On the back of the continuing increase in the price of UK wheat, Rank Hovis has announced a price rise across all its grades of flour.

From 1 January 2013, the price will rise by £50.62 per tonne – the equivalent of 81p more per 16kg bag.

Lawrence Watson, commercial director – milling, Rank Hovis, told British Baker the price increase had been implemented following the continuing rise of the wheat price, on the back of such a poor harvest this summer.

The miller had previously put its prices up in August, by an extra £77.35 per tonne (£1.24 per 16kg bag).

“Since I last wrote to you in August 2012 advising of flour price increases, the cost of wheat has continued to rise,” said Watson, in a letter to Rank Hovis’ milling customers. “As a consequence I write to advise that Rank Hovis will be increasing the price of flour on all deliveries from Tuesday 1 January 2013.”

Since August, as a consequence of harvest issues, global wheat production has reduced by a further 21 million tonnes, said the firm. “The UK wheat harvest reduced by 2.5 million tonnes, from initial projections, with smaller grains significantly impacting milling yields.

“As a consequence, there has been a shortfall in the availability of high- quality bread-making and biscuit wheats and UK wheat prices have risen by a further 15% from the August highs.”