Rising costs mean higher food prices

High wheat prices are leading to higher prices for baked goods, says a local baker.

Colleen Flett, a vendor at the Newcastle Farmers Market, has sold bread, cookies and other baked goods at the market for over 10 years.

Flett said she has had to raise her prices, but is still trying to keep them affordable, even though the price of flour has doubled over the last year.

"It affects everything."

The increased cost has to be passed on to customers, she said, but once she explains why prices are up they understand.

"They're accepting it."

Other ingredients, like marshmallows and brown sugar have also gone up in price, she said.

"What do we do?"

Flett said she has raised the price of almost all her product by 25 cents.

Over the years, she has built up a clientele of regular customers who have accepted that prices had to go up, she said.

"They just keep coming back."

Lorna Urquhart, owner of the Country Charm Bakery in Miramichi, said she has been in business for 11 years and has never before seen such a big increase in the price of flour.

"We didn't have any warning whatsoever."

The increase is making it hard for small business owners to stay in business, she said.

"It's really difficult."

Urquhart said the price per 20 kilogram bag has doubled to $23 in the last few months and her bakery goes through anywhere from 15-20 bags a week.

"Any of the busy times, it's more than that."

But customers are understanding, she said, and she didn't raise her prices until all the old flour stock was gone.

"I held it off as long as I could."

Andrew Veneau, a Bathurst farmer who sells chicken, eggs and beef at the market, said wheat isn't the only grain that has gone up in recent months.

Veneau said he uses all natural grains and grass to feed his animals.

"Barley and corn ... is what I use the most of."

The cost has gone up by almost $50 a ton in the last month and that costs him more than $400 a month, he said.

"It's almost doubled."

Veneau said he pays more for his feed than some farmers because it has no animal waste in it.

He said he refuses to add animal waste to the grain, even though that could lower his costs.

"I will not do it."

Veneau said growing demand for biofuels is pushing grain prices up.

"A lot of these guys have gone into growing corn for biofuel."

Over the last year, the prices he charges have gone up 25 cents for a pound of beef and 50 cents for a dozen eggs, he said.

"I had no choice other than to put it up some."

Veneau said most customers realize the price of everything is going up and although some people complain, others tell him he doesn't charge enough.

"It's not too bad."

Veneau added one way for him to save money on feed would be to grow it himself.

"I've got the land base available."

But the bottom line is, if prices stay high, he said, he will have to get out of farming.

"I'll hang on as long as I can."