Milling & Baking News - 2012-01-10

THE NEWS WEEKLY OF GRAIN-BASED FOODS
bakingbusiness.com / foodbusinessnews.net
JANUARY 10, 2012
LATE NEWS
Continued on Page 21
CEDAR RAPIDS, IOWA Cargill
said it will invest approximately $20
million this summer to modernize
its soybean crushing plant on the
east side of Cedar Rapids. The
company said it may invest up to an
additional $40 million in the facility
over the next several years if needed.
Along with the announcement,
Cargill said industry overcapacity
in soymeal production is prompting
the company to close its Des Moines,
Iowa, crush plant on Feb. 4. Cargill
indicated it will continue some
business activities at the Des Moines
site, and it will continue to purchase
Cargill investing in
Iowa soybean plant
Ending at record high, grain-based
shares beat broader market in 11
NEW YORK Shares of grain-based
foods companies scored solid advances
in 2011, with gains easily outpacing
major market indices. The Grain-Based
Foods Share Index closed at the highest
year-end level ever, 12154.32, up 7.5%
for the year.
The 7.5% advance compared with a
5.5% gain for the Dow Jones average
of industrial shares, which ended at
12,217.56. The S.&P.500 ended the year at
1,257.60, three one-thousandths of a per
cent beneath the 2010 close. The NASDAQ
exchange performed still worse, closing
with a decline of 1.8%, at 2,605.15.
While ending at an all-time high, the
2011 performance of the Grain-Based
Foods Share Index was less impressive
by a number of other measures. The
7.5% gain was the worst showing in
three years, eclipsed by the 9% advance
by the index in 2010 and the 13.2%
jump in 2009. The advance fell short
of the 10.5% jump in the Consumer
Staples sector shares within the
S.&P.500, meaning grain-based foods
DONUT UPDATE
Investing dollars
for donuts
Story on Page 33
Public offering of Dunkin
Brands highlights successful year
for donut chains
Continued on Page 8
Hard winter wheat does well
through winters early days
Marking nine
decades in
partnership with
grain-based foods
STOCK MARKET REVIEW
cover affected wheat condition ratings
in South Dakota and Montana.
At the end of December Kansas wheat
condition was rated 53% good to excellent
(47% a month earlier), 38% fair and 9%
poor to very poor.
Above average temperatures and
benecial moisture in most areas helped to
see the winter wheat through December,
said Kansas Agricultural Statistics.
Most areas of Kansas received moisture
during December with 34 of the 52
KANSAS CITY The hard winter
wheat crop fared well in December
in most states. Hard winter wheat
condition ratings in Kansas and
Oklahoma at the end of December
improved from a month earlier while
winter wheat ratings across Texas
and Nebraska were mostly stable
and northern Plains wheat condition
slipped. The grip of drought across
the southern Plains was loosening, but
much more moisture was needed. Drier-
than-normal weather and a lack of snow
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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
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4 / January 10, 2012 Milling & Baking News bakingbusiness.com / world-grain.com
Ending at record high,
grain-based shares beat
broader market in 11
Story on Page 21
Contents January 10, 2012 Vol. 90, No. 23
ADM in joint venture
to operate elevator
ADM-Benson Quinn and United Farmers Coop
form a joint venture, United Grain Systems,
L.L.C., that will build and operate a grain
elevator in Brownton, Minn.
After MF Global collapse,
hearing looks at safeguards
The chief executive offcer of R.J. OBrien &
Associates says confdence in the commodity
markets system must be restored after the MF
Global bankruptcy.
Milling operating rates
mostly hold steady
Flour milling capacity utilization data from
the North American Millers Association mostly
are consistent from fgures based on the Census
Bureau.
Rich Products unveils new
governance structure
Rich Products Corp. will transition to one
organization consisting of fve regional units:
U.S./Canada, Asia/Pacifc, Latin America,
Europe/Middle East and South Africa.
Good grains to be
bakerys top 2012 trend
Good grains, including ancient grains, will be
the leading driver of innovation in the bakery
sector in 2012, according to New Nutrition
Business.
Welcome start to
2012 in nding
about calories role
NEWS Comment
7 Editorial
10 Business
13, 32 People
14 Washington
18 Data
34 Industry Activities
36 Nutrition and Health
37 Ingredient Week Trends
45 Supplier Innovations
50 Archive
12
14
18
32
36
DEPARTMENTS
ADM-Benson Quinn ..................................12

Agrium Inc.................................................28
Ahold ........................................................28
Alexandria Flour ........................................30
Archer Daniels Midland Co. .......................24
Arla Food Ingredients Groups P/S .............45
Aryzta A.G. ................................................28
Associated British Foods ...........................26
Barry Callebaut .........................................45
BASF Corp. ................................................45
Batory Foods Inc. .......................................12
Brenntag Specialties, Inc. ..........................45
Bunge Ltd. .................................................24
Cargill ............................................. 1, 28, 34
Carrs Milling Industries P.L.C. ...................26
ConAgra Foods, Inc. ..................................21
Corn Products International, Inc. ...............24
Dakota Specialty Milling, Inc. ....................13
DecoPac, Inc. .............................................13
Dunkin Brands Group, Inc................... 21, 33
It would have been a wonderful start to
the New Year to have recognized nutrition
professionals say eating grain-based foods
is the way to control weight and prevent
obesity. Alas, that did not happen, nor was
it expected. Instead, new ndings were
published in the Journal of the American
Medical Association that, while not
embracing this dream of millers and bakers,
come close to providing the factual basis
for dismissing all the wild eating regimens
that are advocated to lose weight. This new
study declares in no uncertain language
and with measured data the exclusive
role of calories, no matter their source, in
controlling weight.
No sector of the food industry has the
potential of beneting from these ndings
more than grain-based foods. After all, it
is this industry that experienced slippages
in consumption attributed to dietary fads
focused on limited intake of carbohydrates.
More recently, the industry endured dietary
recommendations that specically blame
the obesity epidemic on bread and similar
grain-based foods, attacking whole wheat.
The new study underscores that it is
calories, not protein levels or anything else,
that cause people to accumulate fat. It is
the only controlled study that measured
the effect of differences in protein intake on
people engaged in overeating. Conducted
under rigorous experimental conditions that
eliminate any challenge of the ndings, the
conclusion about the primary role of calories
should be shouted from the housetops by
grain-based foods. MBN
COMPANIES IN THIS ISSUE
East Delta Flour Co. ...................................30
Ebro Puleva S.A. ........................................30
Egyptian Starch .........................................30
Finsbury Food Group P.L.C. ........................26
First Baking ...............................................28
Flour Mills of Nigeria P.L.C. .......................30
Flowers Foods, Inc. .............................. 21, 33
Foresight Commodities Services, Inc. .........32
GasLamp Popcorn .....................................12
General Mills, Inc. .....................................22
GrainCorp Ltd. ...........................................28
Greencore Group P.L.C. .............................26
Greggs P.L.C. .............................................26
Groupe Danone S.A. ..................................28
Grupo Bimbo S.A.B. de C.V. ................... 8, 21
Hain Celestial Group Inc. ...........................21
Horn Co. ....................................................45
Hostess Brands, Inc. ..................................33
Indofood ...................................................28
J.M. Smucker Co. .......................................22
Investing dollars
for donuts
Public offering of Dunkin Brands
highlights successful year for
donut chains
Story on Page 33
Kerry Group ...............................................28
Kraft Foods Inc. .........................................22
Krispy Kreme Doughnuts, Inc............... 24, 33
Mac & Massey, L.L.C. ................................12
Marks & Spencer .......................................26
McGlynn Bakeries .....................................13
MF Global .................................................14
MGP Ingredients, Inc. ................................24
Middle and West Delta Flour Co. ...............30
Middle Egypt Flour ....................................30
Molinos Rio Plata ......................................30
Nestle S.A. ............................................. 8, 28
Nippon Flour Mills Co. Ltd. ........................28
Nisshin Milling ..........................................28
Nisshin Seifun ...........................................28
Nissin Foods Holdings ...............................28
North Cairo Flour ......................................30
Origin Enterprises ......................................28
Panera Bread Co. .......................................21
Peerless Group ..........................................45
Premier Foods ...........................................26
Quinenco ...................................................30
R.J. OBrien & Associates ...........................14
Ralcorp Holdings, Inc. ................................21
Rich Products Corp. ...................................32
Rudolph Foods ..........................................12
Sainsbury, P.L.C. .........................................26
Sara Lee Corp. ...........................................22
South Cairo & Giza Flour Mills ..................30
Swany White Flour Mills ............................12
Tasty Baking Co. .................................. 21, 33
Tate & Lyle P.L.C. .......................................26
Tesco .........................................................26
The Andersons, Inc. ...................................13
Tiger Brands Ltd. .......................................28
Unilever.....................................................28
United Farmers Coop ................................12
United Grain Systems, L.L.C.......................12
Upper Egypt Flour .....................................30
Van Drunen Farms .....................................45
STOCK MARKET REVIEW
*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
2011 Archer Daniels Midland Company
With more production facilities than any other supplier,
ADM Milling works for you.
Its simple, really. You want the right product delivered to the right place at the
right time. Thats how ADM works for you. As one of North Americas leading
millers, we not only have more production facilities than any other supplier, we
also have one of the industrys largest logistics and transportation networks.
And its all backed by a team of committed professionals working tirelessly on
your behalf. That means an uninterrupted supply. No surprises. Well deliver on
our promise, so you can deliver on yours.
To learn more about how ADM Milling will work 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
Nine decades strong in pledge to grain-based foods
N
ote is proudly made that 2012 marks the 90th
year of Milling & Baking News. Published
weekly now in alternation with Food Business
News, this magazine had its start in March 1922 with
the frst issue of what was then The Southwestern Miller.
The never-missed commitment, through the amazing
and, yes, wonderful history of the past nine decades
to maintain a weekly publishing schedule is nearly
without parallel in global magazine publishing. It is
defnitely unique in business-to-business publishing.
Fewer than six publications in total around the world
have been published weekly for this span of time. Thus
do we count special our publication of nearly 5,000
separate issues, counting both weekly and specials.
Founded by members of the Sosland family and still
owned and managed by that same family, the maga-
zine owes its longevity to the way a hard-working
staff found and has continued to cultivate common
ground with the people at every level of grain-based
foods. Choosing that indus-
try as the one the magazine
born in 1922 would serve is
acknowledged as a fortu-
itous act that has been built
upon in numerous itera-
tions. Even as Milling & Baking News has earned a po-
sition of eminence, not just for its age but mainly for
its quality in reporting and commenting, the owners
have branched out to establish and build other maga-
zines that focus on other important aspects of the food
industry, in America and around the world.
This page in this issue each year has been devoted
to a Publishers Report on how the magazine and its
publishing company fared in the past year and what
is in prospect for the year ahead. Marking the 90th
anniversary will certainly receive great attention in
the year ahead, including special issues as well as
many other activities aimed at helping our readers
and our advertisers achieve signifcant progress co-
incident with celebrating nine decades of publishing.
These observances and celebrations will include all
the magazines, e-newsletters, other electronic publi-
cations and video productions, plus services built on
new technology. The magazine roster now includes
Milling & Baking News, Food Business News, World
Grain, Baking & Snack, Bake, Meat & Poultry, InStore,
and Biofuels Business.
If theres any key to our success, and there are no se-
crets in a company that has been active for so long a time,
it is that every activity planned is frst considered in light
of how it will help the industry in total and individual
companies and executives make progress. This focus
goes beyond efforts to sell more hundredweights of four
and more loaves of bread in order to examine the best
course for grain-based foods and its companies to follow
in a world where change is occurring at speeds accelerat-
ing with each passing moment. The one central goal of
this publishing enterprise is to provide assistance and
guidance to the people and companies who look to us as
a force that is single-mindedly focused on the industrys
success. No development, not even the wildly gyrating
ingredient markets, not the awful conficts between the
administration and Congress,
not rising food safety concerns,
have prompted even consider-
ation of a shift in direction.
No industries are more af-
fected by the world around
them, particularly matters like the state of the economy,
employment levels, foreign trade, national debt and poli-
tics, than publishing and grain-based foods. Thus, each
has felt the pain of the economic setbacks that began in
2008 and have persisted into the present era. Based on
stock market performance and earnings, grain-based
foods has done better than most other industries and has
even performed well among sectors of the food industry.
By well thought-out operating strategies and product and
service innovations, the industry has succeeded when
many other businesses faltered and even failed.
This publishing enterprise also did well in the face
of the dismal economy and in grappling with the real
revolution under way in publishing as represented
by the battle between print media and the Internet.
Distribution and sustainability issues that are central
to the matters facing grain-based foods executives
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 10, 2012 / 7

As nine decades in publishing are
noted in these pages in 2012, this
magazines and its publishing companys
commitment to the people and
industries it serves will only strengthen.
years. The sale will take place the
fourth week of January and will
be managed by units of HSBC
P.L.C., Group Financiero Inbursa
SAB and ING Groep. Separately,
Bloomberg said Bimbo will meet
with bond investors in Europe
and the United States from Jan.
9 through 16 and may sell dollar-
denominated bonds after the
meetings.
WASHINGTON The U.S.
Commodity Futures Trading
Commission last week voted
to reject a request from the Se-
curities Industry and Financial
Markets Association and the
International Swaps and De-
rivatives Association to delay
implementation of position-limit
rules aimed at preventing exces-
sive speculation in commodity
markets. The 3-2 vote to reject
the request was the same mar-
gin by which the C.F.T.C. ap-
proved the plan in October. The
two trade groups in part claimed
the rules were not necessary and
may actually harm the industry.
The trade groups in December
sought to block the new rules
in a lawsuit against the C.F.T.C.,
which last week asked a federal
appeals court to dismiss the case.
The C.F.T.C. plans to phase in the
new position limits during 2012.
VEVEY, SWITZERLAND
Nestle S.A. has announced the
opening of a factory in western
Turkey that has an annual
production capacity of 15,000
tonnes of breakfast cereal.
Cereal Partners Worldwide, a
joint venture between Nestle
and General Mills, Inc., owns
the facility and will operate it.
About 85 million Turkish Lira
($45 million) was invested in
the construction of the plant.
Located in Turkeys Karacabey
region, it will produce breakfast
cereal for the Turkish market as
well as for 14 other countries in
the Middle East and Africa. MBN
soybeans at its Des Moines
elevator. The company also
will continue to operate
its vegetable oil refnery
and produce specialty feed
products at the Des Moines
facility. A total of 22 jobs will be
eliminated by the Des Moines
closing.
RIDGWAY, COLO. The
Grain Foods Foundation is
partnering this month with
the Spina Bifda Association
as part of National Birth
Defects Prevention Month. The
groups will remind women
of child-bearing age of the
importance of folic acid in the
prevention of neural tube birth
defects. The G.F.F. is taking a
number of steps as part of its
partnership, beginning with
the development of an on-line
course on folic acid through
the S.B.A.s SB University, a
self-paced on-line educational
program. The G.F.F. also will be
promoting its message through
proactive medial outreach.
Finally, a television public
service announcement created
four years ago and promoting
the benefts of enriched grains,
will be re-released with the
Spina Bifda Association logo.
MEXICO CITY Grupo Bimbo
S.A.B. de C.V. is planning to sell
bonds valued at more than half
a billion dollars, Bloomberg said
Jan. 4, citing a fling with the
Mexican Stock Exchange. Bloom-
berg said the sale, valued at up
to 7.5 billion pesos ($547 mil-
lion), is planned in two tranches
of fxed and foating-rate securi-
ties, maturing in fve and seven
C.F.T.C. wont delay
position limits
Bimbo to sell bonds,
hold meetings
Late News WEEK OF JANUARY 10

