Milling & Baking News - November 6, 2007 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS NOVEMBER 6, 2007 / Former North Dakota governor nominated for agriculture secretary FEATURE Blueprint for global green energy Study examines biofuels industry worldwide and identifies opportunities for Brazil, Americas to be world leaders. Story on Page 31 LATE NEWS Kraft net falls 20% despite gain in sales NORTHFIELD, ILL. - Net income at Kraft Foods Inc. in the third quarter ended Sept. 30 was $596 million, equal to 38c per share on the common stock, down 20% from $748 million, or 46c per share, in the third quarter of fiscal 2006. Net sales, meanwhile, climbed 10% to $9,054 million, up from $8,243 million in the same period a year earlier. Net revenue in North America Snacks and Cereals grew 4% to $1,655 million, while operating companies income for the unit fell 6% to $240 million. "Strong product mix in cookies reflected gains from new introductions under the Continued on Page 10 WASHINGTON - President George W. Bush on Oct. 31 nominated Edward Schafer, a former two-term Republican governor of North Dakota, to be secretary of agriculture. If confirmed by the Senate, Mr. Schafer will succeed Mike Johanns, who resigned in order to run for the Senate seat being vacated in 2009 by Senator Chuck Hagel of Nebraska. Charles Conner, former deputy secretary of agriculture, has served as acting secretary since Mr. JoSchafer hanns resigned. "At every stage in his career, Ed has shown wisdom, foresight and creativity," Mr. Bush said while announcing the nomination. "Those same qualities will make him a valuable member of my Cabinet. And they will make him a trusted friend to America's farmers and ranchers." Reviewing his nominee's background, Mr. Bush credited Mr. Schafer with work that helped open agricultural trade with China. Previewing the agenda Mr. Schafer will address if confirmed, Mr. Bush began with the farm bill currently working its way through Congress. "With Ed's leadership we will work with Congress to pass a farm bill that provides farmers with a safety net, protects our land and the environment and spends federal tax dollars wisely. "Ed will also join other members of my administration to continue leveling the playing field for farm products to conclude the Doha round of trade talks. He and I will work hard to open new markets for American beef." In brief remarks, Mr. Schafer emphasized his agricultural roots, thanking his family and the people of North Dakota. "Growing up in that arena, and Continued on Page 37 Teamsters, Bimbo and investment group team up in I.B.C. bid KANSAS CITY - The International Brotherhood of Teamsters said Nov. 2 it was teaming up with a baking company and an investment group in a bid to acquire Interstate Bakeries Corp. Stating that its bid is aimed at "saving thousands of jobs at the bankrupt company," Teamsters said the partnership would bring financing from Yucaipa Companies, a holding company that has focused its activities on food retailing, and "operating prowess" from Bimbo Bakeries USA. The Teamsters described its role in the partnership as "the key component of the distribution system." "A key ingredient of our plan will be a commitment from Ron Burkle and the Yucaipa Companies and Bimbo Bakeries to value the sacrifices of our members and position the company for long-term growth," said Jim Hoffa, Teamsters General president. "Under I.B.C.'s plan, our members were being asked to make the largest sacrifice, putting their faith in an untested delivery system in an entity that had little room for error. It was a recipe for another bankruptcy." The union said its plan involves investments in Interstate Bakeries operations Continued on Page 12

Table of Contents for the Digital Edition of Milling & Baking News - November 6, 2007


Milling & Baking News - November 6, 2007