1

 The information and analysis provided in this report are for the purposes of this report only.

Nothing in this report should be construed to indicate how the Commission would find in an

investigation conducted under statutory authority covering the same or similar subject matter.

i

PREFACE

In 1991 the United States International Trade Commission initiated its current Industry and

Trade Summary series of informational reports on the thousands of products imported into

and exported from the United States. Each summary addresses a different

commodity/industry area and contains information on product uses, U.S. and foreign

producers, and customs treatment. Also included is an analysis of the basic factors affecting

trends in consumption, production, and trade of the commodity, as well as those bearing on

the competitiveness of U.S. industries in domestic and foreign markets.1

This report on bakery products covers the period 1998 through 2002. Listed below are the

individual summary reports published to date on the agriculture and forest products sectors.

USITC

publication

number Publication date Title

2459 November 1991 . . . . . . . . . . . . . . Live Sheep and Meat of Sheep

2462 November 1991 . . . . . . . . . . . . . . Cigarettes

2477 January 1992 . . . . . . . . . . . . . . . . Dairy Products

2478 January 1992 . . . . . . . . . . . . . . . . Oilseeds

2511 March 1992 . . . . . . . . . . . . . . . . . Live Swine and Fresh, Chilled, or

Frozen Pork

2520 June 1992 . . . . . . . . . . . . . . . . . . . Poultry

2544 August 1992 . . . . . . . . . . . . . . . . . Fresh or Frozen Fish

2545 November 1992 . . . . . . . . . . . . . . Natural Sweeteners

2551 November 1992 . . . . . . . . . . . . . . Newsprint

2612 March 1993 ................. Wood Pulp and Waste Paper

2615 March 1993 . . . . . . . . . . . . . . . . . Citrus Fruit

2625 April 1993 . . . . . . . . . . . . . . . . . . Live Cattle and Fresh, Chilled, or

Frozen Beef and Veal

2631 May 1993 . . . . . . . . . . . . . . . . . . . Animal and Vegetable Fats and Oils

2635 June 1993 . . . . . . . . . . . . . . . . . . . Cocoa, Chocolate, and

Confectionery

2636 May 1993 . . . . . . . . . . . . . . . . . . . Olives

2639 June 1993 . . . . . . . . . . . . . . . . . . . Wine and Certain Fermented

Beverages

2693 October 1993 . . . . . . . . . . . . . . . . Printing and Writing Paper

2702 November 1993 . . . . . . . . . . . . . . Fur Goods

2726 January 1994 . . . . . . . . . . . . . . . . Furskins

2737 March 1994 . . . . . . . . . . . . . . . . . Cut Flowers
ii

PREFACE—Continued

USITC

publication

number

Publication

date Title

2749 March 1994 . . . . . . . . . . . . . . . . . Paper Boxes and Bags

2762 April 1994 . . . . . . . . . . . . . . . . . . Coffee and Tea

2859 May 1995 . . . . . . . . . . . . . . . . . . . Seeds

2865 April 1995 . . . . . . . . . . . . . . . . . . Malt Beverages

2875 May 1995 . . . . . . . . . . . . . . . . . . . Certain Fresh Deciduous Fruits

2898 June 1995 . . . . . . . . . . . . . . . . . . . Certain Miscellaneous Vegetable

Substance and Products

2917 October 1995 . . . . . . . . . . . . . . . . Lumber, Flooring, and Siding

2918 August 1995 . . . . . . . . . . . . . . . . . Printed Matter

2928 November 1995 . . . . . . . . . . . . . . Processed Vegetables

3015 February 1997 . . . . . . . . . . . . . . . Hides, Skins, and Leather

3020 March 1997 . . . . . . . . . . . . . . . . . Nonalcoholic Beverages

3022 April 1997 .................. Industrial Papers and Paperboards

3080 January 1998 . . . . . . . . . . . . . . . . Dairy Products

3083 February 1998 . . . . . . . . . . . . . . . Canned Fish, Except Shellfish

3095 March 1998 ................. Milled Grains, Malts, and Starches

3096 April 1998 .................. Millwork

3145 December 1998 . . . . . . . . . . . . . . Wool and Related Animal Hair

3148 December 1998 . . . . . . . . . . . . . . Poultry

3171 March 1999 . . . . . . . . . . . . . . . . . Dried Fruits Other Than Tropical

3268 December 1999 . . . . . . . . . . . . . . Eggs

3275 January 2000 . . . . . . . . . . . . . . . . Animal Feeds

3350 September 2000 . . . . . . . . . . . . . . Grain (Cereals)

3352 September 2000 . . . . . . . . . . . . . . Edible Nuts

3355 September 2000 . . . . . . . . . . . . . . Newsprint

3373 November 2000 . . . . . . . . . . . . . . Distilled Spirits

3391 January 2001 . . . . . . . . . . . . . . . . Cotton

3461 October 2001 . . . . . . . . . . . . . . . . Cured Fish

3463 October 2001 . . . . . . . . . . . . . . . . Fresh or Frozen Fish

3490 February 2002 ............... Wood Pulp and Waste Paper

3576 February 2003 . . . . . . . . . . . . . . . Oilseeds

3579 February 2003 . . . . . . . . . . . . . . . Live Sheep and Meat of Sheep

3580 February 2003 . . . . . . . . . . . . . . . Cut Flowers

3592 April 2003 . . . . . . . . . . . . . . . . . . Pasta
iii

CONTENTS

Page

Preface ................................................................... i

Abstract ................................................................. 1

Introduction ........................................................... 3

U.S. industry profile ................................................. 3

Commercial and retail bakeries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Capacity and capacity utilization .......................................... 5

Frozen cakes, pies, and other pastries manufacturers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Capacity and capacity utilization .......................................... 6

Cookie and cracker manufacturers ........................................... 7

Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Capacity and capacity utilization .......................................... 7

Flour mixes and dough manufacturers ........................................ 8

Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Capacity and capacity utilization .......................................... 8

Tortilla manufacturers ..................................................... 9

Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Capacity and capacity utilization .......................................... 9

Marketing practices and prices .............................................. 9

Channels of distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Prices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

U.S. market ............................................................ 12

Consumer characteristics and factors affecting demand . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Commercial and retail bakery products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Frozen cakes, pies, and other pastry products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Cookie and cracker products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Mixes and dough products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Tortilla products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

U.S. shipments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Factors affecting production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Energy and other manufacturing costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Labor costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Wheat and wheat flour costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Sugar costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Other ingredient costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Production process and technology changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
iv

CONTENTS—Continued

Page

U.S. trade ............................................................... 21

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

U.S. imports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Principal suppliers and import levels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

European Union . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

U.S. trade measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Tariff and nontariff measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

U.S. exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Foreign trade measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Bakery products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Mixes and dough products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Foreign investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Foreign market and industry profiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

European Union . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Appendixes

A. Explanation of tariff and trade agreement terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1

B. Statistical tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-1

Figures

1. Channels of distribution for the U.S. bakery products industry . . . . . . . . . . . . . . . . . . . . . . . . 10

2. Trends in U.S. shipments of bakery products, 1998-2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

3. U.S. imports for consumption of all bakery products, by major sources, 1998-2002 . . . . . . . . 22

4. U.S. imports for consumption of bread, cake, and pastry products, by major sources,

1998-2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

5. U.S. imports for consumption of cookie and cracker products, by major sources,

1998-2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

6. U.S. imports of bakery products from Canada, by selected product types, 1998-2002 . . . . . . 24

7. U.S. imports of bakery products from the EU, by selected product types, 1998-2002 . . . . . . . 26

Tables

B-1. Bakery products industry: Number of establishments, employment, and value of

shipments, 1998-2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-3

B-2. Bakery products: Selected consumer price index data, January 1998-December 2002 . . . . B-4

B-3. White pan bread prices, selected major U.S. cities, 1998-2001 ...................... B-5
CONTENTS—Continued

Page

v

Tables—Continued

B-4. Bakery products: U.S. shipments, U.S. exports of domestic merchandise, U.S.

imports for consumption, U.S. apparent consumption, and merchandise trade

balance, 1998-2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-5

B-5. Cookie and cracker products: U.S. shipments, U.S. exports of domestic merchandise,

U.S. imports of consumption, U.S. apparent consumption, and merchandise trade

balance, 1998-2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-5

B-6. Mixes and dough products: U.S. shipments, U.S. exports of domestic merchandise,

U.S. imports for consumption, U.S. apparent consumption, and merchandise

trade balance, 1998-2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-5

B-7. Bakery products industry: Cost of materials, value of shipments, and ratio of cost

of materials to shipments, 1998-2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-6

B-8. U.S. wheat: Prices of hard red winter, soft red winter, and hard red spring wheat, in

selected U.S. cities, June 1997-Feb. 2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-7

B-9. U.S. domestic production of wheat flour, 1997-2002, and bakery flour prices, in

selected U.S. cities, marketing years 1997/98-2001/02 . . . . . . . . . . . . . . . . . . . . . . . . . . B-8

B-10. Wheat flour, producer price index, Jan. 1998-Feb. 2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . B-9

B-11. U.S. raw sugar price, New York, Jan.1998-Mar. 2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-9

B-12. World raw sugar price, Jan. 1998-Mar. 2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-9

B-13. Bakery products: U.S. domestic exports, U.S. imports, for consumption, and U.S.

merchandise trade balance, 1998-2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-10

B-14. Bakery products: U.S. imports for consumption, by selected countries, 1998-2002 . . . . . . B-11

B-15. Bread, pastry, and cake products: U.S. imports for consumption, by selected

countries, 1998-2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-11

B-16. Cookie and cracker products: U.S. imports for consumption, by selected countries,

1998-2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-12

B-17. Mixes and dough products: U.S. imports for consumption, by selected countries,

1998-2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-12

B-18. Bakery products: U.S. exports of domestic merchandise, by selected countries,

1998-2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-13

B-19. Bread, pastry, and cake products: U.S. exports of domestic merchandise, by

selected countries, 1998-2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-14

B-20. Cookie and cracker products: U.S. exports of domestic merchandise, by selected

countries, 1998-2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-15

B-21. Mixes and dough products: U.S. exports of domestic merchandise, by selected

countries, 1998-2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-16

B-22. Bakery products: U.S. imports for consumption from Canada, by Customs District,

1998-2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-17

B-23. Bakery products: Harmonized Tariff Schedule subheading; description; U.S. col. 1

rate of duty as of Jan. 1, 2003; bound concession rate of duty; U.S. exports, 2002;

and U.S. imports, 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-18



1

ABSTRACT

This summary analyzes trade and industry conditions in the U.S. bakery products market

for the period 1998-2002. Bakery products include bread, rolls, tortillas, cakes, pastries,

cookies, crackers, mixes and dough, and related products.

• Imports increased significantly during the 1998-2002 period; however, imports

still account for a small portion of total consumption. Imports increased by

approximately 50 percent; however, they still accounted for only 2.4 percent of

apparent U.S. consumption in 2001. Canada is the largest source of imports of all

types of bakery products, and imports from Canada increased significantly.

• The United States has a sizeable, and growing, trade deficit in bakery products.

U.S. exports have increased only marginally, while imports have grown

significantly. The U.S. trade deficit in bakery products increased from

$395 million in 1998 to $778 million in 2002. However, the United States does

have a slight trade surplus in mixes and dough products. This appears, in part, to

be attributable to lower levels of imports, which face tariff barriers, unlike most

other bakery products.

• There has been some merger and acquisition activity in the U.S. bakery products

industry, which has led to some rationalization of production capacity.

Improvements in processing technology now allow producers to ship fresh bakery

products longer distances and to serve wider markets. Further improvements in,

and adoption of, new processing technologies will likely further increase

competition, both from domestic producers serving previously distant markets and

from increasing imports.

• During 2002, producers faced sharply rising input costs for wheat flour, cocoa,

and other ingredients. Wheat flour prices increased sharply as a result of drought

conditions in major wheat producing regions that resulted in lower wheat

production. Cocoa costs increased as a result of political strife in Côte D’Ivoire,

the major cocoa producing region.

 1

 Calculations of trends in the bakery industry, as a whole, based on U.S. Census Bureau data

for 1998 are not possible because of a misclassification error in the 1998 data for retail bakeries.

This error led to the inclusion of firm data that should not have been classified as retail bakeries.

Trends not incorporating data for the retail bakery segment are possible as these data are properly

classified. 

 2

 U.S. Bureau of the Census, Annual Survey of Manufacturers 2002, Dec. 20, 2002.

3

INTRODUCTION

This summary provides information on bakery products, such as bread, rolls, cookies,

crackers, pastries, and mixes and dough. Bread, roll, cake, cookie, cracker, and pastry

products are classified under heading 1905 of the Harmonized Tariff Schedule of the United

States (HTS). However, snack food products classified under HTS subheading 1905.90.90

are excluded from this summary. Flour mixes and dough products are classified under HTS

subheading 1901.20. This report provides information on the U.S. and some foreign

industries, domestic and foreign tariff and nontariff barriers, and the conditions of

competition in these markets. This analysis generally covers the period from 1998-2002;

however, some limited historical data are included to show long-term trends and significant

industry changes. 

U.S. industries producing bakery products are experiencing a variety of changes in their

markets. Consolidation has recently occurred in certain segments of the domestic industry,

such as wholesale bakeries. International trade is an increasingly important and significant

factor both through goods trade and foreign direct investment. Imports have increased

substantially from 1998 through 2002. Canada is the largest source of bakery products

imports and is the largest export market for U.S.-produced products.

U.S. INDUSTRY PROFILE

U.S. industries producing bakery products represent a wide range of products, including

fresh and frozen bread, cakes, cookies, mixes and dough, and tortillas. These industries are

classified under several different six-digit North American Industry Classification System

(NAICS) codes. The relevant NAICS codes include 311811, retail bakeries; 311812,

commercial bakeries; 311813, frozen cakes, pies, and other pastries manufacturing; 311821,

cookie and cracker manufacturing; 311822, flour mixes and dough manufacturing from

purchased flour; and 311830, tortilla manufacturing. In total there were 10,637

establishments classified under these NAICS codes in 1999, the latest year for which

establishment data are available (table B-1). These industries employed 318,680 workers in

2001, which is an increase of approximately 2.6 percent from 1999.1

 The value of shipments

from all these industries totaled $47.9 billion in 2001, an increase of 5.4 percent since 1999.2

According to data published in the 2001 Bakery Production and Marketing Red Book, there

are more than 3,400 bakery operations producing these products. This figure approximates
 3

 Data published in the Bakery Production and Marketing Red Book are based on surveys of the

industry. The sample, data collection, and survey methods may vary from those used by the U.S.

Bureau of the Census. Therefore, direct comparison of these data is not possible; however, the

data are useful in corroborating trends in the U.S. Bureau of the Census data. 

 4

 Calculations of trends in the bakery industry, as a whole, based on U.S. Census Bureau data

for 1998 are not possible because of a misclassification error in the 1998 data for retail bakeries.

This error led to the inclusion of firm data that should not have been classified as retail bakeries.

Trends not incorporating data for the retail bakery segment are possible as these data are properly

classified.

4

the number of baking operations along product type; therefore, a single plant may be counted

more than once if multiple products are produced in the same facility.3

Commercial and Retail Bakeries

Commercial bakeries had shipments valued at $25.7 billion in 2001, an increase of

17.6 percent from $21.9 billion in 1998 (table B-1). Products produced by commercial

bakeries classified under NAICS 311812 include fresh and frozen bread, rolls, bagels, and

fresh snack cakes, cakes, pies and other pastry products. Major commercial bread producers

include Interstate Bakeries Corp., Sara Lee Corp., Flowers Foods, Pepperidge Farm, Alpha

Baking Company, and United States Bakery. There is significant foreign participation in the

U.S. commercial baking market. Bimbo Bakeries USA, is an affiliate of Grupo Bimbo,

Mexico’s largest wholesale bakery company. Two Canadian companies, Canada Bread

(owned by Maple Leaf Foods) and George Weston Ltd., also have a significant presence in

the U.S. market. 

Retail bakeries, as classified under NAICS 311811, had shipments valued at $2.5 billion in

2001. Shipments increased from $2.2 billion in 1999 to $2.6 billion in 2000, before declining

slightly in 2001. Most retail bakeries are small, independently owned operations with one

or two production/retail locations. Major retail chains include, Panera Bread Company,

Krispy Kreme Bakery, Montana Mills Bread Company, Dunkin’ Donuts, and Tim Horton’s.

Employment

Employment in the commercial and retail bakery sectors increased slightly during the

1999-2001 period. Total employment increased by approximately 2.2 percent, while

production-related employment increased by approximately 0.7 percent (table B-1).

However, all the growth in employment can be attributed to the commercial bakery segment.

Total employment in the commercial bakery segment increased by 13,314 positions between

1999-2001. The number of production-related workers increased by 7,067 positions. Total

employment in the retail bakery segment declined by 539 positions, while production-related

workers declined by 945 positions between 1999-2001.4
 5

 U.S. Bureau of the Census, Survey of Plant Capacity 2000, Jan. 2002.

 6

 U.S. Bureau of the Census, Annual Survey of Manufacturers 2002, Dec. 20, 2002.

