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The International Business Magazine for Grain, Flour and Feed

December 2013

Kansas State University
unveils new feed mill

Interview with new

FEFAC president
Focus on Sweden
IAOM MEA review



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The wait is over

Twenty years after its conception, the O.H. Kruse Feed Technology
Innovation Center opens its doors at Kansas State University.


European feed industry challenges

New FEFAC president says industry must deal with feeding a growing
population as well as wider political and environmental issues.


IPPE plans second combined show


Event scheduled for Jan. 28-30 at the Georgia World Congress Center
in Atlanta.


Feed operations
Many factors must be considered when deciding which type of batch
mixer to use in the commercial and integrated feed industries.


Flour output rising in developing nations

IGC data show significant increases in Former Soviet Union countries.


Investing in oats
Scandinavian company with deep roots in the Baltic food industry
pours money into a growing food trend.


Oilseed & Grain Trade Summit

China making logistical investments in South America in hopes of
bringing down soybean prices in the long term.


IAOM MEA review

Meeting of flour millers in Tunisia attracts 600 attendees.


Grain operations
Accurate factors are necessary because volume measurements will not
give exact measure of grain.


Technical profile
Communication is crucial between flour mill and industrial customers.



World Grain News
Grain Market Review:
Coarse grains
Country Focus: Sweden
Supplier News
Advertiser Index/
Fax Back Form

ON THE COVER: Cover photo by Arvin Donley.

Copyright 2013. Reproduction of the whole or any part

of the contents without written permission is prohibited.
All information is published in good faith. While care is taken
to prevent inaccuracies, the publishers accept no liability for any
errors or omissions or for the consequences of any action taken
on the basis of information published. / World Grain / December 2013

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For more information, see Page 102.

from the editor-in-chief

Dynamic global
milling in new data

efore commenting on how much there

is to learn from the latest data of the
International Grains Council (IGC) on
flour production around the world, it is appropriate to thank the Council for assembling
this information. Even though gathering statistics on milling may appear to be a basic
responsibility of the Council, it is increasingly apparent that such a task is difficult.
When one sees Italy, Australia and China as
three instances of nations that do not provide
the IGC with current wheat flour output information, in the face of efforts pressing for
cooperation, an observer may only conclude
that resistance reflects viewpoints that are
difficult, if not impossible, to fathom.
While rejecting the conclusion that a nation like China may consider output a secret, it is much easier to blame the absence
of numbers on statistical shortfalls. Providing some insight was a study done this year
by the U.S. Economic Research Service on
Afghanistan becoming a major importer of
flour. Even though milling still ranks as the
countrys largest (non-opium) agroindustry,
its capacity has been decimated by constant
war. Imports mainly come from neighboring Pakistan whose government subsidizes
wheat prices to give its millers an advantage.
Afghanistans mills are mainly small stone
or disk grinding units with daily capacity of
1 to 3 tonnes. Consumption growth, at 9%
per year, has outrun milling capacity to a degree very different from other nations.

Charles Sosland
Publisher/Managing Director Mark Cornwell
Director of Advertising Sales
Dan Flavin
Managing Editor Editor
European Editor
China Consultant

Morton I. Sosland
Arvin Donley
Meyer Sosland
Susan Reidy
Chris Lyddon
Fengcheng Wang
Ryan Alcantara

Fundamental to examining flour output is

surveying how individual nations perform
compared with other nations in the same region as well as globally. Although it is some
years since the IGC has made an estimate of
world flour production, it comes nearest by
assessing food use of wheat. The latest IGC
forecast of food use is 471 million tonnes,
accounting for 68% of global wheat disappearance at 690 million. While nearly all of
food use represents milling or grinding, the
total is impossible to convert accurately into
flour. From developed nations where modern
milling systems operate at extraction rates
near 75% to primitive single-person grinding units that make whole wheat products,
the range is so huge as to prevent a global estimate of how much flour is made. Suffice it
to rely on the Councils estimate that aggregate food use has been increasing recently
at an annual pace of hardly 1%, which lags
global population gains at slightly more than
the single digit.
Before saying growth in global demand
is disappointing, it becomes essential to differentiate between national trends. Here is
where the IGC statistics are particularly valuable. They affirm that flour output in most
developed nations is holding steady, if not
even decreasing in a few places, contrasting
with developing nations that enjoy economic
growth and expanded middle classes relating
directly to expanded demand for foods made
from wheat flour. Central and Eastern Europe

provide particularly powerful examples of

economic gains, with yearly flour output increases of 23% in both Poland and the Czech
Republic. Similar gains occurred in a few of
the former Soviet Union satellites.
Hardly anything explains spurts in flour
production better than the nations that have
been supplying flour to neighboring countries that have experienced food demand
growth. Turkey is among the major beneficiaries of this development, enjoying a 55%
gain in flour production between 2007 and
2011. Data are missing for Pakistan that
has been the prime beneficiary of population growth in war-torn Afghanistan where
domestic milling has fallen into disrepair.
In the Western Hemisphere, Argentinas
milling has gained from Brazils expanding
consumption, even as the latters milling industry has been fast growing.
North America and Western Europe have
flour totals that are relatively steady, as well
as domestic industries with venerable histories that are highly competitive in a classic unfolding of the modern milling story.
Based on the IGC data issued this year, it
is apparent that milling continues to be dynamic, even as the industrys course varies
dramatically among countries. (For more
on this topic see the feature on page 60 of
this issue.)

PubliShing STAFF
L. Joshua Sosland
President and Publishing Director
Mark Sabo
Vice-President and
Chief Financial Officer
Melanie Hepperly
Audience Development Director
Don Keating
Director of On-line
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Carrie Fluegge
Promotions Manager
Lon Davis
Director of e-business
Jon Hall
Advertising Manager
Nora Wages
Advertising Materials
Debbie Maniez
Digital Systems Analyst
Marj Potts
Circulation Manager
Judith Tinberg

WORLD GRAIN (ISSN 0745-8991) Volume 31, issue 12,

Morton I. Sosland

is published monthly by Sosland Publishing Co.,

4800 Main Street, Suite 100, Kansas City, MO 64112 U.S.
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Requests for reprints of articles should be sent to or call 1-816-756-1000.

December 2013 / World Grain /

After a decade, we replaced our Tapco

Heavy-Duty buckets with the Xtreme-Duty

ones. If the new ones perform half as
well as the originals, who knows
how long theyll last maybe
20 years or more!

Jamie Mattson
Operations Manager
Oakes, North Dakota, U.S.A.

Jon Hansen
Plant Operator


Why 10 Years is Just a Drop in the Bucket When

it Comes to the Performance of Tapco Buckets
When James Valley Grain installed Tapco buckets in their new
facility in 2001, nobody expected them to last this long. A lot
of commodities of different density
variations like wheat, corn and soybeans have run through the original
terminal, which added
extra wear on the
buckets. Through the

years, the volume of

material has gone way up, too.

calculated that the original Tapco buckets handled 169,297,881

bushels and most of those buckets were the originals.

We went from five million bushels the first year to around 30

million the last four years, Jamie Mattson, Operations
Manager, James Valley Grain, says. In fact, I just looked it up and

Extend the longevity of your loadout legs with Tapco buckets.

Find out why 75% of design engineers, contractors and bucket
elevator manufacturers* trust Tapco to keep business moving.


Anticipating even more volume, the plant recently decided to

upgrade to Tapco CC-XD (Xtreme Duty) buckets made with
32% more resin thoughout not just at critical wear points.
Ten years is a long time for buckets to endure, especially running
as hard as we do, Mattson says. Honestly, when we took them
off, it was pretty incredible how well they wore. If the new ones
perform half as well as the originals, who knows how long theyll
last maybe 20 years or more!


St. Louis, Missouri U.S.A.

For more information, see Page 102.

