With Wheat Shortage, Pizza Prices Could Triple
POSTED: 1:14 pm EST February 20, 2008
UPDATED: 5:56 pm EST February 20, 2008
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HEMPFIELD TOWNSHIP, Pa. -- Many people enjoy pizza, but would you eat it if a pie was priced at $40?
Mama Mia: Check it Out!Those in the business said the market is headed that way because of a wheat shortage.At Fox's Pizza in Hempfield Township, the price of crust has doubled in the last month. It's expected to double again by next month, which means by summer time, pizza prices could triple.Jim Fox has been making pizzas since 1959 and his 336 stores in 36 states sell about 10 million of them a year."Without flour, that goes from 10 million to zero," said Fox.Wheat prices are the highest they've been in history because worldwide demand is huge, and the supply is at its lowest level in 30 years.Bad weather in places like Australia and Argentina means getting it is tough and if you can, it's really expensive.Fox's Pizza has ordered 20 truckloads of buns and dough balls that they hope to keep inside their freezer at the Murrysville headquarters. Other restaurant chains are doing the same, so the price you pay won't change right way."I'm trying to right now to secure as many frozen dough balls as we can get in here," said Fox.Companies like Kellogg, Kraft and Conagra have long-term grain contracts that will keep their prices the same for months. But when the contracts are up and the stored stuff finally runs out, it's estimated the price of your pizzas, breads, pastas and anything made with wheat, could increase at a rate of 10 percent a month.So, what needs to happen to stop this crazy inflation on pizza? Experts said eventually wheat would get so expensive that foreign demand will drop. Millions more acres of wheat are being seeded this year, too, so there will be a bigger supply.
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Mama Mia: Check it Out!Those in the business said the market is headed that way because of a wheat shortage.At Fox's Pizza in Hempfield Township, the price of crust has doubled in the last month. It's expected to double again by next month, which means by summer time, pizza prices could triple.Jim Fox has been making pizzas since 1959 and his 336 stores in 36 states sell about 10 million of them a year."Without flour, that goes from 10 million to zero," said Fox.Wheat prices are the highest they've been in history because worldwide demand is huge, and the supply is at its lowest level in 30 years.Bad weather in places like Australia and Argentina means getting it is tough and if you can, it's really expensive.Fox's Pizza has ordered 20 truckloads of buns and dough balls that they hope to keep inside their freezer at the Murrysville headquarters. Other restaurant chains are doing the same, so the price you pay won't change right way."I'm trying to right now to secure as many frozen dough balls as we can get in here," said Fox.Companies like Kellogg, Kraft and Conagra have long-term grain contracts that will keep their prices the same for months. But when the contracts are up and the stored stuff finally runs out, it's estimated the price of your pizzas, breads, pastas and anything made with wheat, could increase at a rate of 10 percent a month.So, what needs to happen to stop this crazy inflation on pizza? Experts said eventually wheat would get so expensive that foreign demand will drop. Millions more acres of wheat are being seeded this year, too, so there will be a bigger supply. Related Links:
More County NewsGet RSS | E-Mail Alerts
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