Milling & Baking News - February 22, 2011 - 7

Milling makes 2010 a success amidst turmoil

onsidering what a difficult year 2010 While flour import variations may counter these proved to be for the American economy, for changes, the net result is the likelihood that domost of the food industry and, yes, for sec- mestic disappearance in 2010 either held its own or tors of grain-based foods, the newly issued data may have rebounded to equal the peaks of recent showing that production of wheat flour gained a years. It is domestic disappearance that stands as fractional amount ought to be counted as victory. the main measure of just how grain-based foods This is the case even though the increase equals has done in coping with a tough consumer marketonly a single day’s grind, or less than 1 per cent place where it competes in an increasingly trying over 2009. It places flour output at practically the environment. Any food sector that held its own in same as in 2008 and lags 2007 and the record in the 2010 may claim considerable success. first year of the 21st century. A hard-nosed critic The annual flour statistics provide a whole may be tempted to assert that flour production, range of data that allows 2010 to be ranked as a as a measure of the status of grain-based foods, good year. Maintaining the flour extraction rate at is going nowhere. Yet, anyone who makes his liv- a record level, 77.1 per cent, for the past two years ing in the business of milling wheat into flour is hugely important to the industry’s economic and baking flour into bread well-being. That achievement, A hard-nosed critic may be and other products knows measuring the percentage of tempted to assert that ﬂour from the facts at hand as well wheat grind converted into production, as a measure of the as from knowledge of how wheat flour, may be credited status of grain-based foods, is the business fared in an exto several factors — wise ingoing nowhere. tremely trying twelvemonth vestments in modern milling that 2010 deserves rank as one of the industry’s technology, good quality of the wheat crop and exbetter years. panding production of whole wheat flour. Thanks to the Census Bureau in the U.S. DepartWhile 90 per cent has long been considered the ment of Commerce, the industry has in the prelimi- ideal milling operating average, measuring outnary estimate numbers about which it may be con- put against capacity, the past several years have fident. Unlike past years when wide changes often seen the industry close to that goal. The shortfall occurred between the preliminary and final data, has been a few percentage points. The run rate the current output total is unlikely to be changed for 2010 and 2009 has been 88 per cent of six-day much in the final report that is several months capacity. This mainly reflects the steadiness of doaway. Thus, 2010 may now be studied in terms of mestic demand along with the restraint millers output totaling 416,200,000 hundredweights. That practice in matching capacity expansions with reis up 1,542,000 hundredweights from the prior ductions, primarily of older plants. year and is practically the same as in 2008. It is While the highly erratic and historically volatile 2,636,000 below 2007 and a little more than 5 mil- performance of wheat prices stems from concerns lion under the record output in 2000. about the adequacy of supplies, particularly on a These changes largely relate to variations in global basis, nothing like a shortfall, much less a flour exports. Foreign shipments in 2010 were shortage, has been evident in the continued active 7 million hundredweights, which was 2 million pursuit of flour sales to existing and new custommore than in each of the two preceding years. In ers. Long characterized as one of the most aggresthe record year of 2000, U.S. flour exports were 9 sive industries based on its pursuit of flour busimillion larger than in 2010, more than accounting ness, milling’s showing in 2010 provides an examfor the output difference between the two years. ple reflecting the best of American capitalism. MBN MORTON SOSLAND, EDITOR-IN-CHIEF
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Milling & Baking News February 22, 2011 / 7 bakingbusiness.com / world-grain.com

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Milling & Baking News - February 22, 2011

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