Milling & Baking News - November 21, 2006 - (Page 1)

Theinewsweeklyiofigrain-basedifoods Flour output gains 1.2% in third quarter; near five-year high WASHINGTON - Flour production by U.S. mills in the third quarter of 2006 increased 1.2% over the same 2005 quarter to within reach of setting a five-year peak, according to the Bureau of the Census of the U.S. Department of Commerce. Output in the quarter totaled 103,687,000 cwts, up 1,210,000 from 102,477,000 in July-September 2005. The quarter was the first since late 2000 in which U.S. flour mills operated at more than 90% of capacity. Suggesting a trend, the gain over JulySeptember 2005 marked the fifth consecutive quarterly year-to-year increase ranging from 130,000 cwts to 1,569,000. This LATE stretch of increases followed four successive quarterly decreases from a year earlier with those changes ranging from 533,000 to 2,163,000. In turn, that period of reductions came after five successive quarterly rises over a year earlier, varying between 6,000 and 939,000 cwts. Most of the significant year-to-year fluctuations in both 2001 and 2002 were decreases, with the changes ranging from only a single gain of 55,000 cwts to a decrease of as much as 6,761,000. Production of flour by U.S. mills in the first nine months of 2006 increased Continued on Page 18 New agriculture committees begin to take shape in Congress WASHINGTON - Three weeks after elections that will result in Democrats taking control of the Senate and the House of Representatives in 2007, the congressional agriculture committees and their priorities were taking shape. Incoming Senate Majority Leader Harry Reid of Nevada on Nov. 14 confirmed he intends to name Senator Tom Harkin of Iowa as chairman of the Senate Committee on Agriculture, Nutri- tion and Forestry. It was expected Representative Collin Peterson of Minnesota will be named chairman of the House Committee on Agriculture. Mr. Harkin has been a member of the Senate Agriculture Committee since January 1997, and he was the committee's chairman in 2001-2002. During his term as chairman, Mr. Harkin helped craft the Continued on Page 10 Carrying the good stuff Grain-based foods prove their worth in delivering vitamins, calcium and folic acid. Story on Page 23 inside NOVEMBER 21, 2006 / NEWS HEADLAND, ALA. - The Red Star Yeast plant in Headland sustained damage to its roof and siding following a nearby tornado touchdown, but process tanks, piping and employees on site were unharmed. Dean Modglin, director of sales for Red Star Yeast Co., L.L.C., said engineers were on-site, waiting for the restoration of power so they can assess when the plant will be operating again. He said the company has notified its customers that orders are being transferred to its Cedar Rapids, Iowa, plant and that no interruptions in service are expected. Although there Continued on Page 8 Yeast plant struck by tornado Heart disease link to carbohydrate intake not found in research study BOSTON - Carbohydrate intake levels are not a predictor of coronary heart disease risk in women, according to a study published Nov. 9 in The New England Journal of Medicine. The results were based on data on 82,802 women in the Nurses' Health Study who filled out eating surveys, beginning in 1976. The article's authors, including Walter C. Willett, a professor at the Harvard School of Public Health in Boston, examined prospectively the association between the relative intake of carbohydrates and the risk of coronary heart disease. Specifically, the study measured the risk of either non-fatal Continued on Page 45 THIS WEEK S.W.P. in hostile bid for Agricore 14 Ingredient Baking C.P.I. bucks overall trends Flowers Foods earnings rise sharply 21 42 Week sponsored by 46

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Milling & Baking News - November 21, 2006