Milling & Baking News - March 28, 2006 - 1

Theinewsweeklyiofigrain-basedifoods

Domestic wheat flour use gains, but
per capita dips in 2005
WASHINGTON - Initial estimates by the
Economic Research Service of the U.S. Department of Agriculture confirm indications
that domestic disappearance of wheat flour
posted a small increase in 2005, but cut back
on the size of the gain. The E.R.S. calculations also showed a further setback in per
capita consumption of wheat flour in the
United States instead of the earlier analysis
pointing to this number holding unchanged
from 2004 in the wake of prior setbacks.
According to the E.R.S., disappearance of wheat flour in 2005 amounted
to 396,035,000 cwts, up 1,206,000 from
394,829,000 in the prior year. The early
tentative analysis of flour disappearance in 2005 pointed to a net use total

of 397,500,000, which the E.R.S. now has
reduced to 396,035,000.
At the indicated level, which is subject
to change with revised estimates of 2005
flour production, disappearance was down
17,204,000 cwts, or 4%, from the peak of
413,239,000 reached in 2000, the final year of
the 20th century. That setback in the first half
of the first decade of the 21st century contrasts
with the aggregate increase of 73,318,000
cwts that occurred in flour consumption during the 1990s. If consumption falls in the full
decade, it would be the first time that has occurred in a full century of records.
Dividing the estimate of domestic disappearance by July 1 U.S. population results
Continued on Page 14

General Mills third-quarter profit
climbs 7%; sales up 3%
MINNEAPOLIS - Strong top-line growth
across all of its business units helped General Mills, Inc. overcome higher input costs,
higher employee benefits expense and increased advertising investment in the third
quarter ended Feb. 26. Net income in the
quarter was $246 million, equal to 69c per
share on the common stock, up 7% from
$230 million, or 63c per share, in the third

quarter of fiscal 2005. Both quarters included
a restructuring charge of 1c per share, while
2005 results also were lowered by 15c per
share for accounting and expense matters.
General Mills posted net sales of $2,860
million in the third quarter, which was
3% higher than the previous year's third
quarter. Segment operating profits of $479
Continued on Page 13

A need for
proof
Story on Page 21
inside

MARCH 28, 2006

bakingbusiness.com / world-grain.com

LATE

NEWS
OMAHA
-
ConAgra
Foods
Inc. last week reported a $31.7 million loss for the
third quarter ended Feb. 26, which
compared with net income of
$163.3 million, or 32c per share, in
the previous year's third quarter.
The loss per share was impacted
by 43c per share of net expense
from items that impact comparability, which largely included
impairment charges, restructuring charges associated with
implementing cost-savings programs and litigation charges. Net
sales for the third quarter were
$2,878.9 million, a 4.4% increase
Continued on Page 8

ConAgra
loses $31.7
million in Q3

Millers expect soft
red production to
bounce back in 2006
MARCO ISLAND, FLA. - Production of
soft red winter wheat in 2006 should rebound smartly from the 19-year-low outturn recorded last year, a panel of grain
and milling industry executives told members of the Soft Wheat Milling Committee
of the North American Millers' Association
during that group's annual meeting March
14 on Marco Island. The panel projected
2006 soft red winter wheat production at
362,866,000 bus, up 53,845,000 bus, or 17%,
from 309,021,000 bus in 2005.
The projected 2006 outturn was slightly
above the recent five-year (2001-05) average soft red winter production of 358 million bus, but below the 10-year (1996-2005)
Continued on Page 16

THIS WEEK

Turano
elected
A.B.A.
chairman

Ingredient

Interstate
Bakeries
loss tops
$20 million

Cargill
names lab
in honor of
Frost

Week
sponsored by

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - March 28, 2006

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