Milling & Baking News - February 7, 2004 - 1

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Bush budget calls for creation
of new food security initiative
WASHINGTON - An interagency initiative to improve the federal government's
capability to rapidly identify and characterize a bioterrorist attack on food was proposed in the Bush administration's budget
package for ﬁscal 2005.
The increased funding for food and
agriculture security in the president's $2.4trillion budget was in contrast to a cut of
8% in overall spending proposed in the
U.S. Department of Agriculture and a 2%
reduction at the Department of Health and
Human Services.
Among other agencies slated for spending cuts in the budget were the Environmental Protection Agency and the Depart-

N E W S

LATE

ments of Transportation and Justice.
The food security initiative would involve the Food and Drug Administration,
the U.S.D.A. and the White House Homeland Security Council.
"This proposal represents the next step
in our comprehensive food security strategy," said F.D.A. Commissioner Mark B.
McClellan. "The additional resources will
allow us to continue our efforts to give
Americans the most protection possible
from deliberate or accidental food risks."
Under the budget proposal, the F.D.A.
would receive an additional $65 million
to boost its food security activities. That
Continued on Page 20

F E A T U R E

'Normal' world weather could mean
lower wheat prices ahead

actors that fed volatility and supplied upward price momentum to
U.S. wheat futures markets in recent
months soon could be overshadowed by
a more normal global crop year in 2004,
analysts interviewed by Milling & Baking
News said. Huge grain imports by China
could take a backseat to world weather
patterns as the 2004-05 crop year develops.
If weather in key world wheat growing regions proves "normal," which, admittedly
is a big "if," wheat futures prices could
decline through the next year, the analysts
suggested.
By the time the U.S. winter wheat harvest is under way in June, nearby futures
could be in the $3.50-per-bu range on the
Chicago Board of Trade and the Kansas
City Board of Trade and in the $3.50 to
$3.55 range on the Minneapolis Grain

Exchange, said Paul Meyers, vice-president, commodity analysis, Connell &
Company, Berkeley Heights, N.J.
Steve Freed, vice-president, ADM
Investor Services, Chicago, also voiced
a bearish price outlook. Mr. Freed, too,
projected $3.50 per bu at harvest for the
Chicago July wheat future, with a small
premium to that price for the K.C.B.T.
July and a larger, perhaps 15c, premium
in the case of the M.G.E. July. Mr. Freed
expected prices to trend lower as the year
progresses, down to the $2.90 to $3.20
range in the third quarter and $2.70 to
$2.80 in the fourth quarter of 2004.
Wheat futures prices could remain
strong through March, though, depending
on weather in the western High Plains and
exports, before trending lower, the analysts
Continued on Page 23

inside

FEBRUARY 10, 2004

NEWS
THOMASVILLE,
GA. - Capped by
solid fourth-quarter proﬁts, Flowers
Foods, Inc. in the
year ended Jan. 3
achieved dramatically improved ﬁnancial results
over 2002. Flowers net income
in 2003 was $14,658,000, equal
to 32c per share on the common
stock, compared with a loss of
$16,955,000 in 2002. Sales were
$1,452,995,000, up 9%. In the
fourth quarter, Flowers net income was $17,203,000, or 37c per
share, compared with a loss of
$9,852,000 in the fourth quarter
of 2002. Sales were $348,075,000,
up 14%. Results for 2002 included charges related to the discontinued dessert operations of the
Continued on Page 10

Flowers ends
'03 with
proﬁt surge

Plaza Belmont
enters Mexican
food business
SHAWNEE MISSION, KAS. - An investment group led by Plaza Belmont Fund II
L.L.C., a private equity fund specializing
in the acquisition of food companies, on
Jan. 30 purchased the assets of Casa de Oro
Foods from ConAgra Foods, Inc., Omaha.
Now named Casa de Oro Foods L.L.C.,
the company is a manufacturer of ﬂour
tortillas, corn tortillas, corn tortilla chips,
taco shells, pizza crust and other ﬂat bread
products. The company also makes lowcarbohydrate tortillas, ﬂavored tortillas
and taco and fajita kits.
John T. Stout Jr., chief executive ofﬁcer
Continued on Page 11

THIS WEEK

Paterakis
family buys
balance of
Schmidt

Ingredient

Gold Medal
Bakery
president
dies at 58

Soft red
winter scab
damage
reviewed

Week
30

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Milling & Baking News - February 7, 2004

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