sales@mennel.com
www.mennel.com
Egypts grain-buying
agency bought 240,000
tonnes of milling wheat
for shipment March
11-20. U.S. soft red
winter wheat was
offered in the tender,
but Egypt turned to
Russia, Ukraine and
France for supply. Egypt
has purchased only
189,000 tonnes of soft
red winter to date this
marketing year.
G.F.F. launches Spina Bida
Foundation partnership
Nestle opens breakfast
cereal facility in Turkey
Continued from Page 1
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Editorial
have equal weight in publishing, particularly that part de-
pendent on a viable postal service. In contrast to what is
widely reported about slippages in readership and adver-
tising for magazines and newspapers generally, this com-
panys total subscriber numbers to our print magazines as
well as advertising in the same held remarkably steady in
2011. At the same time, signifcant gains were achieved in
on-line subscriber numbers and advertising volume.
Several publishing records merit attention. Subscrib-
er numbers across all publications and on-line editions
reached 280,000, while our 17 e-newsletters alone drew
368,000 registrants receiving a total of 31 million e-letters.
Major growth occurred in custom publishing, for both in-
dividual companies and organizations. Webinars, offering
programs via the Internet on a range of matters from new
products to technology, drew increasing numbers of these
inter-active programs. Videos that introduce marketing and
production ideas, as well as ingredient and product ad-
vances, are being produced at a growing rate for a range of
advertisers. The annual Purchasing Seminar, which marked
its 35th anniversary, drew a record 710 registrants to Kansas
City from an increasingly broad range of food companies,
in both America and other lands.
As nine decades in publishing are noted in these pages
in 2012, this magazines and its publishing companys com-
mitment to the people and industries it serves will only
strengthen. As publishers who have been in the forefront of
adapting to revolutionary changes in publishing technol-
ogy, we promise to deliver news and comment in a manner
you, our readers, prefer and want. This pledge refects our
confdence in the future of grain-based foods, a future with
which we have joyfully marched together in all of the past
90 years. MBN
Hard winter wheat does well
through winters rst month
Business
stations reporting more than 2 inches
of precipitation. The lightest amounts
were measured in the northwest.
Snow fell during the rst and third
weeks of December across western
Kansas with snow
depths of more than a
foot at some locations in
the states west central
district.
Kansas topsoil moisture
improved to 76% ad-
equate to surplus (56% a
month earlier) and 24%
short to very short with
the southwest district
still very dry with
64% reported in short
to very short for topsoil
moisture.
Oklahoma wheat
condition was 63%
good to excellent
(56% at the end of November), 30%
fair and 7% poor to very poor. The
U.S. Department of Agricultures
Oklahoma feld offce said, Several
precipitation events throughout the
month have improved conditions
for small grains in the ground,
but more moisture is needed to
recover from the long drought.
The offce noted as of the Dec. 27
drought monitor, 85% of the state
remained in a drought and much of
western Oklahoma remained in an
extreme to exceptional drought.
Texas wheat condition at the start
of the new year was rated 25% good
to excellent (25% a month earlier),
37% fair and 38% poor to very poor.
The area gripped by exceptional
drought was receding with topsoil
moisture improving, but subsoil
moisture remained drastically short.
The U.S.D.A. Texas feld offce
said, In northern areas of the state,
dry land winter wheat progressed
well due to recent moisture in
areas of the Northern High Plains.
Winter wheat in areas of the Cross
Timbers progressed well due to
warmer temperatures. Emerging
winter wheat and oats slowed due
to a recent cold front in areas of the
Blacklands. Winter wheat and oats
progressed well in areas of South
Texas due to timely rain showers and
replenished soil moisture.
Nebraska wheat condition was
rated 74% good to excellent (74% a
month earlier), 25% fair and 1% poor
with the U.S.D.A. feld offce in that
state noting weather conditions were
relatively mild and dry compared
with December 2010.
South Dakota wheat
condition was rated 41%
good to excellent (63% a
month earlier), 47% fair
and 12% poor to very
poor. The U.S.D.A.s South
Dakota eld ofce said,
Producers across the state
were concerned about the
lack of snow cover for the
winter wheat and alfalfa.
Mild temperatures were
also a concern for the
winter wheat.
Montana wheat con-
dition at the end of
December was rated
30% good to excellent (37% a month
earlier), 61% fair and 9% poor to
very poor. The U.S.D.A. eld ofce
in the state said, Much of Montana
experienced dry, windy conditions
during the month of December with
low temperatures dipping below
zero and average low temperatures
in the upper 20s to lower 30s at most
reporting stations. The offce said
the decline in the condition rating
took into consideration the lack of
snow cover. MBN
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Business
ADM-Benson Quinn and United
Farmers Coop form joint venture
DECATUR, ILL. ADM-Benson
Quinn and United Farmers Coop
(U.F.C.) have formed United Grain
Systems, L.L.C., a joint venture that
will build and operate a grain elevator
in Brownton, Minn. The new elevator
will have a total storage capacity of 3.6
million bus, will be capable of loading
110-car shuttle trains, will feature
four receiving pits with the capability
to dump 80,000 bus of grain per hour,
and will be located on a Twin Cities
& Western rail line that has service
from three railroads: Burlington
Northern Santa Fe, Canadian Pacifc
and Union Pacifc, ADM said.
In addition to the Brownton
elevator, the joint venture will operate
fve existing U.F.C. elevators in
Minnesota at Bird Island, Klossner,
Lafayette, LeSueur (south elevator)
and Winthrop. The elevators primarily
handle corn and soybeans.
ADM-Benson Quinn is pleased
to join with United Farmers Coop
to build a new shuttle loader
elevator in Minnesota, said Scott
Nagel, president of ADM-Benson
Quinn. This project will expand
crop origination and transportation
infrastructure in Minnesota, opening
new markets for local farmers to sell
their products at competitive prices.
Jeff Nielsen, chief executive offcer
of U.F.C., said the joint venture is a
further extension of U.F.C.s mission
to create more and better business
opportunities that add value to the
grain produced by our members and
patrons on their farms.
He said the joint venture also
illustrates the companys belief that
agricultural cooperatives sometimes
must join together with large
agriculture companies like ADM to
create partnerships that amass the
necessary capital and expertise to
create these new opportunities for our
members and patrons. MBN
Batory Foods acquires Atlanta-based
ingredient distributor for $90 million
DES PLAINES, ILL. Batory Foods Inc.,
a national distributor of food and fne
ingredients, has acquired Atlanta-based
ingredient broker/distributor Mac &
Massey, L.L.C. Mac & Massey is the $90
million holding company for Massey
Fair, Mac Source and Mulligan Sales. The
acquisition marks the largest in Batory
Foods 33-year history.
By merging Mac & Massey with Batory
Foods, we have signifcantly expanded
the sales and distribution coverage we
can provide our suppliers, said Ron
Friedman, vice-president of Batory Foods
Inc. With added distribution centers
around the United States, Batory becomes
the only national ingredient distribution
company that focuses entirely on food
and fne ingredients.
Randy Cimorelli, president
and chief executive offcer
of Mac & Massey, called the
transaction a plug and
play scenario.
Both companies
have been on a strategic
path toward expansion and vertical
integration, Mr. Cimorelli said. Joining
forces allows us to leverage our individual
strengths as well as the cultural values
we share. Its cross-pollination at its best.
The two companies management
teams will be integrated over the next
12 months. Brown Gibbons Lang &
Company acted as the exclusive fnancial
adviser to Batory Foods in the transaction.
Founded in 1979, Batory Foods has
a network of distribution facilities that
serves more than 6,000 customers,
spanning the full food industry
spectrum.
Established in 1929, Massey
Fair is the largest food ingredient
broker in the United States,
offering a broad line of
food ingredients, including
sweeteners, starches, oils,
cocoa, fruit concentrates and nut meats.
In 2007, Mac & Massey, L.L.C. was formed
as the holding company for Massey Fair
and Mac Source. In 2010, after acquiring
California-based Mulligan Sales, Mac
& Massey, L.L.C. became a leading
ingredient distributor providing services
from coast to coast. MBN
Swany White Flour Mills destroyed by re
FREEPORT, MINN. Swany White
Flour Mills, a small four mill in Freeport
that has been owned by the Thelen
family since 1903, was destroyed by fre
on Dec. 27. Owner Gary Thelen told the
Minneapolis Star Tribune that there are no
plans to rebuild the mill.
If I was a younger man, I might
consider it, but Im 55 and Im sorry to
say that Swany White is going to be over
with, Mr. Thelen told the Star Tribune.
Its just too expensive to rebuild. Im
pretty solid that Im not going to wake up
and reconsider it.
The three-story wooden and brick
structure, listed on the National Register
of Historic Places, was built in 1897 and
had been in the Thelen family since 1903.
The facility had used the same milling
equipment for white four since 1913, and
it had daily milling capacity of 12,000 lbs
(120 cwts).
The mill produced a variety of
items, including regular bleached and
unbleached four, whole wheat four,
wild rice four, buckwheat four, cracked
wheat four, graham four, wheat bran,
wheat germ, steel cut oats, corn meal,
coarse oat bran, nine grain mix, regular
and quick oatmeal, cream of rye, farina,
as well as a variety of organic products.
Fire Chief Noah Van Beck of the
Freeport Fire Department told the Star
Tribune that the mill was operating Dec.
27 when fames were reported bursting
from a top-level enclosure at 4:30 p.m. He
said the fre may be related to machinery
used to mill four at the time, but
cautioned that he was only speculating.
Mr. Thelen was in the mill at the time
of the fre, but he said fames had so
engulfed the upper foor that there was
nothing he could do to save the structure,
according to the Star Tribune. MBN
Rudolph Foods buys
GasLamp Popcorn
LIMA, OHIO Rudolph Foods has
purchased GasLamp Popcorn. The sale
includes the business and a production
facility in California.
Our company founders, John and
Mary Rudolph, believed that if they made
the best tasting pork rinds in the world
they could build a company, said Rich
Rudolph, president. Fifty-six years later
we remain committed to that principle
as we expand our product offerings. We
found that GasLamp Popcorn shares the
same beliefs. MBN
People
Hal Reed promoted at Andersons

to chief operating ofcer
Brian Sorenson to v.p. of manufacturing
at Dakota Specialty Milling
Burton McGlynn, chairman
of DecoPac, dies at 88
MAUMEE, OHIO Harold M. Reed
has been named chief operating
offcer of The Andersons, Inc.,
effective Jan. 1, 2012.
Mr. Reed has been with The
Andersons since 1980, and most
recently he has been president of the
Grain & Ethanol Group since 2001. He
also is the chairman of the National
Grain & Feed Association.
He received a degree in accounting
from Miami University in Ohio and
a masters degree in fnance from the
University of Toledo.
The appointment of a chief operating
offcer helps ensure our organizational
structure is strategically aligned to
support our companys substantial
growth and achieve our future
objectives of enhancing our service to
customers, strengthening our position
in our markets and increasing the value
of our shareholders investment, said
Mike Anderson, chief executive offcer.
This addition enhances and solidifes
our business operating focus as we
grow in size and complexity.
The Andersons also announced it will
separate its Grain and Ethanol operations
into individual business units.
With the transition, Dennis J. Addis
has been named president of the Grain
Group, Neill C. McKinstray has been
named president of the Ethanol Group,
and William J. Wolf has been named
president of the Plant Nutrients Group.
Mr. Addis joined The Andersons
in 1971, and most recently he was
president of the Plant Nutrients Group
since 2001.
Mr. McKinstray has been with The
Andersons since 1976, most recently
as vice-president and general manager
of the Ethanol Division since 2005.
He currently is vice-chairman of the
Renewable Fuels Association.
Mr. Wolf joined The Andersons
in 1994, and most recently he
was vice-president of supply and
manufacturing for the Plant Nutrients
Group since 2008.
Additionally, Anne G. Rex has been
named vice-president and corporate
controller for The Andersons. Ms. Rex
has been with The Andersons since
1994, most recently as the assistant
corporate controller since 2002. MBN
CAPTIVA, FLA. Burton (Burt) J.
McGlynn, chairman of DecoPac, Inc.
and former chairman of McGlynn
Bakeries, died Dec. 23 at his home in
Captiva. He was 88 years old.
McGlynn Bakeries was founded in
Minnesota in 1919 by Burts father,
James T. McGlynn. Burts career began
in the family business, working in his
fathers bakery at age 15 as a cleaner.
He later filled in for bakers when they
were on vacations, drove delivery
trucks on wholesale routes and waited
on customers at the service counter.
During World War II, Mr. McGlynn
attended a school for cooks and
bakers in New Orleans and served as
a baker in the Navy, stationed in the
Philippines.
After the war, Mr. McGlynn returned
to Minnesota to help run his fathers
growing bakery business, which, at
the time, had 11 downtown shops
and several wholesale routes. He
purchased the company from his
father in 1956, and two years later he
sold the business to Emrich Baking
Co., where he stayed on as head of
retail operations. After a few years
with Emrich Baking, Mr. McGlynn
saw an opportunity to open in-store
bakeries in the new Target stores being
developed by Daytons Department
Stores in the Twin Cities. He resigned
from Emrich, acquired his familys
trade name and was in business again
with his first two bakeries in the
Knollwood and Crystal Target stores.
By 1972, there were over 35 Target
Stores with in-store McGlynns Bakery
departments.
The business changed and expanded
greatly over the next few decades,
entering the frozen bakery products
FARGO, N.D. Brian K. Sorenson
has been promoted to vice-president of
manufacturing operations at Dakota
Specialty Milling, Inc. Mr. Sorenson
joined the company in April 2011 as
director of milling operations after nine
years with the Northern Crops Institute,
the last three years as its director.
Mr. Sorenson has more than 20 years of
experience in food product and process
development, both in private industry
and at the Northern Crops Institute in
Fargo, N.D.
He received a masters degree in cereal
chemistry and technology from North
Dakota State University.
Brians experience at NCI, his masters
of science in cereal chemistry from
North Dakota State University, and the
knowledge of our business gained since
April, make him uniquely qualifed to lead
our Fargo operations, said R.C. Axlund,
president of Dakota Specialty Milling.
Mr. Sorenson was a graduate student
at N.D.S.U. when his predecessor, Joel
W. Dick, who retired in December, was
the professor of cereal science and food
technology. MBN
business. That business eventually
was sold in 1992 to Pillsbury. Another
frozen bakery products business,
Concept 2 Bakers, was begun in 1995
and sold in 2004 to Ralcorp Holdings,
Inc. Bakery plants were constructed
in Eden Prairie, Chanhassen and
Fridley, Minn., and at one time
the company employed more than
2,000 people.
The remaining family business,
DecoPac, Inc., is the largest marketer of
cake decorations to professional cake
decorators in the world. DecoPac, Inc.
employs more than 500 people in the
United States and England with annual
revenues of more than $125 million.
Mr. McGlynn attended Dunwoody
Institute and received an honorary
doctorate of philanthropy degree from
St. Marys University.
He is survived by four sons: Mike,
Tim, Dan and Tom; a daughter,
Molly; 16 grandchildren and 10 great-
grandchildren. Mike McGlynn is chief
executive officer of DecoPac. MBN
Washington
In wake of MF Global collapse, nancial
safeguards discussed at ag hearing
WASHINGTON Gerald F.
Corcoran, chairman and chief
executive officer of R.J. OBrien
& Associates (R.J.O.), offered
testimony on behalf of the
Commodity Markets Council
(C.M.C.) and R.J.O. at a U.S.
House Committee on Agriculture
hearing in December regarding
an examination of the MF Global
bankruptcy.
Headquartered in Chicago, R.J.O.
is the nations oldest and largest
independent futures brokerage and
clearing firm. It also is a member of
Washington-based C.M.C., a trade
association that brings together
commodity exchanges with their
industry counterparts.
As part of his testimony, Mr.
Corcoran emphasized that trust
in the system has been severely
impaired and that it is in the best
interest of the industry and its
customers for quick, but thoughtful
action to restore that confidence.
while the investigation
continues into the causes of the
MF Global bankruptcy and the
whereabouts of segregated assets,
I am certain, very certain of this:
we cannot let this event destroy
the long-term trust and confidence
upon which market participants
rely, he said. This is an industry
that is vitally important not only
to the interests of the agricultural
community, but to the world.
Improving the management process
Speaking on behalf of R.J.O. and
C.M.C., Mr. Corcoran provided
suggestions on how best to improve
the industrys customer collateral
management process by ensuring
the adequate maintenance of
customer collateral levels.
While this point does not
directly relate to the MF Global
situation, it is worth considering in
the context of the financial stability
of F.C.M.s (future commission
merchant), he said. Significant
losses by a customer of an F.C.M.
can also result in catastrophic losses
to the F.C.M. itself. An idea we
offer for deliberation is to require
accounts that exceed certain margin
thresholds on an intra-day basis to
fund their account through direct
wire transfer, thereby ensuring
intra-day margin calls are met.
Mr. Corcoran suggested ways
to improve the F.C.M.s net capital
treatment, including evaluating
the double counting of funds
to satisfy capital requirements by
entities dually registered as F.C.M.s
and broker-dealers.
Better monitoring requirements needed
In his testimony, Mr. Corcoran
urged regulators to look at
enhancing monitoring and reporting
requirements with respect to F.C.M.
customer segregation practices. He
noted F.C.M.s already are required
to prepare customer segregation
reports on a daily basis but do not
share them with regulators that
often. To this end, he suggested
regulatory agencies require the
submission of these daily reports
to the Commodity Futures Trading
Commission, the National Futures
Association or other Designated
Self-Regulatory Organization.
During the presentation, Mr.
Corcoran put forth a proposal on
behalf of R.J.O. in which all F.C.M.s
would adopt the same agency
only model as R.J.O.
Although proprietary trading
by F.C.M.s may contribute to the
liquidity of the futures markets,
it should not be at the expense
of customer protection, he said.
Therefore, we at R.J.O. suggest
that those F.C.M.s who want to
conduct proprietary trading utilize
other F.C.M.s or create a separately
capitalized special purpose
F.C.M. for this activity. Doing so
will require the same oversight
afforded to customer accounts,
including proper margining at all
times. Simply put, an F.C.M. that
is restricted from trading for its
own account would not place its
customers at risk due to losses from
proprietary trading.
Providing a home for accounts
Looking specifically at the impact
of MF Globals bankruptcy filing
and default on R.J.O., Mr. Corcoran
said the firm worked closely with
CME Group and other domestic
Washington
exchanges to provide a home for a
substantial number of MF Global
accounts and brokers.
In a matter of a few days, we
assumed a bulk transfer of 20,000
accounts without incident, and our
shareholders provided an infusion
of approximately $50 million of
capital to ensure that we would
be sufficiently capitalized for this
unexpected event, he explained.
At the same time, we worked very
hard to ensure that our long-standing
clients continued to receive the
outstanding service to which they
are accustomed. Our management
and staff worked literally around
the clock for 25 days straight in
a massive effort that involved
coordination of systems, processes
and people, and sometimes
working with incomplete data and
rapidly changing circumstances.
We fully recognized that the
clients of MF Global had just
experienced a traumatic event, and
we did everything we could to
provide vehicles for addressing their
questions and providing reassurances
as soon as we had answers. MBN
A.B.A. voices disappointment
over new Hours of Service rule
WASHINGTON The American
Bakers Association said it was
disappointed in the final Hours of
Service (H.O.S.) rule announced
Dec. 22 by the Federal Motor Carrier
Safety Administration (F.M.C.S.A.).
There is no safety benefit or
documented rationale to change the
existing rules, said Robb MacKie,
president and chief executive officer
of the A.B.A. This rule will require
significant changes to current baking
industry distribution systems that
will affect employee work hours and
increase the cost of transporting and
delivering fresh bakery products.
With high unemployment and
elevated food inflation, now is the
worst time to be pushing regulation
for regulations sake.
The proposed regulations were
published in December 2010, and
since that time the A.B.A. has
been communicating the baking
industrys concerns with the rules.
On Nov. 30, 2011, Mr. MacKie
testified at a hearing to examine the
impact of the H.O.S. rules held by
the Subcommittee on Regulatory
Affairs, Stimulus Oversight and
Government Spending of the House
Committee on Oversight and
Government Reform.
Fourth major rewrite
This marks the fourth major
rewrite of these rules by F.M.C.S.A.
in 12 years, Mr. MacKie said. The
current Hours of Service regulations
have been effective in improving
safety. The safety performance
for trucks has improved at
unprecedented rates. Fatal accidents
and injuries involving large trucks
have declined more than one-third
to historically low levels.
Given these facts, we fnd it
diffcult to understand the rationale
for additional regulation, especially
one that even F.M.C.S.A. recognized
would disproportionately negatively
impact the short-haul segment of
the trucking industry of which the
baking industry is a part.
As part of the H.O.S. rulemaking
process, the F.M.C.S.A. held six
public listening sessions across
the United States and encouraged
safety advocates, drivers, truck
company owners, law enforcement
and the public to share their input
on the requirements.
Trucking is a difficult job, and
a big rig can be deadly when a
driver is tired and overworked,
said Transportation Secretary
Ray LaHood. This final rule will
help prevent fatigue-related truck
crashes and save lives. Truck
drivers deserve a work environment
that allows them to perform their
jobs safely.
Drivers limited to 70 hours
The F.M.C.S.A.s new H.O.S.
final rule reduces by 12 hours the
maximum number of hours a truck
driver may work within a week.
Under the old rule, truck drivers
could work on average up to 82
hours within a seven-day period.
The new H.O.S. final rule limits a
drivers work week to 70 hours.
In addition, truck drivers may
not drive after working eight hours
without first taking a break of at
least 30 minutes. Drivers may take
the 30-minute break whenever they
need rest during the eight-hour
window.
The final rule retains the current
11-hour daily driving limit. The
F.M.C.S.A. will continue to conduct
data analysis and research to further
examine any risks associated with
the 11 hours of driving time.
According to the D.O.T., the rule
requires truck drivers who maximize
their weekly work hours to take at
least two nights rest when their 24-
hour body clock demands sleep the
most from 1:00 a.m. to 5:00 a.m.
This rest requirement is part of the
rules 34-hour restart provision
that allows drivers to restart the
clock on their work week by taking
at least 34 consecutive hours off-
duty. The final rule allows drivers to
use the restart provision only once
during a seven-day period.
Potential for heavy nes
The F.M.C.S.A. said companies
and drivers that commit egregious
violations of the rule may face
the maximum penalties for each
offense. Trucking companies that
allow drivers to exceed the 11-hour
driving limit by 3 or more hours
may be fined $11,000 per offense,
and the drivers themselves may
face civil penalties of up to $2,750
for each offense.
Commercial truck drivers and
companies must comply with the
H.O.S. fnal rule by July 1, 2013. The
rule has been sent to the Federal Register
and is available on the F.M.C.S.A.s
web site at www.fmcsa.dot.gov/
HOSFinalRule. MBN
We nd it difcult to understand the rationale
for additional regulation, especially one that even
F.M.C.S.A. recognized would disproportionately
negatively impact the short-haul segment of the
trucking industry of which the baking industry is a
part.
Robb MacKie, American Bakers Association
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Data
Regional milling operating rates
mostly hold steady in NAMA report
WASHINGTON Despite a
signifcant shuffing by the North
American Millers Association in the
confguration of regions in recently
released four milling data, operating
rate rankings mostly, but not entirely,
were consistent with relative
performances a year ago, when
the information was gathered and
disseminated by the Census Bureau.
As was the case a year ago, mills
in the Central states operated at the
highest rate in July-September 2011,
while the hard winter states and the
South were near or at the bottom. The
only major swing was in the West,
where mills had the second highest
rate of grind in 2010 and ranked dead
last this past quarter.
In undertaking to publish quarterly
statistics on wheat four milling
production in the United States, the
North American Millers Association
has selected state groupings different
from those previously included in
the now-discontinued Census Bureau
reports. NAMA is not reporting
individual state output fgures, and
the state groupings are different from
what the Census adopted.
While the Census Bureau several
years ago adopted a practice of
grouping two or three states into single
units, NAMA took this approach a step
further. The Census move was made to
remain compliant with reporting rules
aimed at protecting individual mills
or milling companies from disclosure
of private information. The NAMA
move, further combining states into
fewer groupings, was made, on advice
of counsel, to add an additional layer
of protection from disclosure.
The resultant report features seven
regional/state groupings, versus the
21 in the fnal Census report. For
example, Region 1 of the NAMA
report was created by combining fve
different Census states/groupings: 1)
Alabama and Louisiana; 2) Georgia,
Florida and South Carolina; 3) North
Carolina; 4) Tennessee and Kentucky;
and 5) Maryland and Virginia (see
related table on this Page ).
NAMAs breakdown of regions
closely parallels the prior effort by
Milling & Baking News to present
geographical data on four milling
production and rate of grind. Where
appropriate the same names now are
being used by Milling & Baking News.
Among changes in the new data, the
hard winter belt no longer includes
Nebraska and Iowa, while the Central
states now omits Missouri. In the new
NAMA breakdown Nebraska and
Iowa as well as Missouri have been
combined with the all other states
category Region 7.
Region 7, which in recent years
was made as small as possible by
the Census, is now NAMAs largest
four producer with third-quarter
output totaling 15,778,000 cwts, which
accounts for 15.7% of the total U.S.
aggregate.
Using the prior Census data
Flour production
NAMA U.S. Census U.S. Census
Region 1: July-Sept. 2011 April-June 2011 July-Sept. 2010
South: Alabama, Florida, Georgia, Kentucky, Louisiana, Maryland, North Carolina, South Carolina, Tennessee, Virginia
Output 15,340 16,787 17,300
Rate of grind 89.7% 85.0% 87.6%
Capacity 222,000 256,609 256,609
Share 15.3% 16.7% 17.2%