 7

 It is unclear to what degree this decline in operations is the result of the missclassification

error in the Census data and how much of the decline represents an actual reduction in the

industry.

 8

 Bakery Production and Marketing Red Book, 1998 and 2001.

 9

 Ibid.

5

Capacity and Capacity Utilization

The commercial bakery industry has experienced some recent consolidation and is currently

undergoing significant changes in how products are marketed and distributed. This

consolidation may have been spurred by some excess capacity in the industry. The latest

figures from the U.S. Census Bureau (Census) reported capacity utilization rates of only 72

percent for commercial bakeries in 2000. This is down from utilization rates of 76 percent

in 1999 and 74 percent in 1998.5

 Examples of consolidations within this segment include the

purchase of Metz Baking by The Earthgrains Company and the subsequent purchase of The

Earthgrains Company by Sara Lee in 2002. This acquisition vaulted Sara Lee to the second

overall position in fresh bread production, behind Interstate Bakeries Corp. Other examples

of consolidation in the industry are the purchase of Bestfoods Baking by George Weston Ltd.

(which had made Weston the number two bakery in the United States prior to the Earthgrains

- Sara Lee merger), and the purchase of Mrs. Baird’s bakery operations in the South and

Southwest United States by Grupo Bimbo USA. In the retail sector, Krispy Kreme recently

purchased Montana Mills Bread Company. 

Consolidation has resulted in a significant decline in bakery operations. Census data indicate

that the number of commercial and retail bakery operations declined from 10,438 to 9,509

from 1998 to 1999, the latest year for which data are available.6

 The decline in retail bakery

operations was more significant than the decline in commercial operations and accounted for

the majority of the total reduction in number of operations. The number of retail bakeries fell

from 7,673 in 1998 to 6,780 in 1999.7

 The number of commercial bakeries declined from

2,765 in 1998 to 2,729 in 1999. More recent data indicate these declines continued after

1999. Data compiled in the Bakery Production and Marketing Red Book indicate that the

number of commercial bakery plants declined from 1,441 in 1998 to 1,151 in 2001.8

Production operations associated with multi-store, retail bakeries declined from 213 facilities

in 1998 to 160 facilities in 2001.9

A greater share of the contraction in production facilities was accounted for by smaller

operations. The number of commercial operations employing 1-99 workers fell from 983 in

1998 to 794 in 2001. The number of multi-store, retail production facilities with 1-99

employees fell from 180 to 124 during the same period. Generally, however, the number of

facilities of all sizes declined. The number of commercial operations with 100-499

employees declined from 365 to 293 and those with 500 or more employees declined from

93 to 64. The number of multi-store, retail facilities with 100-499 employees increased from

28 in 1998 to 32 in 2001, while those with 500 or more employees declined slightly from 5

to 4.

Not captured in these figures, however, is the impact of improvements in production

technology. High speed production lines have doubled production speed over the last 10

years. Thus, bakeries have been able to significantly increase production without

corresponding increases in employment.
 10 U.S. Bureau of the Census, Annual Survey of Manufacturers 2002, Dec. 20, 2002.

 11 Bakery Production and Marketing Red Book, 1998 and 2001.

6

Frozen Cakes, Pies, and Other Pastries Manufacturers

Many of the major commercial bakery companies are also involved in the frozen cakes, pies,

and other pastries manufacturing. For example, Sara Lee Corp., Pepperidge Farm, and Mrs.

Smith’s Bakeries are leading producers of frozen cakes and pies. Additionally, several

companies active in the mixes and dough segment also produce frozen bakery products, such

as the Pillsbury Co. Another company involved in the frozen segment is Edwards Fine

Foods. Shipments of frozen cakes, pies, and other pastry products have increased steadily

from 1998 to 2001. Shipments remained largely stable in 1998 and 1999 at approximately

$2.6 billion. However, shipments increased to $2.9 billion in 2000, and increased to over

$3.0 billion in 2001.

Employment

Employment in the frozen cakes, pies and other pastries manufacturing sector increased by

approximately 8 percent from 1998 to 2001. The total number of employees increased from

15,402 in 1998 to 16,742 in 2001.10 The number of production-related workers increased

from 12,554 in 1998 to 13,744 in 2001. 

Capacity and Capacity Utilization

The merger and acquisition activity that characterized the commercial bakery market during

1998-2002 also impacted producers of frozen products, since many commercial producers

of fresh products also produce frozen products. A recent example of merger and acquisition

activity specifically relating to frozen cakes and pies is the sale by Flowers Foods of its Mrs.

Smith’s frozen desert business to the Schwan Food Company. 

U.S. Census Bureau data indicate that despite an increase in employment in this sector, the

number of production facilities has declined. Specifically, the Census data show a decline

in the number of facilities from 242 in 1998 to 233 in 1999. Although not directly

comparable, data on the number of operations producing cakes, pies and other pastries of all

types, frozen and non-frozen, indicate a decline in the number of operations as well. Data

from the Bakery Production and Marketing Red Book indicate a decline from 4,512 in 1998

to 4,201 in 2001.11
 12 Snack Food & Wholesale Bakery, June 2002.

 13 U.S. Bureau of the Census, Annual Survey of Manufacturers 2002, Dec. 20, 2002.

 14 Ibid.

 15 Milling & Baking News, Cracker Sales Grow, Apr. 29, 2003.

 16 Ibid.

 17 Ibid.

 18 U.S. Bureau of the Census, Survey of Plant Capacity 2000, Jan. 2002.

7

Cookie and Cracker Manufacturers

Cookies, crackers, sweet biscuits, waffles, and wafers represent a fairly diverse group of

products. The industry in this segment is characterized by a very high rate of product

introductions and market share is dominated by a handful of major corporations. Nabisco

(now owned by Kraft Foods) and the Keebler Co. (now owned by the Kellogg Company)

account for the vast majority of the market. In 2001, cookie products produced by Nabisco

and the Keebler Co. accounted for 8 of the top 10 cookie brands.12 Shipments in the cookie

and cracker market increased from $10.3 billion in 1998 to $10.5 billion in 2001.

Employment

Employment in the cookie and cracker segment has declined. Total employment declined

from 42,189 in 1998 to 39,556 in 2001.13 The number of production-related workers declined

from 32,726 in 1998 to 31,129 in 2001.

Capacity and Capacity Utilization

The number of production facilities in the cookie and cracker segment declined from 411 in

1998 to 401 in 1999 according to Census data.14 Data published in the Bakery Production

and Marketing Red Book indicate a decline in production operations from 1,182 in 1998 to

947 in 2001. This segment also experienced some transformation with the mergers and

acquisitions of Nabisco and Kraft Foods and the acquisition of Keebler Foods by Kellogg.

While these mergers and acquisitions increased industry concentration in the cookie and

cracker market, a number of other firms are also significant participants. In 2002, Kraft

Foods and Nabisco branded products combined accounted for approximately 49 percent of

all retail sales of cracker products.15 Branded products produced by Keebler Foods accounted

for approximately 25 percent of all retail sales.16 Other significant participants in the retail

cracker market include Pepperidge Farm, Lance Inc., and Red Oval Farms. These three firms

accounted for approximately 11.5 percent of retail sales in 2002.17 The latest data from

Census indicated significant underutilization of plant capacity in 2000. Census reported a

utilization rate of only 67 percent in 2000.

Although this is an improvement from a utilization rate of 63 percent in 1999, it is down

from a utilization rate of 70 percent in 1998.18
 19 Milling & Baking News, Refrigerated Dough Showdown, Apr. 13, 2002.

 20 Ibid.

 21 Milling & Baking News, Taking Shape, Jan. 21, 2003.

 22 U.S. Bureau of the Census, Annual Survey of Manufacturers 2002, Dec. 20, 2002.

 23 U.S. Bureau of the Census, Survey of Plant Capacity 2000, Jan. 2002.

8

Flour Mixes and Dough Manufacturers

Products manufactured by this industry consist of products utilized by in-store bakery

departments, other retail bakery operations, and the food service industry, as well as retail

products. Commercial operations, such as retail and in-store bakeries, often utilize pre-made

mixes and dough in their operations. 

Major retail frozen and refrigerated dough manufacturers include The Earthgrains Company

(now owned by Sara Lee), Pillsbury (now owned by General Mills), Mrs. Smith's Bakeries,

and the Nestlé company. Major wholesale mix and dough producers are Bunge Foods, Rich

Products Corp., Dawn Food Products, George Weston Bakeries, and the Canada Bread

Company (the latter two are Canadian companies). Significant merger activity occurred in

2001 as General Mills purchased Pillsbury and Sara Lee Corp. acquired The Earthgrains

Company. Pillsbury holds approximately 80 percent of the retail market for branded

refrigerated dough, with Nestle as the number two supplier. Sara Lee controls much of the

private label segment of the market.19 These three companies now control virtually all the

retail refrigerated dough market.20 Growth in the retail market for refrigerated dough

products is driven primarily by new product development.21

The value of shipments in the mixes and dough segment has declined irregularly during the

1998-2001 period. Shipments increased from $5.0 billion in 1998 to $5.3 billion in 1999.

However, shipments declined to $4.6 billion in 2000, before recovering slightly to

$4.8 billion in 2001.

Employment

Employment in the flour mixes and dough segment increased steadily during the 1998 to

2001 period. Total employment increased from 15,232 in 1998 to 19,962 in 2001.22 The

number of production-related workers increased from 11,843 in 1998 to 15,914 in 2001.

Capacity and Capacity Utilization

The latest available Census data indicate that despite the increase in employment in this

sector the number of production facilities has declined. Census data show a decline from 250

facilities in 1998 to 247 facilities in 1999. Census data further indicate an irregular decline

in capacity utilization rates from 79 in 1998 to 76 percent in 2000.23 The 2001 edition of the

Bakery Production and Marketing Red Book identifies 347 operations producing frozen

dough. This is a sharp decline from 420 such operations in 1998. The majority of mix and

dough operations are wholesale producers, while the next largest segment consists of

operations that are part of larger baked goods manufacturers.
 24 U.S. Bureau of the Census, Annual Survey of Manufacturers 2002, Dec. 20, 2002.

 25 U.S. Bureau of the Census, Survey of Plant Capacity 2000, Jan. 2002.

9

Tortilla Manufacturers

There is somewhat less industry concentration in the tortilla manufacturing segment than in

other segments of the bakery products market. There are over 20 tortilla manufacturers active

in the United States. Major producers include Azteca Foods, Harvest States Foods, and

Mission Foods. Additionally, General Mills owns Old El Paso, which produces dinner kits

containing tortillas. The value of shipments in the tortilla segment have grown irregularly

from 1998 to 2001. Shipments remained stable in 1998 and 1999 at approximately

$1.2 billion. However, shipments increased to $1.3 billion in 2000 and to nearly $1.4 billion

in 2001. Retail sales data on tortillas may overstate tortilla consumption as both tortillas and

dinner kits, containing tortillas, salsa, beans, cheese, and other fillings, are included in the

same category. However, the retail sales data indicate significant growth. Retail sales were

approximately $809.7 million in 1999 and increased to $878.2 million in 2000.

Employment

Census data show a slight rise in total employment in the tortilla manufacturing segment.

Total employment increased from 11,395 in 1998 to 12,040 in 2001.24 The number of

production-related workers increased more than the increase in total employment, up from

8,766 in 1998 to 10,072 in 2001.

Capacity and Capacity Utilization

Capacity utilization data for the tortilla manufacturing industry are not available prior to

1999. Capacity utilization rates in 1999 and 2000 were 78 percent and 77 percent,

respectively.25 Census data report a small decline in the number of production facilities, from

249 in 1998 to 247 in 1999. However, the number of tortilla-producing operations reported

by the Bakery Production and Marketing Red Book increased substantially, from 54 in 1998

to 96 in 2001. The trend reported in the Bakery Production and Marketing Red Book appears

to more closely coincide with the growth in the tortilla market in the United States.

Marketing Practices and Prices

Channels of Distribution 

Figure 1 presents the channels of distribution for the bakery products industry. Marketing

and distribution operations in the fresh bread and bakery segment are undergoing significant

changes. The consolidation in the baking industry has resulted in fewer bakery operations.
 26 U.S. Bureau of the Census, Transportation Commodity Flow Survey 1997, Dec. 9, 1999. 

 27 Ibid.

 28 For example, in the last few years Interstate Bakeries has significantly increased the shelf life

of its products and a Canadian company has reportedly achieved a shelf life of up to 21 days for its

products. See Factors Affecting Production section below for additional information.

10

Mixes & 

dough 

producers 

Commercial, and retail bakeries, 

frozen bakery products, cookie and 

cracker producers 

Distributors 

Retail or food 

service outlets 

Consumers 

Figure 1

Channels of distribution of the U.S. bakery products industry

As a result, the remaining bakeries are serving wider geographic markets. Prior studies found

that in 1993, shipments from bakeries to their customers averaged 74 miles per shipment.26

Consolidation, improvement in transportation methods, and the development of extended

shelf life (ESL) products increased the average miles per shipment to 96 miles by 1997. For

all milled grain and bakery products, the average miles per shipment increased from 89 miles

in 1993 to 122 miles in 1997.27 Additional consolidation and technology improvements have

likely increased average miles per shipment further since 1997.28 In some cases industry

participants reported shipments of fresh bakery products to markets 400 miles from the
 29 U.S. industry officials, interview by USITC staff, Washington, DC, Sep. 4, 2002.

 30 These seven U.S. cities are Boston, Chicago, Cleveland, Detroit, New York City, Pittsburgh,

and Washington, DC.

11

bakery.29 Additionally, these distribution and marketing changes have increased the ability

of imported products to successfully compete in U.S. markets. Previously, the perishable

nature of many bakery products limited the ability of imported products to have a significant

role in the market.

Many bakery products, including breads, cookies and crackers, and pastry products, are

distributed to the retail and vending outlets through direct-to-store delivery (DSD) systems.

This system utilizes dedicated delivery staff who are responsible for a specific route or group

of stores. The delivery driver is responsible for ensuring that fresh product remains on the

store shelves and that the store is sufficiently stocked with product.

The overwhelming majority of retail purchases of bread and other bakery products are made

at grocery stores. Mass merchandisers, such as Wal Mart and Costco, represent the next

largest distribution outlet. Additionally, the food service market is an extremely important

market for bread products. This market includes hospital, school, and prison cafeterias, as

well as restaurants and catering outlets. Although not as large as the retail market, the foods

service market is sizeable.

Product distribution for cookie and cracker products is somewhat more diverse than for

bread products. Although a significant share of sales is made through the grocery store/mass

merchant outlets, a significant portion of sales also occur through the convenience store and

vending machine outlets. 

Prices

Consumer price index (CPI) data for bread indicate a fairly regular increase in bread prices

between January 1998 and December 2002 (table B-2). The CPI data for bread are also fairly

stable, with few large swings in bread prices from month to month. The CPI data for cookies

are somewhat more volatile. The data exhibit several instances of significant swings in prices

on a month to month basis. This includes sharp increases in prices during the SeptemberDecember 1999, February-March 2000, and August-December 2002 periods. The sharp

increases in prices during the latter half of 2002 may be partially attributable to a sharp rise

in ingredient costs in 2002. The CPI data for crackers are even more volatile, exhibiting

numerous sharp increases and decreases in prices during the 1998-2002 period. Prices for

frozen bakery products exhibited significant increases during 1998-99 and 2000-01 and

2001-02. 

Prices for bread products can vary significantly across geographic regions. Data collected

by the Economist Intelligence Unit table for seven major U.S. cities indicate a wide range

of prices for white pan bread (table B-3).30 The average price fluctuated somewhat,

decreasing from $2.94 to $2.88 per kilogram from 1998 to 1999. The average price then

increased to $2.92 per kg in 2000 and to $3.04 in 2001. Price variations across cities

fluctuated to an even greater degree. The average difference from the highest reported price

to the lowest reported price in any year averaged $1.89 per kg. During the 1998 to 2001

period the highest reported price averaged $3.70 per kg, while the lowest reported price
 31 For a more detailed review see USITC Office of Industries Working Paper: Dynamic

Relationships Among Selected U.S. Commodity-Based, Value-Added Markets– Applying

Directed Acyclic Graphs to a Time Series Model, Publication ID-07, July 2003.

 32 Bureau of Labor Statistics, U.S. Department of Labor, Consumer Expenditure Survey,

Apr. 2002.

 33 Milling & Baking News, New Product Introductions Expand in 2002; Confectionary, Bakery

Strong, Jan. 21, 2003.

12

averaged $1.82 per kg. When the highest and lowest reported prices for each year are

disregarded, the variability in prices is still significant, with the reported prices differing by

$0.45 in 1998, $0.41 in 1999, $1.12 in 2000, and $1.27 in 2001.

Additionally, recent analysis appears to indicate that bread prices are an important and

potentially leading indicator of the movement in prices in other grain-based foods. A vectorautoregression model of the impact of shocks on the price of wheat on wheat-based foods

revealed that changes in the price of bread accounted for an important portion of changes in

the prices of cookie and cracker products, flour products, and mix and dough products.31 CPI

data for bread products are widely reported among the bakery industry. Thus, other segments

of the grain-based foods industry may be following the lead of bread prices.

