Biofuel competition leaves pasta makers in spaghetti shock

07/11/2007 | Spiegel Online (Germany)

Italians typically pay $1 for a pack of good pasta, but along with export consumers, they are about to feel the pinch of rising pasta costs spurred by competition from biofuel manufacturers and bad wheat harvests. "Pasta producers have tried, with growing difficulty that has now become no longer sustainable, to absorb the high cost differentials," the Italian Pasta Manufacturer's Association announced last week. "But this situation cannot go on any longer in the face of the dynamics of the durum wheat market."

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