It seems like we're on a wild roller coaster ride. On January 25^th 2008, the price for Spelt grain DOUBLED! On March 1st, it doubled again, a 400% price increase in two months. We'd like to explain this to you from our view.

As the United States has become more involved in the so-called "global marketplace", we find our nation in a weak position. The dollar is worth less in relation to other currencies, making our grain cheaper to foreign buyers. Other nations are able to pay higher prices for food, and the ongoing crop failures in Europe and Canada and Australia (and more recent ones in the US) have impacted our grain supply. The demand has driven up prices AND taken away much of the supply, which drives the price up even higher.

In addition, as the global demand for ethanol fuel increases, food crops are converted into gasoline, which we burn up in our cars, SUVs and trucks. Yes, gasoline is being extended with ethanol, which is made from corn crops. Corn has usually gone to feed cattle, dairy, chickens and pigs. That has been replaced with soy. Farmers are planting more corn and soy and replacing spelt and other grains because they can sell the corn and soy for twice the price of wheat. So, the more we drive, the less food crops we have. Hmmmm: If I have to decide between dinner and driving my car, what would I do? Of course, the government and media are not informing us of this potentially deadly situation, so we have to deal with it on our own.

There are other circumstances impacting food prices, but those are the two major ones.

Since the United States is so integrated in the "global marketplace", we have to make individual choices considering our families, our neighbors, and ourselves. The demand for food crops is out of control, we are using our resources without considering the next generation, and we are not aware of the gravity of the situation.

Meanwhile, Pacific Bakery raised our wholesale prices to the retail food stores and we are told that the bread is selling for $7.00 to $9.00 a loaf. Our new mail order price for all Spelt and Kamut breads is now $5.99, and the wheat-based breads are now $4.99, plus shipping. You may be able to order directly from Pacific Bakery and save money even with the added cost of delivery.

We look forward to providing you with our organic, yeast-free breads and bagels, and hope that you enjoy them.

Thank you for your continued support.

Chuck Lowery
President
Pacific Bakery Inc.