U.S. MARKET

U.S. consumption of bakery products was estimated to be $48.5 billion in 2001 (table B-4).

U.S. consumption increased each year from 1998 to 2001 by approximately 3 percent per

year. Imports as a share of consumption increased slightly during this period, from 2.0

percent in 1998 to 2.4 percent in 2001.

Consumer Characteristics and Factors Affecting Demand

Consumption of bakery products generally increased over the 1998-2001 period. However,

this trend varies, depending on the market segment and region examined (tables B-4, B-5,

and B-6). In 2001, the national average weekly expenditure on cereal and bakery products

was $8.69.32 This is a slight decline from the average weekly expenditures of $8.71 in 2000.

However, average weekly expenditures increased in the Northeast and South regions of the

United States, while average weekly expenditure declined in the Midwest and West. From

1998 to 2001, average expenditures increased in all four regions. Bakery products account

for approximately two-thirds of the expenditures on cereal and bakery products. In 2001, the

average weekly expenditure on bakery products was $5.69; this is a slight decline from $5.71

in 2000. The regional trend in bakery product expenditures mirrors that of cereal and bakery

product expenditures. 

As a result of the mature nature of the bakery products markets, growth in the retail segment

of the market is driven primarily by new product introductions and extensions of existing

product lines. In 2002, bakery products producers introduced 1,145 new products.33 The
 34 Ibid.

 35 Milling & Baking News, Restaurant industry group sees 4.5% sales increase in new year,

Jan. 7, 2003.

 36 World-Grain.com, Survey affirms worsening U.S. image of grain foods, Mar. 26, 2003.

 37 Ibid.

 38 Atlanta Journal Constitution, Even bread cutting carbs, Feb. 24, 2003.

 39 FACT Company Press Release, Apr. 17, 2003.

 40 U.S. Food and Drug Administration, U.S. Department of Health and Human Services, FDA

Draft Action Plan for Acrylamide in Food, Sep. 20, 2002.

 41 Ibid.

13

cookie and cracker segment alone had 493 new product introductions, while the baking

ingredients and mixes category had 251 new introductions. The bread and bread products

category had 185 new products.34 Producers of cakes, pastries, and other sweet goods

introduced 216 new products in 2002.

Several factors have been suggested to explain recent changes in bakery product

consumption. The three most important are increasing convenience/quick preparation time

in the marketing of foods, the prevalence of fad diets that stress the avoidance of

carbohydrate rich foods, and the detection of acrylamide, a potentially cancer causing

substance in baked and fried foods. 

Consumers are increasingly relying on semi-prepared, restaurant-prepared, and other

convenient, ready-to-eat meal options. Restaurant industry sales are expected to increase

4.5 percent in 2003.35 At least some of this anticipated growth comes at the expense of

supermarkets and grocery stores, which have been experiencing declines in sales values. The

overall impact of these trends is unclear on the bakery products market. Both the restaurant

and grocery store markets are important channels for bakery products. However, as discussed

below, the drive for increased convenience may be shifting consumption between different

types of bakery products.

The most recent years analyzed in this report are characterized by the surging popularity of

low-carbohydrate diets, such as the Atkin’s diet. These diets have changed consumers’

perceptions regarding the health benefits of grain-based foods. A Gallup Poll, sponsored by

the American Bakers Association and the Wheat Foods Council, found a significant increase

in the number of American consumers that believe grain-based foods are fattening.36 The

survey results found that consumers who believe bread is fattening rose from 38 percent in

1996 to 56 percent of respondents in 2002.37 This perception has had a negative impact on

the consumption of grain-based foods. To date the grain-based foods industry has attempted

to deal with this perception in several ways. Industry associations have stressed the

importance of a balanced diet, including grain-based foods. Additionally, some members of

the industry have reformulated product to reduce the amount of carbohydrates. For example,

Flowers Foods is marketing a reduced carbohydrate loaf of bread.38 Another company,

FACT Corporation in Freehold, NJ, provides a low carbohydrate mix that can be used to

produce bread and bagel products.39

On April 24, 2002, researchers at the Swedish National Food Administration and Stockholm

University reported finding the chemical acrylamide, in a variety of fried and oven-baked

foods. The initial Swedish finding most closely associated the presence of acrylamide with

high temperature cooking processes for carbohydrate-rich foods, including bakery

products.40 Acrylamide is a potential human carcinogen.41 The World Health Organization
 42 Milling & Baking News, Consumers watch prices closely, but most ignore acrylamide issue,

Mar. 25, 2003.

 43 Milling & Baking News, Fiercely fighting for growth, Mar. 18, 2003.

 44 Snack Food & Wholesale Bakery, June 2002, June 2001, and June 2000.

 45 Ibid., and Milling & Baking News, Fiercely fighting for growth, Mar. 18, 2003.

 46 Ibid.

 47 Ibid.

 48 Baking Production and Marketing Red Book, 2001.

 49 Snack Food & Wholesale Bakery, June 2000, June 2001, and June 2002 and Milling &

Baking News, Fiercely fighting for growth, Mar. 18, 2003.

 50 Ibid.

 51 Milling & Baking News, Grain-based foods industry outlook 2003: Qualified optimism,

Mar. 18, 2003.

14

and the Food and Agriculture Organization issued statements in June 2002 recommending

that consumers eat a balanced diet, but neither of these organizations, nor the U.S. Food and

Drug Administration, have altered their current dietary recommendations as a result of this

research. Most of the focus on acrylamide in food has been on fried foods, such as potato

chips and french fries. To date, the presence of acrylamide in foods has somewhat impacted

consumption patterns. Two surveys conducted by the Grocery Manufacturers Association

over the last two years found that 8 percent and 12 percent of consumers surveyed had

changed their diets as a result of acrylamide in food.42

Commercial and Retail Bakery Products

Consumption of all bread products, both pan bread and specialty/hearth breads, has been

relatively stable during the past five years. There has been significant competition within the

bread segment between white bread, variety bread, and artisan breads. Brand names are an

important factor in bread products; however, they do not appear to be as important as in

other segments of the bakery products market and also tend to be most influential in bread

products other than fresh bread. While a number of fresh bread brands are national, private

label fresh bread holds a dominant market share. In 2002, private label fresh bread held a

28.3 percent share of supermarket retail sales.43 This is up slightly from its share in 2001 of

27.0 percent share of supermarket retail sales.44 This continues a slight, and irregular,

increase in private label’s share of the retail market, which was 26.4 percent in 1999 and

26.2 percent in 2000. Wonder Bread, the leading fresh bread brand, held a market share of

approximately 5.6 percent in 2002, which is virtually unchanged from the 1999-2001

period.45 Private label products hold an even larger share of the fresh roll market, at

47.6 percent in 2001.46 In contrast private label products play a smaller role in the frozen

bread and roll markets, where they held only a 9.7 percent market share in 2001.47

The bread market is a mature market, with nearly complete market penetration.

Approximately 98 percent of all households purchase fresh bread.48 Sales volume in the retail

market has actually trended slightly downward. The volume of retail purchases of fresh

bread for 1999, 2000, 2001, and 2002 was 4.6 billion pounds, 4.5 billion pounds, 4.4 billion

pounds, and 4.4 billion pounds, respectively.49 Conversely, the dollar value of sales through

this channel has trended upward. For 1999, 2000, 2001, and 2002 sales values were

$5.4 billion, $5.5 billion, $5.6 billion, and $5.8 billion, respectively.50 The growth in sales

value can partially be attributed to the increased demand for super premium bread products

and fresh artisan bread.51 Both of these products are marketed at higher price points than
 52 Snack Food & Wholesale Bakery, June 2000, June 2001, and June 2002.

 53 Ibid.

 54 Milling & Baking News, Moisture is key, Nov. 26, 2002.

 55 Milling & Baking News, Par-baked goods, Nov. 26, 2002.

 56 Snack Food & Wholesale Bakery, June 2000, June 2001, and June 2002.

 57 Ibid.

15

conventional loaves of white or wheat bread. Consumption of bagels continues to grow,

although at a modest pace. This slowing growth in the bagel segment can be partially

attributed to a decline in bagel consumption as a breakfast food for both at home and away

from home meals since 1998.52 Bagels have also reached a mature market position with only

limited growth projected in the next few years.53

One sector of the bread industry that is experiencing more significant growth is the parbaked

market. Parbaked products are cooked to 80 to 95 percent completion and then flash frozen.54

These products are generally purchased by the restaurant, retail bakery, institutional and instore bakery market segments. The benefit of these products is that they eliminate much of

the time and labor associated with scratch baking but restaurants and in-store bakeries can

still provide fresh bakery products to their customers. In-store bakeries are particularly

increasing their use of parbaked products.55 In-store bakeries typically use the parbaked

products to produce artisan style fresh bread products. 

Certain segments of the retail bakery market in the United States are growing. Differing from

other countries, especially Europe, consumers do not appear to have as significant a

preference for retail bakery products over those produced in commercial operations. Growth

in retail bakeries has occurred in conjunction with increased trends in convenience and

during recent period of economic growth, when consumers upgraded to more expensive

products. Many retail bakeries provide additional consumer offerings besides bakery

products, such as coffees, sandwiches, soups, other food products. As a result, trends in retail

bakeries may somewhat mirror those in the restaurant industry.

Frozen Cakes, Pies, and Other Pastry Products

The market for frozen cakes, pies, and other pastry products has been characterized by

significant product innovation, new product introductions, and an overall shift in the market

to higher quality, premium products. New product introductions from the Sara Lee Corp,

Pillsbury, and Kraft Foods have focused on higher quality products using better ingredients

and improved production and freezing technology.56 This has led to increases in retail sales

value, as consumers purchase higher-priced products, without as significant increases in

retail sales volumes. Another new development in the frozen dessert market has been the

increasing number of single-serving products available. In keeping with the overall trend of

increased convenience and shorter preparation time, a number of producers are marketing

single-serving frozen cake and pie products.

Based on market share data, brand names are important in the frozen dessert market. For

example, Mrs. Smith’s, Sara Lee, and Edwards Foods were the three leading frozen pie

producers in 1999, 2000, and 2001.57 Additionally, different segments of the frozen dessert

market experienced different degrees of growth. For example, the retail market for frozen

pies has increased steadily from $259.6 million in 1998, to $271.6 million in 1999, to

$289.5 million in 2000, to $318.8 million in 2001. However, other frozen sweet good
 58 Ibid.

 59 Ibid.

 60 Ibid.

 61 Bakery Production and Marketing: Red Book, 2001.

 62 Snack Food & Wholesale Bakery, June 2000, June 2001, and June 2002.

 63 Milling & Baking News, Cracker Sales Grow, Apr. 29, 2003.

 64 Ibid.

 65 Bakery Production and Marketing: Red Book, 2001.

 66 Snack Food & Wholesale Bakery, June 2002.

 67 Milling & Baking News, Cracker Sales Grow, Apr. 29, 2003.

 68 U.S. industry officials, interview by USITC staff, July 7-9, 2002.

16

products, which includes other pastry products such as strudels, brownies, and cake products,

declined from $374.3 million in 1998, to 350.8 million in 1999, to $326.3 million in 2000.58

As a result of these opposing trends, frozen pie products will account for the majority of

sales in this segment.

Cookie and Cracker Products

Census data indicate that cookie and cracker consumption generally increased during the

1998-2002 period (table B-5). However, data on cookie and cracker sales through the retail

market channel indicate that sales of cookies have declined, both in value and volume terms.

Retail sales of cookies for 1999, 2000, and 2001 were estimated at $4.5 billion, $4.6 billion,

and $4.0 billion, respectively.59 Sales volumes for these three years also declined from

1.8 billion pounds in 1999 to 1.5 billion pounds in 2001.60 This situation can partially be

attributed to the fact that in-home cookie consumption as a dessert product has fallen

significantly since 1990.61 Additionally, increases in sales of any one particular brand of

cookie often come at the expense of competing brands, as opposed to overall increases in

consumption.

Similar market dynamics have impacted retail sales of cracker products. Sales values for

1999, 2000, and 2001 are estimated at $3.5 billion, $3.6 billion, and $3.3 billion,

respectively.62 However, retail market data indicate an upward swing in the value of cracker

sales in 2002, despite a decline in unit sales. Retail cracker sales in 2002 were estimated at

$3.4 billion.63 Similar to the retail bread, market sales values are increasing despite declines

in unit sales.64 Sales are largely being driven by product line extensions and new, more

convenient packaging. The sandwich cracker portion of the cracker market has seen more

significant growth over the last five years. Sandwich cracker sales volumes and values have

increased by 37 percent over the last five years.65 Sandwich crackers are generally defined

as two cracker wafers containing a filling, often cheese or peanut butter.

Unlike the bread market, private label products do not hold as important a position in the

cookie and cracker market. In 2001, private label products held an 8.5 percent retail market

share for cookies.66 In 2002, private label products accounted for 7.5 percent of retail cracker

sales.67 However, the private label portion of the market is believed to be a major outlet for

imported products, particularly products imported from Canada.68

For both the cookie and cracker markets, the most recent trend in consumption reflects a

decline in the health-focused segments of the market. In 1996, more than one-quarter of new

products in the cookie market made low-fat or no-fat claims on their packaging, while
 69 Baking Business.Com, 82% of Americans Indulge in Cookies, Pushing Market Sales to

$6.2 Billion, July 17, 2002.

 70 Ibid.

 71 Milling & Baking News, Frozen Dough from niche to core product June 11, 2002.

 72 Ibid.

 73 Ibid.

 74 Saskatchewan Wheat Pool Company Press Release, Saskatchewan Wheat Pool Enters

Agreement to Sell CSP Food To Dawn Food Products, Feb. 25, 2002.

 75 The Buffalo News, Rich Products to Spend $15 million, add 40 jobs in Fort Erie Expansion,

July 29, 2002.

17

projections for 2002 put the percentage of new cookie products that will have reduced

amounts of fat at only 9 percent.69 However, demand for sugar-free products may be

increasing, possibly due to the improved quality of non-sugar sweeteners. Demand for

low-fat or low-calorie products has declined and consumers are increasingly turning to

richer, more indulgent varieties.70

Mixes and Dough Products

Consumption of mixes and dough products fluctuated during the 1998-2001 period. Overall

the value of shipments fell from $5.0 billion in1998 to $4.6 billion in 2000 (table B-6).

However, shipments increased from $4.6 billion in 2000 to $4.7 in 2001. Some of the decline

in consumption in mixes and dough products may be attributable to the growing use of

parbaked products. Producers can use parbaked products instead of mixes and dough

products for a number of bread and roll products. The U.S. market for mixes and frozen

dough depends primarily on the demand for products produced by in-store bakeries, food

service, and retail bakeries. Many of these establishments utilize pre-made mixes and doughs

as opposed to scratch baking in their operations. 

About 80 percent of all grocery stores, or approximately 25,000 stores, have in-store

bakeries.71 Of these in-store bakeries, 77 percent use either pre-made mixes or frozen dough

to produce their bread and rolls.72 Additionally, in-store bakeries use mixes and/or frozen

dough to produce a number of other bakery products. For example, 75 percent use mixes or

frozen dough for cookies, 58 percent use them in baking muffins, and 84 percent use them

for baking other sweet goods.73 Increased consumer demand for fresh artisan bread has

increased the demand for in-store bakery products. In addition, the cost and availability of

qualified labor has been a driving force in the use of mixes and frozen dough. Scratch baking

requires higher-quality and higher-cost labor. Future growth in this sector will depend on a

number of factors, including customers’ willingness to pay a premium for fresh store baked

products, the availability and cost of labor in in-store bakeries, and competition from

par-baked products. 

U.S. wholesale mix and dough producers are increasingly active in international markets,

particularly in Canada. Recently, two U.S. producers announced expansion plans in Canada.

Dawn Food Products purchased CSP Foods, a distributor of food ingredients, from the

Saskatchewan Wheat Pool.74 Rich Products is making a $15 million capital investment in a

new facility in Fort Erie, Ontario.75
 76 Tortilla Industry Association, The State of the Tortilla Industry: 2000.

 77 Data provided by the Tortilla Industry Association.

 78 Ibid.

18

Figure 2 

Trends in U.S. shipments of bakery products, 1998-2001

0

5

10

15

20

25

30

1998 1999 2000 2001

($ billions)

Retail bakeries

Commercial bakeries

Frozen cakes, pies,

and pastries

Cookies and crackers

Mixes and doughs

Tortillas

Tortilla Products

Sales of tortilla products in 2000 were estimated at approximately $4 billion, only slightly

behind sales of fresh bread.76 There has been rapid growth in tortilla consumption. The

tortilla market has grown from $2.8 billion in 1996 to $4.4 billion in 2000 and is expected

to grow to $5.7 billion in 2002.77 Although the growth in the Hispanic population in the

United States is an important factor in this growth, most market participants believe that the

growing popularity of tortillas among non-Hispanics is the main source of growth.78

U.S. Shipments

Figure 2 presents the value of U.S. shipments for each segment of the bakery products

industry. Overall, total shipments have increased from 1998 to 2001.

Source: Compiled from official statistics of the U.S. Department of Commerce.
 79 U.S. industry officials, telephone interview by USITC staff, United States, Aug. 13, 2002.

