Milling & Baking News - 2012-01-10

THE NEWS WEEKLY OF GRAIN-BASED FOODS

bakingbusiness.com / foodbusinessnews.net

JANUARY 10, 2012

LATE NEWS

Continued on Page 21

CEDAR RAPIDS, IOWA — Cargill said it will invest approximately $20 million this summer to modernize its soybean crushing plant on the east side of Cedar Rapids. The company said it may invest up to an additional $40 million in the facility over the next several years if needed. Along with the announcement, Cargill said industry overcapacity in soymeal production is prompting the company to close its Des Moines, Iowa, crush plant on Feb. 4. Cargill indicated it will continue some business activities at the Des Moines site, and it will continue to purchase

Cargill investing in Iowa soybean plant

Ending at record high, grain-based shares beat broader market in ‘11NEW YORK — Shares of grain-based foods companies scored solid advances in 2011, with gains easily outpacing major market indices. The Grain-Based Foods Share Index closed at the highest year-end level ever, 12154.32, up 7.5% for the year.

The 7.5% advance compared with a 5.5% gain for the Dow Jones average of industrial shares, which ended at 12,217.56. The S.&P.500 ended the year at 1,257.60, three one-thousandths of a per cent beneath the 2010 close. The NASDAQ exchange performed still worse, closing with a decline of 1.8%, at 2,605.15.

While ending at an all-time high, the 2011 performance of the Grain-Based Foods Share Index was less impressive by a number of other measures. The 7.5% gain was the worst showing in

three years, eclipsed by the 9% advance by the index in 2010 and the 13.2% jump in 2009. The advance fell short of the 10.5% jump in the Consumer Staples sector shares within the S.&P.500, meaning grain-based foods

DONUT UPDATE

Investing dollars for donuts

Story on Page 33

Public offering of Dunkin’ Brands highlights successful year for donut chains

Continued on Page 8

Hard winter wheat does well through winter’s early days

Marking nine decades in

partnership with grain-based foods

STOCK MARKET REVIEW

cover affected wheat condition ratings in South Dakota and Montana.

At the end of December Kansas wheat condition was rated 53% good to excellent (47% a month earlier), 38% fair and 9% poor to very poor.

“Above average temperatures and benefi cial moisture in most areas helped to see the winter wheat through December,” said Kansas Agricultural Statistics.

Most areas of Kansas received moisture during December with 34 of the 52

Continued on 0

KANSAS CITY — The hard winter wheat crop fared well in December in most states. Hard winter wheat condition ratings in Kansas and Oklahoma at the end of December improved from a month earlier while winter wheat ratings across Texas and Nebraska were mostly stable and northern Plains wheat condition slipped. The grip of drought across the southern Plains was loosening, but much more moisture was needed. Drier-than-normal weather and a lack of snow

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4 / January 10, 2012 Milling & Baking News bakingbusiness.com / world-grain.com

Ending at record high, grain-based shares beat

broader market in ‘11Story on Page 21

Contents January 10, 2012 Vol. 90, No. 23

ADM in joint venture to operate elevator

ADM-Benson Quinn and United Farmers Coop form a joint venture, United Grain Systems, L.L.C., that will build and operate a grain elevator in Brownton, Minn.

After MF Global collapse, hearing looks at safeguards

The chief executive offi cer of R.J. O’Brien & Associates says confi dence in the commodity markets system must be restored after the MF Global bankruptcy.

Milling operating rates mostly hold steady

Flour milling capacity utilization data from the North American Millers’ Association mostly are consistent from fi gures based on the Census Bureau.

Rich Products unveils new governance structure

Rich Products Corp. will transition to one organization consisting of fi ve regional units: U.S./Canada, Asia/Pacifi c, Latin America, Europe/Middle East and South Africa.

‘Good grains’ to be bakery’s top 2012 trend

Good grains, including ‘ancient grains,’ will be the leading driver of innovation in the bakery sector in 2012, according to New Nutrition Business.

Welcome start to2012 in fi ndingabout calorie’s role

NEWS Comment

7 Editorial 10 Business 13, 32 People 14 Washington 18 Data 34 Industry Activities 36 Nutrition and Health 37 Ingredient Week Trends 45 Supplier Innovations 50 Archive

12

14

18

32

36

DEPARTMENTS

ADM-Benson Quinn ..................................12Agrium Inc.................................................28Ahold ........................................................28Alexandria Flour ........................................30Archer Daniels Midland Co. .......................24Arla Food Ingredients Groups P/S .............45Aryzta A.G. ................................................28Associated British Foods ...........................26Barry Callebaut .........................................45BASF Corp. ................................................45Batory Foods Inc. .......................................12Brenntag Specialties, Inc. ..........................45Bunge Ltd. .................................................24Cargill ............................................. 1, 28, 34Carr’s Milling Industries P.L.C. ...................26ConAgra Foods, Inc. ..................................21Corn Products International, Inc. ...............24Dakota Specialty Milling, Inc. ....................13DecoPac, Inc. .............................................13Dunkin’ Brands Group, Inc...................21, 33

It would have been a wonderful start to the New Year to have recognized nutrition professionals say eating grain-based foods is the way to control weight and prevent obesity. Alas, that did not happen, nor was it expected. Instead, new fi ndings were published in the Journal of the American Medical Association that, while not embracing this dream of millers and bakers, come close to providing the factual basis for dismissing all the wild eating regimens that are advocated to lose weight. This new study declares in no uncertain language and with measured data the exclusive role of calories, no matter their source, in controlling weight.

No sector of the food industry has the potential of benefi ting from these fi ndings more than grain-based foods. After all, it is this industry that experienced slippages in consumption attributed to dietary fads focused on limited intake of carbohydrates. More recently, the industry endured dietary recommendations that specifi cally blame the obesity “epidemic” on bread and similar grain-based foods, attacking whole wheat.

The new study underscores that it is calories, not protein levels or anything else, that cause people to accumulate fat. It is the only controlled study that measured the effect of differences in protein intake on people engaged in overeating. Conducted under rigorous experimental conditions that eliminate any challenge of the fi ndings, the conclusion about the primary role of calories should be shouted from the housetops by grain-based foods. MBN

COMPANIES IN THIS ISSUEEast Delta Flour Co. ...................................30Ebro Puleva S.A. ........................................30Egyptian Starch .........................................30Finsbury Food Group P.L.C. ........................26First Baking ...............................................28Flour Mills of Nigeria P.L.C. .......................30Flowers Foods, Inc. ..............................21, 33Foresight Commodities Services, Inc. .........32GasLamp Popcorn .....................................12General Mills, Inc. .....................................22GrainCorp Ltd. ...........................................28Greencore Group P.L.C. .............................26Greggs P.L.C. .............................................26Groupe Danone S.A. ..................................28Grupo Bimbo S.A.B. de C.V. ...................8, 21Hain Celestial Group Inc. ...........................21Horn Co. ....................................................45Hostess Brands, Inc. ..................................33Indofood ...................................................28J.M. Smucker Co. .......................................22

Investing dollars for donutsPublic offering of Dunkin’ Brands highlights successful year for donut chains

Story on Page 33

Kerry Group ...............................................28Kraft Foods Inc. .........................................22Krispy Kreme Doughnuts, Inc...............24, 33Mac & Massey, L.L.C. ................................12Marks & Spencer .......................................26McGlynn Bakeries .....................................13MF Global .................................................14MGP Ingredients, Inc. ................................24Middle and West Delta Flour Co. ...............30Middle Egypt Flour ....................................30Molinos Rio Plata ......................................30Nestle S.A. .............................................8, 28Nippon Flour Mills Co. Ltd. ........................28Nisshin Milling ..........................................28Nisshin Seifun ...........................................28Nissin Foods Holdings ...............................28North Cairo Flour ......................................30Origin Enterprises ......................................28Panera Bread Co. .......................................21Peerless Group ..........................................45

Premier Foods ...........................................26Quinenco ...................................................30R.J. O’Brien & Associates ...........................14Ralcorp Holdings, Inc. ................................21Rich Products Corp. ...................................32Rudolph Foods ..........................................12Sainsbury, P.L.C. .........................................26Sara Lee Corp. ...........................................22South Cairo & Giza Flour Mills ..................30Swany White Flour Mills ............................12Tasty Baking Co. ..................................21, 33Tate & Lyle P.L.C. .......................................26Tesco .........................................................26The Andersons, Inc. ...................................13Tiger Brands Ltd. .......................................28Unilever.....................................................28United Farmers Coop ................................12United Grain Systems, L.L.C.......................12Upper Egypt Flour .....................................30Van Drunen Farms .....................................45

STOCK MARKET REVIEW

*Information is accurate as of October 2011, to the best of Archer Daniels Midland Company’s knowledge.

For customers around the world, ADM draws on its resources—its people, products, and market perspective —to help them meet today’s consumer demands and envision tomorrow’s needs.

800-422-1688 | [email protected] | www.adm.com/milling

© 2011 Archer Daniels Midland Company

With more production facilities than any other supplier,ADM Milling works for you.

It’s simple, really. You want the right product delivered to the right place at the right time. That’s how ADM works for you. As one of North America’s leading millers, we not only have more production facilities than any other supplier, we also have one of the industry’s largest logistics and transportation networks. And it’s all backed by a team of committed professionals working tirelessly on your behalf. That means an uninterrupted supply. No surprises. We’ll deliver on our promise, so you can deliver on yours.

To learn more about how ADM Milling will work for you, contact us at [email protected].

Or, visit us online at adm.com/milling.

adm002645_BulkPurchBkgSnk_8x10.75.indd 1 11/23/11 10:23 AM

7 / March 13, 2007 Milling & Baking News bakingbusiness.com / world-grain.com

Nine decades strong in pledge to grain-based foods

Note is proudly made that 2012 marks the 90th

year of Milling & Baking News. Published

weekly now in alternation with Food Business News, this magazine had its start in March 1922 with

the fi rst issue of what was then The Southwestern Miller.

The never-missed commitment, through the amazing

and, yes, wonderful history of the past nine decades

to maintain a weekly publishing schedule is nearly

without parallel in global magazine publishing. It is

defi nitely unique in business-to-business publishing.

Fewer than six publications in total around the world

have been published weekly for this span of time. Thus

do we count special our publication of nearly 5,000

separate issues, counting both weekly and specials.

Founded by members of the Sosland family and still

owned and managed by that same family, the maga-

zine owes its longevity to the way a hard-working

staff found and has continued to cultivate common

ground with the people at every level of grain-based

foods. Choosing that indus-

try as the one the magazine

born in 1922 would serve is

acknowledged as a fortu-

itous act that has been built

upon in numerous itera-

tions. Even as Milling & Baking News has earned a po-

sition of eminence, not just for its age but mainly for

its quality in reporting and commenting, the owners

have branched out to establish and build other maga-

zines that focus on other important aspects of the food

industry, in America and around the world.

This page in this issue each year has been devoted

to a Publisher’s Report on how the magazine and its

publishing company fared in the past year and what

is in prospect for the year ahead. Marking the 90th

anniversary will certainly receive great attention in

the year ahead, including special issues as well as

many other activities aimed at helping our readers

and our advertisers achieve signifi cant progress co-

incident with celebrating nine decades of publishing.

These observances and celebrations will include all

the magazines, e-newsletters, other electronic publi-

cations and video productions, plus services built on

new technology. The magazine roster now includes

Milling & Baking News, Food Business News, World Grain, Baking & Snack, Bake, Meat & Poultry, InStore,

and Biofuels Business.

If there’s any key to our success, and there are no se-

crets in a company that has been active for so long a time,

it is that every activity planned is fi rst considered in light

of how it will help the industry in total and individual

companies and executives make progress. This focus

goes beyond efforts to sell more hundredweights of fl our

and more loaves of bread in order to examine the best

course for grain-based foods and its companies to follow

in a world where change is occurring at speeds accelerat-

ing with each passing moment. The one central goal of

this publishing enterprise is to provide assistance and

guidance to the people and companies who look to us as

a force that is single-mindedly focused on the industry’s

success. No development, not even the wildly gyrating

ingredient markets, not the awful confl icts between the

administration and Congress,

not rising food safety concerns,

have prompted even consider-

ation of a shift in direction.

No industries are more af-

fected by the world around

them, particularly matters like the state of the economy,

employment levels, foreign trade, national debt and poli-

tics, than publishing and grain-based foods. Thus, each

has felt the pain of the economic setbacks that began in

2008 and have persisted into the present era. Based on

stock market performance and earnings, grain-based

foods has done better than most other industries and has

even performed well among sectors of the food industry.

By well thought-out operating strategies and product and

service innovations, the industry has succeeded when

many other businesses faltered and even failed.

This publishing enterprise also did well in the face

of the dismal economy and in grappling with the real

revolution under way in publishing as represented

by the “battle” between print media and the Internet.

Distribution and sustainability issues that are central

to the matters facing grain-based foods executives

MORTON SOSLAND, EDITOR-IN-CHIEF

WE’RE EAGER TO GET YOUR FEEDBACK: E-mail [email protected] or write to us at Milling & Baking News, 4800 Main Street, Suite 100, Kansas City, Mo, 64112

EDITORIAL STAFFEditor-in-chief

Morton I. SoslandExecutive editor, markets

Neil N. SoslandEditor

L. Joshua SoslandSenior editor, markets

Jay S. SjervenManaging editor

Eric J. Schroeder

Associate editorJeff Gelski

Assistant editorRon Sterk

Internet editorAllison Gibeson

Graphic designer, market graphics, data

Christina Sullivan

PUBLISHING STAFFChairman

Charles S. SoslandVice-chairman

L. Joshua SoslandPresident and publisher

Mark SaboAssociate publisherG. Michael Gude

Vice-president, chief fi nancial offi cerMelanie Hepperly

Audience development directorDon Keating

Director of e-businessJon Hall

Director of on-lineadvertising and promotions

Carrie FlueggePromotions manager

Taré TorresAdvertising manager

Nora Wages

Director of design servicesSadowna ConarroeCirculation manager

Judith ArnoneDigital systems analyst

Marj PottsManager of advertising design

Becky White

Editorial

bakingbusiness.com / world-grain.com Milling & Baking News January 10, 2012 / 7

As nine decades in publishing are noted in these pages in 2012, this

magazine’s and its publishing company’s commitment to the people and

industries it serves will only strengthen.



years. The sale will take place the fourth week of January and will be managed by units of HSBC P.L.C., Group Financiero Inbursa SAB and ING Groep. Separately, Bloomberg said Bimbo will meet with bond investors in Europe and the United States from Jan. 9 through 16 and may sell dollar-denominated bonds after the meetings.

WASHINGTON — The U.S. Commodity Futures Trading Commission last week voted to reject a request from the Se-curities Industry and Financial Markets Association and the International Swaps and De-rivatives Association to delay implementation of position-limit rules aimed at preventing exces-sive speculation in commodity markets. The 3-2 vote to reject the request was the same mar-gin by which the C.F.T.C. ap-proved the plan in October. The two trade groups in part claimed the rules were not necessary and may actually harm the industry. The trade groups in December sought to block the new rules in a lawsuit against the C.F.T.C., which last week asked a federal appeals court to dismiss the case. The C.F.T.C. plans to phase in the new position limits during 2012.

VEVEY, SWITZERLAND — Nestle S.A. has announced the opening of a factory in western Turkey that has an annual production capacity of 15,000 tonnes of breakfast cereal. Cereal Partners Worldwide, a joint venture between Nestle and General Mills, Inc., owns the facility and will operate it. About 85 million Turkish Lira ($45 million) was invested in the construction of the plant. Located in Turkey’s Karacabey region, it will produce breakfast cereal for the Turkish market as well as for 14 other countries in the Middle East and Africa. MBN

soybeans at its Des Moines elevator. The company also will continue to operate its vegetable oil refi nery and produce specialty feed products at the Des Moines facility. A total of 22 jobs will be eliminated by the Des Moines closing.

RIDGWAY, COLO. — The Grain Foods Foundation is partnering this month with the Spina Bifi da Association

as part of National Birth Defects Prevention Month. The groups will remind women of child-bearing age of the importance of folic acid in the prevention of neural tube birth defects. The G.F.F. is taking a number of steps as part of its partnership, beginning with the development of an on-line course on folic acid through the S.B.A.’s SB University, a self-paced on-line educational program. The G.F.F. also will be promoting its message through proactive medial outreach. Finally, a television public service announcement created four years ago and promoting the benefi ts of enriched grains, will be re-released with the Spina Bifi da Association logo.

MEXICO CITY — Grupo Bimbo S.A.B. de C.V. is planning to sell bonds valued at more than half a billion dollars, Bloomberg said Jan. 4, citing a fi ling with the Mexican Stock Exchange. Bloom-berg said the sale, valued at up to 7.5 billion pesos ($547 mil-lion), is planned in two tranches of fi xed and fl oating-rate securi-ties, maturing in fi ve and seven

C.F.T.C. won’t delay position limits

Bimbo to sell bonds, hold meetings

Late News WEEK OF JANUARY 10

[email protected]

Egypt’s grain-buying

agency bought 240,000

tonnes of milling wheat

for shipment March

11-20. U.S. soft red

winter wheat was

offered in the tender,

but Egypt turned to

Russia, Ukraine and

France for supply. Egypt

has purchased only

189,000 tonnes of soft

red winter to date this

marketing year.

G.F.F. launches Spina Bifi da Foundation partnership

Nestle opens breakfast cereal facility in Turkey

Continued from Page 1

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Editorial

have equal weight in publishing, particularly that part de-pendent on a viable postal service. In contrast to what is widely reported about slippages in readership and adver-tising for magazines and newspapers generally, this com-pany’s total subscriber numbers to our print magazines as well as advertising in the same held remarkably steady in 2011. At the same time, signifi cant gains were achieved in on-line subscriber numbers and advertising volume.

Several publishing records merit attention. Subscrib-er numbers across all publications and on-line editions reached 280,000, while our 17 e-newsletters alone drew 368,000 registrants receiving a total of 31 million e-letters. Major growth occurred in custom publishing, for both in-dividual companies and organizations. Webinars, offering programs via the Internet on a range of matters from new products to technology, drew increasing numbers of these

inter-active programs. Videos that introduce marketing and production ideas, as well as ingredient and product ad-vances, are being produced at a growing rate for a range of advertisers. The annual Purchasing Seminar, which marked its 35th anniversary, drew a record 710 registrants to Kansas City from an increasingly broad range of food companies, in both America and other lands.

As nine decades in publishing are noted in these pages in 2012, this magazine’s and its publishing company’s com-mitment to the people and industries it serves will only strengthen. As publishers who have been in the forefront of adapting to revolutionary changes in publishing technol-ogy, we promise to deliver news and comment in a manner you, our readers, prefer and want. This pledge refl ects our confi dence in the future of grain-based foods, a future with which we have joyfully marched together in all of the past 90 years. MBN


Hard winter wheat does well through winter’s fi rst month

Business

stations reporting more than 2 inches of precipitation. The lightest amounts were measured in the northwest.

Snow fell during the fi rst and third weeks of December across western Kansas with snow depths of more than a foot at some locations in the state’s west central district.

Kansas topsoil moisture improved to 76% ad-equate to surplus (56% a month earlier) and 24% short to very short with the southwest district “still very dry with 64% reported in short to very short for topsoil moisture.”

Oklahoma wheat condition was 63% good to excellent (56% at the end of November), 30% fair and 7% poor to very poor. The U.S. Department of Agriculture’s Oklahoma fi eld offi ce said, “Several precipitation events throughout the month have improved conditions for small grains in the ground, but more moisture is needed to recover from the long drought.” The offi ce noted as of the Dec. 27 drought monitor, 85% of the state remained in a drought and much of western Oklahoma remained in an

“extreme to exceptional” drought.Texas wheat condition at the start

of the new year was rated 25% good to excellent (25% a month earlier), 37% fair and 38% poor to very poor. The area gripped by “exceptional

drought” was receding with topsoil moisture improving, but subsoil moisture remained drastically short.

The U.S.D.A. Texas fi eld offi ce said, “In northern areas of the state, dry land winter wheat progressed well due to recent moisture in areas of the Northern High Plains. Winter wheat in areas of the Cross Timbers progressed well due to warmer temperatures. Emerging winter wheat and oats slowed due to a recent cold front in areas of the

Blacklands. Winter wheat and oats progressed well in areas of South Texas due to timely rain showers and replenished soil moisture.”

Nebraska wheat condition was rated 74% good to excellent (74% a month earlier), 25% fair and 1% poor with the U.S.D.A. fi eld offi ce in that state noting weather conditions were relatively mild and dry compared

with December 2010.South Dakota wheat

condition was rated 41% good to excellent (63% a month earlier), 47% fair and 12% poor to very poor. The U.S.D.A.’s South Dakota fi eld offi ce said, “Producers across the state were concerned about the lack of snow cover for the winter wheat and alfalfa. Mild temperatures were also a concern for the winter wheat.”

