Milling & Baking News - June 6, 2006 - (Page 1)

Theinewsweeklyiofigrain-basedifoods Kansas City wheat futures above $5 a bu for the first time since '97 KANSAS CITY - Prices of wheat futures in Kansas City in May surged in recent weeks above $5 a bu for the first time since 1997. A drought-reduced hard red winter wheat crop was the principal factor propelling Kansas City wheat futures higher. At the same time, forecasts for a smaller area planted to spring wheat this year, tightening world wheat supplies and the recent appetite of commodity index funds and other speculators for wheat and other agricultural futures also were features in the six-month rally in prices on the floor of the Kansas City Board of Trade. The U.S. Department of Agriculture on May 12, in its initial projections for 2006 winter wheat production, forecast hard red winter wheat production at 715 million bus, down 215 million bus, or 23%, from 930 million bus last year. The recent 10-year average hard winter wheat outturn was 918 million bus. The Kansas crop was forecast at 319 million bus, down from 380 million in 2005. The Texas crop was projected at 35 million bus, the smallest since 1971. The Oklahoma crop was projected at 68 million bus, the smallest since 1957. The production estimates were based on May 1 conditions. Since that date, crop condition ratings have deteriorated across the Southwest. The harvest was under way Continued on Page 16 Executive S T R A T E G I E S pur chasing Purchasing F Even though their businesses differ greatly in a large number of ways, a number of interesting commonalities emerged between the individuals interviewed. Both Mr. Kulp and Mr. Schuler have spent their entire careers in purchasing and both have remained in a single metropolitan area for their entire careers - Philadelphia in the case of Continued on Page 30 inside LATE NEWS W I N S T O N SALEM, N.C. - Scott Livengood, who retired in January 2005 as chairman of the board and chief executive officer of Krispy Kreme Doughnuts, Inc., has re-entered the baking industry. Mr. Livengood has acquired a 50% stake in Dewey's Bakery, which has three retail locations in Winston-Salem, N.C., also the home of Krispy Kreme Doughnuts, Inc. "It was quickly evident that Scott had a wealth of experience and ideas that would be valuable to Dewey's," said Dewey Guy Wilkerson III, the grandson of Dewey's founder. Mr. Livengood retired from Krispy Kreme while the company Continued on Page 8 Livengood buys into bakery Tate & Lyle to build new corn wet mill in Iowa for $260 million Homebodies or the ninth consecutive year, Milling & Baking News is marking the annual Purchasing Seminar with news features about purchasing executives. This year 's profiled executives are James A. Kulp, senior procurement manager, Campbell Soup Co., Camden, N.J.; and Thad D. Schuler, senior purchasing manager, Panera Bread Co., St. Louis. JUNE 6, 2006 / LONDON - Tate & Lyle P.L.C. has announced plans to build the first phase of a corn wet milling plant in Fort Dodge, Iowa. The $260 million investment will build a facility with the capacity to mill 150,000 bus of corn per day. An identical second phase project adding another 150,000 bus is planned, the company said. The project will "alleviate projected capacity constraints" in the company's value-added starch facilities and will increase its participation in the market for renewable fuels, Tate & Lyle said. New proprietary technology already Continued on Page 12 THIS WEEK Hodgson Mill acquired by manager New marketing executive joins I.B.C. 10 22 Ingredient Kansas on top in flour production 26 Week sponsored by 48

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Milling & Baking News - June 6, 2006