Region 2:
Eastern: New Jersey, New York, Pennsylvania
Output 13,276 12,705 13,730
Rate of grind 91.8% 86.1% 93.1%
Capacity 187,750 191,540 191,540
Share 13.2% 12.6% 13.7%

Region 3:
Western: California, Idaho, Montana, Oregon, Utah, Washington

Output 13,823 15,170 16,611
Rate of grind 84.9% 87.7% 97.1%
Capacity 211,550 224,770 222,270
Share 13.7% 15.1% 16.5%

Region 4:
Central: Illinois, Indiana, Michigan, Ohio, Wisconsin
Output 14,613 15,604 16,598
Rate of grind 92.8% 90.7% 97.6%
Capacity 204,600 223,500 220,900
Share 14.5% 15.5% 16.5%

Region 5:
Hard winter: Colorado, Kansas, Oklahoma, Texas
Output 14,815 15,220 16,969
Rate of grind 88.7% 79.0% 85.2%
Capacity 216,900 250,233 258,733
Share 14.7% 15.1% 16.9%

Region 6:
Spring: Minnesota, North Dakota

Output 12,914 12,396 12,807
Rate of grind 90.2% 83.5% 86.3%
Capacity 185,950 192,690 192,690
Share 12.8% 12.3% 12.7%

Region 7:
Remainder: Iowa, Missouri, Nebraska, All Other States
Output 15,778 12,431 14,578
Rate of grind 92.8% 80.9% 91.5%
Capacity 220,720 199,646 206,830
Share 15.7% 12.4% 14.5%

Total
Output 100,559 100,313 108,593
Rate of grind 90.1% 84.7% 91.0%
Capacity 1,449,470 1,538,988 1,549,572
Share 100.0% 100.0% 100.0%

in cwts
Todays consumers are no longer satisfed with highly refned grains,
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Data
it is possible to make
comparisons with earlier
quarters, but differences
in how NAMA and the
Census compiled data
must be considered. In
particular, the Census
sought to gather data from
the entire U.S. milling industry while the NAMA fgures
are specifcally obtained from the 24 leading milling
companies, accounting for roughly 95% of U.S. milling
capacity. The methodology differences make year-to-year
comparisons approximate at best.
After the Census halted its reporting with the second
quarter of this year NAMA retained Veris Consulting,
Inc. to survey the 24 largest U.S. wheat, durum and
rye milling companies on their flour production in the
third quarter of
2011 (July, August,
September). Data
were voluntarily
reported to Veris,
whereas the prior
Census numbers
reflected a govern-
mental mandate.
The capacity share of national capacity of the 24
reporting companies is given as 95.4%. (This was
measured against industry capacity in the Grain and
Milling Annual 2011.) All companies selected by NAMA
responded to the survey. Therefore, total volume
presented is less than 100%. No estimates were made by
NAMA to bring the volume up to 100 %.
The Census Bureau would not disclose to NAMA the
name or number of respondents to their surveys. The
Census did indicate in footnotes accompanying past
reports that some numbers were estimated. Thus, it is
likely, if not a certainty, that the new NAMA data are
not comparable with historical reports.
Third-quarter 2011 wheat flour production as reported
by Veris on behalf of NAMA was 100,561,000 cwts (see
Milling & Baking News of Dec. 27, 2011, Page 18). Milling
& Baking News in its initial coverage divided the NAMA
number by .954 to obtain a quarterly national estimate
and then compared it with existing Census data.
Because the 24 companies account for 95.4% of U.S.
daily milling capacity as shown in the Grain & Milling
Annual and because the missing overall capacity is
small, Milling & Baking News in its initial coverage did
interpolate the national flour production to 105,410,000
cwts. That was down 2.9% from the Census production
of 108,593,000 cwts in the third quarter of 2010.
Similar comparisons may be made on a regional basis.
Analysis by the editors at Milling & Baking News has raised
questions about the comparability of production and
capacity fgures, on a region by region basis. Comparing
capacities of the individual NAMA regions in 2011 with the
combined capacities of the Census groupings making up
the NAMA regions generates signifcant changes meriting
further exploration. For example, the NAMA fgures
indicate Region 1 has combined capacity of 222,000 cwts of
four per day, versus capacity estimated a quarter earlier by
the Census of 256,609. The discrepancy appears quite wide,
even adjusting for the capacity information (from smaller
milling companies) not gathered by NAMA. MBN
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Stock Market Review
Ending at record high, grain-based