Montana wheat con-dition at the end of December was rated

30% good to excellent (37% a month earlier), 61% fair and 9% poor to very poor. The U.S.D.A. fi eld offi ce in the state said, “Much of Montana experienced dry, windy conditions during the month of December with low temperatures dipping below zero and average low temperatures in the upper 20s to lower 30s at most reporting stations.” The offi ce said the decline in the condition rating took into consideration the lack of snow cover. MBN


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ADM-Benson Quinn and United Farmers Coop form joint ventureDECATUR, ILL. — ADM-Benson Quinn and United Farmers Coop (U.F.C.) have formed United Grain Systems, L.L.C., a joint venture that will build and operate a grain elevator in Brownton, Minn. The new elevator will have a total storage capacity of 3.6 million bus, will be capable of loading 110-car shuttle trains, will feature four receiving pits with the capability to dump 80,000 bus of grain per hour, and will be located on a Twin Cities & Western rail line that has service from three railroads: Burlington Northern Santa Fe, Canadian Pacifi c

and Union Pacifi c, ADM said.In addition to the Brownton

elevator, the joint venture will operate fi ve existing U.F.C. elevators in Minnesota at Bird Island, Klossner, Lafayette, LeSueur (south elevator) and Winthrop. The elevators primarily handle corn and soybeans.

“ADM-Benson Quinn is pleased to join with United Farmers Coop to build a new shuttle loader elevator in Minnesota,” said Scott Nagel, president of ADM-Benson Quinn. “This project will expand crop origination and transportation

infrastructure in Minnesota, opening new markets for local farmers to sell their products at competitive prices.”

Jeff Nielsen, chief executive offi cer of U.F.C., said the joint venture is a further extension of U.F.C.’s mission “to create more and better business opportunities that add value to the grain produced by our members and patrons on their farms.”

He said the joint venture also illustrates the company’s belief that agricultural cooperatives sometimes must join together with large agriculture companies like ADM to create partnerships “that amass the necessary capital and expertise to create these new opportunities for our members and patrons.” MBN

Batory Foods acquires Atlanta-based ingredient distributor for $90 millionDES PLAINES, ILL. — Batory Foods Inc., a national distributor of food and fi ne ingredients, has acquired Atlanta-based ingredient broker/distributor Mac & Massey, L.L.C. Mac & Massey is the $90 million holding company for Massey Fair, Mac Source and Mulligan Sales. The acquisition marks the largest in Batory Foods’ 33-year history.

“By merging Mac & Massey with Batory Foods, we have signifi cantly expanded the sales and distribution coverage we can provide our suppliers,” said Ron Friedman, vice-president of Batory Foods Inc. “With added distribution centers around the United States, Batory becomes the only national ingredient distribution

company that focuses entirely on food and fi ne ingredients.”

Randy Cimorelli, president and chief executive offi cer of Mac & Massey, called the transaction a “plug and play” scenario.

“Both companies have been on a strategic path toward expansion and vertical integration,” Mr. Cimorelli said. “Joining forces allows us to leverage our individual strengths — as well as the cultural values we share. It’s cross-pollination at its best.”

The two companies’ management teams will be integrated over the next 12 months. Brown Gibbons Lang &

Company acted as the exclusive fi nancial adviser to Batory Foods in the transaction.

Founded in 1979, Batory Foods has a network of distribution facilities that serves more than 6,000 customers,

spanning the full food industry spectrum.

Established in 1929, Massey Fair is the largest food ingredient

broker in the United States, offering a broad line of food ingredients, including

sweeteners, starches, oils, cocoa, fruit concentrates and nut meats. In 2007, Mac & Massey, L.L.C. was formed as the holding company for Massey Fair and Mac Source. In 2010, after acquiring California-based Mulligan Sales, Mac & Massey, L.L.C. became a leading ingredient distributor providing services from coast to coast. MBN

Swany White Flour Mills destroyed by fi reFREEPORT, MINN. — Swany White Flour Mills, a small fl our mill in Freeport that has been owned by the Thelen family since 1903, was destroyed by fi re on Dec. 27. Owner Gary Thelen told the Minneapolis Star Tribune that there are no plans to rebuild the mill.

“If I was a younger man, I might consider it, but I’m 55 and I’m sorry to say that Swany White is going to be over with,” Mr. Thelen told the Star Tribune. “It’s just too expensive to rebuild. I’m pretty solid that I’m not going to wake up and reconsider it.”

The three-story wooden and brick structure, listed on the National Register of Historic Places, was built in 1897 and had been in the Thelen family since 1903. The facility had used the same milling equipment for white fl our since 1913, and

it had daily milling capacity of 12,000 lbs (120 cwts).

The mill produced a variety of items, including regular bleached and unbleached fl our, whole wheat fl our, wild rice fl our, buckwheat fl our, cracked wheat fl our, graham fl our, wheat bran, wheat germ, steel cut oats, corn meal, coarse oat bran, nine grain mix, regular and quick oatmeal, cream of rye, farina, as well as a variety of organic products.

Fire Chief Noah Van Beck of the Freeport Fire Department told the Star Tribune that the mill was operating Dec. 27 when fl ames were reported bursting from a top-level enclosure at 4:30 p.m. He said the fi re may be related to machinery used to mill fl our at the time, but cautioned that he was only speculating.

Mr. Thelen was in the mill at the time

of the fi re, but he said fl ames had so engulfed the upper fl oor that there was nothing he could do to save the structure, according to the Star Tribune. MBN

Rudolph Foods buys GasLamp PopcornLIMA, OHIO — Rudolph Foods has purchased GasLamp Popcorn. The sale includes the business and a production facility in California.

“Our company founders, John and Mary Rudolph, believed that if they made the best tasting pork rinds in the world they could build a company,” said Rich Rudolph, president. “Fifty-six years later we remain committed to that principle as we expand our product offerings. We found that GasLamp Popcorn shares the same beliefs.” MBN


People

Hal Reed promoted at Andersons to chief operating offi cer

Brian Sorenson to v.p. of manufacturing at Dakota Specialty Milling

Burton McGlynn, chairman of DecoPac, dies at 88

MAUMEE, OHIO — Harold M. Reed has been named chief operating offi cer of The Andersons, Inc., effective Jan. 1, 2012.

Mr. Reed has been with The Andersons since 1980, and most recently he has been president of the Grain & Ethanol Group since 2001. He also is the chairman of the National Grain & Feed Association.

He received a degree in accounting from Miami University in Ohio and a master’s degree in fi nance from the University of Toledo.

“The appointment of a chief operating offi cer helps ensure our organizational structure is strategically aligned to support our company’s substantial growth and achieve our future objectives of enhancing our service to

customers, strengthening our position in our markets and increasing the value of our shareholders’ investment,” said Mike Anderson, chief executive offi cer. “This addition enhances and solidifi es

our business operating focus as we grow in size and complexity.”

The Andersons also announced it will separate its Grain and Ethanol operations into individual business units.

With the transition, Dennis J. Addis has been named president of the Grain Group, Neill C. McKinstray has been

named president of the Ethanol Group, and William J. Wolf has been named president of the Plant Nutrients Group.

Mr. Addis joined The Andersons in 1971, and most recently he was president of the Plant Nutrients Group since 2001.

Mr. McKinstray has been with The Andersons since 1976, most recently as vice-president and general manager of the Ethanol Division since 2005. He currently is vice-chairman of the Renewable Fuels Association.

Mr. Wolf joined The Andersons in 1994, and most recently he was vice-president of supply and manufacturing for the Plant Nutrients Group since 2008.

Additionally, Anne G. Rex has been named vice-president and corporate controller for The Andersons. Ms. Rex has been with The Andersons since 1994, most recently as the assistant corporate controller since 2002. MBN

CAPTIVA, FLA. — Burton (Burt) J. McGlynn, chairman of DecoPac, Inc. and former chairman of McGlynn Bakeries, died Dec. 23 at his home in Captiva. He was 88 years old.

McGlynn Bakeries was founded in Minnesota in 1919 by Burt’s father, James T. McGlynn. Burt’s career began in the family business, working in his father’s bakery at age 15 as a cleaner. He later filled in for bakers when they were on vacations, drove delivery trucks on wholesale routes and waited on customers at the service counter. During World War II, Mr. McGlynn attended a school for cooks and bakers in New Orleans and served as a baker in the Navy, stationed in the Philippines.

After the war, Mr. McGlynn returned to Minnesota to help run his father’s growing bakery business, which, at

the time, had 11 downtown shops and several wholesale routes. He purchased the company from his father in 1956, and two years later he sold the business to Emrich Baking Co., where he stayed on as head of retail operations. After a few years with Emrich Baking, Mr. McGlynn saw an opportunity to open in-store bakeries in the new Target stores being developed by Dayton’s Department Stores in the Twin Cities. He resigned from Emrich, acquired his family’s trade name and was in business again with his first two bakeries in the Knollwood and Crystal Target stores. By 1972, there were over 35 Target Stores with in-store McGlynn’s Bakery departments.

The business changed and expanded greatly over the next few decades, entering the frozen bakery products

FARGO, N.D. — Brian K. Sorenson has been promoted to vice-president of manufacturing operations at Dakota Specialty Milling, Inc. Mr. Sorenson joined the company in April 2011 as director of milling operations after nine years with the Northern Crops Institute, the last three years as its director.

Mr. Sorenson has more than 20 years of experience in food product and process development, both in private industry and at the Northern Crops Institute in Fargo, N.D.

He received a master’s degree in cereal chemistry and technology from North Dakota State University.

“Brian’s experience at NCI, his master’s of science in cereal chemistry from North Dakota State University, and the knowledge of our business gained since April, make him uniquely qualifi ed to lead our Fargo operations,” said R.C. Axlund, president of Dakota Specialty Milling.

Mr. Sorenson was a graduate student at N.D.S.U. when his predecessor, Joel W. Dick, who retired in December, was the professor of cereal science and food technology. MBN

business. That business eventually was sold in 1992 to Pillsbury. Another frozen bakery products business, Concept 2 Bakers, was begun in 1995 and sold in 2004 to Ralcorp Holdings, Inc. Bakery plants were constructed in Eden Prairie, Chanhassen and Fridley, Minn., and at one time the company employed more than 2,000 people.

The remaining family business, DecoPac, Inc., is the largest marketer of cake decorations to professional cake decorators in the world. DecoPac, Inc. employs more than 500 people in the United States and England with annual revenues of more than $125 million.

Mr. McGlynn attended Dunwoody Institute and received an honorary doctorate of philanthropy degree from St. Mary’s University.

He is survived by four sons: Mike, Tim, Dan and Tom; a daughter, Molly; 16 grandchildren and 10 great-grandchildren. Mike McGlynn is chief executive officer of DecoPac. MBN


Washington

In wake of MF Global collapse, fi nancial safeguards discussed at ag hearingWASHINGTON — Gerald F. Corcoran, chairman and chief executive officer of R.J. O’Brien & Associates (R.J.O.), offered testimony on behalf of the Commodity Markets Council (C.M.C.) and R.J.O. at a U.S. House Committee on Agriculture hearing in December regarding an examination of the MF Global bankruptcy.

Headquartered in Chicago, R.J.O. is the nation’s oldest and largest independent futures brokerage and clearing firm. It also is a member of Washington-based C.M.C., a trade association that brings together commodity exchanges with their industry counterparts.

As part of his testimony, Mr. Corcoran emphasized that trust in the system has been “severely impaired” and that it is in the best interest of the industry and its customers for quick, but thoughtful action to restore that confidence.

“…while the investigation continues into the causes of the MF Global bankruptcy and the whereabouts of segregated assets, I am certain, very certain of this: we cannot let this event destroy the long-term trust and confidence upon which market participants rely,” he said. “This is an industry that is vitally important not only to the interests of the agricultural community, but to the world.”

Improving the management processSpeaking on behalf of R.J.O. and

C.M.C., Mr. Corcoran provided suggestions on how best to improve the industry’s customer collateral management process by ensuring the adequate maintenance of customer collateral levels.

“While this point does not directly relate to the MF Global situation, it is worth considering in the context of the financial stability of F.C.M.s (future commission merchant),” he said. “Significant losses by a customer of an F.C.M. can also result in catastrophic losses to the F.C.M. itself. … An idea we offer for deliberation is to require accounts that exceed certain margin thresholds on an intra-day basis to fund their account through direct wire transfer, thereby ensuring intra-day margin calls are met.”

Mr. Corcoran suggested ways to improve the F.C.M.’s net capital treatment, including evaluating the “double counting” of funds to satisfy capital requirements by entities dually registered as F.C.M.s and broker-dealers.

Better monitoring requirements neededIn his testimony, Mr. Corcoran

urged regulators to look at enhancing monitoring and reporting requirements with respect to F.C.M. customer segregation practices. He

noted F.C.M.s already are required to prepare customer segregation reports on a daily basis but do not share them with regulators that often. To this end, he suggested regulatory agencies require the submission of these daily reports to the Commodity Futures Trading Commission, the National Futures Association or other Designated Self-Regulatory Organization.

During the presentation, Mr. Corcoran put forth a proposal on behalf of R.J.O. in which all F.C.M.s would adopt the same “agency” only model as R.J.O.

“Although proprietary trading by F.C.M.s may contribute to the liquidity of the futures markets, it should not be at the expense of customer protection,” he said. “Therefore, we at R.J.O. suggest that those F.C.M.s who want to conduct proprietary trading utilize other F.C.M.s or create a separately capitalized special purpose F.C.M. for this activity. Doing so will require the same oversight afforded to customer accounts, including proper margining at all times. Simply put, an F.C.M. that is restricted from trading for its own account would not place its customers at risk due to losses from proprietary trading.”

Providing a home for accountsLooking specifically at the impact

of MF Global’s bankruptcy filing and default on R.J.O., Mr. Corcoran said the firm worked closely with CME Group and other domestic


Washington

exchanges to provide a home for a substantial number of MF Global accounts and brokers.

“In a matter of a few days, we assumed a bulk transfer of 20,000 accounts without incident, and our shareholders provided an infusion of approximately $50 million of capital to ensure that we would be sufficiently capitalized for this

unexpected event,” he explained. “At the same time, we worked very hard to ensure that our long-standing clients continued to receive the outstanding service to which they are accustomed. Our management and staff worked literally around the clock for 25 days straight in a massive effort that involved coordination of systems, processes

and people, and sometimes working with incomplete data and rapidly changing circumstances.

“We fully recognized that the clients of MF Global had just experienced a traumatic event, and we did everything we could to provide vehicles for addressing their questions and providing reassurances as soon as we had answers.” MBN

A.B.A. voices disappointment over new Hours of Service ruleWASHINGTON — The American Bakers Association said it was disappointed in the final Hours of Service (H.O.S.) rule announced Dec. 22 by the Federal Motor Carrier Safety Administration (F.M.C.S.A.).

“There is no safety benefit or documented rationale to change the existing rules,” said Robb MacKie, president and chief executive officer

of the A.B.A. “This rule will require significant changes to current baking industry distribution systems that will affect employee work hours and increase the cost of transporting and delivering fresh bakery products. With high unemployment and elevated food inflation, now is the worst time to be pushing regulation for regulation’s sake.”

The proposed regulations were published in December 2010, and since that time the A.B.A. has been communicating the baking industry’s concerns with the rules. On Nov. 30, 2011, Mr. MacKie testified at a hearing to examine the impact of the H.O.S. rules held by the Subcommittee on Regulatory Affairs, Stimulus Oversight and Government Spending of the House Committee on Oversight and Government Reform.

Fourth major rewrite“This marks the fourth major

rewrite of these rules by F.M.C.S.A. in 12 years,” Mr. MacKie said. “The

current Hours of Service regulations have been effective in improving safety. The safety performance for trucks has improved at unprecedented rates. Fatal accidents and injuries involving large trucks have declined more than one-third to historically low levels.

“Given these facts, we fi nd it diffi cult to understand the rationale

for additional regulation, especially one that even F.M.C.S.A. recognized would disproportionately negatively impact the short-haul segment of the trucking industry of which the baking industry is a part.”

As part of the H.O.S. rulemaking process, the F.M.C.S.A. held six public listening sessions across the United States and encouraged safety advocates, drivers, truck company owners, law enforcement and the public to share their input on the requirements.

“Trucking is a difficult job, and a big rig can be deadly when a driver is tired and overworked,” said Transportation Secretary Ray LaHood. “This final rule will help prevent fatigue-related truck crashes and save lives. Truck drivers deserve a work environment that allows them to perform their jobs safely.”

Drivers limited to 70 hoursThe F.M.C.S.A.’s new H.O.S.

final rule reduces by 12 hours the

maximum number of hours a truck driver may work within a week. Under the old rule, truck drivers could work on average up to 82 hours within a seven-day period. The new H.O.S. final rule limits a driver’s work week to 70 hours.

In addition, truck drivers may not drive after working eight hours without first taking a break of at least 30 minutes. Drivers may take the 30-minute break whenever they need rest during the eight-hour window.

The final rule retains the current 11-hour daily driving limit. The F.M.C.S.A. will continue to conduct data analysis and research to further examine any risks associated with the 11 hours of driving time.

According to the D.O.T., the rule requires truck drivers who maximize their weekly work hours to take at least two nights’ rest when their 24-hour body clock demands sleep the most — from 1:00 a.m. to 5:00 a.m. This rest requirement is part of the rule’s “34-hour restart” provision that allows drivers to restart the clock on their work week by taking at least 34 consecutive hours off-duty. The final rule allows drivers to use the restart provision only once during a seven-day period.

Potential for heavy fi nesThe F.M.C.S.A. said companies

and drivers that commit egregious violations of the rule may face the maximum penalties for each offense. Trucking companies that allow drivers to exceed the 11-hour driving limit by 3 or more hours may be fined $11,000 per offense, and the drivers themselves may face civil penalties of up to $2,750 for each offense.

Commercial truck drivers and companies must comply with the H.O.S. fi nal rule by July 1, 2013. The rule has been sent to the Federal Register and is available on the F.M.C.S.A.’s web site at www.fmcsa.dot.gov/HOSFinalRule. MBN

‘We fi nd it diffi cult to understand the rationale for additional regulation, especially one that even F.M.C.S.A. recognized would disproportionately negatively impact the short-haul segment of the trucking industry of which the baking industry is a part.’

— Robb MacKie, American Bakers Association

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Data

Regional milling operating rates mostly hold steady in NAMA reportWASHINGTON — Despite a signifi cant shuffl ing by the North American Millers’ Association in the confi guration of regions in recently released fl our milling data, operating rate rankings mostly, but not entirely,

were consistent with relative performances a year ago, when the information was gathered and disseminated by the Census Bureau.

As was the case a year ago, mills in the Central states operated at the

highest rate in July-September 2011, while the hard winter states and the South were near or at the bottom. The only major swing was in the West, where mills had the second highest rate of grind in 2010 and ranked dead last this past quarter.

In undertaking to publish quarterly statistics on wheat fl our milling production in the United States, the North American Millers’ Association has selected state groupings different from those previously included in the now-discontinued Census Bureau reports. NAMA is not reporting individual state output fi gures, and the state groupings are different from what the Census adopted.

While the Census Bureau several years ago adopted a practice of grouping two or three states into single units, NAMA took this approach a step further. The Census move was made to remain compliant with reporting rules aimed at protecting individual mills or milling companies from disclosure of private information. The NAMA move, further combining states into fewer groupings, was made, on advice of counsel, to add an additional layer of protection from disclosure.

The resultant report features seven regional/state groupings, versus the 21 in the fi nal Census report. For example, Region 1 of the NAMA report was created by combining fi ve different Census states/groupings: 1) Alabama and Louisiana; 2) Georgia, Florida and South Carolina; 3) North Carolina; 4) Tennessee and Kentucky; and 5) Maryland and Virginia (see related table on this Page ).

NAMA’s breakdown of regions closely parallels the prior effort by Milling & Baking News to present geographical data on fl our milling production and rate of grind. Where appropriate the same names now are being used by Milling & Baking News. Among changes in the new data, the hard winter belt no longer includes Nebraska and Iowa, while the Central states now omits Missouri. In the new NAMA breakdown Nebraska and Iowa as well as Missouri have been combined with the all other states category — Region 7.

Region 7, which in recent years was made as small as possible by the Census, is now NAMA’s largest fl our producer with third-quarter output totaling 15,778,000 cwts, which accounts for 15.7% of the total U.S. aggregate.

