Milling & Baking News - August 30, 2016 - 12

Business X

Milling E.U. wheat may be tight
despite record 2016 production
Continued from Page 1

the quality of the crop was not going
to be up to par," said Paul Meyers,
vice-president, commodity analysis,
at Foresight Commodity Services,
Naperville, Ill.
"Because of the poor quality of some
of the wheat in France and Germany,
more wheat will move into feed channels, because some of that wheat has
been downgraded and that is where it
has to go," he said, noting that an influx of feed wheat is likely to reduce
demand for corn.
As for milling wheat in Europe,
customers seeking high-quality soft
wheat likely will be able to find supplies on the continent, although the
search might be a little harder than
usual and premiums may be "a little
above average," Mr. Meyers said.

Buyers "will have to go to other
sources, but the other countries in
Europe are having pretty good production," he said, noting that some
reports have indicated "better quality
wheat from Bulgaria was moving into
France in small quantities."
While acknowledging that a wheat
crop in Europe such as the current one
was unusual - where excessive rains
pushed up yields but depressed proteins - Mr. Meyers contended market
effects were likely to be relatively minor.
"There will be some dislocation, but I
don't think overall it will be a major factor," he said, noting an increase in the
forecast carryover from last year's world
wheat crop, which included better-quality supplies from the European Union
than what may be available this year.
The I.G.C. August forecast of

Cargill seeks practical paths to
food security and sustainability
MINNEAPOLIS - For Cargill, a key
goal is to be the most trusted source of
sustainable products and services for its
customers. To do that, the company is
joining with others to build a food system that meets the needs of today while
providing for the needs of tomorrow.
"As we look to the future, we are
committed to creating practical and
scalable solutions," Ruth Kimmelshue,
corporate senior vice-president of operations at Cargill, said in "Envisioning Tomorrow," the company's
2016 annual report published Aug.
16. "This will involve tradeoffs,
and we need to be mindful of decisions that we make today and how
those decisions and actions will
impact tomorrow. We still need
to meet the needs of the present,
which includes improving livelihoods for the hundreds of millions of
people involved in agriculture around
the world. But we must do this without
compromising our collective ability to
nourish future generations."
Ms. Kimmelshue said Cargill can't
achieve its goals alone. The company
needs trust-based partnerships across
the supply chain with suppliers, customers, governments, civil society, other companies, consumers and farmers.
"I stress 'trust' because it will require all of us to work together in
good faith, believing that everyone
12 / August 30, 2016 XMilling & Baking News

has the same goal, which is to nourish
the world's people while protecting
the planet," Ms. Kimmelshue said.
As part of its sustainability goal,
Cargill in 2015 identified four focus areas where it plans to use its expertise
and scale to have the greatest impact:
land use, water resources, climate
change and farmer livelihoods. In
the 2016 annual report, the company
provided an update on its progress

'We are committed
to creating practical
and scalable
solutions.'
- Ruth Kimmelshue,
Cargill

against the four priorities.
In land use, Cargill said it has published a global forest policy and detailed action plans as a next step toward eliminating deforestation from
its supply chains by 2030. Additionally, the company achieved its goal of
full traceability to the mill for palm oil
in key markets.
Regarding water resources, Cargill
set a 2020 target to improve freshwater
efficiency by 5% against a fiscal 2015
baseline, achieving a 1.5% improvement this past year. The company also

total 2016-17 world wheat production
was 743 million tonnes, up 1% from
735 million tonnes as the July forecast
and from an estimated 736 million
tonnes the previous crop year. The
forecast for 2016-17 carryover was increased slightly to 229 million tonnes
from 228 million tonnes in July and
was up 6% from an estimated 217 million tonnes in 2015-16.
Global corn production was forecast
at 1,030 million tonnes in 2016-17, up
1% from the July forecast of 1,017 million tonnes and up 6% from the estimate
of 969 million tonnes in 2015-16.
World soybean production in 201617 was forecast at 325 million tonnes,
up 1% from the July forecast of 321
million tonnes and up 3% from 316
million tonnes from 2015-16.
The I.G.C. forecast world rice production at 484 million tonnes, down slightly from the July forecast of 487 million
tonnes but up 2% from the 2015-16 estimate of 473 million tonnes. MBN
said it realized approximately $200,000
in freshwater efficiency savings.
Cargill said it made big strides in its
third focus area: climate change. The
company avoided 1.2 million tonnes
of greenhouse gas emissions and also
set a 2020 target to improve greenhouse gas intensity by 5% against a
fiscal 2015 baseline, achieving a 2.2%
improvement this past year.
Finally, Cargill highlighted three
areas of progress within farmer livelihoods. The company said it trained
more than 500 farmers during fiscal
2016 to improve conservation, productivity and animal husbandry, and it
also teamed up with the non-profit
CARE over the past two years to
help more than 19,000 smallholder
farmers in eight countries access
agricultural training and reach
new markets. The company also
partnered with TechnoServe to
provide Nicaraguan farmers with
high-yielding hybrid seeds and
improved techniques that will reduce
their costs by up to 30%.
"We're making strides to create a
culture among farmers of improving agricultural practices," said Juan
Pane, sustainability lead for Cargill's
agricultural supply chain in Paraguay.
"But any practice we advocate has to
take farmers' livelihoods into account.
This is why, for example, we source
multiple crops from the region. We
want to encourage crop rotation that is
vital to soil health and put a business
incentive behind it." MBN
bakingbusiness.com / world-grain.com

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - August 30, 2016

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