shares beat broader market in 11
shares overall did not fare as well
in 2011 as stocks of other consumer
products companies.
Still, the 7.5% gain bested most of
the other individual sectors of the
S.&P.500, including energy, up 2.8%;
materials, down 11.6%; industrials,
down 2.9%; consumer discretionary,
up 4.4%; nancials, down 18.4%;
information technology, up 1.3%; and
telecom services, up 0.8%. Sectors
that outperformed grain-based foods
shares were health care, up 10.2%, and
utilities, up 14.8%.
Back to the plus side, 14 of the 24
companies in the Grain-Based Foods
Share Index ended the year with a
gain, with 10 losing ground.
Two companies, both baking, had
stock splits in 2011. Flowers Foods,
Inc., Thomasville, Ga., issued a 3-for-
2 stock dividend in June, while Grupo
Bimbo S.A.B. de C.V. (which is not
included in the index) shares split
4-for-1 in April.
One company was added to the
grain-based index Dunkin Brands
Group, Inc., Canton, Mass., which rose
29% following a July 26 initial public
offering at $19 per share. Dunkin shares
quickly surged as high as
$31.94 per share, but have
been gradually sliding
since then. In November,
additional shares were sold
in a secondary offering
from existing investors (not
the company) at $25.62 per
share.
One company, Tasty
Baking Co., was deleted
from the Grain-Based
Foods Share Index in
2011, after its acquisition
by Flowers Foods, Inc.
Tasty had been included
since the index and its
predecessor indices were
created by Milling & Baking
News several decades ago.
The top performer in
the index in 2011 was a
familiar name Panera
Bread Co., St. Louis, up
40%. The sharp gain
followed a 51% advance in
2010, when the company
ranked fourth. Gains were
28% in 2009 and 46% in
2008. Over the rst nine months of
2011, the St. Louis-based company
enjoyed a 19% gain in total revenues
and a 34% jump in earnings per share.
Growth in the number of bakery cafes
in recent years has been moderate. As
of September 2011, there were 1,504
Panera bakery cafes in operation, up
from 1,026 in December 2006.
Ranking second in share price
performance in the index was The
Hain Celestial Group Inc., up 35%
in 2011. The sharp advance followed
a 59% gain in 2010, when Melville,
N.Y.-based Hain again was the
second best performer. By contrast,
Hain was the worst performing
stock in the Grain-Based Foods Share
Index in 2009.
Hain made four acquisitions last
year. In February, the company
said it had acquired two companies
in Europe Danival SAS, a
manufacturer of certied organic food
products with facilities in France, and
GG UniqueFiber AS, a manufacturer
of all natural high ber crackers in
Norway. In October, Hain announced
the acquisition of the Europes Best
brand of all natural, frozen fruit and
vegetable products in Canada. Later
that same month, Hain bought Daniels
Group in the United Kingdom, a
maker of chilled foods.
The company attributed strong
nancial results in 2011 to improving
consumption trends in the natural and
organic sectors served by Hain as well
as better cost controls and inventory
management and cash conversion.
The share price of Ralcorp Holdings,
Inc., St. Louis, moved wildly
through 2011, mirroring
major developments at
the company. That the
company would be the
third best performer in
the Grain-Based Foods
Share Index, with a 32%
gain, seemed unlikely at
various points during the
year. Shares were drifting
along through the rst four
months of 2011 within a
range that had prevailed
much of the previous ve
years. Everything changed
May 4 when Omaha-
based ConAgra Foods, Inc.
offered to acquire Ralcorp
in a $4.9 billion transaction.
Ralcorp shares surged to
an all-time high, but share
prices tumbled when the
company repeatedly, and
ultimately with success,
spurned the ConAgra bid.
During the summer, Ralcorp
management announced plans
to spin off the Post cereal
Year-end close for
Grain-Based Foods Share
Index with change from
previous year, 2000-2011
Point Per cent
Year Close change change
2011 12154.32 846 7.5%
2010 11307.96 958 9.3%
2009 10350.06 1,203 13.2%
2008 9146.77 -2,511 -21.5%
2007 11657.58 115 1.0%
2006 11542.79 1,856 19.2%
2005 9687.18 -1165 -10.7%
2004 10852.64 1,390 14.7%
2003 9,462.92 -487 -4.9%
2002 9,918.02 287 3.0%
2001 9,662.41 336 3.6%
2000 9,326.84 2,444 35.5%
Grain-Based Foods Share Index
performance in 2011
High Low Close Change % change
ADM 38.02 23.69 28.60 -$1.48 -4.9%
Bridgford 13.92 6.80 9.60 -$4.65 -32.6%
Bunge 76.13 54.03 57.20 -$8.32 -12.7%
Campbell Soup 35.66 29.69 33.24 -$1.51 -4.3%
ConAgra 26.72 22.20 26.40 $3.82 16.9%
Corn Products 59.50 36.65 52.59 $6.59 14.3%
Dunkin Brands 31.94 23.24 24.98 NA NA
Flowers Foods (s) 23.13 15.95 18.98 -$0.02 5.8%
General Mills 40.80 34.54 40.41 $22.47 13.5%
Hain Celestial 38.47 25.59 36.66 $1.07 35.5%
J & J Snack 55.58 41.91 53.28 $26.22 8.1%
Kellogg 57.70 48.10 50.57 $1.30 -1.0%
Kraft Foods 38.05 30.21 37.36 -$13.72 18.6%
Krispy Kreme 10.08 5.10 6.54 -$24.97 -6.3%
Lance 24.09 17.06 22.50 $15.52 -4.0%
MGP Ingredients 10.89 4.25 5.04 -$18.40 -54.6%
Panera Bread Co. 145.46 94.62 141.45 $130.34 39.8%
PepsiCo 71.89 58.50 66.35 -$34.86 1.6%
Ralcorp Holdings 91.35 59.23 85.50 $20.17 31.5%
J.M. Smucker 80.25 61.16 78.17 $13.16 19.1%
Sara Lee 20.26 15.66 18.92 -$46.73 8.1%
Seaboard 2705.00 1650.00 2036.00 $45.00 2.3%
s = stock split during year
Stock Market Review
business the company had acquired
only three years earlier. Additionally,
Ralcorp announced it had reached
an agreement to acquire the private
label refrigerated dough business
of Downers Grove, Ill.-based Sara
Lee Corp. for $545 million. Shares
recovered gradually but steadily from
the August lows, gaining 24% by the
end of 2011, at a closing price just 6%
beneath the all-time high.
With a gain of 19% in 2011, the share
price of Kraft Foods, Inc., Northeld,
Ill., advanced solidly for a second
consecutive year, following a 16%
gain in 2010. The back-to-back gains
mark the most impressive share price
performance since the companys
initial public offering in 2001. Adjusted
for dividends, the Kraft share price
has climbed 48% since the end of June
2006, when Irene Rosenfeld returned
to the company as chief executive
ofcer. The S.&P.500 is up 10% over
this same period of time.
Ms. Rosenfelds imprint on the
company and the entire food industry
has become dramatically more evident
over the past two years. In 2010, Kraft
completed a $20 billion acquisition of
Cadbury P.L.C., sharply expanding
Krafts exposure to the snack sector
and international markets. That mega-
takeover receded from the spotlight
in 2011 with Krafts announcement
of plans to split into two publicly-
traded companies, with one focusing
on its global snacks business
and the other on its high-margin
North American grocery business.
Late in the year Kraft announced
leadership of the future companies,
expected to separate by the end of
2012. Ms. Rosenfeld will be chairman
and c.e.o. of the $31 billion global
snacks company. W. Anthony Vernon,
who is currently the executive vice-
president and president of Kraft Foods
North America, will be c.e.o. of the
$17 billion North American grocery
company.
Even as the company advanced in
these transformational moves, Krafts
operating results were solid in 2011. In
the third quarter ended Sept. 30, 2011,
net income climbed to $922 million,
up 22% from the same period in 2010.
Sales rose 12% in total with organic net
revenues up 8%.
Also ranking fourth in share price
performance in 2011 was The J.M.
Smucker Co., Orrville, Ohio. The 19%
share price advance followed a gain of
only 6% the year before. Grain-based
foods did not gure in Smuckers
merger and acquisition activities last
year. In May, the company acquired
a number of Hispanic coffee brands
from Rowland Coffee Roasters, and
in November the company bought a
majority stake in the Sara Lee Corp.
North American food service coffee
business. In the most recent quarter
(ended Oct. 31), U.S. Retail Coffee was
Smuckers largest division, with $617.5
million in sales, versus $615.2 million
for U.S. Retail Consumer Foods. A
year earlier, the latter category was
14% larger than the coffee business.
While share prices of ConAgra
Foods, Inc. rose 17% in 2011, the
companys year certainly did not un-
fold as planned. Three acquisitions were
Weekly close for Grain-Based Foods Share Index, Dow Jones
Industrial Average and NASDAQ Composite in 2011
3-Jan-11 11674.76 2703.17 11388.02
10-Jan-11 11787.38 2755.3 11530.07
18-Jan-11 11871.84 2689.54 11469.49
24-Jan-11 11823.7 2686.89 11291.5
31-Jan-11 12092.15 2769.3 11266.05
7-Feb-11 12273.26 2809.44 11270.27
14-Feb-11 12391.25 2833.95 11510.67
22-Feb-11 12130.45 2781.05 11397.83
28-Feb-11 12169.88 2784.67 11523.69
7-Mar-11 12044.4 2715.61 11486.78
14-Mar-11 11858.52 2643.67 11241.72
21-Mar-11 12220.59 2743.06 11504.16
28-Mar-11 12376.72 2789.6 11570.01
4-Apr-11 12380.05 2780.42 11709.36
11-Apr-11 12341.83 2764.65 11860.24
18-Apr-11 12505.99 2820.16 12004.33
25-Apr-11 12810.54 2873.54 12241.91
Grain-Based Dow
Foods Jones NASDAQ
2-May-11 12638.74 2827.56 12149.39
9-May-11 12595.75 2828.47 12408.58
16-May-11 12512.04 2803.32 12504.5
23-May-11 12441.58 2796.86 12345.9
31-May-11 12151.26 2732.78 12205.37
6-Jun-11 11951.91 2643.73 12119.27
13-Jun-11 12004.36 2616.48 12019.1
20-Jun-11 11934.58 2652.89 11950.42
27-Jun-11 12582.77 2816.03 12267.16
5-Jul-11 12657.2 2859.81 12390.03
11-Jul-11 12479.73 2789.8 12185.19
18-Jul-11 12681.16 2858.83 12195.59
25-Jul-11 12143.24 2756.38 11822.16
1-Aug-11 11444.61 2532.41 11378.13
8-Aug-11 11269.02 2507.98 11343.56
15-Aug-11 10817.65 2341.84 11338.38
22-Aug-11 11284.54 2479.85 11328
29-Aug-11 11240.26 2480.33 11726.86
6-Sep-11 10992.13 2467.99 11534.59
12-Sep-11 11509.09 2622.31 11626.07
19-Sep-11 10771.48 2483.23 11227.02
26-Sep-11 10913.38 2415.4 11461.36
3-Oct-11 11103.12 2479.35 11239.58
10-Oct-11 11644.49 2667.85 11586.02
17-Oct-11 11808.79 2637.46 11601.74
24-Oct-11 12231.11 2737.15 11895.46
31-Oct-11 11983.24 2686.15 11811.61
7-Nov-11 12153.68 2678.75 11726.9
14-Nov-11 11796.16 2572.5 11723.9
21-Nov-11 11231.78 2441.51 11460.68
28-Nov-11 12019.42 2626.93 11952.31
5-Dec-11 12184.26 2646.85 11895.95
12-Dec-11 11866.39 2555.33 11814.16
19-Dec-11 12294 2618.64 12055.8
27-Dec-11 12217.56 2605.15 12154.32
Grain-Based Dow
Foods Jones NASDAQ
Grain-Based Dow
Foods Jones NASDAQ
Weekly closes
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Dec. Nov. Oct. Sept. Aug. July June May April March Feb. Jan.
2011
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Stock Market Review
completed during the year, these deals
were small in comparison to the big
sh that got away. In May, ConAgra
announced plans to acquire Ralcorp
for $4.9 billion. The takeover effort
continued through the balance of the
spring and most of the summer but was
consistently rebuffed by the Ralcorp
board. During the year, ConAgra
bought the Marie Callenders brand
trademarks from Marie Callender Pie
Shops, Inc.; acquired National Pretzel
Co., based in Lancaster, Pa.; and became
the majority owner of Indian food
company Agro Tech Foods Ltd.
While its merger/acquisition
activities did not proceed as planned,
ConAgra saw marked success in its
nancial results. Adjusted for special
items, the company achieved strong
prot growth in its most recent
quarter (period ended Nov. 27),
particularly in the companys potato
business, as the engine driving results.
Gary Rodkin, the c.e.o. at ConAgra,
expressed optimism over trends in
the companys larger Consumer
Foods segment as well.
Shares of Corn Prod-
ucts International, Inc.,
Westchester, Ill., and
General Mills, Inc.,
Minneapolis, each gain-
ed 14% in 2011. The
integration of National
Starch, acquired in
October 2010 for $1.3
billion, was a major area
of focus for Corn Products
last year. Separate from
the acquisition, Corn
Products enjoyed strong
earnings growth, up 48%
year-to-date (through
Sept. 30), adjusted for special items.
During the year General Mills
acquired a 51% controlling interest
in Yoplait S.A.S. and a 50% interest
in a related entity that holds the
worldwide Yoplait brands for
approximately $810 million.
The 6% decline in the share price
of Krispy Kreme Doughnuts, Inc.,
Winston-Salem, N.C., showed that
strong earnings alone do not
guarantee like share price trends, at
least in the short term. Krispy Kreme
was the top performing company in
the index in 2010, surging 137%. In
the companys 2011 third quarter,
Krispy Kreme earnings were up 97%
from the same period a year earlier
on 9% growth in revenues. Over
the rst nine months of the year,
Krispy Kreme earnings were up
151%. The strong results prompted
the company to raise its scal 2012
outlook for operating income,
exclusive of special charges, to
between $24 million and $26 million,
up from $22 million and $24 million
projected during the second quarter.
Shares hit a 52-week high not long
after announcing strong results in
the summer, but then gave ground
steadily during the balance of the
year, even in the absence of major
nancial announcements.
While achieving a more than
respectable 6% advance in its share
price, the year 2011 was anything
but an easy one for Flowers Foods,
Inc. In April, Flowers announced
plans to acquire Tasty Baking Co. for
$165 million, and the transaction was
completed a month later. Throughout
the year, though, Flowers share
price and nancial results appeared
heavily inuenced by the extremely
challenging competitive environment
prevailing in the fresh baking industry
as well as by margin pressure resulting
from strong ingredient markets.
Uncertainty about ingredient markets
and the baking industry outlook
prompted the company late in the year
to defer issuing earnings guidance.
Looking forward, the company was
hopeful about prospects for expansion
in 2012, both because of the Tasty
acquisition and other forces.
We think 2012 will be a good
environment for future acquisitions
as independent bakers, in particular,
continue to look at new investments,
or succession planning or look at tax
rates which they might think will
change, George E. Deese, Flowers
chairman and chief executive ofcer,
said late in the year.
Of the 10 companies that sustained
share price losses in 2011, three
were processing companies MGP
Ingredients, Inc.; Bunge Ltd.; and
Archer Daniels Midland Co. MBN
Shaded companies not included in index
M
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Grain-based Foods Share Index companies:
stock price change in 2011
Grain-based Foods Share Index
percentage change
9.3%
7.5%
35.5%
3.6%
3.0%
-4.9%
14.7%
-10.7%
19.2%
1.0%
-21.5%
13.2%
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000
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Stock Market Review
Foreign grain-based foods
performance slightly weaker in 2011
A
lthough share price performance
for grain-based foods companies
outside of North America was
mostly mixed during 2011, performance
has been worsening steadily over the
past three years. Of the 38 companies
tracked by Milling & Baking News, 17
recorded year-over-year increases in
share price while 21 posted decreases.
By comparison, 16 companies posted
year-over-year declines in 2010 and
only 7 companies posted declines
in 2009.
On the London Stock
Exchange, Associated British
Foods nished the year at
1107p, down 4% from 1156p in
2010. Operating prot during
the year rose 3% to 842
million, and for the rst time
total sales exceeded 11 billion.
The company achieved revenue
growth in each of its business
segments, including a record
year for AB Agri.
Carrs Milling Industries
P.L.C. closed at 790p, up 30%
from 609p in 2010. Chairman
Richard Inglewood said the
companys food business
remains focused on cost control
to mitigate the negative impact
on sales growth and margins
from the continued excess
capacity in the our milling
industry.
Tate & Lyle P.L.C., the global
sweetener company, had a
52-week low of 449.5p, but
ultimately ended the year up
36%, closing at 708.5p. During
the year, Tate & Lyle restarted
production of Splenda sucralose
at a facility in McIntosh, Ala.,
and signed an exclusive,
worldwide license agreement
to commercialize Soda-Lo, a
salt reduction technology from
Eminate Ltd., a subsidiary of
The University of Nottingham
in the United Kingdom. Soda-
Lo enables salt reduction of
up to 30% in such applications
as bread, pizza bases, pastries,
savory pie llings, cheese and
baked snacks, according to Tate
& Lyle.
Premier Foods, the U.K.s
largest food producer, nished
2011 at 5.81p, down 70% from 19.28p,
in 2010. In December, Premier Foods
signed an agreement with The
Boyne Valley Group to sell its four
Irish Brands comprising Chivers,
Gateaux, McDonnells and the Erin
license (the Irish Brands) for a gross
cash consideration of 41.4 million.
The agreement represents a further
step in the groups strategy to focus
investment behind its core brands
and follows the announcement on
Dec. 8 of its intention to sell its chilled
food division, Brookes Avana, to the 2
Sisters Food Group for 30 million.
Northern Foods P.L.C. was delisted
from the London Stock Exchange in
2011 after the company was acquired
by Boparan Holdings. The acquisition
of Northern Foods increased Boparans
sales to more than 2 billion, and has
transformed the group into one of
the biggest players within
the British convenience foods
market.
Finsbury Food Group
P.L.C., a U.K.-based maker
of cake, bread and gluten-
free bakery goods, nished
2011 at 27.45p, up 17% from
23.50p in 2010.
Greggs P.L.C., an operator of
retail bakery shops and cafes in
the United Kingdom, nished
2011 at 506p, up 9% from
465p in 2010. During 2011, the
companys new 4.5 million
specialist confectionery bak-
ery in Penrith became fully
operational, while its 16.5
million bakery in Newcastle
upon Tyne commenced
production.
All three of the leading
U.K. retail chains sustained
share price declines in the
past year. Tesco, the leader in
U.K. food retailing, closed at
404p, down from 425p a year
earlier. Marks & Spencer,
meanwhile, finished the
year at 311p, down 16%
from 369p. Sainsbury, P.L.C.,
which posted year-over-
year gains between 2010
and 2009, finished the year
at 302.9p, down 16% from
376.3p in 2010.
In Ireland, Greencore
Group P.L.C., a European
maker of convenience food
and malt products, nished
at 0.63, down 50% from the
2010 close of 1.27. Greencore
substantially strengthened its
position in chilled convenience
foods in its chosen markets
of the United Kingdom and
the United States during the
nancial year through the
Foreign stocks, 2011 share
price performance
Marks & Spencer United Kingdom -16%
Premier Foods United Kingdom -70%
Greggs P.L.C. United Kingdom 9%
Tesco United Kingdom -5%
Associated British Foods United Kingdom -4%
Tate & Lyle P.L.C. United Kingdom 36%
Carrs Milling United Kingdom 30%
Sainsbury P.L.C. United Kingdom -16%
Finsbury Food Group P.L.C. United Kingdom 17%
Kerry Group Ireland 13%
Greencore Group Ireland -50%
Origin Enterprises Ireland -5%
Agrium Inc. Canada -27%
GrainCorp Ltd. Australia 19%
Goodman Fielder Ltd. Australia -67%
First Baking Co. Japan -12%
Nisshin Seifun Japan -8%
Nissin Foods Holdings Japan 6%
Nippon Flour Mills Co. Ltd. Japan -13%
Yamazaki Baking Japan 5%
Indofood Indonesia -4%
Flour Mills of Nigeria Africa -3%
Danone France 5%
Ahold n.v. The Netherlands 5%
CSM The Netherlands -53%
DSM The Netherlands -16%
Unilever The Netherlands 12%
Nestle S.A. Switzerland -8%
Aryzta AG Switzerland 5%
Alexandria Flour Egypt -33%
East Delta Flour Co. Egypt 11%
Middle Egypt Flour Egypt -33%
Middle and West Delta Flour Co. Egypt 13%
North Cairo Flour Egypt -11%
South Cairo & Giza Flour Mills Egypt -28%
Egyptian Starch Egypt -53%
Upper Egypt Flour Egypt 0%
Ebro Puleva S.A. Spain -7%
Tiger Brands Ltd. South Africa 35%
Quinenco Chile -21%
Molinos Rio Plata Argentina 8%
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acquisitions of Uniq P.L.C. and On a
Roll Sales.
Kerry Group nished the year at
28.28, up 13% from 24.97 at the
end of 2010. The company in early
December completed the acquisition
of Cargills global avors business.
Cargill Flavor Systems, with annual
revenues of approximately $200
million, was acquired for a total
consideration of $230 million.
Origin Enterprises ended 2011 at
3.05, down 5% from 3.20 in 2010
and compared with 2.13 at the end
of 2009. Origin Enterprises P.L.C. is
a food and agribusiness group based
in Dublin.
In Australia, GrainCorp Ltd.
closed the year at A$7.85, up 19%
from A$6.60 at the end of 2010, while
Goodman Fielder Ltd. nished 2011
at A$0.44, down 67% from A$1.345 in
2010. In July, Chris Delaney took over
as chief executive ofcer at Goodman
Fielder Ltd. Mr. Delaney most recently
was president of Asia Pacic for the
Campbell Soup Co. since 2009, and
earlier he was vice-president of sales
and president of emerging markets.
Before joining Campbell he held
various management roles at Procter
& Gamble Co. in the United States, the
Middle East, Ukraine, Belgium and
Poland.
Agrium Inc., which acquired AWB
Ltd. in December 2010, closed 2011 at
$67.11, down 27% from $91.75 in 2010.
In France, Groupe Danone S.A., the
countrys largest food and beverage
company, closed 2011 at 49.24, up
5% from 47.02 in 2010. The Dannon
Company, Inc., a business unit of
Groupe Danone, Paris, opened a
$9 million Discovery & Innovation
Center in White Plains, N.Y. Located
within the companys headquarters,
the center centralizes Dannons R.&D.
team.
In The Netherlands, Unilever, the
Anglo-Dutch food and personal
products business, closed 2011 at
26.57, up 12% from 23.80 per share
in 2010. The company late in 2011
completed the sale of its Mrs. Dash,
Molly McButter, Sugar Twin, Bakers
Joy, Static Guard and Kleen Guard
brands to B&G Foods, Inc. for $325
million in cash.
Ahold, the Dutch-based company
with global food retailing and food
service operations, nished the year at
10.36, up 5% from 9.88, while DSM,
the Dutch chemical company with food
ingredient interests, fell 16% for the
year, closing at 35.85. CSM, the Dutch
company with a strong presence in
baking ingredients in North America
and in Europe, nished sharply lower,
ending down 53% at 12.32. CSM in
May opened a new bakery ingredients
facility in Shanghai, China. The facility
is expected to serve the markets in
China, Hong Kong and Taiwan.
In Switzerland, Nestle S.A., the
worlds largest food company, closed
at 54 Swiss francs, down 8% from 58.82
Swiss francs in 2010. Nestle was active
on the investment front, including
spending 45 million in a Wagner
factory in Otzenhausen, Germany,
that will strengthen the frozen pizza
business of Nestle S.A.; entering an
agreement to acquire 60% of Hsu Fu
Chi, a manufacturer and distributor
of confectionery products in China;
and investing $13.6 million to produce
different varieties of chocolate in
Spain.
Aryzta A.G. closed 2011 at 45.40
Swiss francs, up 5% from 43.15 Swiss
francs in 2010. Aryzta continued to
benet from the 2010 acquisitions of
Fresh Start Bakeries, Great Kitchens
and Maidstone Bakeries.
Danisco A/S in Denmark was
removed from the Copenhagen Stock
Exchange after the company was
acquired by E.I. du Pont de Nemours
& Co. for $6.3 billion in June 2011.
Share price changes in Japan were
mostly moderate. Nisshin Seifun,
the Japanese holding company that
includes Nisshin Milling, Japans
largest our miller, closed at Y933,
down 8% from Y1010 a year earlier,
while Nippon Flour Mills Co. Ltd.
fell 13% for the year, closing at Y340,
and Nissin Foods Holdings, a leading
manufacturer of instant noodles, rose
6%, closing at Y3015.
Baking leaders Yamazaki Baking
and First Baking were a mixed bag
in 2011. Yamazaki closed at Y1011, up
5% from Y965 in 2010; First Baking,
meanwhile, nished at Y83, down 12%
from Y94 in 2010.
Indonesias Indofood, one of the
largest food producers in Asia, fell
back 4% to R4600 after gaining 37% in
2010 and 282% in 2009.
In South Africa, Tiger Brands
Ltd. posted its third straight year of
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Stock Market Review
gains, nishing up 35% at R25088. The increase followed a
14% gain in 2010 and 19% gain in 2009.
Egyptian companies engaged in our milling mostly
were lower with the exception of Middle and West Delta
Flour Co., which rose 13%, and East Delta Flour Co., which
was up 11%. Egyptian Starch fell 53%, Middle Egypt Flour
was down 36%, Alexandria Flour was down 33%, South
Cairo & Giza Flour Mills fell 28%, and North Cairo Flour
fell 11%. Upper Egypt Flour was at.
In Africa, Flour Mills of Nigeria P.L.C. fell 3% after
climbing 111% in 2010. Flour Mills of Nigeria is involved
in our milling, pasta production and cement production.
In Spain, Ebro Puleva S.A. shares fell 7% to 14.70 from
15.83. Ebro, which is the parent of New World Pasta Co., in
December agreed to acquire the No Yolks and Wacky Mac
dry pasta brands and certain assets from Bannockburn, Ill.-
based Strom Products Ltd. for $50 million.
In Chile, Quinenco closed the year down 21%, while
Molinos Rio Plata in Argentina closed up 8% from its 2010
nish. MBN
Bloomberg World Food
Index shines compared
to all equities
NEW YORK The Bloomberg World Food Index, a
capitalization weighted index of the leading public
companies in the food business around the globe, post-
ed a minimal 0.9% decline in 2011. That was a much
less severe setback than the 9.3% fall registered in the
Bloomberg World Index, which measures the perfor-
mance of the worldwide equity market.
The World Food Index closed 2011 at 178.26, compared
with 179.29 a year earlier. The index comprises 143 pub-
licly-listed companies. The index reached its 2011 high
on May 31 at 193.22, while the low for the year came on
Sept. 22, at 164.54.
For the overall measure of equities, the Bloomberg
World Index nished 2011 at 144.04, contrasted with
158.88 a year earlier. Its high for the past year was 173.57,
reached on May 2, and the low was 129.73 on Oct. 4.
The World Food Index reected a price-earnings ratio
for the 143 member food companies of 17.15, while it was
23 times EBITDA. The World Food Index was 2.52 times
book value and 71% of sales. This p.e. ratio for the World
Food Index was sharply higher than the 12.3 multiple
calculated for the World Index of all equities.
The largest publicly-listed global food company was
Nestle, which has capitalization accounting for 15.3% of
the indexs value. In second place was the largest U.S.
food company, Kraft Foods Inc., at 5.4% of the index val-
ue. Other leaders included Unilever n.v., at 4.8%; Tesco,
the U.K. grocery chain, at 4.05%; Danone, at 3.3%; Gen-
eral Mills, Inc., at 2.1%; and Kellogg, at 1.5%.
Among the 143 companies with share capitalization in
the index were eight Chinese companies.
No explanation was given for companies listed or not
listed. Notably missing were Archer Daniels Midland
Co. and Bunge Ltd. Wal-Mart Stores, Inc., which has
become the largest U.S. food retailer, was not included,
while Wal-Mart Chile was. MBN
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Rich Products unveils new
governance structure
Lindon and Meyers establish new
commodity advisory service
NAPERVILLE, ILL. The Connell
Co. has discontinued its commodity
advisory service, effective, Dec. 31,
and two longtime Connell executives
have established a new company to
immediately carry on the business.
Robert Lindon, who was an
executive vice-president at Connell,
will be owner and chief executive
offcer of the new business
Foresight Commodities
Services, Inc. Paul Meyers,
who was vice-president of
commodity analysis at Connell,
will be the chief agricultural
economist at Foresight.
Mr. Lindon said Foresight
will be assuming all the
accounts and business activity of
Connells commodity advisory
services, effective immediately.
Our objective is serving companies
with their commodity purchasing
needs, offering analysis, strategy
development and information, Mr.
Lindon said.
Mr. Lindon has 35 years of
experience in the commodities
business, commencing with work
in commodities analysis and grains
procurement for General Foods,
starting in 1977. After holding positions
with The Planning Economics Group
and Dean Witter Reynolds, Mr.
Lindon joined Connell in 1984, and
has managed the commodity advisory
service there since then.
A longtime participant in the annual
Milling & Baking News Purchasing
Seminar, Mr. Meyers was responsible
for commodity research, analysis and
consulting services to segments of
agribusiness. He has particular
expertise in cocoa, sugar,
corn, wheat, the soy complex
and corn sweeteners. Before
joining Connell, Mr. Meyers
was a grains analyst for the
World Agricultural Outlook
Board of the U.S. Department
of Agriculture and was an
economist with the Agricultural
Stabilization and Conservation
Service. With Foresight, Mr. Meyers
will be based in Long Valley, N.J.
For Connell, the decision to
discontinue its commodity advisory
service marks the end of a business
operation dating back half a century.
The companys roots, dating to the
1920s, are in the rice business, but
Connell currently operates a number
of divisions involved in rice and
sugar, mining, real estate, fnance and
equipment leasing. The company is
based in Berkeley Heights, N.J. MBN
BUFFALO, N.Y. Rich Products
Corp. has unveiled plans to realign
its governance and organizational
structure, effective Jan. 1, 2012. As
part of the realignment, Rich Products
said it will transition from its current
dual business group structure,
North America and International, to
one organization consisting of fve
regional business units: U.S./Canada,
Asia/Pacifc, Latin America, Europe/
Middle East and South Africa.
The timing is right for this next step
in our organizational evolution, said
Bill Gisel, president and chief executive
offcer. During the past 20 years, we
have made considerable investments
in our business infrastructure and
built signifcant workforces across the
world. The logical transition to one
universal business group with regional
governance supports the fact that were
now truly a global enterprise.
Mr. Gisel said the move will
strengthen Richs ability to share
our global business and in-market
expertise with our customers,
delivering trends and ideas from
around the world that will help them
be more successful. Additionally, he
said it will enhance the development
opportunities we offer to our
associates across our company.
Several personnel changes were
announced in connection with the
transition, including:
Richard Ferranti has been
promoted to executive vice-president
and chief operating offcer. Mr.
Ferranti, who most recently was
president of Richs North America
Business Group, will have oversight of
Richs fve regional businesses. Earlier,
he spent 10 years as president of Richs
International Business Group prior to
his North America leadership role.
Richard has successfully led our
North America business through our
evolving strategy that has focused on
and advanced our strengths, while
embracing the historic changes in
the world in which we compete,
Mr. Gisel said. His intellect, passion
and long-term track record of success
in a variety of important leadership
roles across Richs make Richard the
ideal candidate to assume this critical
position for our company.
Kevin Malchoff has been named
executive vice-president of global
business development. Mr. Malchoff,
who most recently was president of
Richs International Business Group,
will lead the companys efforts to
advance the strategies, capabilities
and processes needed to accelerate
new business across the globe.
Kevin has devoted the past fve
years of his 30-year Richs career as the
president of the International Business
Group, Mr. Gisel said. Under
Kevins leadership, our businesses
outside the U.S. and Canada have
driven unprecedented rates of growth
and success in emerging markets
across the globe.
Jim Deuschle, Richs executive
vice-president and chief fnancial
offcer, is assuming additional
responsibility for the companys global
procurement function, replacing Bill
Gillmore, Richs chief procurement
offcer, who has announced his
retirement effective April 1, 2012.
Jim has worked closely with our
procurement function to improve our
ability to plan and forecast the impact
of commodities on our business, and
has continued to demonstrate strong
leadership and valuable insight as a
member of our executive team, Mr.
Gisel said. His assumption of a closer
leadership role over procurement
is consistent with his responsibility
for our enterprise risk management
strategies.
Maureen Hurley, Richs executive
vice-president and chief administrative
offcer, is continuing in her current
role with oversight of the companys
legal, communications and human
resources functions, but she also will
take on added responsibilities related
to global human resource leadership.
Maureen has demonstrated a keen
insight and ability to drive people
and communication strategies that
shape our culture and engage our
associates, Mr. Gisel said. She will
also be instrumental in driving the
strategies that support our worldwide
reputation. MBN
Meyers
Donut Update
A
nother donut store chain
dipped into the stock market in
2011. Dunkin Brands Group,
Inc., the parent company of Dunkin
Donuts and Baskin-Robbins, on July
26 announced an initial public offering
of 22,250,000 shares of its common
stock at a price of $19 per share on
The NASDAQ Global Select Market.
On Nov. 17 Dunkin Brands, Canton,
Mass., announced the offering by
certain of its stockholders of 22 million
shares of its common stock at a price
of $25.62 per share. On Jan. 3, 2012, the
price closed at $24.74 per share.
Both Dunkin Brands and Krispy
Kreme Doughnuts, Inc., based in
Winston-Salem, N.C., and another
publicly-traded company, had
positive nancial news in 2011 while
forecasting more chain expansion.
Dunkin Brands has a goal of more
than doubling the Dunkin Donuts
footprint in the United States to reach
15,000 locations over the next 20 years,
said Nigel Travis, chief executive
ofcer of Dunkin Brands.
Additionally, we announced last
month we have begun actively recruiting
franchises for markets in Texas,
Colorado, New Mexico, Oklahoma
and Nebraska, and the response so
far by interested candidates has been
very positive, he said during a Nov. 1
earnings conference call. Although we
dont expect new Dunkin restaurants to
open in any of these markets until early
2013, were focused on keeping our
development pipeline lled.
He said internationally Dunkin
Brands wants to improve its position
in existing markets such as Japan,
Korea and the Middle East.
Shares of Krispy Kreme Doughnuts
trade on the New York Stock Exchange.
The price, which closed at $6.52 per
share on Jan. 3, 2012, has stabilized
after trading as low as $2.56 per share
in the summer of 2010.
Krispy Kreme reported net income
of $4.7 million, or 7c per share, for the
third quarter ended Oct. 30, 2011, which
compared with $2.4 million, or 3c per
share, in the previous years third quarter.
Revenue increased 9% to $98.7 million
from $90.2 million in the previous years
third quarter. Same-store sales rose for
the 12th consecutive quarter.
Krispy Kreme had 678 stores on
Oct. 30, 2011, which was up from 649
stores on Oct. 31, 2010. International
expansion remains a goal.
Although our international
presence has increased dramatically
in the last few years to 448 locations
at the end of the quarter, we anticipate
achieving an international store base
approaching 900 stores by calendar
2016, said Jim Morgan, chief
executive ofcer.
Krispy Kreme Doughnuts, Inc. has
been active on the retail side as well.
Turning to our off-premises
channel, our glazed chocolate pie
and new dipped cake donuts are
now available in over 10,000 grocery
stores, convenience stores and mass
merchants, Mr. Morgan said. These
two items expand our off-premise
product assortment of signature yeast-
raised and cake donuts as well as
honey buns, mini crullers, fruit pies
and snack-sized donuts.
Krispy Kreme Doughnuts had
U.S. retail sales of $117,055,100 for
the 52-week period ended Nov. 27,
2011, which marked a 4% increase
from the previous 52-week period,
according to SymphonyIRI Group,
a Chicago-based market research
rm. Unit sales, however, were down
1.6% to 31,098,510. The sales covered
supermarkets, drug stores and mass
merchandise outlets, excluding Wal-
Mart Stores, Inc.
Overall U.S. retail sales in the donut
category rose 2.4% to $734,988,700 for
the 52-week period ended Nov. 27,
2011, according to SymphonyIRI. Unit
sales dipped 0.5% to 297,249,800.
Bimbo Bakeries USA led the
category with sales of $194,748,800,
up 0.6% from the previous 52-week
period. Unit sales dropped nearly
6% to 61,908,200. Hostess Brands,
Irving, Texas, was second with sales of
$165,156,600, up 0.1%, and unit sales
of 83,429,770, up about 4%.
Hostess Brands in 2011 introduced
frosted devils food cake donettes that
are dipped in a chocolate-avored
coating. They are available in grocery
stores and convenience stores nationally.
Tastykake donuts are appearing in
retail stores across a wider geographic
region since Flowers Foods, Inc.,
Thomasville, Ga., completed its
acquisition of Tasty Baking Co.
Flowers Foods in 2011 introduced
the Tastykake brand in Flowers core
markets in the Southeast.
I am pleased that our integration of
Tasty is progressing as scheduled and
meeting our expectations, George E.
Deese, chairman and chief executive
ofcer of Flowers Foods, said Nov. 10
when the company reported third-
quarter nancial results. During
the quarter, we rolled out Tastykake
products in our D.S.D. markets across the
Southeast, and we will continue moving
the brand into other Flowers markets.
More than 1 million Tastykake
donuts are produced daily. They
include mini donuts, assorted donuts
and donut holes. MBN
Jeff Gelski
Investing dollars for donuts
Public offering of Dunkin Brands highlights successful year for donut chains
Industry Activities
Whitney MacMillan says important
food policy decisions lie ahead
MINNEAPOLIS Policy makers face
a number of diffcult and important
decisions about food in the years
ahead, requiring extremely careful
choices, said Whitney MacMillan, the
retired chairman and chief executive
offcer of Cargill.
Make the right decisions, and
we can continue to feed a growing
world, he said. Make the
wrong choices, and a great
many people around the world
will feel the effects and they
wont be good.
Mr. MacMillan addressed
critical world food issues in
a recent speech at The Blake
School, the Minneapolis college
preparatory school he attended as a
student.
Setting the stage for his key points, Mr.
MacMillan said the world population is
expected to grow from 7 billion today to
10 billion, or even more, in the lifetime
of people in this room.
Every day we have another 200,000
more people to feed, most of them in
what we used to call the developing
world, he said. Somebody has to
produce the food a growing, hungry
world needs. And just as important,
someone has to generate the wealth
needed to enable those hungry people
to afford the food they need.
Over the past 30 years, the global
population has grown by 70%. Despite
great strides forward in productivity,
capacity for food production has
not kept pace with this population
growth, Mr. MacMillan said.
The balance between the food we
produce and the food we consume
remains razor thin, he said.
In addition to the projected
population growth, global income
levels may increase nearly threefold,
driven by economic growth in
Asia and other key economies
worldwide, Mr. MacMillan said. Food
consumption will double as a result of
the population and income growth.
With the higher incomes will come
increased demand for protein, which,
in turn, triggers attendant resource
issues associated with production of
chicken, pork, beef and milk.
To make things more complicated,
much of that growth will occur in
urban settings, Mr. MacMillan said.
But as they say, we arent making any
more land. Perhaps more noteworthy
is the fact that half the worlds farmers
today cant feed their own families. So
just saying let more people farm isnt
an option.
Emphasizing the need to optimize
use of agricultural resources, Mr.
MacMillan mentioned the role of food
in recent political unrest around the
world, including Egypt.
The link between food security
and political stability should be
obvious, Mr. MacMillan said.
But here in the richer countries
of the world, we can lose sight
of that simple fact. But we need
to understand that political
instability in places like the
Middle East and Africa can have
important consequences for us.
Looking at the present situation, Mr.
MacMillan warned of what he sees as
a formula for the price volatility that
has rocked the commodity world in
recent years.
He said he sees a real risk of rapid
and major increases in food costs and
a precarious balance between supply
and demand.
Mr. MacMillan offered a diverse
set of examples of trends that drive
food costs higher. He said the term
organic is often considered to mean
better because of the association
between the world with products that
are more pure and natural.
But (organic) also offers considerably
lower yields, and frankly, poses its own
food safety problems, he said.
Similarly, we see a lot of people
arguing against the use of improved
genetics, most notably in seed genetics,
Mr. MacMillan said. Some say it
somehow tampers with nature and leads
to that most evil of all things Franken-
foods. Anything that smacks of
intensive farming is automatically bad,
according to others. But how can anyone
object to a seed that increases yields and
income, requires no tillage, uses less
water, does not require pesticides nor
insecticides and uses less fertilizer?
I cant help but see this blind
opposition to scientifc progress as
something regrettable. I see a world with
serious challenges to food security but
hear a debate that sounds remarkably
like what Copernicus and Galileo must
have faced hundreds of years ago.
I dont mean to disparage the
views of genuinely concerned people.
Debate is healthy. But lets have debate,
not shrill nay-saying and denial of an
unpleasant reality.
Mr. MacMillan reminded the
audience of the need to fnd a way to
feed 10 billion people by 2050, while also
preserving natural resources. Success,
he said, will depend on the smart
use of exactly this kind of technology
around the world.
In contrast to approaches like
biotechnology that could help meet
world food demand in the years
ahead, Mr. MacMillan cited ethanol
as a favorite example of the
consequences of bad decision making.
The supposed promise of ethanol
was wonderful, Mr. MacMillan said,
including reduced dependence on
foreign oil, job creation, economic activity,
a cleaner environment and better health.
All that was required to bring
ethanol to life was an estimated $53
billion in federal subsidies by 2015,
Mr. MacMillan said.
He said substantial tax credits have
been offered for every gallon of ethanol
produced and mandated increase use
of ethanol in the U.S. gas supply.
Creation of policy like this places
ag companies in a no-win position,
which is why so many in the industry
have been reluctant to speak up, he
said. Years ago, many of us warned
against this policy, but we lost the
debate. And once such a far-reaching
program came into being, there was
no choice but to compete as best we
could. Some people cant grasp or
accept that it is essential to remain
competitive in order to survive in
agribusiness. But ask anyone in the
business or better yet, anyone
no longer in the business, of whom
there are many. Competitiveness is
essential.
But in the past year or so, theres
increasing evidence that more and
more people realize the true and far-
reaching consequences of what we
have done. More and more people
inside the agricultural community
have realized that bad ag policy is no
cure for bad energy policy.
Ethanol has gone center-stage
in the larger middle-class tax revolt
against questionable federal spending.
More and more people question
whether its smart to use so much of
one of our cornerstone commodities
corn for fuel.
Ethanol from corn has not been the
exclusive cause of food insecurity and
price volatility, and Mr. MacMillan
expressed the view ethanol does
have a place in a comprehensive U.S.
energy policy.
Its the reliance on corn as the
predominant source of raw material
MacMillan
that troubles me and so many others, he said. I hope to
see us move toward reliance on other stocks, just as Brazil
has done.
Still, he described as disingenuous claims ethanol
policy is not a factor in global food challenges worldwide.
He noted 40% of the U.S. corn crop currently is used for
ethanol. With this growth has come increasing political
clout from rural areas, the ethanol industry and related
lobbying groups.
Our ethanol predicament reminds me of the old
saying: The road to hell is paved with good intentions,
Mr. MacMillan said. I believe we need to keep that
thought front and center as we make policy choices. If we
make bad choices even with the best and most noble
of intentions the result will indeed be hell for a great
many people worldwide. MBN
Wheat Foods Council unveils
networking web site
RIDGWAY, COLO. The Wheat Foods Council has
launched a new web site, www.wheatfoods.org.
As we prepare to celebrate our 40th anniversary in 2012,
we are proud to announce the launch of the Wheat Foods
Council Network web site, said Judi Adams, president of
the W.F.C. With virtually thousands of web sites about
wheat and wheat foods, we wanted to create a place where
health and nutrition professionals, educators, culinarians,
the media, consumers,
and anyone else with an
interest in wheat foods,
can go for credible,
science-based health and
nutrition information.
According to the
W.F.C., the new web site
is constructed around the
concept of channels,
specifc nutrition practice
areas where visitors may
fnd focused content.
The channels are: Food
& Culinary, Nutrition Educators, Supermarket and Retail,
School Nutrition, Weight Management, Home Baking,
Wheats Up and In-Focus.
The Wheats Up channel will feature a lighter look at
what is in season, whether its a new industry initiative,
recipes, activity tips, or wheat food facts; while the In-Focus
channel will include a more in-depth look at a key issue
impacting the nutrition community.
We built this network to help people communicate
with one another, Ms. Adams said. She noted the W.F.C.
Network will offer news, videos, podcasts, webinars,
a regular e-letter, blogs, Tweets and other social media
options to make it easy for visitors to stay up-to-speed and
in touch with the various nutrition communities.
Additionally, the W.F.C. said it will use the web site
to gather visitors opinions on a range of issues, from
favorite wheat foods to the best ways to communicate
health messages to consumers. Volunteers from the
nutrition community are being asked to serve as network
correspondents and they will be sharing their personal
videos throughout the year on wheat and grains-related
nutrition issues and events. MBN
GEAPS
Grain Elevator and Processing Society
www.geaps.com
The Knowledge Resource for
the World of Grain Handling Industry Operations
For details on attending and exhibiting: visit www.geaps.com
Or contact us: info@geaps.com; (952) 928-4640
The 83rd Annual
International Technical Conference and Exposition of
the Grain Elevator and Processing Society
March 3-6, 2012
Minneapolis Convention Center
Minneapolis, Minnesota, USA
EXCHANGE
The Industrys Largest Expo
An Outstanding
Educational Program
PLUS... The Industrys Best
Networking Opportunities
Industry Activities

