Milling & Baking News - December 16, 2008 - 4

Contents

December 16, 2008 Vol. 87, No. 21

NEWS FEATURE

NEWS Comment

Story on Page 23

Sharp advance in
commodity prices
a dramatic reversal

Dealing with
the heat
Probiotics offer marketing
opportunities, processing challenges

10

D.H.S. pushes Kansas for
biodefense facility

The Department of Homeland Security
recommends Manhattan, Kas., as the site for the
new National Bio and Agro-Defense Facility,
which aims to protect the livestock industry and
food supply.

13

Interview of Jim Nolan,
c.e.o. of Sara Lee Corp.
D.S.D. Baking Business
Story on Page 17

DEPARTMENTS

13 People
14 Nutrition and Health

32

31 Corn Wet Milling
32 Financial Results
34 Industry Activities
35 Ingredient Week Trends
44 Supplier Innovations
50 Archive

COMPANIES IN THIS ISSUE

Milling & Baking News

I.B.C. monthly loss widens
to $14.7 million

Interstate Bakeries Corp. loses $14,742,445 in the
four weeks ended Oct. 18, the bankrupt company's
largest monthly loss in more than six months. Sales
decline for the sixth consecutive month.

33 Data

4 / December 16, 2008

Nutritious diet within reach of
family budgets

Most low-income families, but perhaps not all,
may afford a nutritious diet that includes fruit
and vegetables, according to the Economic
Research Service of the U.S. Department of
Agriculture.

9 Business

American Italian Pasta Co............. 1
Archway Cookies L.L.C. ................ 1
Attune Foods .............................. 26
Barry Callebaut........................... 30
Biosphere Industries, L.L.C.......... 44
Bunge Ltd. .................................... 8
Caravan Ingredients ................... 30
The Chia Co. ............................... 44
Cognis Nutrition and Health ....... 30
Commercial Bakeries Corp.......... 24
Corn Products International, Inc. ... 30
Curry Flour Mills ......................... 10
Danisco ...................................... 26

Nigel Travis, previously president and chief
executive officer of Papa John's International,
will become c.e.o. of Dunkin' Brands. He will
succeed Jon Luther, who will remain executive
chairman.

14

7 Editorial

Papa John's executive to succeed
Luther as Dunkin' c.e.o.

33

Australia wheat crop
nears 20 million tonnes

Australian wheat production is forecast at
19,969,000 tonnes, up 62,000 tonnes from
a September forecast, according to the
Australian Bureau of Agricultural and Resource
Economics.

Dover Industries Ltd. .................... 9
Dr. Oetker UK Ltd. ....................... 10
DSM Nutritional Products ........... 30
Dunkin' Brands ........................... 13
The Earthgrains Co. .................... 18
Einstein Noah Restaurant Group .... 13
Flowers Foods, Inc. ..................... 10
Freiberger Group ........................ 10
Ganeden Biotech, Inc.................. 23
George Weston Ltd. ...................... 1
Global Risk Management Inc. .... 13
Grupo Bimbo S.A.B. de C.V. .......... 1
Interstate Bakeries Corp. ........ 9, 32

Could any revelation be more surprising
to grain-based foods than last week's
dramatic reversal in commodity prices,
in which the grains participated, but
as laggards? After nearly six months of
commodity price weakness, it certainly
was a bit of a shock to see the index of 19
commodities (Reuters-Jeffries CRB) post
the sharpest weekly gain in its half-century
history. Preliminary indications showed the
index rising 10.2% from its longtime low a
week ago. Thursday's close of 229.23, even
after the sharp rise, was still well below the
peak last summer of 469.70.
With a gain of less than 7%, the March
wheat future in Chicago contributed much
less to the CRB Index climb than soaring
oil, gold and nickel prices. Even with
much to recover from the plunge of more
than 50% from the July high, the index's
reversal attracted considerable attention
on account of its dimensions and the
many preceding weeks of declines. If
nothing else, this move underscored how
recent weakness has removed none of the
market's frightful volatility.
At a time when weakness in the
general economy has prompted concerns
about price deflation, it is a shock to
see the rise in commodities as once
again threatening inflation. While wheat
markets might be restrained by the
expected carryover buildup this season,
inflationary monetary policy along
with weakness in the dollar provides
countervailing forces that are credited
with causing what some analysts tap as
a likely commodity price recovery. MBN

Itochu Corp................................... 8
J.M. Smucker Co. ........................ 32
J&J Snack Foods Corp. .................. 9
J&K Ingredients .......................... 30
The Kellogg Co.............................. 1
Kliklok-Woodman ....................... 44
Kraft Foods Inc. .......................... 23
Krispy Kreme Doughnuts, Inc........ 8
Lallemand, Inc. ........................... 24
Lance, Inc...................................... 1
Main Street Gourmet.................. 24
Mother's Cake and Cookies .......... 1
National Starch Food Innovation..... 30

Ocean's Flavor ............................ 30
Parrish & Heimbecker, Ltd. ............ 9
PepsiAmericas ............................ 18
Probi AB ..................................... 23
Ripplewood Holdings ................... 9
Sara Lee Corp. ............................ 17
Schwan Food Co. ........................ 10
Sealed Air Corp. .......................... 44
Sethness Products ...................... 30
Silver Point Capital LP .................. 9
Spiroflow Systems, Inc. ............... 30
Whole Foods Market .................. 27
Wilkins-Rogers, Inc. .................... 10

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Milling & Baking News - December 16, 2008

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