Milling & Baking News - August 26, 2008 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS AUGUST 26, 2008 / FEATURE Kansas wheat crop has strong qualities; some baking challenges seen Vitamin D drive Fortifying foods with calcium, choline or folic acid also adds value. Story on Page 23 LATE NEWS Olympian Phelps to appear on Corn Flakes, Frosted Flakes boxes BATTLE CREEK, MICH. - The Kellogg Co. announced that Michael Phelps, winner of eight gold medals in the 2008 Olympic Games, will appear on the front of specially-marked cereal boxes of Kellogg's Frosted Flakes and Kellogg's Corn Flakes. The cereal boxes, which are expected to reach supermarket shelves across the United States in mid-September, will feature images of Mr. Phelps during several dramatic moments in the Olympic games. "As an Official Sponsor of the 2008 U.S. Olympic Team and a proud sponsor of Phelps, it is only fitting that Kellogg Co. feature this Continued on Page 8 MANHATTAN, KAS. - The 2008 Kansas wheat crop is above average in quality and significantly improved from crops harvested in 2007 and 2006, according to the annual wheat quality report issued by Kansas Agricultural Statistics on Aug. 15. "Millers I've talked with have been milling 2008 wheat for the last several weeks," said Mark Fowler, a flour milling specialist with the International Grains Program of Kansas State University. "Everyone is happy. Last year, we had too low protein and the year before too high protein. It's back to a normal wheat crop and millers are generally very pleased." Based on preliminary data from 11,245 carlot samples from 52 counties, Kansas wheat protein averaged 12.4% compared with 11.7% in 2007 and 12.3% as the recent 10-year average. Test weight averaged 60.4 lbs per bu compared with 59.3 lbs per bu in 2007 and 60.4 lbs as the recent 10-year average. Seventy-one per cent of 2008 Kansas wheat samples graded No. 1 hard red winter compared with 55% last year. Twenty-six per cent of the 2008 samples graded No. 2 compared with 32% in 2007. Only 3% of the 2008 crop samples graded No. 3 or below. Wheat samples averaged 0.6% in damaged kernels, the same as for 2007 and compared with 0.3% as the 10-year average. Samples tested had 0.1% foreign material on average, the same as for 2007 and the 10-year average. Shrunken Continued on Page 11 Flour production sets record in first half of 2008 but April-June down from a year ago WASHINGTON - Even though flour production by U.S. mills in the second quarter of 2008 decreased 0.6% from the same 2007 quarter, output in the first half of 2008 still managed to set a record for those six months. In the face of the reduction for the quarter, April-June output ranked as the third largest of record. All this was indicated by data issued by the Bureau of the Census of the U.S. Department of Commerce. Flour output in January-June 2008 totaled a record 203,456,000 cwts, up 700,000, or 0.3%, from 202,756,000 in the first half of 2007, which was the third largest. It also was up 0.3% from 202,759,000 in the first half of 2000, the previous high. Clouding the outlook for an eventual new output record this year, April-June production lagged a year ago by 663,000 cwts, or 0.6%, totaling 101,838,000 cwts. It still was the third largest for the second quarter. The record for April-June was in 1999 at 103,463,000 cwts, followed by 2007 at 102,501,000, the current period at Continued on Page 12

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Milling & Baking News - August 26, 2008