June 1991 = 100
Scales differ for each index.
-15%
-10%
-5%
0%
5%
10%
15%
20%
White Pan Bread Ingredients
M
o
n
t
h
l
y

c
h
a
n
g
e
July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June
+11.7%
+8.8%
-13.3%
-6.8%
+8.6%
+2.3%
-0.4%
+4.5%
-13.4%
-10.0%
+6.2%
12-
month
change:
-2.2%
+4.1%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
+3.3%
+5.2%
+0.4%
-4.8%
-18.4% +0.7%
+10.3%
-8.3%
-8.7%
+12.8%
+6.9%
Bagel Ingredients
M
o
n
t
h
l
y

c
h
a
n
g
e
+0.8%
12-
month
change:
-4.3%
Cake Donuts Ingredients
M
o
n
t
h
l
y

c
h
a
n
g
e
12-
month
change:
-1.9%
-4.7%
-5.3%
+2.6%
-0.3%
+4.5%
-0.9%
+1.7%
+0.8%
-4.4%
+2.4%
+3.9%
-1.4%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
-7%
-3.5%
0%
3.5%
7%
Devils Food Snack Cake Ingredients
M
o
n
t
h
l
y

c
h
a
n
g
e
+0%
-2.5%
-5.3%
-1.7%
+3.0%
+1.8%
+0.6%
-0.8%
+3.3%
-3.6%
+4.2%
+3.8%
12-
month
change:
+2.1%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
Pasta Ingredients
12-
month
change:
+25.6%
M
o
n
t
h
l
y

c
h
a
n
g
e
-11.5%
+21.1%
+11.5%
-5.6%
-14.3%
-6.8%
+18.4%
+31.1%
+1.3%
+4.0%
-14.4%
-0.6%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
-5.1%
+3.8%
+2.9%
-11.1%
-14.6%
+9.3%
+6.1%
-0.3%
-18.9%
+12.4%
-3.4%
Saltine Cracker Ingredients
M
o
n
t
h
l
y

c
h
a
n
g
e
12-
month
change:
-14.9%
+8.5%
-12%
-8%
-4%
0%
4%
8%
Shortbread Cookie Ingredients
12-
month
change:
-6.8%
M
o
n
t
h
l
y

c
h
a
n
g
e
-6.1%
+0.3% +0.2%
-6.6%
-0.6%
-1.7%
+1.7%
-6.4%
+5.2%
+3.9% +3.4%
+0.6%
Indexes
Nutrition and Health
Report: Good grains to be
bakerys top trend in 2012
LONDON Good grains, including those identied as ancient
grains, are set to be the leading driver of innovation in the bakery
sector in 2012, according to 10 key trends in food, nutrition &
health 2012, a new report from London-based analyst group
New Nutrition Business.
According to the report, grains already benet from a consumer
perception of being all-natural and healthy, even when they
are included in highly-processed foods, such as breakfast cereals.
Many grains also benet from a perception of natural and intrinsic
health benets such as the link between oats and heart health.
Julian Mellentin, director of New Nutrition Business and author
of the trends report, cited the good grains message as a key driver
behind growth in Kraft Foods breakfast biscuit brand, Belvita.
With Belvita, Kraft has achieved annual sales of 63 million in
France since the brand was introduced in 2001, and sales of 21
million in the U.K. since launch two years ago, Mr. Mellentin
said. This has predominantly come off the back of a marketing
positioning that highlights the whole grain content of the product
and how this equates to slow release energy. Its a strategy that
appears to have succeeded, and Kraft is now gearing up to bring
Belvita to the U.S. market in 2012.
Mr. Mellentin also said consumers have shown a willingness to
try new and innovative grains.
Theres been a steady increase in the numbers of products
launched based on new and more esoteric grains, such as the so-called
ancient grains, like amaranth and quinoa, he said. People appear
to be open to trying these novel grains, just as they are open to trying
new fruits and vegetables. This is helpful because differentiating with
grains is not easy and alternative grains can provide companies and
brands with that much sought-after point of difference.
Growing evidence supporting grains role in maintaining a healthy
weight is another factor that positions grains in a positive light. MBN
Bay State Milling opens innovation center
QUINCY, MASS. Bay State Milling Co. opened its innovation and application
center at its headquarters in Quincy with a dedication ceremony in mid-
October. Dedicated to the late Bernard J. Rothwell II, former president of the
company, the facility will be known as the Rothwell GrainEssentials Center:
Where Grain Based Solutions Grow. The facility is designed around functional
stations, and includes state-of-the-art equipment and an experimental mill. It
will serve as the home base for Bay States product applications team. Bay
State said small scale commercial grade equipment has been installed in
the center to produce a wide range of grain-based foods, including bread,
pizza, pancakes, breadings, tortillas and more. Rothwell family members
in attendance at the ceremony included (from left) Brenda Rothwell-
Prescott, Barbara Rothwell-Hagan, Bonnie Rothwell-Walsh, Brian G. Rothwell,
Christopher Rothwell and Bernard J. (Buck) Rothwell III. MBN
Weekly Spotlight
Price Indicators
2011 Indicators
Ingredient Market Trends
Congress to consider scal
constraints and high farm
prices in drafting farm bill
M
embers of the agriculture committees in the Senate and
House of Representatives soon will begin drafting the
2012 farm bill. They will do so at a time marked both
by great concern over government spending and high farm
prices. Perhaps more often than not, it is necessity that gives
birth to reform. The drive to cut government spending has
provided the need to review farm programs. And certainly high
prices for most commodities may make reform more palatable
to producers. Famously resilient farm programs may receive
greater scrutiny this year than at any time since 1996, also a year
of high commodity prices, when Congress made its last stab at
weaning production agriculture from government support.
The U.S. Department of Agriculture in its Agricultural
Income and Finance Outlook issued in December estimated
net farm income in 2011 at $100.9 billion, up 28% from 2010
and 50% higher than the recent 10-year average of $67.4
billion. Net cash income estimated at $109.8 billion would be
a nominal record, 19% above the prior record attained in 2010.
As the year drew to a close, the average farm price of wheat in
2011 was estimated at $7.43 a bu, up 44% from 2010 and just
8c under the 2008 average. Average prices paid to farmers for
corn and soybeans in 2011 were estimated at $6.04 a bu and
$12.89 a bu, respectively, both records.
While expenses of farming also were on the rise, 2011 was a good
year for producers, and because of the high prices, government
payments made directly to farmers accounted for a smaller share
of overall farm income than in most recent years, which will be a
consideration as Congress reshapes U.S. farm programs.
The U.S.D.A. estimated government payments made
directly to producers in 2011 at $10.6 billion, down 14% from an
estimated $12.4 billion paid in 2010. If the December estimate
holds, government payments to farmers in 2011 would have
been the lowest since $7.5 billion in 1997.
Direct payments under the Direct and Countercyclical
Program (D.C.P.) and the Average Crop Revenue Election
Program (ACRE) were forecast at $4.71 billion for 2011. Direct
payment rates are xed in legislation and are not affected by crop
prices. Direct payments in 2011 were expected to be down about
5% from the 2006-10 average because of producer enrollment
in ACRE. Authorized under the 2008 farm act, ACRE provides
revenue insurance to producers in exchange for a 20% reduction
in their annual direct payment allotments. Direct payments may
have the eye of congressional budget-cutters.
Farm program payments based on price levels were estimated
at $45 million, down 92% from 2010 because of strong crop prices.
ACRE revenue insurance payments were expected to drop to
$20 million in 2011 from $422 million in 2010. Countercyclical
payments were estimated at $17 million and were made only to
peanut farmers. Commodity producers were expected to receive
$8.3 million in marketing loan benets, including loan deciency
payments, marketing loan gains and certicate exchange gains.
Other direct payments to producers in 2011 included
payments to milk producers and tobacco farmers under
individual commodity programs as well as payments under
conservation and emergency disaster programs. MBN
Annual average prices received by farmers
p
e
r

