Milling & Baking News - 2012-01-24

THE NEWS WEEKLY OF GRAIN-BASED FOODS
bakingbusiness.com / foodbusinessnews.net
JANUARY 24, 2012
LATE NEWS
Continued on Page 15
MEXICO CITY Grupo Bimbo,
S.A.B. de C.V. said it has priced its
offering of $800 million of 4.50%
notes due 2022, at an issue price of
99.19%, to yield 4.602%. The notes
will constitute senior unsecured
obligations of Grupo Bimbo and
unconditionally will be guaranteed
by certain of Grupo Bimbos
subsidiaries. Grupo Bimbo said
it plans to use the proceeds from
the offering to renance existing
indebtedness and for general
corporate purposes. Grupo Bimbo
last issued debt in June 2010, when it
sold $800 million of 4.875% of senior
Bimbo in $800 million
10-year bond offering
Driscoll account blames labor, many
other factors for Hostess woes
NEW YORK While burdensome
obligations to multiemployer pension
plans have cost Hostess Brands Inc.
more than $100 million a year,
the company has sustained losses
exceeding $100 million in each of
its two full years since emerging
from bankruptcy in 2009.
The role of the companys
union obligations in its nancial
problems has been brought to
the fore in recent statements and
counter statements by Hostess and union
representatives (see related story on
Page 15). Hostess has attributed its woes
primarily to legacy pension and medical
benet obligations and restrictive work
rules. Secondarily, the company cited
the economic downturn and a more
difcult competitive landscape.
Calling the companys assertions
offensive, Frank Hurt, president of
the Bakery, Confectionery, Tobacco
Workers and Grain Millers
International Union, said Hostess
is in dire nancial shape because
of a string of failed business
decisions made by a series of
ineffective executives who have
been running this company for
the past decade.
A ling with the United States
Bankruptcy Court, Southern District of
New York, by Brian J. Driscoll, president
and chief executive ofcer of Hostess,
paints a more complicated picture of the
difculties facing the baking company.
The Afdavit of Brian J. Driscoll
in Support of First Day Motions does
EDUCATION AND RESEARCH
Soft wheat studies
yield key ndings
Story on Page 30
Researchers study ber
content and best varieties to
make whole grain ours
Continued on Page 8
Better near-term outlook, many
challenges seen for food sector
Marking nine
decades in
partnership with
grain-based foods
Driscoll
WALL STREET ANALYSTS OUTLOOK
have unique drivers of their businesses
affecting their stock prices, and
fundamental industry trends often do
not apply individually, said Mitchell
B. Pinheiro, managing director, equity
research, Janney Montgomery Scott,
Philadelphia. But I think you will have
a much better year on average.
In terms of share price performance,
outperformance of broader market
indices will not be easy to achieve in 2012,
Mr. Pinheiro said. As mature a business
While 2012 appears to be beginning
on a bright note for grain-based foods
companies, the footing may be shaky
ahead, according to Wall Street analysts.
Coming after a year of better-than-
market performance, on average, for
shares of the packaged foods industry,
major challenges facing a range of
companies may come to the fore in the
new year, they said.
Protability generally is expected to
improve in the near term, the analysts said.
Most of the companies I follow
To improve vitamin D intake
Lallemand bakers yeast is the natural solution!
Join us at the 8th Annual Lallemand/American Yeast Innovations
in Baking Seminar, featuring Health Benefts of Processed Foods,
on Saturday March 3 at the Downtown Chicago Marriott. For more
information or to register: seminar@lallemand.com
W
h
i
l
e

a
t
t
e
n
d
i
n
g

A
S
B
,

j
o
i
n

u
s

a
t

t
h
e

8
t
h

A
n
n
u
a
l

L
a
l
l
e
m
a
n
d
/
A
m
e
r
i
c
a
n

Y
e
a
s
t

I
n
n
o
v
a
t
i
o
n
s

i
n

B
a
k
i
n
g

S
e
m
i
n
a
r
214/630-4511 | www.cainfood.com
CLEAN LABEL SOLUTIONS
DOUGH CONDITIONERS
ENZYMES
REDUCING AGENTS
OXIDIZING AGENTS
BROMATE REPLACERS
EMULSIFIERS &
SOFTENERS
YEAST FOODS
ENRICHMENTS
TORTILLA BASES
PRESERVATIVES
CUSTOM BLENDS &
FORMULATIONS
Tablets... and,
Celebrating

Y
E A R
S

4 / January 24, 2012 Milling & Baking News bakingbusiness.com / world-grain.com
G
ru
p
o
B
im
b
o
S
.A
.B
. d
e
C
.V
.
p
e
r

s
h
a
r
e
$20
$25
$30
2011
2010
Nov.
Sept.
July
M
ay
M
arch
Jan.
Kraft Foods Inc.
p
e
r

s
h
a
r
e
$25
$30
$35
$40
Nov.
Sept.
July
May
March
Jan.
2011
2010
Better near-term outlook,
many challenges seen for
food sector
Story on Page 1
Contents January 24, 2012 Vol. 90, No. 24
Ralcorp board approves
plan to spin off Post
The board of directors of Ralcorp Holdings,
Inc. approves the separation of the companys
subsidiary, Post Holdings, Inc.
Kraft to cut 1,600 jobs
as part of realignment
Kraft Foods Inc. plans to eliminate about 1,600
jobs in North America as part of its realignment
into two separate, independent public
companies.
Winter wheat plantings
up 3% from a year ago
The U.S. Department of Agriculture estimates
the area seeded to winter wheat for harvest in
2012 at 41,947,000 acres, up from 40,646,000
acres in 2011.
U.S.D.A. plans to close
ofces, save $150 million
The U.S. Department of Agriculture plans to
close 259 domestic offces and seven foreign
offces while saving about $150 million
annually.
No health risk with moderate
rened grains intake
A review in Nutrition Reviews fnds no
association with increased disease risk and
recommended intake of refned grain foods
without high levels of added fat, sugar or
sodium.
Moving wheat
studies from Europe
a sign of difference
NEWS Comment
7 Editorial
9, 15 Business
12 Industry Activities
14 Data
20, 28 Washington
20 Financial Results
21 Nutrition and Health
29 People
30 Education and Research
33 Ingredient Week Trends
41 Supplier Innovations
46 Archive
9
10
14
20
21
DEPARTMENTS
Archer Daniels Midland Co. ..26

B&G Foods ...........................18
Barry Callebaut ....................41
Cargill ............................ 20, 26
ConAgra Foods, Inc. .............23
Dakota Specialty Milling, Inc. ... 29
Eatem Foods Corp. ...............29
Flowers Foods, Inc. ......... 18, 24
Gavilon L.L.C. .........................8
In Europe, the decision of the German
chemical giant, BASF SE, to shut down its
plant biotechnology research facility was
called devastating by wheat producers and
segments of the scientic community. Except
for the happiness coming from business
interests in Raleigh, N.C., where BASF will
now base its plant science division, little was
heard in the U.S. in celebrating this move.
That difference once again underscores the
great uncertainty ruling in regard to research
to bring genetic modication and other
scientic advances to production of wheat
and other crops.
In explaining its decision to halt such
work in Germany, BASF emphasized the lack
of acceptance of plant biotechnology by
European consumers and politicians. We
will concentrate on the attractive markets
in North and South America and the growth
markets in Asia, BASF said. In decrying this
move, a spokesman for the German farm
lobby appealed for a halt to withdrawals
of such research, warning that Europe is
sidelining itself from food gains.
BASFs biotechnology research focuses
on nding wheat resistant to fungal disease
as well as resistant starch potatoes. Gaining
the presence of BASF in behalf of improved
crops is particularly important for wheat
where yields have been static for too long.
Hardly anything underscores that better
than the latest forecast by the International
Grains Council that world wheat area for
the 2012 harvest will be up 1.7%, but that
production probably will be slightly smaller
than the 2011-12 record. MBN
COMPANIES IN THIS ISSUE
General Mills, Inc. .......... 10, 27
Grupo Bimbo
S.A.B. de C.V. ..... 1, 18, 23, 41
Hershey Co. ..........................18
Hinds-Bock Corp. ..................41
Hostess Brands, Inc. ...............1
International Flavors
& Fragrances, Inc. ..............41
J&J Snack Foods Corp. ..........24
The Trans-Pacic
Partnership and
agriculture
Story on Page 28
J.M. Smucker Co. ............ 18, 24
Kellogg Co. ...........................27
Kraft Foods ............... 10, 18, 23
MGP Ingredients, Inc. .............9
PT Indofood Sukses Makmur ...7
Pepperidge Farm, Inc. ...........18
Quaker Oats Co. .....................8
Ralcorp Holdings, Inc. ....... 9, 26
Rich Products Corp. ..............29
Sara Lee Corp. ......................23
Snyders-Lance, Inc. ..............23
Tasty Baking Co. ...................29
Toyota Group .........................7
Unitherm Food Systems .......41
Van Drunen Farms ................41
WALL STREET ANALYSTS OUTLOOK
energy
grai ns
foods
Resources for enriching lives.
201 201 201 201 201 201 201 201 201 201 20 20 20 201 201 201 2010 CH 0 CH 0 CH 0 CH 0 CH 0 CH 00 CH 0 CH 0 CH 0 CH 0 CH 0 CH 0 CH 0 CH 0 C CH 00 CHS In S In S In S In SS In S In S In S In SS In S In S In SS In S In S c. C c. C c. C c. C c. c. C c. C . C c. C c. C cc. C c. C cc. C CHS i HS i HS i HS i HS i HS i S i HS HS HS i HS i S ii HS i i HH is li s li s li s li s li s li s li s li s li i s li s li s l l s l s l s s sted sted sted sted sted sted sted sted sted ste sted sted sted s dd on on on on on on on on on on on oon on NASD NASD NASD NASD NASD NASD NASD NASD NASD NASD NASDDD N D ASDAQ a AQ a AQ a AQ a AQ a AQ AQ AQ a AQ a Q aa AQ a AQQ a AQ aaa AQ AQ t CH t CH t CH t CH t CH t CH t CH t CH CH CH CH t CHHHH t CH CH t CH t CHH CH CH CHHH t C SCP. SCP. SCP. SCP. SC SCP SCP. CP SCP. PP CP SCP. SCP. SCP. SCP. SCP. SCP SCP. P SCP. SCP. SCP. SC SC SCP. SC SCP. SCP SCP P SCP. SCP SCP CP P CC Hon Hon Hon Hon Hon Hon HHHHon Hon Hon Hon Hon Hon Hon on Hon HHo Ho Ho HHHHH nn H n H n on HHon HHo Hon H eyso eyso eyso eyso eys eyso eyso eyso eyso eyso so eyso eeyso eyso eyso eyso eys y y an y an y an y an y an y an y an y an y an y an y an y an y an y an yyy an y d Ul d Ul d Ul d Ul d Ul d Ul d Ul d Ul d Ul U d Ul d Ul Ul Ul dd Ul d UUl Ultra- tra- tra- tra- tra- tra- tra- tra- tra- tra- tra- tra- tra- tra- tra t Soy Soy Soy Soy Soy Soy Soy Soy SSoy Soy SSoy Soy Soy SSoy Soo are are are are are are ar are are are are aare ree are re re regi regi regi regi regi regi regii regi regi reg regi egi regi regi regi egi regi regi eg ster ster ste ster ster ster ster ster ster ster steer st ster ter ter ster ste ter tered t ed t ed ed t ed t ed t edd t ed t ed t d t ed t ed t ed edd ed e trade rade rade rade ade ade rade rade rade ade rade ade rade d ade rade rade rade ade de de rad r ma ma ma mark mark mark mar ma mar marrk rk rk mark mar mark mark rk mm rrk ma mmmmm s of s of s of s of s of s of s of s of of s of s o s o s oooo CHS CHS CCHS CHS CHS CHS CHS CHS CHS CHS CHS CH CH CHSSS Inc Inc Inc Inc Inc Inc Inc Inc Inc Inc nc Inc In Inn In In ......
You are connected. Connected
to a soybean oil, Honeysoy our
and Ultra-Soy textured soy protein
supplier with direct links to farmers.
Connected to a dedicated partner that
provides the quality, consistency and
service you depend on. To connect with
CHS and make your vision a reality,
visit chsinc.com/connected.
*Information is accurate as of October 2011, to the best of Archer Daniels Midland Companys knowledge.
For customers around the world, ADM draws on its resourcesits people, products, and market perspective to
help them meet todays consumer demands and envision tomorrows needs.
800-422-1688 | milling@adm.com | www.adm.com/milling
2012 Archer Daniels Midland Company
With the expert insight you need for your next product,
ADM Milling works for you.
As one of North Americas leading millers, ADM provides R&D teams
with a wide range of our products for their formulations, but thats not
all. We also nd ways to help you take advantage of the latest customer
trends. From formulation to testing, well help you bring consumer-preferred
products to market all while keeping a close eye on your bottom line.
Its just one of the many ways were working for you.
To learn more about how ADM Milling works for you, contact us at
milling@adm.com.
Or, visit us online at adm.com/milling.
7 / March 13, 2007 Milling & Baking News bakingbusiness.com / world-grain.com
A close look at Toyotas entry into our milling
W
elcoming a new major investor to four
milling does not happen all that frequently
even though milling wheat into four is a
business that has a presence in almost every country
of the world. When the investor turns out to be one
of the worlds largest and most admired industrial
enterprises, its decision to participate in four
milling merits more than cursory attention. For that
reason, the announcement several months ago that
a unit of the Toyota Group, by the name of Toyota
Tsusho Corp., had become a partner in establishing
a new four milling company in Indonesia was
worthy of more than routine attention from four
millers around the globe as well as by those that
will be directly competing with this new enterprise.
Toyota Tsusho is one of many different businesses
within the Toyota Group, which is known as being
among the worlds largest vehicle manufacturers.
Set up in 1948 to handle the auto groups interna-
tional activities, Toyota
Tsusho has grown into an
enterprise with capital of
65 billion yen ($850 mil-
lion) and with a range of
activities that focus on in-
ternational marketing of autos made by the group
in Japan, steel-making and electronics, air condi-
tioning and wheel assemblies, and of greatest in-
terest in this context, Produce & Foodstuffs. The
latter division initially focused on providing grain
and other ingredients for Japans feed manufactur-
ing industry and subsequently grew into one of
the nations largest grain importers operating four
large port elevators and making direct delivery to
feed plants. From this start, its business grew into
proprietary trading in wheat and other grains, deal-
ings in four in China and Southeast Asia, and ex-
tending into baking, frozen food manufacturing,
sugar refning and Bluefn tuna culture.
The move into four milling came through a part-
nership with a Malayan milling company and an
Indonesian investment business. The group will
build a new mill in Jakarta with 1,500 tonnes of daily
wheat milling capacity at an estimated cost of $66
million. In announcing its participation, Toyota cited
its expanding interest in food, particularly the grain
business, as a feld of concentration outside the au-
tomotive industry. It goes on to note that Indonesia
has the potential to replace Japan as Asias largest
wheat importer and that it sees its entry into milling
as a way to enhance and expand the groups value
chain for increased stable procurement and supply.
The implication is that helping to assure food to
meet growing demand in Asia will also help stabi-
lize Toyotas presence.
Just as meaningful as Toyotas entry into milling is
its choice of Indonesia. This not only refects Toyotas
attention to its home continent of Asia, but also the at-
traction of emerging markets for food-related invest-
ing by international companies. Indonesia is already
home to one of the largest national milling companies
in the world, Bogasari, which is a part of the PT Indo-
food Sukses Makmur enter-
prise. In the frst half of this
fscal year, Indofood posted
a sales gain of 21% and a
12% increase in net profts,
spurred by the success of its
instant noodles. These are replacing rice as the diets
mainstay because of low cost and marketing and
product enhancements.
For millers operating in the highly competitive
markets of North America and Europe, these emerg-
ing nations should also have considerable appeal.
This move by Toyota may actually serve as a wake-up
call or at least a reminder of the promise of growth
in these distant lands. In the case of Indonesia, the
worlds fourth most populous nation with 240 mil-
lion, consumption is driven more by supply than by
demand. Building the new mill will assure an expand-
ed supply to satisfy the pent-up demand that is be-
ing driven both by urbanization and income growth.
Recognizing the great success Toyota has achieved in
marketing its autos around the world should prompt
considerable scrutiny of what its entry might mean
into four milling. MBN
MORTON SOSLAND, EDITOR-IN-CHIEF
WERE EAGER TO GET YOUR FEEDBACK: E-mail editor@sosland.com or write to us at
Milling & Baking News, 4800 Main Street, Suite 100, Kansas City, Mo, 64112
EDITORIAL STAFF
Editor-in-chief
Morton I. Sosland
Executive editor, markets
Neil N. Sosland
Editor
L. Joshua Sosland
Senior editor, markets
Jay S. Sjerven
Managing editor
Eric J. Schroeder
Associate editor
Jeff Gelski
Assistant editor
Ron Sterk
Internet editor
Allison Gibeson
Graphic designer, market
graphics, data
Christina Sullivan
PUBLISHING STAFF
Chairman
Charles S. Sosland
Vice-chairman
L. Joshua Sosland
President and publisher
Mark Sabo
Associate publisher
G. Michael Gude
Vice-president, chief nancial ofcer
Melanie Hepperly
Audience development director
Don Keating
Director of e-business
Jon Hall
Director of on-line
advertising and promotions
Carrie Fluegge
Promotions manager
Tar Torres
Advertising manager
Nora Wages
Director of design services
Sadowna Conarroe
Circulation manager
Judith Arnone
Digital systems analyst
Marj Potts
Manager of advertising design
Becky White
Editorial
bakingbusiness.com / world-grain.com Milling & Baking News January 24, 2012 / 7

Recognizing the great success Toyota
has achieved in marketing its autos
around the world should prompt
considerable scrutiny of what its entry
might mean into our milling.
266% of the 1982-84 average,
up 5.8% from a year ago. For
all food at home, the December
index was 230, up 5.7% from
December 2010.
WASHINGTON The average
price paid for white pan bread
rose while whole wheat bread
fell in December, according to
the latest data from the Bureau
of Labor Statistics of the U.S.
Department of Labor. The
national average retail price of
white pan bread was 142c, up
2.1c per lb from November and
up 3.4c from December 2010.
At 207.3c per lb, the national
average price for whole wheat
bread was down 2c per lb from
November but up 19.3c per
lb from December 2010. The
national average price of family
four in December was 51c per
lb, down 0.7c from November
but up 6.9c from December
2010. It was the third straight
month of lower prices.
MINNEAPOLIS The
Minneapolis Grain Exchange
announced the Commodity
Futures Trading Commission
approved changes to the
exchanges hard red spring wheat
futures contract. Beginning with
the September 2012 contract,
the U.S. origin condition will
be removed from the contract
ensuring Canadian supplies
may be delivered in satisfaction
of open spring wheat futures
positions. Effective with the May
2013 contract, there will be a
specifcation establishing limits
on vomitoxin levels in delivered
wheat. Wheat with 2 parts per
million vomitoxin or less may be
delivered at no discount to the
prevailing futures price. Wheat
with levels over 2 p.p.m. but
below 3 p.p.m. may be delivered
but at a 20c-per-bu discount, and
wheat with vomitoxin in excess
of 3 p.p.m. may not be delivered
at all. MBN
unsecured notes due in 10 years.
Following the announcement,
Fitch Ratings assigned a rating
of BBB to Grupo Bimbos pro-
posed senior notes issuance.
Bimbos ratings are supported
by its important size and
scale within the global bakery
industry, its strong brand recog-
nition and positioning in the
markets where it operates, and its
extensive distribution network
that provides a key competitive
advantage, Fitch said.
OMAHA Privately-held
Gavilon L.L.C., one of the
largest grain, processing and
merchandising companies in
the United States, is being put
up for sale,
ac c or di ng
to reliable
sources in
the company. Milling & Baking
News has learned the companys
2,000 employees received
notifcation in recent days that
Gavilons owners were looking
to sell the business. Without
directly confrming or denying
the company is for sale,
Jonathan Gasthalter, a Gavilon
spokesperson, acknowledged
strategic alternatives are under
exploration at the company.
Gavilon was established in
2008 with the sale by ConAgra
Foods Inc. of its Trading and
Merchandising business to
Ospraie Management L.L.C.
Special Opportunities Fund in a
$2.1 billion transaction.
WASHINGTON The
Consumer Price Index for baked
foods and cereal products rose
0.1% in December, according to
the Bureau of Labor Statistics
of the U.S. Department of
Labor. The index for all food
at home, meanwhile, increased
0.3%. The December index for
Cereals and Bakery Products
before seasonal adjustment was
Bread pricing mixed
in December
C.P.I. for baked foods,
cereal climbs 0.1%
Late News WEEK OF JANUARY 24

sales@mennel.com
www.mennel.com
The U.S.D.A. on Jan. 12
forecast the 2012 soft red
winter wheat carryover
at 258 million bus, down
1 million bus from the
previous projection
but up 51% from 171
million bus in 2011.
The recent ve-year
average carryover was
150 million bus with a
recent low of 55 million
bus in 2008.
Gavilon employees told
company may be sold
Changes made to hard
spring wheat contract
Continued from Page 1
Business
Ralcorp board approves plan to

