Milling & Baking News - May 9, 2017 - 1

THE NEWS WEEKLY OF GRAIN-BASED FOODS
MAY 9, 2017

bakingbusiness.com / foodbusinessnews.net

NEWS

Kansas blizzard raises crop damage
fears; extent of losses uncertain

New organizational
structure as Flowers'
leadership realigned
Story on Page 18

LATE NEWS

First-quarter sales
slide at Kellogg
BATTLE CREEK, MICH. - The Kellogg Co.'s top executive listed three
drivers responsible for sales slipping
4.1% in the first quarter ended April
1. The biggest driver was a lower consumption trend across all U.S. categories, which affected virtually every
packaged food company, said John
A. Bryant, chairman and chief executive officer. An expected reduction in
trade inventory, another driver, was
due to early shipments in the fourth
quarter in the United States and the
timing of shipments related to distributor transitions in some international markets. Customer-specific
interruptions in the first quarter, the
Continued on Page 8

KANSAS CITY - The most recent crop
progress and condition report for Kansas, reporting on the week ended April
30, said with understatement that "Precipitation continued to fall
across the entire state, with
several western counties receiving measurable snowfall. Cold temperatures, at
or below freezing in many
counties, raised concerns of
possible damage to the wheat
crop," which was 90% jointed
and 44% headed.
Justin Gilpin, chief executive officer of the Kansas
Wheat Commission, described the recent weather and its potential to damage the hard red winter wheat crop in
more vivid terms. He described drifts of
four to six feet in western Kansas growing areas and said the recent snow was
unprecedented in its timing and was

bound to be devastating to the crop.
"With that wet, heavy snow" in southwestern Kansas "there were stems bent
over and broken, and they are not going
to be able to make grain," he
told Milling & Baking News.
"That was a rough weekend for agriculture in Kansas," he said, adding that the
focus on the storm has overshadowed the fact that wheat
farmers in the state have had
to endure prices falling below
$3 a bu in the country, so low
that they can't recoup their
costs of production.
Both futures market prices and the
cash basis in Kansas City surged in the
aftermath of the storm, with K.C. July
wheat climbing 28½c, almost to the
30c-a-bu allowable limit for gains on a
single day. Along with a raft of other
Continued on Page 10

Flour production edges upward in
early 2017; estimate for 2016 cut
WASHINGTON - Flour production
by U.S. mills in January-March 2017
reached a new record for the first quarter of 104,801,000 cwts, up 0.9% from the
previous peak of 103,909,000 in JanuaryMarch 2016, according to the National
Agricultural Statistics Service (NASS) of
the U.S. Department of Agriculture.
Even as it estimated first-quarter production increasing in 2017, the U.S.D.A.

revised downward by a significant margin its estimates for 2016 flour production. In its annual flour production summary, the NASS pegged the 2016 output
at 423,703,000 cwts, down 1,703,000, or
0.4%, from the preliminary 425,406,000.
This, in turn, was the smallest yearly
flour output since 2012 when the total
was 420,365,000 (see related story on
Page 36).
While a peak for the first quarter of
2017, January-March flour production
was down 3% from October-December,
the preceding quarter, at 108,080,000 cwts.
NASS data are now available for
11 consecutive quarters, or since
July-September 2014. While data back
to July-September 2014 were compiled
Continued on Page 35


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Table of Contents for the Digital Edition of Milling & Baking News - May 9, 2017