b
u
s
Source: U.S. Department of Agriculture, Economic Research Service
$0
$3
$6
$9
$12
$15
Wheat
Soybeans
Corn
11* 10 09 08 07 06 05 04 03 02 01 00
*forecast
THIS
WEEK
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
2
WEEKS
AGO
3
WEEKS
AGO
LAST
WEEK
Pan-bread our
Wheat futures,
K.C., March 10 vs. March 11
Millfeed,
K.C., 30-day
Soybean oil
HFCS
42%
Cocoa
Eggs
12-MONTH
CHANGE
-2.2%
-15.8%
-2.9%
-5.3%
+13.0%
-2.0%
+18.4%
Ingredient Week
Bakery Flour
Bookings of bakery our were limited
last week. Price changes were mixed
with pan bread our and spring grade
our prices plunging and soft our pric-
es eking out narrow gains.
Bakers returned to ofces after the
holidays facing no urgent needs and well
positioned to consider market conditions
before extending our coverage. Millers
indicated at coverage (all components
of a our contract accounted for) of our
needs for January-March was about 70%.
When one considers commitments to
contracts for the quarter as reected in
component coverage, about 85% of the
prospective business for the rst quarter
was on the books. Such commitments to
contracts were estimated to account for
45% of prospective our requirements
for April-June and for about 10% of pro-
spective needs for July-September.
Wheat futures prices dropped last
week, marking a halt to the recent rally.
Cash wheat markets saw mixed changes.
The cash hard winter wheat market ad-
vanced on light post-holiday receipts,
discouraging component-buying pan
bread bakers from extending basis cov-
erage. The cash spring wheat market
tumbled, though, as wheat movement
increased across the northern Plains,
and spring grade users eyed the spring
wheat basis for possible coverage.
Millfeed prices dropped after the holi-
days, making covering the millfeed com-
ponent of prospective our contracts
less attractive.
$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
The Commodity Credit Corp. pur-
chased 5,100 tonnes (112,455 cwts) of
all-purpose our at $433.50@462.04 a
tonne ($19.66@20.95 a cwt) for donation
abroad; shipment Feb. 1-March 15.
Although mills were closed Monday,
our grind rebounded strongly in most
regions will many mills running through
the past weekend. Grind averaged about
six days in Central states, 5 to six in
the Southwest and Upper Midwest, 5
in the Northeast and four to ve days in
the Southeast and West coast. MBN
Family Flour
Sales of national and regional brands
of family our were sluggish. Carlot list
prices were unchanged.
Grocers and other principal buyers
were working down inventories, and
orders werent expected to pick up until
these supplies are cleared.
Demand for family our typically re-
verts to the routine during the winter
and early spring. This was expected to
be the case again this year.
In the market for private label our,
manufacturers and buyers discussed
our coverage through May. MBN
Semolina
Bookings of semolina, granulars and
durum four were light last week. Prices
were unchanged with lower millfeed
prices offsetting a downward adjust-
ment to cash durum prices.
The price of choice milling hard amber
durum quoted as a delivered Chicago/
Bakers standard, Kansas City
Spring standard, Minneapolis
Cracker our, Chicago
Bakery our
Change from Year
Jan. 6 Dec. 30 Dec. 23 ago
Kansas City
Bakers short patent 18.15 -0.90 0.65 19.90
Bakers standard patent 18.05 -0.90 0.65 19.80
Second clear 14.00 1.50 1.50 12.50
Third clear NA . . . . . . 5.80
Minneapolis
Spring short patent 19.55 -2.15 -1.55 23.55
Spring standard patent 19.45 -2.15 -1.55 23.45
High gluten 22.45 -2.15 -1.55 26.45
Whole wheat 19.45 -2.15 -1.55 23.45
Specialty whole wheat 19.80 -2.15 -1.55 23.80
Fancy spring clear 19.30 -2.15 -1.55 23.30
First spring clear 19.20 -2.15 -1.55 23.20
Rye, white 20.95 0.40 0.80 20.50
Chicago
Cracker 15.25 0.10 1.10 18.25
Fancy cake 16.75 0.10 1.10 19.75
New York
Winter/spring blend 20.55 -0.90 0.65 22.30
Spring standard patent 21.60 -2.10 -1.55 25.65
High gluten 24.60 -2.10 -1.55 28.65
Fancy cake 18.75 0.10 1.10 21.75
Rye, white 23.45 0.40 0.80 23.00
Los Angeles
Bakers standard patent 22.25 -0.90 0.65 21.95
Pastry 20.70 -0.90 0.65 21.05
Bulk, f.o.b. Minneapolis, $ per cwt
Semolina
No. 1 hard amber durum
Dollars
Nationally advertised family our
Jan. 6 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 28.25 -.45 23.15
Granulars 28.05 -.45 22.95
Flour 27.95 -.45 22.85
First clear 19.10 13.60
Second clear 13.00 11.00
Semolina - N.Y. 30.95 -.45 25.85
Track, Minneapolis
$ per bu
beyond value was $11.90 a bu, down 10c
from the previous week. The Chicago
price equated to a Minneapolis value
of $11.60 a bu. The durum price was the
lowest since May 2010 and compared
with $9.60 a bu a year ago.
The Canadian Wheat Board offered
milling durum held in storage in Thun-
der Bay, Ont., at the equivalent of $12.20
a bu, down 55c from a week earlier.
Pasta manufacturers eyed a weak-
ening cash durum market and held
back from further purchases in the
hope prices would continue to decline.
There was no sense of urgency with
semolina coverage for the frst quarter
of 2012 estimated at 90%. Coverage for
the second quarter, though, was only
about 15%, and once buyers sense a
price bottom is near, it was expected
booking for the rest of the crop year
would expand.
Durum planting in Arizona continued
to make good progress. The U.S.D.A.
Winter Wheat Seedings report, which
will be released Jan. 12, will have the frst
estimate of desert durum planting (Ari-
zona and California) for harvest in 2012.
Even with recent wide declines, durum
prices remained historically high, and
ideas were desert durum plantings will
be larger this year than last. MBN
Change from Year
Choice milling 13% 11.60 -.10 -.40 9.60
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 16c a bu higher last week.
The basis strengthened during both of
the holiday-shortened weeks as wheat
offers on the spot market dwindled. The
unchanged premiums were untested.
Demand was broad but not very deep.
Mills sought to keep wheat fowing
into marketing channels in order to keep
pipelines optimally flled while they
awaited deliveries of contracted wheat
for application against January contracts.
Resellers short on early-January commit-
ments to the mills also sought supply. De-
clining wheat futures prices bolstered the
role of cash wheat premiums in encour-
aging farmer sales and rail car loadings.
Also a consideration were concerns that
while current weather was benign, soon-
er or later, winter was expected to pose
challenges to timely wheat movement.
Gulf bids on hard winter wheat were
steady. In Fort Worth, bids on hard red
winter wheat were unchanged at the K.C.
March price; new crop, 40c under July.
Salina truck bids at terminal elevators
were 15c under K.C. March, unchanged;
new crop, 45c under July. Hutchinson el-
evator bids were 5c under K.C. March, up
5c; new crop, 35c under July.
Most hard winter wheat states updated
crop condition ratings. Winter wheat rat-
ings in Kansas and Oklahoma improved
in December while ratings were mostly
stable in Texas and Nebraska and lower
in South Dakota and Montana.
At the end of December, Kansas
wheat condition was rated 53% good
to excellent (47% a month earlier), 38%
fair and 9% poor to very poor. Above
average temperatures and benefcial
moisture in most areas helped to see the
winter wheat through December, said
Kansas Agricultural Statistics. Kansas
topsoil moisture improved to 76% ad-
equate to surplus and 24% short to very
short with the southwest district still
very dry with 64% reported in short to
very short for topsoil moisture.
Oklahoma wheat condition was 63%
good to excellent (56% a month earlier),
30% fair and 7% poor to very poor. The
U.S.D.A.s Oklahoma feld offce said,
Several precipitation events through-
out the month have improved conditions
for small grains in the ground, but more
moisture is needed to recover from the
long drought. Texas wheat condition
was rated 25% good to excellent, 37%
fair and 38% poor to very poor with the
area affected by exceptional drought
receding after benefcial rains.
Nebraska wheat was 74% good to ex-
cellent (74% a month earlier), 25% fair
and 1% poor. South Dakota wheat was
41% good to excellent (63% a month
earlier), 47% fair and 12% poor to very
poor. Lack of snow cover was a concern.
Montana wheat was 30% good to excel-
lent (37% a month earlier), 61% fair and
9% poor to very poor amid mostly dry
conditions and cold temperatures.
HARD SPRING. Premiums on hard
red spring wheat quoted as delivered
Chicago/beyond values in relation to
the Minneapolis March wheat future
plunged 30@95c a bu last week. Wheat
offers increased but encountered limited
domestic and foreign demand.
Snow cover was light to nonexistent
across much of the northern Plains, and
Basis Kansas City March, cents per bu
No. 1 hard winter
Exporter bids and offers
For
shipment
Jan. 6
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. 6 Change from Year
For shipment Bid Dec. 30 Dec. 23 ago
January . . . . . . . . .
February 6.22 +.17 7.6
March 6.25 +.01 +.15 7.60
No. 1 Soft White, Track, Portland
$ per bu
January 0.50 -.10 -0.2
February 0.52 -.10 -0.10
March 0.55 -.09
January 1.20 . . . -.15 1.6
February 1.20 -.20 -.20 1.60
March 1.20 -.20 -.20 1.60
Premium Dec. 30 Dec. 23 ago
Ordinary 45 @ 60 -52 @ -37
11% 45 @ 60 -44 @ -29
11.2% 60 @ 75 +5 @ +5 +5 @ +5 -42 @ -27
11.4% 75 @ 90 +5 @ +5 +5 @ +5 -38 @ -23
11.6% 85 @ 100 +14 @ +14 +14 @ +14 -30 @ -15
11.8% 101 @ 116 +16 @ +16 +30 @ +30 -13 @ 2
12% 111 @ 126 +11 @ +11 +30 @ +30 -3 @ 12
12.2% 111 @ 126 +9 @ +9 +30 @ +30 -3 @ 12
12.4% 111 @ 126 +6 @ +6 +30 @ +30 0 @ 15
12.6% 111 @ 126 +5 @ +5 +6 @ +6 0 @ 15
12.8% 111 @ 126 +1 @ +1 +6 @ +6 5 @ 20
13% 124 @ 139 +14 @ +14 +14 @ +14 55 @ 70
13.2% 124 @ 139 +14 @ +14 +14 @ +14 60 @ 75
13.4% 124 @ 139 +11 @ +11 +4 @ +4 65 @ 80
13.6% 124 @ 139 +4 @ +4 +4 @ +4 70 @ 85
13.8% 135 @ 150 75 @ 90
14% 165 @ 180 80 @ 95
Basis Minneapolis March, delivered Chicago\beyond cents
per bu
No. 1 hard spring
Premium Dec. 30 Dec. 23 ago
Ordinary . . . . . . . . .
11% . . . . . . . . .
12% 8 . . . . . . -30
13% . . . . . . . . . 25
13.5% . . . . . . . . . 80 @ 90
14% 90 @ 105 -30 @ -60 -50 @ -50 148 @ 220
14.5% . . . . . . . . . 240
15% 110 @ 130 -95 @ -85 -60 @ -60 310 @ 400
16% . . . . . . . . .
17% . . . . . . . . .
January +110 March
February +110 March 120
March +108 March
April +95 May
January +57 March 58 60 March
February +57 March 62 +62 March
March +57 March 65 +68 March
April +45 May 52 +35 May
Western red spring 13.5% 353.78 -21.59 381.71
Soft white spring 266.93 -9.60 302.96
Amber durum 458.67 -17.78 386.91
In-store, Thunder Bay,
Canadian $ per tonne Jan. 6
Change from
Dec. 30
Year
ago
U.S. $ per bu
Western red spring 13.5% 9.41 -0.63 10.46
Soft white spring 7.10 -0.30 8.30
Amber durum 12.20 -0.55 10.60
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
there were no obstacles to wheat move-
ment by rail or even by truck in most areas
including hauling wheat from farm bins
to elevators and into marketing channels.
Producer sales of wheat increased at least
moderately after Jan. 1.
Domestic demand for hard red spring
wheat remained constrained by mill sub-
stitution of hard winter wheat for spring
wheat of equivalent protein to the extent
practicable.
SOFT RED. Mill bids on soft red winter
wheat were unchanged to 20c a bu higher
last week. In Kansas City, No. 1 soft red
bids were 66c under K.C. March to 6c un-
der, unchanged. Gulf bids on soft red for
January were 57c over Chicago March, up
2c. St. Louis mill bids were 30c over Chica-
go March, up 20c. Chicago mill bids held
at 10c over Chicago March; new crop, 35c
under July. Mill bids in Toledo for nearby
were unchanged at 30c over Chicago
March; new crop, 30c over July. Elevator
bids were Chicago March price; new crop,
the Chicago July price. Cincinnati nearby
mill bids were steady at 25c under Chi-
cago March. Elevator bids were 33c under
Chicago March; new crop, 20c under July.
Michigan white wheat mill bids for near-
by held at 10@40c over Chicago March.
Illinois and North Carolina updated their
winter wheat condition ratings. As of Jan. 2,
81% of the Illinois crop was good to excel-
lent, 17% fair and 2% poor. The North Caro-
lina wheat condition at the end of Decem-
ber was rated 88% good to excellent (84% a
month earlier), 11% fair and 1% poor. MBN
Ingredient Week
$4.25
$5.75
$7.25
$8.75
$10.25
J A J O
Wheat Futures
Prices of wheat futures dropped last
week, bringing to an end a two-week ad-
vance. With corn and soybean prices trad-
ing sideways much of the week, it was
mostly other outside markets and wheats
own bearish supply-and-demand funda-
mentals that pushed prices lower.
The U.S. dollar trading to the highest
levels since January 2011 exerted pres-
sure on commodities. At the same time,
crude oil futures continued to trade
above $100 a barrel, underpinned by jit-
ters over Irans threat to close the Strait of
Hormuz because of tightening economic
sanctions on that country. Equity markets
continued to rise with support from posi-
tive U.S. manufacturing and job growth
data and a lack of fresh horrible economic
news from across the Atlantic.
The U.S. Department of Agriculture
indicated net export sales of U.S. wheat
during the week ended Dec. 29 totaled
138,600 tonnes, a marketing year low
and down 68% from the previous week
and down 64% from the prior four-week
average. The Egyptian governments
grain-buying agency purchased 240,000
tonnes of milling wheat for March
11-20 shipment, but none from the Unit-
ed States. Suppliers sharing in the wheat
purchase included France, Ukraine and
Russia. To date this marketing year,
Egypt has purchased only 246,700 tonnes
of U.S. wheat compared with 1,740,300
tonnes during the same span of 2010-11.
Most hard red winter wheat states pro-
vided new crop condition ratings. Win-
ter wheat ratings improved in December
in Kansas and Oklahoma, were stable in
Texas and Nebraska and declined across
the northern Plains. Overall, the reports
suggested most of the hard winter wheat
crop fared well in December with rain
across the southern Plains reducing the
area afficted by extreme or excep-
tional drought.
Traders awaited a battery of U.S.D.A.
data that will be released Jan. 12, including
reports on Dec. 1 grain stocks, winter wheat
seedings and updates to 2011-12 U.S. and
world supply-and-demand forecasts. The
U.S.D.A. was expected to keep world wheat
ending stocks near 208 million tonnes in the
report. Some analysts suggested the pro-
jected U.S. wheat carryover on June 1, 2012,
may be lowered slightly due to stronger ex-
ports than forecast. MBN
Millfeed
Millfeed prices tumbled last week on
a combination of weak demand, heavy
supply and lower corn futures prices after
midweek. Flour grind picked up after
$ 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. 6 Dec. 30 Dec. 23 High Low ago
Kansas City
March 6.80

