Bread price rise warning if Iran war drags on as government urged to act

Bread price rise warning if Iran war drags on as government urged to actThe boss of Allied Bakeries' owner rules out price rises for now but says it is possible “if the situation doesn’t improve”CommentsMoneyGraham Hiscott Business and Consumer Editor16:40, 21 Apr 2026Updated 16:52, 21 Apr 2026View 3 ImagesBakeries - such as those making big seller Kingsmill - are among energy hungry businesses at risk from soaring costsThe maker of Kingsmill bread could slap a surcharge on the cost of a loaf if the Iran war drags on. An energy shock caused by the ongoing conflict risks driving up costs for energy hungry businesses and those that rely on fertiliser, including food manufacturers.‌George Weston, chief executive of Associated British Foods, which owns Allied Bakeries, said it had yet to be impacted because of “hedging”, which guards against cost shocks such as those happening now.‌But he warned the benefit would begin to reduce from the summer when it comes to fertiliser, and on energy from the end of this year, assuming oil prices remain sky-high.‌View 3 ImagesThe maker of Kingsmill bread says 'hedging' on oil and fertiliser costs are guarded it against price rises for nowREAD MORE: Bakers using robots to bulk make doughnuts amid fears AI could spell 'end of industry'READ MORE: Iran shuts Strait of Hormuz again despite Trump war threat - more economic miseryMr Weston said ABF’s bakery business in Australia - where it makes Tip Top loaves - does not have the same hedging protection when it comes to energy. “In Australia, we don’t have the hedging benefit,” he said. “We have put on a fuel surcharge to bread.”Mr Weston stressed there were no plans to do the same here, yet, but price rises were possible “if the situation doesn’t improve.” He went on: “We would ask the retailer to pay for it, and they would decide what to do with that cost.”‌Farmers say the cost, and availability, of fertiliser has been heavily impacted by the Iran’s blockade of th...