Snack Food & Wholesale Bakery - September 2008 - (Page 52)

The ASB Column ASB Surveys W hat is your single biggest concern regarding production costs right now? Not surprisingly, it’s wheat and commodity prices, according to a poll conducted by the American Society of Baking. The unscientific survey, sent to the society’s members in late July, indicates that half of those responding are still concerned about the high price of commodities, followed Its Members by energy and fuel prices (18.9%), finding skilled labor (14.7%), health care and benefit costs (10.5%) and other issues (5.3%). Back in February, when the society asked the same question, nearly 70% listed wheat and commodity costs as their biggest concern. To offset the rising cost of doing business, 40% of members listed raising prices as their company’s top strategy. That was followed by investing capital to improve plant efficiencies (16.8%), hedging against rising fuel or commodity costs (15.8%), reducing labor costs (13.7%), adjusting product mix toward more premium offerings (9.5%) and investing in training (4.2%). prices 10% or more. Specifically, most of the price hikes were significant. Only about one out of five (17.4%) raised prices 1-3% or not at all (3.3%). More than a quarter (28.3%) took a 4-5% increase while about one-fifth (18.5%) upped them 6-9% and the same percentage of respondents took a 10-12% increase. The remainder (14.1%) reported their companies increased prices 13% or more. A significant part of the problem for the baking industry, however, isn’t going away, according to a majority of members in the survey. Asked what their forecast is for the price of gas or diesel, nearly one-third (30.2%) agreed “it will remain steady or H ve Much Praces How ised i You Rais Year? Th To offset the rising cost of doing business, 40% of members listed raising prices as their company’s top strategy. ASB members then were asked what was the biggest challenge facing the baking industry as a whole, and once again, rising commodity costs top the list (43.8%), followed by an inability to raise prices in a timely manner (26%), skilled labor shortage (19.8%), lack of product innovation (8.3%) and flour quality and/ or availability (2.1%). When they get a chance to raise prices, they’re jumping at the chance. In fact, 97% of those responding to the survey indicated that they have increased prices this year, and one-third of their companies report having raised rise with global demand and/or speculation” followed closely by those (29.2%) who believe that “high prices are here to stay.” Fewer were optimistic with 17.7% saying fuel costs should decline with a slowing economy and 14.4% suggesting they would drop if speculation were regulated. The remainder couldn’t predict either way. However, for the price of wheat, the outlook was more optimistic. Nearly half (48.4%) said the price of wheat should stabilize while another quarter (27.4%) suggested the price may decline if the current crop size holds up. Only a small number (13.7%) predict it’s going to rise over the next 12 months while the remainder (10.5%) had no idea what the future holds % . . . . . .3 .3 prices . . aise . 17 .4% Did not r . . . . . . . 1-3% . . . d . . .28 .3% Increase . . . . . . . d 4-5% . % Increase . . . . 18 .5 . . . . . . . ed 6-9% 8 .5% Increas . . . . . . . 1 0-12% . . d1 14 .1% Increase ore . . . . 13% or M d Increase bers, y of its mem Surve d up to of Baking rs don’t ad an Society 08. Numbe e: Americ 20 Sourc of July 28, week conducted e of rounding. us 100 % beca 52 Snack Food & Wholesale Bakery - SEPTEMBER 2008

Table of Contents Feed for the Digital Edition of Snack Food & Wholesale Bakery - September 2008

Snack Food & Wholesale Bakery - September 2008 Contents Editor’s Note For Goodness Sakes Better Than the Rest Unconventional Thinking Easy Does It New Products In the Comfort Zone Engineering Management The ASB Column Printer Keeps Production Running Equipment Briefs Better Than the Rest The Final Word

Snack Food & Wholesale Bakery - September 2008

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