Why is bread becoming so expensive

A.� The price of bread has risen by 20 per cent in the last few weeks and could get higher over the next few months. The cost of a large 800g Hovis wholemeal loaf has risen by 9p to 54p in many leading superstores in the last two weeks, according to a survey in The Grocer magazine. There are concerns this increase will be reflected in other brands, possibly rising to as much as 65p within a few months.

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Q.� Why is it getting so expensive

A.� Many bakeries say poor weather has led to severe reductions in grain planting and the need to import flour. The increase in the price of bread has been reflected�in a rise in the price of potatoes and other fresh produce in recent weeks. Some industry experts have suggested bread prices should become�'more realistic'.

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The price of bread has fallen below production costs in the past in an effort by competitive retailers to get customers through their doors. At one point, loaves could be bought for as low as 19p in Tesco. The price hike�could help farmers who have been suffering a particularly poor year. This year, farmers expect the wheat harvest to yield about 12 million tonnes, compared to 16 million last year. Current grain prices are higher and they are expected to rise over the next few months.

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Q.� Who makes all the bread in Britain

A.� The UK bread industry is dominated by two major companies - British Bakeries, which makes Hovis and Mother's Pride, and Allied Bakeries, which makes Kingsmill. It is estimated nine million loaves are sold in Britain every day. The average family gets through nearly eight loaves a week, making the market for bread and other morning goods worth almost �3 billion a year.

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Hovis is currently undergoing a multi-million pound relaunch and it is expected that its rebranded loaves will�go on sale for about 60p.

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By Katharine MacColl