Rising Wheat Cost Means Rising Food Prices

By Gabe Osterhout

July 22, 2010 Updated Mar 27, 2008 at 6:10 PM EDT

The cost of wheat is rising, pushing up the price of some of your favorite foods.

Businesses who bake says its burning up profits.

Di Rienzo's bakery in Binghamton makes fresh bread every morning.

But as the price of flour rises, the cost of making that bread has increased nearly 300 percent.

Adding 30 cents to the price of a loaf.

"I raised my bread last November. I've got to raise it again in April, and I've gotta tell you honestly, for me and I'm sure for other businesses, the more people are paying for the products, the money didn't go into our pockets," says Anthony Di Rienzo of Di Rienzo's Bakery.

Di Rienzo's isn't alone.

Owners of Rossi's Pizza in Johnson City have raised pizza prices by 50 cents.

"My price of flour has tripled in the last month which basically affects every aspect of the business from pizzas, calzones, strombolies and even our chicken wing sauce has flour in it," says Rich Juodaitis of Rossi's Pizza.

Bakeries such as Purple Awning Pastries in the Town of Union have also felt the flour pinch.

As prices increase, its noticed some customers are buying fewer baked goods.

"Maybe I'm not going to buy a whole cake, maybe I'll just buy a few slices. Maybe I'll buy cookies and brownies and canolies instead of a whole cake, something where it'll cost them a bit less," says Judy Ghosin of Purple Awning Pastries.

It's not just flour that's rising.

The businesses says the price of everything from eggs and cream to cooking oil and deliveries are cutting into their dough.

Fueling the price increase is a world wide shortage of wheat crops, along with a higher demand for wheat in developing countries.

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