 80 Milling & Baking News, Surging health care costs to baking fore, Dec. 10, 2002.

 81 Ibid.

 82 Harwood, Joy, Leath, Mack, and Heid, Walto, USDA, ERS, The U.S. Milling and Baking

Industries, Dec. 1989.

19

Factors Affecting Production

Overall, the cost of materials as a share of the total value of shipments in the bakery industry

has declined slightly from 37 percent in 1998 to 35 percent in 2001 (table B-7).

Manufacturers of frozen cakes and pies and producers of cookie and cracker products

experienced some increase from 2000 to 2001. However, these data do not capture

significant increases in ingredient costs during 2002.

Energy and Other Manufacturing Costs 

For almost all producers of grain based foods, energy costs are an important factor. Most of

these products are baked or dried in high temperature ovens. Therefore, rising energy costs,

and in particular spikes in energy costs in the recent past, have adversely impacted the

profitability of grain-based food producers. An example of the impact of energy shortages

is the rolling blackouts in California in 2001, which shut down bakeries without notice.

These energy outages resulted in bakeries losing entire production runs.79

Labor Costs

Recent increases in the costs associated with health care and retirement expenses have raised

concern among bakery product producers.80 Bakery production tends to be relatively more

labor-intensive, because the short shelf life of the products requires frequent inventory

turnover and prevents companies from achieving large economies of scale. This requires

multiple production locations to serve different geographic markets. According to

projections developed by the American Bakers Association (ABA), health care expenses are

projected to increase by approximately 76 percent between 2002 and 2007.81 Salary costs are

projected by the ABA to increase approximately 22 percent over the same period.

Wheat and Wheat Flour Costs

For bread and roll producers, flour is estimated to represent between 15 percent and

20 percent of the cost of production. The supply and price of wheat flour are important

factors in bakery operations. The type of wheat flour utilized depends on the type of bakery

product. Bread and roll producers generally use hard wheat, which has higher protein levels.

Conversely, cookie, pastry, cake, and cereal producers generally use soft wheat.82 For all

classes of wheat, prices generally declined until 2002, although hard red spring and soft red

winter wheat prices increased somewhat in the 2000/01 crop year (table B-8). As a result of

poor weather in 2002 in several wheat-producing regions, prices for hard and soft wheat

increased sharply. Hard wheat prices have averaged approximately $1.00 per bushel more
 83 Bureau of Labor Statistics, U.S. Department of Labor, PPI series WPU02120301.

 84 See USITC Honey from Argentina and China, Inv. Nos. 701-TA-402 and 731-TA-892-893

(Final), USITC pub. no. 3470, Nov. 2001. 

20

during the 2002/03 crop year than in the 2001/02 crop year. Prices for soft wheat have

averaged approximately $0.80 per bushel more during the 2002/03 crop year.

U.S. flour production fluctuated considerably during the 1998-2002 period. Flour prices

were generally on a steady decline until 2002 (table B-9). Wheat flour prices are strongly

tied to wheat prices; thus, as wheat prices spiked in 2002, flour prices increased sharply as

well. The Bureau of Labor Statistics Producer Price Index (PPI) for wheat flour shows a

great deal of volatility, with a particularly sharp rise during 2002 (table B-10). During 2002,

the PPI for wheat flour rose from 109.6 in January to 123.0 in October. Preliminary statistics

for the first two months of 2003 do not indicate any significant declines in wheat flour

prices.83

Sugar Costs

For cookie, pastry, and other sweet good products, sugar is also an important factor of

production. Sugar as a share of the total cost of production varies considerably among these

products. U.S. sugar prices have also fluctuated considerably during this period (table B-11).

U.S. sugar prices are significantly higher than world prices, averaging 12.5 cents per pound

more during the 1998-2002 period (tables B-11 and B-12). This differential in sugar prices

may result in a competitive disadvantage for U.S. producers versus imports, particularly

imports from Canada where bakers have access to sugar at world prices. 

Other Ingredient Costs

There were significant increases in other bakery product ingredient costs, such as shortening

and honey, in 2002. Honey prices rose sharply in 2001 and 2002, from approximately

$0.59 per pound in 2001 to more than $1.26 per pound in 2002. The sharp increase in honey

prices is a result of declines in U.S. production and yields and the imposition of antidumping

and countervailing duties on imports of honey from China and Argentina.84 Cocoa prices

increased during 2002 as a result of turmoil in the Côte D’Ivoire, a major cocoa producing

country. Bakery shortening prices have also increased.

Production Process and Technology Changes

There have been important production technology advancements in the commercial bakery

industry. These advancements center on the development of ESL technology. A standard

cost for commercial bakeries is the cost associated with returns of unsold, stale bread and

other fresh bakery products. ESL technology extends the shelf life of the bread or other

bakery products, allowing the product to remain on the store shelves longer and thus

reducing returns. The ability to extend the shelf life of bread and other bakery products can

have a profound impact on the cost structure of the manufacturer and on related markets as

well. For example, according to trade press reports the development of ESL technology has

enabled Interstate Bakeries to eliminate more than 1,000 delivery routes. This has resulted
 85 Milling & Baking News, Transforming baking for less than a penny a loaf, Aug. 6, 2002.

 86 World-grain.com, Shelf life gains may require ADM milling capacity cuts, Aug.1, 2002.

 87 Milling & Baking News, Full impact of ESL emerging, Dec. 10, 2002.

21

in cost savings in labor, trucks, fuel, insurance, and delivery vehicle accidents.85

Additionally, as a result of fewer returns, bakeries need to produce fewer loaves of bread and

other bakery products to maintain store inventories. The impact of ESL technology has

prompted members of the flour milling industry to consider capacity reductions, as bakeries

will need less flour.86 Several other bakery companies have begun implementing ESL

technology, including Flowers Foods and Sara Lee.87 ESL technology has the potential to

radically alter the structure of the baking industry. By extending the shelf life of bakery

products, manufacturers are able to serve more customers in a wider geographic market. This

opens regional markets to greater competition as more bakeries have the capability to serve

additional markets. Widespread implementation of ESL technology could result in

significant increases in competition between bakeries.

U.S. TRADE

Overview

The United States has a significant and growing trade deficit in bakery products (table B-13).

The trade deficit increased from $394.6 million in 1998 to $777.5 million in 2002. The

majority of the trade deficit can be attributed to deficits with Canada and the EU. The U.S.

trade deficit with Canada increased from $155.8 million in 1998 to $372.6 million in 2002,

an increase of 139 percent. The U.S. trade deficit with the EU has also increased, although

at a slower pace. The U.S. deficit with the EU increased from $240.5 million in 1998 to

$310.7 million in 2002. The only major trading partner with which the U.S. has a trade

surplus in bakery products is Japan. The U.S. trade surplus with Japan has fluctuated during

the 1998-2002 period, but was larger in 2002 than in 1998. The United States ran a slight

trade surplus with all other countries in 1998, however, that surplus has steadily become a

trade deficit during the 1999-2002 period.

In spite of rising import levels, imports of bakery products are still small relative to the size

of the total U.S. market. However, imports can have a significant impact on certain segments

of the market or geographic regions along the U.S.-Canadian border. Improved

transportation systems and ESL technology have enabled imports to penetrate heretofore

distant markets.
22

Figure 3

U.S. imports for consumption of all bakery products, by major 

sources, 1998-2002

-

200

400

600

800

1,000

1,200

1,400

1998 1999 2000 2001 2002

($ millions)

All others

Mexico

EU

Canada

U.S. Imports

Figure 3 shows U.S. imports of all bakery products by major import source for the

1998-2002 period. Imports of all bakery products increased by 50 percent between 1998 and

2002. Imports from Canada experienced the largest increase in dollar terms, from

$434.2 million in 1998 to $673.3 million in 2002 (table B-14). Imports from Brazil,

Indonesia, China and Mexico showed the sharpest increase in percentage terms. 

Figure 4 shows the share of total U.S. imports of bread, cake, and pastry products by import

source for the 1998-2002 period. Fresh bread products are generally classified under HTS

subheading 1905.90.10.70, which includes not only loaves of bread, but such products as

bread crumbs, pitas, and tortillas. Fresh rolls and similar products are generally classified

under subheading 1905.90.10.90. Frozen bread and rolls, including parbaked products, are

classified under subheading 1905.90.10.41 and subheading 1905.90.10.49. However, these

subheadings, particularly subheadings 1905.90.10.41 and subheading 1905.90.10.90, contain

a number of other pastry products that would not commonly be referred to as bread.

Therefore, definitive import levels for bread versus rolls versus other bakery products cannot

be determined. The total import value of bread, rolls, pastry and related products has

increased during the 1998-2002 period. The value of imports increased from approximately

$378.6 million in 1998 to approximately $685.0 million in 2002 (table B-15).

Source: Compiled from official statistics of the U.S. Department of Commerce.
23

Figure 4

U.S. imports for consumption of bread, cake, and pastry products, 

by major sources, 1998-2002

-

100

200

300

400

500

600

700

800

1998 1999 2000 2001 2002

($millions)

All Others

Mexico

EU

Canada

Imports of products classified under HTS subheadings 1905.31, sweet biscuits and 1905.32,

waffles and wafers, can generally be considered cookie and cracker products. Figure 5 shows

the share of total U.S. imports of cookie products by import sources for the 1998-2002

period. Imports of these products grew considerably during the 1998-2002 period. The value

of imports increased from approximately $345.8 million in 1998 to approximately

$458.8 million in 2002, an increase of 33 percent (table B-16).

Principal Suppliers and Import Levels

Canada

Imports of all bakery products from Canada accounted for 52 percent, by value, of total

imports in 2002. Figure 6 presents trends in U.S. imports from Canada by product type.

Imports from Canada are distributed nationwide, although they are generally believed to be

concentrated in the eastern and upper-midwest regions and the northeast in particular.

Additionally, imports of all bakery products from Canada have increased significantly since

Source: Compiled from official statistics of the U.S. Department of Commerce.
24

Figure 6

U.S. imports of bakery products from Canada, by selected product 

types, 1998-2002

-

50

100

150

200

250

300

350

400

1998 1999 2000 2001 2002

($ millions)

Mix and dough products

Cookie and cracker products

Bread, pastry, and cake products

Figure 5

U.S. imports for consumption of cookie and cracker products, by 

major sources, 1998-2002

-

50

100

150

200

250

300

350

400

450

500

1998 1999 2000 2001 2002

($ millions)

All Others

Mexico

EU

Canada

Source: Compiled from official statistics of the U.S. Department of Commerce.

Source: Compiled from official statistics of the U.S. Department of Commerce.
 88 U.S. industry officials, interview by USITC staff, New York City, July 7-9, 2002.

 89 U.S. industry officials and European industry officials, telephone interviews by USITC staff,

United States, June 26 - July 16, 2002.

25

1998. Imports from Canada have increased from approximately $434.2 million in 1998 to

approximately $673.3 million in 2002, or by 55 percent.

At the beginning of the 1998-2002 period, imports of cookie and cracker products from

Canada accounted for a larger share of imports from Canada than bread, cake, and pastry

products. However, in 2001 and 2002, imports of bread, cake, and pastry products accounted

for a larger share of total imports from Canada. In particular, imports classified under HTS

subheading 1905.90.10.70, bread, and 1905.90.10.90, which are typically rolls and similar

products, increased from $48.7 million in 1998 to $77.6 million in 2002, an increase of

59 percent. Imports of frozen bread and roll products increased even more significantly, from

$29.8 million in 1998 to $88.6 million in 2002, an increase of nearly 2 fold. Bread products

produced under store brands or for private label customers are an important segment of U.S.

imports from Canada. There are indications that Canadian bakers are providing private label

or store brand bakery products to major grocery store chains in the northeastern United

States.88

Imports of cookie and cracker products from Canada include branded products produced for

major U.S. multinational corporations, and private label products that are capturing larger

shares of the private label market, particularly along the U.S.-Canadian border. One factor

that may be encouraging imports of cookies from Canada is the differing market dynamics

for imported sugar in each country. These characteristics are discussed in more detail in the

profile of the Canadian industry below.

Imports of mixes and dough products from Canada increased from $109.5 million in 1998

to $119.5 million in 2000 before declining in both 2001and 2002 to $106.8 million and

$103.2 million, respectively. Canada accounts for virtually all U.S. imports of mixes and

dough products. Imports from Canada held an import share of between 95 and 98 percent

during the 1998-2002 period (table B-17).

European Union

The EU is the second largest source of U.S. bakery product imports. Imports from the EU

consist of a wide variety of products. Figure 7 presents trends in U.S. imports of bakery

products from the EU by selected product types for the period 1998-2002. Certain EU

member countries have successful niche products that dominate their exports to the United

States. For example, imports from Denmark consist primarily of butter cookies, while a

significant share of imports from the United Kingdom consist of biscuits.89

The EU was the second largest source of imports of bread, cake, and pastry products

throughout the 1998-2002 period. However, the EU's import share fell during this period,

from 37.8 percent in 1998 to 27.7 percent in 2002. The total value of imports from the EU

has increased from $143.1 million in 1998 to $190.0 million in 2002, a rise of approximately

33 percent. Imports of cookie and cracker products from the EU increased at a more modest

pace, from $120.2 million in 1998 to $125.5 million, or by approximately 4 percent.
26

Figure 7 

U.S. imports of bakery products from the EU, by selected 

product types, 1998-2002

-

50

100

150

200

250

300

350

1998 1999 2000 2001 2002

($ millions )

Cookie and cracker products

Bread, pastry, and cake products

Imports of mixes and dough products from the EU account for a very small share of total

imports. Imports of mixes and dough products from the EU increased slightly during the

1998-2002 period, from approximately $707,000 in 1998 to $1.7 million in 2002. 

Mexico

Although Mexico accounts for only a small portion of U.S. imports of bakery products,

imports from Mexico have increased substantially. Imports of all bakery products from

Mexico increased from $49.6 million in 1998 to $104.3 million in 2002. Most of the increase

in imports consisted of bread, cake, and pastry products. Imports of these products increased

from $30.7 million in 1998 to $65.1 million in 2002. Imports of cookie and cracker products

from Mexico increased from $18.0 million in 1998 to$36.8 million in 2002. Mexico is not

a significant source of imports of mixes and dough products.

Source: Compiled from official statistics of the U.S. Department of Commerce.
27

U.S. Trade Measures

Tariff and nontariff measures

Many bakery products enter the United States free of duty. However, the U.S. maintains

several tariff-rate quotas on mixes and dough products with significant in-quota tariffs.

Depending on the sugar and dairy content of the product, the quota levels and tariffs vary.

Most mixes and dough products are subject to a tariff-rate quota of 5,398 metric tons with

an in-quota tariff rate of 10 percent ad valorem and an over-quota tariff rate of 42.3 cents per

kilogram plus 8.5 percent ad valorem. Quota fill is based on a first-come, first-serve basis.

Some mixes and dough products containing higher concentrations of dairy products are

subject to a tariff-rate quota of 4,105 metric tons with an in-quota tariff rate of 10 percent

and an over-quota tariff rate of 42.3 cents per kilogram plus 8.5 percent ad valorem.

However, under NAFTA, Canada and Mexico receive duty free access for these products.

U.S. Exports

U.S. exports of all bakery products totaled approximately $515.3 million in 2002. Exports

have grown 9.9 percent since 1998 (table B-18). Canada is by far the largest market for U.S.

exports, accounting for 58.4 percent of all exports in 2002. Canada is the largest export

market for U.S. bakery products for many of the same reasons that the United States is

Canada's largest export market, including geographic proximity and preferential tariff

treatment. Japan is the second largest market for U.S. exports, slightly ahead of Mexico; the

two countries accounted for 10.9 and 10.0 percent of exports, respectively, in 2002. Exports

to the EU accounted for 4.4 percent of total bakery product exports. 

U.S. exports of bread, cakes, and pastry products accounted for 42.5 percent of total bakery

product exports in 2002. Exports of these products fluctuated during the 1998-2002 period.

U.S. exports initially fell from $204.7 million in 1998 to $185.1 million and $185.7 million

in 1999 and 2000, before increasing in 2001 and 2002 to $206.5 and $219.0, respectively

(table B-19). As with exports of all bakery products, Canada is the largest export market for

these products, accounting for 64.9 percent of exports in 2002.

U.S. exports of cookie and cracker products increased significantly during 1998-2000;

however, exports declined in 2001 and 2002 (table B-20). The most significant decline has

been in exports to Canada, which declined from $89.8 million in 2001 to $78.7 million in

2002. However, Canada remains the largest U.S. export market for these goods, with a

66.8 percent share of total cookie and cracker exports.

U.S. exports of mixes and dough products increased from $137.4 million in 1998 to

$157.6 million in 2002 (table B-21). Again, Canada is the largest U.S. export market for

these products, but unlike cookie and cracker and bread products, exports to Canada do not

account for the majority of total exports, accounting for 42.2 percent of exports in 2002.

Japan is a significant market for U.S. exports of mixes and dough products, accounting for

22.2 percent of total exports in 2002. Exports to Japan are increasing at a slower rate than

exports to Canada, however.
 90 For further information on tariff and non-tariff barriers see USITC publication Processed

Foods and Beverages: A Description of Tariff and Non-Tariff Barriers for Major Products and

Their Impact on Trade, pub. No. 3455, Investigation No. 332-421, Oct. 2001.