Using the prior Census data

Flour production NAMA U.S. Census U.S. CensusRegion 1: July-Sept. 2011 April-June 2011 July-Sept. 2010South: Alabama, Florida, Georgia, Kentucky, Louisiana, Maryland, North Carolina, South Carolina, Tennessee, Virginia

Output 15,340 16,787 17,300Rate of grind 89.7% 85.0% 87.6%Capacity 222,000 256,609 256,609Share 15.3% 16.7% 17.2% Region 2:Eastern: New Jersey, New York, Pennsylvania

Output 13,276 12,705 13,730Rate of grind 91.8% 86.1% 93.1%Capacity 187,750 191,540 191,540Share 13.2% 12.6% 13.7% Region 3:Western: California, Idaho, Montana, Oregon, Utah, Washington Output 13,823 15,170 16,611Rate of grind 84.9% 87.7% 97.1%Capacity 211,550 224,770 222,270Share 13.7% 15.1% 16.5% Region 4:Central: Illinois, Indiana, Michigan, Ohio, Wisconsin

Output 14,613 15,604 16,598Rate of grind 92.8% 90.7% 97.6%Capacity 204,600 223,500 220,900Share 14.5% 15.5% 16.5% Region 5: Hard winter: Colorado, Kansas, Oklahoma, Texas

Output 14,815 15,220 16,969Rate of grind 88.7% 79.0% 85.2%Capacity 216,900 250,233 258,733Share 14.7% 15.1% 16.9% Region 6: Spring: Minnesota, North Dakota Output 12,914 12,396 12,807 Rate of grind 90.2% 83.5% 86.3%Capacity 185,950 192,690 192,690Share 12.8% 12.3% 12.7% Region 7: Remainder: Iowa, Missouri, Nebraska, All Other States

Output 15,778 12,431 14,578Rate of grind 92.8% 80.9% 91.5%Capacity 220,720 199,646 206,830Share 15.7% 12.4% 14.5% Total

Output 100,559 100,313 108,593Rate of grind 90.1% 84.7% 91.0%Capacity 1,449,470 1,538,988 1,549,572Share 100.0% 100.0% 100.0%

in cwts

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Data

it is possible to make comparisons with earlier quarters, but differences in how NAMA and the Census compiled data must be considered. In particular, the Census sought to gather data from the entire U.S. milling industry while the NAMA fi gures are specifi cally obtained from the 24 leading milling companies, accounting for roughly 95% of U.S. milling capacity. The methodology differences make year-to-year comparisons approximate at best.

After the Census halted its reporting with the second quarter of this year NAMA retained Veris Consulting, Inc. to survey the 24 largest U.S. wheat, durum and rye milling companies on their flour production in the

third quarter of 2011 (July, August, September). Data were voluntarily reported to Veris, whereas the prior Census numbers reflected a govern-mental mandate.

The capacity share of national capacity of the 24 reporting companies is given as 95.4%. (This was measured against industry capacity in the Grain and Milling Annual 2011.) All companies selected by NAMA responded to the survey. Therefore, total volume presented is less than 100%. No estimates were made by NAMA to bring the volume up to 100 %.

The Census Bureau would not disclose to NAMA the name or number of respondents to their surveys. The Census did indicate in footnotes accompanying past reports that some numbers were estimated. Thus, it is likely, if not a certainty, that the new NAMA data are not comparable with historical reports.

Third-quarter 2011 wheat flour production as reported by Veris on behalf of NAMA was 100,561,000 cwts (see Milling & Baking News of Dec. 27, 2011, Page 18). Milling & Baking News in its initial coverage divided the NAMA number by “.954” to obtain a quarterly national estimate and then compared it with existing Census data.

Because the 24 companies account for 95.4% of U.S. daily milling capacity as shown in the Grain & Milling Annual and because the missing overall capacity is small, Milling & Baking News in its initial coverage did interpolate the national flour production to 105,410,000 cwts. That was down 2.9% from the Census production of 108,593,000 cwts in the third quarter of 2010.

Similar comparisons may be made on a regional basis. Analysis by the editors at Milling & Baking News has raised questions about the comparability of production and capacity fi gures, on a region by region basis. Comparing capacities of the individual NAMA regions in 2011 with the combined capacities of the Census groupings making up the NAMA regions generates signifi cant changes meriting further exploration. For example, the NAMA fi gures indicate Region 1 has combined capacity of 222,000 cwts of fl our per day, versus capacity estimated a quarter earlier by the Census of 256,609. The discrepancy appears quite wide, even adjusting for the capacity information (from smaller milling companies) not gathered by NAMA. MBN

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Stock Market Review

Ending at record high, grain-based shares beat broader market in ’11shares overall did not fare as well in 2011 as stocks of other consumer products companies.

Still, the 7.5% gain bested most of the other individual sectors of the S.&P.500, including energy, up 2.8%; materials, down 11.6%; industrials, down 2.9%; consumer discretionary, up 4.4%; fi nancials, down 18.4%; information technology, up 1.3%; and telecom services, up 0.8%. Sectors that outperformed grain-based foods shares were health care, up 10.2%, and utilities, up 14.8%.

Back to the plus side, 14 of the 24 companies in the Grain-Based Foods Share Index ended the year with a gain, with 10 losing ground.

Two companies, both baking, had stock splits in 2011. Flowers Foods, Inc., Thomasville, Ga., issued a 3-for-2 stock dividend in June, while Grupo Bimbo S.A.B. de C.V. (which is not included in the index) shares split 4-for-1 in April.

One company was added to the grain-based index — Dunkin’ Brands Group, Inc., Canton, Mass., which rose 29% following a July 26 initial public offering at $19 per share. Dunkin’ shares quickly surged as high as $31.94 per share, but have been gradually sliding since then. In November, additional shares were sold in a secondary offering from existing investors (not the company) at $25.62 per share.

One company, Tasty Baking Co., was deleted from the Grain-Based Foods Share Index in 2011, after its acquisition by Flowers Foods, Inc. Tasty had been included since the index and its predecessor indices were created by Milling & Baking News several decades ago.

The top performer in the index in 2011 was a familiar name — Panera Bread Co., St. Louis, up 40%. The sharp gain followed a 51% advance in 2010, when the company ranked fourth. Gains were 28% in 2009 and 46% in

2008. Over the fi rst nine months of 2011, the St. Louis-based company enjoyed a 19% gain in total revenues and a 34% jump in earnings per share. Growth in the number of bakery cafes in recent years has been moderate. As of September 2011, there were 1,504 Panera bakery cafes in operation, up from 1,026 in December 2006.

Ranking second in share price performance in the index was The Hain Celestial Group Inc., up 35% in 2011. The sharp advance followed a 59% gain in 2010, when Melville, N.Y.-based Hain again was the second best performer. By contrast, Hain was the worst performing stock in the Grain-Based Foods Share Index in 2009.

Hain made four acquisitions last year. In February, the company said it had acquired two companies in Europe — Danival SAS, a manufacturer of certifi ed organic food products with facilities in France, and GG UniqueFiber AS, a manufacturer of all natural high fi ber crackers in Norway. In October, Hain announced the acquisition of the Europe’s Best brand of all natural, frozen fruit and vegetable products in Canada. Later

that same month, Hain bought Daniels Group in the United Kingdom, a maker of chilled foods.

The company attributed strong fi nancial results in 2011 to improving consumption trends in the natural and organic sectors served by Hain as well as better cost controls and inventory management and cash conversion.

The share price of Ralcorp Holdings, Inc., St. Louis, moved wildly through 2011, mirroring major developments at the company. That the company would be the third best performer in the Grain-Based Foods Share Index, with a 32% gain, seemed unlikely at various points during the year. Shares were drifting along through the fi rst four months of 2011 within a range that had prevailed much of the previous fi ve years. Everything changed May 4 when Omaha-based ConAgra Foods, Inc. offered to acquire Ralcorp in a $4.9 billion transaction. Ralcorp shares surged to an all-time high, but share prices tumbled when the company repeatedly, and ultimately with success, spurned the ConAgra bid. During the summer, Ralcorpmanagement announced plans to spin off the Post cereal


Year-end close for Grain-Based Foods Share Index with change from previous year, 2000-2011

Point Per centYear Close change change2011 12154.32 846 7.5%2010 11307.96 958 9.3%2009 10350.06 1,203 13.2%2008 9146.77 -2,511 -21.5%2007 11657.58 115 1.0%2006 11542.79 1,856 19.2%2005 9687.18 -1165 -10.7%2004 10852.64 1,390 14.7%2003 9,462.92 -487 -4.9%2002 9,918.02 287 3.0%2001 9,662.41 336 3.6%2000 9,326.84 2,444 35.5%

Grain-Based Foods Share Index performance in 2011

High Low Close Change % changeADM 38.02 23.69 28.60 -$1.48 -4.9%Bridgford 13.92 6.80 9.60 -$4.65 -32.6%Bunge 76.13 54.03 57.20 -$8.32 -12.7%Campbell Soup 35.66 29.69 33.24 -$1.51 -4.3%ConAgra 26.72 22.20 26.40 $3.82 16.9%Corn Products 59.50 36.65 52.59 $6.59 14.3%Dunkin’ Brands 31.94 23.24 24.98 NA NAFlowers Foods (s) 23.13 15.95 18.98 -$0.02 5.8%General Mills 40.80 34.54 40.41 $22.47 13.5%Hain Celestial 38.47 25.59 36.66 $1.07 35.5%J & J Snack 55.58 41.91 53.28 $26.22 8.1%Kellogg 57.70 48.10 50.57 $1.30 -1.0%Kraft Foods 38.05 30.21 37.36 -$13.72 18.6%Krispy Kreme 10.08 5.10 6.54 -$24.97 -6.3%Lance 24.09 17.06 22.50 $15.52 -4.0%MGP Ingredients 10.89 4.25 5.04 -$18.40 -54.6%Panera Bread Co. 145.46 94.62 141.45 $130.34 39.8%PepsiCo 71.89 58.50 66.35 -$34.86 1.6%Ralcorp Holdings 91.35 59.23 85.50 $20.17 31.5%J.M. Smucker 80.25 61.16 78.17 $13.16 19.1%Sara Lee 20.26 15.66 18.92 -$46.73 8.1%Seaboard 2705.00 1650.00 2036.00 $45.00 2.3%

s = stock split during year


Stock Market Review

business the company had acquired only three years earlier. Additionally, Ralcorp announced it had reached an agreement to acquire the private label refrigerated dough business of Downers Grove, Ill.-based Sara Lee Corp. for $545 million. Shares recovered gradually but steadily from the August lows, gaining 24% by the end of 2011, at a closing price just 6% beneath the all-time high.

With a gain of 19% in 2011, the share price of Kraft Foods, Inc., Northfi eld, Ill., advanced solidly for a second consecutive year, following a 16% gain in 2010. The back-to-back gains mark the most impressive share price performance since the company’s initial public offering in 2001. Adjusted for dividends, the Kraft share price has climbed 48% since the end of June 2006, when Irene Rosenfeld returned to the company as chief executive offi cer. The S.&P.500 is up 10% over this same period of time.

Ms. Rosenfeld’s imprint on the company and the entire food industry has become dramatically more evident over the past two years. In 2010, Kraft completed a $20 billion acquisition of Cadbury P.L.C., sharply expanding Kraft’s exposure to the snack sector and international markets. That mega-takeover receded from the spotlight in 2011 with Kraft’s announcement of plans to split into two publicly-traded companies, with one focusing on its global snacks business and the other on its high-margin

North American grocery business. Late in the year Kraft announced

leadership of the future companies, expected to separate by the end of 2012. Ms. Rosenfeld will be chairman and c.e.o. of the $31 billion global snacks company. W. Anthony Vernon, who is currently the executive vice-president and president of Kraft Foods North America, will be c.e.o. of the $17 billion North American grocery company.

Even as the company advanced in these transformational moves, Kraft’s operating results were solid in 2011. In the third quarter ended Sept. 30, 2011, net income climbed to $922 million, up 22% from the same period in 2010. Sales rose 12% in total with organic net revenues up 8%.

Also ranking fourth in share price performance in 2011 was The J.M.

Smucker Co., Orrville, Ohio. The 19% share price advance followed a gain of only 6% the year before. Grain-based foods did not fi gure in Smucker’s merger and acquisition activities last year. In May, the company acquired a number of Hispanic coffee brands from Rowland Coffee Roasters, and in November the company bought a majority stake in the Sara Lee Corp. North American food service coffee business. In the most recent quarter (ended Oct. 31), U.S. Retail Coffee was Smucker’s largest division, with $617.5 million in sales, versus $615.2 million for U.S. Retail Consumer Foods. A year earlier, the latter category was 14% larger than the coffee business.

While share prices of ConAgra Foods, Inc. rose 17% in 2011, the company’s year certainly did not un-fold as planned. Three acquisitions were

Weekly close for Grain-Based Foods Share Index, Dow JonesIndustrial Average and NASDAQ Composite in 2011

3-Jan-11 11674.76 2703.17 11388.0210-Jan-11 11787.38 2755.3 11530.0718-Jan-11 11871.84 2689.54 11469.4924-Jan-11 11823.7 2686.89 11291.531-Jan-11 12092.15 2769.3 11266.05

7-Feb-11 12273.26 2809.44 11270.2714-Feb-11 12391.25 2833.95 11510.6722-Feb-11 12130.45 2781.05 11397.8328-Feb-11 12169.88 2784.67 11523.69

7-Mar-11 12044.4 2715.61 11486.7814-Mar-11 11858.52 2643.67 11241.7221-Mar-11 12220.59 2743.06 11504.1628-Mar-11 12376.72 2789.6 11570.01

4-Apr-11 12380.05 2780.42 11709.3611-Apr-11 12341.83 2764.65 11860.2418-Apr-11 12505.99 2820.16 12004.3325-Apr-11 12810.54 2873.54 12241.91

Grain-Based Dow Foods Jones NASDAQ

2-May-11 12638.74 2827.56 12149.399-May-11 12595.75 2828.47 12408.5816-May-11 12512.04 2803.32 12504.523-May-11 12441.58 2796.86 12345.931-May-11 12151.26 2732.78 12205.37

6-Jun-11 11951.91 2643.73 12119.2713-Jun-11 12004.36 2616.48 12019.120-Jun-11 11934.58 2652.89 11950.4227-Jun-11 12582.77 2816.03 12267.16

5-Jul-11 12657.2 2859.81 12390.0311-Jul-11 12479.73 2789.8 12185.1918-Jul-11 12681.16 2858.83 12195.5925-Jul-11 12143.24 2756.38 11822.16

1-Aug-11 11444.61 2532.41 11378.138-Aug-11 11269.02 2507.98 11343.5615-Aug-11 10817.65 2341.84 11338.3822-Aug-11 11284.54 2479.85 1132829-Aug-11 11240.26 2480.33 11726.86

6-Sep-11 10992.13 2467.99 11534.5912-Sep-11 11509.09 2622.31 11626.0719-Sep-11 10771.48 2483.23 11227.0226-Sep-11 10913.38 2415.4 11461.36

3-Oct-11 11103.12 2479.35 11239.5810-Oct-11 11644.49 2667.85 11586.0217-Oct-11 11808.79 2637.46 11601.7424-Oct-11 12231.11 2737.15 11895.4631-Oct-11 11983.24 2686.15 11811.61

7-Nov-11 12153.68 2678.75 11726.914-Nov-11 11796.16 2572.5 11723.921-Nov-11 11231.78 2441.51 11460.6828-Nov-11 12019.42 2626.93 11952.31

5-Dec-11 12184.26 2646.85 11895.9512-Dec-11 11866.39 2555.33 11814.1619-Dec-11 12294 2618.64 12055.827-Dec-11 12217.56 2605.15 12154.32



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Stock Market Review

completed during the year, these deals were small in comparison to “the big fi sh that got away.” In May, ConAgra announced plans to acquire Ralcorp for $4.9 billion. The takeover effort continued through the balance of the spring and most of the summer but was consistently rebuffed by the Ralcorp board. During the year, ConAgra bought the Marie Callender’s brand trademarks from Marie Callender Pie Shops, Inc.; acquired National Pretzel Co., based in Lancaster, Pa.; and became the majority owner of Indian food company Agro Tech Foods Ltd.

While its merger/acquisition activities did not proceed as planned, ConAgra saw marked success in its fi nancial results. Adjusted for special items, the company achieved strong profi t growth in its most recent quarter (period ended Nov. 27), particularly in the company’s potato business, as the engine driving results. Gary Rodkin, the c.e.o. at ConAgra, expressed optimism over trends in the company’s larger Consumer

Foods segment as well.Shares of Corn Prod-

ucts International, Inc., Westchester, Ill., and General Mills, Inc., Minneapolis, each gain-ed 14% in 2011. The integration of National Starch, acquired in October 2010 for $1.3 billion, was a major area of focus for Corn Products last year. Separate from the acquisition, Corn Products enjoyed strong earnings growth, up 48% year-to-date (through

Sept. 30), adjusted for special items.During the year General Mills

acquired a 51% controlling interest in Yoplait S.A.S. and a 50% interest in a related entity that holds the worldwide Yoplait brands for approximately $810 million.

The 6% decline in the share price of Krispy Kreme Doughnuts, Inc., Winston-Salem, N.C., showed that strong earnings alone do not guarantee like share price trends, at least in the short term. Krispy Kreme was the top performing company in the index in 2010, surging 137%. In the company’s 2011 third quarter, Krispy Kreme earnings were up 97% from the same period a year earlier on 9% growth in revenues. Over the fi rst nine months of the year, Krispy Kreme earnings were up 151%. The strong results prompted the company to raise its fi scal 2012 outlook for operating income, exclusive of special charges, to between $24 million and $26 million, up from $22 million and $24 million

projected during the second quarter. Shares hit a 52-week high not long after announcing strong results in the summer, but then gave ground steadily during the balance of the year, even in the absence of major fi nancial announcements.

While achieving a more than respectable 6% advance in its share price, the year 2011 was anything but an easy one for Flowers Foods, Inc. In April, Flowers announced plans to acquire Tasty Baking Co. for $165 million, and the transaction was completed a month later. Throughout the year, though, Flowers share price and fi nancial results appeared heavily infl uenced by the extremely challenging competitive environment prevailing in the fresh baking industry as well as by margin pressure resulting from strong ingredient markets. Uncertainty about ingredient markets and the baking industry outlook prompted the company late in the year to defer issuing earnings guidance. Looking forward, the company was hopeful about prospects for expansion in 2012, both because of the Tasty acquisition and other forces.

“We think 2012 will be a good environment for future acquisitions as independent bakers, in particular, continue to look at new investments, or succession planning or look at tax rates which they might think will change,” George E. Deese, Flowers chairman and chief executive offi cer, said late in the year.

Of the 10 companies that sustained share price losses in 2011, three were processing companies — MGP Ingredients, Inc.; Bunge Ltd.; and Archer Daniels Midland Co. MBN

Shaded companies not included in index

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Grain-based Foods Share Index companies:stock price change in 2011

Grain-based Foods Share Index percentage change

9.3% 7.5%

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201120102009200820072006200520042003200220012000

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Stock Market Review

Foreign grain-based foods performance slightly weaker in 2011Although share price performance

for grain-based foods companies outside of North America was

mostly mixed during 2011, performance has been worsening steadily over the past three years. Of the 38 companies tracked by Milling & Baking News, 17 recorded year-over-year increases in share price while 21 posted decreases. By comparison, 16 companies posted year-over-year declines in 2010 and only 7 companies posted declines in 2009.

On the London Stock Exchange, Associated British Foods fi nished the year at 1107p, down 4% from 1156p in 2010. Operating profi t during the year rose 3% to £842 million, and for the fi rst time total sales exceeded £11 billion. The company achieved revenue growth in each of its business segments, including a record year for AB Agri.

Carr’s Milling Industries P.L.C. closed at 790p, up 30% from 609p in 2010. Chairman Richard Inglewood said the company’s food business remains focused on cost control to mitigate the negative impact on sales growth and margins from the continued excess capacity in the fl our milling industry.

Tate & Lyle P.L.C., the global sweetener company, had a 52-week low of 449.5p, but ultimately ended the year up 36%, closing at 708.5p. During the year, Tate & Lyle restarted production of Splenda sucralose at a facility in McIntosh, Ala., and signed an exclusive, worldwide license agreement to commercialize Soda-Lo, a salt reduction technology from Eminate Ltd., a subsidiary of The University of Nottingham in the United Kingdom. Soda-Lo enables salt reduction of up to 30% in such applications as bread, pizza bases, pastries, savory pie fi llings, cheese and baked snacks, according to Tate & Lyle.

Premier Foods, the U.K.’s largest food producer, fi nished

2011 at 5.81p, down 70% from 19.28p, in 2010. In December, Premier Foods signed an agreement with The Boyne Valley Group to sell its four Irish Brands comprising Chivers, Gateaux, McDonnells and the Erin license (“the Irish Brands”) for a gross cash consideration of €41.4 million. The agreement represents a further step in the group’s strategy to focus investment behind its core brands

and follows the announcement on Dec. 8 of its intention to sell its chilled food division, Brookes Avana, to the 2 Sisters Food Group for €30 million.

