Food Business News - December 17, 2013 - (Page 9)

Editorial EDITORIAL STAFF Editor-in-chief Morton I. Sosland Executive editor, markets Neil N. Sosland Editor L. Joshua Sosland Executive editor Keith Nunes Senior editor, markets Jay S. Sjerven Managing editor Eric J. Schroeder Senior editor, markets Ron Sterk Associate editor Jeff Gelski Assistant editor, markets Laura Lloyd Internet editors Monica Watrous Maggie Young Graphic designer, market graphics, data Christina Sullivan PUBLISHING STAFF Chairman Charles S. Sosland Vice-chairman L. Joshua Sosland President and publisher Mark Sabo Associate publisher G. Michael Gude David DePaul Bruce Webster Vice-president, chief financial officer Melanie Hepperly Audience development director Don Keating Advertising manager Nora Wages Director of design services Sadowna Conarroe Circulation manager Judith Tinberg Digital systems analyst Marj Potts Manager of advertising design Becky White Director of e-Business Jon Hall Director of on-line advertising and promotions Carrie Fluegge Promotions manager Lon Davis WE'RE EAGER TO RECEIVE YOUR FEEDBACK: E-mail editor@sosland.com or write to us at Food Business News, 4800 Main Street, Suite 100, Kansas City, Mo, 64112 December 17, 2013 MORTON SOSLAND Potential exists for a great 2014 editor@sosland.com ven a quick glance at the ingredient in a declining ingredient market, two stand indexes on Page 57 of this issue, es- out. One is the all too familiar environment pecially when accompanied by an in- such price moves create for price concesdepth look at the charts, tables and comment sions and other incentives, by food makers in the Ingredient Markets section, will leave to gain shelf space by cutting prices or from no doubt that 2013 saw mostly a downward retail and food service customers. While move in prices of major food ingredients. acknowledging that steep advances in maWith the exception of strength in pork and jor component costs served as an effective poultry, the year unfolded dramatic change brake on the sort of disastrous competifrom several years of exceptional gains in tion that all too frequently in the past has the cost of ingredients. While this year alone plagued food manufacturing, having the opdoes not necessarily signal the end of what posite happen as cost pressures lessen borsome experts had defined as a powerful com- ders on self-destruction. modity upward price cycle, the weakness has Not to be overlooked in any positive been broad and deep enough to encourage thinking about food price weakness is the food processors to understand the many con- way in which such markets sow the seeds sequences of a totally different ingredient marketplace. Not to be overlooked in any positive thinking about For the most part, this year's declining course of major ingrefood price weakness is the way in which such markets dient prices ought to be welcomed with great enthusiasm sow the seeds for a subsequent price reversal. by food manufacturers. After several years in which sharply rising costs cut into margins of food makers to a degree that frequently caused for a subsequent price reversal. Yes, farmgreat financial pain, it is clearly refreshing to ers may have benefited greatly from several recognize that product innovations, which are years of sharp advances, but the more recent still the main driving force of the industry, may downturns have made planting decisions difbe launched without encountering unexpect- ficult in reaction to revenue shortfalls. It has ed interference from sharply higher costs for become increasingly obvious in recent years that acreage sown to crops like wheat is esone or another component. Hardly anything made rising costs more of pecially vulnerable to disappointing market a problem than that this period of ingredient returns, which is the way current prices are strength coincided with a period when con- viewed by many farmers. Not much more sumer demand was restrained by a far from than a single disappointing crop can cause a effervescent, if not dismal, economy. That dramatic price reversal. By recognizing the varying pitfalls crethose conditions are turning slightly more favorable at the same time that ingredient ated by the present market, the food induscosts are weakening points to all sorts of try ends 2013 and moves into 2014 with an possibilities, such as being able to maintain environment with greater potential than it stable prices. That is far better than having to perhaps has seen in a long time. The past face retail grocery and food service custom- year has not been anything like a boom that ers constantly pressing for lower prices and is often followed by bust. 2013 was a year other concessions as their answer to what of slow but steady improvement. Sure, there was a less than bright retail marketplace. are huge issues ahead with employment One of the horrors of the period of sharply lagging and the steadiness of the economy rising costs was finding little or no under- questioned, but the principal forces over standing from retailers inclined to press for which the food industry has little control pricing favors even while being fully aware appear positive. What needs doing to make of and sometimes sympathetic with the pres- the year ahead a great one is totally in the hands of the industry, leaving no question as sures facing food manufacturers. If there are any negatives for food processors to where responsibility lies. FBN E FOODBUSINESS NEWS ® 9

Table of Contents for the Digital Edition of Food Business News - December 17, 2013

Food Business News - December 17, 2013
Post acquisition binge continues
WhiteWave Foods to acquire Earthbound Farm
New U.S.D.A. action plan targets Salmonella
Table of Contents
Web Contents
Editorial - Potential exists for a great 2014
Sysco to acquire US Foods in $8.2 billion deal
Pepsi ousts Coca-Cola at Buffalo Wild Wings
Kroger sees greater opportunity in ‘natural’ portfolio
Diamond Foods continues to struggle
C.D.C. taking food safety surveillance to food service
Use of antibiotics in meat animal production may be ending
Pizza: The next big thing in fast-casual?
On-line sales looming for food
Bob Evans Farm on the brink?
Post acquisition binge continues
Breaking in to breakfast
Global trends to watch in 2014
Yogurt makers pump up protein claims
Market Insight - Corn sweetener prices will be lower in 2014
Ingredient Innovations - Mimicking mother’s milk
Sodium reduction: A little goes a long way
Beverage Business News - Wellness beverages
New Food Products
Ingredient Market Trends - Nature’s bounty, nature’s wrath
Ingredient Markets
Supplier Innovations and News
Classifieds
Marketplace
Ad Index
Food Business in the News

Food Business News - December 17, 2013

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