Milling & Baking News - April 19, 2011 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS APRIL 19, 2011 / MILLING TECHNOLOGY Grain Market Roundtable  Wheat markets on edge as new growing season begins “ KANSAS CITY — Bakers and other flour buyers should brace themselves for a rough ride through the growing season and into the new crop year, according to analysts interviewed by Milling & Baking News. Price changes may be abrupt and ranges extreme at least until U.S. and world wheat crop prospects become more certain. In the meantime, wheat markets may be roiled as they weigh concerns over winter wheat conditions in the United States, expectations for lower U.S. allwheat production and stocks in the upcoming year, hopes for a rebound in world wheat production and stocks, the influence of tight U.S. corn and soybean supplies and volatile outside markets. The U.S. Department of Agriculture’s National Agricultural Statistics Service in its first composite winter wheat condition assessment of the season rated the crop on April 3 at 37% good to excellent, 31% fair and 32% poor to very poor. The overall ratings were pulled down by stressed hard red winter wheat crops in Texas, Oklahoma, western Kansas and Colorado. Wheat rated good to excellent on April 3 was only 31% in Kansas, 16% in Oklahoma, 12% in Texas and 16% in Colorado. “The market was expecting the initial good-to-excellent rating for the winter Continued on Page 20 Seeking to add customer value Buhler acquisition of Schmidt-Seeger heightens focus on grain storage and handling customers Story on Page 27 LATE NEWS Groups want enriched grains in schools WASHINGTON — Ten grain industry groups stressed the need for enriched grains in school meals in comments sent April 13 to the U.S. Department of Agriculture. The comments concerned the proposed rule “Nutrition Standards in the National School Lunch and School Breakfast Programs” published Jan. 13 in the Federal Register. Under the proposed rule, two years post-implementation, all grains offered during the school week must be “whole grain rich.” Yet the Dietary Guidelines for Americans recommend people make half their daily grain servings whole grains, which leaves room for enriched Continued on Page 8 Flowers jump starts geographic expansion with Tasty acquisition THOMASVILLE, GA. — Just three weeks after unveiling a five-year plan to dramatically expand its geographic footprint, Flowers Foods, Inc. on April 11 announced an acquisition that would represent a major first step toward meeting its ambitious objective. With an agreement to acquire Philadelphiabased Tasty Baking Co., Flowers said it will expand its population base by 24 million consumers. Under the agreement, valued at $165 million, Flowers would acquire all of the outstanding shares of Tasty common stock for $4 per share. Subject to regulatory approvals and other customary closing conditions, the transaction, already approved by the boards of both companies, is expected to close by the end of June. Established in 1914, Tasty Baking is a baker and distributor of snack cakes, pies, cookies and donuts. It operates baking plants in Philadelphia, where it is headquartered, and in Oxford, Pa., 50 miles southwest of Philadelphia. “We take a very deliberative approach to selecting acquisitions, focusing on strong brands and premium products that extend our capabilities and geographic reach,” said George E. Deese, chairman and chief executive Continued on Page 9

Table of Contents for the Digital Edition of Milling & Baking News - April 19, 2011

Milling & Baking News - April 19, 2011
Grain Market Roundtable -- Wheat markets on edge as new growing season begins
Business -- Flowers jump starts geographic expansion with Tasty acquisition
LATE NEWS -- Groups want enriched grains in schools
NEWS Comment -- Urgent need for change in school lunch proposals
Editorial -- New fi nancial regulations may affect wheat
Late News -- C.P.I. for baked foods and cereals up 0.5%
Late News -- White and whole wheat bread prices rise
Late News -- Seaboard restarts Madagascar activities
Late News -- Private label cereal, snacks not high on wish list
Business -- Correction: Food, beverage sectors led by two to three branded companies
Business -- Bunge in joint venture to build river grain terminal in Illinois
Business -- Baker Boy expanding dough and baking complex in North Dakota
Business -- Snyder’s-Lance unveils new logo
Business -- Kellogg Canada adding cereal line in Ontario
Business -- ADM to acquire Missouri soybean crush facility
Financial Results -- Kellogg shifting back to innovation after two years of ‘renovation’
Financial Results -- Cargill earnings from continuing operations up 30%
Financial Results -- Strong ag results boost CHS income in quarter
Washington -- Wheat summit groups commit to cooperate on biotechnology
Washington -- Growers, millers and bakers make case for sustaining milling data
Washington -- More than two dozen congressmen urge President Obama to open C.R.P.
Industry Activities -- A.B.A. political success seen in tough Washington environment
Industry Activities -- Highlights from A.B.A. annual meeting in San Antonio
Industry Activities -- Wal-Mart’s Scott sees profound global changes ahead for retail
Industry Activities -- Baking industry encouraged about outlook for sodium reduction
Grain Market Roundtable -- Natural gas price stability stands out in diffi cult energy market
Grain Market Roundtable -- Tight corn supply, planting and yield uncertainties drive market
Milling Technology -- Seeking to add customer value
Milling Technology -- Buhler Technology Group has successful 2010
Milling Technology -- Ocrim supplies Libyan mill
Milling Technology -- Brock Grain Systems’ M SERIES bins receive award
Milling Technology -- Administrative assistant joins I.A.O.M. headquarters
Milling Technology -- Intersystems launches line of distributors, belt conveyors
Milling Technology -- Perten to supply Turkish Grain Board with Inframatic analyzers
Milling Technology -- Sifters, feeders and conveyors all on display at I.A.O.M. expo
People -- Danisco hires account manager for bakery group
People -- King Arthur hires director of new business development
Merchandising -- Potential for accelerated pasta sales growth seen
Supplier Innovations -- White paper focuses on texture appeal
Supplier Innovations -- Maize shows promise in gluten-free pasta
Supplier Innovations -- Kits detect bacteria on equipment, food
Supplier Innovations -- Frozen dough equipment easier to clean
Ingredient Market Trends -- Spring wheat planting off to a slow start
Ingredient Week
Marketplace Business Network

Milling & Baking News - April 19, 2011