Millers, bakers scramble to satisfy bread-buying binge

CHICAGO/WINNIPEG North American flour mills and bakeries are rushing to boost production as the spread of the new coronavirus leads to stockpiling of staples like bread and pasta.

The virus’s spread prompted orders to stay at home in some U.S. states, including New York, California and Illinois last week following similar measures in Asia and Europe. Depleted store shelves in both the United States and Canada reflect hoarding and a spike in demand for foods consumed at home.

Chicago May wheat futures were up more than three per cent on Monday and hit a one-month high on strong global demand, while premiums for certain grades of milling wheat surged last week.

“There is a ton of pressure to produce to fulfil customer demand while also dealing with the obvious need to be extra cautious with our labour pool,” said Terry Tyson, general manager of the Canadian unit of Minnesota-based Grain Millers, which supplies groats — hulled oat kernels — to food companies and grocers.

The company finished building a second Yorkton, Sask., mill in November but was not planning to run it at full capacity yet.

Now it may hire staff sooner to increase production.

The United States is the world’s fifth-largest wheat producer and consumer. Canada is the sixth-largest grower.

Denver-based Ardent Mills, North America’s biggest miller, is buying more wheat and durum used in pasta from farmers to boost flour production, said Buck Vanniejenhuis, the company’s general manager for Canada.

“People shouldn’t be concerned about supply. It’s a demand issue,” Vanniejenhuis said.

The United Nations’ Food and Agriculture Organization warned that global panic buying and hoarding could lead to shortages — even though there are ample supplies.

Robb MacKie, chief executive of the American Bakers Association, said many bakeries are running continuously and have streamlined operations, dropping niche products for bread and cookies.

Families are now preparing three daily meals at home, instead of one, causing them to load their pantries with bread, said Justin Gilpin, chief executive of the Kansas Wheat Commission, a farmer-funded advocacy group.