Baking & Snack - November 2021 - 70

SUPPLY CHAIN
Busy shipping ports
mean longer wait
times for cargo,
causing headaches
for suppliers
and bakers.
┬ęPhoto Gallery - stock.adobe.com
soon is likely to put out its 2021-22 Renewable Fuel
Standard, Renewable Volume Obligation levels, " Lee
Sanders, senior vice president, government relations
and public affairs for the American Bakers Association
(ABA), said in late September. " If that goes up, it's going
to make the crisis we're facing right now even worse. "
ABA is urging bakers to reach out to their members of
Congress and speak out on social media to help stem the
demand of these oils for biofuels. To help assist members,
a sample letter is available on the grassroots advocacy
page at www.americanbakers.org.
" We've been leaning on the White House, EPA and US
Department of Agriculture, " said Robb MacKie, president
and chief executive officer of ABA. " We've asked
them to give us a pause, give us a couple of years and
let the market catch up. Increase the refining capacity,
let the growers grow more soybeans. ... We're at this moment
in time where it's just going to take a moment to
work through it. "
Although there are many critical issues facing bakers,
Ms. Sanders emphasized that RFS remains a top concern.
" It's a kitchen table issue, " she said. " It's going to impact
consumers' ability to have a variety of products on
their table and in their pantry. It's going to impact their
budgets when they're working to feed their families. It's
going to impact our ability to make those products. "
Bakers are facing significant cost increases on several
fronts. In mid-September, prices for bakers standard
patent,
the basic hard red winter wheat bread flour,
were up 33% from a year ago, and spring standard patent
flour from hard red spring wheat was up about 40%
from the same time last year.
Several September commodity prices were up significantly
from a year ago, including dried whole egg prices
by 70%, spot prices for refined cane sugar by 30%, dry
dairy products used by the grain-based food industry
were up 30% to 66%, Midwest prices for food-grade oat
flakes up 37% and milling quality oats up 75%.
" Without fail, every single ingredient that we buy,
whether it's packaging or raw material for the pies, is a
70 Baking & Snack November 2021 / www.bakingbusiness.com
Labor shortages in every sector
The severe workforce challenges are intertwined with
ingredient supply chain issues. It affects suppliers' ability
to produce products and exacerbates issues of transporting
supplies to bakeries in a timely manner. Not to mention
the havoc it's caused for bakeries trying to maintain
the workforce they need.
" The current labor shortage must be the No. 1 issue
not only for the supply chains but also baking facilities,
as it impacts product quality and food safety, " said David
Bauman, food safety professional, AIB International.
minimum of 20% increase all the way north of 60% this
year alone. Everything, " said Par Grandinetti, president
of Rocky Mountain Pies, Salt Lake City.
Bakers are forced to continue raising prices in the face
of these dramatic increases, which don't appear to be letting
up anytime soon.
" Everybody has come to grips with the fact that we
don't know how significant the inflationary pressures are
going to be or where it's going to stop at this point, " Mr.
Hotze said. " The Producer Price Index tends to be a little
more forward looking (than the Consumer Price Index),
and we're seeing that in the mid-teens for commodities.
That tells me that all the producers think that the inflation
is a lot greater than what the state of rates are right
now. I think that's significant. "
The sharp rise in ingredient demand early this year
put pressures on markets that were not prepared for
them, said Bill Lapp, president of Advanced Economic
Solutions. He is estimating that a significant share of
the supply chain challenges will improve in the first half
of 2022, although transportation and freight problems
could persist.
" Because it's so widespread, it's starting to have an
adverse impact on economic growth and the ability to
spend, " Mr. Lapp said. " It slows down our economy as
we go through the remainder of 2021 and into 2022. And
in terms of resolving some of these issues, the key thing
to watch for most closely is some of the labor metrics. "
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Baking & Snack - November 2021

Table of Contents for the Digital Edition of Baking & Snack - November 2021

Baking & Snack - November 2021 - Intro
Baking & Snack - November 2021 - 1
Baking & Snack - November 2021 - 2
Baking & Snack - November 2021 - 3
Baking & Snack - November 2021 - 4
Baking & Snack - November 2021 - 5
Baking & Snack - November 2021 - 6
Baking & Snack - November 2021 - 7
Baking & Snack - November 2021 - 8
Baking & Snack - November 2021 - 9
Baking & Snack - November 2021 - 10
Baking & Snack - November 2021 - 11
Baking & Snack - November 2021 - 12
Baking & Snack - November 2021 - 13
Baking & Snack - November 2021 - 14
Baking & Snack - November 2021 - 15
Baking & Snack - November 2021 - 16
Baking & Snack - November 2021 - 17
Baking & Snack - November 2021 - 18
Baking & Snack - November 2021 - 19
Baking & Snack - November 2021 - 20
Baking & Snack - November 2021 - 21
Baking & Snack - November 2021 - 22
Baking & Snack - November 2021 - 23
Baking & Snack - November 2021 - 24
Baking & Snack - November 2021 - 25
Baking & Snack - November 2021 - 26
Baking & Snack - November 2021 - 27
Baking & Snack - November 2021 - 28
Baking & Snack - November 2021 - 29
Baking & Snack - November 2021 - 30
Baking & Snack - November 2021 - 31
Baking & Snack - November 2021 - 32
Baking & Snack - November 2021 - 33
Baking & Snack - November 2021 - 34
Baking & Snack - November 2021 - 35
Baking & Snack - November 2021 - 36
Baking & Snack - November 2021 - 37
Baking & Snack - November 2021 - 38
Baking & Snack - November 2021 - 39
Baking & Snack - November 2021 - 40
Baking & Snack - November 2021 - 41
Baking & Snack - November 2021 - 42
Baking & Snack - November 2021 - 43
Baking & Snack - November 2021 - 44
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Baking & Snack - November 2021 - 46
Baking & Snack - November 2021 - 47
Baking & Snack - November 2021 - 48
Baking & Snack - November 2021 - 49
Baking & Snack - November 2021 - 50
Baking & Snack - November 2021 - 51
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Baking & Snack - November 2021 - 53
Baking & Snack - November 2021 - 54
Baking & Snack - November 2021 - 55
Baking & Snack - November 2021 - 56
Baking & Snack - November 2021 - 57
Baking & Snack - November 2021 - 58
Baking & Snack - November 2021 - 59
Baking & Snack - November 2021 - 60
Baking & Snack - November 2021 - 61
Baking & Snack - November 2021 - 62
Baking & Snack - November 2021 - 63
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Baking & Snack - November 2021 - 65
Baking & Snack - November 2021 - 66
Baking & Snack - November 2021 - 67
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Baking & Snack - November 2021 - 69
Baking & Snack - November 2021 - 70
Baking & Snack - November 2021 - 71
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