But clearly our best efforts failed us, and since this event we have become even more diligent by enhancing our own protocols, and taking an active role in raising standards for the industry as a whole. Our goal is to establish Maple Leaf as a global leader in food safety. We said at the outset that sales volume recovery of a recall of this magnitude would take six to 12 months and we are on track to achieve this, although it could take longer to restore margins. This is a testament to our 24,000 employees who have worked so hard to help us come through this crisis. I thank them for their conviction and passion for this company and dedication to our success.

The surge in commodity prices in the first half of the year also had a significant impact on our business. Wheat tripled in price before it declined to end the year 62% higher than last year. Corn prices doubled in the same period, dropping again to end the year at 40%. And crude oil rose 41%, peaking in July before ending the year at US$45 per barrel. This surge in commodity prices directly affected our core costs for raw materials, manufacturing and distribution. Our strategies for forward buying, pricing and increasing operational efficiency helped to control costs, but margins, particularly in our bakery businesses, were materially compressed in the first two quarters. By year end however, we had almost completely recovered as commodity prices fell to more normal levels.

Business review
In our Bakery Products Group, sales increased by 13% over last year to $1.7 billion, while operating earnings declined 30% to $83 million The steep rise in wheat prices in the first half of the year heavily impacted earnings, but the combined effect of price increases and a decline in the price of wheat and other grains restored margins closer to historical levels by year-end. Our U.K. bakery business continued to build a strong platform as one of the leading specialty bakeries in the U.K. While an oven fire at our Rotherham bagel plant in the U.K. slowed earnings and growth in this core business, the financial impact was largely offset by insurance proceeds. Earnings in our North American frozen bakery operations improved substantially, a combination of a lot of hard work by this team to improve operating efficiencies and pass through prices to manage commodity inflation. We are increasing our focus on partnerships with key customers and making ongoing improvements to our facilities, including a large warehouse expansion and introduction of a new bagel line at our bakery in Roanoke, Virginia to bring production closer to our U.S. customers. We also launched a number of new products in our Canadian fresh bakery business that extends our leadership in higher nutrition multi-grain, higher fiber and organic breads and broadened our portfolio of high growth ethnic products.