Milling & Baking News - August 1, 2006 - (Page 1)

Theinewsweeklyiofigrain-basedifoods W.T.O. trade talks break down over agricultural market access GENEVA - Negotiations aimed at securing a new global trade agreement under the auspices of the World Trade Organization broke down July 24. After fives years of talks, consultations and summits, intractable disputes between principal nations over agricultural trade made further progress impossible, at least within the timeframe envisioned for the completion of the Doha round. W.T.O. Director-General Pascal Lamy told negotiators gathered in Geneva he would recommend a "time out" to the organization's General Council on July 27. Mr. Lamy did not indicate how long the talks would be suspended. But he said negotiations should resume only when progress can be made. "We have missed a very important opportunity to show that multilateralism works," Mr. Lamy said. Mr. Lamy decided to suspend negotiations after talks among six major members - the United States, the European Union, Japan, Brazil, India and Australia - ended without progress in bridging gaps on agricultural market access and domestic farm support. Failing to mark progress on agriculture, the six members weren't even able to discuss non-agricultural market access. Indications were E.U. proposals on Continued on Page 14 Horizon Milling agrees to buy Canadian businesses from Smucker ORRVILLE, OHIO - Horizon Milling G.P. reached agreement to acquire the Canadian grain-based food service and industrial businesses of Smucker Foods of Canada Co., a wholly owned subsidiary of The J. M. Smucker Co. The transaction is expected to close by the end of September, subject to regulatory approval. As part of the transaction, Horizon is set GRAIN AND MILLING to acquire three flour milling operations in Montreal; Port Colborne, Ont.; and Saskatoon, Sask.; as well as two dry baking mixing facilities in Montreal and Burlington, Ont. The company also will acquire certain operations related to Smucker Canadian corporate services in Markham and Rexdale, Ont. According to the Grain & Milling Annual Continued on Page 11 MANAGEMENT Shawnee grows and prospers under Ford family leadership Story on Page 26 inside AUGUST 1, 2006 / LATE NEWS WA S H I N G T O N - Secretary of Agriculture Mike Johanns will be the featured speaker at an upcoming joint meeting of the American Bakers Association and the Allied Trade of the Baking Industry. Mr. Johanns will address the group Sept. 13 at the start of the joint meeting. Mr. Johanns was asked to provide his perspective on a range of issues of interest to the baking industry, including the pending reauthorization of the farm bill and matters such as nutrition education, wheat quality and the Women, Infants and Children's (WIC) program. The two-day meeting will be Continued on Page 10 Johanns to address bakers I.B.C. posts profit of $5.8 million in period; first gain in 11 months KANSAS CITY - For only the second time since filing for bankruptcy in September 2004 and the first time since July 2005, Interstate Bakeries Corp. posted a profit in the most recent five-week period. Net income in the five-week period ended June 3 was $5,827,083, which compared with a loss of $7,514,771 in the four-week period ended April 29, according to an 8-K filed July 19 with the Securities and Exchange Commission. Sales in the five weeks ended June 3 were $288,096,466, up 28% from $225,659,272 in the previous four-week period. Operating expenses finished at Continued on Page 18 THIS WEEK Kellogg net climbs 3% in quarter 16 Baked foods index jumps 1.6% 34 Ingredient Chuck Sullivan in major gift to university 35 Week sponsored by 38

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Milling & Baking News - August 1, 2006