Tel.: +1 800 AT TAPCO (+1 800 288 2726) +1 314 739 9191 Fax: +1 314 739 5880
*Grain Journal, Country Journal Publishing Co., Inc., Decatur, Illinois, U.S.A.
The color blue, when used in connection with elevator buckets, is a U.S. registered trademark owned by Tapco Inc. 2013 Tapco Inc. All rights reserved.

calendar of events

Jan. 6-Feb. 7
GEAPS Distance Education Courses
GEAPS 520: Grain Quality Management
GEAPS 522: FGIS Grain Inspection Orientation
GEAPS 555: Advanced and Preventative
Maintenance for Grain
Facilities: Conveyance Equipment
Contact: Grain Elevator and Processing Society
Tel: 1.952.928.4640
Fax: 1.952.929.1318
Jan. 19-24
Practical Short Course on
Feeds & Pet Food Extrusion
Location: TAMU Texas A&M University; College
Station, Texas Contact: Dr. Mian N. Riaz
Tel: 1.979.845.2774
Fax: 1.979.845.2744
Jan. 20-24
Bhler Feed Milling
Electrical Maintenance Training
Location: Uzwil, Switzerland
Contact: Bhler AG, Tel: 41.71.955.19.14
Fax: 41.71.955.33.05
Jan. 27-31
Bhler Feed Milling
Mechanical Maintenance Training
Location: Uzwil, Switzerland
Contact: Bhler AG, Tel: 41.71.955.19.14
Fax: 41.71.955.33.05
Jan. 28-30
International Production
& Processing Expo
Location: Atlanta, Georgia, U.S.
Contact: Sarah Novak (AFIA)
Tel: 1.703.524.0810 Fax: 1.703.524.1921
Jan. 29-Feb 1
2014 Winter Board Meeting/
Joint with NAWG
Location: Hyatt Regency Washington, D.C., U.S.
Contact: U.S. Wheat Associates
Tel: 1.202.463.0999


Feb. 4-6
Oilseed Congress Europe/MENA 2014
Location: Hotel Arts Barcelona. Barcelona, Spain
Contact: HighQuest Partners, Ms. Sule Basa.
Tel: +90 (542) 434 4044
Feb. 10-12
USGC 11th International
Marketing Conference &
54th Annual Membership Meeting
Location: Long Beach, California Hyatt Regency
Long Beach Contact: Valerie Smiley, USGC
manager of membership administration
Tel: 1.202.789.0789
Feb. 10-March 14
GEAPS Distance Education Courses
GEAPS 521: Aeration Systems Design & Fan
Operational Management
GEAPS 530: Quality Management Systems
GEAPS 542: Electrical Safety
Contact: Grain Elevator and Processing Society
Tel: 1.952.928.4640 Fax: 1.952.929.1318
E-mail: Internet:
Feb. 23-25
GEAPS Exchange 2014
Location: CenturyLink Convention Center in
Omaha, Nebraska, U.S. Contact: Grain Elevator
and Processing Society
Tel: 1.952.928.4640 Fax: 1.952.929.1318

Feb. 27-March 1
2014 NAWG Commodity
Classic and Board Meeting
Location: San Antonio, Texas, U.S.

March 10-12
AFIA Spring Committee Meetings
Location: Caesars Palace Las Vegas, Nevada, U.S.
Contact: Sarah Novak (AFIA) Tel: 1.703.524.0810
Fax: 1.703.524.1921 E-mail:
March 12-14
AFIA Purchasing &
Ingredient Suppliers Conference
Location: Caesars Palace, Las Vegas, Nevada, U.S.
Contact: Sarah Novak (AFIA) Tel: 1.703.524.0810
Fax: 1.703.524.1921 E-mail:
Turkish Flour Industrialists Federation,
Celebration of 10th Foundation Anniversary
and International Congress and Exhibition
Location: Titanic Deluxe Belek. Antalya, Turkey
Contact: Turkish Flour Industrialists Federation (TFIF)
Tel: 90 (312) 440 0454, 440 09 23, 440 09 48
Fax: 90 (312) 440 0364 E-mail:

For a 12-month listing of 2014 industry

events, see the 2014 International Buyers Guide
or visit Send your event
details to: or fax

We want to hear from you Send comments and inquiries to

For reprints of WG articles, e-mail

Inaugural Oilseed Congress Europe

The inaugural Oilseed Congress Europe/MENA 2014 will be held Feb. 5-6 in Barcelona, Spain. This event will address key opportunities and challenges facing the oilseed
trade in Europe, the Middle East and North Africa and provide networking opportunities
for senior executives and participants operating across the supply chain.
The agenda focuses on issues that impact exporters and importers within the region,
merchandisers and traders, service providers (inspection, verification, testing and certification, logistics/transportation companies and trade financing institutions) and primary
processors and downstream consumption markets in feed, food, biodiesel and industrial
For more information, visit

December 2013 / World Grain /

For more information, see Page 102.


News review

Brought to you by

ADMs GrainCorp acquisition rejected; CEO resigns

CANBERRA, AUSTRALIA Australian Federal Treasurer Joe Hockey announced on Nov. 28 that he is prohibiting Archer Daniels Midland
Co.s (ADM) acquisition of GrainCorp Limited, and days later GrainCorp Chief Executive Officer Alison Watkins announced she was resigning her post. Hockey said he rejected the acquisition because it was
contrary to the national interest.
ADM and GrainCorp had agreed to a deal that included ADM paying A$12.20 a share for GrainCorp with a A$1.00 per share dividend
out of current and retained earnings before the deal close. Within
a few days of the rejection, GrainCorps share price had dropped
more than 25%. On Dec. 2, shares were trading at $8.34, down from
A$11.33 per share prior to Hockeys announcement.
The announcements came shortly after ADM said it would sweeten
its deal for the company, committing to invest hundreds of millions
of dollars in Australian infrastructure with a specific emphasis on rail
projects along with guaranteed grain infrastructure access and price
caps on grain handling charges at silos and ports. The commitments
would have gone into effect upon the closing of the acquisition.
In reaction to Hockeys announcement, GrainCorps Chairman Don
Taylor said it was extremely disappointing that the transaction would
not be proceeding as planned. He said the decision will have enduring
implications felt by the companys shareholders and the entire industry.
Australian agriculture has been prevented from realizing the potential benefits from the significant capital ADM would have invested
in the long-term future of the industry, Taylor said. The board remains confident in GrainCorps ability to continue to implement our
long term strategy, underpinned by our program of strategic growth
initiatives and strong market fundamentals. But the company will
be implementing that strategy with a new leader. Watkins advised the
board on Dec. 2 of her intention to resign as CEO to take a position
as group managing director of Coca-Cola Amatil Limited.
I had planned to leave the company at the time control passed over
to ADM. Given last weeks unexpected developments, I feel it is in the

best interests of GrainCorp, our people and customers that I move on now and allow the board
to find new leadership to take the business forward into its new phase. An external and internal
search for a replacement has commenced. Taylor
will assume a temporary role as executive chairman immediately and will be acting CEO from
mid-January 2014, filling these roles until the appointment of a new CEO.
In explaining his rejection Hockey noted the
fundamental and historic importance of Australias grain industry.
The Australian grains industry is an important export industry that
has been transitioning through a significant deregulation process
since the abolition of the wheat exports single desk in 2008. Since
then, deregulation has brought benefits through a significant expansion in the number of bulk wheat exporters, an expansion in our overseas customer base and the construction of new infrastructure.
Owning over 280 up country storage sites and seven of the 10
grain port terminals in New South Wales, Queensland and Victoria,
GrainCorp continues to account for a significant share of eastern
Australian storage, distribution and marketing of grains. Approximately 85% of eastern Australias bulk grain exports are handled
through GrainCorps ports network.
Hockey noted that ADM has shown a commitment to be involved
in Australias market for the long term. He remarked that in rejecting
the full acquisition he could have capped ADMs ownership stake at
its current level. In fact, to encourage ADM to demonstrate its commitment to the Australian grains industry through its continued investment in GrainCorp, I am inclined, based on current circumstances,
to approve any proposals from ADM to increase its shareholding in
GrainCorp up to an interest of 24.9 percent. This would also provide a
platform for ADM to build stakeholder support for potentially greater
participation in the Australian industry as it develops.

Weather woes hurt GrainCorps 2013 results

SYDNEY, AUSTRALIA GrainCorp reported on Nov. 14 statutory net profit after tax of A$141 million for 2013, down from the
A$205 million reported in 2012. The company reported strong
grain volumes with above average grain exports and carry-in of
4.3 million tonnes.

The eastern Australian crop was approximately 17% smaller

than the previous year. While grain volumes were still strong,
the smaller crop translated into lower receivals of 10.4 million tonnes (FY12: 12.2 million tonnes); lower grain exports
of 8.3 million tonnes (FY12: 10.6 million tonnes); and a 17%
reduction in grain throughput to 23.8 million tonnes (FY12:
28.5 million tonnes).
The company said the Storage & Logistics result was historically strong, but it was lower than last year, reflecting
a 28% decrease in residual grain in the network at the start
of the year than when compared with 12 months prior and

a return to a more normal crop size.

Our joint venture, Allied Mills, continues to grow its
business, completing its new Tennyson mill expansion in
Queensland as foreshadowed and improving earnings from its
specialty bakery products range, said GrainCorp Chief Executive Officer and Managing Director Alison Watkins. (For
more information on the Allied Mills new Tennyson mill, see
the January 2014 issue of World Grain).
She said the current 2013-14 winter harvest was well under way, although conditions had been challenging for many
growers. Drought conditions in Queensland and Northern
NSW have negatively impacted yields in those regions, while
recent frosts have affected many areas further south, Watkins
said. Crops further south still look larger than average, and
we are hopeful of favorable weather conditions as headers are
in the paddocks over the next few weeks.
December 2013 / World Grain /


Thorough analysis: the basis

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For more information, see Page 102.