spin off Post Holdings
ST. LOUIS The board of directors of
Ralcorp Holdings, Inc. has approved
the separation of the companys
subsidiary, Post Holdings, Inc.
We are pleased with the progress of
our separation plans for Ralcorp and
Post, said William P. Stiritz, chairman
of Ralcorps board of directors. The
separation will enable both companies
to focus on their respective business
strategies, while allowing investors
to select discrete themes in terms of
branded and private-brand foods. The
boards actions refect our confdence
in the underlying strengths of these
companies and their ability to create
value for shareholders.
Under terms of the separation,
Ralcorp will distribute at least 80%
of its outstanding shares of common
stock of Post to holders of Ralcorp
common stock of record as of the
close of business on Jan. 30. Each such
holder will receive one share of Post
common stock for every two shares
of Ralcorp common stock held on Jan.
30, with distribution taking effect at
11:59 p.m., Eastern Time, on Feb. 3.
Ralcorp noted that if the conditions
have not been satisfed or waived
on Feb. 3, the distribution date may
be extended until the conditions are
satisfed or waived.
Approximately 34.5 million shares
of Post common stock are expected to
be outstanding immediately following
the separation, Ralcorp said.
No fractional shares of Post
common stock will be distributed in
connection with the distribution,
Ralcorp said. Fractional shares
that Ralcorp shareholders would
otherwise have been entitled to
receive will be aggregated and sold in
the public market by the distribution
agent. The aggregate net proceeds
of these sales will be distributed
ratably to those shareholders who
would otherwise have been entitled
to receive fractional shares.
The distribution of Post shares will
be made in book-entry form, and no
action or payment by
Ralcorp shareholders
is required to
receive Post shares.
No physical share
certifcates of Post
will be issued. An
information statement
containing details of
the separation and
important information
about Post will be
mailed to Ralcorp
shareholders prior to
the distribution date.
Ralcorp said the
separation of Post was
structured in such a
manner that it will qualify as a tax-free
distribution to Ralcorp shareholders
for U.S. federal tax purposes. But
cash received in lieu of fractional
shares will be taxable, Ralcorp said,
and shareholders should consult
their tax advisers with respect to U.S.
federal, state, local and foreign tax
consequences of the Post separation.
Ralcorp shares will continue to
trade on the New York Stock Exchange
under the symbol RAH through and
after the Feb. 3 distribution date. Any
holders of shares of Ralcorp common
stock who sell Ralcorp shares on
or before Feb. 3 also will be selling
their right to receive shares of Post
common stock. In addition, Ralcorp
said it expects its shares will trade
ex-distribution (without the right to
receive shares of Post common stock)
on or about Jan. 26, and continue
through the distribution date under
the symbol RAH WI.
Meanwhile, Post common stock
is expected to begin when issued
trading on the N.Y.S.E. under the
symbol POST WI beginning on Jan.
26. On the distribution date, when
issued POST WI trading will end
and regular-way trading under the
symbol POST will begin.
Earlier this month,
new boards of directors
of Ralcorp Holdings,
Inc. and Post Holdings,
Inc. were unveiled.
The boards will go
into place after the
completion of the
planned separation
of the Post cereal
business from Ralcorp.
The Ralcorp Hold-
ings board of directors
will include J. Patrick
Mulcahy as chairman
along with members
Benjamin Ola. Akande,
Bill G. Armstrong,
Jonathan E. Baum, Berry H. Beracha,
Kevin J. Hunt, David W. Kemper,
Patrick J. Moore and David R. Wenzel.
The Post Holdings board of directors
will include William P. Stiritz as
chairman along with members David
R. Banks, Terence E. Block, Jay W.
Brown, Edwin H. Callison, Gregory L.
Curl, William H. Danforth, Robert E.
Grote and David P. Skarie.
We are very excited to have
such an experienced and talented
group of individuals to lead Ralcorp
and Post as each company moves
forward independently, Mr. Stiritz
said. These directors have proven
track records of success, and we are
confdent that their leadership and
expertise, along with the commitment
and passion they share for the
businesses, will result in signifcant
value for our shareholders. MBN
MGP Ingredients creates new holding company
ATCHISON, KAS. MGP Ingredients,
Inc. has created a new holding
company structure, but the company
said its business operations and those
of its subsidiaries will not change as a
result of the reorganization.
As part of the reorganization,
outstanding shares of the capital
stock of the former parent company,
which formerly was named MGP
Ingredients, Inc. and now is named
MGPI Processing, Inc., were converted
automatically, on a share for share basis,
into identical shares of common stock
and preferred stock of the new holding
company. The new parent company is
named MGP Ingredients, Inc.
The articles of incorporation, the
bylaws, the executive offcers and the
board of directors of the new holding
company are the same as those of the
former MGP Ingredients, Inc. in effect
immediately prior to the reorganization,
MGPI said. The common stock of the
new holding company will continue to
be listed on the NASDAQ Global Select
Market under the symbol MGPI. The
rights, privileges and interests of the
companys stockholders will remain the
same with respect to the new holding
company.
Founded in 1941, MGP Ingredients,
Inc. develops and produces value-
added, grain-based starches, proteins
and food grade alcohol products for
the branded packaged goods industry.
The company has facilities in Atchison
and Onaga, Kas. MBN
Business
Kraft to cut 1,600 jobs as part of
realignment, consolidation
NORTHFIELD, ILL. Kraft Foods
Inc. plans to cut about 1,600 jobs in
North America as part of its move
to help ensure its North America-
based snacks and grocery businesses
are well-positioned to become two
independent public companies
before the end of 2012. Kraft said
approximately 40% of the job cuts are
due to realignment of the companys
U.S. Sales organization, with the rest
the result of consolidation of U.S.
management centers and streamlining
of the corporate and business unit
organizations.
When we announced our
decision to create two world-class
companies last August, we said both
would be leaner, more competitive
organizations, said Irene Rosenfeld,
chairman and chief executive offcer.
For the past year, the North American
team has been working to streamline
operations to deliver sustainable
top-tier performance and continue
to invest in our iconic brands. Were
confdent that this transformational
work will improve effectiveness
and fuel the future growth of both
companies.
As part of the realignment of U.S.
Sales, Kraft said it plans to create
more focused teams, allowing each
company to customize its approach
to in-store sales and execution to
maximize impact.
The snacks business will leverage
a direct-store delivery model, with
General Mills adds more whole
grains to more cereals
MINNEAPOLIS General Mills, Inc.
said more than 50 of its Big G cereals
now feature the white check, which
signifes the cereal has more whole
grain than any other single ingredient.
Additionally, cereals with the white
check also now highlight the grams of
whole grain per serving on the side of
the box.
Whole grain makes a vital
contribution to good health, and
we know Americans value it in
their cereals, said Jeff Harmening,
president of General Mills Big G cereal
division. As a company, we always
strive to improve the health and
nutrition of our products while never
compromising taste. Thats why were
proud to announce that, no matter
which of our more than 50 cereals
people choose, they can be assured
theyre getting more whole grain than
any other single
ingredient, with
the same great taste
their family loves.
Travis Stork, emer-
gency room phys-
ician and host of
the TV show The
Doctors, has partnered with General
Mills to help with whole grain
education, including introducing
Fast Lane for Whole Grain, an on-
line educational game. In the game,
consumers are challenged to quickly
identify products that have whole grain
as the frst ingredient while shopping
virtual grocery store aisles. Players have
the option to enter a sweepstakes to win
one of each of the more than 50 cereals
with the white check. The sweepstakes
runs through March 18, 2012, on
www.WholeGrainNation.com, and 50
winners will be selected during the 10-
week sweepstakes.
Were committed
to making it easier to
choose whole grain,
said Jean Storlie,
M.S., R.D., director
of the General
Mills Bell Institute
of Health and Nutrition. Whole grain
is a powerful nutrient package that has
vitamins, minerals, phytonutrients and
fber that are important to our diets
and too few of us are getting enough
of it. MBN
most U.S. retail sales employees
shifting to the North American region
of the global snacks company, Kraft
said, while the grocery company will
reorganize within the United States.
Local retail support will be contracted
to two sales agencies, with Kraft
oversight and direction.
Kraft anticipates having both U.S.
Sales organizations in place by April 1.
Additionally, Kraft said it will
consolidate its U.S. management
center locations from four to two.
Consolidating our management
locations is a sound business move,
said Tony Vernon, executive vice-
president and president, Kraft Foods
North America and c.e.o. of the
future grocery company. Having
the majority of our business units
together in one location will provide
greater development opportunities for
our people and will help us continue
building our brands more effciently
and collaboratively.
The Beverages business unit in
Tarrytown, N.Y., and the Planters
brand in East Hanover, N.J., will
relocate to the Chicago-land area
by December 2012. Most of the
employees affected by these moves
will have the option to transfer with
their businesses to the future grocery
company headquarters in Chicago-
land. Kraft also will close its Glenview,
Ill., management center by the end of
2013.
The future global snacks company
also will have its headquarters in the
Chicago-land area, with the choice of
site currently under consideration.
The North American region for the
global snacks company will be based
at the East Hanover campus.
In Canada, both companies will
retain sites in the Greater Toronto
area, Kraft said, with the Kraft grocery
business remaining in the current Don
Mills offces, and the snacks business
moving to recently opened offces
in Mississauga. The Madison, Wis.,
management center will remain the
site for the Oscar Mayer business unit.
Elaborating on the planned
reduction of the 1,600 jobs, Kraft
cited its efforts throughout 2011
to lower costs to provide funds to
invest in its brands. About 20% of the
job eliminations are currently open
positions.
Making these tough choices is
never easy, and we recognize the
impact these changes will have on
many of our people and their families,
Mr. Vernon said. But our plan for a
more nimble company, combined with
the current economic and competitive
pressures, led us to this point. Taking
the necessary steps now will enable us
to continue investing in our beloved
brands to drive growth. MBN
T
u
r
n
i
n
g

p
r
o
d
u
c
t

i
d
e
a
s

i
n
t
o

p
r
o
f
t
s
2011 Cargill Incorporated.
W
h
a
t
d
o
e
s
it
t
a
k
e
t
o
t
u
r
n
n
e
w
-p
r
o
d
u
c
t
id
e
a
s
in
t
o
r
e
v
e
n
u
e
?
v
e
r

h
o
w
o
w

w
e

c
a
n

h
e
lp

y
o
u

t
r
a
n
s
f
o
r
m

D
is
c
o
v
u
c
t

id
e
aa
s

s
in
t
o

p
r
o
f
t
s
.

V
is
it

p
r
o
d
u
z
o
n
M
illin
gg
.
c
o
m

o
r

c
a
ll
1
-8
0
0
-7
4
2
-4
5
0
6
.

H
o
r
iz
A
t H
o
riz
o
n
M
illin
g
, w
e
k
n
o
w
: fo
o
d
-te
c
h
n
o
lo
g
y
a
n
d

n
u
tritio
n
e
x
p
e
r
ts
, in
s
ig
h
tfu
l k
n
o
w
le
d
g
e
o
f c
o
n
s
u
m
e
r
tre
n
d
s
a
n
d
in
g
re
d
ie
n
ts
th
a
t m
a
k
e
p
ro
d
u
c
ts
h
e
a
lth
ie
r o
r
m
o
re
in
d
u
lg
e
n
t
o
r b
o
th
! A
n
d
w
h
e
n
y
o
u
a
d
d
C
a
rg
ills

c
a
p
a
b
ilitie
s
to
th
e
m
ix
, y
o
u
v
e
g
o
t th
e
w
in
n
in
g
re
c
ip
e
.
Industry Activities
With NAMA funding, Fran Churchill
named milling instructor at K.S.U.
WASHINGTON Fran Churchill has
been named the new North American
Millers Association-funded instructor
of milling in the Milling Science and
Management program at the Grain
Science and Industry Department of
Kansas State University.
A graduate of Kansas State
University with a bachelors of
science degree in milling science and
management, Ms. Churchill has more
than 20 years of milling industry
experience.
She began her career in 1984 as an
assistant mill superintendent at the
Pillsbury Co. mill in St. Louis. From
1989 to 2007 she held various mill
management roles at such companies
as ConAgra Mills, General Mills, C.H.
Guenther & Son, and The Mennel
Milling Co.
Since 2010 she has been teaching
mathematics in Hamblen
County, Tenn., and currently is
enrolled in the master of science
in mathematics education
program at the University of
Tennessee.
The milling industry hires
many K-State graduates,
said Breck Barton, chairman
of the NAMA Milling Science and
Operations Committee. Fran
Churchill will provide the kind of
hands on instruction and education
the milling industry wants K-State
graduates to have when they come to
work in our mills.
Mary Waters, president of
NAMA, added, The milling science
management program is the only
university program in the U.S. that
provides education and training for
the next generation of mill managers
and technology specialists, and
the position at K-State is an
investment in the human capital
important to the industry.
Dirk Maier, head of the
Grain Science and Industry
Department at Kansas State,
said the department is excited
about the addition of Ms.
Churchill to the faculty.
NAMAs funding of this faculty
position refects the priority its
member companies place on
enhancing the future workforce by
recruiting, educating and preparing
the next generation of milling industry
professionals, Mr. Maier said. MBN
First Lady set to unveil new
federal school lunch standards
WASHINGTON The U.S.
Department of Agriculture said First
Lady Michelle Obama and Secretary
of Agriculture Tom Vilsack are set to
unveil new nutrition standards for
federally funded school lunches.
Ms. Obama and Mr. Vilsack,
together with Kevin Concannon,
Undersecretary for Food, Nutrition
and Consumers Services, will make
the announcement Jan. 25 at the
Parklawn Elementary School in
Alexandria, Va.
The child nutrition reauthorization
bill, the Healthy, Hunger-Free Kids
Act of 2010, was signed into law in
December 2010. The law authorizes
funding for federal school meal and
child nutrition programs and is
meant to increase access to healthy
food for low-income children.
The 2010 law reauthorizes child
nutrition programs for five years
and includes $4.5 billion in new
funding for these programs over
10 years. The U.S.D.A. said the law
represented the first major change
in school meals in over 15 years.
The new standards make the
same kinds of changes that many
parents are already encouraging
at home, including ensuring kids
are offered fruits and vegetables
every day of the week, substantially
increasing offerings of whole grain-
rich foods, offering only fat-free or
low-fat milk varieties and making
sure kids are getting proper portion
sizes, the U.S.D.A. said. MBN
Nominations solicited for
Milling Operative of the Year
KANSAS CITY Nominations are
being accepted until April 6 for the
2012 Milling Operative of the Year
award, which recognizes excellent
performance by a miller. Established
in 1986 by Milling & Baking News,
the award will be presented in May
to the practicing milling operative
who has made the most signifcant
contribution to the progress of a
plant, a company and the industry
from an operating point of view.
The 27th annual Milling Operative
of the Year award will be presented on
May 9 at the annual I.A.O.M. Awards
Breakfast of the 116th annual technical
conference and trade show of the
International Association of Operative
Millers, May 7-11 in Spokane, Wash.
The winner will receive an inscribed
Churchill
plaque, and a scholarship will be
established in the winners name at
Kansas State University at Manhattan.
Selection of the winner will be
made by the staff of Milling & Baking
News. Scott Martin of ConAgra Mills
received the award in 2011.
Nominations should be submitted
by April 6 in a summary of not more
than two pages to: Eric Schroeder,
Managing Editor, Milling & Baking
News, 4800 Main St., Suite 100, Kansas
City, Mo. 64112; fax: (816) 756-0494;
e-mail: eschroeder@sosland.com. MBN
The new standards make the same kinds of changes
that many parents are already encouraging at home,
including ensuring kids are offered fruits and vegetables
every day of the week, substantially increasing offerings
of whole grain-rich foods, offering only fat-free or low-
fat milk varieties and making sure kids are getting proper
portion sizes.
The U.S. Department of Agriculture
D9F:97H
6@9B8
CUT T I NG E DGE T E CHNOL OGY AND T HE AR T OF OL D WOR L D B AK I NG
Sours | Dough I mprovers | Bases, Mi xes and Concent rat es | Grai n Bl ends | Speci al t y Product s
VUgYga]lYg
UbXWcbWYbhfUhYg
1900 S. Park Ave. | Streamwood, IL 60107 | Toll Free (888) 276-5483 (630) 830-0340 | Fax (630) 830-0356 | www.bakewithbrolite.com
h\Y
Achieve easy pliability and elasticity for rolling long
loaves of French and Italian breads. Speed up produc-
tion of Kaiser rolls, French, Italian, & Vienna breads
with bromate free, no-time dough bread bases. Give
your English mufns outstanding volume and porosity
every time.
Data
Winter wheat plantings up 3%
from a year ago
Winter wheat seedings
1,000 Change from last year
acres 2012 2011 2010 Per cent Acres
Ala. 220 220 150 0% 0
Ariz. 8 7 9 14% 1
Ark. 520 620 200 -16% (100)
Calif. 660 670 660 -1% (10)
Colo. 2,400 2,300 2,450 4% 100
Del. 90 80 50 13% 10
Fla. 20 12 12 67% 8
Ga. 300 250 170 20% 50
Idaho 780 820 750 -5% (40)
Ill. 660 800 330 -18% (140)
Ind. 370 430 250 -14% (60)
Iowa 28 22 15 27% 6
Kas. 9,500 8,800 8,400 8% 700
Ky. 600 540 390 11% 60
La. 290 240 125 21% 50
Md. 290 260 180 12% 30
Mich. 570 700 530 -19% (130)
Minn. 50 30 65 67% 20
Miss. 500 360 125 39% 140
Mo. 770 790 370 -3% (20)
Mont. 2,200 2,250 2,050 -2% (50)
Neb. 1,400 1,520 1,600 -8% (120)
Nev. 19 15 19 27% 4
N.J. 28 35 28 -20% (7)
N.M. 460 435 470 6% 25
N.Y. 100 120 110 -17% (20)
N.C. 800 700 500 14% 100
N.D. 700 400 330 75% 300
Ohio 580 880 780 -34% (300)
Okla. 5,500 5,100 5,300 8% 400
Ore. 810 830 820 -2% (20)
Pa. 165 185 165 -11% (20)
S.C. 220 190 145 16% 30
S.D. 1,350 1,650 1,350 -18% (300)
Tenn. 450 420 260 7% 30
Texas 5,900 5,300 5,700 11% 600
Utah 145 130 135 12% 15
Va. 340 270 180 26% 70
Wash. 1,720 1,760 1,750 -2% (40)
W. Va. 9 10 7 -10% (1)
Wis. 265 345 240 -23% (80)
Wyo. 160 150 165 7% 10

U.S. 41,947 40,646 37,335 3% 1,301
WASHINGTON The National Agri-
cultural Statistics Service of the U.S. De-
partment of Agriculture on Jan. 12 esti-
mated the area seeded to winter wheat for
harvest this summer at 41,947,000 acres,
up 1,301,000 acres, or 3%, from 40,646,000
acres seeded for harvest in 2011. The
U.S.D.A. number was above the average
trade estimate near 41 million acres.
The U.S.D.A. in commentary ac-
comp-anying its Winter Wheat Seed-
ings report said, More acres were
seeded this year due to higher prices
and an acreage rebound in Kansas,
Oklahoma and Texas, where dry condi-
tions had limited 2011 planted acres.
The U.S.D.A. estimated the area
planted to hard red winter wheat for
harvest in this year at 30.1 million
acres, up 1.6 million acres, or 6%, from
28.5 million acres in 2011 and com-
pared with the recent fve-year aver-
age planted area of 30.6 million acres.
The estimate for the current year was
above the average of pre-report trade
estimates at 29.6 million acres.
Acreage increased from a year ago
in all states in the hard red winter
wheat-growing region except in Cali-
fornia, Montana, Nebraska and South
Dakota. The U.S.D.A. commented,
The dry fall limited planting in South
Dakota, while winter wheat-seeded
area in Nebraska is a record low.
Wheat area in the key state of Kan-
sas was estimated at 9,500,000 acres,
up 8% from 8,800,000 acres in 2010 and
the largest area planted to wheat in
the state since 2008, when the wheat-
planted area was 9,600,000 acres.
Texas and Oklahoma hard winter
wheat plantings were up 11% and
8%, respectively, from 2011. The Texas
winter wheat area was 5,900,000 acres,
and Oklahoma winter wheat area was
5,500,000 acres.
The U.S.D.A. estimated the area
planted to soft red winter wheat for
harvest this year at 8.37 million acres,
down 0.19 million acres, or 2%, from
8.56 million acres in 2011 and compared
with a fve-year average soft red win-
ter wheat area of 8.4 million acres. The
average of pre-report trade estimates
was 7.7 million acres. The U.S.D.A.
said, While large acreage increases
from last year are estimated in the
Southeast, large acreage decreases oc-
curred in most states in the Corn Belt
and Northeast, primarily due to a late
row crop harvest. In Ohio, a record
low area was planted due to wet soil
conditions during the fall of 2011.
The U.S.D.A. estimated white win-
ter wheat plantings at 3.49 million
acres, down 0.92 million acres, or
21%, from 4.41 million acres in 2011
and compared with the recent fve-
year average of 4.22 million acres.
The trade before the seedings report
estimated white winter wheat area at
3.7 million acres. The U.S.D.A. said,
Planted acreage in the Pacifc North-
west (Idaho, Oregon and Washington)
is down from last year. Seeding started
off slow but by the end of October was
at or ahead of the fve-year average in
all three states. By Nov. 6, seeding was
virtually complete in the region with
83% of the acreage emerged in Wash-
ington, 90% emerged in Idaho and
48% emerged in Oregon.
The U.S.D.A. forecast desert durum
(Arizona and California) plantings for
harvest in 2012 at 230,000 acres, up
15% from 200,000 acres planted for
2011. The U.S.D.A. said, Planting is
ongoing in Californias San Joaquin
and Imperial Valleys. Weather condi-
tions have been good for planting. MBN
U.S.D.A. lowers 2012 wheat carryover
forecast to 870 million bus
WASHINGTON The Economic
Research Service of the U.S. Department
of Agriculture on Jan. 12 forecast the
carryover of wheat in the United States
on June 1, 2012, at 870 million bus,
down 8 million bus from 878 million
bus as the December projection but up
8 million bus from 862 million bus in
2011. The decrease from the December
forecast was the result of an increase in
wheat exports projected for 2011-12 that
more than offset a lower projection for
domestic use in the year. The projected
U.S.D.A. 2012 wheat carryover number
was above the average of pre-report
trade estimates at 831 million bus.
The U.S.D.A. projected domestic
food use of wheat in 2011-12 at 935
million bus, down 5 million bus
from December but up 9 million
bus from 926 million bus in 2010-
11. In commentary accompanying
the supply-and-demand data, the
U.S.D.A. said, Food use is projected
5 million bus lower based on four
production data recently reported
by the North American Millers
Association for July-September 2011.
Feed and residual use of wheat was
projected at 145 million bus, down 15
million bus, or 9%, from 160 million
bus in December but up 13 million bus,
or 10%, from 132 million bus in 2010-11.
Exports of U.S. wheat during 2011-
12 were projected at 950 million bus,
up 25 million bus from the December
forecast but down 339 million bus, or
26%, from 1,289 million bus in 2010-11.
The U.S.D.A. forecast the average
farm price of wheat in the United
States in 2011-12 at $6.95@7.45 a bu,
compared with $7.05@7.55 as the
December projection and $5.70 in
2010-11 and $4.87 in 2009-10. MBN
Business
Hostess gets go-ahead for DIP nancing;