-37c +5c 7.32 6.79

8.46
May 6.88 -36c +5c 7.39

6.88 8.56
July 6.97

-35c +5c 7.47

6.96

8.63
September 7.09 -35c +4c 7.58 7.09

8.72
Chicago
March 6.24

-28c +2c 6.70 6.24 7.74
May 6.43

-27c +4c 6.89

6.43

8.01
July 6.60

-26c +4c 7.02

6.59

8.21
September 6.76

-25c +4c 7.17

6.75 8.38
Minneapolis
March 8.01

-48c -43c 8.70

7.98 8.70
May 7.92 -32c -25c 8.49

7.89 8.80
July 7.86

-26c -21c 8.38 7.82

8.83
September 7.74 -16c -2c 8.10 7.65

8.77
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 160 @ 166
Southwest, f.o.b. truck 175 @ 185
Minneapolis 149 @ 157
Upper Midwest, f.o.b. truck 145 @ 153
Chicago West 162 @ 170
Central states, f.o.b truck 152 @ 160
Buffalo 150 @ 160
Southeast 135 @ 140
N. & S. California 197 @ 212N
Los Angeles, f.o.b. truck 193 @ 208N
Pacic Northwest 185 @ 200N
Upper Midwest, sacked 300
Wheat germ 295 @ 310
Change from Year
Jan. Dec. 30 Dec. 23 ago Feb.-Mar. Apr.-June
160 @ 166 -5 @ -7 -12 @ -14 160 @ 168 157 @ 163 118 @ 124
175 @ 180 -10 @ -10 -17 @ -17 175 @ 185 172 @ 177 133 @ 138
149 @ 157 -10 @ -12 -13 @ -15 154 @ 164 146 @ 154 136 @ 144
145 @ 153 -10 @ -12 -13 @ -15 150 @ 160 142 @ 150 132 @ 140
162 @ 170 -10 @ -12 -13 @ -15 167 @ 177 159 @ 167 149 @ 157
150 @ 158 -13 @ -15 -12 @ -14 150 @ 160 150 @ 158 125 @ 133
140 @ 150 -15 @ -15 -8 @ -8 150 @ 155 118 @ 128 100 @ 110
135 @ 140 -15 @ -20 -20 @ -25 135 @ 145 130 @ 140 117 @ 127
184 @ 199 +3 @ +3 168 @ 178 172 @ 187 143 @ 158
180 @ 195 +3 @ +3 164 @ 174 168 @ 183 139 @ 154
185 @ 200 -5 @ 0 -5 @ 0 155 @ 165 180 @ 195 150 @ 165
the holiday with mills in some regions
running through the past weekend.
Supplies were heavy across all regions
east of the Rocky Mountains and heaviest
in the Upper Midwest and Central states.
Spot values plunged as much as
$20@30 a ton in the Southeast, Northeast
and Central states, $15 in Upper Midwest
and Southwest trucks, $5 for Southwest
rail and Pacifc Northwest with California
about steady. Balance-January prices fell
about $5@15, and deferred values were
unchanged to about $8 lower.
Several markets contended with
heavy supply and limited demand over
the holidays. When corn futures prices
plunged last Thursday, millfeed prices
fell across all periods and regions. Delays
were common, and washouts were
expected in the Southwest, where frst-
quarter material had been bought earlier
as much as $50 above current values.
Wheat germ prices were steady to
slightly weaker in limited trading.
Millfeed was $160 a ton in Kansas City
and $149 a ton in Minneapolis, on a rail
basis, compared with corn at $234 a ton
and sorghum at $215 a ton, both K.C. Corn
gluten feed was $10 lower at $170 a ton,
distillers dried grain was steady at $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. 6 Dec. 30 Dec. 23
Chicago, bulk 23.38 @ 26.33 -.05 @ -.07 +.50 @ +.43
Chicago, sacked 25.15 @ 28.16 -.05 @ -.07 +.50 @ +.43
New York, bulk 25.05 @ 28.06 -.05 @ -.07 +.50 @ +.43
New York, sacked 27.47 @ 30.45 -.05 @ -.07 +.50 @ +.43
Change from
Soy our
Bulk 22.62 @ 22.82 -.24 @ -.34 +.48 @ +.28
Sacked 23.62 @ 24.82 -.54 @ -.04 +.08 @ +.68
Minneapolis
Change from
Food grade akes, f.o.b.,
bagged, $ per cwt 28.75@29 -.50 -.50
Milling quality oats, No. 2 heavy,
$ per bu 3.17 -22c -24c
Oat hulls, $ per ton 25@35
Change from Year
Corn Futures Jan. 6 Dec. 30 Dec. 23 ago
$ per bu
March 6.43 -3 +24 5.95
May 6.50 -4 +22 6.03
July 6.55 -5 +21 6.08
September 6.02 -11 +9 5.69
December 5.75 -11 +6 5.42
March 5.87 -13 +6 5.50
Soybeans $ per bu
January 11.89 -9 +26 13.57
March 11.96 -11 +24 13.65
May 12.06 -11 +23 13.73
July 12.14 -12 +22 13.77
August 12.09 -13 +20 13.53
September 11.99 -13 +16 13.17
Soybean Meal $ per ton
January 309.60 +.20 +12.60 359.10
March 312.40 -.70 +11.60 362.10
May 314.90 -.90 +11.00 365.00
July 317.80 -1.20 +10.20 365.50
August 317.40 -2.00 +8.80 356.20
September 316.20 -2.30 +7.60 345.50
Offers f.o.b. mills, $ per cwt, bagged
Change from Year
Cash Jan. 6 Dec. 30 Dec. 23 ago
Long grain 27@29 29
Medium grain 31@32 34
Parboiled 30@35 34
Second
heads, bulk 17@18 15
Brewers 14@18 10
f.o.b. mills, $ per ton
Rice millfeed . . . . . . 45
Rice bran 210@230 -10 -10 110
Rice hulls 70 10
U.S.D.A. 2011 crop world price milled - $ per cwt
Long grain 19.94 -1.60 21.67
Medium/short
grain 19.45 -1.80 21.38
Broken 13.97 -1.27 15.33
C.B.O.T. rough rice futures - $ per cwt
January 14.46 -0.14 +0.55 13.39
March 14.68 -0.18 +0.53 13.63
May 14.95 -0.18 +0.52 13.91
July 15.20 -0.17 +0.51 14.18
Corn Products
Corn meal sales were seasonally light
after as some buyers resumed operations
slowly after the holiday week. Prices
edged lower. Coverage through the
frst quarter was mostly completed but
was light beyond March. Several users
remained month-to-month buyers. Corn
mills ran about four days last week.
There was a brief spurt in farmer
sales of corn as the old year ended and
2012 began, but lower futures prices
after midweek stymied the fow. The
increased sales, along with slow domestic
and export demand during the holiday
period, pressured cash basis levels.
Talk about seed corn shortages as
U.S. farmers were expected to increase
plantings in 2011 were quelled by
government and industry representatives.
Corn futures prices ended the week
lower. Prices advanced early on concerns
about dryness in Argentina and on
weakness in the U.S. dollar. Several
analysts reduced Argentine corn
production forecasts. Increased farmer
selling of corn early last week and proft-
taking also limited gains in futures prices.
But prices tumbled Thursday on forecasts
for much-needed rain in Argentine corn
areas and as the dollar turned sharply
higher. Traders awaited key Jan. 12
U.S.D.A. supply-and-demand, grain
stocks and annual crop production reports.
Net export sales of U.S. corn in the
week ended Dec. 29 for delivery in 2011-
12 were 299,500 tonnes, down 6% from a
week earlier, the U.S.D.A. said. The total
was just below trade expectations. China,
Mexico and Japan were the major buyers.
Marketing-year-to-date net export sales
commitments of corn were 6% below
those in the same period last year. MBN
Oats
Sales of food grade oat fakes remained
slow coming out of the holiday week.
Coverage was unchanged, ranging from
the frst quarter through the entire year.
Exceptionally mild winter weather to
date continued to limit demand for hot
breakfast cereal.
Oat fake prices declined last week,
refecting weakness in Chicago oats
futures prices, which in recent weeks have
traded more independently from corn
futures than is typical. One trader noted
March oats at 45% of the value of March
corn was the lowest he could remember.
At the same time last year, March oats
was more than 60% of the value of corn.
Oats basis levels have remained strong as
a result of the weakness in futures. There
was no indication of an increase in oats
sales by Canadian farmers after Jan. 1. MBN
Rice
U.S. milled rice prices were unchanged
at the start of the new year. Rice
byproduct prices were steady to lower
with bran down $10@20 a ton, hulls
steady and millfeed mostly unquoted.
U.S.D.A. 2011 crop world milled rice
prices were unchanged last week.
Rough rice futures prices declined
modestly. Fundamentals remained bearish
with world supplies ample following
record global production last year.
Net export sales of U.S. rice during
the week ended Dec. 29 for delivery in
2011-12 were 29,800 tonnes, down 65%
from a week earlier and 48% below the
prior four-week average, the U.S.D.A.
said. Taiwan was the major buyer. Net
export sales commitments of rice for the
marketing year to date were 29% below
the same period last year. MBN
Soy Products
Soy four sales remained slow after the
holiday break. Prices declined. Few new
bookings were evident, although some
buyers continued to seek pricing. Many
users continued to buy on a month-to-
month basis with mostly larger users
holding longer-term coverage through the
frst quarter or even the full year in some
cases. Time needed to deliver new orders
was unchanged at two to three weeks.
Farmers sales of soybeans increased
briefy at the end of 2011 and early last
week but subsided after midweek when
futures prices turned lower. Cash basis
levels were weaker on increased sales
and slow domestic and export demand
during the holiday period.
Soybean complex futures prices were
mostly lower last week. Soybeans traded
to two-month highs early in the period
on weakness in the value of the U.S.
dollar and on concerns about dryness
in South America. But futures prices
plunged Thursday as the dollar soared
and weather forecasts called for rain this
week in parched areas of Argentina.
Net export sales of U.S. soybeans during
the week ended Dec. 29 for delivery
in 2011-12 were 281,300 tonnes, down
58% from a week earlier and 56% below
the prior four-week average, the U.S.
Department of Agriculture said. China and
Mexico were the major buyers. Soybean
meal net sales were 144,400 tonnes in the
week, nearly three times the prior weeks
amount. Soybean sales were well below
trade expectations, but soybean meal
sales were above most trade estimates.
Net export sales commitments for the
marketing year to date were down 32% for
soybeans and down 14% for soybean meal
from the same period last year. 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 13.6c with 2% cash discount.
Change from Year
Midwest beet 52.00 @ 54.00 -1.00 55.00
Pacic beet 52.00 @ 54.00 -1.00 55.00
Cane* 53.00 @ 56.00 -2.00 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 Dec. 30 Dec. 23 ago
January 50.80 -1.29 -.16 56.35
March 51.12 -1.30 -.25 56.82
May 51.50 -1.28 -.23 57.22
July 51.81 -1.24 -.21 57.44
August 51.86 -1.24 -.21 57.47
September 51.89 -1.22 -.21 57.47
Delivery Decatur, Ill. Western points
January 50.30 @ 50.55 49.55 @ 49.80
February 50.46 @ 50.71 49.71 @ 49.96
March 50.62 @ 50.87 49.87 @ 50.12
April 51.06 @ 51.31 50.31 @ 50.56
May 51.25 @ 51.50 50.50 @ 50.75
June 51.41 @ 51.66 50.66 @ 50.91
July 51.56 @ 51.81 50.81 @ 51.06
Bulk in tank cars, cents per lb
Delivered rener, cents per lb
Change from Year
Contract Jan. 6 Dec. 30 Dec. 23 ago
Nearby 35.90 -.35 -.25 38.50
January-March 35.90 -.35 -.25 38.50
April-June 36.00 -.25 -.50 38.75
July-September 36.00 -.25 -.60 39.80
October-December 35.75 -.25 -.75 34.90
January-March 34.10 -.05 -.05 34.10
Bulk in tank cars, cents per lb
Change from Year
Soybean oil,
Decatur 50.50 -1.25 -.50 53.50
Loose lard, Chicago 49.00 -.75 43.00
Edible tallow,
Chicago 50.75 46.25
Cottonseed oil,
Miss. PBSY 52.25 -1.25 55.50
Palm oil, ports 50.75 +.50 60.25
Palm kernel oil,
ports 51.50 63.25
Coconut oil 66.00 +2.00 +3.00 87.00
Peanut oil,
Southeast 95.25 76.50
Corn oil, Decatur 54.25 +.50 +.50 59.75
Sunowerseed oil,
Midwest 91.00 68.50
Canola oil, Midwest 55.75 -1.25 -.25 59.25
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. 6 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
after the holiday break. Few new sugar
sales were evident, and prices held about
steady. Corn sweetener business was
mostly completed several weeks ago.
Prices of bulk rened sugar were
mostly in the 52@56c a lb f.o.b. range for
spot through Dec. 31, 2012. Most buying
interest was closer to 52c a lb for beet
sugar with cane offers as high as 56c.
There were some buyer inquiries, but
nothing was expected to trade until this
week at the earliest. Discussion was noted
for 2013 and 2014, but no new sales were
evident, although some processors earlier
booked considerable volume for 2013.
Sugar supply was available but not
abundant. Some buying was expected
ahead of Easter, mainly from quarterly
buyers. And some traders still speculated
supplies may tighten in the second
quarter, which may prompt the U.S.
Department of Agriculture to reevaluate
import quotas after April 1.
Unseasonably warm weather in the
Red River Valley and other northern areas
did not appear to hurt beet piles with
nighttime temperatures below freezing.
Much colder weather was forecast.
American Crystal Sugar Co. plants
across the Upper Midwest continued to
run with replacement labor.
Sugar prices were mostly stable in
Mexico. A report indicated Mexico was
considering a 400,000-tonne import
quota to supplement domestic supply
and prevent price spikes. While the cane
harvest there still had a long way to go,
some traders said they would not be
surprised at such an import quota since
they considered earlier 2011-12 Mexican
production forecasts above 5.3 million
tonnes to be too high. The U.S.D.A. will
update both U.S. and Mexican sugar
production and use forecasts on Jan. 12.
New York world raw sugar futures
advanced 5% to seven-week highs early
last week and then plunged 5% Thursday
on strong gains in the value of the dollar
and automated sell orders. Domestic
raw futures saw modest declines.
Higher corn sweetener values
contracted for 2012 are reected in the
Milling & Baking News price tables on
this page. Values for dextrose were up $4
a cwt from 2011 contracted levels, 42%
high-fructose corn syrup and regular
corn syrup were about $2 a cwt higher,
and 55% HFCS was raised about $3 a
cwt, although pricing on the latter was
not well dened due to changes in the
negotiating process implemented by
corn reners last fall. MBN
Bakery Shortening
Bookings of bakery shortening were
light last week. Price changes were mixed.
Soybean oil prices declined. Soybean oil
futures prices advanced through midweek
but tumbled into the weekend. The cash ba-
sis on soybean oil maintained a soft under-
tone emerging from the holidays as refners
sought outlets amid limited demand.
Weather forecasts for South American
soybean areas were eyed closely. Rain
was in midweek forecasts, which pres-
sured soy complex futures on Thursday,
but subsequent forecasts issued at the
weeks end suggested less rain may fall
than earlier suggested. Dry conditions,
especially in Argentina, provided resis-
tance to price declines in the soy com-
plex. Soybean planting in Argentina was
about 86% completed.
The U.S. dollar index trading to the
highest level since January 2011 ex-
erted pressure on commodity futures
generally. Crude oil futures prices held
above $100 a barrel, though, amid jitters
prompted by Irans threat it may block
the Strait of Hormuz in response to tight-
ening economic sanctions. The soybean
oil market remained sensitive to any
changes in the crude oil market because
of use of soybean oil in the production
of biodiesel.
The U.S. Department of Agriculture
indicated net export sales of U.S. soy-
bean oil during the week ended Dec. 29
totaled 7,300 tonnes with Taiwan, Mexi-
co and Panama the principal buyers.
Decreased demand after the key baking
season weighed on lard and tallow prices.
Palm oil prices were frm as produc-
tion in Malaysia was adversely affected
by heavy rain that prevented workers
from harvesting at full speed. MBN
Ingredient Week

Dairy Expertise
AA Butter - Salted & Unsalted
(Domestic & Imported)
AMF/Butteroil (Domestic & Imported)
Whole Milk Powder (Domestic & Imported)
Nonfat Dry Milk
Pasteurized Grade A Fluid Sweet Cream
Cheeses - Cheddar, Mozzarella &
Cream Cheese
Bringing you quality ingredients at competitive
prices for nearly 100 years.
A century of
Contact: Fred Smith 800-441-1001
P.O. Box 335, 1407 New Road, Linwood, NJ 08221
Email: fsmith@clonedairy.com www.clonedairy.com
Cocoa
$ per lb
Dairy products
Change from Year
Whey powder .66 @ .71 +3c +3c .35
Lactose .81 @ .86 +10c +10c .33
Whey protein concentrate,
(34% edible) 1.50 @ 1.55 +6c +6c .99
(80% edible) . . . . . . . . . 3.00
Whey protein isolate
(90% edible) . . . . . . . . . 4.60
Nonfat dry milk high-heat
Central/East 1.50 @ 1.60 -1c -3c 1.33
West 1.40 @ 1.50 -3c -3c 1.24
Nonfat dry milk medium-low heat
Central/East 1.41 @ 1.48 1.24
West 1.35 @ 1.42 -1c 1.20
Buttermilk powder 1.30 @ 1.40 +3c 1.10
Casein - acid 4.95 @ 5.10 4.00
Casein - rennet 4.60 @ 4.90 3.95
Caseinate
(f.o.b. ports) 4.80 @ 5.20 -25c 4.05
Butter 93AA (C.M.E.) 1.60 +1c +1c 2.10
Cheese $ per lb, Central
Cheddar (Blocks 40#) 2.46 -1c 2.21
C.M.E. cheddar barrels 1.59 +1c +3c 1.34
C.M.E. cheddar blocks 1.61 +4c +4c 1.36
Mozzarella 2.44 -1c 2.16
American 5# loaf 2.14 +1c +1c 1.84
f.o.b. plant, $ per lb
Egg products
Change from Year
Eggs Jan. 6 Dec. 30 Dec. 23 ago
Delivered, cents per dozen (multiply by 30 for case price)
Nest runs 53.00 @ 57.00 -6.00 -10.00 34.00
Checks 40.00 @ 45.00 -6.00 -9.00 19.00
Table -
Grade A large 141.50 @ 153.50 -6.00 +2.00 118.50
Dried products - f.o.b. plant, $ per lb
Whole 2.55 @ 2.80 -.05 -.10 2.25
Whites 4.70 @ 4.90 -.10 -.20 3.95
Yolks 1.85 @ 2.10 -.05 -.10 1.90
Blends
(+ sweetener) 2.15 @ 2.40 -.05 -.05 1.95
Frozen products - less than truckload, f.o.b., $ per lb
Whole 0.75 @ 0.77 -.03 -.05 0.56
Whites 0.75 @ 0.77 -.01 0.60
Sugared yolks 0.93 @ 0.96 -.02 -.05 0.86
Salted yolks 0.92 @ 0.95 -.03 -.06 0.82
Liquid products - pasteurized, f.o.b., $ per lb
Whole 0.50 @ 0.52 -.04 -.06 0.36
Whites 0.53 @ 0.55 -.03 -.07 0.40
Yolks 0.70 @ 0.72 -.02 -.03 0.68

