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Mclean, VA (February 20, 2008) - In a move to let Government Officials know that there is a “CRISIS” happening to bakers of every type and size, the Retail Bakers of America has announced a “March on Washington” to take place March 12, 2008.
RBA President Mike Kalupa noted, “commodities prices for every item we use are out of control and rising faster then we could ever hope to catch them. If there is not some type of relief many small businesses will not survive.”
The March on Washington will be held in conjunction with the American Bakers Association (ABA) and bakers from around the country will be participating. Meetings have been set up with government officials including the Secretary of Agriculture for the board members of ABA and RBA. It is our hope to show just how much of a crisis we face. This issue is not about the “big guys” vs. the “little guys”. This issue is about how our industry will survive the next 12 to 18 months. By standing side by side we can implement change, said President Mike Kalupa.
As Americans know from our trips to the supermarket, prices of products in general are rising. With grain based products this is especially true. The price of a bushel of wheat has increased daily in the commodities market and this trend will continue for the foreseeable future. This translates to increases in the cost of flour that your baker pays each time he or she buys a bag of flour. Many bakeries have seen the cost of their flour bill almost double what it was in fall 2007.
The cost of wheat is impacted by multiple events. There was less acreage of winter wheat planted than the market anticipated. Farmers are being paid to plant crops for use in ethanol fuel rather than as food crops. There have been bad crops overseas and with the low U.S. dollar foreign countries are buying more U.S. wheat. The spring wheat crop that will soon be planted has already been sold at the higher prices. We anticipate that farmers will plant more acreage this spring but we won’t see an impact until the fall and even then we probably won’t see a change in the commodities market until mid-2009.
In addition to the cost of flour, other commodities such as eggs, butter and shortening that bakers use have risen. Now, with the sugar refinery in Georgia destroyed the cost of sugar will begin to rise and could well rival the rise in flour prices.
The members of the Retail Bakers of America are committed to providing the highest quality products and service for their customers.
About RBA - Founded in 1918, the Retail Bakers of America (RBA), a 501c6 not-for-profit trade association of approximately 2,000 retail bakeries, allied suppliers and other members, committed to the success of the retail baking industry. RBA is the baker’s business partner connecting buyers and sellers—retailers and suppliers, as well as consumers and retailers—to build profitable bakeries. RBA fosters the community of retail bakeries providing a forum for exchange of industry and business information, as well as networking, learning opportunities and mentoring among bakers, future and existing.
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Contact
Susan Nicolais, RBA Executive Vice President
(703) 610-0272
www.rbanet.com |
