Milling & Baking News - February 23, 2010 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS FEBRUARY 23, 2010 / NEWS Bread Product Perspective  Amid complicated cross-currents bakers remain focused P Kellogg's John Bryant sees great promise in Turkey and Russia Story on Page 16 LATE NEWS C.P.I. for baked foods, cereals falls WASHINGTON - The Consumer Price Index for baked foods and cereal products fell 0.1% in January after rising 0.2% in December, according to the Bureau of Labor Statistics of the U.S. Department of Labor. The index for all food at home once again finished higher, rising 0.9% after gaining 0.3% in December. The January index for Cereals and Bakery Products before seasonal adjustment was 250.7% of the 1982-84 average, down 1.5% from a year ago. For all food at home, the January index was 215.4, down 2% from January 2009. The price index for bakery products in January was 267.6, down 0.1% from Continued on Page 8 roduct innovation in bread picked up in 2009, according to executives interviewed recently by Milling & Baking News. While increasingly sensitive to consumer concerns about value amid the most difficult economic environment in decades, product innovation generally remained focused on health and wellness. On the surface, the bread market over the past year was relatively stable. Bread unit sales in supermarkets in the 52 weeks ended Jan. 24 were 3,017,022,000 units, down 0.56% from a year earlier, according to data from Information Resources, Inc. The year-to-year change was not out of line with what had been typical in earlier years, and private label did not gain much share, with unit sales slipping 0.52% during the period. Despite the flat aggregate changes, wide swings were evident in the bread market on the company level last year with unusually wide shifts in market share and widely varying pricing policies. "If you look at the basic I.R.I. numbers, they are flat, but there's always a lot going on underneath that flat number," said Tim Zimmer, vice-president of marketing for Sara Lee North American Fresh Bakery, Downers Grove, Ill. Between the ups and downs of commodity prices in 200709, the complicated impact of the Continued on Page 31 New data show organic accounts for minuscule share of grain production WASHINGTON - Production of organic food products has enjoyed rapid growth over the past several years but still represents a small share of U.S. food production. How small? In the case of the principal grains harvested in the United States, very small. According to the first-ever published Census of Agriculture Organic Production Survey (2008), published by the National Agricultural Statistics Service of the U.S. Department of Agriculture, certified organic production of corn in 2008 was 15,702,177 bus and wheat was 8,271,251 bus. Those figures equated to 0.13% and 0.33% of total corn and wheat production in 2008, respectively. Put another way, U.S. farmers grew one bushel of certified organic corn for every 769 bushels of conventional corn and one bushel of organic wheat for every 301 bushels of conventional wheat. According to the U.S.D.A., the study is the first conducted on the national level by the Department. "The organic industry has experienced measurable growth over the last few years," the U.S.D.A. said. "This survey responded to the intense Continued on Page 45

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Milling & Baking News - February 23, 2010