A member of the Stern-Wywiol Gruppe

Viterra investing in grain handling network
Nov. 5 that it intends to invest over C$34 million into its Alberta,
Canada elevator network through two upcoming projects.
The first is the construction of a new high throughput grain terminal
near Grimshaw, Alberta. The concrete facility will be developed with
a 104-railcar loading capability and approximately 30,000 tonnes of
grain storage. The construction of this facility, which began this fall,
will be the second recent new grain terminal built by Viterra in northwest Alberta. In 2010, Viterra opened its state-of-the art elevator in
Sexsmith, Alberta.
The second project involves the expansion of Viterras grain termi-

nal in Grassy Lake, Alberta. Storage capacity will increase by 14,000

tonnes to 36,500 tonnes.
Our reinvestment in these targeted areas will accommodate increased farmer deliveries and facilitate higher and more efficient
throughput, said Kyle Jeworski, Viterras president and chief executive officer for North America.
This is the latest in a series of infrastructure improvements by Viterra. In May, the company announced that it is investing more than C$20
million to upgrade four of its Saskatchewan grain terminals at White
Star, Humboldt, Waldron and Ituna. It has also recently completed
similar expansions at Gull Lake, Saskatoon and Fairlight, Saskatoon.

CWB to purchase Mission Terminal

Nov. 26 that it has reached an agreement to purchase all of the issued and outstanding shares of Mission Terminal, Les lvateurs
des Trois-Rivires and Services Maritimes Laviolette from Upper
Lakes Group Inc.
Winnipeg, Manitoba, Canada-based Mission Terminal Inc. sources and markets wheat, durum, barley, canola, rye, flax, peas and oats,
and industrial products, for customers around the globe. It operates
handling facilities both in Western Canada and at Thunder Bay. Mission Terminal Thunder Bay, located at the mouth of the Mission

River, has a licensed storage capacity of 136,500 tonnes and handles

approximately 1.5 million tonnes annually.
Les lvateurs des Trois-Rivires (ETR) is located in TroisRivires, Quebec, Canada, and is a receiving, storage and loading
facility with a storage capacity of 110,000 tonnes of grain, 78,000
tonnes of alumina and 20,000 tonnes of coke. It can receive grain by
ocean ship, laker, rail or truck and is one of the few facilities able to
unload vessels of up to Panamax size.
Services Maritimes Laviolette (SML) is also located in TroisRivires, Quebec and offers stevedoring and related services.

For more information, see Page 102.


December 2013 / World Grain /

ADM to build third feed plant in China
Daniels Midland Company (ADM) announced on Nov. 4 that it is building a new
feed-premix plant in the city of Nanjing,
in eastern China, bringing to three the total
number of facilities in the companys Chinese premix network.
The Nanjing plant, which is expected to
be complete in the first half of 2015, will
manufacture nutritional feed premixes that
can be added to animal rations to promote
good health and optimal growth. Such
premix formulas typically contain various
vitamins and minerals, amino acids such
as lysine and threonine and other ingredients. ADM will manufacture an estimated
30,000 tonnes of premix products per year
at the Nanjing facility, which will also provide 80,000 tonnes of additional capacity
for the production of complete feeds and
concentrates. The plant is expected to employ about 150 people.
ADM is committed to helping China
meet its goals for food security and safety,
and our plant in Nanjing is part of this commitment, said Brent Fenton, president,
ADM Animal Nutrition. As the countrys
population continues growing and personal
incomes rise further, the nations demand
for meat is expected to increase. In this environment, our decades of experience producing animal feeds and feed ingredients
coupled with our insistence on consistent,
high-quality products will serve Chinas
livestock producers well.
The Nanjing facility complements
ADMs existing premix plants, which are
located in Tianjin and Dalian in northern
China. The company also has a tolling relationship with a third-party feed distribution facility in Chengdu, in the countrys
southwest. Fenton said these facilities are
the first in what ADM envisions as a national premix network.
ADMs feed premix plants are part of
a broader effort to help China further its
food-security goals. The company is collaborating with China Agricultural University on a research program to develop
efficient and lower-cost feed programs
for dairy cattle using corn processing coproducts such as distillers grains and locally grown corn stover the stalks, cobs
and leaves left on farmers fields after the
harvest. Feeding cattle a mix of processed
crop residues and co-products can free up
grain for other uses and reduce the use of
imported hay and other forages.

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For more information, see Page 102. / World Grain / December 2013


Walter Klein, longtime head of Bunge Corp., dies
NEW YORK, NEW YORK, U.S. Walter C. Klein, retired president and chief executive officer of Bunge Corp., died Oct. 28 at the
age of 95.
Klein led the North American business of Bunge Group (what is
now Bunge Ltd.) for three decades, assuming the top role at the company in 1959.
During the time he led the company, Bunge diversified business
from its grain exporting roots into a soybean processor, dry corn
miller and a major producer of shortenings and oils as well as a producer and marketer of other products for bakers, food processors and
restaurants. Additionally, he was involved in the expansion of Bunge
Group into Asia.
The breadth of change effected by Klein was summarized in a
2001 interview with his son John E. Klein, who headed Bunge North
America for 18 years after his fathers retirement in 1985.
I took over a little more than 15 years ago from my father and
his great effort in creating something that wasnt there before,
Klein said. He took a trading house and really industrialized
the company.
Even as Bunge broadened its U.S. activities, the export business was an area of focus through the career of Walter C. Klein.
The U.S. mid-South was an area of growth with Bunge establishing a network of grain and oilseed elevators between St. Louis,
Missouri, U.S., and the Gulf of Mexico during Kleins tenure.

Also constructed while he was in charge of Bunge was the

companys Destrehan export elevator in the port of New Orleans,
Louisiana, U.S.
In a 1985 interview with World Grains sister publication, Milling & Baking News, Klein spoke of the importance of restoring
the United States to its leadership position in grain exports rather
than the role of residual supplier to which the United States had
been relegated.
An advocate for free trade, he also emphasized the importance of
fair trade in his pragmatic support for what would become known
as the Export Enhancement Program.
Exports have to be revived, and the only way we can revive exports is to sell at the world market price, he said.
Born in New York, Kleins parents moved to Vienna, Austria
for a period of time when he was a teenager, and he attended high
school there. Klein entered Harvard College in 1936, graduating in
three years.
He held positions with Swift & Co. in Chicago, Illinois, U.S.,
and Argentina before joining Bunge in 1947. Most of his career was
spent with Bunge in New York.
Klein was preceeded in death in 1991 by his first wife Mary Kennard Eddy Klein and by a son, Walter (Terry) Klein Jr. He is survived
by his second wife Virgilia Pancoast Klein and children, Margaret K.
Klein and John E. Klein and three grandchildren.

Complete Plants for Oat Processing

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baby flakes, oat flour, instant flakes, oats/muesli mixtures, oat bran.
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For more information, see Page 102.

December 2013 / World Grain /

A Flour World
Museum story


No. 10

Schroder: Mexican mill acquisition fits Bunges portfolio

acquisition of the wheat milling business of
Mexico City-based Grupo Altex SA de CV
should make Mexico an important part of
Bunges North American portfolio going
forward, said Soren Schroder, chief executive officer of Bunge Ltd.
In an Oct. 24 conference call with analysts
to discuss third-quarter results, Schroder discussed the impact of the purchase of Grupo
Altex, which was announced on Oct. 23. A
leading Mexican wheat miller with six mills
and annual processing capacity of approximately 17.6 million cwts, Grupo Altex fits
what we are good at, Schroder said.
As part of the acquisition, Bunge will get
an expansive product portfolio that includes
products made from many varieties of wheat,
including bread flour, prepared flours for
baked foods, tortillas and pizza, and semolina
for pasta. Additionally, Bunge will receive the
companys brands and its innovation center.
The acquisition comes a little more than
a year after Bunge secured a majority equity
stake in Harinera La Espiga SA de CV, a wheat
milling business in Mexico that produces
flours and bakery mixes under such brands as
Espiga, Esponja, Francesera, Chulita, Galletera
and Pastelera. Prior to last year, Bunge held a
31.5% interest in the company with Grupo
Neva, SA de CV and Cerrollera, SA de CV.
Added to La Espiga, (Grupo Altex) really gives us a very nice national position in
Mexico, Schroder said. It makes us a leading
wheat miller with the best assets. Its a business that has steady EBITDA margins. It is
very much linked to agribusiness. Our ability
to procure and manage risk around wheat flows
is strong. And it fits our focus on B2B customers in North America, and globally, as well.
So this is a very nice acquisition that fits

what we are good at, and yes, we would like

to pursue more of the same kind.
Schroder said Bunge expects EBIT contribution from the Grupo Altex business to
be about $35 million in fiscal 2014, perhaps
a little higher.
This is a very accretive acquisition, he
said. It is an acquisition that is also in a
space we feel very comfortable, so we consider the risks in achieving those returns to
be very modest.
Late last year, Decatur, Illinois, U.S.based Archer Daniels Midland Co. sold
back its stake in Mexico-based Gruma SAB
de CV. Asked whether ADMs experiences
served as a cautionary tale for Bunge as it
looked to expand in Mexico, Schroder said
the company has been studying Mexico
intensely for the past several years, and it
wasnt a quick decision that we reached.
We have been able to observe and look at
the Mexican flour milling industry through
the eyes of La Espiga for a number of years,
he said. We we were partners there first for
well over 10 years, and so understanding the
Mexican flour milling business, I think we
got from the inside.
Thats what gave us the confidence
to acquire the majority in that business a
couple of years ago. And based on that and
some, I think, very diligent and thorough
work on the industry itself, we reached the
conclusion that the collection of assets that
Altex represents really would be the best
way for us to expand.
It is quite a different business than Gruma, as you correctly point out, so I dont
think you can really compare them, but I
would give you confidence or comfort
that we have studied this and we think we
know what we are doing.