Northern Foods P.L.C. was delisted from the London Stock Exchange in 2011 after the company was acquired by Boparan Holdings. The acquisition of Northern Foods increased Boparan’s sales to more than £2 billion, and has transformed the group into one of

the biggest players within the British convenience foods market.

Finsbury Food Group P.L.C., a U.K.-based maker of cake, bread and gluten-free bakery goods, fi nished 2011 at 27.45p, up 17% from 23.50p in 2010.

Greggs P.L.C., an operator of retail bakery shops and cafes in the United Kingdom, fi nished 2011 at 506p, up 9% from 465p in 2010. During 2011, the company’s new £4.5 million specialist confectionery bak-ery in Penrith became fully operational, while its £16.5 million bakery in Newcastle upon Tyne commenced production.

All three of the leading U.K. retail chains sustained share price declines in the past year. Tesco, the leader in U.K. food retailing, closed at 404p, down from 425p a year earlier. Marks & Spencer, meanwhile, finished the year at 311p, down 16% from 369p. Sainsbury, P.L.C., which posted year-over-year gains between 2010 and 2009, finished the year at 302.9p, down 16% from 376.3p in 2010.

In Ireland, Greencore Group P.L.C., a European maker of convenience food and malt products, fi nished at €0.63, down 50% from the 2010 close of €1.27. Greencore substantially strengthened its position in chilled convenience foods in its chosen markets of the United Kingdom and the United States during the fi nancial year through the

Foreign stocks, 2011 share price performance

Marks & Spencer United Kingdom -16%Premier Foods United Kingdom -70%Gregg’s P.L.C. United Kingdom 9%Tesco United Kingdom -5%Associated British Foods United Kingdom -4%Tate & Lyle P.L.C. United Kingdom 36%Carr’s Milling United Kingdom 30%Sainsbury P.L.C. United Kingdom -16%Finsbury Food Group P.L.C. United Kingdom 17%Kerry Group Ireland 13%Greencore Group Ireland -50%Origin Enterprises Ireland -5%Agrium Inc. Canada -27%GrainCorp Ltd. Australia 19%Goodman Fielder Ltd. Australia -67%First Baking Co. Japan -12%Nisshin Seifun Japan -8%Nissin Foods Holdings Japan 6%Nippon Flour Mills Co. Ltd. Japan -13%Yamazaki Baking Japan 5%Indofood Indonesia -4%Flour Mills of Nigeria Africa -3%Danone France 5%Ahold n.v. The Netherlands 5%CSM The Netherlands -53%DSM The Netherlands -16%Unilever The Netherlands 12%Nestle S.A. Switzerland -8%Aryzta AG Switzerland 5%Alexandria Flour Egypt -33%East Delta Flour Co. Egypt 11%Middle Egypt Flour Egypt -33%Middle and West Delta Flour Co. Egypt 13%North Cairo Flour Egypt -11%South Cairo & Giza Flour Mills Egypt -28%Egyptian Starch Egypt -53%Upper Egypt Flour Egypt 0%Ebro Puleva S.A. Spain -7%Tiger Brands Ltd. South Africa 35%Quinenco Chile -21%Molinos Rio Plata Argentina 8%

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acquisitions of Uniq P.L.C. and On a Roll Sales.

Kerry Group fi nished the year at €28.28, up 13% from €24.97 at the end of 2010. The company in early December completed the acquisition of Cargill’s global fl avors business. Cargill Flavor Systems, with annual revenues of approximately $200 million, was acquired for a total consideration of $230 million.

Origin Enterprises ended 2011 at €3.05, down 5% from €3.20 in 2010 and compared with €2.13 at the end of 2009. Origin Enterprises P.L.C. is a food and agribusiness group based in Dublin.

In Australia, GrainCorp Ltd. closed the year at A$7.85, up 19% from A$6.60 at the end of 2010, while Goodman Fielder Ltd. fi nished 2011 at A$0.44, down 67% from A$1.345 in 2010. In July, Chris Delaney took over as chief executive offi cer at Goodman Fielder Ltd. Mr. Delaney most recently was president of Asia Pacifi c for the Campbell Soup Co. since 2009, and earlier he was vice-president of sales and president of emerging markets.

Before joining Campbell he held various management roles at Procter & Gamble Co. in the United States, the Middle East, Ukraine, Belgium and Poland.

Agrium Inc., which acquired AWB Ltd. in December 2010, closed 2011 at $67.11, down 27% from $91.75 in 2010.

In France, Groupe Danone S.A., the country’s largest food and beverage company, closed 2011 at €49.24, up 5% from €47.02 in 2010. The Dannon Company, Inc., a business unit of Groupe Danone, Paris, opened a $9 million Discovery & Innovation Center in White Plains, N.Y. Located within the company’s headquarters, the center centralizes Dannon’s R.&D. team.

In The Netherlands, Unilever, the Anglo-Dutch food and personal products business, closed 2011 at €26.57, up 12% from €23.80 per share in 2010. The company late in 2011 completed the sale of its Mrs. Dash, Molly McButter, Sugar Twin, Baker’s Joy, Static Guard and Kleen Guard brands to B&G Foods, Inc. for $325 million in cash.

Ahold, the Dutch-based company with global food retailing and food service operations, fi nished the year at €10.36, up 5% from €9.88, while DSM, the Dutch chemical company with food ingredient interests, fell 16% for the year, closing at €35.85. CSM, the Dutch company with a strong presence in baking ingredients in North America and in Europe, fi nished sharply lower, ending down 53% at €12.32. CSM in May opened a new bakery ingredients facility in Shanghai, China. The facility is expected to serve the markets in China, Hong Kong and Taiwan.

In Switzerland, Nestle S.A., the world’s largest food company, closed at 54 Swiss francs, down 8% from 58.82 Swiss francs in 2010. Nestle was active on the investment front, including spending €45 million in a Wagner factory in Otzenhausen, Germany, that will strengthen the frozen pizza business of Nestle S.A.; entering an agreement to acquire 60% of Hsu Fu Chi, a manufacturer and distributor of confectionery products in China; and investing $13.6 million to produce different varieties of chocolate in Spain.

Aryzta A.G. closed 2011 at 45.40 Swiss francs, up 5% from 43.15 Swiss francs in 2010. Aryzta continued to benefi t from the 2010 acquisitions of Fresh Start Bakeries, Great Kitchens and Maidstone Bakeries.

Danisco A/S in Denmark was removed from the Copenhagen Stock Exchange after the company was acquired by E.I. du Pont de Nemours & Co. for $6.3 billion in June 2011.

Share price changes in Japan were mostly moderate. Nisshin Seifun, the Japanese holding company that includes Nisshin Milling, Japan’s largest fl our miller, closed at Y933, down 8% from Y1010 a year earlier, while Nippon Flour Mills Co. Ltd. fell 13% for the year, closing at Y340, and Nissin Foods Holdings, a leading manufacturer of instant noodles, rose 6%, closing at Y3015.

Baking leaders Yamazaki Baking and First Baking were a mixed bag in 2011. Yamazaki closed at Y1011, up 5% from Y965 in 2010; First Baking, meanwhile, fi nished at Y83, down 12% from Y94 in 2010.

Indonesia’s Indofood, one of the largest food producers in Asia, fell back 4% to R4600 after gaining 37% in 2010 and 282% in 2009.

In South Africa, Tiger Brands Ltd. posted its third straight year of

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gains, fi nishing up 35% at R25088. The increase followed a 14% gain in 2010 and 19% gain in 2009.

Egyptian companies engaged in fl our milling mostly were lower with the exception of Middle and West Delta Flour Co., which rose 13%, and East Delta Flour Co., which was up 11%. Egyptian Starch fell 53%, Middle Egypt Flour was down 36%, Alexandria Flour was down 33%, South Cairo & Giza Flour Mills fell 28%, and North Cairo Flour fell 11%. Upper Egypt Flour was fl at.

In Africa, Flour Mills of Nigeria P.L.C. fell 3% after climbing 111% in 2010. Flour Mills of Nigeria is involved in fl our milling, pasta production and cement production.

In Spain, Ebro Puleva S.A. shares fell 7% to €14.70 from €15.83. Ebro, which is the parent of New World Pasta Co., in December agreed to acquire the No Yolks and Wacky Mac dry pasta brands and certain assets from Bannockburn, Ill.-based Strom Products Ltd. for $50 million.

In Chile, Quinenco closed the year down 21%, while Molinos Rio Plata in Argentina closed up 8% from its 2010 fi nish. MBN

Bloomberg World Food Index shines compared to all equitiesNEW YORK — The Bloomberg World Food Index, a capitalization weighted index of the leading public companies in the food business around the globe, post-ed a minimal 0.9% decline in 2011. That was a much less severe setback than the 9.3% fall registered in the Bloomberg World Index, which measures the perfor-mance of the worldwide equity market.

The World Food Index closed 2011 at 178.26, compared with 179.29 a year earlier. The index comprises 143 pub-licly-listed companies. The index reached its 2011 high on May 31 at 193.22, while the low for the year came on Sept. 22, at 164.54.

For the overall measure of equities, the Bloomberg World Index fi nished 2011 at 144.04, contrasted with 158.88 a year earlier. Its high for the past year was 173.57, reached on May 2, and the low was 129.73 on Oct. 4.

The World Food Index refl ected a price-earnings ratio for the 143 member food companies of 17.15, while it was 23 times EBITDA. The World Food Index was 2.52 times book value and 71% of sales. This p.e. ratio for the World Food Index was sharply higher than the 12.3 multiple calculated for the World Index of all equities.

The largest publicly-listed global food company was Nestle, which has capitalization accounting for 15.3% of the index’s value. In second place was the largest U.S. food company, Kraft Foods Inc., at 5.4% of the index val-ue. Other leaders included Unilever n.v., at 4.8%; Tesco, the U.K. grocery chain, at 4.05%; Danone, at 3.3%; Gen-eral Mills, Inc., at 2.1%; and Kellogg, at 1.5%.

Among the 143 companies with share capitalization in the index were eight Chinese companies.

No explanation was given for companies listed or not listed. Notably missing were Archer Daniels Midland Co. and Bunge Ltd. Wal-Mart Stores, Inc., which has become the largest U.S. food retailer, was not included, while Wal-Mart Chile was. MBN

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Rich Products unveils new governance structure

Lindon and Meyers establish new commodity advisory serviceNAPERVILLE, ILL. — The Connell Co. has discontinued its commodity advisory service, effective, Dec. 31, and two longtime Connell executives have established a new company to immediately carry on the business.

Robert Lindon, who was an executive vice-president at Connell, will be owner and chief executive offi cer of the new business — Foresight Commodities Services, Inc. Paul Meyers, who was vice-president of commodity analysis at Connell, will be the chief agricultural economist at Foresight.

Mr. Lindon said Foresight will be assuming all the accounts and business activity of Connell’s commodity advisory services, effective immediately.

“Our objective is serving companies with their commodity purchasing needs, offering analysis, strategy development and information,” Mr. Lindon said.

Mr. Lindon has 35 years of experience in the commodities business, commencing with work in commodities analysis and grains procurement for General Foods, starting in 1977. After holding positions with The Planning Economics Group

and Dean Witter Reynolds, Mr. Lindon joined Connell in 1984, and has managed the commodity advisory service there since then.

A longtime participant in the annual Milling & Baking News Purchasing Seminar, Mr. Meyers was responsible for commodity research, analysis and consulting services to segments of

agribusiness. He has particular expertise in cocoa, sugar, corn, wheat, the soy complex and corn sweeteners. Before joining Connell, Mr. Meyers was a grains analyst for the World Agricultural Outlook Board of the U.S. Department of Agriculture and was an

economist with the Agricultural Stabilization and Conservation Service. With Foresight, Mr. Meyers will be based in Long Valley, N.J.

For Connell, the decision to discontinue its commodity advisory service marks the end of a business operation dating back half a century. The company’s roots, dating to the 1920s, are in the rice business, but Connell currently operates a number of divisions involved in rice and sugar, mining, real estate, fi nance and equipment leasing. The company is based in Berkeley Heights, N.J. MBN

BUFFALO, N.Y. — Rich Products Corp. has unveiled plans to realign its governance and organizational structure, effective Jan. 1, 2012. As part of the realignment, Rich Products said it will transition from its current dual business group structure, North America and International, to one organization consisting of fi ve regional business units: U.S./Canada, Asia/Pacifi c, Latin America, Europe/Middle East and South Africa.

“The timing is right for this next step in our organizational evolution,” said Bill Gisel, president and chief executive offi cer. “During the past 20 years, we have made considerable investments in our business infrastructure and built signifi cant workforces across the world. The logical transition to one universal business group with regional governance supports the fact that we’re now truly a global enterprise.”

Mr. Gisel said the move will strengthen Rich’s ability “to share our global business and in-market expertise with our customers, delivering trends and ideas from around the world that will help them be more successful.” Additionally, he said it “will enhance the development opportunities we offer to our associates across our company.”

Several personnel changes were announced in connection with the transition, including:

• Richard Ferranti has been promoted to executive vice-president and chief operating offi cer. Mr. Ferranti, who most recently was president of Rich’s North America Business Group, will have oversight of Rich’s fi ve regional businesses. Earlier, he spent 10 years as president of Rich’s International Business Group prior to his North America leadership role.

“Richard has successfully led our North America business through our evolving strategy that has focused on and advanced our strengths, while embracing the historic changes in the world in which we compete,” Mr. Gisel said. “His intellect, passion and long-term track record of success in a variety of important leadership roles across Rich’s make Richard the ideal candidate to assume this critical position for our company.”

• Kevin Malchoff has been named executive vice-president of global business development. Mr. Malchoff, who most recently was president of Rich’s International Business Group, will lead the company’s efforts to advance the strategies, capabilities and processes needed to accelerate new business across the globe.

“Kevin has devoted the past fi ve years of his 30-year Rich’s career as the president of the International Business Group,” Mr. Gisel said. “Under Kevin’s leadership, our businesses outside the U.S. and Canada have driven unprecedented rates of growth and success in emerging markets across the globe.”

•Jim Deuschle, Rich’s executive vice-president and chief fi nancial offi cer, is assuming additional responsibility for the company’s global procurement function, replacing Bill Gillmore, Rich’s chief procurement offi cer, who has announced his retirement effective April 1, 2012.

“Jim has worked closely with our procurement function to improve our ability to plan and forecast the impact of commodities on our business, and has continued to demonstrate strong leadership and valuable insight as a member of our executive team,” Mr. Gisel said. “His assumption of a closer leadership role over procurement is consistent with his responsibility for our enterprise risk management strategies.”

• Maureen Hurley, Rich’s executive vice-president and chief administrative offi cer, is continuing in her current role with oversight of the company’s legal, communications and human resources functions, but she also will take on added responsibilities related to global human resource leadership.

“Maureen has demonstrated a keen insight and ability to drive people and communication strategies that shape our culture and engage our associates,” Mr. Gisel said. “She will also be instrumental in driving the strategies that support our worldwide reputation.” MBN

Meyers


Donut Update

Another donut store chain dipped into the stock market in 2011. Dunkin’ Brands Group,

Inc., the parent company of Dunkin’ Donuts and Baskin-Robbins, on July 26 announced an initial public offering of 22,250,000 shares of its common stock at a price of $19 per share on The NASDAQ Global Select Market. On Nov. 17 Dunkin’ Brands, Canton, Mass., announced the offering by certain of its stockholders of 22 million shares of its common stock at a price of $25.62 per share. On Jan. 3, 2012, the price closed at $24.74 per share.

Both Dunkin’ Brands and Krispy Kreme Doughnuts, Inc., based in Winston-Salem, N.C., and another publicly-traded company, had positive fi nancial news in 2011 while forecasting more chain expansion.

Dunkin’ Brands has a goal of more than doubling the Dunkin’ Donuts footprint in the United States to reach 15,000 locations over the next 20 years, said Nigel Travis, chief executive offi cer of Dunkin’ Brands.

“Additionally, we announced last month we have begun actively recruiting franchises for markets in Texas, Colorado, New Mexico, Oklahoma and Nebraska, and the response so far by interested candidates has been very positive,” he said during a Nov. 1 earnings conference call. “Although we don’t expect new Dunkin’ restaurants to open in any of these markets until early 2013, we’re focused on keeping our development pipeline fi lled.”

He said internationally Dunkin’ Brands wants to improve its position in existing markets such as Japan, Korea and the Middle East.

Shares of Krispy Kreme Doughnuts trade on the New York Stock Exchange. The price, which closed at $6.52 per

share on Jan. 3, 2012, has stabilized after trading as low as $2.56 per share in the summer of 2010.

Krispy Kreme reported net income of $4.7 million, or 7c per share, for the third quarter ended Oct. 30, 2011, which compared with $2.4 million, or 3c per share, in the previous year’s third quarter. Revenue increased 9% to $98.7 million from $90.2 million in the previous year’s third quarter. Same-store sales rose for the 12th consecutive quarter.

Krispy Kreme had 678 stores on Oct. 30, 2011, which was up from 649 stores on Oct. 31, 2010. International expansion remains a goal.

“Although our international presence has increased dramatically in the last few years to 448 locations at the end of the quarter, we anticipate achieving an international store base approaching 900 stores by calendar 2016,” said Jim Morgan, chief executive offi cer.

Krispy Kreme Doughnuts, Inc. has been active on the retail side as well.

“Turning to our off-premises channel, our glazed chocolate pie and new dipped cake donuts are now available in over 10,000 grocery stores, convenience stores and mass merchants,” Mr. Morgan said. “These two items expand our off-premise product assortment of signature yeast-raised and cake donuts as well as honey buns, mini crullers, fruit pies and snack-sized donuts.”

Krispy Kreme Doughnuts had U.S. retail sales of $117,055,100 for the 52-week period ended Nov. 27, 2011, which marked a 4% increase from the previous 52-week period, according to SymphonyIRI Group, a Chicago-based market research fi rm. Unit sales, however, were down 1.6% to 31,098,510. The sales covered

supermarkets, drug stores and mass merchandise outlets, excluding Wal-Mart Stores, Inc.

Overall U.S. retail sales in the donut category rose 2.4% to $734,988,700 for the 52-week period ended Nov. 27, 2011, according to SymphonyIRI. Unit sales dipped 0.5% to 297,249,800.

Bimbo Bakeries USA led the category with sales of $194,748,800, up 0.6% from the previous 52-week period. Unit sales dropped nearly 6% to 61,908,200. Hostess Brands, Irving, Texas, was second with sales of $165,156,600, up 0.1%, and unit sales of 83,429,770, up about 4%.

Hostess Brands in 2011 introduced frosted devil’s food cake donettes that are dipped in a chocolate-fl avored coating. They are available in grocery stores and convenience stores nationally.

Tastykake donuts are appearing in retail stores across a wider geographic region since Flowers Foods, Inc., Thomasville, Ga., completed its acquisition of Tasty Baking Co. Flowers Foods in 2011 introduced the Tastykake brand in Flowers’ core markets in the Southeast.

“I am pleased that our integration of Tasty is progressing as scheduled and meeting our expectations,” George E. Deese, chairman and chief executive offi cer of Flowers Foods, said Nov. 10 when the company reported third-quarter fi nancial results. “During the quarter, we rolled out Tastykake products in our D.S.D. markets across the Southeast, and we will continue moving the brand into other Flowers markets.”

More than 1 million Tastykake donuts are produced daily. They include mini donuts, assorted donuts and donut holes. MBN

— Jeff Gelski

Investing dollars for donutsPublic offering of Dunkin’ Brands highlights successful year for donut chains


Industry Activities

Whitney MacMillan says important food policy decisions lie aheadMINNEAPOLIS — Policy makers face a number of diffi cult and important decisions about food in the years ahead, requiring extremely careful choices, said Whitney MacMillan, the retired chairman and chief executive offi cer of Cargill.

“Make the right decisions, and we can continue to feed a growing world,” he said. “Make the wrong choices, and a great many people around the world will feel the effects — and they won’t be good.”

Mr. MacMillan addressed critical world food issues in a recent speech at The Blake School, the Minneapolis college preparatory school he attended as a student.

Setting the stage for his key points, Mr. MacMillan said the world population is expected to grow from 7 billion today to 10 billion, or even more, “in the lifetime of people in this room.”

“Every day we have another 200,000 more people to feed, most of them in what we used to call the developing world,” he said. “Somebody has to produce the food a growing, hungry world needs. And just as important, someone has to generate the wealth needed to enable those hungry people to afford the food they need.”

