How wheat ends up in a loaf of bread — and why prices have soared this year — is an odyssey involving growers and grain handlers, rail cars and flour mills, and bakeries and supermarkets. saskatchewan wheat
How that wheat ends up in a loaf of bread — and why prices have soared this year — is an odyssey involving growers and grain handlers, rail cars and flour mills, and bakeries and supermarkets.We deliver the local news you need in these turbulent times on weekdays at 3 p.m.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails or any newsletter.
When a new wheat variety is developed, it goes to a crop recommending committee — a group of experts recognized by the federal government. That’s just one of dozens of costs that go into growing wheat and other crops like canola, durum, lentils, peas and flax on his 6,000-hectare farm in Weyburn, Sask.
It’s not all in his control: last year, a severe drought withered his crops. Across Western Canada, production of key field crops including wheat fell by more than 40 per cent compared with the previous year, according to Agriculture and Agri-Food Canada statistics.It’s a big part of why bread prices have climbed to new heights, and stayed high. As of November, prices for items like bread, rolls and buns were up 18.2 per cent year-over-year, according to Statistics Canada.
The rest is stored in bins on farms and sold throughout the fall and the following year at a spot or cash price — a market price for wheat purchased and delivered today.“The market tells farmers what the price is,” said Smyth, the chair of Agri-Food Innovation and Sustainability Enhancement. “A farmer’s costs are independent of the price.”Article contentFarmers like Leguee can try to hedge their bets to get the most for their grain.
But other factors play a role. Geopolitical conflict had a strong influence on wheat prices this year, for example. The price of a bushel of wheat hit $12.94 last March on the Chicago Mercantile Exchange, up from a low of $7.42 in January — a nearly 75 per cent increase. It has since dropped to about $8.60.Article contentOnce a farmer sells wheat to a grain handler, it’s sorted and stored in a grain elevator. Much of it is then shipped on rail cars to Thunder Bay or Vancouver.The mills then sell the flour under their own brand directly to consumers at stores.
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