 91 Mercosur countries are Argentina, Brazil, Paraguay, and Uruguay.

28

Foreign Trade Measures90

Bakery Products

The EU utilizes complex tariffs for most bakery products. The range of duties that can be

applied is quite variable and depends on whether the duties are applied to an agricultural

component, a sugar component, or a flour component. In 2000, the agricultural component

(EA) ranged from zero to i275.82 per 100 kg. The sugar component (S/Z) ranged from zero

to i38.99 per 100 kg. The flour component ranged from zero to i19.99 per 100 kg.

Additionally, sweet biscuits and other bakers’ wares are subject to a minimum ad valorem

rate (9.0 percent in 2000) in addition to the agricultural component at a higher ad valorem

rate (24.2 percent or 20.7 percent), plus additional duties for either the sugar or flour

component. 

The Mercosur common external tariff is set at 35 percent ad valorem for cookies, crackers,

and other bakery products.91 Other Latin American nations apply a range of tariffs.

Venezuela applies tariffs of 40 percent ad valorem on breads and other bakery products.

Colombia maintains an ad valorem tariff of 90 percent on breads and other bakery products.

In Asian markets, Japanese tariffs are relatively high, ranging from a low of 9 percent ad

valorem for breads to a high of 34 percent ad valorem for other bakery goods. In the case of

other bakery products, Japan places its highest tariffs on traditional rice-based products.

Korean tariffs are 8 percent ad valorem, while Taiwan applies a range of duties of up to

32.5 percent ad valorem. 

Mixes and Dough Products

Tariffs on flour mixes and doughs vary. Japanese tariffs range from 12 percent to 24 percent

ad valorem, and EU tariffs are 7.6 percent ad valorem plus the agricultural component to

account for the milk, starch, and sugar content of the product. Tariffs in other markets range

from 5 percent ad valorem in Australia to 17 percent ad valorem in Brazil. Some flour mixes

and doughs, depending upon the amount of sugar or dairy ingredients they contain, are

subject to sugar and dairy TRQs. For example, certain flour mixes and doughs entering Japan

fall under one of three TRQs covering wheat and wheat products, dairy products, and

starches. In Korea, some flour mixes and doughs fall under a TRQ covering rice and rice

products. The differences between in-quota duties and over-quota duties are significant. In

Japan the in-quota rate ranges between free and 25 percent ad valorem, depending on which

of three TRQs the products is classified under, with over-quota tariffs ranging between

¥90/kg to ¥375/kg. 
 92 Milling & Baking News, Refrigerated Dough Showdown, Apr. 13, 2002.

 93 Agriculture and Agri-Food Canada, Did you know...? Facts about the Canadian Agri-Food

Industry, 2001.

 94 Based on staff interviews with Canadian producers and U.S. importers.

29

Foreign Investment

There is some foreign investment in the bakery market both by foreign companies active in

the United States and by U.S. companies overseas. Additionally, Sara Lee, through its

purchase of the Earthgrains Company, produces private label refrigerated dough products

for sale in Mexico and produces some branded refrigerated dough products in Europe, such

as CroustiPate branded pizza dough, bread and rolls, and pastry.92 The Canadian firm,

George Weston Bakeries purchased Bestfoods Baking and became a significant producer in

the United States. Also, Bimbo Bakeries USA, an affiliate of Grupo Bimbo, Mexico’s largest

wholesale baking company purchased Mrs. Baird’s Bakeries in 1998 and therefore became

a major producer in the South and Southwest United States.

Foreign Market and Industry Profiles

Canada

Canadian agri-food industries are heavily dependent on the U.S. market. In 2000, 61 percent

of all Canadian agri-food exports were to the United States.93 Canadian exporters of grainbased foods are even more dependent on the U.S. market than Canadian food exporters as

a whole. Canada is both the largest source of imports of bakery products and the largest

export market for U.S. producers.

Canadian exporters enjoy advantages not available to other exporting nations. Foremost

among these are NAFTA preferences and geographic proximity to major U.S. markets.

While almost all bakery products became eligible for duty free entry into the United States

following the Uruguay Round, NAFTA has provided Canada with zero tariffs on the small

number of products not normally conferred duty free status. Canadian exporters have also

indicated that the increased efficiency and speed with which imports are processed by the

U.S. Customs Service are the real benefits of the NAFTA system.94 This is particularly

important with perishable products like bread and fresh bakery products. 

Additionally, Canadian producers enjoy a geographic proximity to major U.S. East Coast

markets that most other exporting countries do not have. This is a significant competitive

advantage when dealing with perishable food products. The Canadian industry is positioned

to take advantage of this proximity. With approximately 60 percent of its population in the

Provinces of Quebec and Ontario, the Canadian bakery industry is also heavily concentrated

in the eastern portion of the country. Prior Canadian census data report that approximately

78 percent of bakery employment is concentrated in Quebec and Ontario and an additional
 95 Human Resources Development Canada, Human Resource Profile, Bakery Products

Industry, 2001.

 96 Canada Bread Company, company press releases, Oct. 10, 2002 and Dec. 11, 2002.

 97 Canada Bread Company, 2002 Annual Report, 2003.

 98 Canada Bread Company, company press release, July 18, 2002.

 99 Ibid., Oct. 12, 2001.

 100 The Food Bureau, Agriculture and Agri-Food Canada, The Canadian Bread and Bakery

Industry Sub-Sector Profile, July 2000.

30

6 percent in the Atlantic region.95 This facilitates the export process as the major U.S. East

Coast markets are easily served from eastern Canada. This geographic concentration of the

Canadian industry can be seen in the pattern of imports from Canada. In 2002, 86.5 percent

of imports of bakery products from Canada entered the United States through border

crossing in Detroit, MI; Buffalo, NY; Ogdensburg, NY; and Portland, ME (table B-22). 

There has been some significant consolidation in the Canadian bakery industry in 2001 and

2002, particularly among producers of bread and roll products. Maple Leaf Foods, a large

Canadian agri-food business is the majority owner of Canada Bread Company. At the end

of 2002, Maple Leaf Foods and Canada Bread Company instituted a corporate restructuring

whereby all of Maple Leaf Foods bakery operations were consolidated into the Canada

Bread Company.96 This consolidation resulted in an expansion of the Canada Bread

Company, which now has operations in Canada, the United Kingdom, and the United States.

Canada Bread Company’s U.S. operations include the Grace Baking Company, which

produces fresh and frozen artisan bread products in San Francisco, CA and Maple Leaf

Bakery U.S., a producer of frozen par-baked bread, rolls, and bagels.97 Prior to the

consolidation of Maple Leaf Foods bakery operations into the Canada Bread Company, the

Canada Bread Company engaged in other merger and acquisition activity. In July 2002, the

Canada Bread Company purchased Olafson’s Baking Company in British Columbia.

Olafson’s Baking Company produces a range of bread and sweet good products.98 In October

2001, the Canada Bread Company obtained 100-percent ownership in Multi-Marques, a

Canadian bakery producer with operations in Quebec and Ontario.99 As part of this

acquisition, Canada Bread Company also became the majority owner of Ben’s Bakery, a

producer of fresh bread and roll products, with operations in Nova Scotia and New

Brunswick.

The Canadian commercial bread and bakery industry has developed more centralized, large

scale production operations. These operations have pursued cost reductions through the

implementation of higher levels of plant mechanization. Improvements in production

processes have resulted in a decline in the number of establishments from 555 in 1982 to 471

in 1997.100 However, the remaining, larger firms have undertaken capacity increases. During

the same period, real sales per establishment increased from C$4.1 million to C$4.4 million.

The development of larger production facilities is apparent from the distribution of

establishments by number of employees over the same period. Small establishments, with

less than 20 employees, accounted for less than 10 percent of total shipments. Medium

establishments, 20-200 employees, accounted for approximately 50 percent of total

shipments, while large establishments, 200 or more employees, accounted for the remaining

40 percent of shipments. Further, there is a high degree of concentration of ownership within

the industry. In 2000, the four leading enterprises accounted for about 50 percent of total 
 101 Ibid.

 102 Ibid. 

 103 World Baking Guide, 2002.

 104 The Food Bureau, Agriculture and Agri-Food Canada, The Canadian Bread and Bakery

Industry Sub-Sector Profile, July 2000.

 105 Agriculture and Agri-Food Canada,Canada’s Grain-Based Products Industry, 2001.

 106 World Baking Guide, 2002.

 107 U.S. and Canadian industry officials, telephone interviews by USITC staff, June 26-July 17,

2002.

 108 Ibid.

 109 U.S. industry officials, interviews by USITC staff, Sep. 4, 2002 and Apr. 11, 2003.

31

industry shipments. This measure likely understates the level of concentration, as several of

the largest firms own minority shares in other wholesale bakery firms.101

The Canadian bread and bakery industry had shipments valued at C$2.8 billion in 1997, up

28 percent from 1988 levels.102 More recent data on retail sales of bakery products indicates

continued growth in the Canadian market. Retail sales of bread, pastry, and cake products

increased from US$1.7 billion in 1996 to US$2.1 billion in 2000.103 Coincident with the

increase in shipments and sales has been the increasing importance of export sales to

Canadian bakers. Exports rose from 5 percent of shipments in 1988 to more than 14 percent

of shipments in 1997.104 The United States is by far Canada’s most important export market.

In 1999, more than 96 percent of all bakery exports were to the United States.

The Canadian cookie and cracker industry consisted of 32 manufacturing establishments in

1997, more than 85 percent of which were located in Ontario and Quebec.105 These

establishments had shipments valued at C$804.5 million, C$206.1 million of which were

exported. Of those exports, C$199 million were to the United States. The retail market for

cookie and cracker products in Canada is estimated at US$665.2 million in 2000, up from

US$583.7 million in 1996.106 The Canadian market for cookie and cracker products has not

grown as rapidly as the bread, pastry, and cake market. Canada’s trade surplus in cookie and

cracker products with the United States is relatively new. As recently as 1996, Canada had

a trade deficit with the United States in these products. 

Imports from Canada can serve a complimentary role in the U.S. market. In several cases

imports of bread products from Canada consist of products that will be used in further

processing, such as bread crumbs, or to round out U.S. producers' product offerings.107

However, in other cases increases in imports may have come at the expense of U.S.

production. For example, there are some indications that imports of bread products from

Canada have had an impact in northeastern U.S markets.108 Individual Canadian producers

are marketing fresh bread and roll products produced using ESL technology resulting in up

to a 21-day shelf life. Canadian producers are marketing these products in major U.S. East

Coast markets such as New York City. These Canadian producers are also reportedly selling

at very low prices.109 Given the significant merger and acquisition activity within the

Canadian industry, there is potential for dissemination of this ESL technology throughout

large segments of the Canadian industry. The dissemination of this technology could

increase competition in U.S. markets from imports from Canada.

The presence of state trading entities (STE) in the Canadian wheat market may have

important ramifications for the Canadian baking industry. The Canadian Wheat Board, a

Federal Government agency, maintains monopolistic control over the market for hard wheat
 110 USITC, Wheat Trading Practices: Competitive Conditions Between U.S. and Canadian

Wheat, Pub. 3465, Dec. 2001.

 111 Ontario Wheat Producers’ Marketing Board, The Farm Products Marketing Act, Regulation

No. 1-02.

 112 U.S. industry officials, telephone interviews by USITC staff, United States, Aug. 13, 2002.

 113 Euromonitor, Packaged Food Country Reports, for EU member countries, Nov. 2001.

 114 Ibid.

 115 World Baking Guide, 2002.

 116 Ibid.

32

in Canada, an important ingredient in bread flour.110 There are concerns within the U.S.

industry that the Canadian Wheat Board’s domestic pricing policies ensure lower-cost wheat

to Canadian millers, which in turn, could result in lower-cost bakery flour for Canadian

bakers. Additionally, the Ontario Wheat Producers’ Marketing Board, a Provincial STE,

maintains a similar form of control over the production and distribution of soft wheat in

Ontario, the major soft wheat producing region in Canada.111 The Ontario milling and baking

industry has had a government-imposed, preferential purchasing relationship with the

Ontario Wheat Producers’ Marketing Board. The Ontario milling and baking industry

contracts with the Ontario Wheat Producers’ Marketing Board for milling wheat every 24

months. As a result, the contracted price is set for 24 months. This ensures stable, and

depending on market fluctuations over the next 24 months, possibly favorable bakery flour

prices.

Canadian producers of bakery products, especially sweet goods producers, may benefit from

variations in the sugar markets in the United States and Canada. As a result of significant

U.S. trade barriers on imports of sugar, sugar prices in the United States are considerably

higher than world prices. These higher prices result in increased production costs for U.S.

bakers. Canadian bakers have access to sugar at world prices through a variety of programs,

including preferential tariff programs for Caribbean and developing countries. These

programs provide Canadian bakers with sugar at prices below those available to U.S. bakers.

Most bakery products imported into the United States are not subject to the tariff-rate quotas

on sugar and sugar-containing products. There are indications that U.S. producers have and

are continuing to move production to Canada to take advantage of cheaper sugar prices.112

Europe Union

The bakery market in the EU is mature with thousands of bakery operations. The retail

market for bakery products was estimated to be approximately i65.5 billion in 2000.113

Market growth has varied among EU countries. For example, the retail market for bakery

products in Italy and Sweden grew by 12 percent and 17 percent from 1998 to 2000,

respectively. However, in larger markets such as France and Germany, the markets grew by

approximately 4 percent and 3 percent, respectively.114 Per capita consumption of bakery

products in the EU varies across countries but is generally high, with per capita consumption

of bread at 85 kg in Germany, 53.5 kg in France, 80 kg in Italy, and 77 kg in the Netherlands

in 2000.115

Retail bakeries continue to play a very important role in the bakery market in the EU. Of the

estimated 25 million metric tons of bread production in Europe, approximately 17 million

metric tons is produced by retail, “craft” bakers.116 Germany and France are generally the

largest bakery producers in the EU, accounting for 6.5 million metric tons and 3.6 million
 117 Ibid.

 118 U.S. industry officials, interviews with USITC staff, New York City, July 7-9, 2002.

 119 Euromonitor, Packaged Food in Mexico, Nov. 2001.

 120 Ibid.

 121 Ibid.

 122 Ibid.

 123 U.S. industry official, telephone interview by USITC staff, United States, Aug. 13, 2002.

33

metric tons, respectively, of production in 2000.117 The EU market has seen much slower

growth in large supermarkets or hypermarkets than in the United States. This has maintained

the importance of retail bakeries in the EU market. However, large supermarket chains are

making important and significant inroads in the EU market and are exerting significant

downward price pressure on the bakery products market. 

Extra-EU imports face significant difficulties in penetrating the EU bakery products market.

Tariffs on imports into the EU provide competitive advantages to intra-EU trade, which does

not face any tariffs. As noted earlier, EU tariffs on bakery products can be quite significant.

Additionally, geographic proximity is an important advantage. Numerous U.S. producers

have indicated that, due to the lengthy shipment times to Europe, it is extremely difficult to

meet shelf life requirements.118

Mexico

In 2000 Mexico’s retail bakery market was estimated at pesos 84.6 billion, or approximately,

U.S. $8.9 billion.119 Mexico’s bakery market is growing rapidly; retail sales grew

38.8 percent from 1998 to 2000.120 In 2000, bread, pastry, and cake products accounted for

approximately 81 percent of the retail market, while cookie and cracker products accounted

for approximately 10 percent.121 Per capita bread consumption in Mexico is relatively low

at 15 kg; however, bread consumption is increasing, generally at the expense of tortilla

consumption. The Mexican market is similar to the EU market in that small, craft bakeries

dominate the market. These small retail bakeries accounted for approximately 73 percent of

retail sales in 2000.122 The largest commercial baker in Mexico is Grupo Bimbo. U.S.

industry officials are projecting that the Mexican industry will become more significantly

involved in the U.S. bakery products market. U.S. industry officials believe that U.S.

companies may shift some production to Mexico to take advantage of low sugar prices in

Mexico.123

APPENDIX A

EXPLANATION OF TARIFF AND TRADE

AGREEMENT TERMS

A-3

TARIFF AND TRADE AGREEMENT

TERMS

In the Harmonized Tariff Schedule of the United States(HTS), chapters 1 through 97 cover

all goods in trade and incorporate the internationally adopted Harmonized Commodity

Description and Coding System through the 6-digit level of product description. Subordinate

U.S. 8-digit rate lines, either enacted by Congress or proclaimed by the President, allow

more narrowly applicable duty rates; nonlegal 10-digit statistical reporting numbers provide

data of national interest. Chapters 98 and 99 contain special U.S. classifications and

temporary rate provisions, respectively. The HTS replaced the Tariff Schedules of the United

States (TSUS) effective Jan. 1, 1989. The HTS is updated by published supplements and by

electronic revisions at http://www.usitc.gov/taffairs.htm#HTS ; see preface pages and change

records in each document.

