Food Business News - June 21, 2011 - (Page 53)

INGREDIENTMARKETTRENDS In The Spotlight Senate vote to end ethanol support seen as symbolic At A Glance U.S. maple syrup production in thousand gallons 3,000 2,500 2,000 1,500 1,000 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 T he U.S. Senate’s 73-to-27 vote to immediately end the 45c-a-gallon Volumetric Ethanol Excise Tax Credit and the 54c-a-gallon import tariff raised some eyebrows in the ethanol industry and of corn growers but was generally seen as symbolic with a sure veto should the measure ever reach President Barack Obama’s desk. Also, the House of Representatives last week voted to block U.S. Department of Agriculture funding to help gas stations install pumps to handle higher blends of ethanol. The separate votes in both houses of Congress certainly sent a message that support for ethanol was waning under current U.S. economic stress. Controversy has swirled around the blenders’ tax credit ever since the U.S. Congress passed the Energy Policy Act in 2005 and enacted additional energy legislation in 2007. While presidents Bush and Obama both hailed ethanol as a necessary step to reduce dependence on foreign (Middle East) oil, others saw it as significantly contributing to higher food prices and potentially to global food shortages. The ethanol subsidies cost U.S. tax payers an estimated $6 billion annually. Domestic livestock feeders as well as the World Bank, the U.N.’s Food and Agriculture Organization and others have strongly opposed corn-based ethanol as a reason for higher feed and food costs. Corn growers hailed the blenders’ credit to keep a major outlet for their crop. The ethanol industry’s growing appetite for corn has been obvious with corn used to produce ethanol growing from 996 million bus (11% of production) in 2002-03 to 5,050 million bus (38% of production) projected for 2010-11. Corn planted area increased 15% from 78.9 million acres in 2002 to an estimated 90.7 million in 2011. The average price of corn in 2002 was $2.32 a bu compared with a U.S.D.A. projected record $6@7 in 2011-12. The Senate’s action combined with other more important factors, such as improving weather, lower crude oil prices, strength in the dollar and general economic worries, to send nearby corn futures from record highs on June 10 to one-month lows on June 16. FBN Source: U.S. Department of Agriculture U.S. sugar imports from Mexico 228,165 tonnes, raw value 153,235 181,366 ® Oct. Nov. Dec. Jan. Feb. March April May 2010 2011 Source: U.S. Department of Agriculture Ingredient Indexes Mayonnaise Commodity Trends Corn futures prices (per bu) $8.90 $7.30 $5.70 $4.10 $2.50 Jan. 2008 June Jan. 2009 June Jan. 2010 June Jan. 2011 June P Pork Sausage 78,942 84,344 104,885 94,071 June 2011 53 21, FOODBUSINESSNEWS ® 53 FOODBUSINESS NMarch 1, 2011 EWS 143,312

Table of Contents for the Digital Edition of Food Business News - June 21, 2011

Food Business News - June 21, 2011
C.D.C. report fi nds increase in salmonella infections
General Mills sees ‘robust’ growth opportunities in global yogurt category
Following Jimmy
Web Contents
Editorial - German E.coli outbreak underscores need to fund F.S.M.A.
ConAgra acquires Marie Callender’s trademarks
Kraft investing to eradicate malnutrition
Perkins & Marie Callender’s fi les for bankruptcy
Snack food sales reach $64 billion in 2010, may top $77 billion by 2015
Recession seen triggering sharp drop in food product introductions
Cargill opens Latin American innovation center
John Bilbrey to helm at Hershey
ICL Performance to acquire Cosmocel Quimica
Sugar bull
Smithfield terminates Campofrio bid
Omega-3 food, beverage market grows 11%
Roark Capital ups presence in food industry
Calavo earnings decline due to higher costs
Mountaire Farms acquiring bankrupt poultry company
Diamond Foods returns to profi tability in third quarter
Nestle water efforts recognized
C.D.C. report points to increase in salmonella infections
Consumers await full impact of higher food prices
A difficult disappearing act
Innovation honored by the I.F.T.
Mintel: Functional foods ‘on life support’
Allergen labeling guidance needed
Creating a defi nition of sustainable nutrition
German E. coli outbreak may lead to changes
Chronic inflammation: The next opportunity?
ConAgra Mills unveils food safety system for flour
Finding fiber everywhere
Spicy fl avors moving beyond heat
Dairy Business News
Commission clears Lactalis acquisition of Parmalat
New texture system replaces milk fat in dairy products
Researchers target sodium redution in cheese
General Mills sees ‘robust’ growth opportunities in global yogurt category
Saputo fiscal year earnings rise 18%
New Danisco system targets artisan ice cream
Researchers target sodium reduction in cheese
Single-serve licensing
Quiznos adds three concepts to menu
Flax USA introduces Flaxmilk
Johnsonville Sausage adds chicken varieties
General Mills adds brownies to Fiber One line
Farley’s & Sathers updates Tree Top line
Ingredient Market Trends
Senate vote to end ethanol support seen as symbolic
Ingredient Markets
New container may hold two compatible products
Solbar names president of U.S. business
Sensient launches naturally-sourced colors in dry state
Comax develops fl avors for energy drinks
Puratos launches bake-stable chocolate fi llings
DSM completes U.S. innovation center
Sea salt assists in sodium reduction
Ad Index
Food Business in the News

Food Business News - June 21, 2011