The price not only covers the cost of the grain.

Components of the price of bread:

Processing, Energy, Trade/retail Taxes: approx.	66%
Grain:	4,4%
Wage costs: approx.	30%

 

Only a fraction of the agricultural goods produced worldwide have been used to date as bioenergy. Despite this, world prices for cereals such as wheat and maize have shot up. The reason: Crops failed because of extreme droughts. At the same time, the stocks of large agricultural traders reached lows. In addition, an increasing number of people, especially in the growth regions of Asia, want to consume more meat and milk products. This leads to disproportionately high consumption of cereals and oilseeds as feedstuffs.

Result: The prices rise. Therefore, it pays for farmers worldwide to invest in cultivation and to till fallow fields. In the past, agriculture in many parts of the world suffered from under-investment Cereal prices on the world markets should however not be confused with the price of bread from the baker next door. In the consumer price of bread, the share of grain as a raw material is very low (4.4%). The grain accounts for less than 10 Eurocents in a bread that costs 2 Euro. Other factors such as wages, processing and taxes are far more important.