A farmer typically receives a very small fraction of the retail price for a loaf of bread, often around 8% to 11% of the total cost, which equates to roughly 11p to 15p for a £1.30–£1.50 loaf. Often, after production costs are deducted, the farmer makes little to no profit from that amount.
The farmer? A recent report[4] for the charity Sustain showed that a typical 800g loaf of sliced bread only delivers 8% of the price back to the farmer who had grown the cereal, including NO profit. So, for our white loaf of bread costing £1.38, that is a measly 11p for the farmer. And they make no money on it.
What is the average price of a loaf of bread in the UK?
The average price of an unwrapped 800g white loaf was £1.58 in June, up 2p on the previous month. This is an increase of almost 19% year-on-year as the average price was £1.33 in June 2022. British Baker has previously revealed that the cost-of-living crisis had fuelled a resurgence in demand for white sliced bread.
Farmers receive much less than what consumers pay at supermarkets. For example, milk's farmgate price is around 46 pence per litre, but retails at 107 pence per litre, showing a 133% markup. Carrots see a farmgate price of 14 pence per kilogram, retailing at 65 pence, a 364% increase.
Cost of production also varies significantly between farm businesses, but is typically between 40p/litre and 50p/litre. As an example, a farm producing 5,000 litres a day, receiving a milk price of 30p/litre while facing production costs of 45p/litre, would be losing £750 a day at present.
From seed to loaf – the story of bread with Eckley Farms
How much does Asda pay farmers for milk?
Asda is to increase the price it pays its milk supplier to "a level that will assist" farmers, the supermarket says. The chain says it will commit to paying 28p per litre for 100% of its liquid milk throughout its entire range.
In farming, the "7-year rule" primarily relates to Inheritance Tax (IHT) planning, where gifting farming assets (land, buildings) to beneficiaries requires the donor to survive seven years for the gift to become fully exempt from IHT, falling out of the estate, though recent reforms starting April 2026 cap full relief at £1 million. It also affects Agricultural Property Relief (APR), which usually needs 7 years of ownership (or 2 years if farmed by the owner) for full IHT relief, though new rules will limit this to the first £1m of assets from April 2026, creating a "seven-year lottery" for farmers planning their legacy.
A basic white bread requires water, salt, butter, sugar, yeast and flour. If we cost them out, we get the following values1: So when we tally up the material cost of making one loaf of bread we get $0.85. Of course, we also have to account for the heat needed to bake it.
How many acres does it take to make a loaf of bread?
6 square feet of land should produce about 3 cups of ground wheat. That ground wheat makes up the flour needed for a loaf of bread. That means that an acre of land can produce enough wheat for 7,260 loaves of bread.
Only 14% of farmers surveyed for McCain Foods' inaugural Farmdex report said they made 10% or more profit in the past year. In fact, many are making no profit at all, with 35% of the farmers reporting making a loss or breaking even.
Farm operator households have more wealth than the average U.S. household because significant capital assets, such as farmland and equipment, are generally necessary to operate a successful farm business. In 2023, the median U.S. farm household had $1,439,138 in wealth.
You may be entitled to a Council Tax exemption if the property is on agricultural land. How does the property qualify for an exemption? The unoccupied property must be unfurnished and situated on agricultural land.
Yes, you can gift your son £100k, but it's a large sum that triggers Inheritance Tax (IHT) rules in the UK; it becomes a "Potentially Exempt Transfer" (PET) that's fully tax-free if you live for seven years after giving it, but may face IHT if you die within that period, with potential taper relief or a 40% charge depending on the timing. You can use annual exemptions (£3k/£6k) and wedding gifts (£5k) for smaller tax-free amounts, but the £100k is a large gift requiring careful planning to avoid future tax issues for your son, especially regarding income or gains from the money.
A landowner can use 'reasonable force' to encourage a trespasser to leave but not more than is reasonably necessary. Unless you have reasonable grounds to believe that you may be in danger, physical force or use of weapons is very unlikely to be considered 'reasonable' in the eyes of the law.
Sainsbury's has ended a long-standing deal, which saw dairy company Arla supplying a percentage of the Big 4 grocer's own-label milk. The change will instead see Müller as the sole supplier of Sainsbury's own-brand milk from February 2024.
Major supermarket announces 'bigger than expected' pay rise for thousands of staff to remain UK's 'highest-paying' Aldi today announced a 'bigger than expected' pay rise for supermarket staff from next week to ensure it remains the best-paying chain ahead of discount rival Lidl.
