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Value Added Oat Products. William A. Bonner ConAgra Mills July 23, 2006. Outline. Whole Grain Trends Consumer Trends Conventional Value Add Component Values. Whole Grain Trends. Never strayed from whole grain Practical reasons – oil separation. Whole Grain Trends.

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Value Added Oat Products


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    1. Value Added Oat Products William A. Bonner ConAgra Mills July 23, 2006

    2. Outline • Whole Grain Trends • Consumer Trends • Conventional Value Add • Component Values

    3. Whole Grain Trends Never strayed from whole grain Practical reasons – oil separation

    4. Whole Grain Trends Wheat – biggest usage in baking Varieties specific to end product Integrity in finished product Actual amount labeling Milk fat example

    5. Whole Grain Trends Rice – crisped rice to Brown Rice Corn – corn germ shelf life implications Barley

    6. Consumer Data – Hot Cereal Year end 2003 – 352,974,560 # Year end 2004 – 353,750,016 Year end 2005 – 369,195,456 12 Mo 6/18/06 – 370,942,848

    7. Consumer Data – Hot Cereal % Change year ago Year end 2003 – (3.1) Year end 2004 – 0.2 Year end 2005 – 4.4 12 Mo 6/18/06 – 1.0

    8. Consumer Data – RTE Cereal Year end 2003 – 2,223168,000 # Year end 2004 – 2,169,517,056 Year end 2005 – 2,143,369,472 12 Mo 6/18/06 – 2,131,229,568

    9. Consumer Data – RTE Cereal % Change year ago Year end 2003 – (3.3) Year end 2004 – (2.4) Year end 2005 – (1.2) 12 Mo 6/18/06 – (1.0)

    10. Consumer Data – Granola Bars Year end 2003 – 122,563,944 # Year end 2004 – 128,589,464 Year end 2005 – 140,274,288 12 Mo 6/18/06 – 142,443,888

    11. Consumer Data – Granola Bars % Change year ago Year end 2003 – 7.5 Year end 2004 – 4.9 Year end 2005 – 9.1 12 Mo 6/18/06 – 7.1

    12. INDUSTRY ENVIRONMENT CONVENTIONAL OAT MILLING Consumer Trends • Increasingly diverse consumer population creates new eating habits • Chewy granola bars and cereal bars in general strong expansion • Hot cereal consumption renewed. Indicated growth in Hispanic market • Continuing health trends and positive findings for whole grains • Glycemic index and diabetes • Obesity

    13. Glycemic Index Glycemic Indexing is a ranking of foods based on the effect on blood sugar levels • Test foods are compared against glucose solution or white bread on an equal available carbohydrate basis • GI <55 is Low GI(compared to glucose solution=100) • Applicable for carbohydrate-based foodsCrisped rice cereal, GI = 82 White bread, GI = 70 Oatmeal, GI = 58Pasta = 55 Blood Sugar Level Hours

    14. Conventional Value Add • WOG/SCOG Gruel • Flakes • Flavored instant oatmeal • Precooked – heat & serve • Drinks • Smoothie/Vegetable based • Nutraceutical

    15. Conventional RTE Value Add • Whole Grain Product • Functionality

    16. Conventional Flake Value Add • Coated Oats/Grains • Whole grain appearance • Bland toasted background note • Designed textures

    17. Component Value Add • Oat Fiber • Pure clean insoluble fiber • No heart health claim • 80 – 90 % TDF • Relatively bland • Moisture control • Best in conventional baked goods • Oat Cellulose

    18. Component Value Add • Oat Protein – • Hydrolyzed – greater solubility than native • Hair and skin applications • Replace animal derived proteins • Fat binding

    19. Component Value Add • Oat Oil – • Dermatological applications – Linoleic • Emulsification • Antioxidant • Polar, bipolar and non polar lipids

    20. Component Value Add • Oat Starch • Oat Bran • Phytochemical Separations • Colloidal Oatmeal

    21. Value Added Oat Products William A. Bonner ConAgra Mills July 23, 2006