Milling & Baking News - August 29, 2006 - 4

T H I S

W E E K

August 29, 2006
Vol. 85, No. 13

NEWSCOMMENT

NEWS

Echoes of StarLink in
Bayer rice episode

F E AT U R E

Tight U.S. and world
wheat supplies keep
markets on edge
Story on Page 27

10

Moody's raises Kellogg's long-term debt ratings

16

Baking business drives net gain at Flowers

18

I.B.C. again sustains loss in four-week period

24

Kansas, California-Hawaii top states in flour

35

Rich Products names corporate vice-chairman

Moving the senior unsecured debt rating to A3 from Baa1 affects about $5 billion
in debt securities. Moody's Investors Service also retains the "stable" outlook for
The Kellogg Co.

Second-quarter net income at Flowers Foods, Inc. rises 12% to $19,724,000. Sales
of Nature's Own Whitewheat bread increase double digits in the Bakeries Group.
Branded sales jump 13%.

Interstate Bakeries Corp. posts a loss of $4,140,277 in the four weeks ended July 1.
A month ago, the bakery reported a profit for the five-week period ended June 3,
the first profit since July 2005.

The Bureau of the Census rankings for the first half of 2006 came in virtually
identical to the 2005 annual summary. Flour production increases in nine states.
Six states show a decrease.

Melinda (Mindy) Rich will still lead the company's "culture of innovation" by
directing Rich's creativity and by helping to identify innovative products geared
toward accelerating company growth.

Editorial
Late News
Business
Washington
Financial Results
Data

g
akin ews.
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

7
8
10
14
16
20

International
People
Industry Activities
Corn Wet Milling
Supplier Innovations
Archive

34
35
36
37
48
54

Managing editor
Vice-president, chief financial officer
Eric J. Schroeder
Melanie Hepperly
Associate editor
Audience development director
Jeff Gelski
Don Keating
Assistant editor
Director of design services
Ron Sterk
Sadowna Conarroe
Assistant editor
Circulation manager
Sarah Sosland
Judith Arnone
Graphic designer, market graphics, data
Director of distribution
Christina Sullivan
Gary Humbert
Digital systems analyst
PUBLISHING STAFF
Marj Potts
Chairman
Manager of Advertising Design
Charles S. Sosland
Becky White
Vice-chairman
Marketing communications
L. Joshua Sosland
coordinator/reprint manager
President and publisher
Carrie Fluegge
Mark Sabo
Associate publisher
G. Michael Gude

For the U.S. grain milling industry, the
disclosure that trace amounts of nonapproved bioengineered rice had entered
commercial channels evoked memories of
the 2000 disclosure that the StarLink corn
variety had been discovered in the food
supply. It certainly may be hoped that the
current incident will not create the longlasting disruptions of StarLink.
Even today, six years after the corn variety
with the Cry9C protein was found in the
food supply (it had been approved as feed),
corn millers are still required to test every
load of corn they receive in the off chance
residual traces of StarLink remain. This
mandate persists even though no conclusive
evidence exists that a single person has
been harmed by consuming corn products
containing StarLink. In the case of the Bayer
CropScience rice variety that was recently
detected in commercial channels, there is
every reason to believe no such disruptions
will occur, the Japanese import ban and
European saber-rattling notwithstanding.
The LibertyLink protein the rice contains
already has been approved in other rice
varieties on the market. The non-approved
variety will be evaluated and likely will be
approved in coming months.
Still, the spectacle of the Secretary of
Agriculture announcing the rice discovery
at a news conference suggests something
amiss in regulating bioengineered grains.
Systems should be created to deal
with the adventitious presence of nonapproved grains (trace amounts that are
not consequential for food safety) so
these situations may be dealt with more
matter-of-factly. MBN

SOSL4ND
P U B L I S H I N G

COMPANY

4800 Main St., Suite 100. Kansas
City, Mo. 64112 Phone: (816)
756-1000. Fax: (816) 756-0494.
E-mail: mbn@sosland.com

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Milling & Baking News - August 29, 2006

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