David Blumberg to lead Blumberg Grains West Africa division

MIAMI, FLORIDA, U.S. David Blumberg has been named chief executive for
the companys division in West Africa.
He has top managerial responsibility for
markets, hubs and operations in Ghana, Nigeria and other West Africa and
Sahel markets.
Blumberg has spent the last two years in the
region and has working relationships with the
governments and staff in Ghana and Nigeria.
He will be joined by other company executives and Blumberg Grains advisory board
of independent members overseeing strategy
and serving as the audit committee for all

companies and affiliates in Blumberg Grain.

Blumberg, a native
of Miami, Florida, U.S.,
is a graduate in business with honors from
the University of North
Carolina where he received one of the universitys highest distinctions, the Order of the
Golden Fleece.
Blumberg worked at Deloitte, in their strategy and operations consulting division, before
joining Blumberg Grain in 2012. / World Grain / December 2013

king cake
You can get it as a dry cake, with cream,
true chocolate, or in world-record size
king cake, eaten in Mexico since the
16th century at Epiphany. To celebrate
200 years of Mexican independence,
Mexico City bakers made a truly kingsize "Rosca de Reyes" weighing ten
tons and measuring 2360 feet long.
The massive cake took 16,684 pounds
of our, 56,880 eggs and 8157 pounds
of butter, and cut nicely into 254,000
pieces. But no one knows who found
the porcelain gurine that is hidden in
every "Rosca de Reyes". This will no
doubt remain a mystery, for whoever
nds it must make tamales for all the
guests on February 2, the Fiesta de la
Candelaria. With this gargantuan cake
that would be an impossible task.
The Mhlenchemie FlourWorld Museum
in Wittenburg is an expression of our
company culture and the responsibility
we feel towards the miller and his
our, as one of the most important
staple foods. The museum is a journey
through the millennia, illuminating the
development and importance of our.
It is the only one of its kind in the world.
For more information, see Page 102.


Ethanol, rail gives The Andersons a record quarter
MAUMEE, OHIO, U.S. The Andersons, Inc. announced on Nov.
6 that third quarter net income attributable to the company increased
to $17.2 million, or 91 per diluted share, on revenues of $1.2 billion.
We had a record third quarter, due to the exceptional results seen
in our Ethanol and Rail groups, Chief Executive Officer Mike Anderson said. We also had good results in the Grain Group. Our expectation for the last quarter of the year is that it will be comparable
to results seen in 2010 and 2011. The fourth quarter of 2012 results
were tempered by the drought, which we are happy to say is behind
us; we are instead in the midst of a record corn crop.
The Grain Group had operating income of $14.3 million in the
third quarter of 2013 versus $10.8 million for the same period last
year. Both space income and gross profit on sales in the third quarter
were higher than the prior year.

The companys investment in Lansing Trade Group also had

strong results. Revenues for the Grain Group were $766 million and
$677 million for the third quarter of 2013 and 2012, respectively.
Revenues increased due to an increase in the bushels sold, as the
average price per bushel decreased.
The Grain Groups operating income for the first nine months of
the year was $24.7 million on revenues of $2.5 billion. Last year, its
operating income through September was $45.5 million on revenues
of $2.1 billion. The groups 2013 results have been materially impacted by the 2012 drought.
The Ethanol Group achieved record operating income of $10.9
million in the third quarter on revenues of $213 million. This compares to an operating loss of $900,000 during the same period last
year on revenues of $210 million.

FAO: Typhoon Haiyan hurt rice crop

ROME, ITALY Hundreds of thousands of farmers in the Philippines
whose crops were destroyed by Typhoon Haiyan need urgent assistance
to sow new seeds before the end of the current planting season, the United Nations Food and Agriculture Organization said on Nov. 19.
The typhoon caused damage in the central part of the country to the
2013 main season rice crop.
It also badly disrupted planting of the current 2013-14 secondary

season, which ends in late December.

There is concern that many storage facilities may have been destroyed along with their contents.
Damage to the main season paddy crop both by Typhoon Haiyan
and by Typhoon Nari, which hit northern parts of the country in October, as well as disruption to the planting of the second season is
expected to result in lower rice production than anticipated for 2013.

For more information, see Page 102.

Lambton Conveyor Limited | Wallaceburg, ON. Canada


December 2013 / World Grain /

MGPI to build momentum through current strategy
the feud between members of MGP Ingredients, Inc.s (MGPI) founding family and other members of the companys board of directors and chief executive officer Tim Newkirk
may be over after a special committee of
MGPIs board of directors concluded its review of the companys strategic alternatives.
The committee determined that the best
approach at this time to enhance long-term
shareholder value is to continue execution
of the companys strategic plan to reposition
the business for profitable growth.
After a thorough review, it became clear
that the best path to create value for shareholders was to build momentum with MGPs
current strategy, said John Speirs, chairman
of MGPI. We will strive toward stronger
cash flows from our bulk industrial alcohol
business, while increasing the percentage of
sales derived from higher margin premium
spirits and specialty food ingredients.
Karen Seaberg, granddaughter of Cloud
L. Cray Sr., who founded MGPI in 1941,
said the decision to stay with the current
business strategy settled the main point of
contention between the disagreeing parties.
This was the crux of the entire proxy
battle, Seaberg said.
MGPI cut its May 23 annual meeting
short after two members of the board, Seaberg and Cloud Cray Jr., refused to attend
the meeting, citing a growing concern with
the lack of profitable growth, deterioration
in the corporate culture, efforts to sell cer-

tain parts of the companys business, efforts

to amend the bylaws that would limit accountability to shareholders and increase
the power of the chief executive officer
(CEO), and the level of compensation paid
to the chairman of the board of directors
and the CEO of the company.
The company then initiated a review of



Thailand suffers significant

loss due to rice subsidy
Deputy Prime Minister/Commerce Minister
Niwatthamrong Boonsongpaisan announced
in early November that Thailand has lost
Bt260 billion ($8.11 billion) from the governments rice pledging scheme over the last two
years. (For more information on Thailands
rice scheme, see page 92 of the November
2013 issue of World Grain).
He said the government has sped up releasing rice from state stockpiles so as to pay
debts to the Bank of Agriculture and Agricultural Cooperatives (BAAC), which has
granted loans for the scheme.
The BAAC should be paid Bt200 billion by
the end of the year despite declining rice prices in the global market, he said, adding that
rice would be gradually exported to China
from December 2013 until December 2014. / World Grain / December 2013

strategic alternatives that it said would allow

the company to explore options that may
accelerate the realization of value for the
benefit of its stockholders.
While alternatives are reviewed, the
company remains focused on executing on
its operational plan to realize the long-term
value of its assets, MGPI said.


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Toll Free 888-647-5475

The Closer You Look...The Better We Look!

For more information, see Page 102.


Deyu reports loss in third quarter
BEIJING, CHINA Deyu Agriculture Corp., a Shanxi, China-based
vertically integrated producer, processor, marketer and distributor of
organic and other agricultural products made from corn and grains,
announced on Nov. 15 a net loss of $15.2 million in the third quarter.
That compares to net income of $3.5 million in the third quarter of
2012. Loss per diluted share was $1.43, compared to income of 28
per diluted share a year ago. Gross profit fell 60.9% to $4 million in
the third quarter.
2013 has been a very challenging year. Our Q3 2013 financial results
showed a large decrease in net income, said Greg Chen, chief executive
officer. Chinas ongoing economic slowdown has been imposing challenges on us. In addition, unexpected extreme weather conditions and
increased corn imports have added to an already challenging situation.
Corn is mainly used as raw material for livestock feeds and processed products. The corn market experienced a boom in the past several years. However, since the beginning of 2013, its market demand
has been decreasing. In contrast, with rising labor costs and inflation in
China, the minimum farmers selling prices supported by the government due to its farming protection policies, continues to rise.
Livestock farming has been going through a very difficult time
in 2013. The demand for processed corn products has also been very
weak. The price of ethanol hit its lowest level in the past three years.

Meanwhile, with a good corn harvest in 2012, there has been an influx of low-cost corn imported into the market in China. With another
good corn harvest in sight for 2013, anticipated increases in corn imports in the coming year, and extended current economic conditions
in general, we anticipate the market demand will remain low.
The deteriorating efficiency of existing retail distribution channels curtailed our retail grain package sales amidst the increasing
competitiveness in the market. We allocated more grain resources to
bulk trading activity, yet the slowdown in consumer market growth
has had negative impacts on the grain bulk trading business.
The companys net revenue for the quarter was $68.3 million compared with $56.5 million in the same period a year ago.
Net revenue for the Corn Division was approximately $47.6 million, an increase of $12.7 million, or approximately 36.5%, as compared to $34.9 million for the third quarter of 2012, which was mainly attributable to the increase in sales volume under the strategy of
accelerating the sale of the companys corn inventory with the managements anticipation of continuous decline of corns selling price.
Net revenue from the Grain Division was $9.9 million, a decrease
of $7.5 million, or 43%, as compared to $17.4 million for the third
quarter of 2012, which was mainly due to the decline of retail sales
in supermarkets and convenience stores.

