Food Business News - Apr 26, 2005 - (Page 1)

FoodBusinessNews April 26, 2005 NEWS, MARKETS AND ANALYSIS FOR THE FOOD PROCESSING INDUSTRY Nestle c.e.o. elected chairman A pyramid for our time Interactive food guidance graphic unveiled by U.S.D.A. 12 Trends: Seeking growth in frozen meals 28 New products: Mott's Plus for Kids WASHINGTON - Completely remodeling the government's food guidance system graphic, Secretary of Agriculture Mike Johanns last week unveiled MyPyramid. MyPyramid replaces the Food Guide Pyramid introduced in 1992. The new image, part of an Internet-based interactive system, is simpler in appearance than the original. Seeking to replace the clutter of the previous image, the new pyramid replaces stacks of tiny food product images with six, simple color bands, repre- senting the five food groups and oils. While the 1992 pyramid piled the food groups on top of one another, the bands are lined up from left to right, each touching the top and bottom of the MyPyramid. "We tipped the pyramid on its side," the U.S.D.A. explained. Commenting on the need for change, Mr. Johanns repeated the observation that the 1992 pyramid is widely recognized but its dictates are widely misunderstood or ignored. "It became clear that we needed to do a better job of communicating the nutrient messages so that Americans could Continued on Page 16 36 MARKET WATCH Low trans fat cottonseed and corn oil price declines small versus soy. Fueling uncertainty The food industry is struggling with rising energy costs During the North American Meat Processors Association's annual meeting, held this past October in Albuquerque, N.M., a member joked that he knew gas prices were getting high when the kid who cuts his lawn added a fuel surcharge to his bill. Six months later the issue of rising energy costs is no longer a joke. Fuel surcharges have become commonplace, and food processors as well as distributors are struggling to manage costs. Rising energy prices are having an impact throughout the farm-to-table food production continuum. While the media has focused on the per gallon price of gas and the price of a barrel of crude oil, the cost of natural gas and electricity have gone up as well. The result has been a drain on food industry resources. "You have to separate commodity agricultural processors (C.A.P.) from the packaged food companies (P.F.C.)," said Wesley E. Moultrie II, senior director of corporate finance for Fitch Ratings, Chicago. "CAPs have greater energy needs because of the intensity in processing agricultural commodities and their margins are lower. As a result, they are more impacted by higher energy costs. "Our expectation is, should energy costs Continued on Page 30

Table of Contents for the Digital Edition of Food Business News - Apr 26, 2005


Food Business News - Apr 26, 2005