ConAgra Mills and MGP Ingredients sign flour supply agreement

Nov 07, 2008 (Datamonitor via COMTEX) -- ConAgra Mills, a brand of ConAgra Foods, and MGP Ingredients have signed a new, long-term flour supply agreement.

In line with this, MGP Ingredients (MGPI) will source flour for its value-added wheat protein and starch ingredients exclusively from ConAgra Mills.

As part of the agreement, ConAgra Mills will take over wheat sourcing, production, risk management, quality control, logistics and transportation for the MGPI raw material. ConAgra Mills will provide flour to MGPI from select facilities in its US mill manufacturing network.

Tim Newkirk, president and CEO of MGPI, said: "We will focus on customers and our core business moving forward. Our strategy is to outsource part of the production in an effort to counter the effects of high input costs and volatile grain markets. Very simply put, wheat milling as a component of our overall ingredient solutions value chain is not a step in which MGPI can uniquely create value."


http://www.datamonitor.com