Kraft Foods Profits on Higher Food Prices

Kraft Foods Inc. said its first-quarter profit rose 10 percent in its recent earnings report.

This from the giant foodmaker who blames American agriculture for its need to raise food prices.

The maker of well-known brands as Velveeta, Oreo cookies and Maxwell House coffee says it plans to focus more on its core products where it can make even more money.  

Of course, this means keeping food prices high and blaming others.

Kraft said it earned $660 million, or 45 cents per share in the three-month period ending in March. That compares to a profit of $599 million, or 39 cents per share, a year earlier, when results were dampened by $98 million in restructuring costs.

Last year during high energy prices, Kraft and others at  the Grocery Manufacturers Associations started a a high-priced public relations campaign to blame the higher food costs on American  agriculture and  the renewable fuels industry.

Source: Kraft Foods

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Food Before Profit
http://www.foodbeforeprofit.com

Dean Foods' Profits Soar 72%

There's no need to cry over spilled milk over at Dean Foods. Second quarter profits rose 72%.

With that profit increases, milk shuld be flowing like champagne!

The nation's largest dairy company reported (pdf) second-quarter net income of $48.9 million compared with $28.4 million a year earlier. Sales rose 9% to $3.1 billion due to higher milk and dairy prices.

Although we don't deny any company its just profits, we find yet another leading member of the Grocery Manufacturers Association (GMA) with record-breaking profits.

But all the while, the leaders of the GMA blame higher food prices on the backs of American farmers and supporters of biofuels.

Now THAT"S something to cry about.

Source: Dean Foods

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Food Before Profit
http://www.foodbeforeprofit.com

Kraft's Krafty Profits

Kraft Foods reported its second-quarter profits rose nearly 4%.

The consumer food maker said this week that its profit rose to $732 million, or 48 cents per share, from $707 million, or 44 cents per share, a year earlier.

And Net revenues increased 21.4% to a healthy $11.2 billion.

It's amazing what raising food prices will do to revenue and profits.

What's even more amazing is that Kraft and the Grocery Manufacturers Association have been such critics of biofuels, blaming them primarily for food price increases.

But who's to blame for even higher profits?

Source: Kraft Foods

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Food Before Profit
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Sick from Bad Food? Thank Big Food!

With the recent outbreak of Salmonella sweeping the country, one has to ask, "Why Don't They Know What's Causing the Sickness That's Killing Us"?

First it was suspected to be tomatoes. Now the investigators are targeting jalapeno peppers. But still, no definite answers.

Apparently, the FDA has limited tracking capabilities to determine the source of the bad food.

And why might that be? As they say..."Follow the Money".

According to this AP/MSNBC story, Food Industry Bitten By Its Lobbying Success" the money trail leads back to the Grocery Manufacturers Association and to other leading Big Food companies who used their profits to influence food safety legislation.

The industry pressured the Bush administration years ago to limit the paperwork companies would have to keep to help U.S. health investigators quickly trace produce that sickens consumers, according to interviews and government reports reviewed by The Associated Press.

The list of companies who attended White House meetings to put pressure to water-down food-terrorism regulations reads like a who's-who of Big Food:

• Kraft Foods Inc.;
• The Kroger Co.;
• Safeway Inc.;
• ConAgra Foods Inc.;
• The Procter & Gamble Co.;
• the American Forest and Paper Association;
• the Polystyrene Packaging Council; the Glass Packaging Institute;
• the Cocoa Merchants' Association of America;
• the World Shipping Council; and,
• the Food Marketing Institute.
  

The food groups also spent millions to defend its positions:

"The Grocery Manufacturers Association spent $2.6 million on lobbing in 2003 and 2004, the period when the FDA rules were under consideration, according to federal lobbying records. The Food Marketing Institute spent $1.7 million during the period. The figures were for all lobbying by the trade groups and on their behalf."

The Big Food companies keep more profits but millions are at risk with limited ability to track the source of the contaminated foods. And we the taxpayers get to pick up the bill trying to find out.

Great. And if this had been a purposeful attack on the country, then what? Not eat anything?

For more information on food safety, check out this site, www.foodsafety.gov

Source: MSNBC, FDA

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Food Before Profit
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Poultry Producer Pilgrim Prompts Perry's Political Punch

Or, "How Big Chicken Bought Texas Governor's Action".

In this report on CBSNews.com, it's reported that Texas Governor Rick Perry took action to request a waiver from the RFS after a $100,000 donation was made by Bo Pilgrim of Pilgrims Pride.

The report noted the investigation by the Houston Chronicle:

"Gov. Rick Perry's request for a waiver of federal corn-based ethanol production mandates was prompted by a March meeting he had with East Texas poultry producer Lonnie 'Bo' Pilgrim, who six days later gave $100,000 to the Republican Governors Association chaired by Perry,"

It's no wonder that many American's have such low regard for their elected leaders. Rather than looking at the real issues involved with food costs, the Governor appears to have sided with a political contribution.

Source: CBSNews

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Dean Foods Profits on Higher Dairy Prices

Dean Foods Co. raised its second-quarter earnings guidance on Wednesday, due in part to a strong performance by its direct store delivery dairy segment. Dean Foods is a large milk and dairy products distributor in the US.

The company expects adjusted earnings for the quarter ending June 30 of at least 32 cents per share. The company had previously expected earnings per share between 26 cents and 31 cents.

Dean Foods also confirmed the company's full-year guidance for at least $1.20 per share in adjusted earnings.

What's interesting about this financial update is that the Grocery Manufacturers Association, which Dean Foods is a leading member, blames American biofuels for higher food prices.

It's clear that higher profits are playing a key part of the food inflation story.

Source: Dean Foods

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ConAgra Foods Profits on Higher Prices

Profiting on higher prices appears to be good for food manufacturers.

ConAgra Foods, Inc., a leading member of the Grocery Manufacturers Association, reported its results for the fiscal 2008 fourth quarter. Overall sales grew 15% and fourth-quarter net income rose 4.8%

Gary Rodkin, chief executive officer of ConAgra Foods commented about the strong results, “In fiscal 2008, we made progress in several important areas of our company, most notably pricing, the innovation pipeline, more effective marketing, and efficiencies.

He went on to say, "we have an even greater focus on successfully executing the initiatives in our core food operations, as well as a much stronger foundation on which to deliver predictable and sustainable profitable growth going forward.”

The Grocery Manufacturer Association and its members have been strong critics of America's move to biofuels. But it's clear this is just a calculated distraction to record profits and justify higher food prices.

Source: ConAgra Foods

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Food Before Profit
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