Milling & Baking News - December 18, 2007 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS DECEMBER 18, 2007 / Senate rejects effort to reform U.S. farm programs FEATURE Indulgent and functional Chocolate, fruit flavors and trans-fat free inclusions add value to baked foods. Story on Page 17 LATE NEWS Bimbo stays out of bid for I.B.C. MEXICO CITY - Grupo Bimbo S.A.B. de C.V. was prominent in its absence last week in a bid to acquire Interstate Bakeries Corp. The International Brotherhood of Teamsters and Yucaipa Cos. L.L.C. on Dec. 13 submitted a preliminary bid to bring Kansas City-based I.B.C. out of bankruptcy under control of Yucaipa, an investment firm. The plan of reorganization provides for the payment in full of claims held by I.B.C.'s senior secured lenders and values the business at an enterprise valuation of $580 million, according to the Teamsters. Bimbo Bakeries USA, a subsidiary of Continued on Page 8 WASHINGTON - A last-ditch effort to overhaul U.S. farm programs failed in the Senate last week. Senator Richard G. Lugar of Indiana and Senator Frank Lautenberg of New Jersey sought approval for their amendment to the farm bill that would have replaced current farm subsidy programs based on direct payments, marketing loans and countercyclical payments by a revenue insurance program available to all farmers, not only producers of congressionally designated Lugar crops. The amendment, titled the Farm, Ranch, Equity, Stewardship and Health Act, was rejected by the Senate on Dec. 11 by a vote of 37 in favor to 58 opposed. Mr. Lugar, a long-standing proponent of farm program reform, in introducing his amendment said, "Agriculture policy is too important for rural America and the economic and budgetary health of our country to continue the current misguided path." Mr. Lugar said current farm programs unfairly favored the largest producers of program crops, transferring taxpayer dollars into the hands of producers even when market prices for their crops are record high. Meanwhile, smaller farmers and producers of nonprogram crops receive no assistance at all through the commodity title of the farm bill. He said current programs favor farmland consolidation and the reduction in the number of farm family households. Additionally, farm programs that would be continued under the farm bill being considered by the Senate would be subject to challenge by trading partners for being excessively trade distorting. Mr. Lugar's alternative to current farm support programs would have Continued on Page 15 U.S.D.A. projects the smallest wheat carryover in 60 years WASHINGTON - The National Agricultural Statistics Service of the U.S. Department of Agriculture on Dec. 11 projected the U.S. carryover of wheat on June 1, 2008, at 280 million bus, down 32 million bus from its November projection of 312 million bus and down 176 million bus from 456 million bus in 2007. It would the smallest wheat carryover in 60 years. Total wheat supply in 2007-08 was estimated at 2,613 million bus, unchanged from November but up 108 million bus from 2006-07. Production in 2007 was estimated at 2,067 million bus, unchanged from the November estimate and up 255 million bus, or 14%, from last year's outturn of 1,812 million bus. Imports in 2007-08 were projected at 90 million bus, unchanged from November but down 32 million bus from the previous year. Total wheat disappearance in 2007-08 was projected at 2,333 million bus, up 32 million bus from the November forecast and up 284 million bus from 2,049 million bus in 2006-07. Food use of wheat in 2007-08 was projected at 945 million bus, up 5 million bus from November and up 12 million bus from the previous year. The increase in the food use forecast was based on recent mill grind Continued on Page 30

Table of Contents for the Digital Edition of Milling & Baking News - December 18, 2007


Milling & Baking News - December 18, 2007