union leader lashes out at management
IRVING, TEXAS Hostess Brands Inc., which fled for bankruptcy
protection on Jan. 11, said it has received authority from the U.S.
Bankruptcy Court for the Southern District of New York to enter
into a $75 million debtor-in-possession (DIP) fnancing facility
and access $35 million of it until a hearing scheduled for Jan. 26 for
further approval for the DIP. The fnancing will allow Hostess to
continue routine operations while undertaking a comprehensive
fnancial and operational restructuring.
The fnancing is being provided by a group of the companys
existing frst-lien lenders, led by Silver Point Capital, L.P.
Additionally, Judge Robert D. Drain also authorized the
continuation of wages for employees without interruption and
maintenance of all customer programs, among other things.
The motions granted today will ensure that Hostess
continues its operations without any disruptions
so that its products will remain available and
on store shelves everywhere, said Brian
Driscoll, president and chief executive
offcer. With the access to the DIP
fnancing, Hostess will continue to provide
wages and benefts to our employees and
payments to suppliers going forward.
The bankruptcy court said Hostess was focused on completing
a successful reorganization and not on selling all or portions of
the company.
The company is strongly committed to continuing its good
faith bargaining with its unions, and we remain hopeful that
we can reach a consensual agreement on the terms of our labor
contracts before fling 1113 and 1114 motions, Mr. Driscoll said.
Expressing hope that Hostess Brands Inc. will survive in the
wake of the recent bankruptcy fling, the leader of a principal union
representing baking employees issued a strongly worded statement
countering assertions the companys fnancial problems are due to
union contracts and pension and health benefts obligations.
I fnd it deeply offensive and highly disingenuous for the
company to claim that its fnancial woes are the result of its
union contracts and pension and health benefts obligations,
said Frank Hurt, president of the Bakery, Confectionery, Tobacco
Workers and Grain Millers International Union. We contend that
the company is in dire fnancial shape because of a string of failed
business decisions made by a series of ineffective executives who
have been running this company for the past decade.
According to the B.C.T.G.M., the union represents about 5,000
Hostess workers.
C.e.o. ling: Far more than labor
problems prompted bankruptcy
indeed draw a picture of crippling
pension obligations that cover not only
Hostess employees but also former
baking employees of companies no
longer in business. The affdavit also
offers examples of workforce rules
the company said puts Hostess at a
signifcant competitive disadvantage.
Still, the affdavit attributes the
companys lack of competitiveness to
factors extending far beyond issues
of labor relations. Additionally, it
suggests the company came out of
bankruptcy in 2009 with far too much
debt to succeed going forward, a factor
omitted in the companys bankruptcy
announcement.
The lengthy affdavit offers a
detailed look at Hostess and what
precipitated the companys return to
bankruptcy. In the frst two years since
exiting from bankruptcy, Hostess
sustained an aggregate loss totaling
$479 million (a fgure that includes
$132 million in special write-off
charges).
Setting the stage for the narrative,
Mr. Driscoll described Hostesss
industry environment as one of high
levels of competition and related
pricing pressures, thin operating
margins and competitors with
more sophisticated technology and
signifcant cost advantages.
He said Hostesss competition
employs work forces that either are
Announcing the bankruptcy fling, Hostess said its current
cost structure is not competitive, primarily due to legacy
pension and medical beneft obligations and restrictive work
rules. The company expressed the hope it will emerge from
bankruptcy with competitive employee beneft plans.
According to the B.C.T.G.M., the union has been working
with Hostess for months to identify an amenable resolution that
would address the companys fnancial diffculties.
Throughout this process, the company has never provided
the union with a legitimate proposal that could be taken to the
membership for consideration, he said.
Mr. Hurt expressed great concerns about the jobs at Hostess at
risk and the well being of union members working at Hostess.
We had hoped that the company would
emerge from the last restructuring stronger
and more competitive, he said. Our
members sacrifced a great deal to try and
save the company the last time.
The B.C.T.G.M. has contracts with
dozens of baking companies across the country,
including Bimbo Bakeries USA, the nations largest and
most successful. The vast majority of those companies are
doing just fne because they have experienced baking industry
professionals managing them.
Mr. Hurt took particular issue as highly misleading the
companys portrayal in the media of its pension obligation
problems.
Hostess Brands had been a longstanding participant in the
industrys Taft-Hartley multiemployer pension fund, the union
said. The nearly $1 billion the company refers to is its withdrawal
liability. Every participant in a Taft-Hartley fund has withdrawal
liability, which ensures that benefciaries will receive negotiated
pension benefts if a company leaves the fund.
The contributions Hostess had paid into the fund were
negotiated through the collective bargaining process and are
part of an overall economic compensation package. Pension
benefts that retirees receive each month are paid by the fund
and not the individual companies.
Ultimately, Mr. Hurt expressed the hope solutions will be found.
We remain hopeful that solutions can be found to ensure
the permanent continuation of Hostess Brands, he said. We
will work with the stakeholders throughout the process to fnd
a solution that protects the interests of our members and helps
enable the company to remain a viable business entity. MBN
Business
not unionized or are only partly
unionized. The difference allows other
bakers to operate with signifcantly
less burdensome operating restrictions
and overall cost structures, he said.
Because of its long-standing
unionized workforce, Hostess has
significant legacy costs, mostly
as pension and medical benefit
obligations that its competitors do
not share, he said.
Of the companys 19,000 em-
ployees, 83% of union members
subject to 372 collective bargaining
agreements, Mr. Driscoll said.
Of these, 92% are members of
the International Brotherhood of
Teamsters or the Bakery, Con-
fectionery, Tobacco Workers and
Grain Milers International Union.
Because their workforce is heavily
unionized, the debtors (Hostess)
also participate in 40 multiemployer
pension plans, which, by law, exist
only where one or more employers
each contribute to a pension plan
pursuant to one or more collectively-
bargained agreements, Mr. Driscoll
said. The debtors cash contribution
obligations to these plans go
beyond amounts attributable to the
retirement benefts of the debtors
own workforce; they also encompass
the contributions attributable to the
retirement benefts of the workforces
of other employers who have ceased
to exist or have otherwise withdrawn
from the plans. By statute, the plans
are structured to place the fnancial
burdens of all of the plans retirees
upon those remaining companies
that have active union employees.
Over the last several decades, the
number of companies and the
active employee base supporting
these pension plans have shrunk
signifcantly, thus increasing the
burden on the companies, such as
Hostess, that remain.
As of Dec. 10, 2011, Hostess
had assets of about $1 billion and
liabilities of about $1.4 billion.
The latter figure does not include
contingent liabilities such as the
multiemployer pension obligation.
The company had $592 million in
long-term debt outstanding plus
another $225 million in convertible
notes.
In the companys first year out
of bankruptcy, the period ended
May 29, 2010, Hostess sustained
a loss of $138 million. In the year
that followed, the companys loss
widened to $341 million, including
$132 million in the write-off of
deferred debt issuance costs and
debt discount.
Explaining the deteriorating f-
nancial performance, Mr. Driscoll
said the cash pension contributions
associated with the multiemployer
plans are about $103 million (the
fling also estimated the monthly cost
for the plans at about $8 million ($96
million)). Hostess said it stopped
paying into the plan in August.
The company also has annual
retiree medical obligations that are
far smaller, at about $1.4 million.
Mr. Driscoll laid out elements
from a business plan he said
management has developed and
set the stage for long-term viability
for Hostess. The plan is premised
upon achieving a competitive cost
structure and requires systemic,
dramatic change, he said. Elements
of the plan include:
Complete withdrawal from multi-
employer pension plans;
Addressing legacy health and
welfare costs to significantly
reduce costs, bringing them in line
with the competitive marketplace
Modifying existing collective
bargaining agreements to relax
work rules
Finding new capital investment to
modernize and automate production
and distribution operations; and
A significant reduction of debt
and related expenses
Mr. Driscoll said Hostess has
$860 million in debt outstanding
in addition to its liabilities in
connection with multiemployer
pension plans.
To effect the transformation
changes required for their
businesses, the debtors must
negotiate with their lenders,
unions and the trustees of the
multiemployer pension plans, Mr.
Driscoll said.
He said negotiations with the
unions began before the filing,
adding that liquidity pressures
forced the company to file for
bankruptcy.
Taking a step back, the affdavit
offers extensive background on the
company, including a brief account
of its history and more detailed
developments leading up to
the Jan. 12 bankruptcy
fling.
Hostess operates
36 baking plants,
565 distribution
centers, about 5,500
delivery routes and
570 bakery outlet
stores throughout the
United States.
Established in 1927 as Schulze
Baking Co., the company was
renamed Interstate Brands Corp. in
1937 with a merger with Western
Bakeries Ltd. The company grew
over the next 60 years through
multiple acquisitions. Mr. Driscoll
said the expansion gave the company
a nationwide network of operations
and well known brands but also
left the company with a matrix of
assets and operations that were not
well integrated or streamlined and
that remained burdened with the
legacy labor obligations of each of
its predecessors.
Seeds of trouble in 90s
Even though the company was the
nations largest wholesale baking
company in the 1990s, the excess
capacity, inefficiencies and cost
burdens of its 54 bakeries, more than
1,000 distribution centers and 1,200
bakery outlets across the country
were ultimately not sustainable.
The problems culminated with
a 2004 bankruptcy filing with the
United States Bankruptcy Court for
the Western District of Missouri.
The protracted bankruptcy dragged
Work rules require that, in some instances, even
when a route representative is already visiting a
customer location, that representative may
not move products within that location;
rather, a separate employee must
visit the customer location to move
products from the back room to the
shelf.
Brian J. Driscoll
Hostess Brands
Innovations for a better world.
Your requirements are changing, our solutions are ready. The issue of food
safety has become the dominant driver for the handling of raw materials in the
baking industry. As a provider with decades of experience, Bhler has the
equipment, technologies, and innovative automation for your demands. Our
equipment and processes have been designed specically with a focus on
food safety, including our innovative automation solutions which provide recipe
handling, production planning, and equally important, traceability. Safe food,
satisfying food.
Bhler Inc., PO Box 9497, Minneapolis, MN 55440, 763-847-9900, buhler.minneapolis@buhlergroup.com
on for 4 years because of litigation
with public shareholders, labor
strife, management turnover and a
failed sale process, Mr. Driscoll said.
Key outcomes from the bankruptcy,
he identified, were:
A transition to a privately-held
company from a publically-held one
A highly leveraged capital
structure
A decision to retain legacy union
pension obligations in reliance on
some labor savings and anticipated
operational improvements.
Still a major player in baking
Reviewing developments since
the emergence from bankruptcy,
Mr. Driscoll said Hostess remains
one of the largest baking companies
in the United States with annual
sales of $2.5 billion, about 89% of
which come from route sales. The
companys products are sold
nearly coast-to-coast in
about 175,000 different
customer locations.
In purchasing ingred-
ients and other inputs,
Hostess has as much as
$500,000 in raw materials
in transport daily.
Additionally, the company
stores about $6.5 million of goods in
warehouses and pays storage fees of
about $102,000 monthly.
As of the filing date, Hostess
estimated about $50 million to $60
million is outstanding in debts
to vendors, mostly for goods and
services.
The affidavit offered two examples
of how the companys collective
bargaining agreements put Hostess
at a competitive disadvantage.
The debtors often provide both
bread and cake products to an
individual customer location, Mr.
Driscoll said. The existing work
rules require that, on many routes,
separate trucks must deliver the
bread and cake products to that
single customer location. The work
rules also require that, in some
bakeries and distribution centers,
a separate individual must be used
to load the trucks (the debtors
competitors have drivers who load
their own trucks) and separate
people must load either bread or
cake on a truck.
Finally, work rules require that,
in some instances, even when a
route representative is already
visiting a customer location, that
representative may not move
products within that location;
rather, a separate employee must
visit the customer location to move
products from the back room to the
shelf. Often this pull-up employee
cannot move both bread and cake,
and thus, two pull-up employees
must make this same trip.
Debt of unsustainable levels
In addition to the union related
issues, Mr. Driscoll said the $860
million of secured debt
it has issued is
not sustainable.
Because the
company is com-
petitively dis-
advantaged and
faced a worsening
financial picture,
Hostess in 2010
retained Goldman
Sachs and J.P.
Morgan to explore
sale opportunities, Mr. Driscoll
said. None emerged even after a
wide range of potential buyers
was contacted, including Grupo
Bimbo, Flowers Foods, Hershey,
J.M. Smucker, Kraft Foods Inc.,
Pepperidge Farm and B&G Foods.
The investment banks could not
obtain any offers to purchase any
portion of the debtors businesses.
This failure prompted Hostess to
restructure the company, leading
to the creation of the current
turnaround plan, Mr. Driscoll
said.
He said elements aimed at
reducing its payment obligations to
the multiemployer plans are crucial.
These and other initiatives
are designed to bring the total
compensation packages provided
to the debtors union workforce in
line with those of similarly skilled
domestic workers, Mr. Driscoll
said.
Union negotiations will be needed
to implement a revenue generating
initiative, he said.
Central to boosting revenues is
Because the company is competitively
disadvantaged and faced a worsening
nancial picture, Hostess in 2010 retained
Goldman Sachs and J.P. Morgan to explore sale
opportunities, Mr. Driscoll said. None emerged
even after a wide range of potential buyers
was contacted, including Grupo Bimbo,
Flowers Foods, Hershey, Smucker, Kraft,
Pepperidge Farm and B&G Foods.
The debtors have developed
products based on their best-
selling cake items that
have a longer shelf life
and can withstand
freezing en route
to customers
over longer
transportation
hauls. The formulation and
regulatory process relating to these products is complete,
but the products cannot be rolled out unless the debtors
obtain certain modications to their existing collective
bargaining agreements.
Brian Driscoll
Hostess Brands
Business
finding alternative ways to deliver
product, a capacity restricted
by current collective agreement
packages. The agreements limit
where and how route sales
representatives are able to make
deliveries.
Need access to dollar stores
Many customers expressly forbid
delivery of product directly to
customer store locations, the
affidavit said. As
a result, Hostess
has been unable to
enter potentially
profitable markets
such as dol l ar
st ores, vendi ng
services and movie
t heat ers, t he
affidavit said. Mr.
Driscoll said the
company would
like to outsource
these stops to third-
party distribution operators.
Ready to rollout new products
The debtors have developed
products based on their best-selling
cake items that have a longer shelf
life and can withstand freezing
en route to customers over longer
transportation hauls, he said.
The formulation and regulatory
process relating to these products is
complete, but the products cannot
be rolled out unless the debtors
obtain certain modifications to
their existing collective bargaining
agreements.
The affidavit includes details of
the plan beyond renegotiation of
labor contracts. Several important
moves are needed to enhance the
companys operational efficiencies,
including reducing excess capacity
and making remaining capacity
more efficient. Hostess plans to
upgrade its aging vehicle fleet
and improve its ability to manage
inventory through tracking software
at distribution centers.
Unprofitable bakery outlet stores
need to be closed, and pricing
strategies in this segment need to be
reworked, Mr. Driscoll said. At the
same time Hostess sees a need to
build its administrative capabilities,
the company also recognizes a
need to take substantial steps to
reduce other costs associated with
selling, general and administrative
expenses.
The plan also calls for boosted
advertising and marketing budget.
While committed to pursuing its
turnaround plan, Hostess said its
ability to do so was compromised
by a worsening liquidity crisis.
The company had more than $115
million in cash in 2009, shortly after
emerging from bankruptcy, a figure
that was down to $82 million a year
later. By May 2011, Hostess had
only $35 million in cash and had
$50 million against a line of credit.
Mr. Driscoll estimated the company
went through $250 million in cash
from the bankruptcy emergence
though the end of 2011.
Efforts to negotiate a settlement
with union leaders ramped up in
late 2010.
Teamsters vote barely nal
Hostess management negotiated
changes to the collected bargaining
arrangement with Teamsters, but
in May 2011, union members voted
down the proposed modifications
by a vote of 52% to 48%. In
September, a revised proposal was
presented to the Teamsters and
at least eight in-person meetings
have been held. Hostess met
with the Bakery, Confectionery,
Tobacco Workers and Grain Millers
International Union with detailed
proposals presented a month later,
Mr. Driscoll said. Multiple proposal
revisions have been offered and
numerous meetings with union
representatives have been held, Mr.
Driscoll said.
As liquidity tightened, the need
to resolve the outstanding labor
issues heightened, Mr. Driscoll said.
Finding hinges on concessions
The debtors believed that
(investors) might be willing to make
additional investments into the
business if certain labor concessions
could be obtained and operational
goals achieved, he said.
Toward that end, Hostess was
able to secure some additional
financing but not enough to solve
the debtors fundamental liquidity
problems, Mr. Driscoll said.
Notwithstanding every effort
to preserve cash, the debtors cash
position continued to deteriorate,
he said. Accordingly, after
consultation with its advisors, the
boards of directors of the debtors
authorized them to commence these
chapter 11 cases. MBN
Even though the company was the
nations largest wholesale baking
company in the 1990s, the excess
capacity, inefciencies and cost
burdens of its 54 bakeries, more
than 1,000 distribution centers
and 1,200 bakery outlets across
the country were ultimately not
sustainable.
Brian J. Driscoll, president and chief executive ofcer

David A. Loeser, executive vice-president of human resources
Kent B. Magill, executive vice-president, general counsel and corporate secretary
Richard C. Seban, executive vice-president and chief marketing ofcer
John O. Stewart, executive vice-president and chief nancial ofcer
Gary K. Wandschneider, executive vice-president of operations.
Top management at Hostess Brands Inc.
as listed in the afdavit includes:
Business

Washington
U.S.D.A. unveils plan to close 259
ofces and save $150 million annually
WASHINGTON Secretary of
Agriculture Tom Vilsack on Jan. 9
unveiled a plan to streamline U.S.
Department of Agriculture operations
and cut costs. The plan includes the
closing of 259 domestic offces across the
country as well as seven foreign offces.
The U.S.D.A., like families and
businesses across the country, cannot
continue to operate like we did 50
years ago, Mr. Vilsack said. We
must innovate, modernize, and be
better stewards of the taxpayers
dollars. We must build on the record
accomplishments of farm communities
in 2011 with a stronger, more effective
U.S.D.A. in 2012 and beyond.
The U.S.D.A.s plan, the Blueprint
for Stronger Service, was based
on a department-wide review of
operations conducted as part of the
administrations Campaign to Cut
Waste, launched by President Barack
Obama and Vice-President Joe Biden.
By undertaking a thorough and
thoughtful review of his department,
Secretary Vilsack has saved taxpayers
millions in travel and printing costs
and is consolidating more than 700
different cell phone contracts into
about 10, Mr. Biden said. Whats
more, the department is fnding
signifcant savings by consolidating
more than 200 offces across the
country while ensuring that the vital
services they provide are not cut.
Mr. Vilsack noted some of the offces
slated for closure are no longer staffed
or have very small staffs of one or two
people. Many are within 20 miles of
other U.S.D.A. offces. In other cases,
technology improvements, advanced
service centers, and broadband
service have reduced the need for
brick and mortar facilities.
Mr. Vilsack said when fully
implemented, these actions, along
with other recommended changes, will
provide effciencies valued at about
$150 million annually and eventually
more, based on a future realignment
of the workforce. He said the actions
also will ensure that the U.S.D.A.
continues to provide optimal service
within available funding levels.
The U.S.D.A.s Farm Service Agency
will consolidate 131 county offces in
32 states, leaving open more than 2,100
F.S.A. offces open throughout the
country. The Foreign Agricultural Service
will close two offces Stockholm and
Damascus leaving more than 95 F.A.S.
offces operating abroad.
The Animal and Plant Health
Inspection Service (APHIS) will
close 15 offces in 11 states and fve
offces in fve other countries. This
will leave more than 560 APHIS
offces open throughout the United
States and 55 offces in other nations.
The U.S.D.A. said, In many cases,
offces recommended for closures
are an example of how APHIS is
retooling existing operations and
consolidating certain functions. For
example, veterinarians and animal
health technicians will continue to take
samples, inspect animals and issue
necessary documentation; however,
they may report to supervisors in
consolidated offces in adjacent states.
The Food Safety and Inspection
Service will consolidate 15 district
offces into 10.
In many cases, improved technology
and work-share agreements have
reduced the need for these brick-and-
mortar facilities, the U.S.D.A. said.
The fve offces slated for closure by
the end of fscal year 2013 were those
located in Lawrence, Kas.; Beltsville,
Md.; Minneapolis; Albany, N.Y., and
Madison Wis.
The Agricultural Research Service
will close 12 programs at 10 locations in
2012. More than 240 A.R.S. programs will
remain. Two southern Plains research
facilities are among those to be closed.
They are the Wes Watkins Agricultural
Research Laboratory at Lane, Okla.,
and the Kika de la Garza Subtropical
Agricultural Research Center at Weslaco,
Texas. The Weslaco facility concentrates
on citrus and vegetables, quarantine
treatments for subtropical fruits and
vegetables and biological controls to
combat pest threats in the Rio Grande
Valley. The Wes Watkins center conducts
research on how production systems
affect yield and quality of crops, pest
management systems for crops of the
southern Plains and integration of
non-vegetable crops into sustainable
production systems with high-value
vegetable, specialty crops.
The Food, Nutrition and Consumer
Services will close 31 feld offces in 28
states, consolidating their workload
into 32 remaining F.N.C.S. offces.
Rural Development will close 43
area offces and sub-offces in 17 states
and U.S. territories, leaving 450 offces
open across the country. The Natural
Resources Conservation Service
(N.R.C.S.) will close 24 soil survey
offces in 21 states. More than 2,800
N.R.C.S. offces will remain open. MBN
Cargill earnings drop 88% after
commodity challenges
MINNEAPOLIS Cargill had $100
million in earnings from continuing
operations in the second quarter
ended Nov. 30, 2011, which marked
an 88% decrease from $832 million in
the previous years second quarter.
Second-quarter consolidated revenues
were $33.3 billion, up 17% from $28.5
billion in the previous years second
quarter.
The second quarter was
signifcantly below expectations,
especially in contrast to last year when
we posted our strongest quarter ever,
said Greg Page, chairman and chief
executive offcer of Cargill. Our food
ingredients and agriculture service
businesses generated solid earnings.
At the same time, our commodity-
based trading and asset management
businesses faced signifcant challenges.
First, commodity and fnancial
markets were driven more by political
uncertainties than by underlying
supply and demand fundamentals.
Second, our performance in the sugar
market was poor. Additionally, our
meat business on a combined basis
Financial Results
Nutrition and Health
Review nds no health risk with

moderate rened grains intake
WOLLONGONG, AUSTRALIA
Consuming up to 50% of all grain foods
as refned grain foods without high
levels of added fat, sugar or sodium
was not associated with any increased
disease risk in a review published on-
line Jan. 3 in Nutrition Reviews.
The review also promoted whole
grain consumption. It said most
consumers, in order to meet target
consumption of whole grain foods,
will need to reduce their consumption
of refned grains to no more than
one-third to one-half of all grains. In
the United States it is estimated less
than 15% of total grain consumption
is whole grain and only 6% to 8% of
adults meet the target of three servings
of whole grain per day.
The review identifed 135 relevant
articles from database searches of studies
published between 2000 and 2010.
The great majority found no
associations between the intake of
refned-grain foods and cardiovascular
disease, diabetes, weight gain or
overall mortality, the review said.
A few studies found that very high
intakes might be associated with some
types of cancers, but at moderate
levels of consumption the risks were
not as signifcant.
Go Grains Health & Nutrition Ltd.,
an Australian center for science-based
evidence on the dietary health benefts
of grain-based foods and legumes,
commissioned the independent liter-
ature review. Peter G. Williams, a
visiting principal fellow at the Smart
Foods Centre at the University of
Wollongong, was the reviews author.
He acts as a paid scientifc adviser for
Go Grains Health & Nutrition.
The review whenever possible
chose studies that reported results for
core refned-grain foods, which were
defned as foods based on refned
grains without signifcant added fat,
sugar or sodium. Examples included
bread, breakfast cereal, pasta and rice.
Refned cereal-based foods with large
levels of added fat, sugar or sodium
were excluded. Examples were cakes,
pastries, cookies, donuts and pizza.
Sixteen of the studies showed an
increase in health risk at the highest
level of refned-grain consumption.
In 7 of those 16 studies, the defnition
of refned-grain foods included
high-fat or sugar-added products
like pizza or cakes, which made it
impossible to draw conclusions from
those results about the effect of core
refned grains alone.
The review examined 18 cross-
sectional studies that mostly reported
on the risk of obesity or metabolic
syndrome. Intake of refned grains
at high levels was associated with
higher visceral adipose tissue (VAT) in
a Framingham Heart Study although
the lowest VAT was recorded with two
servings of refned grains and three
servings of whole grains per day.
The review examined 13 case-
control studies with 10 focusing
on various cancers and three on
ischemic heart disease.
Overall, there is a lack of consistency
in the case-control data about cancer
that makes it diffcult to draw clear
conclusions, the review said. Some of
the increased risks were only present at
the very highest levels of intake, which is
still consistent with safe intakes at lower
levels. The few available case-control
studies on the risk of ischemic heart
disease do not suggest any signifcant
risk is associated with moderate levels
of refned-grain consumption.
In examining other reviews and
meta-analyses, the review found
almost all the other reviews primarily
were concerned with the health
benefts of whole grains or of low-
glycemic-index diets. None of the other
reviews specifcally examined how
levels of refned-grain consumption
may relate to health outcomes.
The review examined a systematic
review by Glenn Gaesser, a professor and
exercise and wellness program director
for the Healthy Lifestyles Research
Center at Arizona State University. He is
also chairman of the scientifc advisory
board of the Grain Foods Foundation,
Ridgway, Colo. Dr. Gaessers review
concluded whole grain intake generally
is associated inversely with body mass
index (B.M.I), but refned-grain intake is
not consistently linked to higher B.M.I. MBN
The great majority (of studies) found no associations between
the intake of rened-grain foods and cardiovascular disease,
diabetes, weight gain or overall mortality.
Review paper published in Nutrition Reviews
experienced one of their weakest
quarters. Finally, we recognized a
signifcant number of one-time items,
including asset impairments, and
acquisition and integration expenses.
The food ingredients and
applications department made
the largest contribution to second-
quarter earnings, according to Cargill.
Shrinking U.S. fed cattle supplies
pressured margins in beef. Cargills
recent acquisitions in food ingredients
in Europe and Brazil and in animal
protein in Central America were
accretive to second-quarter earnings.
Cargill in the second quarter
completed the acquisition of Provimi,
a leading animal nutrition company,
for an enterprise value of $2 billion.
Costs related to the acquisition were
recorded in the agriculture services
department. Weaker results in asset
management, which was due to stress
in global fnancial markets, more
than offset strong performance in risk
management services to customers.
For the frst six months of the
fscal year, Cargill had earnings
from continuing operations of $336
million, which compared with $1,530
million in the same time period of the
previous year, and revenues of $67.9
billion, which compared with $54.2
billion in the same time period of the
previous year.
Mr. Page said Cargill is working to
reduce its costs and simplify its work
processes.
Cargill has been through diffcult
cycles before, made changes and
emerged stronger for it, he said. We
are confdent that the actions we are
taking to create a more agile enterprise
will better position us in the current
economic environment. MBN
Financial Results

