Food Business News - July 31, 2012 - (Page 50)

INGREDIENTMARKETTRENDS In The Spotlight Livestock and poultry groups urge reform of R.F.S. ecretary of Agriculture Tom Vilsack addressing an Iowa Farm Bureau summit last week said it was not the time to change the renewable fuel standard (R.F.S.) for corn-based ethanol, according to the Des Moines Register. “Some will want to use the drought as an excuse to change the R.F.S., but now is not the time,” he was quoted as saying. The R.F.S. was established under the Energy Policy Act At A Glance Major processing tomato countries in tonnes Italy Spain Portugal 2011 Final 4,950,000 1,985,000 2012 Estimate 4,350,000 1,600,000 950,000 5,000,000 11,702,000 S C.B.O.T. denatured fuel ethanol futures $3.10 $2.80 per gallon $2.50 $2.20 $1.90 Aug. 2011 Oct. Dec. Feb. 2012 April June of 2005 and greatly expanded under the Energy Independence and Security Act of 2007. It mandates minimum levels for the manufacture of corn-based ethanol and non-corn-based biofuels through 2022. The R.F.S. for corn-based ethanol in 2012 is 13.2 billion gallons. The R.F.S. for cornbased ethanol was scheduled to rise to 15 billion gallons by 2015 and hold at that level through 2022. But with corn futures prices recently establishing all-time highs and the most widespread drought in the United States since the 1950s exacting an ever-increasing toll on production prospects for this year, a coalition of livestock and poultry groups urged Congress to reform the R.F.S. for corn-based ethanol. Demand for corn from ethanol manufacturers during the 201213 crop year (November 2012-October 2013) was forecast at about 4.9 billion bus, which would equate to about 38% of 2012 corn production as projected by the U.S. Department of Agriculture earlier this month. The coalition urged consideration of a bill introduced in the House of Representatives last October that would partially waive the R.F.S. when corn inventories are low. The Renewable Fuel Standard Flexibility Act (H.R. 3097), introduced by Representative Bob Goodlatte of Virginia, would require a biannual review of corn ending stocks relative to usage. If the corn endingstocks-to-use ratio holds above 10%, reflecting an adequate supply, there would be no adjustment to the R.F.S. If the corn ending-stocks-to-use ratio falls between 7.5% and 10%, the R.F.S. would be reduced 10%. An ending-stocks-to-use ratio from 6% to 7.49% would trigger a 15% reduction to the R.F.S. A ratio between 5% and 5.99% would result in a 25% reduction in the R.F.S. And an ending-stocks-to-use ratio below 5% would require a 50% reduction in the R.F.S. The bill had 30 sponsors when it was introduced. It was referred to the House Committee on Energy and Commerce’s subcommittee on energy and power. FBN 1,065,000 China 6,792,000 11,067,000 California Source: World Processing Tomato Congress U.S.-Brazil orange juice production in thousand tonnes 1,315 1,273 1,475 660 687 U.S. Brazil 1,095 1,260 830 761 2007-08 2008-09 2009-10 2010-11 2011-12 Source: U.S. Department of Agriculture Ingredient Indexes V ill I C Vanilla Ice Cream 160 145 130 115 Commodity Trends 100 Aug. Sept. Oct. Nov. Dec. Jan. Feb.Mar. Apr. May June July Cattle inventory 150,000 thousand head M Chocolate Bar Milk 250 225 130,000 200 110,000 175 90,000 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 Source: U.S. Department of Agriculture 150 Aug. Sept. Oct. Nov. Dec. Jan. Feb.Mar. Apr. May June July 50 FOODBUSINESS NEWS 603 ® July 31, 2012

Table of Contents for the Digital Edition of Food Business News - July 31, 2012

Food Business News - July 31, 2012
Slowing global economy pressures McDonald’s net
Big changes may be looming for Dole Food Co.
Drought effects go well beyond corn, soybean crops
Table of Contents
Web Contents
Editorial - Global food parallels oil refining
Investments help drive earnings gain at Hershey
Prepared foods market to reach $32.45 billion in 2012
PepsiCo earnings fall on restructuring costs
Private investment group to buy Peet’s Coffee for $1 billion
Sales of Fairtrade-certified products grow 12%
Annie’s earnings climb 18% in first quarter
Food and beverage C.P.I. up 0.1% in June
Nestle Health Science acquires stake in medical foods company
Starbucks breaks ground on $172 million facility
Cal-Maine to buy egg production assets
Emmi Roth expanding in Wisconsin
B&G profit rises behind Culver Specialty business
Paramount Citrus acquires Healds Valley Farms
Washington - Government takes steps to aid drought-stricken farmers and ranchers
Ingredion: More than a catchy name
Ingredient Innovations - The next step in sodium reduction
Health and Wellness - Trans fats in review
Industry Images - Images from the I.F.T.
New Food Products
Supplier Innovations and News
Ingredient Market Trends
Ingredient Markets
Ad Index
Food Business in the News

Food Business News - July 31, 2012