Milling & Baking News - July 27, 2004 - (Page 1)

Theinewsweeklyiofigrain-basedifoods / High vomitoxin levels challenge soft red, white wheat millers KANSAS CITY - Millers have reported high levels of the mold Fusarium graminearum, more commonly known as fusarium head blight, or scab, and its toxic byproduct, deoxynivalenol, or vomitoxin, in the soft red wheat states of Kentucky, Tennessee, Ohio, Indiana and Illinois, and the white winter wheat state of Michigan. Most millers contacted in those states agreed that dealing with vomitoxin would be a challenge this year, and could add as much as 40c per bu to their cost if large amounts of wheat have to be "imported" from other states for blending. Western Kentucky appears the most LATE severely affected. Robert Harper, president of Hopkinsville Milling Co., Hopkinsville, Ky., said his mill had received no soft red wheat free of vomitoxin, and little wheat with less than 2 parts per million. Even wheat with higher test weights tested positive, Mr. Harper added. Although prevalent in western Kentucky last year, vomitoxin has "never been this bad," Mr. Harper said. Another source at a large milling company called the Kentucky crop "a disaster" because of vomitoxin and light test weights. More rain during harvest resulted in lower test weights for wheat harvested the Continued on Page 11 A.B.F. grows in ingredients with acquisition from Burns Philp LONDON - Associated British Foods P.L.C. on July 22 announced an agreement to acquire the international yeast, baking ingredients and U.S. herbs and spices businesses from Burns, Philp & Co. Ltd. of Australia. A.B.F. will pay $1.35 billion for the purchase, which is subject to regulatory approvals. By combining the acquired business with its existing assets, A.B.F. will "create a major new force" in the baking ingredients market, the company said. In U.S. baking ingredients, the acquisition will bring together significant operations, including the Fleischmann yeast business of Burns Philp and the Cereform specialty ingredients business of A.B.F. "These businesses are a perfect fit for A.B.F.," said Peter Jackson, chief executive Continued on Page 16 N E W S F E AT U R E Wheat prices should follow corn market into fall harvest, exports to slow Story on Page 23 inside JULY 27, 2004 NEWS TORONTO - Net income at Canada Bread Co., Ltd. rose to C$15,799,000 ($12,001,000) in the second quarter ended June 30, up 72% from C$9,183,000 in the second quarter of 2003. Sales in the quarter were C$329,668,000 ($250,353,000), up 5% from C$312,516,000 in the same year-ago quarter. The company said increases in sales and volumes largely reflected strong performance in its Fresh Bakery Continued on Page 8 Strong baking results at Canada Bread Judi Adams named first president of grain-based foods foundation WASHINGTON - The Foundation for the Advancement of Grain-Based Foods late last week named Judi Adams as the first president of the organization, bringing more than 30 years of nutrition experience to the position. Ms. Adams, who has been president of the Wheat Foods Council since 1991, will assume her new role on Sept. 1. In her new position, she will be an administrator of the foundation, overseeing and implementing a national public relations campaign for bread and other grain-based foods that is expected to be unveiled in October. "Ms. Adams brings to the job vast expertise in the areas of nutrition and grainbased foods," said Gary Prince, president of Weston Foods, Inc., chairman of the American Bakers Association and a foundation trustee. "She is well respected by the entire nutrition community and will be Continued on Page 12 THIS WEEK Interstate Bakeries, Sara Lee in cutbacks 9 Ingredient Kraft Foods earnings fall sharply in quarter 14 New effort to jump start trade negotiations 28 Week 31

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Milling & Baking News - July 27, 2004