Milling & Baking News - November 18, 2008 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS NOVEMBER 18, 2008 / FEATURE Third-quarter flour output down 0.8% from a year earlier Smooth sailing in rough waters Organic sweetener and grain options increase as category stays strong. Story on Page 25 LATE NEWS F.D.A. expands China import alert WASHINGTON - The Food and Drug Administration issued an import alert on Nov. 13 that will prevent foods manufactured in China and containing milk or milk-derived ingredients from entering the United States until they have been tested and shown not to be contaminated with melamine. Foods that will be most affected include bakery products, snacks, beverages and chocolates, according to the F.D.A. Under the directive, F.D.A. inspectors at U.S. ports of entry will detain foods from China made with milk and certain ingredients derived from milk. Importers must pay to have their products Continued on Page 8 WASHINGTON - Flour production by U.S. mills in the third quarter of 2008 decreased 0.8% from the same period last year, according to the Bureau of the Census of the U.S. Department of Commerce. Output in the three months totaled 108,155,000 cwts, down 862,000 cwts from 109,017,000 in July-September 2007. The decrease from JulySeptember 2007 marked the second successive quarterly year-to-year reduction. In addition to the 862,000-cwt decrease for July-September, AprilJune was down by 614,000. These two successive reductions followed a record-breaking 11 consecutive quarterly increases, ranging from 677,000 cwts to 4,603,000. This followed four successive quarterly decreases from a year earlier with those changes ranging from 533,000 cwts to 2,163,000. In turn, that period of reductions came after five successive quarterly rises over a year earlier, varying between 6,000 cwts and 939,000. Production of flour by U.S. mills in the first nine months of 2008 amounted to 311,660,000 cwts, down 113,000 from 311,773,000 in the same 2007 period. The latter set the record for January-September production. The nine-month output for 2006 totaled 300,931,000. January-September 2008 output also was slightly above the third largest nine-month output of 311,597,000 in 2000. The nine-month aggregate in 1999 was 303,755,000 cwts. These five years are the only time nine-month production topped the 300-million-mark. The North American Millers' Association provides funding to the Census Bureau in support of the compilation of these flour production statistics. July-September 2008 output was the Continued on Page 40 Teamsters approve agreement with I.B.C. WASHINGTON - The International Brotherhood of Teamsters has voted to accept modifications to its agreements with Kansas City-based Interstate Bakeries Corp. The agreement, which covers more than 9,000 workers, follows months of often acrimonious negotiations between the union and the wholesale baker and paves the way for I.B.C. to emerge from bankruptcy as early as this December, and no later than February next year. "I.B.C. Teamsters were faced with a difficult decision and they voted loud and clear to preserve good American jobs at Interstate Brands Corp.," said James P. Hoffa, general president of The Teamsters. "The newly ratified agreement paves the way for the company to exit bankruptcy as a stand-alone entity, which is the best opportunity for our members to keep their jobs." Richard Volpe, director of the Teamsters Bakery and Laundry Conference, said the agreement was "the best choice in order to provide I.B.C. with a sound financial footing." "During negotiations our priority was Continued on Page 10

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Milling & Baking News - November 18, 2008