Stock Market Analysis
Better near-term outlook, many
challenges seen for food sector
as food does not tend to outperform
the market year after year, particularly
in periods of market appreciation,
and current valuations give investors
cause for caution in approaching the
food sector, he said.
From a broader market perspective,
the average food company is trading
at 15 times earnings, Mr. Pinheiro
said. The S&P 500 is trading at 12.
Thats a premium of 25%. Normally,
food company shares trade between a
10% discount and a 10% premium.
Depending on the broader market,
whether we are trading out of a
recession, it could be another so-so
year for the packaged foods stocks. If
we remain mired in this very sluggish
economy, investors will probably
stay somewhat heavily in staples as
a defensive measure, and you might
have a better-than-average year.
Eric Katzman, an equity research
analyst with Deutsche Bank, said food
companies performed extremely
well last year, an achievement the
sector is unlikely to repeat in 2012.
They did what theyre supposed to
do in a volatile and tough market, he
said. The defensive characteristics of
the stocks, including good dividend
yields and reasonable if modest
earnings growth resulted in the
outperformance.
Were relatively cautious on the
groups ability to outperform this
year. The defensive nature of the stock
market has already played out in our
view. Its hard to see how food stocks
outperfom from here.
Grain-based foods companies and
packaged foods companies in general
enter 2012 with momentum in certain
important areas that is likely to ag
as the year progresses, said Robert
Moskow, senior equity analyst, food,
Credit Suisse, New York.
Many packaged foods companies
took pricing in 2011, and its spilling
over in 2012, he said. As the year
progresses, youre going to lap
those increases. So from a top-line
perspective, youll have decelerating
top-line growth as the year progresses.
Packaged foods companies have found
it easy to get the increases through, but
elasticity of demand has been sharper
than expected, especially in breakfast
cereal but other categories as well.
Elaborating on his concern about
the ready-to-eat cereal business, Mr.
Moskow said the value proposition for
consumers looks weaker and weaker.
Boxes are getting thinner, he said.
Consumers dont have a lot of choices
for a value breakfast. But they are
making tougher and tougher decisions
about how much they are going to load
up their pantries and how much they
are going to eat. They are forced, too.
Economics are denitely factoring in.
Mr. Moskow said he is less concerned
about bottom-line prospects in the food
industry than about the likely pressure
on sales comparisons later in the year.
From a protability standpoint,
the outlook is okay, he said. Thats
because theyre all continuing to focus
on productivity, restructuring, still
generating good trends in emerging
markets.
The same set of factors identied
by Mr. Moskow takes on a slightly
different aspect in the analysis of
Mr. Pinheiro. In his view, 2011 was a
difcult year for food companies and
2012 is looking a lot better.
Pricing has been implemented, he
said. Wheat prices have come down
more than a touch. You are probably
seeing a drop of greater than 20%. If
pricing holds, margins should recover.
Commenting on major themes in
the food sector, Mr. Katzman said
two food ination and demand
p
e
r

s
h
a
r
e
Archer Daniels Midland Co.
$23
$27
$31
$35
$39
2011
2010
Nov. Sept. July May March Jan.
Bridgford Foods Corp.
p
e
r

s
h
a
r
e
2011
2010
$5
$10
$15
$20
Bunge Ltd.
p
e
r

s
h
a
r
e
2011
2010
$40
$50
$60
$70
$80
Campbell Soup Co.
p
e
r

s
h
a
r
e
$28
$31
$34
$37
$40
2011
2010
ConAgra Foods, Inc.
p
e
r

s
h
a
r
e
$20
$22
$24
$26
$28
2011
2010
Corn Products International, Inc.
p
e
r

s
h
a
r
e
$20
$30
$40
$50
$60
2011
2010
Grain-based foods share price charts
General Mills, Inc.

p
e
r

s
h
a
r
e
$33
$35
$37
$39
$41
2011
2010
of Sara Lees assets in Spain was
completed at a very attractive price.
Additionally, the companys Mexican
baking business continues to perform
solidly. On the negative side of the
ledger have been costs from hedge
positions and an expectation that
margins may be under pressure in the
next few quarters.
Mr. Alanis said that while
uncertainty prevails about a number
of prospective developments affecting
Bimbo, the companys strategy in
North America is not uncertain.
He explained, We know what they
will not do. They will not engage in a
price war. They will accelerate capital
expenditure. Their strategy is clearly
laid out. The Sara Lee acquisition is
not about short-term synergies. Its
about bringing the strength of Bimbos
balance sheet into better located and
higher efciency bakeries in the U.S. It
is to become the lowest cost producer
in the long run because of lower cost
of energy and closer distribution. We
may not see margin expansion in the
short term, but it makes sense in the
long term. Think about what the cost
of a barrel of oil was or a kilowatt hour
when most of the baking plants in the
United States were built. The industry
was built for lower energy costs and few
players have awoken to this reality.
The decision of Kraft Foods Inc.,
Northeld, Ill., to split into two
separate companies represents a basic
shift from a foundational philosophy
that has prevailed there for decades,
Mr. Katzman said.
Flowers Foods, Inc.
p
e
r

s
h
a
r
e
$15
$18
$21
$24
2011
2010
George Weston Ltd.
p
e
r

s
h
a
r
e
$60
$70
$80
$90
2011
2010
Grupo Bimbo S.A.B. de C.V.
p
e
r

s
h
a
r
e
$20
$25
$30
2011
2010
Hain Celestial Group
p
e
r

s
h
a
r
e
$10
$15
$20
$25
$30
$35
$40
2011
2010
elasticity already have played out
consistently over the last two years.
There are two others, he
continued. First is restructuring. As
the volumes have been weak across
the industry because of pressure on
the consumer, there is coincident
pressure on companies to keep xed
costs low. So youre likely to see more
restructuring announcements like the
one just from Kraft. Most companies
believe consumer changes will be a
long-term affair. The new normal is
resulting in the companies looking
at their portfolios and brands and
positioning them to this new normal.
That will result in more merger and
acquisition activity, whether its
ConAgra becoming more of a private
label company or Kraft splitting in two.
There is a whole host of possibilities.
While it hardly has been ying
beneath the radar screen in recent years,
attention toward Grupo Bimbo S.A.B.
de C.V. is heightened going into 2012.
While currently rating Grupo Bimbo
neutral, an analyst at J.P. Morgan is
very upbeat on the companys longer
term prospects.
In the short term, though, there are a
number of things playing in their favor,
said Alan Alanis, executive director,
senior analyst, Latin America food and
beverage, at J.P. Morgan, New York.
But, also a number things that are not.
On the plus side, Mr. Alanis said
he was very excited about the lower
price Bimbo was able to pay for
Sara Lee with the Justice Department
settlement and said the acquisition
Dunkin Brands Group, Inc.
p
e
r

s
h
a
r
e
$24
$25
$26
$27
$28
$29
2011
I would say that when Kraft was
part of Philip Morris many years back
to its position as a public company,
its been all about scale, he said. It
hasnt really worked, and the split
represents a pretty big change. Not that
they will be small companies, but the
change will be a big strategic fork in
the road. I think the growth prospects
for the snack company are long-term
compelling. Snacks are a good category
with pretty limited competition. Its a
global business. Consumers around
the world snack, which gives the snack
company an opportunity to create a
fair amount of value.
The grocery company, I think it
has its challenges in terms of creating
value long term. It is a U.S. business
in a mature industry with a lot of
competition. If you look over the last
10 years, that competition has really
taken it to Kraft.
Among companies with the
potential for a turn for the better in
2012 is Snyders-Lance, Inc., Charlotte,
N.C., Mr. Pinheiro said. Because 2011
was the companys rst full year after
the December 2010 merger of the
Snyders and Lance businesses, he
characterized the company and the
year as a work in progress.
Infrastructure investment was a big
theme, route engineering, was what
happened last year, Mr. Pinheiro
said. Investors are eyeing 2012 as
the transition year, when they will see
the benet of conversion of company
owned routes to driver owned routes
and a push of cross selling. New
J&J Snack Foods
p
e
r

s
h
a
r
e
$30
$40
$50
$60
2011
2010
said. He noted food service and
institutional accounts represent more
than 90% of the companys business.
They do feel the effects of
recessionary trends in some of their
end markets, he said. Meanwhile,
it is not a dirt cheap stock. From a
nancial performance perspective, it
should be a better year. We are neutral
on the company, based on valuation. It
is trading at a nearly 20% premium to
packaged food with earnings growth
somewhat in line with the group.
Even though it retains a diverse
and substantial grain-based foods
business, the focus of The J.M.
Smucker Co., Orrville, Ohio, has been
in a different direction in recent years.
Smucker is really a coffee
company, Mr. Pinheiro said. Folgers
dominates the company, accounting
for 50% of earnings. The good news is
that coffee is a very protable business.
Margins last year in the segment were
28%, versus 21% for the food business.
In baking mixes, sales are up 15%, far
outpacing the category.
Were upbeat on Smucker. One
thing people forget about them is their
tremendous free cash ow generation.
This year we see free cash generation
of $320 million, up to $470 million in
the next year.
He said this cash ow is being
deployed in signicant and important
capital investment.
Following a tough 2011, Flowers
Foods, Inc., Thomasville, Ga., is well
positioned for signicant improvement
Kellogg Co.
p
e
r

s
h
a
r
e
$45
$50
$55
$60
2011
2010
Kraft Foods Inc.
p
e
r

s
h
a
r
e
$25
$30
$35
$40
2011
2010
Krispy Kreme Doughnuts, Inc.
p
e
r

s
h
a
r
e
$2
$4
$6
$8
$10
2011
2010
in 2012, Mr. Pinheiro said.
In 2011 they did a good job of raising
prices, he said. They bought Tasty,
which looks like a real meaningful
earnings driver for Flowers. In 2011 it
was neutral to earnings. But Tastykake
is now on an additional 2,200 routes.
That looks solid. So when you look
at 2012, there is a lot going on. Tasty
should contribute 10% of earnings,
just alone. If the core business can just
grow 5%, youll have 15% growth.
Mr. Pinheiro is upbeat on Flowers
prospects even as he acknowledges
investor nervousness over consolidation
in the baking industry and the
extraordinary expansion of the largest
company Grupo Bimbo S.A.B. de C.V.
Investors are always concerned,
but Bimbo is acting very rationally,
like a leader in the business from a
pricing perspective, Mr. Pinheiro said.
Flowers is a strong No. 2 and growing.
Hostess to us looks like a liquidation.
Bimbo couldnt buy it. Flowers isnt
going to buy it. I cant think of a
company that wants in the fresh bread
business. I expect the company sold in
pieces, brands and plants. Whatever
happens, its another good backdrop
for Flowers. I really dont see problems
for Flowers, other than commodity
costs, and those should begin to wane.
While hardly an easy category, Mr.
Katzman said there is reason to be
optimistic about prospects for bread
and for Flowers.
I think the category has certainly
been more competitive than Flowers
J.M. Smucker Co.
p
e
r

s
h
a
r
e
$52
$62
$72
$82
2011
2010
information technology is being
introduced at the route level all the
way up. We should start to see pretty
positive elements of the merger come
through in 2012. I think most investors
are pretty optimistic, as are we.
Mr. Pinheiro said Lance was hurt
substantially by commodity price
moves even though thoughtful risk
management programs were in place.
They were protected on commodity
purchasing, he said. What they cant
control is whether or when customers
will accept price increases. Particularly
in private label, contract baking.
Another company struggling with
commodity costs in 2011 was J&J
Snack Foods Corp., Pennsauken, N.J.,
Mr. Pinheiro said.
It was a tough year on the
commodity side for sure, he said.
They have now passed along some
of the pricing, and were probably
getting to the end of their pain, if we
havent already. So 2012 looks okay.
Strategic actions taken by J&J in
recent years appear promising, Mr.
Pinheiro said.
They bought the frozen handheld
business from ConAgra, and it seems
to have been bought attractively, he
said. They dont waste a lot of time
when they make an acquisition before
they begin working a business harder.
So, I wouldnt be surprised to see a
contribution from this sector.
Beyond ingredient costs and
acquisitions, the economy factors into
the prospects for J&J, Mr. Pinheiro
Maple Leaf Foods, Inc.
p
e
r

s
h
a
r
e
$8
$10
$12
$14
2011
2010
failed takeover attempt by ConAgra
Foods, Inc., shares of Ralcorp nished
2011 on a strong note. Mr. Moskow
said investors have taken a big picture
look at Ralcorp and like what they see.
Their pasta acquisition (American
Italian Pasta Co.) has been excellent,
Mr. Moskow said. Refrigerated
dough (a business purchased from
Sara Lee Corp.) promises to be highly
accretive. Then you have a spin-off
(Post cereals) many investors believe
is going to create shareholder value.
Ralcorps strong presence in the
private label segment of breakfast
cereal may seem a real positive for the
company in a weak economy, but the
reality on the ground has been more
challenging, Mr. Moskow said.
Private label gets more attention,
but it hasnt been doing well in cereal
lately, he said. During the rst part
of the year, branded cereal was rather
promotional, pressuring the market
for private label.
In the second half, weve seen
private label rebound a bit because
brands have taken price. But private
label needs to take price, too.
On the grain processing side, Mr.
Moskow said prospects have become
less promising in recent weeks. Poor
earnings results at Cargill and layoffs
both at Cargill and Archer Daniels
Midland Co. have made Mr. Moskow
wary of the near-term outlook for
Bunge Ltd.
I lowered my numbers on Bunge
mostly because of weak soybean crush
margin conditions, he said. Im
more pessimistic after going through
the Cargill gures.
There is great uncertainty around
a host of questions, including when
the soybean processing industry
becomes more rational and the
degree to which problems in the
Euro zone creates agricultural market
volatility and potential problems for
companies like Bunge.
While hardly bullish, Mr. Moskows
view of ADM is less anxious. Longer
term, he said the Decatur, Ill.-
based company is looking to make
interesting fundamental changes.
Its a little less bad for ADM,
he said. You have the benet in the
near term of good volumes in ethanol.
Margins are falling there, too. Recently
they pulled forward a lot of demand
into 2011. Blenders were trying to get
volume done before the blender credit
expired. Thats happened. So there are
some expectations of volume weakness.
I think the bigger issue for ADM
is they are trying to fundamentally
change the culture at the company.
Their strategic push is to put more
capital into emerging markets, and
PepsiCo, Inc.
p
e
r

s
h
a
r
e
$58
$62
$66
$70
$74
2011
2010
At Dakota Specialty Milling our specialty is the right mix of
people, products, and services. Our first-class milling facilities are
in the heartland of Americas grain belt, giving us direct access to
premium, locally grown grains. Working with customers to deliver
a consistent product mix, we are the trusted ingredient supplier for
Americas leading brands of variety breads, cereals, crackers, granola,
and nutrition bars.
Dakota Specialty Milling. The specialty mill for all reasons.
www.DakotaSpecialtyMilling.com | 800.426.7045
Teres A Reason Specialty Is Our Middle Name.
management expected, he said. It
seems every year they begin with
optimism and end, over the last couple
years, with pessimism. Having said
that, the combination of Bimbo and
Sara Lee, the opportunity for Flowers to
gain share and the return to bankruptcy
of Hostess argues the category should
become more rational.
In part because the company
increasingly is less reliant on its
breakfast cereal business, Mr.
Moskow said investors increasingly
are viewing Ralcorp Holdings, Inc.,
St. Louis, positively. After tumbling
during the summer in response to a
MGP Ingredients, Inc.
p
e
r

s
h
a
r
e
$4
$6
$8
$10
$12
2011
2010
Panera Bread Co.
p
e
r

s
h
a
r
e
$60
$90
$120
$150
2011
2010
Ralcorp Holdings, Inc.

p
e
r

s
h
a
r
e
$40
$60
$80
$100
2011
2010
Sara Lee Corp.
p
e
r

s
h
a
r
e
$11
$13
$15
$17
$19
$21
2011
2010
Seaboard Corp.
p
e
r

s
h
a
r
e
$1000
$1500
$2000
$2500
$3000
2011
2010
a baking tradition since 1935.
B.C. Williams Bakery Service
800.527.4104 www.bcwilliamsbakeryservice.com
one stop shopping national distribution

the
ingredient

solution.
historically, 90% of their cap ex had been
in the U.S. So, the challenge for ADM
is to change to a more international
mindset. That will require bringing
in new blood. And theyre doing
that. They have a new chief operating
ofcer, Juan R. Luciano (from Dow
Chemical), and chief nancial ofcer,
Ray G. Young (from General Motors),
both from the outside.
While concerned about prospects
for General Mills, Inc., Mr. Moskows
worries about the company have far
more to do with the companys yogurt
business than the breakfast cereal
segment.
Its just a good solid company
facing real challenges in yogurt,
Mr. Moskow said. Greek yogurt has
taken all the growth from Yoplait.
Sales are now declining. This probably
was the best part of the portfolio for
many years. Their response with
Yoplait Greek has been unimpressive.
By contrast, cereal seems to be
recapturing some market share.
In the soup sector, Mr. Moskow
said General Mills has been very
aggressive, adding thats not unusual
for the company.
My perception is that Campbell
is trying to wean itself from deep
discounts, but the retailers have
maintained very deep discounts
on Progresso, Mr. Moskow said.
Whether that was the intent of
Progresso (General Mills) is unclear. At
the end of the day, Progresso is taking
share again, in a weak category.
Among packaged foods companies
he covers, Kellogg Co., Battle Creek,
Mich., stands out as facing especially
serious challenges, Mr. Moskow said.
They are going through a very
challenging period, he said. It can
be traced back to denuding their
supply chain in an attempt to cut
costs. They eliminated head count in
key areas such as quality assurance
and procurement. They werent
fast enough in addressing some
contamination issues in their Eggo
plant. As a result, they now have to
put big investments back into the
plant for renovations and headcount
innovations. There is now more
scrutiny at Kellogg from the Food and
Drug Administration.
They know what they have to do,
but it will take a long time before
they can declare victory. It will be a
signicant distraction. They will be
thinking about this kind of issue far
more than their competitors.
Despite its challenges, Kellogg is
not without signicant pluses, Mr.
Moskow said.
The brand has been very resilient
from a consumer standpoint, he
said. Market share for Eggo has
rebounded. Breakfast cereal, too. MBN
L. Joshua Sosland
Snyders-Lance, Inc.
p
e
r

s
h
a
r
e
$15
$20
$25
$30
2011
2010
Washington
The Trans-Pacic Partnership
and agriculture
Robbin S. Johnson, a fellow
with the Hubert H. Humphrey
Institute of Public Affairs,
is a contributing editor at
Sosland Publishing Co.
BY ROBBIN S. JOHNSON
With the Doha Round trade
negotiations now more officially
shelved, attention on the
agricultural trade front is shifting
in new directions. For the World
Trade Organization, it likely will
mean thinking harder about linking
trade liberalization to food security,
a suggestion made here several
times over the past few years. For
the Obama administration,
however, it likely means more
focus on an initiative called
the Trans-Pacific Partnership
(T.P.P.) and its potential
for job-creating economic
growth.
An Asia-Pacific focus for
U.S. trade policy actually goes
back to the Clinton administration
and its role in creating the Asia-
Pacific Economic Cooperation
(APEC) forum. Within APECs loose
framework, senior ministers have
been meeting regularly to discuss
trade and related issues. APEC
also has created a parallel private
sector forum that has had its own
work program and also has been
urging political leaders to move
ahead on trade reform. And, heads
of state have met each fall for well
over a decade, discussing common
concerns and issuing a formal
statement at the end of each meeting
that customarily has endorsed more
open, integrated economies.
But APEC was never intended
as a negotiating forum. That is
what the Trans-Pacific Partnership
framework is intended to provide.
The Obama administrations goals in
the T.P.P. were outlined in testimony
delivered Dec. 14, 2011, to the House
Ways and Means Subcommittee on
Trade by Ambassador Demetrios J.
Marantis.
Asia-Pacific as a dynamic region
Overall, the administration recog-
nizes that Asia-Pacifc is a dynamic
and economically expanding re-
gion. It offers attractive market
opportunities for many U.S.
industries, including agriculture. It
also is a region with many countries
negotiating bilateral or regional
free trade agreements. Unless
the United States joins in, it risks
facing less favorable access to Asian
markets than other countries. So,
the rationale for the T.P.P. is less a
full embrace of freer trade than a
defensive move to avoid being left
behind by others.
The first round of negotiations
occurred in March 2010.
Participating were eight other
countries Australia, Brunei
Darussalam, Chile, Malaysia, New
Zealand, Peru, Singapore and
Vietnam important but not the
largest potential markets. At the
APEC meeting in Honolulu last
November, leaders of these nine
countries announced that their
negotiating teams had reached
the broad outlines of a T.P.P.
agreement.
This framework is defined by
five principles: (1) a comprehensive
agreement eliminating trade
and investment barriers; (2)
rules to facilitate trade across
integrated supply chains; (3)
adopting a range of approaches
developed in APEC, including
more regulatory transparency
and reliance on science, business
facilitation, accommodation of the
interests of small- and medium-
sized enterprises and support for
accelerating economic development;
(4) addressing emerging issues
around the digital economy,
green growth and state-owned
enterprises; and (5) an open-ended
agreement to which others can join.
What lies ahead
All of this is encouraging for
proponents of freer trade, especially
those within the agricultural
sector who understand that the
dietary transformations occurring
across the Asia-Pacific region
offer tremendous export growth
opportunities. Still, much work
remains to finalize legal texts and to
make the market-opening ushered
in by the T.P.P. as comprehensive as
possible. Four challenges stand out.
First, the United States is
insisting that the T.P.P. include
labor provisions similar to what
have been incorporated into recent
bilateral trade agreements. This
always poses a difficult issue for
negotiators and for the Congress
that must approve any final deal.
Second, it is important that the
T.P.P. be a comprehensive agreement.
There always are intense pressures
on negotiators to exclude sensitive
economic sectors from a reform
agreement. The United States is no
exception, facing resistance from
some agricultural sectors and from
the textile and apparel industries.
But any agreement that holds back
on reform of such sectors
loses an important part of its
trade- and job-creating value
and makes reform of these
sectors ever more diffcult.
Third, as tariffs have
been brought down, non-
tariff barriers including
internal regulatory measures have
become more important in distorting
trade and investment. This has
been a particularly diffcult issue
for agriculture, where sanitary and
phytosanitary rules and regulatory
processes have often disrupted trade
and frustrated reform efforts. Such
issues are diffcult but important to
resolve, if the TPP agreement is to
achieve its potential.
Finally, several important
countries including Japan, Canada
and Mexico have expressed
interest in joining the T.P.P. Their
interest increases the potential value
of a T.P.P. agreement, but it also
complicates the negotiating process,
as it involves a series of bilateral
consultations and then a consensus-
based decision on whether to accept
their participation. Their interest
may well pose some hard choices
between increased scope, delay and
extent of reform.
All of this comes to a head in
a presidential election year. This
raises the political stakes while
strengthening the hands of special
interests. It will be a challenging
environment in which to negotiate,
let alone pass, a trade agreement.
The next full round of T.P.P.
negotiations is scheduled for March
in Australia. It bears watching. MBN
People
Wendy Barth named senior v.p. of

