Milling & Baking News - November 23, 2004 - 7

E D I T O R I A L

NAMA brings focus to improving milling environment

n looking for a way to describe this year's annual
convention of the North American Millers' Association, the idea that keeps coming to mind is that millers
reflected great hope about the industry's outlook, while
not overlooking the difficult several years that had gone
before. Flour production numbers all seem to point to stability in consumption, hinting of an end to the disastrous
downward course that had hit just as the 21st century
began. If an industry could be happy with stability, in an
era when talk of growth dominates assessments of business, then millers were glad to prove how such a condition should be treated as a welcome change. Furthermore,
millers seemed intent to prove that an industry that for
several years experienced attacks from many different
quarters cannot only regain its equilibrium, but also may
regard its prospects in a favorable light.
The positive perspectives at this year's convention,
which was held at a brand new resort on Kiawah Island,
sitting on South Carolina's Atlantic coast, did not solely
stem from a modest turn in the flour data. Of equal importance was the propitious timing that had the convention
coincide with the launch of the campaign of the newlyestablished Grain Foods Foundation. As important contributors to the budget of the new Foundation, millers had
every reason to be optimistic about this effort and to reflect
pride in their participation and leadership in joining in the
new Foundation. The optimism also stemmed from how
NAMA had actively responded to important initiatives
like revising the Dietary Guidelines for Americans. Several lead participants in the newly-launched Foundation
outlined these plans at the convention. What they said was
not just music to millers' ears, but provided a measure of
confidence that this approach is capable of countering the
outrageous blows grain-based foods has suffered.
It also was no surprise that the apparent turn in the flour
disappearance numbers as well as striking evidence that
consumer enchantment with low-carbohydrate fads like
the Atkins diet was rapidly disappearing prompted a few
millers to wonder about the need for continued support
of the Grain Foods Foundation. Such doubts, though,
prompted quick response from the NAMA leaders who
had been front and center in starting this unique industrywide effort. The most telling answer derived from considering just how much the industry has lost, in volume and
in potential earnings, from the falls that have occurred in
total and per capita flour consumption during the prior
three years. The Foundation program is aimed not just at
halting the negative influences, but, even more important,
at re-capturing the central role that grain-based foods enjoyed in the American diet for most of the 20th century.
Even the faint possibility of regaining some of that lost
ground more than recoups the modest investment being
made in funding the Grain Foods Foundation.

Strong and committed leaders
No one presented that case more convincingly than
the man who headed NAMA as its chairman for the two
years ended with the 2004 convention. John Gillcrist,
who heads milling operations of Bartlett & Co., made focusing on consumption-related issues the central theme
of his chairmanship. In many ways, his understanding
of the need for the industry to face up to how it was going to defend itself, first, and then to launch an offensive,
wrote a new chapter in the brief history of NAMA (it
was formed in 1998) and also in the previous long and
bakingbusiness.com / world-grain.com

distinguished history of the predecessor Millers' National Federation. It was Mr. Gillcrist who identified the
horrendous cost to milling, and also to baking, from the
usage decreases. For millers, he drove his point home
by observing that the consumption loss still negatively
affected milling margins even as industry companies
sought to compensate by reducing production capacity.
Mr. Gillcrist, the third chairman in NAMA's history,
gave no ground as he led the organization in addressing
consumption issues, as well as the possibilities of encouraging the government to acknowledge the significant role
of grain-based foods in foreign aid. And while his chairmanship was notable for how he made sure that NAMA's
resources were focused on these two matters, he also won
high praise for the way he energized other millers to take
roles in the organization's many activities.

Look also to opening export markets
Even while saying that the Executive Committee
should evaluate the NAMA agenda to assure that it
is in line with the wishes of member companies, Mr.
Gillcrist's successor as chairman, Guy Shoemaker, president of Horizon Milling L.L.C., leaves no doubt that he
strongly endorses the activities of the Grain Foods Foundation. As head of one of the world's largest flour milling enterprises and as a longtime executive of Cargill,
Incorporated, Mr. Shoemaker brings to the helm someone who grew up in flour milling, starting as an accountant and attaining the industry's pinnacle of leadership.
As he indicated in an interview with this magazine, he
believes milling has a bright future, but emphasized that
it is one tied to innovation in products, to helping customers develop new ways of attracting consumers, and
to seeing milling and the flour it produces as the basis
for building a position across the entire food industry.
Because of his background with an enterprise that has
extended its operations into every corner of the world, it
is likely that Mr. Shoemaker will reinforce the focus on
building domestic demand by looking to ways to open
up international markets. While expanding food aid will
continue to be an important NAMA issue, realism in understanding budgetary pressures also must be taken into
account. For Mr. Shoemaker, NAMA needs to press hard
in support of liberalized trade through a commitment to
eliminate export subsidies and import tariffs. That would
open great opportunities for efficient American milling.
Neither Mr. Gillcrist nor Mr. Shoemaker, nor any
other leader of milling, was heard at this year's convention advocating a go-slow approach now that domestic
demand appears to have stabilized. It is apparent that
some millers are doing a better job of improving end
results in a time of stable markets than others. Of course,
expanding domestic and export demand offers the
greatest chance for gains. Yet, no one expects an immediate and dramatic reversal to eliminate the costly losses
of the past three years.
Making do with a market in equilibrium stands as
the immediate task facing flour milling executives. Success in that respect depends primarily on the effectiveness of the strategies and the management abilities of
executives heading individual companies. Millers who
attended this year's NAMA convention came away impressed that their association is as alert and as committed as it has ever been to seeking ways to improve the
environment in which its members operate. MBN
Milling & Baking News, November 23, 2004 / 7

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - November 23, 2004

Table of Contents for the Digital Edition of Milling & Baking News - November 23, 2004