Milling & Baking News - November 26, 2013 - 4

Contents 

November 26, 2013 Vol. 92, No. 20

 GRAIN MARKET ROUNDTABLE

 NEWS Comment

Differing views on
wheat futures price
outlook as winter
approaches

Holiday calm
eludes baking in
regulatory affairs

Story on Page 1

10

Mulligan says General Mills
positioned for growth

The company will counter a slight decline in
overall cereal category sales with product news
and marketing, says Donal L. Mulligan, chief
financial officer.

Summer dryness still
possible in South America
Story on Page 34

Editorial
Business
Financial Results
Data
People
Weather Outlook
Washington
Ingredient Week Trends
Supplier Innovations
Archive

ADM initiatives to deal
with cost, cash and capital

Archer Daniels Midland Co. seeks another $200
million in annual run rate savings by the end
of 2014. The company also reduces its capital
spending.

12


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
DEPARTMENTS
7
10
12
16
20
34
36
39
48
54

11

Cost inflation, promotions bog
down Campbell baking unit

First-quarter operating earnings within the
Global Baking and Snacking division drop 8%
after cost inflation and increased promotional
spending.

15

Weston Foods sees reason to
increase par-bake production

Retail customers focus more on par-bake, which
leads to disappointing frozen dough results for
Weston and a drop in third-quarter operating
income.

16

Quarterly flour output down, but
year to date still record

Third-quarter flour production by U.S. mills
declines 2% to 106,598,000 cwts. Through the
first three quarters, production is 314,429,000
cwts.





COMPANIES IN THIS ISSUE

While the Thanksgiving Day holiday typically
marks the beginning of a quieter time in the
business of grain-based foods, the opposite
seems to be the case this year when it comes
to regulatory and legislative issues affecting
the industry. Indeed, it is difficult to remember
a time when bakers were buffeted by so
many different Washington-related matters
directly affecting how they do business.
The most surprising of these issues is
the announcement by the Food and Drug
Administration of plans to revoke the GRAS
status for partially hydrogenated vegetable
oils. The wholesale baking industry has done
an exemplary job of sharply reducing trans
fats, which partial hydrogenation causes, in
their products in recent years, but the complete
elimination of these functionally important
ingredients is expected to pose challenges.
For retail baking, the hurdle is likely to be still
higher. Other issues of great concern include
F.D.A. guidance on acrylamide reduction and
the host of regulations unfolding in connection
with the Food Safety Modernization Act.
Against this backdrop has been the
game of chicken that amazingly has not
yet ended with regard to the farm bill.
While conferees met last week to reconcile
Senate and House versions, no progress was
indicated. Consequences of failing to reach
an agreement before Dec. 31 have been
noted with monumental change that include
wheat support prices at just under $10 per
bu. While a resolution is still expected, the
further hardening of battle lines between the
political parties in Congress is unnerving. MBN

Archer Daniels Midland Co. ........ 11

General Mills, Inc.................. 10, 32

MGP Ingredients, Inc. ................. 12

Post Holdings, Inc. ........................ 1

B&G Foods Inc............................ 32

George Weston Ltd..................... 15

Mondelez International, Inc. ......... 8

Quaker Oats Co. ......................... 32

Campbell Soup Co. ..................... 12

Ingredion, Inc. ............................ 48

Natural Instincts L.L.C................. 32

Rickland Orchards ...................... 32

Clif Bar & Co. ............................. 32

J&J Snack Foods Corp. .................. 8

Odwalla Inc. ............................... 32

Schwebel Baking Co. .................. 10

Epic ........................................... 32

J.M. Smucker Co. ........................ 14

Penford Food Ingredients ............ 48

FoodWise, Inc. ............................ 32

Kellogg Co. ............................ 8, 32

Pharmavite Corp......................... 32

Frutarom Switzerland

Kraft Foods Group, Inc. ............... 32

Pinnacle Foods, Inc. .................... 11

Manildra Group .......................... 20

PLT Health Solutions, Inc. ............ 48

Ltd. Health BU......................... 48

4 / November 26, 2013 Milling & Baking News

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Milling & Baking News - November 26, 2013

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