.
A series of wheat crop failures abroad, combined with the U.S. dollar being at historic lows against the euro and other currencies, has forced Bohbot and other bakers to compete with the rest of the globe for grain -- even what's grown in the United States.
World demand for the staple has sent the price of the 50-pound bags of flour stores use for baguettes and marzipan cakes soaring to $27, up from $12 a year ago. To cover the increase, a local bread store has doubled the price of their loss-leading baguettes to $1.98 and pushed the cost of their breads up a buck to $5.50.
View my project memo on the project blog for Wheat and Flour Increases.
Check out a slide show of wheat and flour information
