Milling & Baking News - April 5, 2005 - (Page 1)

Theinewsweeklyiofigrain-basedifoods Prince sees baking industry recovering from deep abyss ORLANDO, FLA. - Without blithely ignoring many difficulties facing the baking industry in 2005, considerable improvement in industry conditions must be acknowledged, said Gary J. Prince, president of Weston Foods, Horsham, Pa. "The improvement begins with what's happening with the fading Atkins diet," Mr. Prince said. "We're still in a valley of declining white bread demand, but whole wheat is a great opportunity for us as an industry. That's big news. While in the short term it's painful, the long-term picture for the industry is very positive." Mr. Prince, who is beginning his second year as chairman of the American Bakers LATE Association, spoke with Milling & Baking News March 22 at the A.B.A. annual meeting. The gathering was held March 20-23 at the Ritz-Carlton, Orlando-Grand Lakes. The meeting featured a wide range of programming, including a presentation by former Secretary of Homeland Security Tom Ridge. A Bakers PAC dinner on March 21 drew the largest audience in 15 years, raising $70,000 in one evening, against an annual budget of $120,000. Senator Zell Miller of Georgia was the keynote speaker at the dinner. During the interview, Mr. Prince reflected on what has transpired in the baking Continued on Page 20 Sharp fall affirmed in total and per capita wheat flour use WASHINGTON - Confirming the worst of preliminary estimates, the Economic Research Service said that domestic use of wheat flour in the United States in 2004 fell to the smallest total in a decade, while per capita use dropped to the lowest it has been in 16 years, or since 1989. In effect, the E.R.S. estimates of flour use affirmed that much of the consumption gain posted in the last half of the final decade of the 20th century has been wiped out by the reductions posted thus far in the 21st century. According to the E.R.S. data, presented in the annual Wheat Situation and Outlook Yearbook, domestic use of wheat flour in 2004 amounted to 390,840,000 cwts, down 6,894,000, or 1.7%, from the prior year. This setback was deemed to be especially disappointing, since it followed an increase of Continued on Page 12 COOKIE industry perspective comeback? Story on Page 26 inside APRIL 5, 2005 / NEWS WA S H I N G T O N - Area seeded to all wheat in the U.S. for harvest in 2005 was projected at 58,592,000 acres, down 2% from 59,592,000 acres in 2004. The wheat planted area forecast, issued March 31 by the National Agricultural Statistics Service of the U.S. Department of Agriculture, was the smallest since 1972 but still toward the high end of pre-report trade expectations. Winter wheat area for 2005 of 41,613,000 acres was down 4% from last year but up slightly from the estimate of 41,567,000 acres contained in the Department's January winter wheat Continued on Page 10 All-wheat area smallest since '72 Kraft Foods launches reformulated Nabisco KidSense snacks EAST HANOVER, N.J. - Nabisco is introducing three new varieties of its products specifically for children, Kraft Foods said last week. The new KidSense Fun Packs consist of Teddy Grahams Cubs (Cinnamon), Kraft Cheese Nips Sport Crisps and Smilin' Ritz Bits that have been reformulated to address some of parents' concerns about fat, sugar and artificial ingredients. KidSense products meet Kraft's Sensible Snacking/Sensible Solution nutrition criteria for better-for-you cookies and crackers, the company said. KidSense Fun Packs are packaged into single-serving pouches that provide a Continued on Page 33 THIS WEEK ConAgra closes Rapid City flour mill 16 Ingredient Marketing experts to speak at B.&C.M.A. Cereal makers hold firm on low sugar claims 18 32 Week sponsored by 34

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Milling & Baking News - April 5, 2005