Baking & Snack - August 2006 - 82

specialty organic flours, said Wayne
Flood, vice-president of sales and marketing for Roman Meal.
ConAgra Mills offers organic bread
flour, organic pastry flour and organic
whole wheat flour, Mr. Brown said.
Organic production makes up a small
part of ConAgra's flour business, but

it's growing about 15% per year.

TREAT IT AS SPECIALTY CROP
Food manufacturers considering a
launch of organic grain-based foods
need to be aware of several factors.
For one, organic wheat prices can be
as much as twice as high as standard

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wheat prices, which in turn inflates organic flour prices. Organic wheat also
tends to be lower in protein content, Mr.
Brown noted. For bakers planning on
offering organic high-protein products
such as hearth bread and bagels, they
can expect to pay an additional price
premium, he added.
Second, organic grain crops more
resemble specialty crops or cash crops
than commodity crops, Mr. Brown said.
Boards of trade do not list organic grain
prices. Those prices can fluctuate yearly
and seasonally depending on weather
conditions. Organic grain crops are
more subject to environmental impacts
in both quality and quantity.
Organic grain prices will in turn affect organic flour prices. "Organic flour
is a function of the cost of wheat," Mr.
Brown said. "As the wheat price escalates, flour price escalates."
Because organics are a specialty crop,
buyers cannot apply the same principles they do with conventional crops,
said Tom Cowell, general manager of
Growers International Organic Sales,
Inc. (GIOSI), Winnipeg, MB. Forward
contracts are the best method for mill-

Frequency of Organic
Use: US Consumers

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Nutr t f i orra

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ers and bakers wanting some price
certainty in organic markets, he said.
Mr. Cowell said he believes enough
supply of organic grain is on hand to
meet demand, but the price premium
may turn some buyers away. GIOSI
has a professional grower base that
can adapt and switch product to meet
demand, he said.
"We've never had an issue where
we've had a demand and couldn't
meet supply," he said.

COMPETITION IN OATS
This year has seen a strong demand
for organic oats, but demand for conventional oats has surged, too, according to Mr. Cowell.

Product of U.S.A .

For more information, see Page 129

86 / BAKING & SNACK / August 2006

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Baking & Snack - August 2006

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