Wheat Prices Put Bagel Eaters in a Crunch

PUBLISHED FEBRUARY 12, 2008

Immigration in the 1880s transformed the United States, giving way to the Chinese Exclusion Act, greater Western expansion, and the arrival of the bagel in New York City. Today, rising wheat prices might just threaten the accessibility of New York’s favorite breakfast bread.

In less than a year, the price of a bushel of wheat has more than doubled. This has subjected the city and the world to one of the most drastic hikes in memory, according to Anthony Fodera, president of Fodera Foods, a company that distributes flour and other products to bakeries and delis.

“It’s out of control,” colleague John Fodera, Jr.said, emphasizing that agricultural price fluctuations can usually be controlled. This spike is unusual in that respect, and its effects are now hitting the pockets of store owners and consumers citywide.

Ray Rahat of 72nd Street Bagel on the Upper West Side had to increase the price of his bagels from 75 cents to 90 cents because of swelling costs accompanied by a decrease in revenue. “It was hurting us before because we were paying more and profits were going down,” Rahat said.

Experts say the issue reaches far beyond New Yorkers’ typical choice between sesame and cinnamon raisin. The forces that led to the price hike may have global effects more serious than forcing customers to fork over a couple of extra dimes. An ongoing drought in Australia, tariffs on grain exported from Argentina and Ukraine, and the conversion of corn and soybeans into biofuels may hurt supermarkets, bakeries, and consumers alike, according to Anthony Fodera. He also pointed to the world’s growing population, the impact of which is evident in China’s gradual switch from a rice-based diet to one that centers on healthier grains.

Fodera said that access to soybeans, milk, and other agricultural products is also thinning. He predicted shortages in protein-rich wheat in the coming months.

“All around, it’s creeping in slowly,” said Sharon, the friendly face of Morningside Heights bakery Nussbaum & Wu who only identified herself by her first name. But while Nussbaum will likely follow its counterparts’ lead soon, it has not yet upped its prices.

With the bagel crunch worsening, some people stopped to reflect on the importance of the food to the city’s identity. “Bagels are a big staple in a lot of people’s lives—maybe not as much as rice in China or the tortilla in Mexico, but especially in New York,” said Sarah, a customer at Nussbaum & Wu.

But the holey situation seems to have people like Rahat and the Foderas more anxious than those who simply frequent bagel joints at lunchtime. Nussbaum’s bagels “are very expensive, but it’s a necessity,” said customer Mario, who comes to the bakery because of its proximity to his workplace on 113th Street.

Mary, a Nussbaum regular admitted that the role of bagels in her life is “huge.” “It’s definitely very New York,” she said.

scott.levi@columbiaspectator.com

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