Duty rates in the general subcolumn of HTS column 1 are normal trade relations rates; many

general rates have been eliminated or are being reduced due to concessions resulting from

the Uruguay Round of Multilateral Trade Negotiations. General duty rates apply to all

countries except those listed in HTS general note 3(b) (Cuba, Laos, and North Korea) plus

Serbia and Montenegro, which are subject to the statutory rates set forth in column 2.

Specified goods from designated general-rate countries may be eligible for reduced rates of

duty or duty-free entry under preferential tariff programs, as set forth in the special

subcolumn of HTS rate of duty column 1 or in the general notes. If eligibility for special

tariff rates is not claimed or established, goods are dutiable at general rates. The HTS does

not list countries covered by a total or partial embargo; it likewise does not contain

antidumping or countervailing duties (consult the International Trade Administration of the

Department of Commerce).

The Generalized System of Preferences (GSP) affords nonreciprocal duty-free entry to

certain goods of designated beneficiary developing countries. The U.S. GSP, under title V

of the Trade Act of 1974, as amended, now applies to merchandise imported on or after Jan.

1, 1976, and before the close of Dec. 31, 2006. Indicated by the symbol "A", "A*", or "A+"

in the special subcolumn, The legal framework of the GSP is set forth in HTS general note

4; eligible articles must be the product of and imported directly from designated beneficiary

developing countries. Eligible products of listed sub-Saharan African countries may qualify

for duty-free entry under the African Growth and Opportunity Act (AGOA) (see HTS gen.

note 16) through Sept. 30, 2008, as indicated by the symbol “D” in the special subcolumn;

see subchapter XIX of chapter 98.

The Caribbean Basin Economic Recovery Act (CBERA) affords nonreciprocal tariff

preferences to designated Caribbean Basin developing countries. The CBERA--enacted in

title II of Pub. Law 98-67, implemented by Presidential Proclamation 5133 of Nov. 30, 1983,

and amended by the Customs and Trade Act of 1990, applies to goods entered, or withdrawn

from warehouse for consumption, on or after Jan. 1, 1984. Indicated by the symbol "E" or

"E*" in the special subcolumn, CBERA provides duty-free entry to eligible articles, and

reduced-duty treatment to certain other articles, which are the product of and imported

directly from designated countries (see HTS gen. note 7). Other eligible products of listed

beneficiary countries may qualify for duty-free or reduced-duty entry under the Caribbean
A-4

Basin Trade Partnership Act (CBTPA) (see HTS gen. note 17), through Sept. 30, 2008, as

indicated by the symbol “R” in the special subcolumn; see also subchapter XX of chapter 98.

Free rates of duty in the special subcolumn followed by the symbol "IL" are applicable to

products of Israel under the United States-Israel Free Trade Area Implementation Act of

1985 (IFTA), as provided in general note 8 to the HTS; see also subchapter VIII of

chapter 99. 

Nonreciprocal duty-free treatment in the special subcolumn followed by the symbol "J" or

"J*" in parentheses is afforded to eligible articles from designated beneficiary countries

under the Andean Trade Preference Act (ATPA), enacted as title II of Pub. Law 102-182

(effective July 22, 1992; see HTS gen. note 11) and renewed through December 31, 2006,

by the Andean Trade Promotion and Drug Eradication Act of 2002. Goods eligible for new

benefits under the latter act are designated by a “J+” in the special subcolumn; see also

subchapter XXI of chapter 98.

Preferential free rates of duty in the special subcolumn followed by the symbol "CA" are

applicable to eligible goods of Canada, and rates followed by the symbol "MX" are

applicable to eligible goods of Mexico, under the North American Free Trade Agreement

(NAFTA), as provided in general note 12 to the HTS and implemented effective Jan. 1,

1994, by Presidential Proclamation 6641 of Dec. 15, 1993. Goods must originate in the

NAFTA region under rules set forth in general note 12(t) and meet other requirements of the

note and applicable regulations.

Preferential rates of duty in the special subcolumn followed by the symbol “JO” are

applicable to eligible goods of Jordan under the United States-Jordan Free Trade Area

Implementation Act, (JFTA) effective as of Dec. 17, 2001; see HTS gen. note 18 and

subchapter IX of chapter 99.

Other special tariff treatment applies to particular products of insular possessions(gen. note

3(a)(iv)), products of the West Bank and Gaza Strip (gen. note 3(a)(v)), goods covered by

the Automotive Products Trade Act (APTA) (gen. note 5) and the Agreement on Trade in

Civil Aircraft (ATCA) (gen. note 6), articles imported from freely associated states (gen.

note 10), pharmaceutical products (gen. note 13), and intermediate chemicals for dyes

(gen. note 14).

The General Agreement on Tariffs and Trade 1994 (GATT 1994), pursuant to the

Agreement Establishing the World Trade Organization and based upon the earlier GATT

1947 (61 Stat. (pt. 5) A58; 8 UST (pt. 2) 1786), is the primary multilateral system of

discipline and principles governing international trade. The agreements mandate

most-favored-nation treatment, maintenance of scheduled concession rates of duty, and

national treatment for imported goods; GATT provides the legal framework for customs

valuation standards, "escape clause" (emergency) actions, antidumping and countervailing

duties, dispute settlement, and other measures. Results of the Uruguay Round of multilateral

tariff negotiations are set forth in separate schedules of concessions for each participating

contracting party, with the U.S. schedule designated as Schedule XX. Pursuant to the

Agreement on Textiles and Clothing (ATC) of the GATT 1994, member countries are

phasing out restrictions on imports under the prior "Arrangement Regarding International

Trade in Textiles" (known as the Multifiber Arrangement (MFA)). Under the MFA, a

departure from GATT 1947 provisions, importing and exporting countries negotiated

bilateral agreements limiting textile and apparel shipments, and importing countries could
A-5

take unilateral action to control shipments. Quantitative limits were established on textiles

and apparel of cotton, other vegetable fibers, wool, man-made fibers or silk blends in an

effort to prevent or limit market disruption in the importing countries. The ATC establishes

notification and safeguard procedures, along with other rules concerning the customs

treatment of textile and apparel shipments, and calls for the eventual complete integration

of this sector into the GATT 1994 and the phase-out of quotas over a ten-year period, or by

Jan. 1, 2005.

APPENDIX B

STATISTICAL TABLES

B-3

Table B-1

Bakery products industry: Number of establishments, employments, and value of shipments, 1998-2001

Employment Value of

shipments

Industry segment ($1,000)

Number of

establishments All

Production

related

Bakery products manufacturing:

1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,590 323,557 201,211 44,259,284

1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,637 310,475 188,328 45,428,028

2000 ........................................... (1

) 314,798 194,052 46,803,418

2001 ........................................... (1

) 318,680 193,616 47,895,965

Retail bakeries:

2

1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,673 74,653 47,134 3,304,889

1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,780 52,919 28,447 2,166,019

2000 ........................................... (1

) 52,367 27,937 2,625,161

2001 ........................................... (1

) 52,380 27,502 2,501,063

Commercial bakeries :

1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,765 164,686 88,188 21,862,561

1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,729 172,514 93,459 23,897,359

2000 ........................................... (1

) 175,635 97,395 24,963,795

2001 ........................................... (1

) 178,000 95,255 25,710,038

Frozen cakes, pies, & other pastries manufacturing:

1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242 15,402 12,554 2,594,896

1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233 15,047 12,173 2,637,771

2000 ........................................... (1

) 16,473 13,546 2,937,090

2001 ........................................... (1

) 16,742 13,744 3,008,063

Cookie and cracker manufacturing:

1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 411 42,189 32,726 10,288,805

1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 401 40,107 30,943 10,281,832

2000 ........................................... (1

) 39,655 30,629 10,383,544

2001 ........................................... (1

) 39,556 31,129 10,519,185

Flour mixes and dough:

1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250 15,232 11,843 5,028,916

1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247 17,196 13,249 5,288,669

2000 ........................................... (1

) 17,874 14,010 4,639,140

2001 ........................................... (1

) 19,962 15,914 4,769,750

Tortilla manufacturing:

1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249 11,395 8,766 1,179,217

1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247 12,692 10,057 1,156,378

2000 ........................................... (1

) 12,794 10,535 1,254,688

2001 ........................................... (1

) 12,040 10,072 1,387,866 1

 Not available.

2

 Data for retail bakery operations in 1998 is not directly comparable to prior and subsequent years. The 1998 data suffer from a

misclassification error that resulted in additional firms being improperly classified in this category.

Source: U.S. Census Bureau, Annual Survey of Manufacturers, Feb. 11, 2002, and Dec. 20, 2002, 1997 Economic Census, and

Statistics of U.S. Businesses, 1997-1999.
B-4

Table B-2Bakery products: Selected consumer price index data, January 1998-December 2002

January February March April May June July August September 

Bread1

1998 99.4 100.2 99.8 100.0 100.7 101.2 101.8 102.0 102.2 1999 103.4 103.7 103.1 104.1 103.1 104.1 104.1 103.1 103.7 2000 104.5 105.8 105.4 106.4 107.1 107.7 109.4 108.9 107.2 2001 109.6 110.6 111.4 111.2 112.6 112.5 113.6 113.2 113.5 2002 114.3 114.8 113.8 114.8 114.9 115.5 115.2 115.3 115.6 

Cookies2

1998 182.7 183.5 181.7 182.1 181.2 183.8 183.2 185.5 180.9 1999 187.9 186.9 185.3 185.3 186.6 184.9 187.4 186.5 184.8 2000 188.4 186.4 190.7 187.3 186.5 181.8 187.7 188.5 186.7 2001 188.3 188.7 189.6 189.5 189.2 188.3 188.2 190.5 192.2 20 02 196.6 197.8 197.9 195.0 196.0 193.6 193.6 191.3 194.4 

Crackers3

1998 211.4 207.1 211.4 215.7 216.8 214.2 213.5 212.0 215.8 1999 217.6 215.7 217.4 217.9 220.0 220.2 223.4 212.5 218.7 2000 222.6 224.3 214.9 220.2 223.7 222.1 226.4 228.1 227.2 2001 229.5 231.0 230.2 233.3 229.7 231.0 231.6 234.3 232.6 2002 233.1 234.3 238.3 237.1 236.1 238.5 236.0 235.7 239.1 

Frozen and refrigerated bakery products4

1998 183.7 183.0 186.3 186.6 183.2 188.1 186.1 188.9 188.3 1999 188.4 188.7 187.5 190.0 188.8 186.9 188.4 188.5 191.5 2000 188.8 188.8 189.6 189.8 191.1 190.4 192.9 193.5 191.6 2001 199.4 199.1 202.0 198.4 200.8 203.2 201.9 203.0 203.5 2002 208.0 206.6 205.7 207.2 209.1 206.9 207.2 209.8 209.6 

1 Bureau of Labor Statistics, consumer price index, current series CUUR0000SEFB01, U.S. city average.2 Bureau of Labor Statistics, consumer price index, current series CUSR0000SS02042, U.S. city average.3 Bureau of Labor Statistics, consumer price index, current series CUSR0000SS0206A, U.S. city average.4 Bureau of Labor Statistics, consumer price index, current series CUSR0000SS0206B, U.S. city average.

Source: U.S. Bureau of Labor Statistics, U.S. Department of Labor.
B-5

Table B-3

White pan bread prices, selected major U.S. cities, 1998-2001

1998 1999 2000 2001

––––––––––––––––– Dollars (per kilogram) –––––––––––––––––

Average price . . . . . . . . . . . . . . . . . . . . . . . . . 2.94 2.88 2.92 3.04

Highest reported price . . . . . . . . . . . . . . . . . . 3.59 3.59 3.87 3.76

Lowest reported price . . . . . . . . . . . . . . . . . . . 1.57 1.96 1.87 1.87

Second highest reported price . . . . . . . . . . . . 3.29 3.27 3.37 3.52

Second lowest reported price . . . . . . . . . . . . . 2.84 2.86 2.25 2.25

Source: Economist Intelligence Unit.

Table B-4

Bakery products: U.S. shipments, U.S. exports of domestic merchandise, U.S. imports for

consumption, and merchandise trade balance, 1998-2002

Year

U.S.

shipments Exports Imports

Apparent

consumption

Trade

balance

Ratio of imports

to consumption

–––––––––––––––––––––Value (1,000 dollars)–––––––––––––––––––––– Percentage

1998 . . . . . . . . 44,259,284 468,877 863,492 44,653,900 -394,616 1.9

1999 . . . . . . . . 45,428,028 475,014 980,431 45,933,445 -505,417 2.1

2000 . . . . . . . . 46,803,418 489,050 1,074,756 47,389,124 -585,706 2.3

2001 . . . . . . . . 47,895,965 505,575 1,153,341 48,543,730 -647,765 2.4

2002 ........ (1

) 515,348 1,292,868 (1) -777,520 (1) 1

 Not available.

Source: U.S. Census Bureau, Annual Survey of Manufacturers, Dec. 11, 2002, and data compiled from official statistics

of the U.S. Department of Commerce.

Table B-5

Cookie and cracker products: U.S. shipments, U.S. exports of domestic merchandise, U.S. imports

for consumption, and merchandise trade balance, 1998-2002

Year

U.S.

shipments Exports Imports

Apparent

consumption

Trade

balance

Ratio of imports

to consumption

–––––––––––––––––––––Value (1,000 dollars)–––––––––––––––––––––– Percentage

1998 . . . . . . . . 10,288,805 99,179 345,797 10,535,423 -246,618 3.3

1999 . . . . . . . . 10,281,832 130,040 395,800 10,547,592 -265,760 3.8

2000 . . . . . . . . 10,383,544 133,095 435,843 10,686,292 -302,748 4.1

2001 . . . . . . . . 10,519,185 130,035 427,180 10,816,330 -297,145 4.9

2002 ........ (1

) 117,832 458,845 (1) -341,012 (1) 1

 Not available.

Source: U.S. Census Bureau, Annual Survey of Manufacturers, Dec. 11, 2002, and data compiled from official statistics

of the U.S. Department of Commerce.

Table B-6

Mixes and dough products: U.S. shipments, U.S. exports of domestic merchandise, U.S. imports

for consumption, and merchandise trade balance, 1998-2002

Year

U.S.

shipments Exports Imports

Apparent

consumption

Trade

balance

Ratio of imports

to consumption

–––––––––––––––––––––Value (1,000 dollars)–––––––––––––––––––––– Percentage

1998 . . . . . . . . 5,028,916 137,440 112,079 5,003,555 25,361 2.2

1999 . . . . . . . . 5,288,669 141,850 120,936 5,267,755 20,914 2.3

2000 . . . . . . . . 4,639,140 153,352 122,645 4,608,432 30,708 2.7

2001 . . . . . . . . 4,769,750 152,153 110,352 4,727,950 41,800 2.3

2002 ........ (1

) 157,572 107,584 (1) 49,988 (1) 1

 Not available.

Source: U.S. Census Bureau, Annual Survey of Manufacturers, Dec. 11, 2002, and data compiled from official statistics

of the U.S. Department of Commerce.
B-6

Table B-7

Bakery products industry: Cost of materials, value of shipments, and ratio of cost of materials to shipments, 1998-2001

Industry segment and year

Cost of 

materials

Value of 

shipments

Ratio of cost of

materials to

shipments

––––––––––$1,000–––––––––– Percent

Bakery products manufacturing:

1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,529,145 44,259,284 37.3

1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,032,531 45,428,028 35.3

2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,316,496 46,803,418 34.9

2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,566,543 47,895,965 34.6

Retail bakeries:

1

1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,236,368 3,304,889 37.4

1999 ................................................. 795,825 2,166,019 36.7

2000 ................................................. 898,642 2,625,161 34.2

2001 ................................................. 866,521 2,501,063 34.6

Commercial bakeries :

1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,420,512 21,862,561 33.9

1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,597,294 23,897,359 31.8

2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,869,365 24,963,795 31.5

2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,001,912 25,710,038 31.1

Frozen cakes, pies, & other pastries manufacturing:

1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,185,236 2,594,896 45.7

1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,216,350 2,637,771 46.1

2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,346,964 2,937,090 45.9

2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,438,122 3,008,063 47.8

Cookie and cracker manufacturing:

1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,566,480 10,288,805 34.7

1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,286,050 10,281,832 32.0

2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,165,933 10,383,544 30.5

2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,243,344 10,519,185 30.8

Flour mixes and dough:

1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,626,006 5,028,916 52.2

1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,657,342 5,288,669 50.2

2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,527,541 4,639,140 54.5

2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,478,279 4,769,750 52.0

Tortilla manufacturing:

1998 ................................................. 494,543 1,179,217 41.9

1999 ................................................. 479,670 1,156,378 41.5

2000 ................................................. 508,051 1,254,688 40.5

2001 ................................................. 538,365 1,387,866 38.8 1

 Data for retail bakery operations in 1998 is not directly comparable to prior and subsequent years. The 1998 data suffer from a

misclassification error that resulted in additional firms being improperly classified in this category.

Source: U.S. Census Bureau, Annual Survey of Manufacturers, Feb. 11, 2002, and Dec. 20, 2002, 1997 Economic Census, and

Statistics of U.S. Businesses, 1997-1999.
B-7

Table B-8U.S. wheat: Prices of hard red winter, soft red winter, and hard red spring wheat, in selected U.S. cities, June 1997-Feb. 2003Year June July Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. 

