Milling & Baking News - November 25, 2003 - (Page 1)

Theinewsweeklyiofigrain-basedifoods / Slotting fees less prevalent in D.S.D. items, F.T.C. affirms WASHINGTON - That direct-store delivery products - including fresh bread - are not as likely to be subjected to retailers' slotting allowances is affirmed in a report just issued by the staff of the Federal Trade Commission. The F.T.C. staff study - "Slotting Allowances in the Retail Grocery Industry: Selected Case Studies in Five Product Categories" - also suggested that slotting fees on bread and other D.S.D. products were smaller than those charged on nonD.S.D. items. The study, the F.T.C. staff report said, was based on "a collection of seven retailer case studies with data, facts and LATE insights that may be indicative of industry practices." The retailers were described as medium and large retailers. The study also involved interviews with numerous suppliers to the retail food industry. The study of slotting allowances in the grocery industry was requested in the conference report for fiscal year 2001 appropriations for the Departments of Commerce, Justice and State. The Commission vote to issue the 119-page staff report was 5-0. Noting that the study results were based on responses by seven retailers, six manufacturers and two food brokers, the F.T.C. staff report said, "The study is based on a Continued on Page 10 NOVEMBER 25, 2003 NEWS WA S H I N G T O N - Output of flour by U.S. mills in the third quarter of 2003 totaled 102,510,000 cwts, according to the Bureau of the Census. This was practically the same as 102,132,000 cwts produced in the same three months of 2002 and also was near the 102,077,000 in July-September 2001. Considering that production in the three preceding quarters lagged a year Continued on Page 8 Flour output in line with year ago Grain railcar shortage hamstrings shippers; it may not end quickly KANSAS CITY - The worst railcar shortage to hit the U.S. grain industry since bumper crops overwhelmed the nation's railroads in 1997-98 has wreaked havoc on post-harvest shipments and shows little signs of letting up soon. The shortage has pushed grain railcar prices up tenfold in some locations, with prices on some new orders reaching as high as $350 per car in the U.S. Plains. Grain merchants there ordinarily pay $25 to $50 per car, depending on terms. Meanwhile, the two largest U.S. rail carriers, Union Pacific Corp. and Burlington Northern Santa Fe Railway, have fallen as much as 30 days behind in meeting cardelivery commitments. Such delays, in some instances, have forced them to pay significant cash penalties to grain shippers awaiting cars. Michael Carmichael, who handles railcar logistics with ADM/Farmland in Overland Park, Kas., said his mostly are Continued on Page 12 House passes energy legislation; Senate consideration expected soon Story on Page 23 WASHINGTON - The House of Representatives on Nov. 18 passed by a vote of 246 to 180 the first comprehensive energy legislation in years. The Energy Policy Act of 2003 was expected to be approved by the Senate as well, with opposition diminished by the inclusion in the bill that emerged from the Congressional conferinside ence committee of several provisions aimed at encouraging expanded use of ethanol and other renewable fuels. "I am pleased with final House passage of the energy bill," said Representative Bob Goodlatte of Virginia, chairman of the House Committee on Agriculture. "It is Continued on Page 29 THIS WEEK Siemer to offer flour treated with heat 11 Ingredient Better financial results at Bimbo Kellogg in Cat in the Hat promotion 14 40 Week 30

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Milling & Baking News - November 25, 2003