Milling & Baking News - May 18, 2004 - 1

Theinewsweeklyiofigrain-basedifoods

Monsanto halts wheat program;
turns focus to other crops
ST. LOUIS - Monsanto Co. announced
May 10 that breeding and field level research on Roundup Ready wheat has been
discontinued and that its introduction of
bioengineered wheat has been deferred.
Comments by a top Monsanto executive
cast at least some doubt as to whether the
company would ever attempt a return to
the bioengineered wheat business.
Research and development at Monsanto
will be realigned "to accelerate the development of new and improved traits in
corn, cotton and oilseeds," the company
said.
Monsanto said the decision to defer the
introduction followed "extensive consul-

LATE

tation" with wheat industry customers,
particularly growers in the United States
and Canada.
Also figuring large in the decision was
a perception by Monsanto that the wheat
market was becoming less and less of an
attractive investment. "Due to the decline
in the size of the spring wheat market,
the business opportunities with Roundup
Ready wheat are less attractive relative to
Monsanto's other commercial priorities,"
the company said.
Carl Casale, executive vice-president of
Monsanto, explained, "Acreage planted
in the spring wheat market in the United
Continued on Page 10

U.S.D.A. projects winter wheat
crop down 9% from last year
WASHINGTON - The National Agricultural Statistics Service of the U.S.
Department of Agriculture on May 12
projected 2004 winter wheat production at
1,550,395,000 bus, down 156,674,000 bus,
or 9%, from 1,707,069,000 bus last year.
If realized, 2004 production would be
56,765,000 bus above the recent five-year
average of 1,494 million bus, which in-

cludes the 2002 crop of 1,137 million bus,
the smallest in 32 years. The U.S.D.A. projection was in line with average pre-report
trade estimates of 1.55 billion bus.
The U.S.D.A. projected lower yield and
harvested area than a year ago. The national average yield of 44.2 bus per acre
was down 2.5 bus from 46.7 bus per acre
Continued on Page 14

Looks good, tastes good, too
The technology of flavor and color enables
creativity and novelty but also can mask offflavors, add uniformity and aid appearance.
Story on Page 17
inside

MAY 18, 2004

bakingbusiness.com / world-grain.com

NEWS
WA S H I N G T O N
- U.S. flour production in the first
quarter of 2004, or
January-March,
increased
0.6%
over a year ago,
aggregating 95,715,000 cwts,
against 95.1 million in the same
quarter of 2003, according to the
U.S. Department of Commerce's
Bureau of the Census. Output in
the quarter was down 4% from
99,686,000 in October-December.
The 24-hour capacity of U.S. mills
in the first quarter was 1,464,000
cwts, down 13,000 from OctoberDecember and down 17,000 from
the first quarter of 2003. Mills in
January-March operated at 84.9%
of six-day capacity compared
Continued on Page 8

Flour output
up 0.6% in
first quarter

New World Pasta files
Chapter 11; obtains
$45 million in financing
HARRISBURG, PA. - New World Pasta
Co. last week filed a voluntary petition
in the U.S. Bankruptcy Court for the
Middle District of Pennsylvania seeking
reorganization under Chapter 11 of the
U.S. Bankruptcy Code. The filing will
enable the company to operate under
the protection of the court while it reorganizes and reduces its debt, strengthens
its financial position and restructures its
balance sheet.
In connection with the filing, New
World Pasta announced that it has obtained a commitment for a $45-million
debtor-in-possession financing facility
Continued on Page 9

THIS WEEK

Sara Lee
cuts further
at Fort
Payne

9

Ingredient

Krispy
Kreme to
sell Montana
Mills

12

Dale Morrison
to helm
of McCain
Foods

30

Week
31
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - May 18, 2004

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