Over the past 30 years, the global population has grown by 70%. Despite “great strides forward in productivity,” capacity for food production has not kept pace with this population growth, Mr. MacMillan said.

“The balance between the food we produce and the food we consume remains razor thin,” he said.

In addition to the projected population growth, global income levels may increase nearly threefold, driven by economic growth in Asia and other key economies worldwide, Mr. MacMillan said. Food consumption will double as a result of the population and income growth.

With the higher incomes will come increased demand for protein, which, in turn, triggers attendant resource issues associated with production of chicken, pork, beef and milk.

“To make things more complicated, much of that growth will occur in urban settings,” Mr. MacMillan said. “But as they say, ‘we aren’t making any more land.’ Perhaps more noteworthy is the fact that half the world’s farmers

today can’t feed their own families. So just saying ‘let more people farm’ isn’t an option.”

Emphasizing the need to optimize use of agricultural resources, Mr. MacMillan mentioned the role of food in recent political unrest around the world, including Egypt.

“The link between food security and political stability should be obvious,” Mr. MacMillan said. “But here in the richer countries of the world, we can lose sight of that simple fact. But we need to understand that political instability in places like the Middle East and Africa can have important consequences for us.”

Looking at the present situation, Mr. MacMillan warned of what he sees as a “formula for the price volatility that has rocked the commodity world in recent years.”

He said he sees a real risk of rapid and major increases in food costs and a precarious balance between supply and demand.

Mr. MacMillan offered a diverse set of examples of trends that drive food costs higher. He said the term “organic” is often considered to mean “better” because of the association between the world with products that are more pure and natural.

“But (organic) also offers considerably lower yields, and frankly, poses its own food safety problems,” he said.

“Similarly, we see a lot of people arguing against the use of improved genetics, most notably in seed genetics,” Mr. MacMillan said. “Some say it somehow tampers with nature and leads to that most evil of all things — ‘Franken-foods.’ Anything that smacks of ‘intensive’ farming is automatically bad, according to others. But how can anyone object to a seed that increases yields and income, requires no tillage, uses less water, does not require pesticides nor insecticides and uses less fertilizer?

“I can’t help but see this blind opposition to scientifi c progress as something regrettable. I see a world with serious challenges to food security but hear a debate that sounds remarkably like what Copernicus and Galileo must have faced hundreds of years ago.

“I don’t mean to disparage the views of genuinely concerned people. Debate is healthy. But let’s have debate, not shrill nay-saying and denial of an unpleasant reality.”

Mr. MacMillan reminded the audience of the need to fi nd a way to feed 10 billion people by 2050, while also preserving natural resources. Success, he said, will depend on “the smart use of exactly this kind of technology” around the world.

In contrast to approaches like biotechnology that could help meet world food demand in the years ahead, Mr. MacMillan cited ethanol as a “favorite example” of the consequences of bad decision making.

The supposed promise of ethanol was wonderful, Mr. MacMillan said, including reduced dependence on foreign oil, job creation, economic activity, a cleaner environment and better health.

“All that was required to bring ethanol to life was an estimated $53 billion in federal subsidies by 2015,” Mr. MacMillan said.

He said substantial tax credits have been offered for every gallon of ethanol produced and mandated increase use of ethanol in the U.S. gas supply.

“Creation of policy like this places ag companies in a no-win position, which is why so many in the industry have been reluctant to speak up,” he said. “Years ago, many of us warned against this policy, but we lost the debate. And once such a far-reaching program came into being, there was no choice but to compete as best we could. Some people can’t grasp — or accept — that it is essential to remain competitive in order to survive in agribusiness. But ask anyone in the business — or better yet, anyone no longer in the business, of whom there are many. Competitiveness is essential.

“But in the past year or so, there’s increasing evidence that more and more people realize the true and far-reaching consequences of what we have done. More and more people inside the agricultural community have realized that bad ag policy is no cure for bad energy policy.

“Ethanol has gone center-stage in the larger middle-class tax revolt against questionable federal spending. More and more people question whether it’s smart to use so much of one of our cornerstone commodities — corn — for fuel.”

Ethanol from corn has not been the exclusive cause of food insecurity and price volatility, and Mr. MacMillan expressed the view ethanol does have a place in a comprehensive U.S. energy policy.

“It’s the reliance on corn as the predominant source of raw material

MacMillan


that troubles me and so many others,” he said. “I hope to see us move toward reliance on other stocks, just as Brazil has done.”

Still, he described as “disingenuous” claims ethanol policy is not a factor in global food challenges worldwide.

He noted 40% of the U.S. corn crop currently is used for ethanol. With this growth has come increasing political clout from rural areas, the ethanol industry and related lobbying groups.

“Our ethanol predicament reminds me of the old saying: The road to hell is paved with good intentions,” Mr. MacMillan said. “I believe we need to keep that thought front and center as we make policy choices. If we make bad choices — even with the best and most noble of intentions — the result will indeed be hell for a great many people worldwide.” MBN

Wheat Foods Council unveils networking web siteRIDGWAY, COLO. — The Wheat Foods Council has launched a new web site, www.wheatfoods.org.

“As we prepare to celebrate our 40th anniversary in 2012, we are proud to announce the launch of the Wheat Foods Council Network web site,” said Judi Adams, president of the W.F.C. “With virtually thousands of web sites about wheat and wheat foods, we wanted to create a place where health and nutrition professionals, educators, culinarians,

the media, consumers, and anyone else with an interest in wheat foods, can go for credible, science-based health and nutrition information.”

According to the W.F.C., the new web site is constructed around the concept of “channels,” specifi c nutrition practice areas where visitors may fi nd focused content. The channels are: Food

& Culinary, Nutrition Educators, Supermarket and Retail, School Nutrition, Weight Management, Home Baking, Wheat’s Up and In-Focus.

The Wheat’s Up channel will feature a “lighter” look at what is in season, whether it’s a new industry initiative, recipes, activity tips, or wheat food facts; while the In-Focus channel will include a more in-depth look at a key issue impacting the nutrition community.

“We built this network to help people communicate with one another,” Ms. Adams said. She noted the W.F.C. Network will offer news, videos, podcasts, webinars, a regular e-letter, blogs, Tweets and other social media options to make it easy for visitors to stay up-to-speed and in touch with the various nutrition communities.

Additionally, the W.F.C. said it will use the web site to gather visitors’ opinions on a range of issues, from favorite wheat foods to the best ways to communicate health messages to consumers. Volunteers from the nutrition community are being asked to serve as network “correspondents” and they will be sharing their personal videos throughout the year on wheat and grains-related nutrition issues and events. MBN

GEAPSGrain Elevator and Processing Society

www.geaps.com

The Knowledge Resource forthe World of Grain Handling Industry Operations

For details on attending and exhibiting: visit www.geaps.comOr contact us: [email protected]; (952) 928-4640

The 83rd AnnualInternational Technical Conference and Exposition of

the Grain Elevator and Processing Society

March 3-6, 2012 Minneapolis Convention Center

Minneapolis, Minnesota, USA

EXCHANGE

The Industry’s Largest Expo

An Outstanding Educational Program

PLUS... The Industry’s Best Networking Opportunities

Industry Activities


June 1991 = 100Scales differ for each index.

-15%

-10%

-5%

0%

5%

10%

15%

20%

White Pan Bread Ingredients

Mon

thly

cha

nge

July Aug. Sept. Oct. Nov. Dec.Jan. Feb. Mar. Apr. May June

+11.7%+8.8%

-13.3%

-6.8%

+8.6%

+2.3%

-0.4%

+4.5%-13.4%

-10.0%

+6.2%

12-monthchange:-2.2%

+4.1%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

+3.3%+5.2%

+0.4%

-4.8%

-18.4% +0.7%

+10.3%

-8.3% -8.7%

+12.8%+6.9%

Bagel Ingredients

Mon

thly

cha

nge


+0.8%


Cake Donuts Ingredients

Mon

thly

cha

nge



-4.7%-5.3%

+2.6%

-0.3%

+4.5%

-0.9%

+1.7%+0.8%

-4.4%

+2.4%+3.9%

-1.4%

-6%-4%-2%0%2%4%6%8%

10%

-7%

-3.5%

0%

3.5%

7%

Devil’s Food Snack Cake Ingredients

Mon

thly

cha

nge


+0%

-2.5%

-5.3%

-1.7%

+3.0%+1.8%

+0.6%

-0.8%

+3.3%

-3.6%

+4.2% +3.8%

12-monthchange:+2.1%

-15%-10%-5%0%5%

10%15%20%25%30%35%

Pasta Ingredients

12-monthchange:+25.6%

Mon

thly

cha

nge

July Aug. Sept. Oct. Nov. Dec.Jan. Feb. Mar. Apr. May June-11.5%

+21.1%

+11.5%

-5.6%

-14.3%

-6.8%

+18.4%

+31.1%

+1.3%+4.0%-14.4%

-0.6%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

-5.1%

+3.8% +2.9%

-11.1%-14.6%

+9.3%+6.1%

-0.3%-18.9%

+12.4%

-3.4%

Saltine Cracker Ingredients

Mon

thly

cha

nge



+8.5%

-12%

-8%

-4%

0%

4%

8%

Shortbread Cookie Ingredients


Mon

thly

cha

nge


-6.1%

+0.3%+0.2%

-6.6%

-0.6% -1.7%

+1.7%

-6.4%

+5.2% +3.9%+3.4%

+0.6%

Indexes

Nutrition and Health

Report: ‘Good grains’ to be bakery’s top trend in 2012LONDON — Good grains, including those identifi ed as “ancient grains,” are set to be the leading driver of innovation in the bakery sector in 2012, according to “10 key trends in food, nutrition & health 2012,” a new report from London-based analyst group New Nutrition Business.

According to the report, grains already benefi t from a consumer perception of being “all-natural” and healthy, even when they are included in highly-processed foods, such as breakfast cereals. Many grains also benefi t from a perception of natural and intrinsic health benefi ts — such as the link between oats and heart health.

Julian Mellentin, director of New Nutrition Business and author of the trends report, cited the “good grains” message as a key driver behind growth in Kraft Foods’ breakfast biscuit brand, Belvita.

“With Belvita, Kraft has achieved annual sales of €63 million in France since the brand was introduced in 2001, and sales of £21 million in the U.K. since launch two years ago,” Mr. Mellentin said. “This has predominantly come off the back of a marketing positioning that highlights the whole grain content of the product and how this equates to ‘slow release’ energy. It’s a strategy that appears to have succeeded, and Kraft is now gearing up to bring Belvita to the U.S. market in 2012.”

Mr. Mellentin also said consumers have shown a willingness to try new and innovative grains.

“There’s been a steady increase in the numbers of products launched based on new and more esoteric grains, such as the so-called ‘ancient grains,’ like amaranth and quinoa,” he said. “People appear to be open to trying these novel grains, just as they are open to trying new fruits and vegetables. This is helpful because differentiating with grains is not easy and alternative grains can provide companies and brands with that much sought-after point of difference.”

Growing evidence supporting grains’ role in maintaining a healthy weight is another factor that positions grains in a positive light. MBN

Bay State Milling opens innovation center

QUINCY, MASS. — Bay State Milling Co. opened its innovation and application center at its headquarters in Quincy with a dedication ceremony in mid-October. Dedicated to the late Bernard J. Rothwell II, former president of the company, the facility will be known as the Rothwell GrainEssentials Center: Where Grain Based Solutions Grow. The facility is designed around functional stations, and includes state-of-the-art equipment and an experimental mill. It will serve as the home base for Bay State’s product applications team. Bay State said small scale commercial grade equipment has been installed in the center to produce a wide range of grain-based foods, including bread, pizza, pancakes, breadings, tortillas and more. Rothwell family members in attendance at the ceremony included (from left) Brenda Rothwell-Prescott, Barbara Rothwell-Hagan, Bonnie Rothwell-Walsh, Brian G. Rothwell, Christopher Rothwell and Bernard J. (Buck) Rothwell III. MBN


Weekly Spotlight

Price Indicators

2011 Indicators

Ingredient Market TrendsCongress to consider fi scal constraints and high farm prices in drafting farm bill

Members of the agriculture committees in the Senate and House of Representatives soon will begin drafting the 2012 farm bill. They will do so at a time marked both

by great concern over government spending and high farm prices. Perhaps more often than not, it is necessity that gives birth to reform. The drive to cut government spending has provided the need to review farm programs. And certainly high prices for most commodities may make reform more palatable to producers. Famously resilient farm programs may receive greater scrutiny this year than at any time since 1996, also a year of high commodity prices, when Congress made its last stab at weaning production agriculture from government support.

The U.S. Department of Agriculture in its Agricultural Income and Finance Outlook issued in December estimated net farm income in 2011 at $100.9 billion, up 28% from 2010 and 50% higher than the recent 10-year average of $67.4 billion. Net cash income estimated at $109.8 billion would be a nominal record, 19% above the prior record attained in 2010. As the year drew to a close, the average farm price of wheat in 2011 was estimated at $7.43 a bu, up 44% from 2010 and just 8c under the 2008 average. Average prices paid to farmers for corn and soybeans in 2011 were estimated at $6.04 a bu and $12.89 a bu, respectively, both records.

While expenses of farming also were on the rise, 2011 was a good year for producers, and because of the high prices, government payments made directly to farmers accounted for a smaller share of overall farm income than in most recent years, which will be a consideration as Congress reshapes U.S. farm programs.

The U.S.D.A. estimated government payments made directly to producers in 2011 at $10.6 billion, down 14% from an estimated $12.4 billion paid in 2010. If the December estimate holds, government payments to farmers in 2011 would have been the lowest since $7.5 billion in 1997.

Direct payments under the Direct and Countercyclical Program (D.C.P.) and the Average Crop Revenue Election Program (ACRE) were forecast at $4.71 billion for 2011. Direct payment rates are fi xed in legislation and are not affected by crop prices. Direct payments in 2011 were expected to be down about 5% from the 2006-10 average because of producer enrollment in ACRE. Authorized under the 2008 farm act, ACRE provides revenue insurance to producers in exchange for a 20% reduction in their annual direct payment allotments. Direct payments may have the eye of congressional budget-cutters.

Farm program payments based on price levels were estimated at $45 million, down 92% from 2010 because of strong crop prices. ACRE revenue insurance payments were expected to drop to $20 million in 2011 from $422 million in 2010. Countercyclical payments were estimated at $17 million and were made only to peanut farmers. Commodity producers were expected to receive $8.3 million in marketing loan benefi ts, including loan defi ciency payments, marketing loan gains and certifi cate exchange gains.

Other direct payments to producers in 2011 included payments to milk producers and tobacco farmers under individual commodity programs as well as payments under conservation and emergency disaster programs. MBN


Annual average prices received by farmers

per b

us

Source: U.S. Department of Agriculture, Economic Research Service

$0

$3

$6

$9

$12

$15

Wheat

Soybeans

Corn

‘11*‘10‘09‘08‘07‘06‘05‘04‘03‘02‘01‘00

*forecast

THISWEEK

Pan-bread fl our

Wheat futures, K.C., March

Hard winter premiums,12.2% pro tein

Millfeed, K.C., 30-day

Soybean oil

Cane sugar

Cocoa

2WEEKS

AGO

3WEEKS

AGOLASTWEEK

Pan-bread fl our

Wheat futures, K.C., March ‘10 vs. March ‘11

Millfeed,K.C., 30-day

Soybean oil

HFCS42%

Cocoa

Eggs

12-MONTHCHANGE

-2.2%

-15.8%

-2.9%

-5.3%

+13.0%

-2.0%

+18.4%


Ingredient Week

Bakery FlourBookings of bakery fl our were limited

last week. Price changes were mixed with pan bread fl our and spring grade fl our prices plunging and soft fl our pric-es eking out narrow gains.

Bakers returned to offi ces after the holidays facing no urgent needs and well positioned to consider market conditions before extending fl our coverage. Millers indicated fl at coverage (all components of a fl our contract accounted for) of fl our needs for January-March was about 70%. When one considers commitments to contracts for the quarter as refl ected in component coverage, about 85% of the prospective business for the fi rst quarter was on the books. Such commitments to contracts were estimated to account for 45% of prospective fl our requirements for April-June and for about 10% of pro-spective needs for July-September.

Wheat futures prices dropped last week, marking a halt to the recent rally. Cash wheat markets saw mixed changes. The cash hard winter wheat market ad-vanced on light post-holiday receipts, discouraging component-buying pan bread bakers from extending basis cov-erage. The cash spring wheat market tumbled, though, as wheat movement increased across the northern Plains, and spring grade users eyed the spring wheat basis for possible coverage.

Millfeed prices dropped after the holi-days, making covering the millfeed com-ponent of prospective fl our contracts less attractive.

$11.00

$14.00

$17.00

$20.00

$23.00

$26.00

J A J O

Previous Year Current Year

Bulk, f.o.b. car, $ per cwt


$10.00

$14.00

$18.00

$22.00

J A J O



$13.00

$17.00

$21.00

$25.00

$29.00

$33.00

J A J O


The Commodity Credit Corp. pur-chased 5,100 tonnes (112,455 cwts) of all-purpose fl our at [email protected] a tonne ([email protected] a cwt) for donation abroad; shipment Feb. 1-March 15.

Although mills were closed Monday, fl our grind rebounded strongly in most regions will many mills running through the past weekend. Grind averaged about six days in Central states, 5½ to six in the Southwest and Upper Midwest, 5½ in the Northeast and four to fi ve days in the Southeast and West coast. MBN

Family FlourSales of national and regional brands

of family fl our were sluggish. Carlot list prices were unchanged.

Grocers and other principal buyers were working down inventories, and orders weren’t expected to pick up until these supplies are cleared.

Demand for family fl our typically re-verts to the routine during the winter and early spring. This was expected to be the case again this year.

In the market for private label fl our, manufacturers and buyers discussed fl our coverage through May. MBN

SemolinaBookings of semolina, granulars and

durum fl our were light last week. Prices were unchanged with lower millfeed prices offsetting a downward adjust-ment to cash durum prices.

The price of choice milling hard amber durum quoted as a delivered Chicago/

Bakers standard, Kansas City

Spring standard, Minneapolis

Cracker fl our, Chicago

Bulk, f.o.b. car, $ per cwtBakery fl our

— Change from — Year Jan. 6 Dec. 30 Dec. 23 agoKansas City Bakers short patent 18.15 -0.90 0.65 19.90Bakers standard patent 18.05 -0.90 0.65 19.80Second clear 14.00 1.50 1.50 12.50Third clear NA . . . . . . 5.80Minneapolis Spring short patent 19.55 -2.15 -1.55 23.55Spring standard patent 19.45 -2.15 -1.55 23.45High gluten 22.45 -2.15 -1.55 26.45Whole wheat 19.45 -2.15 -1.55 23.45Specialty whole wheat 19.80 -2.15 -1.55 23.80Fancy spring clear 19.30 -2.15 -1.55 23.30First spring clear 19.20 -2.15 -1.55 23.20Rye, white 20.95 0.40 0.80 20.50Chicago Cracker 15.25 0.10 1.10 18.25Fancy cake 16.75 0.10 1.10 19.75New York Winter/spring blend 20.55 -0.90 0.65 22.30Spring standard patent 21.60 -2.10 -1.55 25.65High gluten 24.60 -2.10 -1.55 28.65Fancy cake 18.75 0.10 1.10 21.75Rye, white 23.45 0.40 0.80 23.00Los Angeles Bakers standard patent 22.25 -0.90 0.65 21.95Pastry 20.70 -0.90 0.65 21.05

Bulk, f.o.b. Minneapolis, $ per cwtSemolina

No. 1 hard amber durum

DollarsNationally advertised family fl our

Jan. 6 Year agoFamily patent, 2-25s papers 24.12 22.504-10s n.a. 18.258-5s 18.62 18.4018-2s 20.64 21.76Self-rising n.a. +88c per bale

— Change from — Year Jan. 6 Dec. 30 Dec. 23 agoSemolina 28.25 — -.45 23.15Granulars 28.05 — -.45 22.95Flour 27.95 — -.45 22.85First clear 19.10 — — 13.60Second clear 13.00 — — 11.00Semolina - N.Y. 30.95 — -.45 25.85

Track, Minneapolis$ per bu

beyond value was $11.90 a bu, down 10c from the previous week. The Chicago price equated to a Minneapolis value of $11.60 a bu. The durum price was the lowest since May 2010 and compared with $9.60 a bu a year ago.

The Canadian Wheat Board offered milling durum held in storage in Thun-der Bay, Ont., at the equivalent of $12.20 a bu, down 55c from a week earlier.

Pasta manufacturers eyed a weak-ening cash durum market and held back from further purchases in the hope prices would continue to decline. There was no sense of urgency with semolina coverage for the fi rst quarter of 2012 estimated at 90%. Coverage for the second quarter, though, was only about 15%, and once buyers sense a price bottom is near, it was expected booking for the rest of the crop year would expand.

