Milling & Baking News - August 30, 2005 - 5

T H I S

W E E K

August 30, 2005
Vol. 84, No. 26

NEWSCOMMENT

BREAD

industry

perspective

BREAD

industry

perspective

Baking companies
retooling businesses,
product lines
Story on Page 1

14

Sara Lee to close three bakeries, transfer production

16

Imperial Sugar sells Holly to cooperative

20

Survey affirms popularity of white bread

22

Cargill fiscal year income tops $2 billion

24

Smucker net income falls despite record revenue

Plants to shut down in Birmingham, Ala.; Milwaukee; and Redding, Calif. Bread
and bun production at the Milwaukee plant will move to other bakeries in the
Upper Midwest. The closings in total will eliminate 170 jobs.

Terms of the sale to Southern Minnesota Beet Sugars Cooperative include an
estimated price of $50 million. Southern Minnesota markets its sugar through
Cargill Sweeteners and co-products through Midwest Agri-Commodities Co.

Data from the Grain Foods Foundation show 84% of parents of children under
age 12 use enriched white bread for sandwiches in school lunches. Peanut butter
ranks as the most popular sandwich.

Results easily surpass last year's $1.33 billion thanks in part to a non-cash net
gain of $578 million realized in the second quarter. Revenues total $71.1 billion,
up 13% from the previous year.

Higher marketing and interest expenses have effects as net income dips 9%
to $29,897,000 in the first quarter. Sales of $510,331,000 mark a 23% increase.
International Multifoods' business contributes $154.3 million in sales.

Editorial
Business
People
Nutrition and Health
Financial Results

g

akn

vs.

EDITORIAL STAFF
Editor-in-chief
Morton I. Sosland
Executive editor, markets
Neil N. Sosland
Editor
L. Joshua Sosland
Senior editor, markets
Jay S. Sjerven

BPA MEMBERSHIP APPLIED FOR NOVEMBER, 2004

9
12
18
20
22

Corn Wet Milling
Export and Trade Issues
Data
Supplier Innovations
Archive

38
40
42
56
62

Managing editor
Vice-president, chief financial officer
Eric J. Schroeder
Melanie Hepperly
Associate editor
Director of manufacturing
Jeff Gelski
Vance Spearman
Assistant editor
Director of circulation
Ron Sterk
Gwendolyn Cogshell
Editorial designer, market graphics, data
Director of design services
Christina Sullivan
Sadowna McClun
Feature designer
Circulation manager
Sarah Hill
Judith Arnone
Director of distribution
PUBLISHING STAFF
Gary Humbert
Chairman
Digital systems analyst
Charles S. Sosland
Marj Potts
Vice-chairman
Manager of Advertising Design
L. Joshua Sosland
Becky White
President and publisher
Marketing communications
Mark Sabo
coordinator/reprint manager
Associate publisher
Carrie Land
G. Michael Gude

Rapid shifts in
world wheat trade
as Russia looms
Once more Russia and the Ukraine
are playing a dominant role in global
trade in wheat. Joined by neighboring
Kazakhstan, these former Soviet Bloc
nations are again aggressive sellers,
capturing business on the basis of price
from other countries and displaying an
eagerness to dispose of their 2005 crops
that is not often witnessed in the global
marketplace. When combined with
reduced overall demand, the Eastern
European sellers have gained center stage
to the consternation of other marketers.
In its latest study of the global market,
the International Grains Council raised its
estimate of Russian wheat exports in 200506 to 9 million tonnes, against 7 million
last year and the largest since 13 million in
2002-03. Ukraine's exports are forecast at
6 million tonnes and Kazakhstan 5 million.
That three-country total of 20 million
tonnes would be second only to U.S.
exports of 26.5 million.
Coincident with this aggressive selling
is a decrease in expected global trade to
108 million tonnes. Most significant in this
regard is the I.G.C.'s revised estimate of
China's takings. That country's imports this
year are newly forecast at only 4 million
tonnes, down 2 million from the previous
forecast and contrasted with 7 million in
2004-05. At its current export pace, China
actually may be a more active seller on
the global market than expected just as its
needs are shrinking. The 2005-06 wheat
year is turning out to have more surprises
on the selling than the buying side. MBN

ND
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2004 by Sosland Publishing Co. All rights reserved.
Sosland Publishing Co., a division of Sosland Companies, Inc.
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6 / Milling & Baking News, August 30, 2005

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Milling & Baking News - August 30, 2005

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