Milling & Baking News - February 13, 2007 - (Page 1)

Theinewsweeklyiofigrain-basedifoods LATE NEWS WASHINGTON - Production of flour by U.S. mills in 2006 totaled 397,360,000 cwts, up 0.6% from 394,973,000 in 2005, according to preliminary estimates by the U.S. Department of Commerce's Bureau of the Census. Output was the largest since 2001, when it was 404,521,000 cwts but it was off 23,910,000, or 5.7%, from the record 421,270,000 cwts reached in 2000. The 24-hour capacity at yearend (October-December, 2006) was 1,487,000 cwts, down slightly from 1,492,000 a year ago. Rate of grind in 2006 averaged 87.4% of six-day capacity, up from 86.2% in the prior year. Wheat Continued on Page 10 Flour output to five-year high I.B.C. names Craig Jung, former PepsiCo executive, as new c.e.o. KANSAS CITY - A little more than two years after filing for Chapter 11 bankruptcy and hiring a turnaround firm to revive its business, Interstate Bakeries Corp. on Jan. 30 filed a motion with the Bankruptcy Court requesting authorization to enter into an employment agreement with Craig D. Jung as its new chief executive officer and a member of the company's newly reconstituted board of directors. The motion is scheduled to be heard Feb. 16 and, if approved, would become effective immediately. Mr. Jung, 53, will replace Tony Alvarez II, co-founder and co-c.e.o. of Alvarez & Marsal, a corporate advisory and turnaround Continued on Page 12 FEBRUARY 13, 2007 / U.S.D.A. proposes revamping of agricultural commodity programs WASHINGTON - Secretary of Agriculture Mike Johanns on Jan. 31 tabled a comprehensive proposal for the 2007 farm bill. The cornerstone of any farm bill is its commodity programs. Secretary Johanns' proposal leaves intact the basic structure of farm commodity programs, but with some significant modifications that aimed to make them more market-oriented and less susceptible to challenge by trading partners and competitors. The marketing assistance loan program, loan deficiency payments and counter-cyclical payments remain. But changes to the programs are proposed that the department projects would reduce federal spending on commodity programs by $4,494 million over 10 years (2008-2017) compared with a baseline projecting extension of current services. The marketing assistance loan program is the foundation of government income support to producers. Loan deficiency payments and counter-cyclical payments rest on this foundation. Under the marketing assistance loan program, producers are eligible to receive nine-month non-recourse loans against which their program crops are held as collateral. This enables producers to benefit Continued on Page 33 F.D.A. proposes eliminating 'sugar penalty' for oat food health claims WASHINGTON - Acknowledging that existing rules have fallen prey to the "law of unintended consequences," the Food and Drug Administration has proposed a new rule that would expand the use of the health claim that may be used describing the relationship between soluble fiber from certain foods and risk of coronary heart disease (C.H.D.). Under the proposed rule, detailed in the Feb. 6 issue of the Federal Register, certain cereals with a low sugar content, primarily hot cereals such as those made by The Quaker Oats Co., would be able to promote the benefits of soluble fiber on packages of foods with a higher proportion of fat than previously allowed. The F.D.A. amendment proposes to Continued on Page 13 GRAIN AND MILLING MANAGEMENT MGPI maintains ingredients focus in face of distractions galore Story on Page 26 inside THIS WEEK Greg Page promoted to c.e.o. at Cargill 12 Flowers income rises 32% in year 21 Ingredient U.S.D.A. details proposed '08 budget 32 Week sponsored by 38

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Milling & Baking News - February 13, 2007