Milling & Baking News - July 4, 2017 - 1
THE NEWS WEEKLY OF GRAIN-BASED FOODS
JULY 4, 2017
bakingbusiness.com / foodbusinessnews.net
Grain groups caution government
on trade talks with Canada, Mexico
innovation in IFT17
Story on Page 24
wheat acreage down
Department of Agriculture in its June
30 Acreage report estimated 2017
area planted to corn at 90,886,000
acres, down 3% from 2016. Soybean
planted area was estimated at
89,513,000 acres, up 7% from 2016.
All wheat planted area for harvest
in 2017 was estimated at 45,657,000
acres, down 9% from 2016 and the
lowest since records began in 1919.
Winter wheat planted area was
estimated at 32,839,000 acres, down
9% (including hard red winter at 23.8
million and soft red winter at 5.61
million). Durum was estimated at
1,919,000 acres, down 20%, and other
Continued on Page 8
WASHINGTON - The U.S. Trade
Representative is holding public hearings concerning the upcoming negotiations of the North American Free
Trade Agreement (NAFTA) with
Mexico and Canada.
The public hearings follow
the U.S.T.R.'s 90-day notification to Congress on May
18 regarding intent to renegotiate NAFTA as well as
the U.S.T.R.'s Federal Register notice published May 23
requesting public comment.
Since the Trump administration announced its intention to renegotiate NAFTA, grain groups such as
the U.S. Wheat Associates (U.S. Wheat),
the National Association of Wheat
Growers (NAWG), the U.S. Grains
Council (U.S.G.C.) and the National
Corn Growers Association (N.C.G.A.)
have urged the government to not harm
its trade relationships with Canada and
The groups testified to the U.S.T.R.
during the first day of public hearings
on June 27.
"NAFTA has been one of the
most advantageous trade
agreements for wheat farmers in U.S. history," said
Chandler Goule, chief executive officer of NAWG.
"By removing import
tariffs, NAFTA has established a crucial market for
wheat producers in Mexico."
A continued voice of support
was given to updating sanitary and phytosanitary rules within NAFTA.
"Some improvements can be made
that benefit the food and agriculture sectors in both countries," Mr. Goule said.
"For instance, a new agreement should
Continued on Page 16
New c.e.o. maps out General Mills
plans to reignite sales growth
MINNEAPOLIS - Following a year in
which neither sales nor earnings met the
company's targets, growing the cereal
business of General Mills, Inc. will be a
top priority in fiscal 2018, said Jeffrey L.
Harmening, chief executive officer.
In a June 28 conference call with investment analysts, Mr. Harmening identified keys to re-igniting sales growth in
the new fiscal year. It was his first call
as c.e.o., having succeeded Kendall J.
Powell on June 1.
Net income in the fiscal year ended
May 28 totaled $1,657.5 million, equal
to $2.82 per share on the common stock,
down 2% from $1,697.4 million, or
$2.83 per share, in fiscal 2016. Net sales
also were lower, falling nearly 6% to
$15,619.8 million from $16,563.1 million.
"Fiscal '17 was a year of significant
change for General Mills," Mr. Harmening said. "We implemented a new
global organizational structure (and)
continued our journey to become a truly
global food company. We also accelerated some important cost-savings efforts
to improve our efficiency. These efforts went according to plan, and we're
Continued on Page 18