global marketing at Rich Products
BUFFALO, N.Y. Wendy Barth,
an 11-year veteran of Rich Products
Corp., has been named senior vice-
president of global marketing at
Rich Products. Ms. Barth will be
responsible for Richs headquarter-
based marketing team, which
supports Richs Asia Pacifc, Latin
America, Europe/Middle East
and South Africa business regions,
and she also will assume global
accountability for the companys
business intelligence, branding and
social media strategies. In addition,
she will chair Richs U.S./Canada
regions Marketing Leadership Team.
Wendys new position has great
potential to advance marketing
best practices and engender
collaboration against high impact
initiatives across the regions here
at Richs, said Richard Ferranti,
executive vice-president and chief
operating officer.
Ms. Barth began her marketing
career in 1980 at General Mills, Inc.,
where she was promoted through a
series of roles leading the planning
and marketing initiatives on a
variety of consumer brands. In 1989,
she was named national director of
food service for 7-Eleven and later
was promoted to vice-president of
marketing for 7-Eleven in 1996.
She joined Ahold Supermarket
Group in 1998 as vice-president of
marketing for Tops Supermarkets
and later was named vice-president,
Ahold USA, customer relationship
marketing. In 2001, she joined Richs
as vice-president of the bakery
strategic business unit. She was
promoted to senior vice-president of
U.S./Canada marketing in 2004 and
then to her most recent position as
senior vice-president of international
marketing and research and
development for Richs International
Business Group in 2007.
Ms. Barth received a bachelor
of science degree in business
administration from Bucknell Uni-
versity and a masters in business
administration from the University of
Michigan. MBN
Nelson Harris, former Tasty Baking
chief executive, dies at 85
LAFAYETTE HILL, PA. Nelson G.
Harris, former president and chief
executive offcer of Tasty Baking Co.,
died Jan. 10. He was 85 years old.
Following his service in the U.S.
Navy during World War II, Mr. Harris
received a bachelors of science
degree from The Wharton School of
the University of Pennsylvania in
1948 and a doctorate from the Temple
University School of Law in 1953.
Mr. Harris joined Tasty Baking in
1959, and he held several positions,
including vice-president and treas-
urer, until leaving the company in
1968 to become president of Horn
and Hardart Baking Co. He later
was associated with Central Valley
Co., the mortgage and title insurance
subsidiary of Industrial Valley Bank
and Trust Co. in Philadelphia.
Mr. Harris rejoined Tasty Baking
in 1974, and he was named president
in 1979, chief executive offcer in
1981 and chairman and c.e.o. in
1991. He retired in May 1992. He was
succeeded by Carl S. Watts.
He was a member of various
boards of directors and was actively
involved with the Blind Relief Fund of
Philadelphia for more than 42 years.
Survivors include three sons,
Stephen, David and Thomas; a
daughter, Patricia de Barros; a brother,
Col. Frank W. Harris, III; and 10
grandchildren. He was preceded in
death by his wife, Rita Jane Storrie; a
son, William; and a daughter, Nancy.
A memorial service was to be held
Jan. 14 at the Presbyterian Church of
Chestnut Hill. MBN
Ron Savelli named president and
c.e.o. of Eatem Foods Corp.
VINELAND, N.J. Ron Savelli has
joined Eatem Foods Corp., a supplier
of food bases, favors, broths and
seasonings headquartered in Vineland.
Prior to coming to Eatem, Mr. Savelli
spent several years with CSM Bakery
Products North America,
most recently as president and
chief executive offcer of H.C.
Brill. He joined CSM in 2003
as vice-president of sales and
marketing and was named
president and c.e.o. of Caravan
Ingredients in 2007.
Earlier, he spent eight years
with Progressive Bagel Inc./Einstein
Noah Bagel as vice-president of
product development. Before that
he had been with Caravan for seven
years.
Owned since 2010 by Linsalata
Capital Partners, based in Mayfeld
Heights, Ohio, Eatem manufactures
food base solutions and supplies savory
favor systems, favor concentrates,
broth concentrates and seasoning
bases. The company supplies industrial
and food service customers.
Eatem operates a 60,000-square-
foot facility focused on roasting
a wide range of savory items
(including seafood, poultry,
beef and vegetables) for the
production of proprietary favor
bases used for soups, gravies,
sauces, dressings and other food
products. The company offers
natural, organic and kosher
products.
Linsalata has owned food related
companies in the past and its
current portfolio companies include
Hospitality Mints, a North Carolina-
based manufacturer of customized,
individually-wrapped promotional
mints and candies. MBN
Daryl Bashor promoted at
Dakota Specialty Milling
FARGO, N.D. Daryl W. Bashor has been
promoted to vice-president of engineering
and manufacturing facilities at Dakota
Specialty Milling, Inc.
Mr. Bashor joined Dakota Specialty in 1987
as plant superintendent, and he has held
positions of increasing responsibility, most
recently as director of manufacturing.
Daryl has been instrumental in the design
and construction of our various facilities
in North Dakota, and will now lead our
companys expansion in the future, said
R.C. Axlund, president.
Mr. Bashor received a bachelors degree
in milling science and management from
Kansas State University in Manhattan. MBN
Savelli
Education and Research
Soft wheat studies yield key ndings
A
series of whole grain four
studies conducted by the
Agricultural Research Service
of the U.S. Department of Agriculture
has provided some answers as to how
much dietary fber is in whole grain
four made from soft wheat, and has
enabled researchers to forecast what
varieties of soft wheat plants are best
for whole grain fours.
The studies were executed over
fve years at A.R.S.s Soft Wheat
Quality Laboratory at Wooster, Ohio.
The group responsible for the project
included Clay Snelling, associate
professor with Ohio State Universitys
Ohio Agricultural Research and
Development Center in Wooster. He
conducted the research with Mary
Guttieri a research specialist, and
Edward J. Souza, a former research
leader and plant geneticist with the
Soft Wheat Quality Laboratory.
The research team used a nationally
represented sample of soft wheat
whole grain fours to determine the
dietary fber levels in soft wheat, whole
grain four. For example, the team used
soft wheat kernels from 13 different
wheat-growing regions, according to
the A.R.S. The team also studied fve
different kinds of commercial whole
grain soft-wheat fours.
The team sought to account for
as many factors as possible, so they
compared fours from each of two
commercial wheat varieties grown at
each of two sites in Ohio during three
consecutive years, according to the A.R.S.
The research team found soft wheat
whole grain fours averaged 14.8 grams
of dietary fber in each 100 grams of
four. The A.R.S. said the fndings may
be used in revised editions of nutrition
databases that food manufacturers
consult when making nutrition labels
found on packaged foods.
In addition to the fndings regarding
the fber content of whole grain fours
made from soft wheat, the team also
found that some soft wheat varieties
were better suited for use in whole
grain fours.
In soft wheat, its a little bit
more diffcult to make whole grain
products, and so we were looking to
see if there were genetic variations in
soft wheats for whole grain products
such that there might be some way
to tailor some of the soft wheats that
are better suited for whole grains,
Dr. Snelling said. We seemed to fnd
some varieties that were a little bit
better than others, and we were able to
build a model that would predict what
series of parameters you might want
to make a better whole grain product
from soft wheat.
The fndings from the A.R.S. four
studies may help food manufacturers
increase the proportion of four from
whole grain in relation to refned
white four food makers currently use.
Americans currently under-consume
dietary fber. The 2010 Dietary
Guidelines recommend 14 grams per
1,000 calories consumed, or 25 grams
per day for women and 38 grams
for men. Americans usual intake
averages 15 grams per day.
This study reveals that consumers
might be receiving even more fber
from Kellogg products than previously
thought, said Nelson Almeida, Ph.D.,
vice-president of Global Chemistry,
Nutrition and Regulatory Sciences,
Kellogg Co. This is important because
less than 1 in 10 American adults and
children get enough fber in their diets,
and most get about half the amount of
fber they need, as recommended by
the Institute of Medicine.
Consumption of whole grains has
been associated with health benefts.
For example, a review of 25 studies
published in the British Medical Journal
found a high intake of dietary fber,
especially from cereals and whole
grains, was associated with a reduced
risk of colorectal cancer. Putting more
whole grain fours into the foods that
consumers buy and enjoy, such as
crackers and cookies, may be one way
to get consumers eating more whole
grains and dietary fber.
Studies like this help us continue
to meet Americas fber defcit, Dr.
Almeida said. Consumers also need
to understand that the amount of
fber in whole grain products can
vary greatly. They should specifcally
look for grain or whole grain foods
that provide at least 3 grams of fber
to help meet their daily requirements
without increasing calories.
Food manufacturers may also use
the research to buy grains from a
certain variety, Dr. Snelling said.
It could lead to them looking at the
grain that they have coming in and be
able to tell fairly quickly if it might be
suitable for a whole grain product, he
said. It would at least allow them to
know how to handle it, and whether
they need to add other materials,
other ingredients to the four to try
to overcome inherent weaknesses or
whether they can use it as is.
Whole grain four comes with many
benefts, but reaping those potential
health impacts comes with challenges.
Soft wheat is typically used for
products like cookies and cakes and
pies and sweet goods, said Kirk
ODonnell, vice-president of education
at AIB International, Manhattan, Kas.
The reason for it is a lighter texture
and if its used in bread it wont rise
high enough. It wont have enough
ability to hold its shape. When you go
to whole wheat, the problem gets even
worse.
Also, removing the bran and the
germ from whole grain takes out some
of the nutrients that come with those
components. The outer, or bran layer,
of a wheat kernel contains important
vitamins such as selenium and B
vitamins, for example, according to the
A.R.S. The wheat seed, or germ, also
provides B vitamins and healthful fats.
The endosperm, which constitutes
most of the inside of a wheat kernel,
contains carbohydrates and protein.
The biggest thing that you dont
get when you go from whole grain
to white four whether its hard or
soft, youre missing the fber and
youre missing a lot of the fat soluble
vitamins, such as A, D and E, Mr.
ODonnell said. Pretty much all the
fat is in the wheat germ.
However, once the bran is added
back in to four it increases the water
Researchers study ber content and best varieties
to make whole grain ours
Holiday cut-out cookies made with whole
grain wheat our.
U
.
S
.

D
E
P
A
R
T
M
E
N
T

O
F

A
G
R
I
C
U
L
T
U
R
E
Education and Research
retention capacity of the resulting

four.
Usually for soft wheat we like to
have a low water retention capacity in
the four, Dr. Snelling said. Adding
the bran makes the product more
nutritious, but it also makes it diffcult
to make the type of products normally
made from soft wheat.
White four may be stored for
longer periods than whole grain four
because it is more stable compared to
whole grain four.
Another important factor food
makers must consider is consumer
acceptance. Can food manufacturers
make a whole grain product from soft
wheat that consumers will accept?
While (consumers) want whole
grain products, the current products
have a different taste or feel to them,
Dr. Snelling said. MBN
Multi-million-dollar endowments
to benet Idaho ag research
BOISE, IDAHO The Idaho
Wheat Commission has unveiled
plans to create two faculty research
endowments with $2 million to
the University of Idahos College
of Agricultural and Life Sciences.
The endowments will help support
Idahos 4,500 wheat growers and their
$766 million-per-year harvest.
In addition to the Commissions
donation, Limagrain Cereal Seeds
has agreed to collaborate with the
University of Idaho on breeding new
wheat varieties for Idaho and the
Pacifc Northwest. Limagrain Cereal
Seeds is a joint venture between
France-based Limagrain Group,
the largest cereal seed company in
Europe, and Arcadia Biosciences,
a biotechnology company based in
Davis, Calif.
Both Limagrain and the university
will contribute germplasm, technology
and expertise to more rapidly develop
varieties with improved productivity
and tolerance to diseases and stress.
To support this effort, Limagrain also
is funding a signifcant endowment
for cropping systems research and
graduate training at the university.
These partnerships clearly demon-
strate the power of collaboration and
the value that a land-grant institution
like the University of Idaho can bring
to our states economy, said M. Duane
Nellis, president of the University
of Idaho. We deeply appreciate the
confdence that both the Idaho Wheat
Commission and Limagrain Cereal
Seeds have placed in our university.
Limagrain Cereal Seeds and
the university will share grain
germplasm, which will greatly
increase varietal options for Idaho and
Pacifc Northwest wheat growers,
said Dean John Hammel of the College
of Agricultural and Life Sciences.
Gordon Gallup, chairman of the
Idaho Wheat Commission, said
partnerships with private breeders
like Limagrain Cereal Seeds will
provide a signifcant boost to public
programs through new technology
and new germplasm.
If wheat is to remain competitive
in our state and region, growers of
Idaho must look to public-private
partnerships, as well as requiring
increased effciencies in our public
research programs, Mr. Gallup said.
Donn Thill, director of the
universitys Idaho Agricultural
Experiment Station that oversees the
institutions statewide agricultural
research, said he believes that, by
strategically combining our wheat
germplasm with Limagrain Cereal
Seeds, new wheat varieties will be
created for our growers that yield
more wheat per acre, that are easier
on the environment, more disease-
resistant, and more nutritious than
what we could do working alone.
Jim Peterson, vice-president for
research at Limagrain Cereal Seeds,
called the collaboration an exciting
opportunity to build on the strengths
of the University of Idaho and
Limagrains wheat programs.
The universitys cropping systems
research will help growers to better
manage and capture value from
new varieties that come out of the
collaborative breeding effort, Mr.
Peterson said.
For 2012, the Idaho Wheat
Commission endowments will be
used to fund a wheat breeding and a
wheat agronomist professorship, each
located at the universitys Aberdeen
Research and Extension Center. MBN
W
hile planning to earn both a
master of science and doctorate
degree in biology, Norman Fox wanted
something to do on the side. His some-
thing on the side, was the Donut Den
which turned into a 33-year success.
When Norman decided to open a
doughnut shop, a friend, Herb Stewart,
introduced him to Oliver Harlow, founder
of Honey Flush Donuts, a 40-store chain.
Stewart and Harlow helped Norman open
the Donut Den, in July, 1973, in Nashville,
Tennessee. Oliver Harlow not only
inspired, but gave me valuable practical
advice, said Norman.
Harlow started using International
Bakers Services (IBS) flavorings in the

1960s, and suggested that Norman do the
same. He highly recommended
Cinnamon-Butter Blend. Today, that flavor
is the secret ingredient in the Donut Dens
Apple Fritterstheir most popular prod-
uct. There is no other type of cinnamon
flavoring that makes the product taste this
good, stated Norman.
Consistency is the key to success in
any business. Maintaining a core product
line and keeping up with new trends keeps
regular customers coming back and
attracts new customers as well. Another
secret to help ensure consistent quality is
our own Harold Graves, the cook for the
Donut Den for over 30 years, Norman
stated. But he attributes his 33 years of
success to following Harlows recommen-
dationrelying on the flavors from
International
Bakers Services. Their fla-

vors are consistently the best, according
to Norman.
Norman was a graduate student during
the first four years of the Donut Den.
After earning his doctorate degree, he
taught in university classrooms. But it
was a friend of a friend who taught him
his most valuable business lessons.
Sometimes its who you know that helps
the most.
If you value consistent quality, you
should get to know International
Bakers
Services. Contact us toll-free at (800)
345-7175, by fax at (574) 287-7161, or in
writing at 1902 North Sheridan Ave.,
South Bend, Indiana 46628. We have the
flavors your customers deserve.
SOMETIMES ITS
WHO YOU KNOW
Advertisement
Free Webinar:
The Economics of Caloric
Sweeteners: HFCS and Sugar
An Examination of the U.S. Sweetener Market
Webinar description
The conversation among food and beverage
manufacturers about caloric sweeteners is changing.
The choice between high fructose corn syrup (HFCS) and
sugar is now primarily an economic one: HFCS is more
cost-effective than sugar.
To help product
developers and
marketers understand
the economics
behind HFCSs cost
advantage, this
webinar examines the
impact of government
policies and market
conditions on sugar
pricesand on
consumer products
that contain sugar and
HFCS.
Speaker
Benjamin E. Warolin
Commodity Analyst, Tropical Products,
at Informa Economics, Inc.
Mr. Warolin researches, analyzes and forecasts
prices for the domestic and world sugar,
cocoa and corn sweetener markets. He holds
a bachelors degree in
economics from Gordon
College, a masters degree
in agricultural economics
from Michigan State
University and an MBA in
business economics from
Indiana Universitys Kelley
School of Business.
Moderator
Josh Sosland
Editor of Milling & Baking News and
Food Business News magazines
Mr. Sosland is editor of Milling & Baking News
and Food Business News magazines. He has
been on the editorial staff of Sosland Publishing
Co. for 27 years and spent more than 10 of
his years at S.P.C. as a
senior editor of markets.
Earlier, Mr. Sosland was
a grain merchandiser
with Continental Grain
Co. He graduated in
1982 from Harvard
College with an A.B. in
economics.
Tuesday, January 31, 2:00 PM EST
Register free at
www.foodbusinessnews.net/events/webinars
HFCS.
Sponsored by the Corn Refners Association
33 / July 3, 2007 Milling & Baking News bakingbusiness.com / world-grain.com
Weekly Spotlight
Indexes
Saltine Cracker Ingredients
Ingredient Market Trends
I.G.C. forecasts 2012-13 world
wheat crop at 685 million tonnes
T
he International Grains Council on
Jan. 19 issued a preliminary world
wheat production forecast for
2012-13. The council forecast production
in the year at 685 million tonnes which
would be down 5 million tonnes from
the forecast record outturn of 690 million
tonnes in the current year. The recent
fve-year average world wheat outturn
was 663 million tonnes.
The I.G.C. commented, The world
wheat area for the 2012 harvest is
projected to expand 1.7% to 225 million
hectares (ha), the largest since 1998.
Most of the increase is expected in North
America and the Commonwealth of
Independent States (comprising nations
formerly parts of the Soviet Union),
boosted by attractive domestic and
international prices.
The I.G.C. said its initial forecast for
2012-13 was based on normal weather
conditions for the rest of the growing
season. Aside from dryness in parts
of the United States and Ukraine,
the condition of winter wheat in the
Northern Hemisphere is mostly reported
to be good.
The forecast also assumed an increase
in spring wheat plantings in North
America and a return to average yields
compared with the record high world
average seen in the current year. MBN
Kansas City spot millfeed
per ton
$100
$150
$200
$250
Dec. Oct. Aug. June April Feb.
2011
Bagel Ingredients
Price Indicators
Pan-bread our
Wheat futures,
K.C., March
Hard winter
premiums,
12.2% pro tein
Millfeed, K.C.,
30-day
Soybean oil
Cane sugar
Cocoa
THIS
WEEK
LAST
WEEK
3
WEEKS
AGO
2
WEEKS
AGO
Ambassador Cousin to lead W.F.P.
U
nited Nations Secretary-General
Ban Ki-moon last week con-
frmed the appointment of
Ambassador Ertharin Cousin as exec-
utive director of the World Food
Program. Ambassador Cousin, who
currently is the U.S. ambassador to
the U.N. food agencies in Rome the
W.F.P. and the Food and Agriculture
Organization will take offce in April
and will succeed Josette Sheeran, who
has held the post for the past fve years
and has accepted a position with the
World Economic Forum.
Ambassador Cousin has served in
the U.S. mission in Rome since her
appointment by President Barack Obama
was confrmed by the Senate in August
2009. Previously, Ms. Cousin served
as executive vice-president and chief
operating offcer of Feeding America (then
known as Americas Second Harvest),
the nations largest domestic hunger
organization. She led that organizations
response to Hurricane Katrina, an effort
that resulted in the distribution of more
than 62 million lbs of food to storm victims.
Earlier in her career, Ms. Cousin was
senior vice-president of Albertsons Foods
and vice-president for government
and community affairs for Jewel Food
stores. While at Albertsons, she also
served as president and chairwoman
of the companys corporate foundation,
managing the organizations philan-
thropic activities.
Ms. Cousin served in the Clinton
administration for four years and in 1997
received a White House appointment to
the Board for International Food and
Agricultural Development. MBN
Cousin
Ingredient Week
Bakery Flour
Bookings of bakery our continued
to expand last week from the small vol-
umes booked during the holidays. Prices
advanced.
Bakers employed various at-pricing
and component strategies. Individual
bakers supplying food service companies
who had menu pricing to protect booked
at least some supply for the rest of 2012
and in exceptional instances into January-
March 2013. Recent declines in wheat
futures encouraged others to cover at
least that component of prospective our
bookings for April-June, July-September
and even the fourth quarter of 2012.
Concerns that the cash hard winter
wheat basis was ending its recent slide
prodded some bread our buyers to
cover the cash basis even if holding back
from completing our transactions.
The crumbling millfeed market gen-
erated concerns, and there was some
activity in this component by bakers
who feared millfeed values might erode
further given the bearish undertone in
corn and other feed markets in the wake
of the U.S. Department of Agricultures
surprisingly large increase in its forecast
for the 2011-12 corn supply.
Activity in specialty our was steady.
Rye our pricing declined with a slight
slip in the cash rye price to $8.25 a bu. The
rye market has been remarkably rm and
mostly stable even as other grain markets
recently declined. The rmness was at-
tributed to a small 2011 crop with remain-
ing supply in strong hands.
$11.00
$14.00
$17.00
$20.00
$23.00
$26.00
J A J O
Previous Year Current Year
Bulk, f.o.b. car, $ per cwt
$10.00
$14.00
$18.00
$22.00
J A J O
$13.00
$17.00
$21.00
$25.00
$29.00
$33.00
J A J O
Flour grind remained heavy in most ar-
eas. Mills ran six to seven days in the Up-
per Midwest, Central states and North-
east and ve to six in the Southwest and
Southeast. West coast grind still was light
at about ve days in California and ve to
six in the Pacic Northwest. MBN
Family Flour
Sales of national and regional brands
of family four were limited last week.
Carlot list prices were unchanged.
Shipments were routine. Some grocers
and other retailers continued to work
down inventories left from the holidays.
Attention was turned toward marketing
approaches for Easter, which typically is the
next occasion for an increase in home bak-
ing beyond the norm. With wheat prices
down during the past several weeks, some
manufacturers considered more assertive
trade activation programs. One manufac-
turer suggested retail shelf offers of family
four at two 5-lb bags for $4 may be com-
monplace during the run-up to Easter.
Most private label four buyers have
taken partial or even complete coverage
of their needs through old crop. MBN
Semolina
Bookings of semolina, granulars and
durum our were limited last week.
Prices declined.
The price of choice milling hard amber
durum quoted as a delivered Chicago/
beyond value was $11 a bu, down 15c
from the previous week. The Minne-
apolis price was 30c a bu lower than the
Bakers standard, Kansas City
Spring standard, Minneapolis
Cracker our, Chicago
Bakery our
Change from Year
Jan. 20 Jan. 13 Jan. 6 ago
Kansas City
Bakers short patent 19.00 0.80 0.85 21.20
Bakers standard patent 18.90 0.80 0.85 21.10
Second clear 14.00 12.50
Third clear NA . . . . . . 5.80
Minneapolis
Spring short patent 21.90 1.75 2.35 24.55
Spring standard patent 21.80 1.75 2.35 24.45
High gluten 24.80 1.75 2.35 27.45
Whole wheat 21.80 1.75 2.35 24.45
Specialty whole wheat 22.15 1.75 2.35 24.80
Fancy spring clear 21.65 1.75 2.35 24.30
First spring clear 21.55 1.75 2.35 24.20
Rye, white 21.25 -0.25 0.30 20.70
Chicago
Cracker 15.50 0.35 0.25 19.35
Fancy cake 17.00 0.35 0.25 20.85
New York
Winter/spring blend 21.40 0.80 0.85 23.60
Spring standard patent 24.40 2.05 2.80 27.00
High gluten 27.40 2.05 2.80 30.00
Fancy cake 19.00 0.35 0.25 22.85
Rye, white 23.75 -0.25 0.30 23.20
Los Angeles
Bakers standard patent 21.90 0.80 -0.35 21.65
Pastry 21.75 0.80 1.05 21.20
Bulk, f.o.b. Minneapolis, $ per cwt
Semolina
No. 1 hard amber durum
Dollars
Nationally advertised family our
Jan. 20 Year ago
Family patent, 2-25s papers 24.12 22.50
4-10s n.a. 18.25
8-5s 18.62 18.40
18-2s 20.64 21.76
Self-rising n.a. +88c per bale
Change from Year
Semolina 26.45 -.30 -1.80 26.60
Granulars 26.25 -.30 -1.80 26.40
Flour 26.15 -.30 -1.80 26.30
First clear 19.10 13.60
Second clear 13.00 11.00
Semolina - N.Y. 29.15 -.30 -1.80 29.30
Track, Minneapolis
$ per bu
Chicago quote, or $10.70, taking into ac-
count the rail freight rate differential
between the two markets. It should be
noted that amid a dearth of trading of
spot durum, with most supply moving
against contracts, pegging value was
problematic. Some quotes, reecting
bids, were much lower, even down to $10
a bu, while other quotes reecting offers
were as high as $11.50 a bu. The Cana-
dian Wheat Board offered milling durum
held in storage in Thunder Bay, Ont., at
the equivalent of $11.15 a bu. All agreed,
though, that price likely will continue to
trend lower until demand is uncovered.
Pasta manufacturers earlier cov-
ered nearly all of their semolina needs
through March. Millers reported tire
kicking for quotes and additional sec-
ond-quarter ownership. Coverage for
April-June was estimated at about 35%.
Many pasta makers were trying get a
grip on how much more downside there
was in the durum market.
on Jan. 12 forecast durum plantings in
Arizona and California at 230,000 acres,
up 30,000 acres from 2011 and com-
pared with 185,000 acres in 2010. The
U.S.D.A.s eld ofce in Arizona said
durum planting in that state was two-
thirds completed by Jan. 15. MBN
Change from Year
Choice milling 13% 10.70 -.15 -.90 11.00
cents per bu
Amber discount 10.00 10.00
Durum discount 10@40 10@40
Pufng premium 0 0
Ingredient Week

