[28 May/Stuff NZ]

The two-year drought in Australia is expected to result in Australia only exporting nine million tonnes of wheat this year compared to a five year average of 17.5 million tonnes. The result of this is an expected bread price raise in New Zealand. Three-quarters of the bread sold in New Zealand is made from grain grown overseas, primarily Australia and Australian flour prices have risen 27 percent in recent months. Big volume plant bakeries that operate on slim margins are the most likely to be affected, particularly hitting the standard loaf.