Industry News

Some 32% of U.S. consumers already significantly reduced discretionary spending because of rising gas prices, according to the monthly RBC Consumer Outlook Index. About 18% claim they would reduce spending if gas prices climb to $3.75 per gallon. Approximately 41% will reduce spending at $4.00 per gallon or more. Full Story

Costco discussed implementing food price increases during its second-quarter earnings conference call. The company absorbs increases at first, "realize[s] a lower margin for several weeks or a few months and then finally bring[s] it up to that next level," according to its CFO, reported Bloomberg BusinessWeek. Full Story

The Coca-Cola Co. is bringing its Freestyle fountain system to Taco Time restaurants in the Seattle area. The first will go into service Mar. 9, reported The Seattle Times. Full Story (Free Registration Required)

Kellogg Company will purchase GreenPalm certificates covering 100% of its global palm oil use. The company intends to purchase sustainable palm oil once a segregated palm oil supply is available that is financially and logistically feasible. Full Story

Tate & Lyle's top food and beverage trends in 2011 are: Simplicity, Stealth Sugar and Calorie Reductions is the new Mid Calorie, One Product, Multiple Benefits and Restaurant Quality at Home. Full Story

Latest sales & earnings for food related companies (Updated Daily - FI Membership Required)

Food Institute News

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International News

Major grain importing countries are set to build more storage silos and expand strategic stocks. Egypt, South Korea and Saudi Arabia are among nations that unveiled strategic plans as grain markets adjust to the prospect of further supply crunches over the next few years, reported Reuters. Full Story

NEED HELP COMPLYING WITH THE BIOTERRORISM ACT? A convenient reference source and guide to the Bioterrorism Act, as well as federal regulations and policies implementing the Bioterrorism Act, is available from The Food Institute. Authored by Olsson, Frank & Weeda, P.C., this guide can assist U.S. and foreign food industry users in understanding not only the strict legal requirements, but also FDA’s findings, conclusions, and views as set forth in rulemaking preambles and other documents. For more information or to order the book, click here.

George Weston Ltd. will raise prices by an average of 5% starting Apr. 1. More price increases could be in the pipeline for later this year if commodity costs continue to climb, reported The Globe and Mail. Full Story (Free Registration Required), Full Release

The Daily Update is a substantially abbreviated version of Today In Food. You can get a subscription to Today In Food, which usually has over 30 news items each day, as well as access to the archives for just $49.95 per year. Click here to sign up.

Washington News

President Obama and Mexican President Calderon revealed a plan to resolve the cross-border long-haul trucking dispute. Once a final agreement is reached, Mexico will suspend its retaliatory tariffs in stages beginning with reducing tariffs by 50% at the signing of an agreement and will suspend the remaining 50% when the first Mexican carrier is granted operating authority under the program. Mexico will terminate all current tariffs once the program is normalized. Full Story

Subsistence contracting officials at the Department of Defense reportedly did not provide sufficient oversight of contract costs and performance for the food products vendor for Afghanistan, according to a report from the Inspector General. The review showed that troop support personnel overpaid the prime vendor potentially $98.4 million in transportation costs and paid $454.9 million to the prime vendor for airlifting fresh fruit and vegetables without incorporating the airlift requirement in the contract and without documenting whether the airlift price of $3.74 per pound was fair and reasonable. Full Report

Market News

Honey production in 2010 from producers with five or more colonies totaled 176 million-lbs., up 20% from 2009, according to NASS. There were 2.68 million colonies producing honey in 2010, up 7% from 2009. Honey prices increased to a record high during 2010 to 160.3 cents per pound, up 9% from 2009. Full Report