Milling & Baking News - February 14, 2006 - (Page 1)

Theinewsweeklyiofigrain-basedifoods U.S.D.A. budget emphasizes security, aims to limit other costs WASHINGTON - Secretary of Agriculture Mike Johanns on Feb. 6 unveiled the Bush administration's proposed fiscal year 2007 budget for the U.S. Department of Agriculture. In keeping with the administration's stated intent of reining in spending, Mr. Johanns proposed total U.S.D.A. outlays in 2007 at $92.8 billion, down $2.9 billion from estimated expenditures in the current year ending Sept. 30, 2006. Fiscal 2005 outlays totaled $85 billion. As in each of the president's budgets submitted to Congress since the terrorist attacks of Sept. 11, 2001, the administration emphasized the need to support programs relating to ensuring the security of the U.S. N E W S F E AT U R E food supply. Mr. Johanns proposed budget savings come from reduced outlays in other mandatory and discretionary programs. Outlays on mandatory U.S.D.A. programs in fiscal 2007 were proposed at $71.3 billion, down $1.7 billion from estimated fiscal 2006 expenditures. Mandatory programs provide services required by law and include most nutrition assistance programs, farm commodity programs, export promotion programs and a number of conservation programs. Such programs may be limited by legislation but not eliminated. Outlays on discretionary programs in fiscal 2007 were proposed at $21.5 billion, down Continued on Page 18 LATE keted domestically in fiscal year 2006." The Feb. 3 announcement followed by three days a discussion on sugar and other industry issues between Secretary of Agriculture Mike Johanns and Robb MacKie, president and chief executive officer of the American Bakers Association. "Secretary Johanns and I had a very good dialogue regarding the wholesale baking Continued on Page 43 NEWS Flour output nearly steady The Power of Whole Grains Council pushes action plan to increase whole Sugar supply restrictions eased; moves follow dialogue with MacKie WASHINGTON - The U.S. Department of Agriculture has raised the overall allotment quantity (O.A.Q.) for domestic sugar and increased sugar import quotas to meet domestic sugar needs in the 2005-06 marketing year. The U.S.D.A. said it increased the O.A.Q. by 525,000 tons, raw value, to 9,350,000 tons to "permit all beet and cane sugar produced in the United States to be mar- FEBRUARY 14, 2006 / WASHINGTON - Production of flour by U.S. mills in 2005 totaled 393,129,000 cwts, down 0.2% from 393,925,000 in 2004, according to preliminary estimates by the U.S. Department of Commerce's Bureau of the Census. Output was the smallest since 1995, when it was 388,689,000 cwts and was 28,141,000 cwts below the record 421,270,000 cwts Continued on Page 8 inside grains intake Story on Page 31 Benefits of a low-fat diet brought into question in new study CHICAGO - A series of articles in the Feb. 8 issue of the Journal of the American Medical Association deconstructs the presumed benefits of a low-fat diet. A study that included nearly 50,000 women followed over 8 years indicates a diet low in fat, but high in fruit, vegetables and grains, does not significantly reduce the risk of breast cancer, colorectal cancer or cardiovascular disease in postmenopausal women. In the first article, Dr. Ross L. Prentice of the Fred Hutchinson Cancer Research Center, Seattle, and colleagues with the Women's Health Initiative (W.H.I.) Dietary Modification Trial, examined the effect of a low-fat diet on the incidence of Continued on Page 11 THIS WEEK Flowers Foods to acquire Derst 12 Ingredient World wheat crop forecast cut North Dakota Mill to begin expansion 17 40 Week sponsored by 46

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Milling & Baking News - February 14, 2006