Milling & Baking News - April 11, 2006 - 4

T H I S

W E E K

April 11, 2006
Vol. 85, No. 3

Insert inside

NEWSCOMMENT

Dramatic shift
under way in wheat
producing areas

A.I.B.
International
2006

A special report in Milling & Baking News

11

Sara Lee blended flour expands into buns

16

Dust explosions climb to 13 in 2005

18

Chicago corn, K.C. wheat contracts at record

27

Intended wheat area smallest since 1972

52

Kashi introduces crunchy granola bars

The Made With Whole Grain White Hot Dog Buns and White Hamburger Buns
contain a blend of 76% enriched white flour and 24% white whole wheat flour.
Each bun has 6 grams of whole grains.

Seven of the accidents occur in grain elevators. The two fatalities in the year
follow 2004, which had 7 explosions and no fatalities. The 10-year average is 10.5
explosions per year.

Chicago Board of Trade corn futures contracts add up to a record 331,455 on
March 31. Kansas City Board of Trade hard red winter wheat futures trading
volume reaches 363,605 contracts in March.

The National Agricultural Statistics Service projects all-wheat planted area in
the United States for harvest in 2006 at 57,128,000 acres, down slightly from
57,229,000 acres last year and the smallest aggregate since 1972.

The TLC Crunchy Granola bars, a natural brand and Kashi's first granola bar
product, will be available in the varieties of Honey Toasted 7 Grain, Roasted
Almond Crunch and Pumpkin Spice Flax.

Editorial
Business
Financial Results
People

IIVI
a1dn
..lli ng

vs.

EDITORIAL STAFF
Editor-in-chief
Morton I. Sosland
Executive editor, markets
Neil N. Sosland
Editor
L. Joshua Sosland
Senior editor, markets
Jay S. Sjerven

BPA MEMBERSHIP APPLIED FOR NOVEMBER, 2004

9
11
19
20

Data
Industry Activities
Supplier Innovations
Merchandising
Archive

24
31
51
52
58

Managing editor
Associate publisher
Eric J. Schroeder
G. Michael Gude
Associate editor
Vice-president, chief financial officer
Jeff Gelski
Melanie Hepperly
Assistant editor
Director of manufacturing
Ron Sterk
Vance Spearman
Assistant editor
Audience development director
Sarah Sosland
Don Keating
Editorial designer, market graphics, data
Director of design services
Christina Sullivan
Sadowna McClun
Feature designer
Circulation manager
Cayce Cobb
Judith Arnone
Director of distribution
PUBLISHING STAFF
Gary Humbert
Chairman
Digital systems analyst
Charles S. Sosland
Marj Potts
Vice-chairman
Manager of Advertising Design
L. Joshua Sosland
Becky White
President and publisher
Marketing communications
Mark Sabo
coordinator/reprint manager
Carrie Land

4 / Milling & Baking News, April 11, 2006

To describe what is happening with wheat
production in the United States, mainly
in the Upper Midwest, as a revolution
hardly overstates the case. That this year's
seedings of all wheat are the smallest in 34
years tells only part of the story of the way
that farmers have stopped planting wheat
in favor of other crops, mainly soybeans
and also corn. Except for a few small
upward blips, seedings of all wheat have
decreased every year since the recent peak
of 75,105,000 acres was planted in 1996.
The fall of 24% to the intentions for 2006
of 57,128,000 acres represents one of the
sharpest reductions for a single crop ever
witnessed in the United States.
What has happened in North Dakota is
more dramatic than the national picture.
That state's seedings of durum and other
spring are estimated at 7,880,000 acres,
down 13% from a year earlier and down
38% from the peak of 12,680,000 in 1996.
Many factors, from government program
changes to disease susceptibility, from
soaring input costs to price prospects,
explain these shifts. Looming competition
from wheat grown in neighboring Canada
obviously impacts North Dakota planting
intentions. For both flour millers and
merchandisers that have counted on wheat
originating from specific areas, such shifts
prompt cost increases that are unexpected
as well as being very large. It is likely that
these recent changes in wheat production
patterns are making contract production an
alternative that suddenly has a mounting
attraction to grain-based foods. MBN

SOSL4ND
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City, Mo. 64112 Phone: (816)
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Milling & Baking News - April 11, 2006

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