Monday, February 18, 2008

Pasta Shortage

A report from the trade magazine The Grocer says the looming pasta crisis is the result of Italian farmers increasingly growing durum wheat for biofuel production rather than food.

The report says the price of durum wheat is two-and-a-half-times higher than June last year as supplies have tightened, forcing some suppliers to cease pasta production because they are unable to pass on the soaring cost of raw materials to customers and stay viable.

Last week, chilled-foods manufacturer Bakkavör announced it was closing its pasta plant in Scunthorpe, with the loss of more than 100 jobs, because of rises in the cost of raw materials.

Nigel Singh, UK representative for pasta giant Pasta Lensi, told The Grocer that cost pressures were forcing manufacturers in Italy and the UK to cease production.

He said: "The price of durum wheat has leapt 250 per cent since June last year, but a 500g pack of pasta has only increased by 31p to 61p. That's 100 per cent. For farmers, manufacturers and retailers to make a fair income, a 500g pack should sell for 90p."

...A report from the trade magazine The Grocer says the looming pasta crisis is the result of Italian farmers increasingly growing durum wheat for biofuel production rather than food.

The report says the price of durum wheat is two-and-a-half-times higher than June last year as supplies have tightened, forcing some suppliers to cease pasta production because they are unable to pass on the soaring cost of raw materials to customers and stay viable.

Last week, chilled-foods manufacturer Bakkavör announced it was closing its pasta plant in Scunthorpe, with the loss of more than 100 jobs, because of rises in the cost of raw materials.

Nigel Singh, UK representative for pasta giant Pasta Lensi, told The Grocer that cost pressures were forcing manufacturers in Italy and the UK to cease production.

He said: "The price of durum wheat has leapt 250 per cent since June last year, but a 500g pack of pasta has only increased by 31p to 61p. That's 100 per cent. For farmers, manufacturers and retailers to make a fair income, a 500g pack should sell for 90p."

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