Durum planting in Arizona continued to make good progress. The U.S.D.A. Winter Wheat Seedings report, which will be released Jan. 12, will have the fi rst estimate of desert durum planting (Ari-zona and California) for harvest in 2012. Even with recent wide declines, durum prices remained historically high, and ideas were desert durum plantings will be larger this year than last. MBN

— Change from — Year Jan. 6 Dec. 30 Dec. 23 agoChoice milling 13% 11.60 -.10 -.40 9.60cents per bu Amber discount 10.00 — — 10.00Durum discount 10@40 — — 10@40Puffi ng premium 0 — — 0

Ingredient Week


Cash Wheat HARD WINTER. Premiums on hard red winter wheat in Kansas City were unchanged to 16c a bu higher last week. The basis strengthened during both of the holiday-shortened weeks as wheat offers on the spot market dwindled. The unchanged premiums were untested. Demand was broad but not very deep.

Mills sought to keep wheat fl owing into marketing channels in order to keep pipelines optimally fi lled while they awaited deliveries of contracted wheat for application against January contracts. Resellers short on early-January commit-ments to the mills also sought supply. De-clining wheat futures prices bolstered the role of cash wheat premiums in encour-aging farmer sales and rail car loadings. Also a consideration were concerns that while current weather was benign, soon-er or later, winter was expected to pose challenges to timely wheat movement.

Gulf bids on hard winter wheat were steady. In Fort Worth, bids on hard red winter wheat were unchanged at the K.C. March price; new crop, 40c under July. Salina truck bids at terminal elevators were 15c under K.C. March, unchanged; new crop, 45c under July. Hutchinson el-evator bids were 5c under K.C. March, up 5c; new crop, 35c under July.

Most hard winter wheat states updated crop condition ratings. Winter wheat rat-ings in Kansas and Oklahoma improved in December while ratings were mostly stable in Texas and Nebraska and lower in South Dakota and Montana.

At the end of December, Kansas wheat condition was rated 53% good to excellent (47% a month earlier), 38% fair and 9% poor to very poor. “Above average temperatures and benefi cial moisture in most areas helped to see the winter wheat through December,” said Kansas Agricultural Statistics. Kansas

topsoil moisture improved to 76% ad-equate to surplus and 24% short to very short with the southwest district “still very dry with 64% reported in short to very short for topsoil moisture.”

Oklahoma wheat condition was 63% good to excellent (56% a month earlier), 30% fair and 7% poor to very poor. The U.S.D.A.’s Oklahoma fi eld offi ce said, “Several precipitation events through-out the month have improved conditions for small grains in the ground, but more moisture is needed to recover from the long drought.” Texas wheat condition was rated 25% good to excellent, 37% fair and 38% poor to very poor with the area affected by “exceptional drought” receding after benefi cial rains.

Nebraska wheat was 74% good to ex-cellent (74% a month earlier), 25% fair and 1% poor. South Dakota wheat was 41% good to excellent (63% a month earlier), 47% fair and 12% poor to very poor. Lack of snow cover was a concern. Montana wheat was 30% good to excel-lent (37% a month earlier), 61% fair and 9% poor to very poor amid mostly dry conditions and cold temperatures.

HARD SPRING. Premiums on hard red spring wheat quoted as delivered Chicago/beyond values in relation to the Minneapolis March wheat future plunged 30@95c a bu last week. Wheat offers increased but encountered limited domestic and foreign demand.

Snow cover was light to nonexistent across much of the northern Plains, and

Basis Kansas City March, cents per bu No. 1 hard winter

Exporter bids and offersFor shipment

Jan. 6Bid Offer

Year ago bid

Canadian domestic milling wheat

No. 1 Hard 11.5%, Track, PortlandBasis Kansas City future, $ per bu

Cash wheat

No. 1 Spring 14%, Track, PortlandBasis Minneapolis future, $ per bu

Jan. 6 — Change from — Year

For shipment Bid Dec. 30 Dec. 23 ago

January . . . . . . . . . …February 6.22 — +.17 7.6March 6.25 +.01 +.15 7.60

No. 1 Soft White, Track, Portland$ per bu

January 0.50 — -.10 -0.2February 0.52 — -.10 -0.10March 0.55 — -.09 …

January 1.20 . . . -.15 1.6February 1.20 -.20 -.20 1.60March 1.20 -.20 -.20 1.60

Jan. 6 — Change from — Year Premium Dec. 30 Dec. 23 ago Ordinary 45 @ 60 — — -52 @ -3711% 45 @ 60 — — -44 @ -2911.2% 60 @ 75 +5 @ +5 +5 @ +5 -42 @ -2711.4% 75 @ 90 +5 @ +5 +5 @ +5 -38 @ -2311.6% 85 @ 100 +14 @ +14 +14 @ +14 -30 @ -1511.8% 101 @ 116 +16 @ +16 +30 @ +30 -13 @ 212% 111 @ 126 +11 @ +11 +30 @ +30 -3 @ 1212.2% 111 @ 126 +9 @ +9 +30 @ +30 -3 @ 1212.4% 111 @ 126 +6 @ +6 +30 @ +30 0 @ 1512.6% 111 @ 126 +5 @ +5 +6 @ +6 0 @ 1512.8% 111 @ 126 +1 @ +1 +6 @ +6 5 @ 2013% 124 @ 139 +14 @ +14 +14 @ +14 55 @ 7013.2% 124 @ 139 +14 @ +14 +14 @ +14 60 @ 7513.4% 124 @ 139 +11 @ +11 +4 @ +4 65 @ 8013.6% 124 @ 139 +4 @ +4 +4 @ +4 70 @ 8513.8% 135 @ 150 — — 75 @ 9014% 165 @ 180 — — 80 @ 95

Basis Minneapolis March, delivered Chicago\beyond cents per bu

No. 1 hard spring

Jan. 6 — Change from — Year Premium Dec. 30 Dec. 23 ago Ordinary . . . . . . . . . … 11% . . . . . . . . . … 12% 8 . . . . . . -30 13% . . . . . . . . . 25 13.5% . . . . . . . . . 80 @ 9014% 90 @ 105 -30 @ -60 -50 @ -50 148 @ 22014.5% . . . . . . . . . 240 15% 110 @ 130 -95 @ -85 -60 @ -60 310 @ 40016% . . . . . . . . . … 17% . . . . . . . . . …

January +110 March … … February +110 March 120 … March +108 March … … April +95 May … …

January +57 March 58 60 MarchFebruary +57 March 62 +62 MarchMarch +57 March 65 +68 MarchApril +45 May 52 +35 May

Western red spring 13.5% 353.78 -21.59 381.71Soft white spring 266.93 -9.60 302.96Amber durum 458.67 -17.78 386.91

In-store, Thunder Bay, Canadian $ per tonne Jan. 6

Change from Dec. 30

Yearago

U.S. $ per bu

Western red spring 13.5% 9.41 -0.63 10.46Soft white spring 7.10 -0.30 8.30Amber durum 12.20 -0.55 10.60

No. 1 Hard 12%, Track GulfBasis Kansas City future, cents per bu

No. 2 Soft Red, c.i.f. New OrleansBasis Chicago future, cents per bu

there were no obstacles to wheat move-ment by rail or even by truck in most areas including hauling wheat from farm bins to elevators and into marketing channels. Producer sales of wheat increased at least moderately after Jan. 1.

Domestic demand for hard red spring wheat remained constrained by mill sub-stitution of hard winter wheat for spring wheat of equivalent protein to the extent practicable.

SOFT RED. Mill bids on soft red winter wheat were unchanged to 20c a bu higher last week. In Kansas City, No. 1 soft red bids were 66c under K.C. March to 6c un-der, unchanged. Gulf bids on soft red for January were 57c over Chicago March, up 2c. St. Louis mill bids were 30c over Chica-go March, up 20c. Chicago mill bids held at 10c over Chicago March; new crop, 35c under July. Mill bids in Toledo for nearby were unchanged at 30c over Chicago March; new crop, 30c over July. Elevator bids were Chicago March price; new crop, the Chicago July price. Cincinnati nearby mill bids were steady at 25c under Chi-cago March. Elevator bids were 33c under Chicago March; new crop, 20c under July. Michigan white wheat mill bids for near-by held at 10@40c over Chicago March.

Illinois and North Carolina updated their winter wheat condition ratings. As of Jan. 2, 81% of the Illinois crop was good to excel-lent, 17% fair and 2% poor. The North Caro-lina wheat condition at the end of Decem-ber was rated 88% good to excellent (84% a month earlier), 11% fair and 1% poor. MBN


Ingredient Week

$4.25

$5.75

$7.25

$8.75

$10.25

J A J O


Wheat FuturesPrices of wheat futures dropped last

week, bringing to an end a two-week ad-vance. With corn and soybean prices trad-ing sideways much of the week, it was mostly other outside markets and wheat’s own bearish supply-and-demand funda-mentals that pushed prices lower.

The U.S. dollar trading to the highest levels since January 2011 exerted pres-sure on commodities. At the same time, crude oil futures continued to trade above $100 a barrel, underpinned by jit-ters over Iran’s threat to close the Strait of Hormuz because of tightening economic sanctions on that country. Equity markets continued to rise with support from posi-tive U.S. manufacturing and job growth data and a lack of fresh horrible economic news from across the Atlantic.

The U.S. Department of Agriculture indicated net export sales of U.S. wheat during the week ended Dec. 29 totaled 138,600 tonnes, a marketing year low and down 68% from the previous week and down 64% from the prior four-week average. The Egyptian government’s grain-buying agency purchased 240,000 tonnes of milling wheat for March 11-20 shipment, but none from the Unit-ed States. Suppliers sharing in the wheat purchase included France, Ukraine and

Russia. To date this marketing year, Egypt has purchased only 246,700 tonnes of U.S. wheat compared with 1,740,300 tonnes during the same span of 2010-11.

Most hard red winter wheat states pro-vided new crop condition ratings. Win-ter wheat ratings improved in December in Kansas and Oklahoma, were stable in Texas and Nebraska and declined across the northern Plains. Overall, the reports suggested most of the hard winter wheat crop fared well in December with rain across the southern Plains reducing the area affl icted by “extreme” or “excep-tional” drought.

Traders awaited a battery of U.S.D.A. data that will be released Jan. 12, including reports on Dec. 1 grain stocks, winter wheat seedings and updates to 2011-12 U.S. and world supply-and-demand forecasts. The U.S.D.A. was expected to keep world wheat ending stocks near 208 million tonnes in the report. Some analysts suggested the pro-jected U.S. wheat carryover on June 1, 2012, may be lowered slightly due to stronger ex-ports than forecast. MBN

MillfeedMillfeed prices tumbled last week on

a combination of weak demand, heavy supply and lower corn futures prices after midweek. Flour grind picked up after

$ per ton, delivered rail unless notedN=Nominal

Bulk middlings

March contract, $ per buMinneapolis wheat futures

$ per bu; change in cents per buWheat futures

March contract, $ per buKansas City wheat futures

4.50

6.50

8.50

10.50

J A J O


March contract, $ per buChicago wheat futures

$4.50

$6.50

$8.50

$10.50

J A J O


— Change from — Week’s Year Jan. 6 Dec. 30 Dec. 23 High Low agoKansas City March 6.80 -37c +5c 7.32¼ 6.79½ 8.46¼May 6.88½ -36½c +5¼c 7.39½ 6.88¼ 8.56¼July 6.97 -35c +5¾c 7.47 6.96½ 8.63¼September 7.09¾ -35¼c +4c 7.58½ 7.09¾ 8.72½Chicago March 6.24¾ -28c +2¾c 6.70¾ 6.24½ 7.74May 6.43¾ -27½c +4¼c 6.89¼ 6.43¼ 8.01¾July 6.60¼ -26c +4¾c 7.02¾ 6.59¼ 8.21September 6.76½ -25¼c +4½c 7.17 6.75¾ 8.38Minneapolis March 8.01 -48½c -43½c 8.70¾ 7.98 8.70¾May 7.92¾ -32½c -25¾c 8.49¾ 7.89¼ 8.80¼July 7.86¾ -26¾c -21¼c 8.38¾ 7.82¼ 8.83½September 7.74 -16¼c -2¾c 8.10¼ 7.65 8.77¾

High Low

10.14¼ (05-26-11) 5.03 (06-11-10)10.01½ (02-09-11) 5.15¼ (06-11-10)9.97½ (05-26-11) 5.90 (03-31-10)10.20¾ (02-09-11) 5.42 (06-09-10) 9.54¾ (05-26-11) 5.05 (06-11-10)9.25½ (02-09-11) 5.21 (06-11-10)9.57½ (05-26-11) 6.13 (12-15-11)9.71½ (02-09-11) 5.60½ (06-09-10) 10.55¾ (05-26-11) 5.32¼ (06-09-10)10.56 (05-26-11) 5.43¼ (06-09-10)10.55 (05-26-11) 6.74¼ (07-15-10)10.55¼ (05-26-11) 5.65 (06-11-10)

Season’s

Kansas City 160 @ 166Southwest, f.o.b. truck 175 @ 185Minneapolis 149 @ 157Upper Midwest, f.o.b. truck 145 @ 153Chicago West 162 @ 170Central states, f.o.b truck 152 @ 160Buffalo 150 @ 160Southeast 135 @ 140N. & S. California 197 @ 212NLos Angeles, f.o.b. truck 193 @ 208NPacifi c Northwest 185 @ 200NUpper Midwest, sacked 300 Wheat germ 295 @ 310

— Change from — Year Jan. Dec. 30 Dec. 23 ago Feb.-Mar. Apr.-June

160 @ 166 -5 @ -7 -12 @ -14 160 @ 168 157 @ 163 118 @ 124 175 @ 180 -10 @ -10 -17 @ -17 175 @ 185 172 @ 177 133 @ 138 149 @ 157 -10 @ -12 -13 @ -15 154 @ 164 146 @ 154 136 @ 144 145 @ 153 -10 @ -12 -13 @ -15 150 @ 160 142 @ 150 132 @ 140 162 @ 170 -10 @ -12 -13 @ -15 167 @ 177 159 @ 167 149 @ 157 150 @ 158 -13 @ -15 -12 @ -14 150 @ 160 150 @ 158 125 @ 133 140 @ 150 -15 @ -15 -8 @ -8 150 @ 155 118 @ 128 100 @ 110 135 @ 140 -15 @ -20 -20 @ -25 135 @ 145 130 @ 140 117 @ 127 184 @ 199 — +3 @ +3 168 @ 178 172 @ 187 143 @ 158 180 @ 195 — +3 @ +3 164 @ 174 168 @ 183 139 @ 154 185 @ 200 -5 @ 0 -5 @ 0 155 @ 165 180 @ 195 150 @ 165

the holiday with mills in some regions running through the past weekend. Supplies were heavy across all regions east of the Rocky Mountains and heaviest in the Upper Midwest and Central states.

Spot values plunged as much as $20@30 a ton in the Southeast, Northeast and Central states, $15 in Upper Midwest and Southwest trucks, $5 for Southwest rail and Pacifi c Northwest with California about steady. Balance-January prices fell about $5@15, and deferred values were unchanged to about $8 lower.

Several markets contended with heavy supply and limited demand over the holidays. When corn futures prices plunged last Thursday, millfeed prices fell across all periods and regions. Delays were common, and “washouts” were expected in the Southwest, where fi rst-quarter material had been bought earlier as much as $50 above current values.

Wheat germ prices were steady to slightly weaker in limited trading.

Millfeed was $160 a ton in Kansas City and $149 a ton in Minneapolis, on a rail basis, compared with corn at $234 a ton and sorghum at $215 a ton, both K.C. Corn gluten feed was $10 lower at $170 a ton, distillers’ dried grain was steady at $200 a ton and dehydrated alfalfa was $310 a ton, all K.C. MBN

Spot

Ingredient Week


Chicago corn and soy futures Soy products

Corn meal

Oats

RiceDefatted, f.o.b. Midwest plant, $ per cwt

$ per cwt — Change from — Jan. 6 Dec. 30 Dec. 23 Chicago, bulk 23.38 @ 26.33 -.05 @ -.07 +.50 @ +.43Chicago, sacked 25.15 @ 28.16 -.05 @ -.07 +.50 @ +.43New York, bulk 25.05 @ 28.06 -.05 @ -.07 +.50 @ +.43New York, sacked 27.47 @ 30.45 -.05 @ -.07 +.50 @ +.43

— Change from — Jan. 6 Dec. 30 Dec. 23Soy fl our Bulk 22.62 @ 22.82 -.24 @ -.34 +.48 @ +.28Sacked 23.62 @ 24.82 -.54 @ -.04 +.08 @ +.68

Minneapolis — Change from — Jan. 6 Dec. 30 Dec. 23Food grade fl akes, f.o.b., bagged, $ per cwt 28.75@29 -.50 -.50Milling quality oats, No. 2 heavy, $ per bu 3.17¼ -22¼c -24cOat hulls, $ per ton 25@35 — —

— Change from — YearCorn Futures Jan. 6 Dec. 30 Dec. 23 ago$ per bu March 6.43½ -3 +24 5.95May 6.50¾ -4 +22¾ 6.03¾July 6.55¾ -5½ +21¾ 6.08½September 6.02¼ -11 +9¼ 5.69½December 5.75¼ -11 +6¼ 5.42March 5.87¼ -13 +6 5.50Soybeans $ per bu January 11.89½ -9 +26½ 13.57¾March 11.96½ -11¼ +24 13.65May 12.06 -11½ +23¾ 13.73¾July 12.14½ -12½ +22½ 13.77¾August 12.09½ -13½ +20¼ 13.53¾September 11.99¼ -13½ +16¾ 13.17Soybean Meal $ per ton January 309.60 +.20 +12.60 359.10March 312.40 -.70 +11.60 362.10May 314.90 -.90 +11.00 365.00July 317.80 -1.20 +10.20 365.50August 317.40 -2.00 +8.80 356.20September 316.20 -2.30 +7.60 345.50

Offers f.o.b. mills, $ per cwt, bagged

— Change from — YearCash Jan. 6 Dec. 30 Dec. 23 agoLong grain 27@29 — — 29Medium grain 31@32 — — 34Parboiled 30@35 — — 34Second heads, bulk 17@18 — — 15Brewers 14@18 — — 10f.o.b. mills, $ per ton Rice millfeed … . . . . . . 45Rice bran 210@230 -10 -10 110Rice hulls 70 — — 10U.S.D.A. 2011 crop world price milled - $ per cwt Long grain 19.94 — -1.60 21.67Medium/short grain 19.45 — -1.80 21.38Broken 13.97 — -1.27 15.33C.B.O.T. rough rice futures - $ per cwt January 14.46 -0.14½ +0.55½ 13.39March 14.68 -0.18½ +0.53½ 13.63May 14.95 -0.18 +0.52½ 13.91July 15.20 -0.17 +0.51 14.18

Corn ProductsCorn meal sales were seasonally light

after as some buyers resumed operations slowly after the holiday week. Prices edged lower. Coverage through the fi rst quarter was mostly completed but was light beyond March. Several users remained month-to-month buyers. Corn mills ran about four days last week.

There was a brief spurt in farmer sales of corn as the old year ended and 2012 began, but lower futures prices after midweek stymied the fl ow. The increased sales, along with slow domestic and export demand during the holiday period, pressured cash basis levels.

Talk about seed corn shortages as U.S. farmers were expected to increase plantings in 2011 were quelled by government and industry representatives.

Corn futures prices ended the week lower. Prices advanced early on concerns about dryness in Argentina and on weakness in the U.S. dollar. Several analysts reduced Argentine corn production forecasts. Increased farmer selling of corn early last week and profi t-taking also limited gains in futures prices. But prices tumbled Thursday on forecasts for much-needed rain in Argentine corn areas and as the dollar turned sharply higher. Traders awaited key Jan. 12 U.S.D.A. supply-and-demand, grain stocks and annual crop production reports.

Net export sales of U.S. corn in the week ended Dec. 29 for delivery in 2011-12 were 299,500 tonnes, down 6% from a week earlier, the U.S.D.A. said. The total was just below trade expectations. China, Mexico and Japan were the major buyers. Marketing-year-to-date net export sales commitments of corn were 6% below those in the same period last year. MBN

OatsSales of food grade oat fl akes remained

slow coming out of the holiday week. Coverage was unchanged, ranging from the fi rst quarter through the entire year. Exceptionally mild winter weather to date continued to limit demand for hot breakfast cereal.