Dairy Products
Dry dairy product prices were mixed
again last week while cheese and butter
prices were frmer. Milk supplies were at
more normal levels as schools reopened.
High-heat nonfat dry milk prices
were 1@3c a lb lower with low-heat and
medium-heat N.D.M. steady to weak
as the market dealt with supplies from
increased production during the holiday
period and early last week. New buying
interest was light.
Casein prices were steady to weaker,
and frst-quarter caseinate prices were
down 20@25c a lb. Dry buttermilk prices
were steady to weaker with the most
weakness seen in the West.
But prices of other dry products shot
upward mostly as the result of higher
frst-quarter contracted values. Lactose
prices surged 10c a lb amid good buying
interest, limited spot offers and mostly
balanced inventories. Prices of 34% whey
protein concentrate advanced 6c a lb with
supplies adequate for contractual needs
but light otherwise. Dry whey prices
were up 3c a lb with production easing
after the holiday period and supplies
mainly committed to contract buyers.
Cheese prices were steady to higher.
As with dry products, milk supplies
to cheese operations declined after
the holidays. Most attention was on
production related to orders for the
upcoming Super Bowl on Feb. 5.
C.M.E. Group butter prices also frmed.
Churning eased as ample cream supplies
during the holiday period declined. MBN
Egg Products
Egg product prices continued to sink
as business remained mostly slow after
Change from Year
Butterfat ratio N.Y. 1.05 @ 1.15 1.55
Cake ratio N.Y. 1.75 @ 1.85 1.57
Powder ratio N.Y. 2.23 @ 2.38 +.06 +.22 1.71
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
the holidays. The expected post-holiday
surge in orders failed to materialize as
buyers held back in a declining market.
Dried egg whites plunged 10c a lb (20c
in two weeks). Dried yolks, blends and
whole eggs were 5c lower. Frozen whole
eggs dropped 3c a lb, yolks were 2@3c
lower and whites were steady to weak.
Liquid whole eggs plunged 4c a lb,
whites lost 3c and yolks were down 2c.
Breaking egg prices declined on heavy
supplies and moderate to weak processor
demand. Graded egg prices turned lower
after advancing into the holidays. MBN
Cocoa
Cocoa powder prices were unchanged
last week. Some new domestic and
export sales of natural powder were
noted, including sales to bakery mix and
chocolate milk manufacturers. While
domestic powder supplies still were tight
nearby, most users had adequate coverage
through midyear. Recent weaker prices
did not encourage users to rush to buy.
New York cocoa bean futures prices
continued to fall on increased deliveries
in West Africa and overall ample global
supplies. Gains in the value of the U.S.
dollar added pressure as well. 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 160.00 -5.00 -12.00 160.00
Soybean meal, 44%, K.C. 293.40 -1.00 +9.40 351.70
Soybean meal, 47%, K.C. 304.40 +5.00 +17.40 358.70
Cottonseed meal, 41%, Memphis 214.50 -3.00 -8.00 245.00
Linseed meal, 35%, Minneapolis 217.50 -5.00 247.50
Sunower seed meal, 28%, Minneapolis 207.50 -20.00 -17.50 207.50
Dehydrated alfalfa, 17%, Alf. Center 292.50 175.00
Meat meal, 50%, Kansas City 290.00 +20.00 +20.00 315.00
Meat meal, 50%, Chicago 285.00 +5.00 +5.00 315.00
Corn gluten feed, 21%, Southwest 187.50 -5.00 -12.50 175.00
Corn gluten meal, 60%, Southwest 507.50 +5.00 575.00
Corn gluten feed, 21%, Midwest truck 140.00 -12.50 -17.50 137.50
Hominy feed, Kansas City (Northwest) 202.50 +2.50 +2.50 178.50
Hominy feed, Chicago 119.00 +5.00 94.00
Hominy feed, California 264.00 +4.00 237.00
Hominy feed, Central Illinois 115.00 +5.00 90.00
Feather meal, K.C. 137.50 -272.50 -275.00 405.00
Distillers dried grain 200.00 180.00
Change from Year
Diesel fuel Jan. 6 Dec. 30 Dec. 23 ago
Retail, on-highway, $ per gallon
East coast 3.844 +0.004 -0.029 3.357
Midwest 3.683 -0.023 -0.082 3.303
Gulf coast 3.709 +0.001 -0.018 3.279
Rocky Mountain 3.836 -0.025 -0.077 3.332
West coast 3.979 +0.001 -0.013 3.443
U.S. average 3.783 -0.008 -0.045 3.331
Natural gas
Spot prices, $ per million BTUs
Henry hub 2.96 -0.11 -0.09 4.52
New York 4.55 -1.30 +1.21 5.92
Chicago 3.05 -0.11 -0.12 4.75
California average 3.14 -0.19 -0.22 4.60
Crude oil
Spot prices, $ per barrel
West Texas Intermediate 103.22 +3.86 +5.98 90.30
C.B.O.T. ethanol
Nearby contract, $ per gallon 2.223 +0.020 +0.038 2.240
Change from Year
Bagel 232.8 -30.5 -25.1 281.5
Cake donut 182.5 -3.6 -2.4 186.9
Devils food cake 207.8 -3.3 -5.7 204.1
Pasta 297.4 -4.7 243.7
Saltine cracker 188.0 -0.5 +9.3 217.4
Shortbread cookie 202.5 -2.9 -1.9 215.6
White pan bread 205.5 -6.9 +7.0 218.6
$ per ton
Energy Information Administration
Tables in Ingredient Week use the following symbols:
unchanged... no quote
52-week Jan. 5 Net
High Low Close change
Grain-Based Foods
Share Index ................. 12504 .50 7531 .57 12120 .35 + 85 .57
ADM ................................ 38 .02 23 .69 29 .37 + 1 .00
Bridgford ......................... 13 .92 6 .80 9 .70 + .10
Bunge ............................. 76 .13 54 .03 58 .75 + 2 .42
Campbell Soup ............... 35 .66 29 .69 32 .73 - .44
ConAgra ......................... 36 .72 22 .20 26 .51 + .15
Corn Products ................ 59 .50 36 .65 51 .34 - .34
Dunkin Brand ................. 31 .94 23 .24 24 .73 + .17
Flowers Foods ................ 23 .13 15 .95 18 .76 - .16
General Mills ................... 40 .80 34 .54 40 .54 + .10
Hain Celestial .................. 38 .47 25 .59 35 .32 - 1 .82
J & J Snack ..................... 55 .58 41 .91 52 .48 + .04
Kellogg ............................ 57 .70 48 .10 50 .41 - .27
Kraft Foods ..................... 38 .05 30 .21 37 .39 + .13
Krispy Kreme ................... 10 .08 5 .10 6 .36 - .02
Lance .............................. 24 .09 17 .06 22 .51 + .14
MGP Ingredients ............. 10 .89 4 .25 5 .05 .00
Panera Bread Co. ............ 145 .46 94 .62 137 .21 - 1 .96
PepsiCo .......................... 71 .89 58 .50 66 .74 + .83
Ralcorp Holdings ............. 91 .35 59 .23 85 .46 + .70
J.M. Smucker ................... 80 .25 61 .16 77 .28 - 1 .08
Sara Lee .......................... 20 .26 15 .66 18 .88 - .04
Seaboard ......................... 2705 .00 1650 .00 2022 .00 + 10 .00
Grupo Bimbo .................. 106 .71 23 .00 29 .50 + 2 .14
George Weston Ltd. ......... 84 .76 63 .80 67 .35 + .97
Maple Leaf Foods ............ 12 .49 10 .18 10 .98 + .28
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
Van Drunen Farms, Momence, Ill., offers freeze-dried

blackberries year-round for use in such products as hot
cereals, cold cereals, snacks, granola mixes, baked foods,
teas and other beverages. They are available in whole pieces,
granules and powder. Freeze-dried blackberries are high
in antioxidants such as vitamin A and vitamin C, and they
contain magnesium, too.
For more information, call (815) 472-3100, e-mail
sales@vandrunen.com or visit www.vandrunenfarms.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.
Barry Callebaut launches decoration items
Add blackberries to cereal, snacks
BASF selects North American distributors
BASF Corp. has appointed Brenntag Specialties, Inc.
and Horn Co. as distributors to serve its human nutrition
customers in North America, effective Jan. 1, 2012.
Brenntag Specialties, South Plainfield, N.J., will serve
customers in North America and the eastern United States.
Horn Co., La Mirada, Calif., will work with customers in
the western United States.
This new distribution network will provide our
customers with a broad range of products to meet virtually
any application need in dietary supplements, foods and
beverages, said Samy Jandali, vice-president, Nutrition &
Health, North America, for BASF Corp.
Brenntag Specialties is involved in full-line chemical
distribution. The companys sales and marketing teams are
supported by six regional customer service centers and 17
warehouses across the United States and Canada.
Horn Co. distributes specialty ingredients, raw materials
and chemicals for use in a variety of industries. The
industries encompass nutraceuticals, cosmetics, personal
care products, food ingredients, cleaning products and
animal wellness products, coatings, composites, building
materials, elastomers and adhesives.
For more information, visit www.basf.com.
Barry Callebaut, Zurich, Switzerland, has introduced
confectionery decorations, fillings and icings. Desir is a
new chocolate filling range. Mini decorations include nibs,
vermicelli, CrisPearls, splitters and blossoms.
The mini vermicelli decorations may be used on pralines,
cakes and plated desserts. Mini blossoms have an irregular
and hand-crafted character for special effects and highlights.
Mini CrisPearls are dark, milk and white chocolate around a
toasted biscuit kernel. They may be included in confectionery,
ice cream, desserts and pastries. Mini splitters are fat-shaped
chocolate bits that may be used in ice cream or may be used to
decorate truffes, pralines, cakes, desserts and rolls. Mini nibs
are roasted kernels of the cocoa bean.
For more information, visit www.barry-callebaut.com.
Replace eggs in cake batters, cookies
Arla Foods Ingredients
Groups P/S, Viby, Denmark,
offers ingredients for
companies wanting to create
egg-free grain-based foods
products. Nutrilac BK 7676,
a milk protein, may provide
cake structure and replace egg
components in cake batters.
Nutrilac BK 7781, another
milk protein, was developed
to provide structure in cookies
and may be used in egg-free
cookies.
For more information, visit www.arlafoodsingredients.com.
Peerless Group launches new brand identity
The Peerless Group, Sidney, Ohio, a division of the ITW
Food Equipment Group, has launched a new brand identity and
tag line. The 2012 rebrand also will include a refned web site
and product literature as well as additional social media sites.
A new logo brings together the three brands of
Peerless, Peters and Fedco. The new tag line, Like No
Other, embodies the companys
commitment to provide superior
equipment and service to
customers to move their business
forward, according to The Peerless
Group, a food equipment company
that has supplied the baking
industry since its founding in 1913.
Todays announcement refects
our dedication to expand our market presence, deepen
our customer relationships and strengthen our safety and
performance leadership, said George Hoff, general manager
of Peerless Food Equipment. Our customers have told us
that our equipment performance and reliability sets us apart
in the industry and our service offering is incomparable.
For more information, visit the www.thepeerlessgroup.us.
Classieds
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or contact the circulation department at 1-800-338-6201 or fax 816-968-2878.
SERVICES
EMPLOYMENT
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.
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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
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
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 Carrie Fluegge for more information or price quote
at 816-756-1000 or e-mail reprints@sosland.com p
My company was featured in an article
My product/equipment/service was discussed in an article
I have a great ad that should be utilized

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
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Multiple Exposure with Digital Delivery
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
AB Mauri Fleischmanns ..............................................................23
www.abmaurieischmanns.com
ADM ................................................................................................6
www.adm.com/milling
American Society of Baking .........................................................31
www.asbe.org
Bartlett & Co. (Flour Milling Div.) .................................................51
BMO Harris Bank ..........................................................................29
www.harrisbank.com/redframe
Brolite Products, Inc........................................................................3
www.bakewithbrolite.com
Buhler, Inc. ......................................................................................9
www.buhlergroup.com
Bunge North America ...................................................................52
www.bungenorthamerica.com
Cereal Food Processors, Inc. .........................................................17
www.cerealfood.com
Church & Dwight Co., Inc. .............................................................27
www.ahperformance.com
Clone Dairy & Food Products, Inc. ..............................................43
www.clonedairy.com
ConAgra Mills .......................................................................14, 15
www.conagramills.com
Dakota Specialty Milling ..............................................................19
www.DakotaSpecialtyMilling.com
Dakota Yeast .................................................................................25
www.dakotayeast.com
Farmer Direct Foods, Inc. ..............................................................11
www.farmerdirectfoods.com
GEAPS ...........................................................................................35
www.geaps.com
Horizon Milling, LLC ........................................................................2
www.horizonmilling.com
King Milling Co. ............................................................................28
www.kingmilling.com
Loders Croklaan ..............................................................................5
www.croklaan.com
The Mennel Milling Co. ...................................................................8
www.mennel.com
North Dakota Mill .........................................................................20
www.ndmill.com
Research Products Co. ..................................................................30
www.researchprod.com
Shawnee Milling Co. .....................................................................50
www.shawneemilling.com
USA Yeast ......................................................................................25
www.usayeast.com
Milling & Baking News, (ISSN 0091-4843) Volume 90, issue 23
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.
F
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Closes January 19
Food Ingredient Solutions:
Next Generation Oils
Bagel Update
OCTOBER 5, 2010
LATE NEWS
WASHINGTON Wheat stored
in all positions on Sept. 1 totaled
2,458,849,000 bus, up 11% from
2,209,338,000 bus on Sept. 1, 2009, the
U.S. Department of Agriculture said
in its latest Grain Stocks report. Sept.
1 old crop corn stocks were up 2% at
1,707,566,000 bus, and old crop soy-
bean stocks were up 9% at 151,121,000
bus. The U.S.D.A. stocks numbers for
wheat and corn were above the aver-
age of pre-report trade expectations
while the soybean number was as
expected. On-farm stocks of wheat
were 826,000,000 bus, down 1% from
836,000,000 bus a year ago, while
off-farm stocks were 1,632,859,000
Wheat stocks up 11%,
corn climbs 2%
Continued on Page 8
Tortilla turnover
on the rise
Story on Page 30 Sales swing upward for many
manufacturers
Sodium reduction for the long haul
Ingredients replace sodium while keeping in taste
and leavening functions
C
onsumer and scienti c data
from such organizations as the
Centers for Disease
Control and Prevention,
Mintel and the International
Food Information Council
point to a reality: Food com-
panies will face pressure to
reduce sodium content in
their products for some time
to come. For the grain-based
foods industry, the questions
become how and how much.
The American Bakers Association,
Washington, supports an incremental
approach that will allow consumers
pallets to adjust to less salty foods.
Ingredient suppliers also offer ways to
replace sodium in leavening systems.
Less than 10% of U.S. adults limit
their daily sodium intake
to recommended levels,
according to the June 24
report Sodium intake
in adults United States,
2005-2006 found in the
Morbidity and Mortality
Weekly Report from the
Atlanta-based C.D.C. U.S.
adults consume an average
of 3,466 mg of sodium per day, higher
than the maximum 2,300 mg in the 2005
Dietary Guidelines for Americans.
Given the considerable overcon-
sumption of sodium by most adults
TORTILLA PERSPECTIVE
the American Retail Bakery Exposition,
will be designed for a wider audience
than traditional retail baking events in
the past. Expected participants include
professional bakers, caterers, restau-
rateurs, pastry chefs, cake decorators,
chocolatiers, bakery directors and other
culinary professionals.
All Things Baking will be held in the
years that the International Baking In-
dustry Exposition (I.B.I.E.) is not held.
The I.B.I.E. is a triennial event that
took place this year Sept. 26-29 in Las
Vegas. The next I.B.I.E. event is set for
Oct. 6-9, 2013, in Las Vegas.
More than ever, its imperative that
our industry both suppliers and
bakers are in tune with the chang-
ing tastes, trends and behaviors of the
LAS VEGAS The Retail Bakers of
America, the American Bakers As-
sociation and the Bakery Equipment
Manufacturers and Allieds (BEMA)
on Sept. 27 announced the formation
of a new industry event, All Things
Baking, to be held Oct. 2-4, 2011, at the
Renaissance Schaumburg Hotel and
Convention Center in Chicago.
The event, which will be held in lieu
of the R.B.A.s standalone annual event,
Building on new Expo model, baking
groups unveil plans for annual show
Food Ingredient Solutions
Upcoming
issues
Issue Date
F
E
B
R
U
A
R
Y

7
Closes February2
Product Perspective:
Bread
Regulatory Affairs
Stock Market Analysis
Washington Update
Foods, Inc.,
named William
A. Strenglis
president and
chief operating
officer of the
companys Mrs.
Smiths Baker-
ies unit.
Bunge Ltd. announced Jan. 18
that its board of directors has
approved a primary offering
of common shares.
Charles Freihofer Baking Co.,
part of George Weston Baker-
ies, Inc., laid off 47 workers
and eliminated 10 managerial
positions in its bread opera-
tions at Albany, N.Y.
Dunkin Donuts last week un-
veiled a different look on its pack-
aging with the introduction of a
new DunkinDonuts logo design.
President Reagan told offcials
of the American Farm Bureau
Federation that he would not
consider imposing a selective
grain embargo on the U.S.S.R.
because of the Soviet role in
the imposition
of martial law
in Poland.
Marcus W.K.
Heffelfinger,
Food Group
vice-president
2002
Archive
The joint venture bringing
together the flour milling op-
erations of CHS Cooperatives
and Cargill Inc. has been
finalized. Horizon Milling
L.L.C. will be the name of the
new venture.
Burford Corp.
recently an-
nounced that
Fred Springer
has been named
president of the
company.
The Food and Drug Admin-
istration has issued food se-
curity guidance for industry
to minimize the risk of the
nations food supply being
subjected to tampering or
criminal or terrorist actions.
Rogers Sugar Income Fund
will acquire Lantic Sugar
Ltd., a leading sugar refiner
in eastern Canada.
Archer Daniels Midland Co.
announced that it is closing
the ADM Milling Co. flour
mill in Des Moines, Iowa.
Members of the Kansas City
Board of Trade on Jan. 8
elected Gregory F. Edelblute,
vice-president of grain, Ce-
real Food Processors, Inc.,
Mission Woods, Kas., as the
exchange chairman for 2002.
Amos R. McMullian, chair-
man of the board and chief
exectuive officer of Flowers
at Peavey Company, has an-
nounced plans to retire from
active management July 31.
Dwayne O. Andreas, chair-
man and chief executive
officer of Archer Daniels
Midland Co., Decatur, Ill., has
been elected to the board of
Phibro Corp.
The board of directors of Amer-
ican Bakeries Co. has elected
four new members, including
Joseph V. McGinley, executive
vice-president of operations,
and Henry M. Yoos, newly-
named executive vice-presi-
dent, marketing and sales.
Garry A. Pis-
toria has been
named senior
vice-president
and director
of commodity
marketing for
the Grain Ter-
minal Associa-
tion, effective Feb. 1.
Avon Products Inc. has ac-
cepted for payment 4,839,012
shares of common stock of
Mallinckrodt, Inc., tendered
by Mallinckrodt shareholders
in an offer by AVP Holdings,
Inc., a subsidiary of Avon.
The transaction is part of the
merger agreement between
the two companies.
Harvey Owens, four broker of
Chicago, widely known in the
four and baking industries,
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
has been appointed a consul-
tant in the food supply brand
of the Offce of Production
Management.
Robert P. OBrien of Fort
Wayne, Ind., was named
vice-president,
commercial
feed division,
Pillsbury flour
Mills Co., Jan.
2, according to
an announce-
ment by Philip
W. Pillsbury,
president.
Emma A. Hagaman, 83, presi-
dent of the A. Hagaman and
Co. pie bakers, Albany, N.Y.,
died at her home on Jan. 6.
A dean of the milling indus-
try, Willis C. Helm, who is
vice-president
of the Russell-
Miller Milling
Co., Minneapo-
lis, is expected
to be elected
unanimously
for president
of the Millers
National Federation.
While consumers of the south
have been slow to start us-
ing enriched flour and bread,
they are now beginning to
evince keen interest.
A sharp cut in the price of
thiamine hydrochloride, or
vitamin B1, the principal in-
gredient in enriched four, was
announced last week by the
leading manufacturers. MBN
Springer
1942
Strenglis
Heffelnger
Pistoria
OBrien
Helm
ARTISTRY. Production of one of the
worlds most essential food-stuffs is more than simply an industrial operation. Bartlett
believes superior our milling starts with the skill of the craftsman and progresses
with the creativity of the artist.
Bartlett Milling, a division of Bartlett and Company, serves domestic and inter-
national markets, with mills producing a complete line of soft, hard and spring wheat
ours milled to your exacting specications. Put one of Bartletts master
millers to work for you.
Flour mills located in Statesville and Wilsons Mill, North Carolina and
Coffeyville, Kansas.
BARTLETT AND COMPANY
4900 Main, Suite 1200
Kansas City, Missouri 64112
(816) 753-6300
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

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THE NEWS WEEKLY OF GRAIN-BASED FOODS

ADM-Benson Quinn ..................................12

bakingbusiness.com / world-grain.com Milling & Baking News January 10, 2012 / 7

Late News WEEK OF JANUARY 10

Hal Reed promoted at Andersons

Ending at record high, grain-based

brand provides solutions to markets worldwide.

36 / January 10, 2012 Milling & Baking News bakingbusiness.com / world-grain.com

bakingbusiness.com / world-grain.com Milling & Baking News January 10, 2012 / 39

bakingbusiness.com / world-grain.com Milling & Baking News January 10, 2012 / 41

bakingbusiness.com / world-grain.com Milling & Baking News January 10, 2012 / 43

Van Drunen Farms, Momence, Ill., offers freeze-dried

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.

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THE NEWS WEEKLY OF GRAIN-BASED FOODS

ADM-Benson Quinn ..................................12

bakingbusiness.com / world-grain.com Milling & Baking News January 10, 2012 / 7

Late News WEEK OF JANUARY 10

Hal Reed promoted at Andersons

Ending at record high, grain-based

brand provides solutions to markets worldwide.

36 / January 10, 2012 Milling & Baking News bakingbusiness.com / world-grain.com

bakingbusiness.com / world-grain.com Milling & Baking News January 10, 2012 / 39

bakingbusiness.com / world-grain.com Milling & Baking News January 10, 2012 / 41

bakingbusiness.com / world-grain.com Milling & Baking News January 10, 2012 / 43

Van Drunen Farms, Momence, Ill., offers freeze-dried

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.

Das könnte Ihnen auch gefallen

Milling & Baking News - 2012-01-10

Milling & Baking News - 2012-01-10