Food Business News - July 19, 2011 - (Page 23)

Market Insight U.S. rice production situation changes dramatically Drought and competition for acres from other crops limit U.S. production Continued from Page 1 Aug. 11, the U.S.D.A. last week projected the 2011 crop at 187 million cwts, down 23% from last year’s record 243.1 million cwts and the smallest since 184.4 million cwts in 1998. “Rice production in 2011-12 is lowered 6% (from the June projection) to 187 million cwt due entirely to a reduction in acreage,” the U.S.D.A. said. In its Acreage report, the U.S.D.A. estimated 2011 rice planted area at 2,676,000 acres, down 26% from last year and the lowest since 1987. Area for harvest was estimated at 2,649,000 acres, down 27% from 2010 and also the lowest in 24 years. “In all states except California, severe drought conditions, excessive flooding and higher prices for competing commodities contributed to the decline in rice acres compared to last year,” the U.S.D.A. said on June 30. In March, the U.S.D.A. indicated in its Prospective Plantings report farmers intended to plant 3,018,000 acres of rice in 2011, down 17% from 2010, while plantings of corn and soybeans went up in most of the six major rice states, and cotton plantings increased in all six states. In of Texas and Louisiana and the lower half of Mississippi. Only Missouri and California appear to be spared. Weekly Crop Progress report data confirmed the challenging growing conditions. Rice rated good to excellent in the six major states was 61% as of at a record 30% due to “historic drought conditions,” the U.S.D.A. said. Cotton was 28% good to excellent and 42% poor to very poor in the 15 major states, with top-producing Texas a disaster at 11% and 59%, respectively. The U.S.D.A. Rice Stocks report showed rough rice stocks on June 1 at 71,373,000 cwts, up 24% from June 1, 2010, due to the record large 2010 crop. But disappearance (use) during the April-June period, estimated at 49,242,000 cwts in 2011, was up 6% from a year earlier. The increased use contributed to the 6-million-cwt (11%) drop from June in forecast rice carryover on Aug. 1, 2011, to 50.6 million cwts, the largest since 1986-87. But carryover on Aug. 1, 2012, was projected at 29.6 million cwts, down 30% from June, down 42% from the current year and the lowest in four years. The U.S.D.A. projected the price paid to farmers for rough rice in 2011-12 to range from $13.20@14.20 a cwt, up $1 a cwt from its June number and up from $12.50 a cwt in 2010-11, but below the record $16.80 a cwt in 2008-09. But it may not be all good news for U.S. rice growers due to the record large global production. “Tighter (U.S.) supplies in 2011-12 along with plentiful supplies among the major exporters will likely limit U.S. exports,” the U.S.D.A. said. FBN Rice future prices per cwt $16.25 $15.00 $13.75 $12.50 Jan. 2011 Feb. March April May June July RON STERK its June WASDE, the U.S.D.A. reduced rice projected planted and harvested area by 168,000 acres, or 6%, from its March intentions number, due to flooding mainly in Arkansas and Missouri. For its July WASDE, the U.S.D.A. used the updated June 30 Acreage numbers, trimming another 170,000 acres from planted area and 180,000 from harvested area, both 6%, from its June WASDE projections, as drought began to take its toll. The latest U.S. Drought Monitor showed at least abnormally dry conditions for Arkansas and extreme to exceptional drought across most July 10, compared with 73% at the same time last year. The lowest rating was in Texas with 49% good to excellent (79% last year) and 44% fair. The crop in top-producing Arkansas was rated only 51% good to excellent (64% last year) and 34% fair. In contrast, the California crop was rated 90% good to excellent (80% last year) as water supplies have replenished there. Crop development in the six states was slightly ahead of the fiveyear average with 16% headed as of July 10. The cotton crop, to which many growers switched, was fairing far worse than a year ago with abandonment forecast July 19, 2011 FOODBUSINESS NEWS ® 23

Table of Contents for the Digital Edition of Food Business News - July 19, 2011

Food Business News - July 19, 2011
U.S. rice production situation changes dramatically
Marketing standards for children’s products proposed
Campbell to invest less in sodium reduction
Editorial - Data transparency hugely important for markets
Dannon to invest $88 million in Ohio yogurt plant
Pfi zer may sell Nutrition business
Nestle Health Science acquires stake in Vital Foods
Hispanic consumers seek authentic menu options
Kraft names Timothy Cofer to European leadership
Gary Lane named c.e.o. of Ottens Flavors
Nestle to buy 60% interest in Chinese confectioner
Sun Capital acquires Contessa Premium Foods
Reser’s Fine Foods to acquire Vaughan Foods
Campbell to invest less in sodium reduction
Hamburger consumption on the rise
Dunkin’ looks to raise $461 million through i.p.o.
Buckhead Beef to build new facility
Global industrial processing of grains in slower growth
Higher adult obesity rates recorded in 16 states
More than 2,000 organizations in support of MyPlate
U.S. rice production situation changes dramatically
Washington - Agreement ends cross-border trucking dispute
Sodium Reduction - Conflicting views on sodium and mortality
Potassium chloride comes with taste issues
Children’s Nutrition - Questions arise about children and food allergies
DAIRY BUSINESS NEWS - Dairy ingredient innovations
DAIRY BUSINESS NEWS - Fonterra names chief executive officer
Dairy Business News - New OptiSol ingredient works with frozen yogurt
Dairy Business News - New Danisco system targets artisan ice cream
Dairy Business News - Regional ice cream maker ceases production
Dairy Business News - Dairy organizations team to form consortium
Dairy Business News - Harris sees consumers continue to focus on value, spending cuts
Dairy Business News - General Mills completes Yoplait acquisition
Dairy Business News - Shadow Beverages acquires Whey-Up brand
Dairy Business News - Dean Foods settles lawsuit for $140 million
Dairy Business News - Sargento Foods expands R.&D. staffi ng
New Product Trends - Beyond meat protein
New Food Products - Zatarain’s introduces frozen meals
New Food Products - Bear Naked launches Nut Cluster Crunch cereal
New Food Products - Kraft adds caulifl ower to new mac and cheese item
New Food Products - AdvancePierre Foods adds Graham Snackers
New Food Products - WhiteWave foods expands product line
New Food Products - Mott’s enters vegetable juice category
New Food Products - Orgain introduces shakes for children
New Food Products - Field Roast launches vegetarian frankfurter
INGREDIENT MARKET TRENDS - Spring wheat crop forecast 11% lower than 2010
Ingredient Markets
Supplier Innovations and News - Caravan launches base for single-serve items
Supplier Innovations and News - B vitamin supplier changes name to Prinova
Supplier Innovations and News -Testing method screens for Salmonella
Supplier Innovations and News - Cargill commits to 2015 sustainable palm oil goal
Supplier Innovations and News - European Commission approves stevia’s use in some foods
Supplier Innovations and News - Kemin hires technical sales manager
Supplier Innovations and News - Bell expands by buying facility
Ad Index
Food Business in the News

Food Business News - July 19, 2011