Milling & Baking News - April 24, 2007 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS APRIL 24, 2007 / F.A.O. warns of peril posed by spread of virulent wheat rust Let them eat whole grain cake Formulators begin to explore adding whole grains to indulgent items Story on Page 23 LATE NEWS Cereals, snacks income down at Kraft Foods NORTHFIELD, ILL. - The North America Snacks and Cereals unit of Kraft Foods Inc. posted operating income of $248 million in the first quarter ended March 31, down 2% from the same period of last year. Net revenue in the division grew 4% to $1,539 million behind solid volume and mix gains primarily in cookies and crackers. "Within that strong performance, Oreo experienced a temporary revenue decline in response to a Continued on Page 10 Ingredient Week Sponsored by Story on Page 46 ROME - Global wheat yields could be imperiled if a new and virulent fungus spreads from East Africa and the Mideast where it has appeared, according to the Food and Agriculture Organization of the United Nations. Industry observers warned that the spread of the disease to the United States could not be ruled out. The wheat stem rust, known as wheat black rust, is capable of inflicting severe damage, even destroying entire fields, the F.A.O. said. Up to 80% of wheat varieties in Asia and Africa are believed susceptible to the new strain. The spores of wheat rust generally are spread by wind, over long distances and across continents, the group warned. "Global wheat yields could be at risk if the stem rust spreads to major wheat producing countries," said Jacques Di- ouf, F.A.O director-general. "The fungus can spread rapidly and has the potential to cause global crop epidemics and wheat harvest losses of several billion dollars. This could lead to increased wheat prices and local or regional food shortages. Developing countries are relying on wheat and do not have access to resistant varieties that will be particularly hit." A Global Rust Initiative is being led by the International Maize and Wheat Improvement Center (CIMMYT) International Center for Agricultural Research in the Dry Areas. The United States, Canada and India are the principal funders of the G.R.I. The pathogen is known as Ug99, named for Uganda and 1999, where and when it emerged. The disease subsequently U.S.D.A., AGRICULTURAL RESEARCH SERVICE FEATURE Continued on Page 41 Bartlett grows in North Carolina with Wilson's Mills acquisition KANSAS CITY - Bartlett Milling Co. has acquired the Wilson's Mills, N.C., flour mill of Midstate Mills, Inc., Newton, N.C. Bartlett began operating the mill April 16. The 10,000-cwt mill raises Bartlett's daily flour milling capacity to 34,500 cwts. Opened in 2000, the Wilson's Mills facility is one of the nation's newest flour mills. According to Bartlett, the mill "incorporates state-of-the-art mill- ing and product handling technology." The Wilson's Mills flour mill has 600,000 bus of grain storage capacity and will be Bartlett's second North Carolina mill. At Statesville, N.C., Bartlett operates a facility with 13,500 cwts of daily milling capacity, and its Coffeyville, Kas., mill has 11,000 cwts of daily capacity. "Wilson's Mills complements Bartlett's existing flour business by producing a variety of hard and soft wheat flours custom blended to meet the specific needs of its customers," Bartlett said. "It further supports and expands Bartlett's focus on this regional market." Commenting on the transaction, Midstate Mills cited a "long and mutually beneficial" business relationship with Continued on Page 12

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Milling & Baking News - April 24, 2007