Milling & Baking News - May 1, 2012 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS MAY 1, 2012 / FOOD INGREDIENT SOLUTIONS® Alton sees ingredient prices still at center of issues facing A.B.A. ST. CLOUD, MINN. — The volatility and strength of bakery ingredient markets remains at the forefront of issues requiring attention from the American Bakers Association, said the group’s incoming chairman, Howard R. (Robin) Alton III. Mr. Alton is chief executive officer of Pan-O-Gold Baking Co. based in St. Cloud, Minn. Mr. Alton together with A.B.A. Alton president and c.e.o. Robb MacKie spoke recently with editors of Milling & Baking News and Baking & Snack magazines, both Sosland Publishing Co. publications. Mr. Alton began his term as chairman April 15, during the 2012 annual meeting of the A.B.A., held at the Fairmont Princess, Scottsdale, Ariz. “We’re always looking at commodities,” Mr. Alton said. “It’s always important to our cost modeling in achieving pricing so that the consumer can still afford a loaf of bread. God knows we’ve seen the price of bread move. Whatever we can do to keep the cost of baking a loaf of bread in check is important to pursue.” For an industry group that is staunchly committed to unfettered free markets, the issue of ingredient price volatility is anything but simple for the A.B.A., Mr. MacKie said. Still, he said the group has made important progress toward addressing what many consider an artificial source of market volatility — the proliferation of index funds in grain markets, classified in the past as hedgers. “After over two years of effort, we finally pushed through a proposal that Continued on Page 15 Counting (down) calories Formulate to reduce fat, sugar in snacks Story on Page 23 LATE NEWS Profit rises for Frito-Lay, falls for Quaker PURCHASE, N.Y. — Frito-Lay North America, a business of PepsiCo, Inc., had operating profit of $780 million for the first quarter ended March 24, which compared with $774 million in the previous year’s first quarter. Firstquarter net revenue for F.L.N.A. rose to $3,010 million from $2,904 million, which reflected 6 percentage points of effective net pricing. Within Quaker Foods North America, another PepsiCo business, operating profit in the first quarter declined to $187 million from $214 million. An inventory accounting change recorded in the prior year contributed 7 percentage points Continued on Page 8 Milling Technology Haiti flour mill powerful symbol of optimism and commitment W hen Seaboard Corp. and Continental Grain Co. joined as part of a consortium to acquire Les Moulins d’Haiti, in 1997, the group knew the road to revive the shuttered and neglected business would be lengthy and expensive. Indeed, in the 12 years that followed, an aggregate of about $20 million was spent to restore and expand Haiti’s largest flour mill to assure the business was able to more fully serve the impoverished Caribbean nation of about 10 million. The continuing investment in the complex in the 2000s was evidence of progress and even the success the venture enjoyed, but the many years of work and millions invested were wiped out in a matter of seconds in the January Continued on Page 31 Marking nine decades in partnership with grain-based foods http://http://

Table of Contents for the Digital Edition of Milling & Baking News - May 1, 2012

Milling & Baking News - May 1, 2012
Alton sees ingredient prices still at center of issues facing A.B.A.
Milling technology - Haiti flour mill powerful symbol of optimism and commitment
Late News - Profit rises for Frito-Lay, falls for Quaker
News/Comment - Hope for gains from better pace across economy
Table of Contents
Editorial - Realistic look at flour consumption trends
Late News - Bimbo U.S. profits down 73% in first quarter
Late News - Senate ag committee passes farm bill
Late News - Pamela’s expands gluten-free facility
Late News - New flavor to join Fiber One 90-Calorie Brownies line
Business - Rapid 2012 crop progress offers both promise and risk
Business - Consumer groups ask F.D.A. to deny corn sugar petition
Business - Bagel thins, cracker chips make Pacesetters top 10 for 2011
Business - DuPont opens $40 million research facility in Iowa
Business - CME Group to launch CBOT Black Sea wheat futures contract
Business - Teamsters submit proposal for restructuring Hostess
Business - Bunge completes acquisition of Climate Change Capital
Financial Results - Kellogg earnings, sales fall 2% in first quarter; full-year expectations lowered
Industry Activities - Depth of challenges for baking seen underscoring A.B.A. value
Industry Activities - Shoppers spending more and buying less
Industry Activities - Gaesser recounts for bakers appearance on ‘Dr. Oz Show’
Industry Activities - Changing demographics prompt bakery volume declines
Industry Activities - Highlights from A.B.A. annual meeting at Fairmont Princess
Financial Results - Bunge profit falls 62% in quarter; sales climb 10% to $13.4 billion
Financial Results - J&J Snack earnings rise 20% in quarter; sales up 16%
Food Ingredient Solutions - Counting (down) calories
Tortilla Update - Tough times in tortillas? Not so fast
Milling Technology - Loss of life adds tragic layer to destruction, rebuilding of mill
Regulatory Affairs - Water drops, but not in price
Data - Canadian wheat planted acreage forecast up 13% from 2011
IAOM Show Guide - 2012 Conference & Expo at a glance
People - Leroy McAninch, former Research Products president, dies at age 94
People - Two to new v.p. posts at NutraCea
People - Jill Peters named account manager at Sefar
Supplier Innovations
Ingredient Market Trends
Ingredient Week
Marketplace Business Network
Ad Index

Milling & Baking News - May 1, 2012