Business -- Kansas blizzard raises crop damage fears; extent of losses uncertain
Data -- Flour production edges upward in early 2017; estimate for 2016 cut
Late News -- First-quarter sales slide at Kellogg
News -- Whole grains fizzle underscored in Trump move
Editorial -- Milling's role in a strong Turkey
Late News -- Viterra acquires certain Gavilon grain assets
Late News -- Lesaffre breaks ground on blending facility
Late News -- Einstein Noah launches caffeinated bagels
Late News -- NAMA elects new vice-chairman
Business -- Middleby Bakery Group acquires Burford, sets stage for global expansion
Business -- Harmening named General Mills chief executive; Powell to retire
Business -- No link seen between gluten intake and coronary heart disease risk
Business -- Blackford Capital to invest in Ellison; Rob Ellis set to retire
Financial Results -- ‘We own that category’ — biscuits at heart of Mondelez challenges
Financial Results -- Bimbo says U.S. business improved after unusual January weakness
Financial Results -- Lancaster Colony sees additional acquisition opportunities looming
Financial Results -- Textures and emulsifiers play key role in growth at Ingredion
Financial Results -- Gruma USA income eases in quarter, but volumes remain strong
People -- New organizational structure at Flowers; leadership realigned
People -- Jeff Thomas named president, c.e.o. of Miller Milling
Industry Activities -- Perdue gives schools more flexibility in nutrition standards
Industry Activities -- K-State hires coordinator for global food systems initiative
Transportation and Distribution -- Low prices, strong demand boost first-quarter grain exports to record high
I.A.O.M. Review -- Elevated importance of safety stressed by Ardent Mills c.e.o.
I.A.O.M. Review -- ‘Reborn’ Henry Simon equipment unveiled at I.A.O.M.
I.A.O.M. Review -- O’Brien of Rogers Foods named Milling Operative of the Year
I.A.O.M. Photos -- Milling industry gathers in New Orleans for I.A.O.M. Conference and Expo
Data -- 2 016 fl our production estimates revised downward 1.7 million cwts
Data -- I.G.C. raises 2017-18 world wheat crop forecast
Ingredient Market Trends -- Wheat tour forecasts average Kansas wheat yield at 46.1 bus per acre, crop at 281.7 million bus
Ingredient Week
Supplier Innovations -- Olam Cocoa opens innovation center in United States
Supplier Innovations -- Reduce calories and fat in food products
Supplier Innovations -- Ingredion adds to line of snack texturizers
Supplier Innovations -- Tate & Lyle hosts texture science event
Classifieds
Marketplace Business Network
Ad Index
Archive
Milling & Baking News - May 9, 2017 - Late News -- NAMA elects new vice-chairman
Milling & Baking News - May 9, 2017 - 2
Milling & Baking News - May 9, 2017 - 3
Milling & Baking News - May 9, 2017 - News -- Whole grains fizzle underscored in Trump move
Milling & Baking News - May 9, 2017 - 5
Milling & Baking News - May 9, 2017 - 6
Milling & Baking News - May 9, 2017 - Editorial -- Milling's role in a strong Turkey
Milling & Baking News - May 9, 2017 - Late News -- Einstein Noah launches caffeinated bagels
Milling & Baking News - May 9, 2017 - 9
Milling & Baking News - May 9, 2017 - Business -- Middleby Bakery Group acquires Burford, sets stage for global expansion
Milling & Baking News - May 9, 2017 - Business -- Blackford Capital to invest in Ellison; Rob Ellis set to retire
Milling & Baking News - May 9, 2017 - Financial Results -- ‘We own that category’ — biscuits at heart of Mondelez challenges
Milling & Baking News - May 9, 2017 - 13
Milling & Baking News - May 9, 2017 - Financial Results -- Bimbo says U.S. business improved after unusual January weakness
Milling & Baking News - May 9, 2017 - 15
Milling & Baking News - May 9, 2017 - Financial Results -- Textures and emulsifiers play key role in growth at Ingredion
Milling & Baking News - May 9, 2017 - Financial Results -- Gruma USA income eases in quarter, but volumes remain strong
Milling & Baking News - May 9, 2017 - People -- New organizational structure at Flowers; leadership realigned
Milling & Baking News - May 9, 2017 - People -- Jeff Thomas named president, c.e.o. of Miller Milling
Milling & Baking News - May 9, 2017 - Industry Activities -- Perdue gives schools more flexibility in nutrition standards
Milling & Baking News - May 9, 2017 - Industry Activities -- K-State hires coordinator for global food systems initiative
Milling & Baking News - May 9, 2017 - Transportation and Distribution -- Low prices, strong demand boost first-quarter grain exports to record high
Milling & Baking News - May 9, 2017 - 23
Milling & Baking News - May 9, 2017 - 24
Milling & Baking News - May 9, 2017 - 25
Milling & Baking News - May 9, 2017 - 26
Milling & Baking News - May 9, 2017 - 27
Milling & Baking News - May 9, 2017 - I.A.O.M. Review -- Elevated importance of safety stressed by Ardent Mills c.e.o.
Milling & Baking News - May 9, 2017 - 29
Milling & Baking News - May 9, 2017 - I.A.O.M. Review -- ‘Reborn’ Henry Simon equipment unveiled at I.A.O.M.
Milling & Baking News - May 9, 2017 - 31
Milling & Baking News - May 9, 2017 - I.A.O.M. Review -- O’Brien of Rogers Foods named Milling Operative of the Year
Milling & Baking News - May 9, 2017 - 33
Milling & Baking News - May 9, 2017 - I.A.O.M. Photos -- Milling industry gathers in New Orleans for I.A.O.M. Conference and Expo
Milling & Baking News - May 9, 2017 - 35
Milling & Baking News - May 9, 2017 - Data -- 2 016 fl our production estimates revised downward 1.7 million cwts
Milling & Baking News - May 9, 2017 - 37
Milling & Baking News - May 9, 2017 - Data -- I.G.C. raises 2017-18 world wheat crop forecast
Milling & Baking News - May 9, 2017 - Ingredient Market Trends -- Wheat tour forecasts average Kansas wheat yield at 46.1 bus per acre, crop at 281.7 million bus
Milling & Baking News - May 9, 2017 - Ingredient Week
Milling & Baking News - May 9, 2017 - 41
Milling & Baking News - May 9, 2017 - 42
Milling & Baking News - May 9, 2017 - 43
Milling & Baking News - May 9, 2017 - 44
Milling & Baking News - May 9, 2017 - 45
Milling & Baking News - May 9, 2017 - 46
Milling & Baking News - May 9, 2017 - 47
Milling & Baking News - May 9, 2017 - 48
Milling & Baking News - May 9, 2017 - Supplier Innovations -- Tate & Lyle hosts texture science event
Milling & Baking News - May 9, 2017 - Classifieds
Milling & Baking News - May 9, 2017 - Marketplace Business Network
Milling & Baking News - May 9, 2017 - 52
Milling & Baking News - May 9, 2017 - Ad Index
Milling & Baking News - May 9, 2017 - Archive
Milling & Baking News - May 9, 2017 - 55
Milling & Baking News - May 9, 2017 - 56
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