Cash Wheat
HARD WINTER. Premiums on hard
red winter wheat in Kansas City were
unchanged to 20c a bu higher last week.
The widest gains were posted on wheat
with protein from 11.4% through 12.8%
(10@20c a bu) and on wheat with 14%
protein (10c). Five-cent gains were reg-
istered on wheat with protein from 13%
through 13.6%. Premiums on the lowest
proteins and on 13.8% protein were un-
changed and mostly untested.
Wheat movement in the spot mar-
ket slowed even as mills and exporters
sought to replenish pipelines. Mills re-
ceived wheat deliveries for application
against January contracts, but with mill
grind still heavy across much of the
country, many units sought additional
supply from the spot market. Gulf ex-
porters raised their bids on 12%-protien
hard winter wheat by 7c a bu at midweek,
but with some buyers out of the market
at the weeks end, bids were pulled back
and ended the week unchanged at 100c
over the K.C. March wheat future.
In Fort Worth, nearby bids on hard
red winter wheat were unchanged at the
K.C. March price. Salina terminal eleva-
tor truck bids were unchanged at 15c
under K.C. March. Hutchinson elevator
bids were 5c under K.C. March.
Snow cover was evident across the
northern Plains and even much of Ne-
braska, but most of the southern Plains
lacked snow cover even as temperatures
tumbled at midweek and into the week-
end. Warmer weather was forecast, and
the ups-and-downs in temperatures
raised some concerns about winterkill
and soil heaving.
The Texas eld ofce of the U.S. Depart-
ment of Agriculture rated the condition of
the states winter wheat crop on Jan. 15 at
22% good to excellent, 32% fair and 46%
poor to very poor, a decline in condition
from a week earlier when Texas wheat
was rated 25% good to excellent and 40%
fair. The ofce commented, Winter wheat
condition continued to improve in the
Northern High Plains due to rainfall expe-
rienced over the last month. Small grains
in the Blacklands are in good condition
with soil moisture improving weekly, with
some producers planting additional wheat
in areas that were overly saturated.
Jim Shroyer, a research and extension
agronomist at Kansas State University,
said in the Jan. 13 Kansas Wheat Scoop
update from the Kansas Wheat Commis-
sion, There is denitely more reason for
optimism about this years wheat crop
than there was at planting time. But the
dry subsoil could be a problem later this
spring if we dont get more rainfall. Also,
if nighttime temperatures in January and
February are consistently above freezing
for several days in a row, the wheat could
lose much of its winterhardiness and be
susceptible to cold injury from a sudden
drop in temperatures. Mr. Shroyer added
the latter possibility was not yet a concern.
HARD SPRING. Premiums on hard red
spring wheat quoted as delivered Chi-
cago/beyond values in relation to the
Minneapolis March wheat future surged
25@85c a bu higher last week. Bitterly
cold temperatures across the northern
Plains slowed the pace of rail car load-
ing, delaying some shipments of wheat
destined for application against Janu-
ary wheat contracts and limiting offers
of wheat on the spot market. Mills and
Basis Kansas City March, cents per bu
No. 1 hard winter
Exporter bids and offers
For
shipment
Jan. 20
Bid Offer
Year ago
bid
Canadian domestic milling wheat
No. 1 Hard 11.5%, Track, Portland
Basis Kansas City future, $ per bu
Cash wheat
No. 1 Spring 14%, Track, Portland
Basis Minneapolis future, $ per bu
Jan. 20 Change from Year
For shipment Bid Jan. 13 Jan. 6 ago
January . . . . . . . . .
February 6.40 +.18 +.18
March 6.42 +.18 +.17
No. 1 Soft White, Track, Portland
$ per bu
January 0.60 +.10 +.10 -0.20
February 0.65 +.13 +.13 -0.10
March 0.68 +.13 +.13 0.05
January 1.30 +.10 +.10 1.70
February 1.30 +.10 +.10 1.70
March 1.30 +.10 +.10 1.70
Premium Jan. 13 Jan. 6 ago
Ordinary 65 @ 80 +20 @ +20 -52 @ -37
11% 65 @ 80 +20 @ +20 -46 @ -31
11.2% 65 @ 80 +5 @ +5 -42 @ -27
11.4% 80 @ 95 +15 @ +15 +5 @ +5 -40 @ -25
11.6% 90 @ 105 +20 @ +20 +5 @ +5 -35 @ -20
11.8% 90 @ 105 +15 @ +15 -11 @ -11 -25 @ -10
12% 101 @ 116 +16 @ +16 -10 @ -10 -8 @ 7
12.2% 101 @ 116 +16 @ +16 -10 @ -10 -8 @ 7
12.4% 101 @ 116 +16 @ +16 -10 @ -10 -5 @ 10
12.6% 105 @ 120 +20 @ +20 -6 @ -6 0 @ 15
12.8% 110 @ 125 +10 @ +10 -1 @ -1 5 @ 20
13% 110 @ 125 +5 @ +5 -14 @ -14 66 @ 81
13.2% 115 @ 130 +5 @ +5 -9 @ -9 70 @ 85
13.4% 115 @ 130 +5 @ +5 -9 @ -9 75 @ 90
13.6% 115 @ 130 +5 @ +5 -9 @ -9 80 @ 95
13.8% 120 @ 135 -15 @ -15 80 @ 95
14% 158 @ 173 +10 @ +10 -7 @ -7 85 @ 100
Basis Minneapolis March, delivered Chicago\beyond cents
per bu
No. 1 hard spring
Premium Jan. 13 Jan. 6 ago
Ordinary . . . . . . . . .
11% . . . . . . . . .
12% . . . . . . . . . -65 @ -30
13% 120 . . . . . . 0 @ 65
13.5% . . . . . . . . . 70 @ 110
14% 155 @ 190 +45 @ +75 +65 @ +85 150 @ 200
14.5% . . . . . . . . . 215 @ 250
15% 165 @ 250 +25 @ +85 +55 @ +120 300 @ 340
16% . . . . . . . . .
17% . . . . . . . . .
January +100 March
February +100 March +50 March
March +100 March
April +100 May
January +62 March +73 March
February +66 March +73 March
March +70 March 75 +73 March
April +55 May 62 +45 May
Western red spring 13.5% 344.27 -4.41 400.95
Soft white spring 260.88 -2.63 316.09
Amber durum 415.55 -21.12 405.61
In-store, Thunder Bay,
Canadian $ per tonne Jan. 20
Change from
Jan. 13
Year
ago
U.S. $ per bu
Western red spring 13.5% 9.24 -0.02 10.97
Soft white spring 7.00 8.65
Amber durum 11.15 -0.45 11.10
No. 1 Hard 12%, Track Gulf
Basis Kansas City future, cents per bu
No. 2 Soft Red, c.i.f. New Orleans
Basis Chicago future, cents per bu
exporters requiring supply to shore up
pipelines were forced to hike bids to se-
cure a portion of what was offered.
At the same time, overall domestic
demand for hard red spring wheat re-
mained constrained by the substitution
of less expensive hard red winter wheat
for spring wheat of equivalent protein to
the extent practicable.
Of note were recent forward sales of
hard red spring wheat to private grain
companies by Canadian producers.
The sales were for delivery in August-
September and October-December 2012
and anticipated the end of the Canadian
Wheat Board monopoly on western Ca-
nadian wheat sales schedule for Aug. 1
under recent legislation.
SOFT RED. Mill bids on soft red winter
wheat were rm to 10c a bu stronger last
week. In Kansas City, No. 1 soft red bids
advanced 10c and were 40c under K.C.
March to 40c over. Gulf bids on soft red for
January were raised 4c and were 62c over
Chicago March. St. Louis mill bids held
at 30c over Chicago March. Chicago mill
bids were unchanged at 10c over Chicago
March; new crop, 35c under July. Mill bids
in Toledo for nearby were 40c over Chica-
go March, unchanged; new crop, 40c over
July. Elevator bids were 10c over March;
new crop, 5c over July. Cincinnati nearby
mill bids were 20c under Chicago March,
up 5c. Elevator bids for nearby were 25c
under March; new crop, 16c under July.
Michigan white wheat mill bids for near-
by were 15@40c over Chicago March. MBN
Ingredient Week
$4.25
$5.75
$7.25
$8.75
$10.25
J A J O
Wheat Futures
Prices of wheat futures posted mixed
price changes last week. Outside markets
mostly took a backseat to supply-and-de-
mand fundamentals for wheat. The U.S.
dollar index declined, but equity markets
registered solid gains. Corn futures de-
clined, but the soy complex ended stronger.
The International Grains Council raised
its forecast of 2011-12 wheat production to
a record 690 million tonnes, up 7 million
tonnes from its previous projection issued
at the end of November and up 37 million
tonnes, or 6%, from 653 million tonnes in
2010-11. World wheat consumption in the
current year was forecast at a record 681
million tonnes, up 2 million tonnes from
the previous projection and up 25 million
tonnes, or 4%, from 2010-11. World wheat
ending stocks in 2011-12 were forecast at
204 million tonnes, up 4 million tonnes
from the November projection and up 9
million tonnes from 195 million tonnes
in 2010-11. It would be the largest year-
ending wheat inventory since 1999-00.
The Minneapolis Grain Exchange
(MGEX), having received Commod-
ity Futures Trading Commission ap-
proval, announced changes to its hard
red spring wheat contract. The U.S. ori-
gin condition will be removed from the
contract beginning with the September
2012 future, allowing wheat from other
origins, read Canada, to be delivered
against the MGEX contract as long as it
meets contract specifcations and grades.
Beginning with the May 2013 future,
vomitoxin levels for delivery wheat will
be set. Wheat with 2 parts per million
vomitoxin or less will be deliverable at
the prevailing future price. Wheat with
a vomitoxin level above 2 p.p.m. but
below 3 p.p.m. will be deliverable at a
20c discount to that price. Wheat with
vomitoxin content above 3 p.p.m. will
not be deliverable. Also beginning with
the May 2013 contract, storage rates for
delivery wheat will be raised to 7c per
month from the current 5c per month.
indicated net export sales of U.S. wheat
during the week ended Jan. 12 totaled
587,200 tonnes, up 61% from the previ-
ous week and up 81% from the prior
four-week average. Export sales last
week were mostly routine with Japan
the largest buyer. MBN
Millfeed
Millfeed markets remained in turmoil
last week with prices continuing to drop
in most markets but steady to frmer on
the West coast, where light four grind
limited nearby supply.
$ per ton, delivered rail unless noted
N=Nominal
Bulk middlings
March contract, $ per bu
Minneapolis wheat futures
$ per bu; change in cents per bu
Wheat futures
Kansas City wheat futures
4.50
6.50
8.50
10.50
J A J O
Chicago wheat futures
$4.50
$6.50
$8.50
$10.50
J A J O
Change from Weeks Year
Jan. 20 Jan. 13 Jan. 6 High Low ago
Kansas City
March 6.67

-3c -13c 6.78 6.50

9
May 6.75 -3c -12c 6.85

6.59 9.10
July 6.85

-3c -11c 6.97

6.68

9.14
September 6.99 -4c -10c 7.11 6.83

9.23
Chicago
March 6.10

+8c -14c 6.11 5.90 8.24
May 6.28

+4c -15c 6.34

6.12

8.50
July 6.43

-2c -16c 6.54

6.28

8.66
September 6.60

-7c -16c 6.73

6.46 8.81
Minneapolis
March 7.98

-2c -2c 8.13

7.94 9.37
May 7.81 -4c -11c 7.99

7.78 9.43
July 7.74

-3c -12c 7.89 7.69

9.45
September 7.55 -9c -18c 7.73 7.51

9.39
High Low
10.14 (05-26-11) 5.03 (06-11-10)
10.01 (02-09-11) 5.15 (06-11-10)
9.97 (05-26-11) 5.90 (03-31-10)
10.20 (02-09-11) 5.42 (06-09-10)

9.54 (05-26-11) 5.05 (06-11-10)
9.25 (02-09-11) 5.21 (06-11-10)
9.57 (05-26-11) 6.13 (12-15-11)
9.71 (02-09-11) 5.60 (06-09-10)

10.55 (05-26-11) 5.32 (06-09-10)
10.56 (05-26-11) 5.43 (06-09-10)
10.55 (05-26-11) 6.74 (07-15-10)
10.55 (05-26-11) 5.65 (06-11-10)
Seasons
Kansas City 110 @ 120
Southwest, f.o.b. truck 125 @ 135
Minneapolis 121 @ 129
Upper Midwest, f.o.b. truck 117 @ 125
Chicago West 134 @ 142
Central states, f.o.b truck 105 @ 115
Buffalo 95 @ 110
Southeast 95 @ 102
N. & S. California 189 @ 199
Los Angeles, f.o.b. truck 185 @ 195
Pacic Northwest 185 @ 200
Upper Midwest, sacked 270
Wheat germ 295 @ 310
Change from Year
Jan. Jan. 13 Jan. 6 ago Feb.-Mar. Apr.-June July-Sept.
110 @ 120 -15 @ -10 -50 @ -46 144 @ 150 116 @ 122 102 @ 108 102 @ 108
125 @ 135 -20 @ -20 -50 @ -45 160 @ 165 136 @ 141 122 @ 127 122 @ 127
122 @ 129 -7 @ -10 -27 @ -28 149 @ 159 122 @ 129 122 @ 129 128 @ 138
118 @ 125 -7 @ -10 -27 @ -28 145 @ 155 118 @ 125 118 @ 125 124 @ 134
135 @ 142 -7 @ -10 -27 @ -28 162 @ 172 135 @ 142 135 @ 142 141 @ 151
105 @ 115 -5 @ -10 -45 @ -43 140 @ 148 115 @ 125 105 @ 115 105 @ 115
95 @ 110 -20 @ -15 -45 @ -40 127 @ 137 95 @ 105 90 @ 100 90 @ 100
95 @ 102 +5 @ +2 -40 @ -38 133 @ 140 98 @ 105 100 @ 107 @
174 @ 189 -10 @ -10 171 @ 181 164 @ 179 137 @ 152 @
170 @ 185 -10 @ -10 167 @ 177 160 @ 175 133 @ 148 @
185 @ 200 +5 @ +5 155 @ 165 175 @ 190 145 @ 160 @
Strong four grind, with some mills
running up to seven days in the Upper
Midwest, Central states and Northeast,
kept supply heavy in all regions east
of the Rocky mountains while demand
remained lackluster. Nearby values fell
as much as $25 a ton in the Northeast and
$15 in the Southwest with losses of about
$5 in the Upper Midwest and Central
states. Deferred prices were down about
$2@10 a ton. With the exception of the
West coast, spot millfeed prices have
plunged $60@95 a ton, or 33% to 50%.
Spot material traded well below quoted
values in some areas so four mills could
keep running through the weekend.
Traders held out hope of a turnaround
with the onslaught of much colder and
more wintry weather in many areas.
They also expected millfeed would be
included in more feed formulations at the
lower price levels, which were well under
average in relation to the value of corn.
Wheat germ prices were unchanged.
Millfeed was $110 a ton in Kansas
City and $121 a ton in Minneapolis, on
a rail basis, compared with corn at $223
a ton and sorghum at $204 a ton, both
K.C. Corn gluten feed was up $2 at $175
a ton, distillers dried grain was $200 a
ton and dehydrated alfalfa was $310 a
ton, all K.C. MBN
Spot
Ingredient Week

