Baker raises value of Swedish favourite bread amid skyrocketing vitality prices

Sweden’s hottest breakfast bread will change into costlier after vitality costs hit a document excessive. Pagen, a southern bakery, will increase the costs of its lingonberry sourdough bread subsequent month after electrical energy prices have tripled up to now 12 months, in response to a spokesperson for the baker.

The almost 150-year-old firm is as a lot a sufferer of worldwide vitality and commodity inflation as it’s of native geography. Sweden’s getting older energy grid implies that the abundance of low-cost wind and hydroelectric energy within the north can not all the time attain the locations the place most individuals dwell.

The hole between the northern and southern value zones – a quirk in electrical energy pricing in Sweden, Norway and Denmark – has by no means been wider than in latest months. The output of a number of southern nuclear reactors decommissioned over the previous decade has not been changed, which suggests a scarcity of provides there. Sweden is spending billions of crowns to repair the issue, nevertheless it will not repair the issues for a number of years.

“In my view, Pagen has little alternative however to boost the value of its best-selling bread,” stated Torbjorn Iwarson, an unbiased commodities professional who has adopted the markets for almost twenty years. . “The meals trade is principally positioned in southern Sweden, and the nation’s vitality insurance policies have made bread-making and different meals productions much less worthwhile.”

Clients can count on a rise of about 11 to 22 cents (1-2 crowns) for a loaf usually priced at round $ 2.73 (25 crowns), relying on the person retailer’s margin, relying on the gate. -speak.

Within the north, Polarbrod, well-known for its wheat and rye flatbreads, is investing in wind generators and on the highway to vitality self-sufficiency. “Electrical energy costs haven’t had the identical impression on our prices this 12 months as they’ve on lots of our southern opponents,” stated Lars Wikman, head of renewable vitality investments for Polarbrod.

About Edith J.

Check Also

ANZ World Commodity Value Index: Forestry and horticulture returns lag

The nationReplace Jan 17, 2022 9:15 PM3 minute learn The ANZ World Commodity Value Index …