Milling & Baking News - September 21, 2010 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS SEPTEMBER 21, 2010 / NEWS Bread Perspective Bread bakers see progress after 'year of living dangerously' S Food security: stocks, speculation and sanctity of contract Story on Page 40 LATE NEWS Baked foods, cereal index falls 0.2% WASHINGTON - The Consumer Price Index for baked foods and cereal products fell for the third straight month, easing 0.2% in August to 249.7% of the 1982-84 average after falling 0.1% in July and 0.4% in June, according to the Bureau of Labor Statistics of the U.S. Department of Labor. The index for all food at home, meanwhile, rebounded from two consecutive months of declines, rising 0.1% in August to 215.4. The C.P.I. for cereals and cereal products in August was 218.6, up 0.4% from July but down 2.2% from August 2009. The price index for bakery products in August was 266.3, down 0.4% from Continued on Page 8 evere pressure on bread prices, the worst in decades by some accounts, stood out over the past year as the most pressing issue affecting the financial health of the baking industry. The discounting was accompanied by only a limited expansion in sales volumes and was characterized by more than one baking executive as an exercise in futility. While the debacle diminished profitability across an entire industry that enjoyed unimpressive margins before the discounting, some improvement in recent weeks prompted optimism over prospects for the year to come. The price discounting was affirmed in data issued by SymphonyIRI Group, indicating unit price declines by all but one of the largest bread bakers in the United States. At $2.14 per unit, the average price of bread in the 52 weeks ended Aug. 8 was down 3% from a year earlier. The data cover sales at supermarkets. Most prominent in price discounting, according to the SymphonyIRI data, was the nation's largest baking company - Bimbo Bakeries USA, with Continued on Page 31 Judi Adams to head both major grain-based foods foundations RIDGWAY, COLO. - The boards of the Wheat Foods Council and the Grain Foods Foundation have established a partnership, effective on Sept. 1, under which Judi Adams will serve as president of both organizations. Under the agreement, both organizations will retain their names, representing the common interests of the grain foods industry. The boards said the Grain Foods Foundation will continue to serve as the consumer education and promotional arm of the industry, while the Wheat Foods Council will focus on opinion leaders to leverage grains nutrition education. Each will retain its own board of directors/trustees. "After careful consideration and discussion of the role each organization plays, we realized it made the best sense to form an industry partnership to better represent the interests of all our members," said Breck Barton, co-chairman of the Grain Foods Foundation Board of Trustees and president of Cereal Food Processors in Mission Woods, Kas. Mr. Barton is also a member of the Wheat Foods Council. Joel Crowder, who also is co-chairman of the G.F.F., added, "Judi has done an Continued on Page 18

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Milling & Baking News - September 21, 2010