Milling & Baking News - February 9, 2010 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS FEBRUARY 9, 2010 / FEATURE Despite Nestle shift, heat-treated flour still viewed as niche product T Thin to win Bagel makers cutting calories, shrinking size to attract customers Story on Page 26 LATE NEWS CSM to acquire Best Brands in the U.S. DIEMEN, THE NETHERLANDS - CSM, the world's largest supplier of bakery products, has agreed to acquire Minnetonka, Minn.-based premium bakery manufacturer Best Brands for $510 million in cash. The acquisition of Best Brands, which has a leading position in value-added frozen products sold to in-store bakeries, is expected to make CSM the leader in the North American bakery supplies market with total sales of $2.3 billion. The transaction is scheduled to be completed in March. "The acquisition of Best Brands fits in our strategic journey which started in 2005," said Gerard Hoetmer, chief executive Continued on Page 8 he decision by Nestle USA to begin using heat-treated flour for its refrigerated dough products is unlikely to result in a major shift by other flour users to the technology, a range of grain-based foods industry experts told Milling & Baking News last week. Still, the highly publicized move to heat treatment in the name of food safety by the world's largest food company has generated considerable discussion within and beyond milling. Confidence that heat treatment of flour for food safety purposes will not become widespread rests on several factors: that the vast majority of flour-based foods go through a kill phase, principally baking, obviating the need for heat treatment of flour; the low level of microbial counts in flour; the adverse effects on flour functionality of heating before baking; and the high cost of heat treatment. Still, industry executives have been focusing on the issue in the wake of several high profile food product recalls, including Nestle's recall of Toll House cookie dough. In that episode, in June 2009, 76 persons were reported as sickened in 31 states after eating the cookie dough. While the product's packaging warns consumers not to eat the dough raw, it is believed that many consumers in fact do just that. Testing by the Food and Continued on Page 30 U.S.D.A. proposes fiscal 2011 budget at $146 billion WASHINGTON - The U.S. Department of Agriculture's proposed budget for fiscal 2011, released Feb. 2 as part of President Barack Obama's federal budget, estimated U.S.D.A. outlays of $146 billion in 2011, up $4 billion from the estimate for the current year at $142 billion and compared with $115 billion in fiscal 2009. About $117 billion of the proposed budget, accounting for roughly 80% of estimated outlays, was associated with mandatory programs, which include most nutrition assistance programs, farm commodity programs and a number of conservation programs. Spending on the mandatory programs was forecast to be about $5 billion higher in 2011 than in 2010 because of increases in nutrition assistance and crop insurance programs. The remaining 20% of proposed outlays, an estimated $29 billion, was requested to fund discretionary programs such as the Special Supplemental Nutrition Program for Women, Infants and Children (WIC); rural development loans and grants; research and education; soil and water conservation technical assistance; animal and plant health; Forest Service activities, and domestic Continued on Page 16

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Milling & Baking News - February 9, 2010