ADM forced to raise flour price

25 July, 2008
Page 4 
ADM Milling has announced a flour price increase of £18.20 per tonne. The rise will be effective from 1 September, 2008.
Ian Pinner, ADM managing director, told British Baker that the increase was an essential requirement to address the significant rise in costs that had occurred since September 2005, when ADM Milling last sought to recover an element of increased operating costs.He said: "Over the past three years, our business has been faced with ever-increasing operating costs, particularly diesel fuel and electricity, as well as other general operating costs. The efficiency improvement programmes we have implemented have provided some shelter from these costs over the years, but we cannot continue to absorb them into our business."The price of mineral oil alone has increased dramatically from $60 a barrel since July 2005 to the current price of $145. Subsequently, diesel fuel prices have increased some 50%, which considerably affects the cost of our deliveries."He continued: "In addition to diesel fuel increases the cost of electricity over the same time has increased by a staggering 240%, with forward prices forecast to be higher still, which has had a dramatic effect on the conversion costs of flour manufacturing."Pinner said that ADM Milling, with nine mills across the UK, would continue with efficiency improvements "to provide its customers with the highest levels of quality and service". The increase translates to around 29p on a 16kg sack of flour.Two weeks ago, Alex Waugh, director general of the National Association of British and Irish Millers, said that steeply rising energy prices and other costs had impacted seriously on the grain and milling industries.----=== In Short ===== Research prize == Students from across the globe were given the opportunity to present papers and posters about their research at the recent ICC Cereal and Bread Congress 2008, in Madrid. Student Emma Lynch (pictured), from University College, Cork, received BakeTran's prize for best student poster from Stan Cauvain, director of BakeTran.== More PR for Drench ==Britvic is launching a PR campaign to drive further awareness of its spring water brand Drench. The drinks company is launching the Drench Brain Gym - designed to give the brain a work-out and "enhance mental fitness". The website - at [http://www.staydrenched.co.uk] - will pick up on the Thunderbirds theme from the brand's television ad campaign.== Bakery fined ==The owner of Burgate Bakery in Faversham has been fined £7,250 plus costs after Environmental Health Officers found it breaching food hygiene regulations. It was also convicted of nine offences at Sittingbourne Magistrates Court on Monday, 14 July, following an inspection in February this year.== Tony Phillips ==British Baker columnist Tony Phillips has been diagnosed with a brain tumour. Full tests are being carried out this week. Readers are asked not to phone but to send any cards for Tony and his wife, Barbara, to their home address if known or get in touch with British Baker.



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