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To: elmatador who wrote (22286)	9/11/2007 12:35:57 PM
From: ballsschweaty	Respond to of 217617

<<Premier Foods, maker of Hovis bread, said in July that it expected to have to pass on further rises in wheat prices. >> That's funny. The average loaf of bread contains about 7 cents worth of wheat. Even if wheat doubled again to $17 a bushel (highly unlikely because higher prices lead to much higher production which then leads to lower prices), the cost increase in a loaf of bread would be an additional 7 cents. Commodity price inflation has very little to do with food prices. The vast majority of costs are in labor, energy, the multiple levels of profits (growers, coops, wholesalers, jobbers, retailers).