April 15, 2011

Industry News

HP Hood LLC entered into an agreement in which Dairy Farmers of America would become the 100% equity owner of Kemps LLC. Kemps manufactures and markets milk, ice cream and other dairy products under brands including Kemps, Hood, Hagan, Green's and Arrowhead, reported TwinCities.com. Full Story (Free Registration Required)

Global food prices are 36% above their levels a year ago and remain volatile due in part to higher fuel costs connected to events in the Middle East and North Africa, according to The World Bank. Key increases compared to a year ago include maize (74%), wheat (69%), soybeans (36%) and sugar (21%), although rice prices have been stable. Full Story

Kraft Foods Inc. will begin selling its Gevalia coffee at supermarkets and other U.S. retailers in August. Gevalia has worldwide revenue of about $400 million a year. It is the No. 1 coffee brand in Sweden, its home market, reported Reuters. Full Story

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

Nutresa will begin sourcing Canadian wheat in place of U.S. wheat as wheat imports from Canada will go to zero duty under the Colombia-Canada free trade agreement. Nutresa's wheat consumption represents 50% of total Colombian wheat imports. In 2010, the U.S. supplied 683,000 tons of the Colombian total wheat imports of 1.4 million tons, noted FAS. FAS Report

Washington News

Georgia's Legislature approved a crackdown on illegal immigration, with the Senate adopting the bill by a 37 to 19 vote and the House giving final approval on a 112 to 59 vote. The bill now goes to Gov. Nathan Deal for his signature. The bill would create new requirements for many Georgia businesses to ensure new hires are eligible to work in the U.S., reported The Atlanta Journal-Constitution. Full Story (Free Registration Required)

FDA is seeking public comment on a proposed collection of certain information by the agency, "Experiment to Evaluate Risk Perceptions of Produce Growers, Food Retailers, and Consumers After a Food Recall Resulting From a Foodborne Illness Outbreak." The research will be used to assess how grower, retailer and consumer perceptions, attitudes, knowledge and beliefs affect market recovery after a hypothetical fresh spinach recall. Full Notice

Community Catalyst, Consumer Federation of America, Consumers Union, the National Legislative Association on Prescription Drug Prices and U.S. Pirg wrote a letter to FTC's chairman calling for the breakup of CVS Caremark, reported The New York Times on the Web. Full Story (Free Registration Required), Full Letter

The National Consumers League asked FDA to warn the food industry that claims implying that products are made from fresh ingredients when they are actually made from concentrate are deceptive under federal law. NCL also reiterated its request that FDA require that all fruit and vegetable products remanufactured from concentrate state "From Concentrate" on the fronts of food packages. Full Story

Market News

U.S. beef exports in 2011 are forecast to be 176 million-lbs. greater than 2010 at 2.48 billion-lbs. Year-over-year growth is expected to decline as the year progresses and less U.S. beef becomes available for exports. Counter to exports, U.S. beef imports should increase as the year progresses, with strong growth forecast in the final quarter of this year. In total, 2.24 billion-lbs. are forecast to be imported in 2011. ERS Report

Asparagus volumes will likely remain very tight, even after the traditional Easter peak, stated a salesman for Greg Paul Produce. In the leadup to Mother's Day on, California asparagus prices will likely remain in the $48 to $55 per-box range, not much lower than their pre-Easter highs. Washington could have some product in the pipeline by early May, but a cycle of warm weather, followed by freezes, could limit early production there, reported The Packer Online. Full Story

The cost of ammonium nitrate fertilizer increased 130% to $450 a ton since 2002. Nitrogen fertilizer is the biggest or second-biggest expense for most American farmers, according to the director of research at the Iowa Corn Growers Association. Seed scientists have been attempting to build nitrogen-efficient corn stalks for at least five years, but "super corn" is believed to be five to 10 years away, reported Bloomberg.com. Full Story

Flooding in parts of Western Canada's grain belt, including Manitoba, Saskatchewan and Alberta, is pushing spring seeding about two weeks behind schedule. Yields will fall if farmers are unable to get their seeds in the ground within the next two weeks, reported The Globe and Mail. Full Story (Free Registration Required)

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