U.S. EPA proposes lower RFS target

WASHINGTON, D.C., U.S. The U.S. Environmental Protection
Agency (EPA) on Nov. 18 proposed 2014 renewable fuel standards
that for the first time would reduce the volume of ethanol refiners must
add to the fuel supply relative to targets established under the Renewable Fuel Standard in 2007 (RFS). The EPA proposed that 15 billion
to 15.52 billion gallons of ethanol be added to the fuel supply in 2014
compared with 18.15 billion gallons as targeted by current law.
The EPA in its announcement pointed to what it called an E10
blend wall as a reason for the lower target.
Nearly all gasoline sold in the United States is now E10, which
is fuel up to 10% ethanol, the EPA said. Production of renewable
fuels has been growing rapidly in recent years. At the same time,
advances in vehicle fuel economy and other economic factors have
pushed gasoline consumption far lower than what was expected
when Congress passed the RFS in 2007. As a result, we are now at
the E10 blend wall, the point at which the E10 fuel pool is saturated
with ethanol. If gasoline demand continues to decline, as currently
forecast, continuing growth in the use of ethanol will require greater
use of higher ethanol blends such as E15 and E85.
The announcement elicited both ire and praise.
Senator Debbie Stabenow, chairwoman of the U.S. Senate
Committee on Agriculture, Nutrition and Forestry, said, The socalled blend wall is a crisis manufactured by the oil industry,
which is interested in eliminating the competition so they can

continue reaping even greater windfall profits.

The proposed rule could cost thousands of good paying clean energy jobs and mean less competition at the pump. I urge the administration to take a hard look at how this could seriously set back growth
at a crucial time when tremendous progress is being made toward
commercial-scale production of advanced biofuels.
Martin Barbre, president of the National Corn Growers Association, said, This recommendation is ill-advised and should be condemned by all consumers because it is damaging to our tenuous
economy and short-sighted regarding the nations energy future. Agriculture has been a bright spot in a failing U.S. economy, but current
corn prices are below the cost of production. EPAs ruling would be
devastating for family farmers and the entire rural economy.
Barbre noted the EPA proposal would make investments in new
biofuels plants very risky, stagnate investment in infrastructure by
petroleum marketers and send the wrong signals to automakers who
want more direction on where they should be spending millions of
targeted investments on research and development.
Robb MacKie, president and chief executive officer of the American Bakers Association (ABA), said, The baking industry recognizes the EPAs modest proposal to lower the corn-based ethanol
mandate. However, ABA strongly encourages EPA to move to further
alleviate the pressure corn-based ethanol puts on grain availability
and costs.

Vietnams 2013 rice exports reach nearly $2.5 billion

HANOI, VIETNAM The Vietnam Food Association (VFA) announced in November that Vietnam exported over 5.7 million tonnes
of rice worth nearly $2.5 billion in the first 10 months of 2013.
In October, the price of exported rice dropped by around $2 per
tonne to $435.37 per tonne.
Africa is emerging as a market with great potential for Viet20

namese rice exports, according to the VFA.

VFA noted that in the first nine months of 2013, African countries
imported over 4.79 million tonnes of rice worth $2.05 billion from
Vietnam, making the continent the largest importer of Vietnamese
rice during the period. It is followed by Asia, the Middle East, U.S.
and E.U.
December 2013 / World Grain /

For more information, see Page 102.

Source: U.S. Department of Agriculture


Large crop forecasts weigh on prices

by Chris Lyddon










Coarse grains markets have come down in recent months as its

become increasingly clear that 2013-14 is going to produce a sharp
recovery in production, especially in the U.S. corn crop which is reassuming its role as the dominant production factor in the world market.
Corn prices have fallen to a three-year low, amidst huge and better than expected harvest reports, the U.S. Grains Council said in a
report at the end of October. Lower oilseed and grain prices have
prompted a bevy of overseas buying, it noted.
Corn futures prices came under further pressure following a couple of
announcements in mid-November. The U.S. Environmental Protection
Agency on Nov. 15 proposed reducing the 2014 ethanol mandate, which
may reduce corn demand. On Nov. 18, trade reports confirmed China
had rejected an import cargo of unapproved bioengineered U.S. corn.
Projected U.S. feed grain supplies for 2013-14 are raised with
higher estimated beginning stocks and increases in corn and sorghum
production with the November Crop Production report, the USDA
said in its November World Agricultural Supply and Demand Estimates report. It forecast U.S. corn production at a record 355.33
million tonnes, up from 273.83 million the year before and noted
that a reduction in area was more than offset by an increase in yield,
although yield per hectare remains below the 2009-10 record.
USDA now predicts U.S. corn exports in 2013-14 at 35.56 million tonnes, up from a projection of 31.12 million made two months
earlier and from the previous years 18.58-million-tonne figure, with
larger supplies and lower prices that have increased the competitiveness of U.S. corn as indicated by strong outstanding export sales and
rising export shipments in recent weeks.
The International Grains Council (IGC) has also been racking up
its estimates for corn production. The 2013-14 world corn production forecast has been increased by 5 million tonnes, to a record 948
million, to reflect better crop prospects in the U.S. and the E.U, it
said in its end of October report. The 10% year-on-year increase is
mainly due to a substantial 7-million-tonne rebound in the U.S., from
the previous seasons very poor crop.
Improved output is also expected in the E.U., Ukraine and China,
while production in Argentina and Brazil is likely to decline from last
years record levels, the IGC said. The global corn area is projected
slightly lower than in 2012-13, but the average yield is forecast at 5.4
tonnes per hectare, up 11% year on year, it said.
The U.S. harvest was 59% complete by Oct. 27, the IGC said.
The pace is significantly behind last years 91%, but only slightly
short of the five-year average of 62%, mainly due to late planting,
although there have also been some rain-related delays in the central
and eastern Corn Belt, it said.
After the IGC report was written, U.S. farmers made quick progress with the harvest and by Nov. 17 the crop was 99% harvested in
the 15 key producing states covered by the USDAs Crop Progress
report. Given better yield prospects, the crop forecast has been lifted
by 2 million tonnes this month, to 352 million, which would be a
29% year-on-year increase, IGC continued.
The IGC described a less positive picture for South American pro-

U.S. $ per tonne

Coarse grains

Maize monthly price


U.S. No. 2 Yellow, FOB, Gulf of Mexico

Source: World Bank

duction. In Argentina, heavy rains improved soil moisture levels in

La Pampa, southern Buenos Aires and parts of Cordoba, whereas
drier conditions returned to Entre Rios, Santa Fe and northern Buenos Aires, it said. Overall, the sowing campaign has been delayed
by previous dry weather, with 25% completed by Oct. 24. The planting delays, combined with weak prices and crop rotation practices,
are expected to reduce the area by one-quarter, to about 4.5 million
hectares. Assuming average yields, production is projected at 26 million tonnes, down 13% year on year.
Showery weather in Brazil kept the soil moisture at high levels as
planting of the main first crop progressed across central and southern
regions, it said. The overall area is projected slightly lower than
last season, at 15.5 million hectares (15.8 million the previous year)
and, with yields forecast below the 2012-13 record, production is
placed at 72 million tonnes, down 11% year on year.
It will change the situation in the world market. The U.S. is
forecast to reclaim its position as the worlds leading exporter, with
marketing year (September-August) shipments placed at 31 million
tonnes, compared to 18.7 million the previous year, the IGC said.
U.S. export prices for early-2014 shipment have become increasingly competitive and, with a record crop currently being collected,
the forecast is up by 1 million tonnes from last month.
In contrast, the IGCs forecast for Brazils 2013-14 exports (MarchFebruary) is down by 2.3 million tonnes on the year at 22 million.
Recent demand has been strong, but competition from northern hemisphere suppliers will intensify in the coming months, it said.
The IGC increased its forecast for the world barley crop by 600,000
tonnes to 142.9 million, the highest level in four years, reflecting improved prospects in the E.U. and Canada, it said. The 10% yearon-year rise is due to higher production in the E.U., the CIS, Canada,
Turkey and Australia, partly offset by a smaller crop in Argentina.
For sorghum it forecast world production at 61.4 million tonnes
in 2013-14, a 10% year-on-year increase due to larger crops in the
major exporting nations. A 23% rise to 10.1 million tonnes is set to
take the U.S. sorghum crop to the highest level in five years.
Chris Lyddon is World Grains European editor.
He may be contacted at:
We want to hear from you Send comments and inquiries to worldgrain@sosland.
com. For reprints of WG articles, e-mail

December 2013 / World Grain /

For more information, see Page 102.