––––––––––––––––––––––––––––––––––––––––––– Dollars (per bushel) ––––––––––––––––––––––––––––––––

KANSAS CITY, NO. 1 HARD RED WINTER (13 % PROTEIN)

1997/98 . . . . . . . $4.19 $3.80 $4.11 $4.07 $4.09 $4.09 $4.01 $3.80 $3.86 $3.49 $3.82 1998/99 . . . . . . . 3.57 3.57 3.12 3.17 3.67 3.89 3.74 3.61 3.35 3.34 3.34 1999/00 . . . . . . . 3.22 3.39 3.42 3.52 3.40 3.54 3.44 3.46 3.37 3.29 3.30 2000/01 . . . . . . . 3.59 3.25 3.13 3.32 3.59 3.60 3.60 3.64 3.46 3.50 3.49 2001/02 . . . . . . . 3.47 3.35 3.27 3.27 3.33 3.44 3.36 3.41 3.37 3.32 3.31 2002/03 . . . . . . . 3.61 3.91 4.30 5.05 5.10 4.75 4.39 4.05 4.09

CHICAGO, NO. 2 SOFT RED WINTER 

1997/98 . . . . . . . 3.38 3.30 3.52 3.49 3.51 3.44 3.31 3.27 3.26 3.25 2.91 1998/99 . . . . . . . 2.72 2.51 2.39 2.32 2.56 2.58 2.49 2.46 2.28 2.63 2.31 1999/00 . . . . . . . 2.20 1.94 2.09 2.12 1.98 1.96 2.12 2.34 2.38 2.34 2.30 2000/01 . . . . . . . 2.41 2.14 2.08 2.13 2.36 2.42 2.47 2.57 2.49 2.56 2.52 2001/02 . . . . . . . 2.40 2.56 2.57 2.57 2.68 2.75 2.83 2.96 2.74 2.76 2.75 2002/03 . . . . . . . 2.81 3.19 3.42 3.92 3.89 3.85 3.53 3.32 3.44

MINNEAPOLIS, DARK NO. 1 SPRING (13% PROTEIN)

1997/98 . . . . . . . 4.31 4.08 4.34 4.33 4.32 4.30 4.18 4.03 4.05 4.19 4.19 1998/99 . . . . . . . 3.91 3.83 3.46 3.39 3.87 3.98 3.86 3.72 3.67 3.75 3.55 1999/00 . . . . . . . 3.65 3.46 3.29 3.32 3.23 3.42 3.38 3.19 3.37 3.44 3.50 2000/01 . . . . . . . 3.50 3.24 2.99 3.10 3.52 3.64 3.60 3.60 3.53 3.45 3.59 2001/02 . . . . . . . 3.63 3.51 3.37 3.47 3.68 3.61 3.54 3.51 3.51 3.46 3.52 2002/03 . . . . . . . 3.55 4.06 4.44 5.20 5.12 5.00 4.50 4.30 4.54Source: Economic Research Service, USDA, Wheat Yearbook Tables.
B-8

Table B-9

U.S. domestic production of wheat flour, 1997-2002, and bakery flour prices, in selected cities,

marketing years 1997/98-2001/02

Year

Domestic flour

production1 Market Year

Bakery flour price 

at Kansas City at Minneapolis

1,000 hundred

weights

––––––– Dollars (per hundred weight) ––––––––

1997 ............ 404,143 1997/98 $9.98 $10.62

1998 ............ 398,914 1998/99 9.06 9.80

1999 ............ 411,968 1999/2000 8.86 9.30

2000 ............ 421,270 2000/01 9.36 9.28

2001 ............ 404,521 2

2001/02 8.99 9.16

2002 ............ 400,458 1

 Commercial production of wheat flour, whole wheat, industrial, and durum flour and farina. 2

 Projected.

Note.—Totals may not reconcile because of rounding.

Source: Wheat Situation and Outlook Yearbook, Economic Research Service, USDA, Mar. 2002. U.S. Bureau of the

Census, Flour Milling Products: 2001, Aug. 2002 and Flour Milling Products, Fourth Quarter 2002, Feb. 2003.
B-9

Table B-10Wheat flour, producer price index, Jan. 1998-Feb. 2003Year Jan. Feb. Mar. Apr. May Jun. July Aug. Sept. Oct. 1998 ........ 106.8 108.1 111.5 110.1 109.9 106.4 105.5 101.8 100.9 106.6 1999 ........ 104.8 102.7 105 100.5 102.2 102.7 100.7 103.5 101.4 99.8 

2000 . . . . . . . . 99.9 99.9 100.2 99.4 100.1 101.7 100.2 100.4 101.2 105.2 

2001 ........ 104.7 105.1 106.2 105.7 106.9 108.2 107.9 106.8 107.4 110 

2002 ........ 109.6 109.6 110.6 106.5 108.2 108.8 112.6 115.5 120.9 123 

2003 ........ 1119.9 1122.2

1 Preliminary.

Source: Bureau of Labor Statistics, U.S. Department of Labor, PPI series WPU02120301.

Table B-11U.S. raw sugar price, New York, Jan. 1998-Mar. 20031Year Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. 

––––––––––––––––––––––––––––––––––––––––––––––––––––– Cents per pound––––––––––––––––––––––––––––

1998 . . . . . . . 21.85 21.79 21.74 22.14 22.31 22.42 22.66 22.19 21.92 21.67 21999 . . . . . . . 22.41 22.38 22.55 22.57 22.65 22.61 22.61 21.24 20.10 19.50 12000 . . . . . . . 17.70 17.24 18.46 19.43 19.12 19.31 17.64 18.12 18.97 21.15 22001 . . . . . . . 20.81 21.18 21.40 21.51 21.19 21.04 20.64 21.10 20.87 20.90 22002 . . . . . . . 21.03 20.69 19.92 19.73 19.52 19.93 20.86 20.91 21.65 21.94 22003 . . . . . . . 21.62 21.91 22.14 

1 Contract No. 14, duty fee paid New York.

Source: Economic Research Service, USDA, Sugar and Sweeteners Yearbook Tables, Apr. 1, 2003.

Table B-12World raw sugar price, Jan. 1998-Mar. 20031Year Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. N

––––––––––––––––––––––––––––––––––––––––––––––––––––––Cents per pound –––––––––––––––––––––––––––

1998 . . . . . . 11.71 11.06 10.66 10.27 10.17 9.33 9.70 9.50 8.21 8.24 81999 . . . . . . 8.40 7.05 6.11 5.44 5.83 6.67 6.11 6.39 6.98 6.90 62000 . . . . . . 5.64 5.51 5.54 6.48 7.33 8.72 10.18 11.14 10.35 10.96 102001 . . . . . . 10.63 10.26 9.64 9.27 9.96 9.80 9.48 8.77 8.60 7.15 72002 . . . . . . 7.96 6.81 7.27 7.12 7.33 7.07 8.02 7.86 8.54 8.84 82003 . . . . . . 8.56 9.14 8.50 

1 Contract No. 11-f.o.b. stowed Caribbean port, including Brazil, bulk spot price.

Source: Economic Research Service, USDA, Sugar and Sweetener Yearbook Tables, Apr. 1, 2003.
B-10

Table B-13

Bakery products: U.S. domestic exports, U.S. imports for consumption, and merchandise trade

balance, 1998-2002

1998 1999 2000 2001 2002

–––––––––––––––– Value (1,000 dollars)–––––––––––––––––

U.S. exports of domestic merchandise:

Canada .............................. 278,483 282,465 290,362 304,958 300,713

Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,118 42,638 47,617 57,200 56,348

Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,849 35,380 47,229 44,065 51,304

EU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,149 31,713 20,930 24,568 22,811

Singapore . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,304 2,994 3,450 3,694 4,714

China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 808 849 1,135 1,043 4,171

All Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79,167 78,975 78,326 70,049 75,286

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 468,877 475,014 489,050 505,575 515,348

U.S. imports for consumption:

Canada .............................. 434,246 499,587 558,224 597,425 673,263

Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,915 24,724 24,666 24,526 27,598

Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,642 56,402 70,838 81,141 104,316

EU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 276,651 293,825 302,935 322,018 333,545

Singapore . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,220 6,530 7,195 8,270 9,124

China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,224 8,628 9,335 12,314 15,017

All Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,595 90,735 101,563 107,646 130,002

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 863,492 980,431 1,074,756 1,153,341 1,292,868

U.S. merchandise trade balance:

Canada .............................. -155,763 -217,123 -267,862 -292,467 -372,550

Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,203 17,915 22,952 32,674 28,750

Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -17,793 -21,021 -23,609 -37,076 -53,012

EU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -240,502 -262,112 -282,006 -297,451 -310,735

Singapore . . . . . . . . . . . . . . . . . . . . . . . . . . . . -3,916 -3,536 -3,745 -4,577 -4,410

China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -4,417 -7,779 -8,200 -11,271 -10,847

All Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,572 -11,760 -23,237 -37,597 -54,716

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -394,616 -505,417 -585,706 -647,765 -777,520

Source: Compiled from official statistics of the U.S. Department of Commerce, based on U.S. HTS subheadings 1901.20

and 1905.
B-11

Table B-14

Bakery products: U.S. imports for consumption, by selected countries, 1998-2002

Country 1998 1999 2000 2001 2002

–––––––––––––––––––– Value (1,000 dollars) ––––––––––––––––––––––

Canada ........................... 434,246 499,587 558,224 597,425 673,263

EU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 276,651 293,825 302,935 322,018 333,545

Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,642 56,402 70,838 81,141 104,316

Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,915 24,724 24,666 24,526 27,598

China . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,224 8,628 9,335 12,314 15,017

Taiwan . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,758 10,184 11,387 11,148 11,738

Indonesia . . . . . . . . . . . . . . . . . . . . . . . . . 1,161 1,861 5,369 7,885 11,709

Israel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,898 8,585 8,725 10,194 9,900

Singapore . . . . . . . . . . . . . . . . . . . . . . . . . 6,220 6,530 7,195 8,270 9,124

Brazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 663 9,258 10,371 6,655 8,353

All others . . . . . . . . . . . . . . . . . . . . . . . . . . 53,116 60,847 65,711 71,763 88,303

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . 863,492 980,431 1,074,756 1,153,341 1,292,868

––––––––––––––––––––––– Percent –––––––––––––––––––––––––––

Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.3 51.0 51.9 51.8 52.1

EU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.0 30.0 28.2 27.9 25.8

Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.7 5.8 6.6 7.0 8.1

Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2 2.5 2.3 2.1 2.1

China . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6 0.9 0.9 1.1 1.2

Taiwan . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 1.0 1.1 1.0 0.9

Indonesia . . . . . . . . . . . . . . . . . . . . . . . . . 0.1 0.2 0.5 0.7 0.9

Israel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.9 0.9 0.8 0.9 0.8

Singapore . . . . . . . . . . . . . . . . . . . . . . . . . 0.7 0.7 0.7 0.7 0.7

Brazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1 0.9 1.0 0.6 0.6

All others . . . . . . . . . . . . . . . . . . . . . . . . . . 6.2 6.2 6.1 6.2 6.8

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0 100.0 100.0 100.0 100.0

Source: Compiled from official statistics of the U.S. Department of Commerce, based on US HTS subheading

1901.20, 1905.10.00, 1905.20.00, 1905.31.00, 1905.32.00, 1905.40.00, and 1905.90.10.

Table B-15

Bread, pastries, and cake products: U.S. imports for consumption, by selected countries,

1998-2002

Country 1998 1999 2000 2001 2002

––––––––––––––––– Value (1,000 dollars) –––––––––––––––––

Canada ............................... 126,863 148,376 186,973 241,346 303,266

EU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143,094 154,838 154,565 182,985 189,952

Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,656 33,808 43,685 47,797 65,091

Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,119 22,102 21,876 22,473 25,655

China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,478 7,343 8,102 11,101 13,893

All others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56,387 60,349 65,973 71,300 87,128

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 378,597 426,816 481,175 577,002 684,985

–––––––––––––––––––––– Percent –––––––––––––––––––––––

Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33.5 34.8 38.9 41.8 44.3

EU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37.8 36.3 32.1 31.7 27.7

Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.1 7.9 9.1 8.3 9.5

Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.5 5.2 4.5 3.9 3.7

China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 1.7 1.7 1.9 2.0

All others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.9 14.1 13.7 12.4 12.7

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0 100.0 100.0 100.0 100.0

Source: Compiled from official statistics of the U.S. Department of Commerce, based on US HTS subheading

1905.90.10.
B-12

Table B-16

Cookie and cracker products: U.S. imports for consumption, by selected countries, 1998-2002

Country 1998 1999 2000 2001 2002

––––––––––––––––––Value (1,000 dollars) –––––––––––––––––––

Canada .............................. 186,824 218,402 237,282 233,757 248,303

EU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120,236 120,314 132,115 120,786 125,540

Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,975 21,371 25,500 31,468 36,769

Indonesia . . . . . . . . . . . . . . . . . . . . . . . . . . . . 708 1,550 5,118 7,806 11,652

Brazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 8,557 8,884 4,907 4,582

All others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,955 25,606 26,944 28,455 31,999

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 345,797 395,800 435,843 427,180 458,845

––––––––––––––––––––––– Percent –––––––––––––––––––––––

Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54.0 55.2 54.4 54.7 54.1

EU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34.8 30.4 30.3 28.3 27.4

Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.2 5.4 5.9 7.4 8.0

Indonesia . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2 0.4 1.2 1.8 2.5

Brazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0 2.2 2.0 1.1 1.0

All others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.8 6.5 6.2 6.7 7.0

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0 100.0 100.0 100.0 100.0

Source: Compiled from official statistics of the U.S. Department of Commerce, based on U.S. HTS subheading

1905.31.00, and 1905.32.00.

Table B-17

Mixes and dough products: U.S. imports for consumption, by selected countries, 1998-2002

Country 1998 1999 2000 2001 2002

–––––––––––––––––Value (1,000 dollars) ––––––––––––––––––

Canada ............................... 109,513 117,741 119,470 106,817 103,171

EU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 707 1,240 1,213 1,086 1,684

Israel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 110 151 490 443

Argentina . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 70 136 189 386

Taiwan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 540 474 514 434 351

All others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,218 1,301 1,160 1,336 1,549

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112,079 120,936 122,645 110,352 107,584

–––––––––––––––––––––– Percent –––––––––––––––––––––––

Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97.7 97.4 97.4 96.8 95.9

EU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6 1.0 1.0 1.0 1.6

Israel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1 0.1 0.1 0.4 0.4

Argentina . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0 0.1 0.1 0.2 0.4

Taiwan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.5 0.4 0.4 0.4 0.3

All others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 1.1 0.9 1.2 1.4

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0 100.0 100.0 100.0 100.0

Source: Compiled from official statistics of the U.S. Department of Commerce, based on U.S. HTS subheading

1901.20.
B-13

Table B-18

Bakery products: U.S. exports of domestic merchandise, by selected countries, 1998-2002

Country 1998 1999 2000 2001 2002

–––––––––––––––––Value (1,000 dollars) ––––––––––––––––––

Canada ................................ 278,483 282,465 290,362 304,958 300,713

Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,118 42,638 47,617 57,200 56,348

Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,849 35,380 47,229 44,065 51,304

EU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,149 31,713 20,930 24,568 22,811

Hong Kong . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,466 3,373 4,211 4,164 6,589

Korea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,249 3,980 5,189 4,606 6,079

Singapore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,304 2,994 3,450 3,694 4,714

China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 808 849 1,135 1,043 4,171

Dominican Republic . . . . . . . . . . . . . . . . . . . . . . 3,044 3,217 4,068 3,929 3,993

Philippines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,210 2,529 1,619 2,918 3,300

All others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69,198 65,877 63,240 54,431 55,325

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 468,877 475,014 489,050 505,575 515,348

––––––––––––––––––––––– Percent ––––––––––––––––––––––

Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59.4 59.5 59.4 60.3 58.4

Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.6 9.0 9.7 11.3 10.9

Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.8 7.4 9.7 8.7 10.0

EU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.7 6.7 4.3 4.9 4.4

Hong Kong . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.7 0.7 0.9 0.8 1.3

Korea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.5 0.8 1.1 0.9 1.2

Singapore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.5 0.6 0.7 0.7 0.9

China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2 0.2 0.2 0.2 0.8

Dominican Republic . . . . . . . . . . . . . . . . . . . . . . 0.6 0.7 0.8 0.8 0.8

Philippines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3 0.5 0.3 0.6 0.6

All others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.8 13.9 12.9 10.8 10.7

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0 100.0 100.0 100.0 100.0

Source: Compiled from official statistics of the U.S. Department of Commerce, based on U.S. Schedule B numbers

1901.20, 1905.10.00, 1905.20.00, 1905.31.00, 1905.32.00, 1905.40.00, and 1905.90.10.
B-14

Table B-19

Bread, pastry, and cake products: U.S. exports of domestic merchandise, by selected countries,

1998-2002

Country 1998 1999 2000 2001 2002

––––––––––––––––––––Value (1,000 dollars)––––––––––––––––––––––

Canada .......................... 142,802 134,604 127,674 139,129 142,208

Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,938 5,634 7,054 11,088 17,458

Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . 7,842 7,345 9,225 12,274 16,902

EU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,496 11,437 10,795 15,997 13,889

Korea . . . . . . . . . . . . . . . . . . . . . . . . . . . 601 1,467 3,061 2,386 2,882

China . . . . . . . . . . . . . . . . . . . . . . . . . . . 439 564 693 404 2,553

Singapore . . . . . . . . . . . . . . . . . . . . . . . . 203 696 1,291 1,583 2,037

Taiwan . . . . . . . . . . . . . . . . . . . . . . . . . . 762 1,317 1,100 1,763 1,499

Guatemala . . . . . . . . . . . . . . . . . . . . . . . 356 536 744 872 1,396

Australia . . . . . . . . . . . . . . . . . . . . . . . . . 2,933 812 2,055 1,576 1,222

All others . . . . . . . . . . . . . . . . . . . . . . . . . 27,370 20,706 22,043 19,377 16,984

Total . . . . . . . . . . . . . . . . . . . . . . . . . . 204,743 185,117 185,735 206,450 219,031

––––––––––––––––––––––––– Percent ––––––––––––––––––––––––––

Canada . . . . . . . . . . . . . . . . . . . . . . . . . . 69.7 72.7 68.7 67.4 64.9

Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.9 3.0 3.8 5.4 8.0

Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . 3.8 4.0 5.0 5.9 7.7

EU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.6 6.2 5.8 7.7 6.3

Korea . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3 0.8 1.6 1.2 1.3

China . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2 0.3 0.4 0.2 1.2

Singapore . . . . . . . . . . . . . . . . . . . . . . . . 0.1 0.4 0.7 0.8 0.9

Taiwan . . . . . . . . . . . . . . . . . . . . . . . . . . 0.4 0.7 0.6 0.9 0.7

Guatemala . . . . . . . . . . . . . . . . . . . . . . . 0.2 0.3 0.4 0.4 0.6

Australia . . . . . . . . . . . . . . . . . . . . . . . . . 1.4 0.4 1.1 0.8 0.6

All others . . . . . . . . . . . . . . . . . . . . . . . . . 13.4 11.2 11.9 9.4 7.8

Total . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0 100.0 100.0 100.0 100.0

Source: Compiled from official statistics of the U.S. Department of Commerce, based on U.S. Schedule B number

1905.90.10.
B-15

Table B-20

Cookie and cracker products: U.S. exports of domestic merchandise, by selected countries,

1998-2002

Country 1998 1999 2000 2001 2002

–––––––––––––––––––Value (1,000 dollars)––––––––––––––––––––––

Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . 71,552 80,018 87,261 89,812 78,710

Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,450 9,014 14,783 14,141 12,687

Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,488 4,892 2,986 8,000 3,616

Philippines . . . . . . . . . . . . . . . . . . . . . . . . 494 1,458 654 1,247 1,749

Singapore . . . . . . . . . . . . . . . . . . . . . . . . . 731 1,369 1,185 1,099 1,741

Venezuela . . . . . . . . . . . . . . . . . . . . . . . . . 384 242 454 467 1,651

EU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,136 14,448 4,649 2,059 1,314

Korea . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170 1,324 965 894 1,296

Bahamas . . . . . . . . . . . . . . . . . . . . . . . . . 456 920 604 898 1,152

Taiwan . . . . . . . . . . . . . . . . . . . . . . . . . . . 175 185 365 566 1,050

All others . . . . . . . . . . . . . . . . . . . . . . . . . . 13,144 16,172 19,189 10,851 12,868

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . 99,179 130,040 133,095 130,035 117,832

–––––––––––––––––––––––– Percent ––––––––––––––––––––––––––

Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . 72.1 61.5 65.6 69.1 66.8

Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.5 6.9 11.1 10.9 10.8

Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.5 3.8 2.2 6.2 3.1

Philippines . . . . . . . . . . . . . . . . . . . . . . . . 0.5 1.1 0.5 1.0 1.5

Singapore . . . . . . . . . . . . . . . . . . . . . . . . . 0.7 1.1 0.9 0.8 1.5

Venezuela . . . . . . . . . . . . . . . . . . . . . . . . . 0.4 0.2 0.3 0.4 1.4

EU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2 11.1 3.5 1.6 1.1

Korea . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2 1.0 0.7 0.7 1.1

Bahamas . . . . . . . . . . . . . . . . . . . . . . . . . 0.5 0.7 0.5 0.7 1.0

Taiwan . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2 0.1 0.3 0.4 0.9

All others . . . . . . . . . . . . . . . . . . . . . . . . . . 13.3 12.4 14.4 8.3 10.9

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0 100.0 100.0 100.0 100.0

Source: Compiled from official statistics of the U.S. Department of Commerce, based on U.S. Schedule B numbers

1905.31.00, and 1905.32.00.
B-16

Table B-21

Mixes and dough products: U.S. exports of domestic merchandise, by selected countries,

1998-2002

Country 1998 1999 2000 2001 2002

–––––––––––––––––––––Value (1,000 dollars) ––––––––––––––––––––––

Canada . . . . . . . . . . . . . . . . . . . . . . . . 53,182 56,116 62,129 63,462 66,466

Japan . . . . . . . . . . . . . . . . . . . . . . . . . 30,599 31,840 37,414 37,724 34,972

Mexico . . . . . . . . . . . . . . . . . . . . . . . . 16,888 18,523 22,559 17,078 19,601

EU . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,717 4,848 5,107 6,018 6,388

Hong Kong . . . . . . . . . . . . . . . . . . . . . 946 1,033 1,546 2,227 4,941

Dominican Republic . . . . . . . . . . . . . . 385 653 918 2,110 2,413

Korea . . . . . . . . . . . . . . . . . . . . . . . . . 1,478 1,181 1,163 1,327 1,753

Jamaica . . . . . . . . . . . . . . . . . . . . . . . 437 510 606 1,557 1,638

Panama . . . . . . . . . . . . . . . . . . . . . . . 893 875 699 983 1,316

Kuwait . . . . . . . . . . . . . . . . . . . . . . . . . 842 1,085 993 783 1,131

All others . . . . . . . . . . . . . . . . . . . . . . . 27,074 25,185 20,219 18,884 16,954

Total . . . . . . . . . . . . . . . . . . . . . . . . 137,440 141,850 153,352 152,153 157,572

––––––––––––––––––––––––– Percent ––––––––––––––––––––––––––––

Canada . . . . . . . . . . . . . . . . . . . . . . . . 38.7 39.6 40.5 41.7 42.2

Japan . . . . . . . . . . . . . . . . . . . . . . . . . 22.3 22.4 24.4 24.8 22.2

Mexico . . . . . . . . . . . . . . . . . . . . . . . . 12.3 13.1 14.7 11.2 12.4

EU . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.4 3.4 3.3 4.0 4.1

Hong Kong . . . . . . . . . . . . . . . . . . . . . 0.7 0.7 1.0 1.5 3.1

Dominican Republic . . . . . . . . . . . . . . 0.3 0.5 0.6 1.4 1.5

Korea . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 0.8 0.8 0.9 1.1

Jamaica . . . . . . . . . . . . . . . . . . . . . . . 0.3 0.4 0.4 1.0 1.0

Panama . . . . . . . . . . . . . . . . . . . . . . . 0.6 0.6 0.5 0.6 0.8

Kuwait . . . . . . . . . . . . . . . . . . . . . . . . . 0.6 0.8 0.6 0.5 0.7

All others . . . . . . . . . . . . . . . . . . . . . . . 19.7 17.8 13.2 12.4 10.8

Total . . . . . . . . . . . . . . . . . . . . . . . . 100.0 100.0 100.0 100.0 100.0

Source: Compiled from official statistics of the U.S. Department of Commerce, based on U.S. Schedule B number

1901.20.
B-17

Table B-22

Bakery products: U.S. imports for consumption from Canada, by Customs District, 1998-2002

Customs District 1998 1999 2000 2001 2002

––––––––––––––––– Value (1,000 dollars) –––––––––––––––––––

Detroit, MI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187,546 207,518 237,687 268,909 307,275

Buffalo, NY . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156,597 182,993 188,755 181,291 207,166

Seattle, WA . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,357 28,603 34,414 39,888 48,616

Ogdensburg, NY . . . . . . . . . . . . . . . . . . . . . . . . 35,212 43,848 47,589 48,632 43,415

Portland, ME . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,575 10,715 16,301 14,960 24,208

Great Falls, MT . . . . . . . . . . . . . . . . . . . . . . . . . 2,573 8,321 11,985 18,553 19,615

Pembina, ND . . . . . . . . . . . . . . . . . . . . . . . . . . 6,078 9,310 9,334 17,070 17,745

St. Albans, VT . . . . . . . . . . . . . . . . . . . . . . . . . . 10,126 6,586 10,546 7,101 4,871

San Juan, PR . . . . . . . . . . . . . . . . . . . . . . . . . . 239 209 176 43 84

New York, NY . . . . . . . . . . . . . . . . . . . . . . . . . . 23 28 3 6 76

Miami, FL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 - 8 22 65

Los Angeles, CA . . . . . . . . . . . . . . . . . . . . . . . . - 27 57 20 51

Duluth, MN . . . . . . . . . . . . . . . . . . . . . . . . . . . . 916 560 550 392 35

Chicago, IL . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 42 57 141 22

Tampa, FL . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 2 - 7 8

Philadelphia, PA ........................ - - - - 8

Cleveland, OH ......................... - - - 7 3

Anchorage, AK . . . . . . . . . . . . . . . . . . . . . . . . . 868 715 698 346 -

Columbia-Snake, OR . . . . . . . . . . . . . . . . . . . . - - 8 - -

Dallas-Fort Worth, TX . . . . . . . . . . . . . . . . . . . . - 10 - - -

Honolulu, HI . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 21 20 13 -

Houston-Galveston, TX . . . . . . . . . . . . . . . . . . - - - 3 -

Laredo, TX . . . . . . . . . . . . . . . . . . . . . . . . . . . . - 11 - - -

Minneapolis, MN . . . . . . . . . . . . . . . . . . . . . . . . - 20 - - -

New Orleans, LA . . . . . . . . . . . . . . . . . . . . . . . . - 4 - 15 -

Norfolk, VA . . . . . . . . . . . . . . . . . . . . . . . . . . . . - - 6 - -

San Diego, CA . . . . . . . . . . . . . . . . . . . . . . . . . 18 - - 6 -

San Francisco, CA . . . . . . . . . . . . . . . . . . . . . . 26 - 11 - -

Savannah, GA . . . . . . . . . . . . . . . . . . . . . . . . . 15 - 17 - -

St. Louis, MO . . . . . . . . . . . . . . . . . . . . . . . . . . - 30 - - -

Unknown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 16 - - -

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 434,242 499,571 558,224 597,425 673,263

Source: Compiled from official statistics of the U.S. Department of Commerce. 
B-18

Table B-23Bakery products: Harmonized Tariff Schedule subheading; description; U.S. col 1 rate of duty as of Jan. 1, 2003; bound concession rate of dutU.S. Imports, 2002HTSsubheading Description

Column 1 rate of duty, as of Jan 1, 2003 Bound duty, 

UruguayRound

U20

General Special1

––

Mixes and doughs for the preparation of bakers’ wares ofheading 1905:

Containing over 25 percent by weight of 

butterfat, not put up for retail sale: . . . . . . . . . . . . . .

1901.20.02 Described in general note 15 of the tariff 

schedule and entered pursuant to its provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10% Free (A, CA, E, IL, J, JO, MX) 20% Other:

Dairy products described in additional U.S. 

note 1 to chapter 4:

1901.20.05 Described in additional U.S. note 10 to 

chapter 4 and enter pursuant to its

provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10% Free (A, CA, E, IL, J, JO) 20% 

1901.20.15 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.3¢/kg+8.5% Free (MX)

See 9909.04.05, 9909.04.48(JO) 49.8¢/kg+10% 

Other:

Articles containing over 65 percent by dry weight of sugar described inadditional U.S. note 2 to chapter 17: 

1901.20.20 Described in additional U.S. note 7 

to chapter 17 and enter pursuant to its provisions . . . . . . . . . . . . . . . . . . . . . 10% 20%

1901.20.25 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.3¢/kg+8.5% Free (MX)

See 9909.17.05, 9909.17.60(JO) 49.8¢/kg+10% 

Mixes and doughs described in additional U.S. note 1 to chapter 19:

1901.20.30 Described in additional U.S. note 3 

to this chapter and enter pursuant to its provisions . . . . . . . . . . . . . . . . . . . 10% Free (A, CA, E, IL, J, JO) 20% 

1901.20.35 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.3¢/kg+8.5% Free (MX)

See 9909.04.05, 9909.04.48(JO)

49.8¢/kg+10% 

1901.20.40 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.5% Free (A, CA, E, IL, J, MX)

2.1% (JO)

20% 

Other:

1901.20.42 Described in general note 15 of the 

tariff schedule and entered pursuant to its provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10% Free (A, CA, E, IL, J, JO, MX) 20% 

See footnotes at end of table.
B-19

Table B-23—ContinuedBakery products: Harmonized Tariff Schedule subheading; description; U.S. col 1 rate of duty as of Jan. 1, 2003; bound concession rate of dutU.S. Imports, 2002HTSsubheading Description

Column 1 rate of duty, as of Jan 1, 2003 Bound duty, 

UruguayRound

U20

General Special1

––

Other:

Dairy products described in 

additional U.S. note 1 to chapter 4:

1901.20.45 Described in additional U.S. note 

10 to chapter 4 and enter pursuant to its provisions . . . . . . . . . . . . . . . . . 10% Free (A, CA, E, IL, J, JO) 20% 

1901.20.50 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.3¢/kg+8.5% Free (MX)

See 9909.04.05, 9909.04.48(JO)

49.8¢/kg+10% 

Other:

Articles containing over 65 percent by dry weight of sugar described in additional U.S. note 2 to chapter 17: 

1901.20.55 Described in additional U.S. note 

7 to chapter 17 and enter pursuant to its provisions . . . 10% 20%

1901.20.60 Other . . . . . . . . . . . . . . . . . . . . . . . . . 42.3¢/kg+8.5% Free (MX)

See 9909.17.05, 9909.17.60(JO) 49.8¢/kg+10% 

Mixes and doughs described in 

additional U.S. note 1 to chapter 19:

1901.20.65 Described in additional U.S. note 

3 to this chapter and enter pursuant to it provisions . . . . 10% Free (A, CA, E, IL, J, JO) 20% 

1901.20.70 Other1 . . . . . . . . . . . . . . . . . . . . . . . . . 42.3¢/kg+8.5% Free (MX)

See 9909.04.05, 9909.04.48(JO) 49.8¢/kg+10% 

1901.20.80

Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.5%

Free (A, CA, E, IL, J, MX)2.1% (JO) 20% 

Bread, pastry, cakes, biscuits and other bakers’ wares,whether or not containing cocoa; communion wafers, emptycapsules of a kind suitable for pharmaceutical use, sealingwafers, rice paper and similar products: 

1905.10.00 Crispbread . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Free 30% 1905.20.00 Gingerbread and the like . . . . . . . . . . . . . . . . . . . . . . . . Free 30% 1905.31.00 Sweet biscuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Free 30% 

Frozen:

1905.31.0021 Containing peanuts or peanut

products ..........................

1905.31.0029 Other ...............................See footnotes at end of table.
Table B-23—Continued

Bakery products: Harmonized Tariff Schedule subheading; description; U.S. col 1 rate of duty as of Jan. 1, 2003; bound concession rate of dutU.S. Imports, 2002HTSsubheading Description

Column 1 rate of duty, as of Jan 1, 2003 Bound duty, 

UruguayRound

U20

General Special1

––

B-20

Other:

1905.31.0041 Containing peanuts or peanut

products ..........................

1905.31.0049 Other ...............................1905.32.00 Waffles and wafers frozen . . . . . . . . . . . . . . . . . . . . . . Free 30% 

Frozen:

1905.32.0021 Containing peanuts or peanut

products ..........................

1905.32.0029 Other ...............................

Other:

1905.32.0041 Containing peanuts or peanut

products ..........................

1905.32.0049 Other ...............................1905.40.00 Rusks, toasted bread and similar toasted 

products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Free 30% 

Other:

1905.90.10 Bread, pastry, cakes, biscuits and similar 

baked products, and puddings, whether or 

not containing chocolate, fruit, nuts or confectionery . . . . . . . . . . . . . . . . . . . . . . . . . Free 30% 

Frozen:

1905.90.1041 Pastries, cakes and similar sweet baked

products; puddings ..................

1905.90.1049 Other ...............................

Other:

1905.90.1050 Pastries, cakes and similar sweet baked

products; puddings ..................

1905.90.1070 Bread ...............................1905.90.1090 Other ...............................

1 Programs under which special tariff treatment may be provided, and the corresponding symbols for such programs as they are indicated in the “Speci

Generalized System of Preferences (A) or (A+); North America free Trade Agreement (NAFTA), goods of Canada (CA); NAFTA, goods of Mexico (MX); C

Recovery Act (E); United States-Israel Free Trade Agreement (IL); Andean Trade Preference Act (J); and United States-Jordan Free Trade Area Impleme