Milling & Baking News - December 1, 2009 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS DECEMBER 1, 2009 / FEATURE Weisser lays out Bunge ambitions to grow in global sugar market Beyond trans fat Product developers seek lees saturated fat, more oleic acid and omega-3 fatty acids Story on Page 23 LATE NEWS Kellogg makes layoffs in connection with K-LEAN BATTLE CREEK, MICH. - The Kellogg Co. is laying off workers at bakery plants in Cary, N.C., and Augusta, Ga., as part of a restructuring initiative designed to streamline operations. "We continually look to optimize our manufacturing network," said Kris Charles, spokesperson for Kellogg. "We've undertaken a program called K-LEAN, or Kellogg's Lean, Efficient, Agile Network, which is helping Kellogg become more effective and efficient and ensure we have the right structure in place. As we simplify and standardize our processes at our (bakeries), some jobs were impacted." The Cary Continued on Page 10 NEW YORK - While the company has not yet been successful in its efforts to expand into corn wet milling, Bunge Ltd. is "well on its way" to becoming a significant player in the sugar market, said Alberto Weisser, chairman and chief executive officer. Mr. Weisser commented on Bunge's aspirations for sugar, and commodity diversification generally, during a Nov. 20 presentation at the Morgan Stanley Consumer & Retail Conference in New York. "The sugar industry is attractive because it benefits from steady growth in demand and from a move in production to lower cost markets in the Southern Hemisphere such as Brazil," he said. Expanding in sugar represents part of a "pillar strategy" at Bunge to "expand into complementary value chains, new products" in which Bunge is able to "leverage its current expertise and assets for competitive advantage," he said. Sugar was mentioned by Mr. Weisser as an example, together with corn wet milling and palm oil. He described sugar as similar to Bunge's core businesses and said ethanol produced from sugar is a highly attractive first generation biofuel. Its Continued on Page 11 Midwest states post relatively sharp changes in flour output WASHINGTON - Midwestern states posted wide variations in flour output in the first nine months of 2009 compared with last year, while relatively small changes occurred in other areas, according to data of the U.S. Department of Commerce's Census Bureau. Output in the hard winter belt lost share, while mills in the spring wheat states recorded a gain. The Census data also indicate that although U.S. output was down slightly in January-September from 2008, more areas showed gains than losses. U.S. production in January-September aggregated 311,273,000 cwts, down 0.3% from 312,065,000 in the same 2008 period. The North American Millers' Association provides funding to the Census Bureau in support of the compilation of these milling statistics. In the hard winter belt, made up of Kansas; Oklahoma and Colorado; Nebraska and Iowa; and Texas, JanuarySeptember output totaled 62,391,000 cwts, against 64,051,000 in the same nine months of 2008, down 2.6%. This output accounted for 20% of the national total in 2009, against 20.5% in 2008. Mills in this area ran at 88.7% of six-day capacity in the third quarter, up Continued on Page 18

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Milling & Baking News - December 1, 2009