Focus on

A producer of wheat and barley, the

country has an efficient agricultural sector
despite its northern location
by Chris Lyddon


Sweden is the third largest country in the European Union,

with only France and Spain covering a greater area, but it has a
relatively small population. Even though part of its area lies north
of the Arctic Circle much of its area has a temperate climate and
the country has an efcient agricultural sector.
In spite of its northerly location, Sweden enjoys a favorable
climate, the Swedish Board of Agriculture says in its guide to
the sector. However, agriculture faces very different conditions
in the north compared to the south. The growing season is almost
100 days longer in the southern province of Skne compared to
Norrland in the north.
Structural change in agriculture has in the last 50 years resultNORWAY ed in a sharp decline in the number of farms,
and at the same time the farms have grown
larger, the Swedish Board of Agriculture said.
Farmers have made large investments in machinery and become more and more specialized in areas like cereals, dairy or the rearing
of pigs and bovine animals, it said.
Most farms are family businesses in
which the family itself does most of the
work and combines farming with employESTONIA
ment in other activities. One-third of all
enterprises are so-called combination enterprises, which means that they combine
income from farming with income from related activities. This includes, for instance, forestry
or contracting. It is also increasingly common for
farming to be combined with tourism.
Wheat and barley are among the most important products of Swedens farms. The European grain trade organization COCERAL put Swedens total soft wheat production in
2013 at 1.928 million tonnes from 326,000 hectares. The previous
years crop was 2.312 million tonnes from 369,000 hectares.
The countrys barley crop is projected at 1.814 million tonnes,

Key Facts
Capital: Stockholm
Population: 9,119,423 (July 2013 est.)
Religions: Lutheran 87%, other (includes Roman Catholic,
Orthodox, Baptist, Muslim, Jewish, and Buddhist) 13%.
Location: Northern Europe, bordering the Baltic Sea, Gulf
of Bothnia, Kattegat, and Skagerrak, between Finland and
Government: Constitutional monarchy. Chief of state: King
Carl XVI Gustaf (since Sept. 19, 1973); head of government:
Prime Minister Fredrik Reinfeldt (since Oct. 5, 2006).
Economy: Aided by peace and neutrality for the whole of
the 20th century, Sweden has achieved an enviable standard
of living under a mixed system of high-tech capitalism and
extensive welfare benefits. It has a modern distribution
system, excellent internal and external communications, and
a highly skilled labor force. In September 2003, Swedish
voters turned down entry into the euro system concerned
about the impact on the economy and sovereignty. Timber,
hydropower and iron ore constitute the resource base of an
economy heavily oriented toward foreign trade. Privately
owned firms account for the vast majority of industrial
output, of which the engineering sector accounts for about
50% of output and exports. Agriculture accounts for little
more than 1% of GDP and of employment. Until 2008,
Sweden was in the midst of a sustained economic upswing,
boosted by increased domestic demand and strong exports.
This and robust finances offered the center-right government
considerable scope to implement its reform program aimed
at increasing employment, reducing welfare dependence,
and streamlining the states role in the economy. Despite
strong finances and underlying fundamentals, the Swedish
economy slid into recession in the third quarter of 2008
and the contraction continued in 2009 as deteriorating
global conditions reduced export demand and consumption.
Strong exports of commodities and a return to profitability
by Swedens banking sector drove the strong rebound
in 2010, which continued in 2011, but growth slipped to
1.2% in 2012. The government proposed stimulus measures
in 2012 to curb the effects of a global economic slowdown
and boost employment and growth.
GDP per capita: $41,900 (2012 est.); inflation: 0.9%
(2012 est.); unemployment: 8% (2012 est.).
Currency: Swedish kronor (SEK): 6.611 kronors equal 1
U.S. dollar (Nov. 19, 2013).
Exports: $178.5 billion (2012 est.): machinery 35%, motor
vehicles, paper products, pulp and wood, iron and steel
products, chemicals.
Imports: $163.6 billion (2012 est.): machinery, petroleum
and petroleum products, chemicals, motor vehicles, iron and
steel; foodstuffs, clothing.
Major crops/agricultural products: Barley, wheat, sugar
beets; meat, milk.
Agriculture: 1.8% of GDP and 1.1% of the labor force.
Internet: Code: .se; 5.978 million (2010) hosts and 8.398
million (2009) users.
Source: CIA World Factbook

December 2013 / World Grain /

For more information, see Page 102.


sweden total wheat, barley, and oat production

(in million tonnes)








* Estimated
** Forecast
Source: International Grains Council

from 392,000 hectares, compared with

1.643 million from 361,000 hectares the
year before. Of the total, 1.734 million
tonnes from 379,000 hectares is spring
barley (previous year was 1.643 million from 361,000 hectares). Sweden
also produced 147,000 tonnes of rye, up
from 140,000 tonnes the year before, on
an area of 25,000 hectares. The oat crop
was 798,000 tonnes from 200,000 hectares compared with 744,000 tonnes on
195,000 hectares the year before.
The grains crop also included 58,000
tonnes of sorghum grown on 17,000
hectares (53,000 tonnes on 18,000 hectares last year) and 123,000 tonnes of
triticale from 23,000 hectares (141,000
from 24,000 hectares last year).
The grain trade body put Swedens
rapeseed production at 310,000 tonnes
from 123,000 hectares in 2013, down
from 318,000 tonnes from 107,000 hectares the year before. The country also
produced 5,000 tonnes of sunflower
seeds from 4,000 hectares, up from 4,000
tonnes from 3,000 hectares the prior year.
Milling industry
According to Swedens milling trade
association, the Swedish flour milling
industry consists of around 10 milling
plants, with a combined annual turnover
of around SEK 1.5 billion.
The industry is efficient, and staffing

levels are relatively low, it said. The

financial margins are small, but the
quantity is nevertheless significant. If
a turnover of around SEK 1 million per
employee is normal, the corresponding
figure within the flour milling industry
is roughly 10 times that amount.
Winter wheat is the most common
grain in Sweden, followed by barley,
oats and rye.
A typical Swedish harvest is around
5 to 5.5 million tonnes of grain, of which
around 600,000 tonnes is sent for milling at flour mills for human consumption, it said. The remainder is mostly
used as animal feed. Like most European nations, Sweden is self-sufficient
in terms of growing and milling grain,
and normally has surplus production of
1 million tonnes per year.
The flour milling industry is often
described as being very local, since the
milling always takes place locally as it
is much easier and cheaper to transport
grain than flour. These days, the price of
grain is controlled by the world market,
according to supply and demand. For
example, the price rose in Sweden in
2010 as a result of the drought in Russia
that led to much of the crop failing.
According to the European Flour
Millers, the Swedish industry is highly
concentrated, with two of the mills
producing more than 100,000 tonnes,

while five additional mills produce over

25,000 tonnes of total flour production.
It puts capacity usage at 70%.
Varying yields and gM
The Swedish Board of Agriculture
points out that crop yields vary sharply
between regions.
Yields are the largest in the plain
districts in the south and the northern
fields yield the least per hectare, its
guide to the countrys agriculture said.
Different climate conditions also explain crop distribution. In the north,
crop production mostly comprises forage and coarse grains. Bread grain is
mostly grown in the plain districts of
south and central Sweden.
Oilseed production, mostly rapeseed
and colza, is also located in the southern
and central areas. Potatoes are grown in
all of Sweden, whereas sugar beets are
only grown in the southernmost parts.
Sweden is identified as a supporter
of the introduction of biotech crops. A
USDA attach report on GMOs in the
E.U., published in July, points out that
the country has consistently voted for
GM approvals.
BASFs Amflora potato, a genetically engineered variety approved for cultivation in the E.U. since March 2010,
was grown on 150 hectares in Sweden
in 2010.

December 2013 / World Grain /


According to the ethanol producer SEKAB, E85 fuel is
available at more than 1,500 locations in Sweden.
Swedens distribution system for E85 is unique in Europe.
No other country has carried out such large and consistent efforts to make biofuels available to everyone, it said.
SEKAB produces ED95, an ethanol-based fuel for adapted
diesel engines, consisting of 95% pure ethanol with the addition of ignition improver, lubricant and corrosion protection.
ImportancE of lantmnnEn
The farmer-owned business Lantmnnen plays an important role in the Swedish grains sector.
Lantmnnen is one of the largest agriculture, machinery,
energy and food groups in the Nordic region, its latest interim report said. Examples of our brands are AXA, Kungsrnen, GoGreen, Hatting, Schulstad and Gooh. Owned by 33,500
Swedish farmers, we have approximately 8,600 employees, a
presence in 22 countries and revenues of approximately SEK
33 billion. Our company is founded on knowledge and values
built up through generations of owners. With research, development and operations throughout the chain, we are able to
take responsibility from field to fork.
Lantmnnens subsidiaries include milling group Cerealia
and the bakery company Unibake.
common agrIcultural polIcy
As Sweden is a member of the European Union, agricultural policy in Sweden is managed as part of the E.U.s
Common Agricultural Policy. For the Federation of Swedish Farmers, its a priority to make sure that the CAP is
managed fairly.
It is essential to have a level playing field if the green sector is to achieve this vision, the Federation of Swedish Farmers said on the CAP and the Swedish farm sector. One of the
challenges for Swedish farmers is to obtain payment for the
added value that is created in Swedish production by the high
requirements on quality in production, in terms of animal welfare, environmental protection and food safety.
It also notes consolidation in Swedish agriculture. The
number of farm businesses has decreased sharply, it said.
Compared with the 1970s, the number has more than halved.
Farm size in terms of area has increased strongly over the
same period.
It put the total arable area in Sweden at 2.7 million hectares,
a figure which ignores farms under two hectares, and the total
number of grain producing farms at 32,700. The average farm
size is 37 hectares of arable land.
Chris Lyddon is World Grains European editor. He may be contacted at:
We want to hear from you Send comments and inquiries to worldgrain@ For reprints of WG articles, e-mail
For more information, see Page 102. / World Grain / December 2013


For more information, see Page 102.