Chicago corn and soy futures Soy products
Corn meal
Oats
Rice
Defatted, f.o.b. Midwest plant, $ per cwt
$ per cwt
Change from
Jan. 13 Jan. 13 Jan. 6
Chicago, bulk 22.80 @ 25.68 +.27 @ +.25 -.58 @ -.65
Chicago, sacked 24.57 @ 27.51 +.27 @ +.25 -.58 @ -.65
New York, bulk 24.47 @ 27.41 +.27 @ +.25 -.58 @ -.65
New York, sacked 26.89 @ 29.80 +.27 @ +.25 -.58 @ -.65
Change from
Soy our
Bulk 23.00 @ 23.94 +.42 @ +.52 +.38 @ +1.12
Sacked 24.00 @ 25.94 +.42 @ +.52 +.38 @ +1.12
Minneapolis
Change from
Food grade akes, f.o.b.,
bagged, $ per cwt 28.50@28.75 +.25 -.25
Milling quality oats, No. 2 heavy,
$ per bu 3.24 +12c +7c
Oat hulls, $ per ton 25@35
Change from Year
Corn Futures Jan. 20 Jan. 13 Jan. 6 ago
$ per bu
March 6.11 +12 -32 6.57
May 6.16 +10 -34 6.67
July 6.20 +8 -35 6.71
September 5.75 -2 -26 6.22
December 5.51 -3 -23 5.87
March 5.64 -1 -23 5.95
Soybeans $ per bu
March 11.87 +28 -9 14.12
May 11.95 +27 -10 14.22
July 12.04 +26 -10 14.3
August 12.01 +23 -8 14.05
September 11.91 +19 -7 13.75
November 11.83 +13 -7 13.48
Soybean Meal $ per ton
March 311.90 +10.40 -.50 379.60
May 313.90 +9.40 -1.00 382.50
July 316.30 +8.50 -1.50 383.30
August 315.80 +7.40 -1.60 373.60
September 314.10 +5.70 -2.10 363.30
October 309.40 +3.90 -2.80 350.40
Offers f.o.b. mills, $ per cwt, bagged
Change from Year
Cash Jan. 20 Jan. 13 Jan. 6 ago
Long grain 25.50@29.00 -1.50 29.00
Medium grain 29.00@30.00 -2.00 34.00
Parboiled 28.50@34.00 -1.50 34.00
Second
heads, bulk 17.00@18.50 15.00
Brewers 14.00@18.00 10.00
f.o.b. mills, $ per ton
Rice millfeed . . . . . . 55.00
Rice bran 210.00@230.00 110.00
Rice hulls 70.00 10.00
U.S.D.A. 2011 crop world price milled - $ per cwt
Long grain 19.28 -0.66 20.96
Medium/short
grain 18.99 -0.46 20.68
Broken 13.64 -0.33 14.83
C.B.O.T. rough rice futures - $ per cwt
March 14.53 +0.09 -0.14 14.87
May 14.81 +0.09 -0.14 15.16
July 15.06 +0.08 -0.13 15.42
September 15.05 +0.02 -0.03 15.35
Corn Products
Corn meal sales were slow last week
as prices recovered from the prior weeks
losses. Orders generally were balanced
across all grit sizes, although demand
for breading material typically begins to
increase at this time of year. Corn mills
ran about fve days.
Corn futures prices posted mixed
results last week with old crop contracts
rising modestly but new crop months
(September 2012 and forward) easing.
Daily price fuctuations resulted from
forecasted rain or the lack thereof in dry
areas of Argentina with prospects again
looking wetter at weeks end. Sharply
lower crude oil futures prices and a
private forecast for increased U.S. corn-
planted area in 2012 weighed on new
crop prices Friday, mostly offset ting
support from strong weekly export sales.
Slow farmer sales of corn underpinned
frm cash basis levels as futures prices
dipped to one-month lows early last week.
The average farm price paid for corn in
2011-12 was projected at $5.70@6.70 a bu,
down 20c from the December forecast and
compared with $5.18 a bu in 2010-11 and
$3.55 a bu in 2009-10, the U.S. Department
of Agriculture said in its World Agricultural
Supply and Demand Estimates.
Net export sales of U.S. corn during the
week ended Jan. 12 for delivery in 2011-12
totaled 759,900 tonnes, more than twice
the prior weeks amount, the U.S.D.A.
said. Major buyers included Mexico,
China, South Korea and Japan. MBN
Oats
Sales of food grade oat fakes were
slow last week and have been running
behind year-ago levels for some time,
which traders attributed partly to mild
winter weather to date, although that
was changing in some areas. Off-take of
previously sold material was less than
100% and in some cases down about
10%, suggesting buyers were managing
inventory levels because of slower-than-
expected sales, one miller suggested.
Prices of oats fakes frmed slightly last
week as oats futures prices advanced
and the cash basis remained strong due
to limited farmer selling. Some new
crop pricing again was noted, but only a
limited number of new sales resulted. MBN
Rice
U.S. milled rice and rice byproduct
prices were mostly unchanged last
week. U.S.D.A. 2011 crop world milled
rice prices also held steady.
Milled rice stocks on Dec. 1, 2011,
were 6,243,000 cwts, down 1% from a
year earlier, the U.S.D.A. said in its Jan.
12 Rice Stocks report. Dec. 1 rough rice
stocks totaled 146,869,000 cwts, down
15% from the previous year.
U.S. 2011 rice production was
estimated at 185,009,000 cwts, down 2%
from the prior forecast and down 24%
from 2010, the U.S.D.A. said in its recent
Crop Production 2011 Summary. Planted
area of 2.69 million acres was down 26%
from 2010, and harvested area of 2.62
million acres was down 28%.
Despite lower 2011 production, the
U.S. rice carryover on Aug. 1, 2012, was
projected at 38.5 million cwts, up 1 million
cwts from the December forecast due to
projected cuts of 3 million cwts in 2011-
12 domestic use and 1 million cwts in
exports, the U.S.D.A. said in its Jan. 12
World Agricultural Supply and Demand
Estimates. Global 2011-12 production was
forecast at a record 461.4 million tonnes. MBN
Soy Products
Soy four sales remained slow last
week. Prices advanced. No new long-
term contracts and only a few routine
month-to-month sales were noted. Time
needed to deliver new orders ranged
from one to three weeks.
Although soy complex futures ended
on a weak note, contracts posted solid
price gains for the holiday-shortened
week to recover much of the prior weeks
losses that resulted from bearish U.S.
Department of Agriculture data. Soybean
futures prices rose and fell regularly
last week on mixed prospects for rain in
parched soybean-growing areas mainly
in Argentina, where soybean production
forecasts already have been trimmed.
Pressure also stemmed from a sharp drop
in crude oil futures prices on Friday. Some
offsetting support came from renewed
demand for U.S. soybeans by China,
strong weekly export sales and slow
soybean sales by U.S. farmers, which kept
cash basis levels frm.
The average farm price of soybeans
in 2011-12 was projected at $10.95@12.45
a bu, compared with $10.70@12.70 a
bu forecast in December and $11.30 a
bu in 2010-11, the U.S.D.A. said in its
World Agricultural Supply and Demand
Estimates on Jan. 12.
Net export sales of U.S. soybeans during
the week ended Jan. 12 for delivery in 2011-
12 soared to 991,100 tonnes, more than
double the previous weeks amount and
95% above the prior four-week average, the
U.S.D.A. said. Major buyers included China,
Indonesia and unknown destinations.
Soybean meal net export sales for 2011-
12 during the week were 181,200 tonnes,
nearly four times the previous weeks total
and 88% above the four-week average. MBN
Ingredient Week
Beet and cane sugar
Raw cane
Sweeteners
Edible oils
Crude soybean oil
Chicago soybean oil futures
Decatur, Ill., bulk, cents per lb
Spot soybean oil
f.o.b. plant, cents per lb
*Spot raw plus 7% plus 15.4c with 2% cash discount.
Change from Year
Midwest beet 52.00 @ 54.00 55.00
Pacic beet 52.00 @ 54.00 55.00
Cane* 53.00 @ 56.00 55.00
Delivered basis, cents per lb
1-Variations in prices often tied to tank car versus truck deliveries. 2-Prices are the lowest available to the publication. 3-Regular 42 DE/43 Baume, f.o.b. tank cars, trucks
42% HFCS spot price
1
HFCS list price
2
Regular
corn
syrup
3
Dextrose
Delivery close Jan. 13 Jan. 6 ago
March 50.43 +.14 -.69 57.56
May 50.86 +.16 -.64 58.00
July 51.25 +.19 -.56 58.41
August 51.35 +.19 -.51 58.51
September 51.42 +.17 -.47 58.59
October 51.44 +.16 -.35 58.60
Delivery Decatur, Ill. Western points
January 49.68 @ 49.93 48.93 @ 49.43
February 49.68 @ 49.93 48.93 @ 49.43
March 49.68 @ 49.93 48.93 @ 49.43
April 50.15 @ 50.40 49.40 @ 49.90
May 50.36 @ 50.61 49.61 @ 50.11
June 50.56 @ 50.81 49.81 @ 50.31
July 50.75 @ 51.00 50.00 @ 50.50
Bulk in tank cars, cents per lb
Delivered rener, cents per lb
Change from Year
Contract Jan. 20 Jan. 13 Jan. 6 ago
Nearby 34.20 -.50 -1.70 38.35
February-March 34.20 -.50 -1.70 38.35
April-June 35.65 +.25 -.35 38.80
July-September 35.60 -.15 -.40 39.80
October-December 35.00 -.50 -.75 35.40
January-March 33.40 -.40 -.70 34.15
Bulk in tank cars, cents per lb
Change from Year
Soybean oil,
Decatur 50.00 +.25 -.50 54.50
Loose lard, Chicago 49.00 -.50 50.25
Edible tallow,
Chicago 51.50 +.25 +.75 50.50
Cottonseed oil,
Miss. PBSY 52.00 +.50 -.25 56.50
Palm oil, ports 50.00 -.25 -.75 61.00
Palm kernel oil,
ports 52.75 +1.25 63.25
Coconut oil 69.00 +3.00 87.00
Peanut oil,
Southeast 96.00 +.75 76.50
Corn oil, Decatur 54.50 +.25 +.25 59.75
Sunowerseed oil,
Midwest 88.00 -3.00 77.00
Canola oil, Midwest 54.50 -1.25 59.50
Bulk, cents per lb
East 33.85@37.85
Midwest 32.85@36.85
West 35.85@39.85
26.625
28.175
28.375
27.875
28.575
42% HFCS wet 55% HFCS wet
23.375 27.875 net
24.925 29.425 net
25.125 29.625 net
24.625 29.125 net
25.325 26.825 net
Jan. 20 Year ago
Midwest 17
3
/8 @

21
3
/8 15
3
/8 @ 19
3
/8
Northeast 18 @ 22 16 @ 20
Southeast 18
7
/8 @

22
7
/8 16
7
/8 @ 20
7
/8
Southwest 18 @ 22 16 @ 20
West 19
3
/8 @ 23
3
/8 17
3
/8 @ 21
3
/8
23.00
33.00
43.00
53.00
63.00
J A J O
Sweeteners
Sweetener markets remained quiet
last week. Prices of bulk rened sugar
were unchanged amid limited new
sales, although some traders suggested
the prior weeks U.S. Department of Ag-
ricultures World Agricultural Supply
and Demand Estimates raised concerns
about tight supplies in coming months.
Prices of bulk rened sugar held in the
52@56c a lb f.o.b. range for spot through
Dec. 31, 2012. Only small amounts were
said to be trading, mostly at the low end
of the price range.
Concerns about supply were prompted
by the U.S.D.A.s projected 2011-12 year
end stocks-to-use ratio of 5.3% in its Jan.
12 WASDE, mainly as the result of sharply
lower imports from Mexico, where sugar
production may come in below earlier ex-
pectations. A stocks-to-use ratio of 13% to
15% is more typical. With U.S. 2011-12 pro-
duction levels basically locked in, addi-
tional supply would have to come from an
increase in the tariff rate quota after April
1 and/or from Mexico. Traders thought
the reduction of imports from Mexico was
overstated in the WASDE because that na-
tion tended to ship sugar north based on
the price relationship to U.S. sugar rather
than on its own supply needs. When
Mexican reners shorted supply in that
country by shipping large volumes to
the United States in recent years, Mexico
opened its own import quotas. Reports
from Mexico last week indicated the
U.S.-Mexico sugar price relationship may
favor an increase in shipments during
February-March. In addition, Mexico has
used larger amounts of U.S. high-fructose
corn syrup to replace sugar.
In its Sugar and Sweeteners Outlook
last week, the U.S.D.A. noted sweetener
deliveries (sugar and HFCS use) in Mex-
ico during the rst two months of 2011-12
(October and November) were up 3.5%
from the same period in 2010-11 and up
6% from 2009-10. Deliveries of HFCS for
the period were up 10% from 2010-11 and
up 48% from 2009-10, with the HFCS share
rising to 32.8% of the total from 30.8% in
2010-11 and 20.7% in 2009-10.
New York sugar futures posted mixed
changes last week. Nearby March world
raw futures (No. 11) moved to a two-
month high above 24c a lb on weak-
ness in the value of the U.S. dollar and
indications of slow harvest progress in
Brazil. Domestic raw futures (No. 16),
meanwhile, declined to near 34c a lb on
increased producer selling.
The American Crystal Sugar Co. lock-
out of union members continued with
replacement labor operating processing
plants across the Upper Midwest.
Domestic corn sweetener markets
were quiet last week. MBN
Bakery Shortening
Bookings of edible fats and oils were lim-
ited last week. Price changes were mixed.
Soybean oil prices advanced. Soybean
oils futures gained ground with the rest
of the soy complex, which advanced on
ongoing concerns about dry conditions in
South America that may adversely affect
soybean production there. The cash basis
on soybean oil remained unchanged.
Soybean oil users put on additional
coverage during the previous week that
extended contract balances to about 60
days for most buyers. It was expected
buying would pick up again if futures
prices would dip toward 50c a lb.
Declining world vegetable oil supply
provided underlying support to U.S.
soybean oil values. While the market
may weaken from time to time, no col-
lapse in prices was envisioned.
The National Oilseed Processors As-
sociation estimated the soybean crush
in December at 145,420,000 bus, up from
141,277,000 bus in November but down
slightly from 145,537,000 bus in Decem-
ber 2010. Soybean oil stocks at the end
of December were estimated at 1,938
million lbs, up from 1,855 million lbs
in November and compared with 3,020
million lbs in December 2010.
Palm oil prices weakened. Palm oil
futures were lower. A poll of 25 market
analysts indicated most expected palm
oil prices to decline this year, which
would be the frst year of declining pric-
es in three years. The analysts pointed to
increasing production and worries over
world demand in view of continued
slow world economic growth. MBN
Ingredient Week

Certi ed Organic
Organic Soy Milk Powder
Organic Whole Milk Powder
Organic Nonfat Milk Powder
Organic Yogurt Powder
Organic Tofu Powder
Organic Butter Powder
Contact: Fred Smith 800-441-1001
P.O. Box 335, 1407 New Road, Linwood, NJ 08221
Email: fsmith@clonedairy.com www.clonedairy.com
Bringing you quality ingredients at competitive
prices for nearly 100 years.
A century of Dairy Expertise brings you
Cocoa
$ per lb
Dairy products
Change from Year
Whey powder .69 @ .74 +1c +3c .36
Lactose .82 @ .92 +1c .32
Whey protein concentrate,
(34% edible) 1.50 @ 1.60 1.00
(80% edible) . . . . . . . . . 3.00
Whey protein isolate
(90% edible) . . . . . . . . . 4.60
Nonfat dry milk high-heat
Central/East 1.49 @ 1.54 -1c 1.33
West 1.41 @ 1.51 +1c +1c 1.28
Nonfat dry milk medium-low heat
Central/East 1.40 @ 1.45 -1c -1c 1.30
West 1.37 @ 1.42 +2c 1.24
Buttermilk powder 1.26 @ 1.36 -3c -4c 1.18
Casein - acid 4.95 @ 5.10 4.20
Casein - rennet 4.60 @ 4.90 4.10
Caseinate
(f.o.b. ports) 4.80 @ 5.20 4.05
Butter 93AA (C.M.E.) 1.57 -4c -3c 2.10
Cheese $ per lb, Central
Cheddar (Blocks 40#) 2.48 +c +1c 2.23
C.M.E. cheddar barrels 1.50 -4c -8c 1.51
C.M.E. cheddar blocks 1.50 -9c -10c 1.52
Mozzarella 2.45 +c +1c 2.23
American 5# loaf 2.14 -c +c 1.88
f.o.b. plant, $ per lb
Egg products
Change from Year
Eggs Jan. 20 Jan. 13 Jan. 6 ago
Delivered, cents per dozen (multiply by 30 for case price)
Nest runs 47.00 @ 50.00 -6.00 34.00
Checks 32.00 @ 35.00 -8.00 20.00
Table -
Grade A large 91.50 @ 106.50 -15.00 -50.00 89.50
Dried products - f.o.b. plant, $ per lb
Whole 2.45 @ 2.75 -.10 2.15
Whites 4.60 @ 4.85 -.10 3.90
Yolks 1.80 @ 2.00 -.05 1.80
Blends
(+ sweetener) 2.05 @ 2.25 -.10 1.90
Frozen products - less than truckload, f.o.b., $ per lb
Whole 0.69 @ 0.73 -.01 -.06 0.55
Whites 0.72 @ 0.75 -.01 -.03 0.59
Sugared yolks 0.91 @ 0.94 -.01 -.02 0.87
Salted yolks 0.90 @ 0.93 -.01 -.02 0.83
Liquid products - pasteurized, f.o.b., $ per lb
Whole 0.44 @ 0.46 -.01 -.06 0.36
Whites 0.47 @ 0.49 -.01 -.06 0.41
Yolks 0.68 @ 0.70 -.02 0.69

Dairy Products
Dry dairy product and cheese prices
were mixed again last week while butter
values declined.
Nonfat dry milk prices saw narrow,
mixed changes last week. Production
was slightly higher and inventories were
building amid light to fair demand.
Buttermilk powder prices declined
amid heavy production and light
demand and spot sales. Inventories were
moderate and building in some areas.
Prices of dry whey and 34% whey
protein concentrate were frmer. Dry
whey supplies were tight and spot offers
limited while production was steady.
Demand was good for both dry whey
and 34% whey protein concentrate.
Lactose prices were unchanged.
C.M.E. Group cheddar prices declined
as manufacturers completed production
of products targeted for the Super Bowl
weekend in early February.
C.M.E. Group butter prices declined as
churning remained strong and outpaced
seasonal demand. MBN
Egg Products
Egg product prices remained weak,
but the sharp price declines of the past
couple of weeks slowed. Trading was
moderate, slowing from a week earlier.
Dried egg prices were steady to weaker
with the low end of price ranges unchanged
but the top end of ranges declining 5c a lb
for whites and blends and 10c for yolks.
Frozen egg products declined 1c a lb for all
items. Liquid whole eggs and whites fell 1c
a lb, but liquid yolks held steady.
Breaking egg prices were mostly
unchanged. While supplies still were
ample, some traders said offers were
Change from Year
Butterfat ratio N.Y. 1.10 @ 1.20 +.05 1.55
Cake ratio N.Y. 1.75 @ 1.85 1.57
Powder ratio N.Y. 1.95 @ 2.10 -.28 1.52
Cocoa Powder (East coast points, $ per lb)
10-12% Natural 2.05 @ 2.20 2.20
10-12% Alkalized 2.25 @ 2.40 2.25
Red alkalized 2.35 @ 2.50 2.30
Black alkalized 2.80 @ 2.95 2.45
16-18% Natural 2.15 @ 2.30 2.30
22-24% Natural 2.20 @ 2.35 2.35
not as heavy as in the prior couple of
weeks. The slide in graded egg prices
continued, though, with average prices
for large eggs down another 15c a dozen
and off more than 50c, or about 35%,
since the end of December. MBN
Cocoa
Cocoa powder prices were unchanged
in slow trading last week. A few new
sales of black cocoa powder were noted,
but otherwise, activity was limited. Black
powder supplies remained tight. Nearby
supplies of natural powder were limited,
but small amounts of supply could be
found. Some processors noted off-take of
contracted natural powder was slow.
North American fourth-quarter 2011
cocoa bean grind was 118,926 tonnes, up
1.5% from the same period a year earlier,
the National Confectioners Association
said. The number was below trade
expectations of a 3% to 5% increase
and followed disappointing European
fourth-quarter cocoa bean grind that
was up 1.8% as reported a week earlier.
New York cocoa bean futures prices
ended about fat giving back early gains as
both North American and European grind
suggested softer-than-expected demand. MBN
Ingredient Week
Specialty feed
Energy
Indexes are based on ingredient costs using standard formulas. Additional details appear on the
Ingredient Week Trends page on a rotating basis.
Grain-based foods stocks
Bakery ingredient indexes
Change from Year
K.C. bulk midds 110.00 -15.00 -50.00 144.00
Soybean meal, 44%, K.C. 287.90 +6.40 -5.50 363.60
Soybean meal, 47%, K.C. 295.90 +10.40 -8.50 369.60
Cottonseed meal, 41%, Memphis 215.00 -2.50 +0.50 247.50
Linseed meal, 35%, Minneapolis 205.00 +10.00 +12.50 260.00
Sunower seed meal, 28%, Minneapolis 222.50 -2.50 +15.00 207.50
Dehydrated alfalfa, 17%, Alf. Center 292.50 177.50
Meat meal, 50%, Kansas City 290.00 320.00
Meat meal, 50%, Chicago 285.00 325.00
Corn gluten feed, 21%, Southwest 180.00 -7.50 177.50
Corn gluten meal, 60%, Southwest 505.00 -2.50 587.50
Corn gluten feed, 21%, Midwest truck 137.50 +2.50 -2.50 140.00
Hominy feed, Kansas City (Northwest) 207.50 -2.50 +5.00 180.00
Hominy feed, Chicago 114.00 +5.00 -5.00 104.00
Hominy feed, California 259.00 +5.00 -5.00 246.00
Hominy feed, Central Illinois 110.00 +5.00 -5.00 100.00
Feather meal, K.C. 442.50 -5.00 +5.00 387.50
Distillers dried grain 200.00 190.00
Change from Year
Diesel fuel Jan. 20 Jan. 13 Jan. 6 ago
Retail, on-highway, $ per gallon
East coast 3.943 +0.035 +0.099 3.448
Midwest 3.746 +0.029 +0.063 3.371
Gulf coast 3.777 +0.027 +0.068 3.366
Rocky Mountain 3.823 -0.020 -0.013 3.374
West coast 4.037 +0.011 +0.058 3.509
U.S. average 3.854 +0.026 +0.071 3.407
Natural gas
Spot prices, $ per million BTUs
Henry hub 2.49 -0.32 -0.47 4.48
New York 5.21 +2.04 +0.66 9.88
Chicago 2.69 -0.26 -0.36 4.71
California average 2.79 -0.30 -0.35 4.32
Crude oil
Spot prices, $ per barrel
West Texas Intermediate 100.61 -1.63 -2.61 90.85
C.B.O.T. ethanol
Nearby contract, $ per gallon 2.132 +0.011 -0.091 2.332
Change from Year
Bagel 264.4 +16.7 +31.6 291.3
Cake donut 180.5 -0.1 -2.0 190.0
Devils food cake 206.0 +0.2 -1.8 204.8
Pasta 278.4 -3.2 -19.0 280.0
Saltine cracker 189.6 +3.4 +1.6 228.4
Shortbread cookie 202.2 +1.3 -0.3 219.9
White pan bread 212.4 +7.2 +6.9 231.0
$ per ton
Energy Information Administration
Tables in Ingredient Week use the following symbols:
unchanged... no quote
52-week Jan. 19 Net
High Low Close change
Grain-Based Foods
Share Index ................. 12504 .50 7531 .57 12187 .22 + 127 .88
ADM ................................ 38 .02 23 .69 29 .22 + .29
Bridgford ......................... 13 .40 6 .80 10 .00 .00
Bunge ............................. 76 .13 54 .03 58 .55 - .17
Campbell Soup ............... 35 .66 29 .69 32 .01 - .26
ConAgra ......................... 27 .25 22 .20 27 .12 + .61
Corn Products ................ 59 .50 36 .65 54 .81 + 1 .97
Dunkin Brands ................ 31 .94 23 .24 26 .69 + .83
Flowers Foods ................ 23 .13 15 .95 20 .01 + 1 .03
General Mills ................... 41 .06 34 .54 41 .05 + .63
Hain Celestial .................. 38 .47 26 .10 36 .62 + 1 .29
J & J Snack ..................... 55 .58 41 .91 51 .70 - .66
Kellogg ............................ 57 .70 48 .10 51 .16 + .75
Kraft Foods ..................... 38 .84 30 .21 38 .72 + .79
Krispy Kreme ................... 10 .08 5 .10 7 .07 - .23
Lance .............................. 23 .24 17 .06 23 .00 + .31
MGP Ingredients ............. 10 .08 4 .25 4 .85 - .13
Panera Bread Co. ............ 23 .24 94 .93 151 .14 + 7 .11
PepsiCo .......................... 71 .89 58 .50 64 .85 - .16
Ralcorp Holdings ............. 91 .35 59 .23 87 .25 + .71
J.M. Smucker ................... 81 .21 61 .16 81 .05 + 2 .24
Sara Lee .......................... 20 .26 15 .66 19 .25 + .25
Seaboard ......................... 2705 .00 1650 .00 1907 .22 + 11 .22
Grupo Bimbo .................. 105 .30 23 .00 29 .05 - .15
George Weston Ltd. ......... 74 .07 63 .80 65 .85 - .50
Maple Leaf Foods ............ 12 .49 10 .18 10 .53 - .06
One number away
Custom Market Data
Contact Christina Sullivan for more information or a price quote.
816-756-1000 ext 871 e-mail csullivan@sosland.com
Milling & Baking News
has what you need.
Historical market data for
over 75 food ingredients.
from fnding the trend?
Supplier Innovations
Bimbo in Mexico
Barry Callebaut, Zurich, Switzerland, has signed an
agreement to supply Grupo Bimbo S.A.B. de C.V. with up
to 32,000 tonnes of chocolate products annually for Bimbos
market in Mexico. The products will head to Bimbos
Mexican factories in Toluca and Monterrey. Barry Callebaut
will invest about $16 million as a result of the agreement.
The new outsourcing agreement with Grupo Bimbo is
a further landmark in opening up the promising market
potential in Mexico, said Juergen Steinemann, chief
executive officer of Barry Callebaut. This agreement
confirms the trend in outsourcing and our strategic focus on
emerging markets.
For more information, visit www.barry-callebaut.com.
For information on submitting an item for Supplier Innovations, e-mail
mbnprods@sosland.com or contact Jeff Gelski at 816-756-1000, ext. 867.
Freeze-dried pears offer avor
Barry Callebaut to supply
Micro-sized spiral oven
has small footprint
Unitherm Food Systems, Bristow, Okla., now offers a
micro-sized spiral oven that has a smaller footprint than
its mini-sized spiral oven. The micro-sized oven is 5-feet
wide, 7-feet long and 7-feet tall, and it has more than 60
linear feet of belt. The mini-sized oven is 8-feet wide,
8-feet long and 8-feet tall, and it has more than 180 linear
feet of belt. The ovens offer an affordable alternative in
the switch to large continuous cookers from small-batch
cookers, according to Unitherm Food Systems.
A food processor that is expanding production will get to
the point where they need to move to a continuous cook line,
said Adam Cowherd, international sales manager for Unitherm
Food Systems. The mini spiral gives them that option sooner.
For more information, call (918) 367-0197, e-mail
unitherm@unithermfoodsystems.com or visit
www.unithermfoodsystems.com.
Van Drunen Farms, Momence, Ill.,
offers freeze-dried canned pears that
may add flavor to baked foods, bars,
snacks, hot cereal and cold cereal.
Soaked in light syrup, the canned
pears are available in 3mm and 3/8-
inch diced sizes.
For more information, call (815) 472-
3100, e-mail sales@vandrunen.com or
visit www.vandrunenfarms.com.
I.F.F. forms scientic advisory board
International Flavors & Fragrances Inc., New York,
has launched a new scientific advisory board to provide
external perspectives on the companys R.&D. programs,
raise scientific issues and opportunities relevant to
its business needs, help identify appropriate research
partners, provide background in specific areas and assist
in the identification and development of R.&D. personnel.
We anticipate that (the board) will give us strong
competitive advantage, not only by tapping into the minds
of the board members, but by leveraging their access to a
global network of academics, high-level industry members
and their associates, said Doug Tough, chairman and
chief executive officer of I.F.F.
Ahmet Baydar, senior vice-president, research and
development for I.F.F., will lead the board. Other
members include Steven V. Ley, department head and
professor of chemistry at Cambridge University in the
United Kingdom; Cheryl Perkins, president and founder
of Innovationedge, L.L.C.; Thomas D. Sharkey, chair of
biochemistry and molecular biology at Michigan State
University; Leslie Vosshall, a molecular neurobiologist
with experience in olfactory receptors and olfactory
perception in humans and insects; and Brian Willis, former
senior vice-president of R.&D. and board member at Quest
Flavors and Fragrances.
For more information, visit www.iff.com.
Ice cakes, spread sauces
with depositors
Hinds-Bock Corp.,
Bothell, Wash., offers
servo depositors that
may be used for icing
cakes, spreading
sauces or viscous
batters. Spout and
depositor variations
are available to
customize the
depositor. The
depositors are
available as either
pump or piston style with multiple spout units available
for high speed applications.
For more information, call (877) 292-5715, e-mail
info@hinds-bock.com or visit www.hinds-bock.com.
Classieds
EMPLOYMENT
the baking industry expert
With 25 years of industry experience we know
how to nd the right people for your operation
no matter what area Executive, Sales/Marketing,
Technical Service, Operations, Production, QA,
R&D, Sanitation. Let us help you nd your key
people while you concentrate on your business.
Email us at paul@sharpsearch.us
or call 630-517-4822
District Sales Manager &
Technical Sales Manager
Career Opportunities
AB Mauri North America is looking
for experienced Sales and Technical
managers to join us in growing our
Fleischmanns yeast and AB Mauri
bakery ingredients business.
Qualifed candidates should
submit their resume to
www.abmna.com/aboutus/careers.
Cain Food Industries, Inc.,
located in Dallas, TX, a fast paced, privately held
specialty ingredient manufacturing company is
looking for qualied regional sales managers.
The ideal candidate will have a background in
hands on commercial baking and formulation,
an understanding of a wide variety of ingredients
and the ability to work directly with an array of
different grain-based food products. Candidates
should also be well organized, have great
interpersonal and communication skills and MS
Ofce experience. This position requires travel
approximately 60% of the time.
If interested, please
send a resume and
salary requirements to
jobs@cainfood.com
Regional Sales Reps. Ingredients
European based supplier of food and industrial ingredients (www.royal-ingredients.com) with U.S. ofce in Decatur, IL is
seeking experienced regional sales representatives to support its North American operations. Candidates can be either
individuals or distribution companies looking to broaden their product portfolio.
PROFILE: Huge growth potential for candidates with
strong contacts, sound ideas and good vision in the market
for industrial ingredients. Candidates are wanted for the
following sales areas: East coast, Midwest and West coast
and will be working in their region with support from the
Decatur, IL ofce. Candidates will be involved in developing
and implementing strategic sales plans, intensifying
relationships with existing customers, develop new business,
visiting customers and cold-calling potential customers for
food and industrial ingredients.
Candidates must be prepared to create and stick with a long-
range plan for U.S. market penetration and development.
Company is looking for long-term solutions; they are
expecting to stick with the right candidates over the long haul
to build market share. Company is looking for high-energy,
long-term planning doers.
QUALIFICATIONS: Excellent communication skills (written/
verbal), minimum 5 years relevant working experience
(trading background is a pre), strong contacts and product
knowledge, prepared to work in a small team, independent,
but no loner, entrepreneurial attitude and analytical skills.
Those interested should forward their resume to:
benbroersen@royal-ingredients.com.
Classieds
Classifed
Advertising
Gets Results FAST!!!
Contact Lily OKane at
Phone: 630-717-8811 or
Fax: 630-717-8822 or
Email: lokane@sosland.com
CUSTOM DRY BLENDING
Run your classied ad with us and receive
Multiple Exposure with
Digital Delivery
SERVICES
MICHAEL HOLM & ASSOCIATES
Recruiting for the Baking Industry Since 1979
Companies from the Ingredient, Equipment, Wholesale, Retail and In-Store segments of the Baking
Industry use Michael Holm & Associates to locate the best available talent. We constantly need
qualifed candidates in the following areas:
PRODUCTION SALES/MARKETING MAINTENANCE ENGINEERING
SANITATION R&D/QA DISTRIBUTION EXECUTIVE
All fees and relocation company paid. Phone (630) 663-1195 Fax (630) 663-1198
E-mail:recruit@holmandassociates.com www.holmandassociates.com
MICHAEL HOLM & ASSOCIATES 2050 W. 75
th
Street Woodridge, Illinois 60517
ca reer opportunities
With over 40 years experience, were proven leaders in the grain, milling,
feed and food industries from entry level to executive level. Inquiries are
condential. Fees are paid by our client companies. Visit our website or con-
tact our nearest ofce toll free and let our entire network go to work for you.
International ofces inThe Nether|ands Sermany |srae| Po|and hungary |nd|a $|ngapore
AHEP|0A'$ ASP|BU$|NE$$ PE0RU|TEP$|00N$ULTANT$ s|nce 199
Visit us at www.agriassociates.com

