Milling & Baking News - April 22, 2008 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS APRIL 22, 2008 / FEATURE World Bank calls for stepped-up funding for international food aid Baking Hall of Fame Special coverage begins on Page 19 LATE NEWS Krispy Kreme loss widens in year WINSTON-SALEM, N.C. - Increases in the cost of raw materials and financial pressures on various franchisees are among the factors that negatively impacted financial results for Krispy Kreme Doughnuts, Inc. for the year ended Feb. 3. For the year, the company sustained a loss of $67,051,000, which compared with a loss of $42,236,000 during the previous year. Revenue for the year was $429,319,000, down 7% from $461,195,000 during the previous year. The company said the decreases in revenues are a result of a decrease in company store revenue and supply chain revenue. "Although it's clear Continued on Page 8 WASHINGTON - Rapidly rising food prices that are threatening recent gains in the battle against worldwide poverty prompted the president of the World Bank to urge the international community to meet the crisis head on. In calling for a "New Deal on Global Food Policy," Robert B. Zoellick, president of the World Bank, urged governments to provide the United Nations' World Food Program with $500 million in emergency food aid by May 1. "Poor people are suffering daily Zoellick from the impact of high food prices, especially in urban areas and in lowincome countries," Mr. Zoellick said. "In some countries, hard-won gains in overcoming poverty may now be reversed. As an international community we must rally not only to offer immediate support, but to help countries identify actions and policies to reduce the impact on the world's most vulnerable." As part of the "New Deal," Mr. Zoellick said the World Bank will nearly double its agricultural lending to Sub-Saharan Africa during the next year to $800 million from $450 million, funds that will be used to substantially increase agricultural productivity. In addition, Mr. Zoellick said the International Finance Corp. - the World Bank Group's private sector development unit - will step up its agribusiness investments. Mr. Zoellick also proposed that sovereign wealth funds around the world give $30 billion, or approximately 1% of their $3 trillion in assets, to investments for African "growth, development and opportunity." Mr. Zoellick's proposal was applauded by the North American Millers' Association, which has pushed for increased aid in recent years. "Ambassador Zoellick's urgent call for food donor nations to provide an additional $500 million worth of immediate Continued on Page 12 Klosterman sees A.B.A. well positioned to face array of industry challenges PHOENIX - A march on Washington to draw attention to issues associated with surging commodity prices represents a powerful indication that the American Bakers Association is better positioned than ever to deal with the baking industry's issues. That was the conclusion of Kenneth F. (Chip) Klosterman Jr., the new chairman of the A.B.A. Mr. Klosterman, president of Klosterman Baking Co., Cincinnati, was elected A.B.A. chairman at the group's March 30 annual meeting at the Arizona Biltmore in Phoenix (see Milling & Baking News of April 8, Page 1). In an April 1 interview with the new A.B.A. chairman and members of the A.B.A. staff, Mr. Klosterman expressed optimism that the A.B.A. is well positioned to deal with a daunting agenda of issues, including a number of serious threats facing baking. He specifically cited the efforts to bring the "Band of Bakers" to Washington as evidence of the group's strengthened capabilities. "I was so excited by the participation and the efforts this group is making to move legislation forward," he Continued on Page 13

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Milling & Baking News - April 22, 2008