Oat fl ake prices declined last week, refl ecting weakness in Chicago oats futures prices, which in recent weeks have traded more independently from corn futures than is typical. One trader noted March oats at 45% of the value of March corn was the lowest he could remember. At the same time last year, March oats was more than 60% of the value of corn. Oats basis levels have remained strong as a result of the weakness in futures. There was no indication of an increase in oats sales by Canadian farmers after Jan. 1. MBN

RiceU.S. milled rice prices were unchanged

at the start of the new year. Rice byproduct prices were steady to lower with bran down $10@20 a ton, hulls steady and millfeed mostly unquoted.

U.S.D.A. 2011 crop world milled rice prices were unchanged last week.

Rough rice futures prices declined modestly. Fundamentals remained bearish with world supplies ample following record global production last year.

Net export sales of U.S. rice during the week ended Dec. 29 for delivery in 2011-12 were 29,800 tonnes, down 65% from a week earlier and 48% below the prior four-week average, the U.S.D.A. said. Taiwan was the major buyer. Net export sales commitments of rice for the marketing year to date were 29% below the same period last year. MBN

Soy ProductsSoy fl our sales remained slow after the

holiday break. Prices declined. Few new bookings were evident, although some buyers continued to seek pricing. Many users continued to buy on a month-to-month basis with mostly larger users holding longer-term coverage through the fi rst quarter or even the full year in some cases. Time needed to deliver new orders was unchanged at two to three weeks.

Farmers’ sales of soybeans increased briefl y at the end of 2011 and early last week but subsided after midweek when futures prices turned lower. Cash basis levels were weaker on increased sales and slow domestic and export demand during the holiday period.

Soybean complex futures prices were mostly lower last week. Soybeans traded to two-month highs early in the period on weakness in the value of the U.S. dollar and on concerns about dryness in South America. But futures prices plunged Thursday as the dollar soared and weather forecasts called for rain this week in parched areas of Argentina.

Net export sales of U.S. soybeans during the week ended Dec. 29 for delivery in 2011-12 were 281,300 tonnes, down 58% from a week earlier and 56% below the prior four-week average, the U.S. Department of Agriculture said. China and Mexico were the major buyers. Soybean meal net sales were 144,400 tonnes in the week, nearly three times the prior week’s amount. Soybean sales were well below trade expectations, but soybean meal sales were above most trade estimates. Net export sales commitments for the marketing year to date were down 32% for soybeans and down 14% for soybean meal from the same period last year. MBN


Ingredient Week

Beet and cane sugar

Raw cane

Sweeteners

Edible oils

Crude soybean oil

Chicago soybean oil futures

Decatur, Ill., bulk, cents per lb

Spot soybean oil

f.o.b. plant, cents per lb

*Spot raw plus 7% plus 13.6c with 2% cash discount.

— Change from — Year Jan. 6 Dec. 30 Dec. 23 agoMidwest beet 52.00 @ 54.00 — -1.00 55.00Pacifi c beet 52.00 @ 54.00 — -1.00 55.00Cane* 53.00 @ 56.00 — -2.00 55.00

Delivered basis, cents per lb

1-Variations in prices often tied to tank car versus truck deliveries. 2-Prices are the lowest available to the publication. 3-Regular 42 DE/43 Baume, f.o.b. tank cars, trucks

42% HFCS spot price1 HFCS list price2 Regularcorn

syrup3 Dextrose

Jan. 6 — Change from — YearDelivery close Dec. 30 Dec. 23 agoJanuary 50.80 -1.29 -.16 56.35March 51.12 -1.30 -.25 56.82May 51.50 -1.28 -.23 57.22July 51.81 -1.24 -.21 57.44August 51.86 -1.24 -.21 57.47September 51.89 -1.22 -.21 57.47

Delivery Decatur, Ill. Western points January 50.30 @ 50.55 49.55 @ 49.80February 50.46 @ 50.71 49.71 @ 49.96March 50.62 @ 50.87 49.87 @ 50.12April 51.06 @ 51.31 50.31 @ 50.56May 51.25 @ 51.50 50.50 @ 50.75June 51.41 @ 51.66 50.66 @ 50.91July 51.56 @ 51.81 50.81 @ 51.06

Bulk in tank cars, cents per lb

Delivered refi ner, cents per lb

— Change from — YearContract Jan. 6 Dec. 30 Dec. 23 agoNearby 35.90 -.35 -.25 38.50January-March 35.90 -.35 -.25 38.50April-June 36.00 -.25 -.50 38.75July-September 36.00 -.25 -.60 39.80October-December 35.75 -.25 -.75 34.90January-March 34.10 -.05 -.05 34.10

Bulk in tank cars, cents per lb — Change from — Year Jan. 6 Dec. 30 Dec. 23 agoSoybean oil, Decatur 50.50 -1.25 -.50 53.50Loose lard, Chicago 49.00 — -.75 43.00Edible tallow, Chicago 50.75 — — 46.25Cottonseed oil, Miss. PBSY 52.25 -1.25 — 55.50Palm oil, ports 50.75 — +.50 60.25Palm kernel oil, ports 51.50 — — 63.25Coconut oil 66.00 +2.00 +3.00 87.00Peanut oil, Southeast 95.25 — — 76.50Corn oil, Decatur 54.25 +.50 +.50 59.75Sunfl owerseed oil, Midwest 91.00 — — 68.50Canola oil, Midwest 55.75 -1.25 -.25 59.25

Bulk, cents per lb

East [email protected] [email protected] [email protected]

26.62528.17528.37527.87528.575

42% HFCS wet 55% HFCS wet23.375 27.875 net24.925 29.425 net25.125 29.625 net24.625 29.125 net25.325 26.825 net

Jan. 6 Year agoMidwest 173/8 @ 213/8 153/8 @ 193/8Northeast 18¾ @ 22¾ 16¾ @ 20¾Southeast 187/8 @ 227/8 167/8 @ 207/8Southwest 18½ @ 22½ 16½ @ 20½West 193/8 @ 233/8 173/8 @ 213/8

23.00

33.00

43.00

53.00

63.00

J A J O


SweetenersSweetener markets remained quiet

after the holiday break. Few new sugar sales were evident, and prices held about steady. Corn sweetener business was mostly completed several weeks ago.

Prices of bulk refi ned sugar were mostly in the 52@56c a lb f.o.b. range for spot through Dec. 31, 2012. Most buying interest was closer to 52c a lb for beet sugar with cane offers as high as 56c. There were some buyer inquiries, but nothing was expected to trade until this week at the earliest. Discussion was noted for 2013 and 2014, but no new sales were evident, although some processors earlier booked considerable volume for 2013.

Sugar supply was available but not abundant. Some buying was expected ahead of Easter, mainly from quarterly buyers. And some traders still speculated supplies may tighten in the second quarter, which may prompt the U.S. Department of Agriculture to reevaluate import quotas after April 1.

Unseasonably warm weather in the Red River Valley and other northern areas did not appear to hurt beet piles with nighttime temperatures below freezing. Much colder weather was forecast.

American Crystal Sugar Co. plants across the Upper Midwest continued to run with replacement labor.

Sugar prices were mostly stable in Mexico. A report indicated Mexico was “considering” a 400,000-tonne import

quota to supplement domestic supply and prevent price spikes. While the cane harvest there still had a long way to go, some traders said they would not be surprised at such an import quota since they considered earlier 2011-12 Mexican production forecasts above 5.3 million tonnes to be too high. The U.S.D.A. will update both U.S. and Mexican sugar production and use forecasts on Jan. 12.

New York world raw sugar futures advanced 5% to seven-week highs early last week and then plunged 5% Thursday on strong gains in the value of the dollar and automated sell orders. Domestic raw futures saw modest declines.

Higher corn sweetener values contracted for 2012 are refl ected in the Milling & Baking News price tables on this page. Values for dextrose were up $4 a cwt from 2011 contracted levels, 42% high-fructose corn syrup and regular corn syrup were about $2 a cwt higher, and 55% HFCS was raised about $3 a cwt, although pricing on the latter was not well defi ned due to changes in the negotiating process implemented by corn refi ners last fall. MBN

Bakery ShorteningBookings of bakery shortening were

light last week. Price changes were mixed.Soybean oil prices declined. Soybean oil

futures prices advanced through midweek but tumbled into the weekend. The cash ba-sis on soybean oil maintained a soft under-

tone emerging from the holidays as refi ners sought outlets amid limited demand.

Weather forecasts for South American soybean areas were eyed closely. Rain was in midweek forecasts, which pres-sured soy complex futures on Thursday, but subsequent forecasts issued at the week’s end suggested less rain may fall than earlier suggested. Dry conditions, especially in Argentina, provided resis-tance to price declines in the soy com-plex. Soybean planting in Argentina was about 86% completed.

The U.S. dollar index trading to the highest level since January 2011 ex-erted pressure on commodity futures generally. Crude oil futures prices held above $100 a barrel, though, amid jitters prompted by Iran’s threat it may block the Strait of Hormuz in response to tight-ening economic sanctions. The soybean oil market remained sensitive to any changes in the crude oil market because of use of soybean oil in the production of biodiesel.

The U.S. Department of Agriculture indicated net export sales of U.S. soy-bean oil during the week ended Dec. 29 totaled 7,300 tonnes with Taiwan, Mexi-co and Panama the principal buyers.

Decreased demand after the key baking season weighed on lard and tallow prices.

Palm oil prices were fi rm as produc-tion in Malaysia was adversely affected by heavy rain that prevented workers from harvesting at full speed. MBN

Ingredient Week


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• Nonfat Dry Milk

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Cocoa$ per lb

Dairy products — Change from — Year Jan. 6 Dec. 30 Dec. 23 agoWhey powder .66 @ .71 +3c +3c .35Lactose .81 @ .86 +10c +10c .33Whey protein concentrate, (34% edible) 1.50 @ 1.55 +6c +6c .99 (80% edible) . . . . . . . . . 3.00Whey protein isolate (90% edible) . . . . . . . . . 4.60Nonfat dry milk high-heat Central/East 1.50 @ 1.60 -1c -3c 1.33 West 1.40 @ 1.50 -3c -3c 1.24Nonfat dry milk medium-low heat Central/East 1.41 @ 1.48 — — 1.24 West 1.35 @ 1.42 — -1c 1.20Buttermilk powder 1.30 @ 1.40 — +3c 1.10Casein - acid 4.95 @ 5.10 — — 4.00Casein - rennet 4.60 @ 4.90 — — 3.95Caseinate (f.o.b. ports) 4.80 @ 5.20 — -25c 4.05Butter 93AA (C.M.E.) 1.60½ +1c +1c 2.10

Cheese $ per lb, Central Cheddar (Blocks 40#) 2.46¾ — -1¼c 2.21C.M.E. cheddar barrels 1.59 +1c +3c 1.34¼C.M.E. cheddar blocks 1.61 +4¾c +4¾c 1.36½Mozzarella 2.44 — -1¼c 2.16¾American 5# loaf 2.14½ +1c +1¼c 1.84¾

f.o.b. plant, $ per lb

Egg products — Change from — YearEggs Jan. 6 Dec. 30 Dec. 23 agoDelivered, cents per dozen (multiply by 30 for case price) Nest runs 53.00 @ 57.00 -6.00 -10.00 34.00Checks 40.00 @ 45.00 -6.00 -9.00 19.00Table - Grade A large 141.50 @ 153.50 -6.00 +2.00 118.50Dried products - f.o.b. plant, $ per lb Whole 2.55 @ 2.80 -.05 -.10 2.25Whites 4.70 @ 4.90 -.10 -.20 3.95Yolks 1.85 @ 2.10 -.05 -.10 1.90Blends (+ sweetener) 2.15 @ 2.40 -.05 -.05 1.95Frozen products - less than truckload, f.o.b., $ per lbWhole 0.75 @ 0.77 -.03 -.05 0.56Whites 0.75 @ 0.77 — -.01 0.60Sugared yolks 0.93 @ 0.96 -.02 -.05 0.86Salted yolks 0.92 @ 0.95 -.03 -.06 0.82Liquid products - pasteurized, f.o.b., $ per lb Whole 0.50 @ 0.52 -.04 -.06 0.36Whites 0.53 @ 0.55 -.03 -.07 0.40Yolks 0.70 @ 0.72 -.02 -.03 0.68

Dairy Products Dry dairy product prices were mixed

again last week while cheese and butter prices were fi rmer. Milk supplies were at more normal levels as schools reopened.

High-heat nonfat dry milk prices were 1@3c a lb lower with low-heat and medium-heat N.D.M. steady to weak as the market dealt with supplies from increased production during the holiday period and early last week. New buying interest was light.

Casein prices were steady to weaker, and fi rst-quarter caseinate prices were down 20@25c a lb. Dry buttermilk prices were steady to weaker with the most weakness seen in the West.

But prices of other dry products shot upward mostly as the result of higher fi rst-quarter contracted values. Lactose prices surged 10c a lb amid good buying interest, limited spot offers and mostly balanced inventories. Prices of 34% whey protein concentrate advanced 6c a lb with supplies adequate for contractual needs but light otherwise. Dry whey prices were up 3c a lb with production easing after the holiday period and supplies mainly committed to contract buyers.

Cheese prices were steady to higher. As with dry products, milk supplies to cheese operations declined after the holidays. Most attention was on production related to orders for the upcoming Super Bowl on Feb. 5.

C.M.E. Group butter prices also fi rmed. Churning eased as ample cream supplies during the holiday period declined. MBN

Egg Products Egg product prices continued to sink

as business remained mostly slow after

— Change from — Year Jan. 6 Dec. 30 Dec. 23 agoButterfat ratio N.Y. 1.05 @ 1.15 — — 1.55Cake ratio N.Y. 1.75 @ 1.85 — — 1.57Powder ratio N.Y. 2.23 @ 2.38 +.06 +.22 1.71Cocoa Powder (East coast points, $ per lb) 10-12% Natural 2.05 @ 2.20 — — 2.2010-12% Alkalized 2.25 @ 2.40 — — 2.25 Red alkalized 2.35 @ 2.50 — — 2.30 Black alkalized 2.80 @ 2.95 — — 2.4516-18% Natural 2.15 @ 2.30 — — 2.3022-24% Natural 2.20 @ 2.35 — — 2.35

the holidays. The expected post-holiday surge in orders failed to materialize as buyers held back in a declining market.

Dried egg whites plunged 10c a lb (20c in two weeks). Dried yolks, blends and whole eggs were 5c lower. Frozen whole eggs dropped 3c a lb, yolks were 2@3c lower and whites were steady to weak. Liquid whole eggs plunged 4c a lb, whites lost 3c and yolks were down 2c.

Breaking egg prices declined on heavy supplies and moderate to weak processor demand. Graded egg prices turned lower after advancing into the holidays. MBN

CocoaCocoa powder prices were unchanged

last week. Some new domestic and export sales of natural powder were noted, including sales to bakery mix and chocolate milk manufacturers. While domestic powder supplies still were tight nearby, most users had adequate coverage through midyear. Recent weaker prices did not encourage users to rush to buy.

New York cocoa bean futures prices continued to fall on increased deliveries in West Africa and overall ample global supplies. Gains in the value of the U.S. dollar added pressure as well. MBN


Ingredient Week

Specialty feed

Energy

Indexes are based on ingredient costs using standard formulas. Additional details appear on the Ingredient Week Trends page on a rotating basis.

Grain-based foods stocks

Bakery ingredient indexes

— Change from — Year Jan. 6 Dec. 30 Dec. 23 agoK.C. bulk midds 160.00 -5.00 -12.00 160.00Soybean meal, 44%, K.C. 293.40 -1.00 +9.40 351.70Soybean meal, 47½%, K.C. 304.40 +5.00 +17.40 358.70Cottonseed meal, 41%, Memphis 214.50 -3.00 -8.00 245.00Linseed meal, 35%, Minneapolis 217.50 — -5.00 247.50Sunfl ower seed meal, 28%, Minneapolis 207.50 -20.00 -17.50 207.50Dehydrated alfalfa, 17%, Alf. Center 292.50 — — 175.00Meat meal, 50%, Kansas City 290.00 +20.00 +20.00 315.00Meat meal, 50%, Chicago 285.00 +5.00 +5.00 315.00Corn gluten feed, 21%, Southwest 187.50 -5.00 -12.50 175.00Corn gluten meal, 60%, Southwest 507.50 +5.00 — 575.00Corn gluten feed, 21%, Midwest truck 140.00 -12.50 -17.50 137.50Hominy feed, Kansas City (Northwest) 202.50 +2.50 +2.50 178.50Hominy feed, Chicago 119.00 — +5.00 94.00Hominy feed, California 264.00 — +4.00 237.00Hominy feed, Central Illinois 115.00 — +5.00 90.00Feather meal, K.C. 137.50 -272.50 -275.00 405.00Distillers dried grain 200.00 — — 180.00

— Change from — YearDiesel fuel Jan. 6 Dec. 30 Dec. 23 agoRetail, on-highway, $ per gallon East coast 3.844 +0.004 -0.029 3.357Midwest 3.683 -0.023 -0.082 3.303Gulf coast 3.709 +0.001 -0.018 3.279Rocky Mountain 3.836 -0.025 -0.077 3.332West coast 3.979 +0.001 -0.013 3.443U.S. average 3.783 -0.008 -0.045 3.331Natural gas Spot prices, $ per million BTU’s Henry hub 2.96 -0.11 -0.09 4.52New York 4.55 -1.30 +1.21 5.92Chicago 3.05 -0.11 -0.12 4.75California average 3.14 -0.19 -0.22 4.60Crude oil Spot prices, $ per barrel West Texas Intermediate 103.22 +3.86 +5.98 90.30C.B.O.T. ethanol Nearby contract, $ per gallon 2.223 +0.020 +0.038 2.240

— Change from — Year Jan. 6 Dec. 30 Dec. 23 agoBagel 232.8 -30.5 -25.1 281.5Cake donut 182.5 -3.6 -2.4 186.9Devil’s food cake 207.8 -3.3 -5.7 204.1Pasta 297.4 — -4.7 243.7Saltine cracker 188.0 -0.5 +9.3 217.4Shortbread cookie 202.5 -2.9 -1.9 215.6White pan bread 205.5 -6.9 +7.0 218.6

$ per ton

Energy Information Administration

Tables in Ingredient Week use the following symbols:

— unchanged... no quote

52-week Jan. 5 Net High Low Close change Grain-Based Foods Share Index ................. 12504 .50 7531 .57 12120 .35 + 85 .57

ADM ................................ 38 .02 23 .69 29 .37 + 1 .00Bridgford ......................... 13 .92 6 .80 9 .70 + .10Bunge ............................. 76 .13 54 .03 58 .75 + 2 .42Campbell Soup ............... 35 .66 29 .69 32 .73 - .44ConAgra ......................... 36 .72 22 .20 26 .51 + .15Corn Products ................ 59 .50 36 .65 51 .34 - .34Dunkin’ Brand ................. 31 .94 23 .24 24 .73 + .17Flowers Foods ................ 23 .13 15 .95 18 .76 - .16General Mills ................... 40 .80 34 .54 40 .54 + .10Hain Celestial .................. 38 .47 25 .59 35 .32 - 1 .82J & J Snack ..................... 55 .58 41 .91 52 .48 + .04Kellogg ............................ 57 .70 48 .10 50 .41 - .27Kraft Foods ..................... 38 .05 30 .21 37 .39 + .13Krispy Kreme ................... 10 .08 5 .10 6 .36 - .02Lance .............................. 24 .09 17 .06 22 .51 + .14MGP Ingredients ............. 10 .89 4 .25 5 .05 .00Panera Bread Co. ............ 145 .46 94 .62 137 .21 - 1 .96PepsiCo .......................... 71 .89 58 .50 66 .74 + .83Ralcorp Holdings ............. 91 .35 59 .23 85 .46 + .70J.M. Smucker ................... 80 .25 61 .16 77 .28 - 1 .08Sara Lee .......................... 20 .26 15 .66 18 .88 - .04Seaboard ......................... 2705 .00 1650 .00 2022 .00 + 10 .00

Grupo Bimbo .................. 106 .71 23 .00 29 .50 + 2 .14George Weston Ltd. ......... 84 .76 63 .80 67 .35 + .97Maple Leaf Foods ............ 12 .49 10 .18 10 .98 + .28

One number away One number away

Custom Market DataContact Christina Sullivan for more information or a price quote.

816-756-1000 ext 871• e-mail [email protected]

...we have it!Milling & Baking News has what you need.

Historical market data for over 75 food ingredients.

from fi nding the trend?from fi nding the trend?


Supplier Innovations

Van Drunen Farms, Momence, Ill., offers freeze-dried blackberries year-round for use in such products as hot cereals, cold cereals, snacks, granola mixes, baked foods, teas and other beverages. They are available in whole pieces, granules and powder. Freeze-dried blackberries are high in antioxidants such as vitamin A and vitamin C, and they contain magnesium, too.