Atlanta 800-562-1590
California 866-909-6789
Dallas 800-561-7568
Davenport 800-728-0363
Denver 800-354-8039
Florida 941-412-8210
Kansas City 800-550-7980
Memphis 800-792-2474
Minneapolis 651-731-3211
Omaha 800-282-4975
Pittsburgh 866-318-0800
Seattle 509-285-5657
Custom Dry Blending
www.blendex.com
1-800-BLENDEX
CUSTOM DRY BLENDING
Contract Manufacturing & Packaging
Toll Processing for Food & Pharma
3 Chicagoland AIB Superior Locations
Dry & Liquid
Blending, Milling & Other
Processing Services
www.arro.com
Toll-Free: 866-929-2776
B gggggg gggggg
Pr Pr Pr Pr Pr Pr Proc oc oc oc oc oces es es es es es essi si si si si sing ng ng ng ng ng ng SSSSSSSer er er er er er ervi vi vi vi vi vi vv ce ce ce ce ce ce essssss
Bl Bl Bl Bl Bl Bl BB en en en en en en e ddi di di di di ing ng ng ng ng ng ng,,,,,, Mi Mi Mi Mi Mi Mi Mi M lll ll ll ll n in in in in inggggggg & & & & & & & & Ot Ot Ot Ot Ot Ot the he he he he he he errrrrr BBBBlending, Milling & Other
Processing Services
DDDDDDDDDrrrrrrrrrryyyyyyyyyyy &&&&&&&&&&&& LLLLLLLLLiiiiiqqqqqqqqquuuuuuuuuiiiiiddddddddd
l d ll l BB di Mi Milli && Ot OO Bl di Milli & Ot Bl BB di di Mi Mill lii && Ot OO Bl di Milli & Ot
Dry & Liquid
Subscribe online at www.bakingbusiness.com or contact the circulation department at 1-800-338-6201 or fax 816-968-2878.
EMPLOYMENT
Marketplace Business Network
EQUIPMENT
INGREDIENTS
MGM is your solution!
|lour, syrup, sweeleuer, oil, yeasl, gluleu aud olher iugredieuls
Jruck or rail, bulk or bagged, auywhere iu lhe u.S. or Cauada
^lways a price lhe saue day you call
0uarauleed eed or iuduslrial applicalious
0uliue shipueul aud iuuediale payueul
www.redstaryeast.net
800-558-7279
Run your classied ad with us and receive
Reserve your ad space today ~ contact Lily OKane at Phone: 630-717-8811 Fax: 630-717-8822 Email: lokane@sosland.com
Multiple Exposure with Digital Delivery
EQUIPMENT
MIXING & BLENDING
EQUIPMENT
www.showes.com
SANITARY
RIBBON OR PADDLE
CUSTOM
BATCH
CONTINUOUS
(888) 255-2611
Capitol Distribution Co.
13930 Mica Street, Santa Fe Springs, Ca 90670 www.capitoldistribution.com
E-mail: info@capitoldistribution.com 562-404-4321 Fax: 562-404-1041
Your #1 Ingredient Supplier
Serving the Food Industry throughout the United States.
Contact: Jason T. Glaser
1.800.622.3055 ext 101
gfgb.com
Quality Products.
Better Performance.
Zero Trans Alternatives
Flaked Shortening Specialists
We carry a full line of
liquid and dry malts,
molasses, brown rice
syrup, agave, high
fructose and corn
syrups.
Exceptional products from people who care!
Malt Products Corp.
www.maltproducts.com info@maltproducts.com 800-526-0180
88 Market Street, Saddle Brook, NJ 07663
Monitor sifter efficiencies
Quality control testing
Check break release
gwmfg.com
Sampl-Sifter
SERVICES
Do I need reprints?
Reprints are great for sales meetings, trade show handouts,
training tools, recruiting brochures, investor proles, annual
reports, press releases or new product introduction.
Reprints can be single sheets or multi-page,
four color brochures with custom design
to meet your marketing needs. Minimum
quantity is 100.
Call Tare Torres for more information or
price quote at 816-756-1000 or e-mail
reprints@sosland.com
My company was featured in an article
My product/equipment/service was in an article
I have a great ad that should be utilized
THE NEWS WEEKLY OF GRAIN-BASED FOODS

bakingbusiness.com / foodbusinessnews.net
JANUARY 12, 2010
LATE NEWS
WASHINGTON Dana Peterson,
a longtime member of the Kansas
Wheat staff, has been named chief
executive of cer of the National
Association of Wheat Growers, ef-
fective Jan. 20. We are absolutely
delighted to be bringing one of our
dynamic state staffers to the national
of ce, said Karl Scronce, president
and acting c.e.o. at NAWG. Dana
is great to work with and showed
con dence and poise throughout the
interview process. She has ideas and
enthusiasm that we need in Wash-
ington to help NAWG grow and
the wheat industry thrive in a very
competitive policy and production
Dana Peterson named
c.e.o. of NAWG
Grain-based foods shares rise
broadly, impressively in 2009
NEW YORK Shares of grain-based
foods companies were up sharply last
year, partly recovering from severe
losses sustained in 2008.
The Grain-Based Foods
Share Index, calculated
by Milling & Baking
News, ended the year at
10,350.06, up 13%.
Even with the dou-
ble-digit gain, the in-
dex was still beneath
the year-end closes of 2007 (11657.58),
2006 (11542.79) and 2004 (10852.64).
The 10,350.06 close was 14% be-
neath the all-time high for the index
(12018.59), reached in July 2007.
While lagging broader market in-
dex performances, the grain-based
share gain wasnt far behind the 19%
Continued on Page 8
jump in the Dow Jones average of in-
dustrial shares. The Standard & Poors
500-stock index was up 24% for the
year; the Nasdaq com-
posite index was up
44% and the Russell
2000 was up 25%.
When combined with
the performance in 2008,
the Grain-Based Foods
Index outperformed the
broader market mea-
sures. For the two-years ended Dec. 31,
the grain-based index was down 10%,
versus a 21% decline in the Dow indus-
trials, a 24% drop in the S.&P. 500 and a
14% decline in the Nasdaq index.
Drilling deeper into the S.&P. 500,
the Grain-Based Share Index 2009
Bringing the heat
Story on Page 34
Private label pushing branded hot
cereal makers like never before
Cash spring wheat basis now
quoted as delivered Chicago value
MINNEAPOLIS Beginning Jan. 4,
the cash spring wheat basis provided
daily by the Minneapolis of ce of the
U.S. Department of Agricultures Agri-
cultural Marketing Service was quoted
as a delivered Chicago/beyond value.
Previously, the cash spring wheat basis
was quoted as the Minneapolis value of
wheat traversing that gateway to des-
tinations beyond. The new cash spring
wheat basis still was determined in
relation to Minneapolis wheat futures.
The Minneapolis Grain Exchange
(MGEX), which is host to the onsite
A.M.S. of ce posting the cash spring
wheat basis, in a Dec. 24 announce-
ment, stated: Due to changes in rate
structures by a Class I rail carrier, ef-
fective Jan. 4, 2010, daily cash wheat
and durum basis will be quoted as a
delivered Chicago value. Applicable
freight differentials to Minneapolis/
St. Paul and Duluth/Superior delivery
points will also be provided. Prices will
continue to re ect values of rail cars of-
fered and traded in the exchange room
of the Minneapolis Grain Exchange for
spot or immediate shipment.
The Class I carrier involved was the
Burlington Northern-Santa Fe, which
FEATURE Stock Market Review
INGREDIENTS
Ad Index
(This index is provided as an additional service to readers. The publisher does

not assume any liability for errors or omissions.)
www.bakingbusiness.com
www.world-grain.com
4800 Main St., Suite 100.

Kansas City, Mo. 64112
Phone: (816) 756-1000
Fax: (816) 756-0494
E-mail: mbn@sosland.com
www.meatpoultry.com
www.BioFuelsBusiness.com
ADM ..................................................................................... 6
www.adm.com/milling
Brolite Products, Inc........................................................... 13
www.bakewithbrolite.com
Buhler, Inc. ......................................................................... 17
www.buhlergroup.com
Bunge North America ........................................................ 48
www.bungenorthamerica.com
Cain Food Industries, Inc...................................................... 3
www.cainfood.com
Cereal Food Processors, Inc. .............................................. 47
www.cerealfood.com
CHS Inc. ................................................................................ 5
www.chsinc.com/partner
Clone Dairy & Food Products, Inc. ................................... 39
www.clonedairy.com
ConAgra Mills .................................................................... 25
www.conagramills.com
Corn Reners Association .................................................. 32
www.corn.org
Dakota Specialty Milling .................................................. 26
www.DakotaSpecialtyMilling.com
Horizon Milling, LLC ........................................................... 11
www.horizonmilling.com
International Bakers Services, Inc. .................................... 31
www.InternationalBakers.com
Lallemand/American Yeast .................................................. 2
www.lallemand.com
The Mennel Milling Co. ........................................................ 8
www.mennel.com
Shawnee Milling Co. .......................................................... 46
www.shawneemilling.com
B.C. Williams Bakery Service, Inc........................................ 27
www.bcwilliams.com
Milling & Baking News, (ISSN 0091-4843) Volume 90, issue 24
is published every other week by Sosland Publishing Co., 4800
Main Street, Suite 100, Kansas City, MO 64112. Periodicals
postage paid at Kansas City, MO 64108 and additional mailing
offices. Canada Post International Publications Mail (Canada
Distribution) Sales Agreement Number 40612608. Send returns
(Canada) to Pitney Bowes International, P.O. Box 25542, Lon-
don, ON, N6C 6B2. Printed in the USA. POSTMASTER: Send
address changes to Milling & Baking News, PO Box 324, Con-
gers, NY 10920-0324. 2010 Sosland Publishing Co. All rights
reserved. Reproduction of the whole or any part of the con-
tents without written permission is prohibited. Milling & Bak-
ing News assumes no responsibility for the validity of claims in
items reported. Sosland Publishing Co. is a division of Sosland
Companies, Inc.
senior vice-president of inves-
tor relations and corporate af-
fairs for Sara Lee Corp.
The Mennel Milling Co.
announced that its Fosto-
ria flour mill has achieved
HACCP (hazard analysis and
critical control point) accredi-
tation from the American In-
stitute of Baking International
and Guelph Food Technology
Centre of Canada.
Kellogg Co.
announced that
John Bryant has
been named
senior vice-
president and
chief financial
officer, effective
Feb. 1.
Hal Ross, a retired flour mill-
ing executive, and his wife,
Mary Lou Ross, have pledged
$2 million to Kansas State
University for the new Grain
Science Complex at the uni-
versity in Manhattan, Kas.
The board of directors of
Ralston Purina Co. at its an-
nual meeting completed a
year-long management tran-
sition by electing William P.
Stiritz chairman of the board.
Mr. Stiritz, who is 47, succeeds
R. Hal Dean who has retired.
Dale C. Putman and B.J.
(Bud) Hinkle have been elect-
ed president and chief execu-
tive officer and vice-chairman
2002
Archive
In a move the company
said will finally give it a
significant U.S. presence,
Grupo Bimbo S.A. de C.V.
announced Jan. 22 that it had
reached an agreement to ac-
quire the eastern U.S. baking
business of George Weston
Ltd. for $610 million.
On Jan. 11, the U.S. Depart-
ment of Agriculture estimat-
ed winter wheat plantings for
harvest in 2002 at 41,031,000
acres, the lowest since 1971.
The largest companies in
the food industry are fully
engaged in integrating large
recent acquisitions, and a
shift in merger and acquisi-
tion activity is likely ahead,
according to Moodys Inves-
tor Service, New York.
Roger W. Masa, a 44-year
veteran of
wholesale bak-
ing and allied
fields, on Feb.
18 will succeed
Bernard Forest
as president of
The Long Co.
Ralph G. Martin, 96, a pioneer
in the grain fumigation busi-
ness and a former grain man
and four miller, died Jan. 17
at his home in Kansas City.
Sara Lee Bakery has introduced
extended shelf life baked goods
in four of its six operating re-
gions, said Janet E. Bergman,
of the board and chief finan-
cial officer, respectively, of
Interstate Brands Corp.
Perfection Biscuit Co., Fort
Wayne, Ind., has acquired
the assets of Way Baking Co.,
Jackson, Mich., according to
John F. Popp, president of
Perfection.
Kerns Inc., Knoxville, Tenn.,
has been named offcial bak-
ery for the 1982 Worlds Fair,
which will be held in Knoxville
from May through October.
In his State of the Union ad-
dress, President Reagan called
for Congress to transfer up to
40 domestic social programs
to the states, beginning in fs-
cal 1984 with the food stamp
and Aid to Families with De-
pendent Children programs.
Flowers Industries, Inc. has
filed a registration state-
ment with the Securities and
Exchange Commission for a
proposed secondary offer-
ing of approximately 615,000
shares of common stock to be
sold by certain shareholders.
With full appreciation of the
critical war problems before
1982
Shawnee Milling Company
Shawnee Milling Company
P.O. Box 1567
Shawnee, OK 74802-1567
405-273-7000
Okeene Milling Company
P.O. Box 1000,
Okeene, OK 73763
580-822-4411
SHAWNEE FLOUR
Bakers, H & R
Food Service/Retail
Private Label
All Purpose
Self-Rising
Whole Wheat
Custom Mixes
OKEENE FLOUR
Bakers, Pastry, Whole Wheat
SHAWNEE CORN MEAL
White/Yellow
Meal, Flour, Cones, Coarse
Self Rising
sgarlow@shawneemilling.com
www.shawneemilling.com
Good Millers Since 1906
the nation, the annual meet-
ing of the board of governors
of the American Bakers As-
sociation in Chicago paved
the way for further strength-
ening of the collaboration of
the baking industry with the
government.
The milling industry can
well prepare for the time
when maximum seven-day
operations may become nec-
essary, commented Philip W.
Pillsbury, president of the
Pillsbury Flour Mills Co.,
Minneapolis, in a talk before
members of District No. 4 of
the Association of Operative
Millers in Minneapolis.
Harry H.H. Brown, president
and manager of Terminal
Flour Mills Co., Portland,
Ore., died suddenly Jan. 28 of
a heart attack.
Since the war, several of
the smaller flour mills that
were closed down in Britain
as redundant by the
Ministry of Food have been
re-started. The move helps
compensate for the reduction
in capacity that had occurred
in targeted areas.
Secret mills for the conver-
sion of wheat and other
grains into flour are spring-
ing up over Continental Eu-
rope, some driven by electric-
ity, some by hand and some
by horse. Thousands of these
mills are said to have been
built. Ground flour sold clan-
destinely fetches exorbitant
prices on the black market. MBN
1942
Masa
Bryant
Putman Hinkle
Flourability n:
Our ability to provide the best combination of service and
product, by specializing in the milling of exceptional our, and by
reacting swiftly, personally and effectively to the needs of our clients.
Wherever you
want to be,
we can take
you there.
Product Spotlight:
Bakers Patent
Flours
All Purpose Hotel,
Restaurant Flours
Bakers Patent Flours
High Gluten Flours
Whole Wheat Flours
Pastry and Cookie Flours
Pizza Flours
Tortilla Flours
Cake Flours
Family Flours
Standard hard wheat
our excellent for use
in many applications.
Acceptable tolerance
with medium mix
requirements.
2001 Shawnee Mission Parkway, Mission Woods, Kansas 66205
913-890-6300 www.cerealfood.com
Its why our customers keep coming back.
In the whole grain sector alone, Bunge Milling has
introduced a number of products to help our customers
meet growing consumer demand. New products are in
development to ensure that when consumers ask, youll
have the competitive edge.
At Bunge Milling, we never forget how much we
appreciate your business.
THE SHORTEST DISTANCE FROM HARVEST TO MARKET.
Its not enough to keep
up with the competition.
We help you stay
ahead of the curve.
Saint Louis, Missouri 314-292-2000 www.bungenorthamerica.com

Milling & Baking News - 2012-01-24

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Milling & Baking News - 2012-01-24

Uploaded by

Copyright:

Available Formats

THE NEWS WEEKLY OF GRAIN-BASED FOODS

Archer Daniels Midland Co. ..26

bakingbusiness.com / world-grain.com Milling & Baking News January 24, 2012 / 7

Late News WEEK OF JANUARY 24

Ralcorp board approves plan to

Hostess gets go-ahead for DIP nancing;

Brian J. Driscoll, president and chief executive ofcer

20 / January 24, 2012 Milling & Baking News bakingbusiness.com / world-grain.com

Review nds no health risk with

22 / January 24, 2012 Milling & Baking News bakingbusiness.com / world-grain.com

General Mills, Inc.

Ralcorp Holdings, Inc.

Wendy Barth named senior v.p. of

retention capacity of the resulting

Bakers Services (IBS) flavorings in the

Bakers Services. Their fla-

bakingbusiness.com / world-grain.com Milling & Baking News January 24, 2012 / 35

bakingbusiness.com / world-grain.com Milling & Baking News January 24, 2012 / 37

bakingbusiness.com / world-grain.com Milling & Baking News January 24, 2012 / 39

THE NEWS WEEKLY OF GRAIN-BASED FOODS

(This index is provided as an additional service to readers. The publisher does

4800 Main St., Suite 100.

You might also like

Milling &amp; Baking News - 2012-01-24

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Milling &amp; Baking News - 2012-01-24

Uploaded by

Copyright:

Available Formats

THE NEWS WEEKLY OF GRAIN-BASED FOODS

Archer Daniels Midland Co. ..26

bakingbusiness.com / world-grain.com Milling & Baking News January 24, 2012 / 7

Late News WEEK OF JANUARY 24

Ralcorp board approves plan to

Hostess gets go-ahead for DIP nancing;

Brian J. Driscoll, president and chief executive ofcer

20 / January 24, 2012 Milling & Baking News bakingbusiness.com / world-grain.com

Review nds no health risk with

22 / January 24, 2012 Milling & Baking News bakingbusiness.com / world-grain.com

General Mills, Inc.

Ralcorp Holdings, Inc.

Wendy Barth named senior v.p. of

retention capacity of the resulting

Bakers Services (IBS) flavorings in the

Bakers Services. Their fla-

bakingbusiness.com / world-grain.com Milling & Baking News January 24, 2012 / 35

bakingbusiness.com / world-grain.com Milling & Baking News January 24, 2012 / 37

bakingbusiness.com / world-grain.com Milling & Baking News January 24, 2012 / 39

THE NEWS WEEKLY OF GRAIN-BASED FOODS

(This index is provided as an additional service to readers. The publisher does

4800 Main St., Suite 100.

You might also like

Milling & Baking News - 2012-01-24

Milling & Baking News - 2012-01-24