The price of wheat has soared over the past month and has resulted in the greatest one month increase for 30 years. European wheat prices jumped by 8% per tonne earlier this week, their highest level in two years. Analysts say that prices have incrased by 50% since last June.
The jump has mainly been due to severe drought conditions in russia (one of the world's leading exporters) and has led to an increase in the cost of straw, animal fee and flour based consumer goods.
The dry summer in the UK has led to lower than average yields of staw and silage cuts have been down by up to 50% in some parts of the country. The price of hay has risen by 40% on last year and there are fears that livestock farmers could be left short of winter forage.