Milling & Baking News - January 11, 2005 - (Page 1)

Theinewsweeklyiofigrain-basedifoods Year-end REVIEW / JANUARY 11, 2005 Late rally lifts grain-based foods share prices in '04 B oosted by a strong performance in the second half of the year, grain-based foods companies moved solidly upward in 2004. The Grain-Based Foods Share Index, compiled by Milling & Baking News, rose 14.7% last year, the strongest performance for the index since 2000. At 10852.64, the index ended solidly above the 10000-point mark and the 2003 close of 9462.92. The 1390-point rise was particularly impressive since the gain was squeezed into a very small part of the year. As recently as mid-August, the Grain-Based Foods Share Index stood at 9200, down more than 200 points from the 2003 close. The 1390-point gain in the index, which is based on companies with significant operations in grain-based foods, contrasted with a decline of 487 points in 2003 and gains of 256 and 336 in 2002 and 2001, respectively. The 14.7% jump in grain-based foods shares eclipsed the performance of several major market indices, including a modest 3.15% rise in the Dow Jones average of industrial shares and gains of 8.99% in the S.&P. 500 and the 8.59% gain in the Nasdaq composite index. The grain-based foods index also stacked up well compared with individual S.&P.500 economic sectors, including consumer discretionary, up 12.14%; consumer staples, up 6.04%; financials, up 8.22%; health care, up 0.23%; technology, up 2.14%; and materials, up 10.77%. Grain-based Continued on Page 23 After decline in 2004, hard white wheat seen at crossroads WASHINGTON - Hard white wheat production in the United States may be at a crossroads following an acreage decline in 2004, the first downturn in at least six years, according to a report from the Economic Research Service of the U.S. Department of Agriculture. While exact acreage for hard white wheat has been difficult to precisely calculate, the E.R.S. estimated hard white plantings for harvest in 2004 at about 846,000 acres, down 54,000 acres, or 6%, from an estimated 900,000 planted acres for 2003. LATE It was the first decline in hard white wheat acreage since the U.S.D.A. began reporting data for the class. The E.R.S. does not list hard white as a separate class in its regular monthly crop production reports. By comparison, 2004 all-wheat plantings were down 4% from 2003, and harvested acreage was down 5%. Winter wheat seedings for 2004 were down 4% from 2003, while winter wheat harvested area was down 6%. Hard white wheat plantings increased Continued on Page 16 Krispy Kreme potential problems mount with filing delayed further WINSTON-SALEM, N.C. - In an 8-K form submitted Jan. 4 to the Securities and Exchange Commission, Krispy Kreme Doughnuts, Inc. shed light on the depth of accounting difficulties that have pre- vented the company from filing financial statements with the S.E.C. for the quarter ended Oct. 31. While the company said last month it Continued on Page 10 inside NEWS M A N H AT TA N , KAS. - The board of trustees of the American Institute of Baking has elected James Munyon as president effective Jan. 31. Mr. Munyon currently is senior vice-president of strategic planning for J.R. Simplot Co., an agribusiness manufacturing and marketing company in Boise, Idaho, and chairman of the American Frozen Food Institute. He takes over a post vacated when Virgil W. Smail left the A.I.B. and became Munyon head of the Department of Grain Science Continued on Page 8 A.I.B. selects new president THIS WEEK Ingredient Atkins, adherence fare poorly in diet study Chief financial officer named at Smucker 15 21 Changes in Common Agricultural Policy 29 Week 30

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Milling & Baking News - January 11, 2005