The wait

is over

wenty years after the plan to build a new feed mill on the
Kansas State University (KSU) campus was conceived,
the vision nally became reality on Oct. 11 when the
O.H. Kruse Feed Technology Innovation Center was dedicated
at KSUs Grain Science Complex in Manhattan, Kansas, U.S.
It was well worth the wait, according to project manager
and KSU Feed Science Professor Emeritus Fred Fairchild.
Theres not another mill like this on a university campus in
the world that I know of, Fairchild said. It represents a fullsize mill, with a small milling capacity, but a full-size facility
that also includes a feed safety research center inside it.
About 400 people attended the dedication, including nearly
20 members of the Kruse family, whose lead donation of $2
million helped launch fundraising for the $16 million facility,
which will be utilized by both the feed science and animal
sciences programs.
A ribbon-cutting ceremony was held during the dedication of the O.H.
Kruse Feed Technology Innovation Center on Oct. 11 at Kansas State
Universitys Grain Science Complex. Photos by Arvin Donley.

by Arvin Donley

Twenty years after its conception,

the O.H. Kruse Feed Technology
Innovation Center opens its doors at
Kansas State University
I want to express my appreciation for the Kruse family
which provided the initial generous gift, KSU President Kirk
Schulz said at the ceremony. Any time you do this kind of
project you need somebody to step up on faith and provide
a little bit of support and encouragement and vision to make
something happen. Without that initial gift, none of the rest of
this would have taken place.
The facility serves as the new home of the feed science
December 2013 / World Grain /

For more information, see Page 102.

FEATURE: The waiT is over

The O.H. Kruse Feed Technology Innovation Center, right, is located next to the Hal Ross Flour Mill, left, at KSUs Grain Science Complex.

and management program, which has

provided more than 700 graduates to
the U.S. feed manufacturing industry
during the 60 years since the industry
helped establish the program at KSU. In
addition, several thousand domestic and
international feed industry professionals
have participated in educational short
courses and seminars provided through
the International Grains Program.
Fairchild said the feed mill has been on
KSUs Department of Grain Science and
Industry wish list for two decades, but
the project could never get off the ground
because of a lack of public funding and
the inability to find a lead private donor.
He said the project might still be on
hold if not for the federal government in
2008 choosing the KSU campus as the
site for the new National Bio and AgroDefense Facility (NBAF), to be built by
the Department of Homeland Security.
The old Animal Sciences feed mill was
on the site where the NBAF is being
built. To make room for the NBAF, the
Animal Sciences and Industry department feed mill, which like the Grain
Science and Industry department feed
mill in Shellenberger Hall, was well beyond its useful life.
So with both programs needing a new
feed mill, the state of Kansas stepped in
with $5.2 million, which provided a ma32

jor boost. The rest of the nearly $13 million in funding was accounted for by the
Kruse family, other private donors, corporate donors, the Kansas Bioscience
Authority, Kansas State University, and
the Kansas Agricultural Experiment
Station. An additional $3 million worth
of equipment was donated and discounted by industry partners.
Ron Kruse, son of O.H. Kruse, who
founded O.H. Kruse Grain & Milling in
1935 in California, joked about having to
wait six years after making the lead donation to see the project come to fruition.
I was wondering if it was really going
to happen. I never lost faith; I was just
hoping it was going to happen in my lifetime, Ron Kruse said, drawing laughter
from the audience. But it did and we are
awfully happy to say we are proud of it.
Ron Kruse graduated from KSU with
a feed technology degree in 1962 and
is owner and CEO of Western Milling
LLC, Goshen California, U.S.
In the early 1950s, O.H. Kruse
was asked by the American Feed
Manufacturing Association to donate
money toward the establishment of a
feed technology program and facility at
Kansas State. As a high school student,
Ron Kruse visited Kansas State with his
father in the mid-1950s to learn more
about the feed technology program his

father had helped fund. He said the feed

mill in Shellenberger Hall at that time
was new and exciting.
That feed mill in those days, to me,
was a Taj Mahal, Ron Kruse said.
Thats exactly how current students
feel about the new O.H. Kruse Feed
Technology Innovation Center. Cole
Rickabaugh, an undergraduate student
in KSUs feed science and management
program, told the audience at the dedication ceremony that the new facility is
a dream come true for students.
The center is above and beyond
what we could have asked for, he said.
Well get to come in here and see a
regular process of feed manufacturing,
see how the different equipment works,
and most importantly do research trials,
especially with Salmonella, E. coli, and
different things that the industry is drastically needing.
feed safety research center
The facility, which stands 142 feet tall
twice as tall as the Hal Ross Flour
Mill located next to it includes a
modern, automated 5-tph production
and teaching feed mill and a biosafety-level 2 teaching and research mill,
referred to as the Cargill Feed Safety
Research Center.
The feed safety research center is de-

December 2013 / World Grain /

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For more information, see Page 102.

FEATURE: The waiT is over

o.h. Kruse feed technology

innovation Center Corporate Donors
Here is a list of companies who made financial donations,
donated equipment or sold equipment to KSU at a reduced cost.
ASI Industrial
BS&B Pressure
Safety Management
Belstra Milling Company
Bliss Industries
CMC Industrial Electronics
California Pellet Mill (CPM)
Cardinal Scale Mfg.
ConAgra Foods Foundation
Countryside Feed
EBM Manufacturing
Farmway Coop
Feed Energy
Foss North America
Goldn Plump Farms
Hayes and Stolz Industrial Mfg.
Hutchinson/Mayrath-A Division
of Global Industries
InterStates Control Systems
JEM International/Express
Scale Parts
KC Supply
Key Feeds
Kice Industries
Land OLakes Foundation

Land OLakes Purina

Law-Marot Milro
Lortscher Agri Service
Maljohn Company
Maxi Lift/Southwest
Micro Tracers
Novus International
Omega Ten
OPI Systems
Pepper Maintenance Systems
Phibro Animal Health
Piping Contractors of Kansas
Power Flame Inc.
RCI Safety
RMS Roller Grinder
Salina Vortex
Scott Equipment
Screw Conveyor
Seedburo Equipment
Sentry Equipment
Southern States Cooperative
Superior Boiler Works
The Lakeland Companies
Union Special
Venture Measurement
Vibco Vibrators
Wenger Manufacturing
Younglove Construction

signed so that scientists will be able to not only safely work

with low-virulence pathogens like salmonella in feeds, but
also use the facility for other research, teaching and outreach
activities. It features a 1-tph CPM pelleting system equipped
with a Wenger High Intensity Pre-conditioner, Loss-in-Weight
feeder system and a Bliss counterflow pellet cooler.
Representing Cargill at the dedication was Rob Sheffer,
Group Director for Animal Nutrition, who said the facility
will ensure that valuable research for the industry in feed and
food safety is available.
Feed and food ingredients are critical parts of the food
safety system because global food systems are complex and
spread across a vast supply chain from production to consumption, he said. It is so important to take a broad, com34

prehensive science-based approach to assure safety and integrity for feed and food.
Besides food/feed safety, the mill can also conduct research
in critical areas such as energy efficiency, feed quality and nutritional performance. The new mill is designed to accommodate nearly any type of processing research and data acquisition
that is needed by an industrial client or university scientist,
said Dirk Maier, department head of grain science and industry.
state-of-the-art equipment
In building the feed mill, the focus was placed on flexibility
to accommodate new equipment and prototypes as they are
being developed for current and future students.
The mill houses processing equipment that will allow indepth teaching of operational principles. For example, the
facility has a full-sized Bliss Industries hammermill and a
RMS three-high roller mill for grinding research, teaching
and production.
The main mill tower features two different batch mixers: a
1-tonne Hayes & Stolz Twin Rotor and a 1,000-pound Scott
Twin Shaft paddle mixer that can be used for mixing studies
and to provide specialty feeds on demand.
In addition to processing operations, the mill will eventually contain several corrugated bins for ingredient storage and
for conducting large-scale grain storage and quality preservation research. All hopper-bottom steel bins were donated
by SCAFCO of Spokane, Washington, U.S. Fairchild said
in addition to the 20,000-bushel-capacity bin that has been
installed next to the facility, a second 20,000-bushel bin and
eight smaller bins will eventually be added by SCAFCO.
Sufficient space has been designed into the facility to allow
for future equipment additions. Also, a planned feed science
and education wing that is to house laboratories, offices, meeting rooms and a state-of-the-art pet food research center will
be part of the second phase of the project. One area that has
not been addressed in our department over the years that has
become a very lucrative field is the production of pet foods
and pet food research, Fairchild said. We have put together
a stand-alone minor in petfood production aimed at attracting
additional students into our department.
Not only will the highly automated, state-of-the-art facility
draw more students to the feed science program and garner
more interest in the short course program, it already attracted
top-notch faculty, Maier said.
He noted that Dr. Carlos Campabadal joined the International
Grains Program nearly two years ago. He received his Ph.D.
from Purdue University and leads the feed manufacturing
and grain management continuing education curriculum. Dr.
Cassie Jones joined the department in August 2012. She received her Ph.D. from Iowa State University and is focusing
her research on feed safety and the effects of processing on
animal nutrition. Dr. Charles Stark, who graduated from KSU
in 1994 with a PhD in grain science, recently returned to his
December 2013 / World Grain /

For more information, see Page 102.