For more information, call (815) 472-3100, e-mail [email protected] or visit www.vandrunenfarms.com.

For information on submitting an item for Supplier Innovations, e-mail [email protected] or contact Jeff Gelski at 816-756-1000, ext. 867.

Barry Callebaut launches decoration items

Add blackberries to cereal, snacks BASF selects North American distributorsBASF Corp. has appointed Brenntag Specialties, Inc.

and Horn Co. as distributors to serve its human nutrition customers in North America, effective Jan. 1, 2012. Brenntag Specialties, South Plainfield, N.J., will serve customers in North America and the eastern United States. Horn Co., La Mirada, Calif., will work with customers in the western United States.

“This new distribution network will provide our customers with a broad range of products to meet virtually any application need in dietary supplements, foods and beverages,” said Samy Jandali, vice-president, Nutrition & Health, North America, for BASF Corp.

Brenntag Specialties is involved in full-line chemical distribution. The company’s sales and marketing teams are supported by six regional customer service centers and 17 warehouses across the United States and Canada.

Horn Co. distributes specialty ingredients, raw materials and chemicals for use in a variety of industries. The industries encompass nutraceuticals, cosmetics, personal care products, food ingredients, cleaning products and animal wellness products, coatings, composites, building materials, elastomers and adhesives.

For more information, visit www.basf.com.

Barry Callebaut, Zurich, Switzerland, has introduced confectionery decorations, fillings and icings. Desir is a new chocolate filling range. Mini decorations include nibs, vermicelli, CrisPearls, splitters and blossoms.

The mini vermicelli decorations may be used on pralines, cakes and plated desserts. Mini blossoms have an irregular and hand-crafted character for special effects and highlights.

Mini CrisPearls are dark, milk and white chocolate around a toasted biscuit kernel. They may be included in confectionery, ice cream, desserts and pastries. Mini splitters are fl at-shaped chocolate bits that may be used in ice cream or may be used to decorate truffl es, pralines, cakes, desserts and rolls. Mini nibs are roasted kernels of the cocoa bean.

For more information, visit www.barry-callebaut.com.

Replace eggs in cake batters, cookiesArla Foods Ingredients

Groups P/S, Viby, Denmark, offers ingredients for companies wanting to create egg-free grain-based foods products. Nutrilac BK 7676, a milk protein, may provide cake structure and replace egg components in cake batters. Nutrilac BK 7781, another milk protein, was developed to provide structure in cookies and may be used in egg-free cookies.

For more information, visit www.arlafoodsingredients.com.

Peerless Group launches new brand identityThe Peerless Group, Sidney, Ohio, a division of the ITW

Food Equipment Group, has launched a new brand identity and tag line. The 2012 rebrand also will include a refi ned web site and product literature as well as additional social media sites.

A new logo brings together the three brands of Peerless, Peters and Fedco. The new tag line, Like No

Other, embodies the company’s commitment to provide superior equipment and service to customers to move their business forward, according to The Peerless Group, a food equipment company that has supplied the baking industry since its founding in 1913.

“Today’s announcement refl ects our dedication to expand our market presence, deepen our customer relationships and strengthen our safety and performance leadership,” said George Hoff, general manager of Peerless Food Equipment. “Our customers have told us that our equipment performance and reliability sets us apart in the industry and our service offering is incomparable.”

For more information, visit the www.thepeerlessgroup.us.


Classifi eds

Subscribe online at www.bakingbusiness.com or contact the circulation department at 1-800-338-6201 or fax 816-968-2878.

SERVICES

EMPLOYMENT

MICHAEL HOLM & ASSOCIATES“Recruiting for the Baking Industry Since 1979”

Companies from the Ingredient, Equipment, Wholesale, Retail and In-Store segments of the Baking

Industry use Michael Holm & Associates to locate the best available talent. We constantly need

qualifi ed candidates in the following areas:

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All fees and relocation company paid. • Phone (630) 663-1195 Fax (630) 663-1198

E-mail:[email protected] • www.holmandassociates.com

MICHAEL HOLM & ASSOCIATES 2050 W. 75th Street Woodridge, Illinois 60517

ca reer opportunitiesWith over 40 years experience, we’re proven leaders in the grain, milling, feed and food industries from entry level to executive level. Inquiries are confi dential. Fees are paid by our client companies. Visit our website or con-tact our nearest offi ce toll free and let our entire network go to work for you.

International offi ces in n P r

A B R LT

Visit us at www.agriassociates.com

Atlanta 800-562-1590California 866-909-6789Dallas 800-561-7568Davenport 800-728-0363

Denver 800-354-8039Florida 941-412-8210Kansas City 800-550-7980Memphis 800-792-2474

Minneapolis 651-731-3211Omaha 800-282-4975Pittsburgh 866-318-0800Seattle 509-285-5657

District Sales Manager & Technical Sales Manager

Career Opportunities

AB Mauri North America is looking for experienced Sales and Technical managers to join us in growing our Fleischmann’s yeast and AB Mauri

bakery ingredients business.

Qualifi ed candidates should submit their resume to

www.abmna.com/aboutus/careers.

Cain Food Industries, Inc., located in Dallas, TX, a fast paced, privately held specialty ingredient manufacturing company is looking for qualifi ed regional sales managers. The ideal candidate will have a background in hands on commercial baking and formulation,

an understanding of a wide variety of ingredients and the ability to work directly with an array of

different grain-based food products. Candidates should also be well organized, have great

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approximately 60% of the time.

If interested, please send a resume and

salary requirements to [email protected]

Do I need reprints?

Reprints are great for sales meetings, trade show handouts, training tools, recruiting brochures, investor profi les, annual reports, press releases or new product introduction.

Reprints can be single sheets or multi-page, four color brochures with custom design to meet your marketing needs. Minimum quantity is 100.

Call Carrie Fluegge for more information or price quote at 816-756-1000 or e-mail [email protected]

■ My company was featured in an article

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■ I have a great ad that should be utilized

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JANUARY 12, 2010

LATE NEWSContinued on Page 18

WASHINGTON — Dana Peterson,

a longtime member of the Kansas

Wheat staff, has been named chief

executive offi cer of the National

Association of Wheat Growers, ef-

fective Jan. 20. “We are absolutely

delighted to be bringing one of our

dynamic state staffers to the national

offi ce,” said Karl Scronce, president

and acting c.e.o. at NAWG. “Dana

is great to work with and showed

confi dence and poise throughout the

interview process. She has ideas and

enthusiasm that we need in Wash-

ington to help NAWG grow and

the wheat industry thrive in a very

competitive policy and production

Dana Peterson named

c.e.o. of NAWG

Grain-based foods shares rise

broadly, impressively in 2009NEW YORK — Shares of grain-based

foods companies were up sharply last

year, partly recovering from severe

losses sustained in 2008.

The Grain-Based Foods

Share Index, calculated

by Milling & Baking

News, ended the year at

10,350.06, up 13%.

Even with the dou-

ble-digit gain, the in-

dex was still beneath

the year-end closes of 2007 (11657.58),

2006 (11542.79) and 2004 (10852.64).

The 10,350.06 close was 14% be-

neath the all-time high for the index

(12018.59), reached in July 2007.

While lagging broader market in-

dex performances, the grain-based

share gain wasn’t far behind the 19%

Continued on Page 8

jump in the Dow Jones average of in-

dustrial shares. The Standard & Poor’s

500-stock index was up 24% for the

year; the Nasdaq com-

posite index was up

44% and the Russell

2000 was up 25%.

When combined with

the performance in 2008,

the Grain-Based Foods

Index outperformed the

broader market mea-

sures. For the two-years ended Dec. 31,

the grain-based index was down 10%,

versus a 21% decline in the Dow indus-

trials, a 24% drop in the S.&P. 500 and a

14% decline in the Nasdaq index.

Drilling deeper into the S.&P. 500,

the Grain-Based Share Index 2009

Bringing the heat

Story on Page 34

Private label pushing branded hot

cereal makers like never before


Cash spring wheat basis now

quoted as delivered Chicago value

MINNEAPOLIS — Beginning Jan. 4,

the cash spring wheat basis provided

daily by the Minneapolis offi ce of the

U.S. Department of Agriculture’s Agri-

cultural Marketing Service was quoted

as a delivered Chicago/beyond value.

Previously, the cash spring wheat basis

was quoted as the Minneapolis value of

wheat traversing that gateway to des-

tinations beyond. The new cash spring

wheat basis still was determined in

relation to Minneapolis wheat futures.

The Minneapolis Grain Exchange

(MGEX), which is host to the onsite

A.M.S. offi ce posting the cash spring

wheat basis, in a Dec. 24 announce-

ment, stated: “Due to changes in rate

structures by a Class I rail carrier, ef-

fective Jan. 4, 2010, daily cash wheat

and durum basis will be quoted as a

delivered Chicago value. Applicable

freight differentials to Minneapolis/

St. Paul and Duluth/Superior delivery

points will also be provided. Prices will

continue to refl ect values of rail cars of-

fered and traded in the exchange room

of the Minneapolis Grain Exchange for

spot or immediate shipment.”

The Class I carrier involved was the

Burlington Northern-Santa Fe, which

FEATURE Stock Market Review


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Marketplace Business Network Ad Index

(This index is provided as an additional service to readers. The publisher does not assume any liability for errors or omissions.)

www.bakingbusiness.com

www.world-grain.com

®

4800 Main St., Suite 100. Kansas City, Mo. 64112 Phone: (816) 756-1000

Fax: (816) 756-0494E-mail: [email protected]

www.meatpoultry.com

www.BioFuelsBusiness.com

AB Mauri Fleischmann’s ..............................................................23www.abmaurifl eischmanns.com

ADM ................................................................................................6www.adm.com/milling

American Society of Baking .........................................................31www.asbe.org

Bartlett & Co. (Flour Milling Div.) .................................................51BMO Harris Bank ..........................................................................29

www.harrisbank.com/redframeBrolite Products, Inc........................................................................3

www.bakewithbrolite.comBuhler, Inc. ......................................................................................9

www.buhlergroup.comBunge North America ...................................................................52

www.bungenorthamerica.comCereal Food Processors, Inc. .........................................................17

www.cerealfood.com Church & Dwight Co., Inc. .............................................................27

www.ahperformance.comClofi ne Dairy & Food Products, Inc. ..............................................43

www.clofi nedairy.comConAgra Mills .......................................................................14, 15

www.conagramills.comDakota Specialty Milling ..............................................................19

www.DakotaSpecialtyMilling.comDakota Yeast .................................................................................25

www.dakotayeast.comFarmer Direct Foods, Inc. ..............................................................11

www.farmerdirectfoods.comGEAPS ...........................................................................................35

www.geaps.comHorizon Milling, LLC ........................................................................2

www.horizonmilling.comKing Milling Co. ............................................................................28

www.kingmilling.comLoders Croklaan ..............................................................................5

www.croklaan.comThe Mennel Milling Co. ...................................................................8

www.mennel.comNorth Dakota Mill .........................................................................20

www.ndmill.comResearch Products Co. ..................................................................30

www.researchprod.comShawnee Milling Co. .....................................................................50

www.shawneemilling.comUSA Yeast ......................................................................................25

www.usayeast.com

Milling & Baking News, (ISSN 0091-4843) Volume 90, issue 23 is published every other week by Sosland Publishing Co., 4800 Main Street, Suite 100, Kansas City, MO 64112. Periodicals postage paid at Kansas City, MO 64108 and additional mailing offices. Canada Post International Publications Mail (Canada Distribution) Sales Agreement Number 40612608. Send returns (Canada) to Pitney Bowes International, P.O. Box 25542, Lon-don, ON, N6C 6B2. Printed in the USA. POSTMASTER: Send address changes to Milling & Baking News, PO Box 324, Con-gers, NY 10920-0324. ©2010 Sosland Publishing Co. All rights reserved. Reproduction of the whole or any part of the con-tents without written permission is prohibited. Milling & Bak-ing News assumes no responsibility for the validity of claims in items reported. Sosland Publishing Co. is a division of Sosland Companies, Inc.

FE

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JAN

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Closes January 19

Food Ingredient Solutions: Next Generation Oils

Bagel Update



OCTOBER 5, 2010

LATE NEWS


WASHINGTON — Wheat stored

in all positions on Sept. 1 totaled

2,458,849,000 bus, up 11% from

2,209,338,000 bus on Sept. 1, 2009, the

U.S. Department of Agriculture said

in its latest Grain Stocks report. Sept.

1 old crop corn stocks were up 2% at

1,707,566,000 bus, and old crop soy-

bean stocks were up 9% at 151,121,000

bus. The U.S.D.A. stocks numbers for

wheat and corn were above the aver-

age of pre-report trade expectations

while the soybean number was as

expected. On-farm stocks of wheat

were 826,000,000 bus, down 1% from

836,000,000 bus a year ago, while

off-farm stocks were 1,632,859,000

Wheat stocks up 11%,

corn climbs 2%

Continued on Page 8

Tortilla turnover

on the rise

Story on Page 30Sales swing upward for many

manufacturersContinued on Page 23

Sodium reduction for the long haul

Ingredients replace sodium while keeping in taste

and leavening functions

Consumer and scientifi c data

from such organizations as the

Centers for Disease

Control and Prevention,

Mintel and the International

Food Information Council

point to a reality: Food com-

panies will face pressure to

reduce sodium content in

their products for some time

to come. For the grain-based

foods industry, the questions

become how and how much.

The American Bakers Association,

Washington, supports an incremental

approach that will allow consumers’

pallets to adjust to less salty foods.

Ingredient suppliers also offer ways to

replace sodium in leavening systems.

Less than 10% of U.S. adults limit

their daily sodium intake

to recommended levels,

according to the June 24

report “Sodium intake

in adults – United States,

2005-2006” found in the

“Morbidity and Mortality

Weekly Report” from the

Atlanta-based C.D.C. U.S.

adults consume an average

of 3,466 mg of sodium per day, higher

than the maximum 2,300 mg in the 2005

Dietary Guidelines for Americans.

“Given the considerable overcon-

sumption of sodium by most adults

TORTILLA PERSPECTIVE

the American Retail Bakery Exposition,

will be designed for a wider audience

than traditional retail baking events in

the past. Expected participants include

professional bakers, caterers, restau-

rateurs, pastry chefs, cake decorators,

chocolatiers, bakery directors and other

culinary professionals.

All Things Baking will be held in the

years that the International Baking In-

dustry Exposition (I.B.I.E.) is not held.

The I.B.I.E. is a triennial event that

took place this year Sept. 26-29 in Las

Vegas. The next I.B.I.E. event is set for

Oct. 6-9, 2013, in Las Vegas.

“More than ever, it’s imperative that

our industry — both suppliers and

bakers — are in tune with the chang-

ing tastes, trends and behaviors of the

LAS VEGAS — The Retail Bakers of

America, the American Bakers As-

sociation and the Bakery Equipment

Manufacturers and Allieds (BEMA)

on Sept. 27 announced the formation

of a new industry event, All Things

Baking, to be held Oct. 2-4, 2011, at the

Renaissance Schaumburg Hotel and

Convention Center in Chicago.

The event, which will be held in lieu

of the R.B.A.’s standalone annual event,

Building on new Expo model, baking

groups unveil plans for annual show

Food Ingredient Solutions®

Upcoming issues…Issue Date

FE

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7

Closes February2

Product Perspective: Bread

Regulatory Affairs

Stock Market Analysis

Washington Update


Foods, Inc., named William A. Strenglis president and chief operating officer of the company’s Mrs. Smith’s Baker-ies unit.

Bunge Ltd. announced Jan. 18 that its board of directors has approved a primary offering of common shares.

Charles Freihofer Baking Co., part of George Weston Baker-ies, Inc., laid off 47 workers and eliminated 10 managerial positions in its bread opera-tions at Albany, N.Y.

Dunkin’ Donuts last week un-veiled a different look on its pack-aging with the introduction of a new Dunkin’Donuts logo design.

President Reagan told offi cials of the American Farm Bureau Federation that he would not consider imposing a selective grain embargo on the U.S.S.R. because of the Soviet role in the imposition of martial law in Poland.

Marcus W.K. Heffelfinger, Food Group vice-president

2002

Archive

The joint venture bringing together the flour milling op-erations of CHS Cooperatives and Cargill Inc. has been finalized. Horizon Milling L.L.C. will be the name of the new venture.

Burford Corp. recently an-nounced that Fred Springer has been named president of the company.

The Food and Drug Admin-istration has issued food se-curity guidance for industry to minimize the risk of the nation’s food supply being subjected to tampering or criminal or terrorist actions.

Rogers Sugar Income Fund will acquire Lantic Sugar Ltd., a leading sugar refiner in eastern Canada.

Archer Daniels Midland Co. announced that it is closing the ADM Milling Co. flour mill in Des Moines, Iowa.

Members of the Kansas City Board of Trade on Jan. 8 elected Gregory F. Edelblute, vice-president of grain, Ce-real Food Processors, Inc., Mission Woods, Kas., as the exchange chairman for 2002.

Amos R. McMullian, chair-man of the board and chief exectuive officer of Flowers

at Peavey Company, has an-nounced plans to retire from active management July 31.

Dwayne O. Andreas, chair-man and chief executive officer of Archer Daniels Midland Co., Decatur, Ill., has been elected to the board of Phibro Corp.

The board of directors of Amer-ican Bakeries Co. has elected four new members, including Joseph V. McGinley, executive vice-president of operations, and Henry M. Yoos, newly-named executive vice-presi-dent, marketing and sales.

Garry A. Pis-toria has been named senior vice-president and director of commodity marketing for the Grain Ter-minal Associa-tion, effective Feb. 1.

Avon Products Inc. has ac-cepted for payment 4,839,012 shares of common stock of Mallinckrodt, Inc., tendered by Mallinckrodt shareholders in an offer by AVP Holdings, Inc., a subsidiary of Avon. The transaction is part of the merger agreement between the two companies.

Harvey Owens, fl our broker of Chicago, widely known in the fl our and baking industries,

1982

Shawnee Milling Company

Shawnee Milling CompanyP.O. Box 1567

Shawnee, OK 74802-1567405-273-7000

Okeene Milling CompanyP.O. Box 1000,

Okeene, OK 73763580-822-4411

SHAWNEE FLOURBakers, H & R

Food Service/RetailPrivate LabelAll PurposeSelf-Rising

Whole WheatCustom Mixes

OKEENE FLOURBakers, Pastry, Whole Wheat

SHAWNEE CORN MEALWhite/Yellow

Meal, Flour, Cones, CoarseSelf Rising

[email protected]

www.shawneemilling.com

Good Millers Since 1906

has been appointed a consul-tant in the food supply brand of the Offi ce of Production Management.

Robert P. O’Brien of Fort Wayne, Ind., was named vice-president, commercial feed division, Pillsbury flour Mills Co., Jan. 2, according to an announce-ment by Philip W. Pillsbury, president.

Emma A. Hagaman, 83, presi-dent of the A. Hagaman and Co. pie bakers, Albany, N.Y., died at her home on Jan. 6.

A dean of the milling indus-try, Willis C. Helm, who is vice-president of the Russell-Miller Milling Co., Minneapo-lis, is expected to be elected unanimously for president of the Millers’ National Federation.

While consumers of the south have been slow to start us-ing enriched flour and bread, they are now beginning to evince keen interest.

A sharp cut in the price of thiamine hydrochloride, or vitamin B1, the principal in-gredient in enriched fl our, was announced last week by the leading manufacturers. MBN

Springer

1942

Strenglis

Heffelfi nger

Pistoria

O’Brien

Helm

ARTISTRY. Production of one of the world’s most essential food-stuffs is more than simply an industrial operation. Bartlett believes superior fl our milling starts with the skill of the craftsman and progresses with the creativity of the artist.

Bartlett Milling, a division of Bartlett and Company, serves domestic and inter-national markets, with mills producing a complete line of soft, hard and spring wheat fl ours milled to your exacting specifi cations. Put one of Bartlett’s master millers to work for you.

Flour mills located in Statesville and Wilson’s Mill, North Carolina and Coffeyville, Kansas.

BARTLETT AND COMPANY4900 Main, Suite 1200Kansas City, Missouri 64112(816) 753-6300

It’s why our customers keep coming back.

In the whole grain sector alone, Bunge Milling has

introduced a number of products to help our customers

meet growing consumer demand. New products are in

development to ensure that when consumers ask, you’ll

have the competitive edge.

At Bunge Milling, we never forget how much we

appreciate your business.

THE SHORTEST DISTANCE FROM HARVEST TO MARKET.

It’s not enough to keep up with the competition. We help you stay ahead of the curve.

Saint Louis, Missouri 314-292-2000 www.bungenorthamerica.com

Milling & Baking News - 2012-01-10

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