Milling & Baking News - August 11, 2009 - 4

Contents 

August 11, 2009 Vol. 88, No. 12

NEWS FEATURE

 NEWS Comment

Story on Page 1

Global wheat stock
rise varies greatly
among nations

Congress expected to
hear constituent views
on reform initiatives

9

Vitamin D opportunity
for grain-based foods

Published research shows babies and
children need more vitamin D. James Kopp of
Lallemand pushes for vitamin D inclusion in
baked foods.

Dakota Specialty
Milling celebrates
40 years in industry
Story on Page 12

DEPARTMENTS
7 Editorial
9 Nutrition and Health
10 People
12 Business
13 Data
28 Corn Wet Milling
30 Financial Results
34 Industry Activities
35 Ingredient Week Trends
44 Supplier Innovations
50 Archive

19

Export flour revision
results in new peak

Estimated world wheat flour exports in 2008-09
reach a record trade total of 111,975,000 tonnes
in wheat equivalent after an upward revision
of 1 million tonnes by the International Grains
Council.

28

Sweetener symposium
addresses NAFTA

Industry members at the International
Sweetener Symposium reassess where the
North American Free Trade Agreement region
stands in a seemingly tight world sugar
market.

30

Range of positive indicators
for Tasty Baking

Increased volume, wider margins and improved
profitability lift Tasty Baking Co. to secondquarter net income of $2,345,000, up from
$75,000.

32

Kellogg income climbs
13% in quarter

Higher prices and cost cuts help to drive The
Kellogg Co. to second-quarter net income of
$354 million, up from $312 million. Secondquarter sales fall 4% to $3,229 million.

According to the latest Grain Market
Report of the International Grains
Council, world wheat stocks at the close
of 2009-10 will reach the largest total
since the 21st century began. The I.G.C.
forecasts stocks a year hence at 174
million tonnes, up 13 million from a year
earlier and 56 million, or 47%, more
than the recent low at the end of 200708. Grain-based foods executives surely
recall that the latter low coincided with
record high wheat prices - twice current
levels - and challenging volatility.
As comforting as that large increase in
global wheat carryover may be to wheat
flour buyers, it is essential to examine
variations among major countries to
understand why great caution is advised.
In the case of the United States, the outlook
is for a modest carryover rise, up 3% in
2009-10 and 12% above the 2008 low.
The five major wheat exporting nations
combined will contrarily experience an
11% carryover cut in 2009-10 and will
have only slightly more than in 2008.
This means that the expansion in global
wheat stocks is occurring in countries
that will not weigh to a great extent on
prices, at least as directly as U.S. or major
exporter stocks would. The I.G.C. reveals
that most of the wheat stock gain is in
two countries, China and India, where
domestic grain consumption has been
rising. The I.G.C. forecasts China's wheat
stocks at the end of 2009-10 will reach
55.2 million tonnes, up 24% from a year
earlier and accounting for nearly a third
of the global total. MBN

COMPANIES IN THIS ISSUE
AB Enzymes .................................................. 44
American Italian Pasta Co. .............................. 1
The Andersons, Inc. ....................................... 12
Archer Daniels Midland Co............................ 12
Canada Bread Co. Ltd.................................... 33
Cargill ........................................................... 44
Dakota Specialty Milling ............................... 12
Elvisem AG .................................................... 44
4 / August 11, 2009 Milling & Baking News

Hinds-Bock .................................................... 44
The Kellogg Co. ............................................. 32
Keystone Mercantile...................................... 12
Kice Industries............................................... 10
Klosterman Baking Co. .................................... 9
Lallemand Inc................................................ 12
Mason Elevator Company, Inc. ...................... 12
PepsiCo, Inc. .................................................. 30

Ralcorp Holdings, Inc....................................... 8
Tasty Baking Co............................................. 30
Viterra Inc...................................................... 12
Vitiva ............................................................. 44
Wausua Paper Group .................................... 12
Woodbury Grain, L.L.C. ................................. 12

bakingbusiness.com / world-grain.com
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - August 11, 2009

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