Milling & Baking News - April 25, 2006 - 8

E D I T O R I A L

Career of Daniel Amstutz follows amazing path

he death of Daniel G. Amstutz writes close to a career that was important to the story of the international grain industry in the past half century. From
an amazing array of platforms, Mr. Amstutz did the international grain industry proud. No matter what post he
held he was always quick to point to his world-circling experiences and to call upon the knowledge derived from his
many industry assignments. His successes affirmed that
an understanding of markets, how they work and how
they may best be used, stands a person in good stead.
Knowing Mr. Amstutz, particularly as a friend,
meant having a tie with a person who uniquely defined
the word, mentor. Although his multi-pronged career
never embraced the profession of teaching, hearing an
Amstutz presentation or having a regular conversation
quickly made the listener aware of his formidable intellect, as well as his keen curiosity.
His career was almost as if he had made the decision to
divide his life between the world of business and public service. In both aspects he proved extraordinarily capable. After
graduating from the Ohio State University in 1954, he joined
Cargill Incorporated, where he began in grain trading, eventually heading the wheat desk. The latter position provided
him with numerous stories he delighted in relating. He
played a lead role in establishing Cargill Investor Services.
He was persuaded to join Goldman, Sachs & Co. by its top
management who, having bought a metals trading company, were looking for someone to provide direction about
ways to operate in futures. Once more, Mr. Amstutz proved
his mettle by showing this investment banking powerhouse
how futures trading could create many opportunities.
His entry into government came in 1983 when he accepted the invitation of the Reagan administration to become undersecretary of agriculture. Working with two
agriculture secretaries, John Block and Richard Lyng,
Mr. Amstutz endured one of the most perplexing times
ever in federal dealings with agriculture. That administration and the Congress, faced with record grain surpluses, depressed prices and an agricultural recession,

embarked on costly programs like export enhancement,
conservation reserve, and payment-in-kind.
It was the importance of agricultural negotiations under the General Agreement on Tariffs and Trade, the now
famous Uruguay Round, that gave Mr. Amstutz his exit
from the U.S.D.A. He was named ambassador responsible
for agricultural negotiations. That this was the first GATT
negotiation to produce progress in liberalizing agricultural
trade was often credited to Mr. Amstutz. His next assignment, as executive director of the International Wheat
Council in London, was a natural follow-on. Heading the
I.W.C. (now the International Grains Council) secretariat
for five years, he expanded its coverage beyond wheat to
rice and coarse grains, he launched the annual grain conferences, and he set a path for expanding the membership.
His multi-faceted career was brightened when he became executive director of the North American Export
Grain Association, a post he held for six years until retiring in 2000. At NAEGA, he pressed for U.S. policies meant
to foster growth in exporting at a time when global trade
was being transformed. He made sure that every possible
avenue for doing business was open to American exporters. Having established his own consulting company to
participate in the Internet boom, Mr. Amstutz ran headlong into the web bubble. This dismal experience made
him willing to accept what probably was the most daunting of his assignments, serving as agricultural adviser to
the American military in Iraq. His time in Baghdad made
him aware that restoring Iraq's food system required reestablishment of domestic tranquility.
This recital of the Amstutz career leaves no doubt as to
his centrality in the evolution of the international trade in
grain. Always pleased and even proud to be called a "grain
man," Dan Amstutz helped make a firm path for all who
follow him in this great industry. It was Anthony Trollope,
the English 19th century novelist, who wrote in his Autobiography, "Few men I think ever lived a fuller life." The
same could be said of Mr. Amstutz, whose life crisscrossed
the grain industry perhaps more than any other.

Food knowledge only on outside not sufficient

uch, if not most, of the strategic planning currently under way at grain-based foods companies
making consumer products is centered on meeting demand for foods that satisfy expanding preference for
health and wellness. It is the rare new product that does not
fit within this category, some directly and others in a tenuous manner. Yes, marketing successes are being achieved
with the rare item that has captured demand in spite of its
high content of ingredients most research would show consumers say they should avoid. When an 800-calorie honey
bun is a best-selling item, executives quickly comprehend
that what consumers say and what they practice do not always agree at the moment of purchase or consumption.
Food manufacturers and food retailers of every stripe
are driven by the perception that consumers want products that match what is required for excellent nutrition
while avoiding the causes of obesity and poor health.
James Keyes, retired chief executive of 7-Eleven, Inc., told
the spring meeting of the American Bakers Association
that the Atkins diet, while perhaps not surviving as a limit
on carbohydrates, did effect a revolution in the perception
of Americans about foods. According to Mr. Keyes, the
Atkins diet craze is responsible for people caring for the
bakingbusiness.com / world-grain.com

first time about what they eat, for wanting more of some
foods and less of others. While crediting these consumer
attitudes to Dr. Robert Atkins may be difficult, most food
manufacturers do believe consumers are more aware.
As soundly based as is the belief consumers care about
food quality, recent research shows these attitudes do
not stem from real knowledge. Research by Yankelovich
Inc., a marketing consulting group, has revealed "nutritional illiteracy of epic proportions." It says that while
people believe they are responsible for what they eat
and for avoiding obesity, "they are stymied by their inability to properly understand labels and basic nutrition
facts." People understand the desirability of foods that
are whole grain, high in fiber, low in cholesterol and low
in fat, but they do not comprehend labels.
A Yankelovich executive described the problem exactly
when he said, "On the outside it appears nutritional messages are getting through, but on the inside, it's hollow."
The conclusion is that devising ways to educate consumers to understand labels and content information is going
to be a promising way to boost consumption. After all,
grain-based foods already has the upper hand as to what
people believe "on the outside" they should eat. MBN
Milling & Baking News, April 25, 2006 / 9

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Milling & Baking News - April 25, 2006

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