Barbados Mills Limited, a subsidiary of Archer Daniels Midland Company, announced the increases yesterday in a brief message to the media.

Sales manager Curtis Todd said there would be a ten per cent increase for the biscuit factory and a 12 per cent hike for the bakeries.

A letter to customers announcing the increase said:

"Earlier this year we wrote to you, advising of steep increases in wheat prices. This triggered marginal increases in flour prices throughout the market.

"Unfortunately, current market conditions overseas continue to adversely affect wheat prices. Some of these are shrinking global supplies, poor harvest yields and other natural phenomena affecting crop sizes and the quality of wheat.

"The significant increases in wheat prices have therefore forced us to increase our flour prices with effect from July 17, 2007.

"We thank you for your patronage and understanding in this matter."

Last March Barbados Mills Ltd announced a 7.5 per cent rise in flour prices. It said then the adjustment was triggered by a steady increase in the price of wheat.

Last week some bakeries indicated they would have to wait to see the size of the increases before deciding whether or not there was a need to push up bread prices. (TY)