Milling & Baking News - November 13, 2012 - (Page 47)

N.G.F.A. seeks easier path to contest ‘unreasonable’ rail rates WASHINGTON — The National Grain and Feed Association (N.G.F.A.) on Nov. 1 submitted a statement to the federal Surface Transportation Board (S.T.B.) requesting the agency improve its rules and policies regarding the ability of agricultural shippers to challenge unreasonable rail freight rates. The N.G.F.A. commended the S.T.B. for proposing changes and soliciting public comments on the current methods available to shippers to challenge unreasonable rates. But the association said the agency’s proposals fell well short of achieving its stated goal. The N.G.F.A. urged the S.T.B. to undertake a more comprehensive, indepth review of its so-called “simplified standards” for rail rate regulation, with a goal of proposing further and more significant modifications. The N.G.F.A. said if the S.T.B. finds that its current methods for challenging unreasonable freight rates are inadequate — as the N.G.F.A. believes to be the case — the agency should ask Congress for additional statutory authority “designed to provide genuinely simplified and expedited standards for resolving rail rate disputes.” In its statement, the N.G.F.A. commented on several changes proposed by the S.T.B. as part of its rate-regulatory reform proceeding. The N.G.F.A. urged the S.T.B. to increase to at least $3 million the amount that may be recovered over a fiveyear period using the most streamlined mechanism currently available for challenging freight rail rates, the three-benchmark (3B) method. Under this method, the S.T.B. proposed to increase the recovery limit to $2 million, up from the current $1 million. As justification, the N.G.F.A. said the costs of bringing a 3B rate case likely still would discourage shippers from pursuing such relief. It noted that in the few 3B cases that have been filed by nonagricultural shippers, the railroads have raised numerous arguments requiring the use of experts and current waybill data. This required responses from shippers that added to their costs. The N.G.F.A. also noted the S.T.B. did not account for the additional costs incurred by shippers in presenting oral arguments in 3B rate cases before the agency. The N.G.F.A. supported the S.T.B.’s proposal to eliminate the current $5-million limit that shippers potentially may recover using a second / “simplified” agency mechanism for challenging unreasonable rail rates — the so-called “simplified stand-alone cost” (S.S.A.C.) rules. But it urged the agency to delete a concurrent proposal shipper filing the rate complaint. “We continue to believe it is highly questionable whether the existing S.S.A.C. rules promulgated in 2007 created a meaningful avenue that grain shippers — with diverse originand-destination points, and without high-volume, repetitive, long-term rail movements — could use to seek ‘We continue to believe it is highly questionable whether the existing S.S.A.C. (simplified stand-alone cost) rules promulgated in 2007 created a meaningful avenue that grain shippers — with diverse origin-and-destination points, and without high-volume, repetitive, long-term rail movements — could use to seek rate relief.’ — National Grain and Feed Association that would undermine use of this method for challenging rates by imposing a complex and expensive new burden that would require shippers to calculate the full replacement cost of rail system facilities used to serve the rate relief,” the N.G.F.A. said. “Rather than creating additional hurdles for utilizing this methodology, the S.T.B. should be exploring ways to make the S.S.A.C. rules less expensive, less complicated and more expedited.” MBN Often overlooked, bread is an important source of daily nutrition. Helping to restore the wholesome qualities of bread, Lallemand offers Bakers bread’s nutritional value. the way nature intended. Nutrition and flavor Lallemand Bakers Yeast is a natural an proven source of essential minerals and vitamins, including vegetarian source of Vitamin D with Lallemand Bakers Yeast. Help yourself! AMERICAN YEAST Tel.: (800) 687 6482 or (901) 547 1579 ©2012 Lallemand Inc. LALLEMAND CANADA Tel.: (800) 840 4047 or (514) 522 2133 |  Transportation and Distribution Milling & Baking News November 13, 2012 / 47

Table of Contents for the Digital Edition of Milling & Baking News - November 13, 2012

Milling & Baking News - November 13, 2012
Change agent at General Mills, NAMA chairman celebrates ‘noble’ industry
Countering higher input costs, B.B.U. to raise prices in November
Late News - Flat Flowers earnings after one-time charge
Table of Contents
News/Comment - Lack of focus on farm issues likely to change
Editorial - Many milling positives in tough environment
Late News
Data - January-September flour output reaches new record high
Financial Results - Mondelez earnings down 29% in third quarter, sales fall 2%
Oreo, belVita buoy biscuit business at Mondelez
CSM B.S.N.A. unit performs well in tough market
Morning foods wake up at Kellogg
Industry Activities - Millers in ‘deep dive’ exploring possible vitamin D fortification
Meyer elected vice-chair of NAMA; two honorary memberships named
Merchandising - Winners in America’s Best Raisin Bread Contest crowned
Business - Bakers look to resume operations in wake of Hurricane Sandy
Flowers acquiring Bimbo assets in California, Oklahoma
With Wisconsin project, Horizon doubling whole wheat capacity
Baker’s Pride opens new donut plant
Wind farm built to supply power to Bimbo in Mexico begins operating
Strikes may be looming at Hostess Brands baking plants
Mondelez to close Mr. Christie cookie plant in Toronto
Red Star, Lesaffre to raise yeast prices
ADM opens sweetener transfer terminal in Chattanooga
Nutrition and Health - Whole Grain Stamp success spans participating companies of all sizes
Food Ingredient Solutions - Indulge in extras
Milling Technology - ADM Milling expanding Beech Grove flour mill
The Andersons agrees to major grain facility acquisition
Gavilon opens grain facility in South Dakota
POET-DSM buys equipment for cellulose production
Washington - Breaking Washington gridlock
Weather Outlook - In marked change, world weather pattern transitioning to ‘normal
Washington - Elections may bring little change to Senate ag committee
Farm bill fate uncertain in lame duck session of Congress
U.S.D.A. offers assistance to hurricane victims
People - With Cargill c.f.o. resignation, David MacLennan to fill in
Brad Pederson named supply chain manager at Caravan Ingredients
ADM taps two for management positions
Transportation and Distribution - N.G.F.A. seeks easier path to contest ‘unreasonable’ rail rates
Nutrition and Health - Initiative shows gains in nutrition content in children’s cereal
Ingredient Market Trends - U.S.D.A. raises forecasts for U.S. and world 2012-13 wheat ending stocks
Supplier Innovations
Marketplace Business Network
Ad Index

Milling & Baking News - November 13, 2012