FEATURE: The WaiT iS over

Ron Kruse, whose family made a $2 million donation for the new feed mill, spoke at the dedication.

alma mater to serve as faculty coordinator of the O.H. Kruse Feed Technology
Innovation Center. Stark had been at
North Carolina State University where
he was assistant professor and extension
specialist in the Prestage Department of
Poultry Science. During his 20 years in

the feed industry, Stark has provided audit and technical support training to over
33 feed mills in eight different countries.
Upon arriving at KSU in August, Stark,
who was appointed as the Jim and Carol
Brown Endowed Associate Professor of
Feed Technology, said the feed science
program was at a crossroads in history
with this unique faculty position.
The opening of the O.H. Kruse Feed
Technology Innovation Center will allow faculty and staff to build upon the
rich tradition of both (animal sciences
and feed science) departments, while
creating new and exciting programs that
will provide global leadership and help
feed 9 billion people by 2050.
Maier added that one open faculty
position will be filled in early 2014 to
complete the feed faculty team.

mill was supposed to be the first facility built in the Grain Science Complex,
there were actually three other buildings the Bioprocessing and Industrial
Center, International Grains Program
Conference Center and Hal Ross Flour
Mill erected before it because of the
difficulty in acquiring funding for the
feed mill project. Additionally, the new
Kansas Wheat Innovation Center has
been incorporated.
He said the completion of the new
feed mill is another step in helping KSU
achieve its goal of being recognized as
one of the top 50 public research universities in the United States by 2025.
McCownGordon Construction, Kansas
City, Missouri, U.S., was general contractor for the project.

aiding KSUS reSearch goal

Maier noted that although the feed

We want to hear from you Send comments and

inquiries to For reprints of
WG articles, e-mail

For more information, see Page 102.


December 2013 / World Grain /

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feed industry
by Chris Lyddon

New FEFAC president says industry must deal

with feeding a growing population as well as
wider political and environmental issues

uropes feed compounders face a challenging future, says the new

president of their trade association. They need to guarantee supply in
a world where emerging economies will be competing hard for the raw
materials of animal feed production. They need to handle the insistence of
European consumers and regulators with standards that are high and which
sometimes go beyond what is strictly necessary for human or animal health,
as risk perception becomes more important than real risks. They need to
make the case for efcient modern livestock production and to help show
Ruud Tijssens was elected president of FEFAC earlier this year. Photo courtesy of FEFAC.


December 2013 / World Grain /

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FEATURE: european feed industry challenges

consumers that it can go hand in hand

with high standards of animal welfare
and environmental performance.
To handle all the challenges that face
them, they need to enhance communicating with the rest of the chain and
with the rest of society more effectively.
FEFAC, the European Compound Feed
Manufacturers Federation, elected its
new President, Ruud Tijssens, Director
of Corporate Affairs for Agrifirm
Group, based in the Netherlands, at its
Congress in Cracow in Poland earlier
this year.
In an interview with World Grain in
October, he started by stressing the need
to face up to the scarcity of raw materials
in a world in which there will be 9 billion
people by 2050, as well as a wider political issues and environmental issues.
We need to reduce the impact of
livestock farming on climate change,
he said.
He believes that the industry does
have the right approach. The current
way of modern and efficient livestock
farming delivers very low greenhouse
gas emissions per kilogram of meat or
milk, he said.
Environmental issues have become hugely important for the
European industry.
Resource efficiency is one of the
important subjects driving innovation and thereby reducing the environmental impact, he said. That includes a need to make sure that raw
materials are produced with the greatest possible efficiency in the use of
agricultural inputs. Phosphate efficiency and nitrogen efficiency could be
increased by 30%.
Tijssens believes in a future in which
the animal feed industry is producing a
specialist product, moving swiftly away
from the currently prevailing commodity-based business model and he believes
that is how feed should be seen by suppliers and customers.
We deliver nutrition of the right type
for each individual animal at every stage
of its development, he said.
He highlighted the potential influence

of nutrition on what have previously

been thought of as genetic issues. The
industry is developing what is known as
precision feeding.
That is a very important driver,
he said. We are working very closely
with the (United Nations) Food and
Agriculture Organization. We are also
very much involved in setting up a
precompetitive European Research &
Innovation agenda for animal nutrition.
This is very important.
We really see challenges ahead.
We are totally aware of the discussion
over the social acceptance of this model
of livestock farming in Europe. We as
FEFAC realized we cannot solve all the
problems alone.
He laid great stress on the need for
FEFAC to work with other organizations in the industry, the supply chain
and with governmental bodies. That includes authorities at the local level.
The issue of social acceptance is
playing its role at different levels in
society from European to small
communities. It does ask different answers on all these different levels he
said. But we have to take them all
serious and as the feed industry deliver according to our possibilities to
influence the discussion and to deliver
potential answers.
Locally, the discussions are dominated by the effect of farming on the
local environment, like odor, emissions
or logics. But it ranges also to the concerns of European consumers about
how and where oilseeds, including soy,
are grown.
Sustainable raw materials are a very
important issue, he said. Were already
working on European industry guidelines
for the import of sustainable soy.
The second issue is food safety. We
have had some crises, he said.
He highlighted the effects of scandals
over dioxin or the BSE problem. A
lot of food quality systems are in place
now, he said. That didnt mean there
were no problems. We still are facing
emerging issues.
As an example, he cited the case ear-

lier this year in which aflatoxins were

found in milk in several European countries due to delivery of contaminated
corn from Southeastern Europe.
The feed industrys top 10 CEOs have
got together to drive the industrys approach to safety problems to the next
level and they plan to get the European
association to do more.
The mandate of FEFAC is going to
be enlarged on this subject, he said.
We are also calling on COCERAL, our
main trade partners, to enter into dialogue to find chain solutions on how we
can increase transparency throughout
the chain. We will start to work on a coalition of the willing.
FEFAC will be looking at how feed
producers can organize the information flow and the discussion on contractual clauses covering feed safety
with their suppliers.
How can we organize the liability?
he asked. What is in contracts is business to business; this is a fact. But at the
same moment the weakest link in the
sector can have substantial impact on
this issue. So we have to find a way to
improve the contracts. We need to look
at where we take samples and how we
take samples in the feed chain.
We are really calling for all traders
and suppliers, as well as COCERAL, to
get involved to apply the top-of-thepyramid approach on testing and monitoring of feed materials, meaning the
key responsibility for testing lies with
the first placer on the market. This is
crucial to avoid spreading contamination further down the feed chain in order to protect our livestock farmers and
the dairy and meat procession industry
and ultimately the final consumer.
Strategic raw material SupplieS
Europe is becoming more and more
an island, he said. Our feed safety
norms are the most stringent at the global level on GMOs. Europe has the most
stringent legislation worldwide. And
sustainability of raw materials will be
added to the list in the near future.
We still think and act as if we are in a

December 2013 / World Grain /

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commodity business. We buy commodities, but we transfer these commoditytype products in a speciality.
This is currently the case, but livestock
producers are demanding the feed industry to do more. We are getting more and
more different requests, he said.
The recent aatoxin problem was a
good example of how other issues could
affect the industry.
As far as we know now, it was not a
food safety problem, he said, explaining
that there was no potential adverse effect
on human health. It was a reputation
problem. There was no real health risk.
The problem lay with one particular market and its perception of
food products.
The European dairy industry has
a very important export position in
China, he said. The Chinese consumers dont trust their own industry.
The European dairy processors
couldnt afford anything that would
shake the Chinese condence in the
European dairy products.
He drew the parallel to the recent experience of the leading New Zealand
dairy exporter to China over allegations of botulism in whey concentrate
which later proved unfounded, In the
meantime, however, the export posi-

tion was severely damaged.

We are at a crossroads, he said.
You know the difculties we have with
new GM traits.
The industry has to get its case across
to public and legislators about the need
for science-based rules in a world in
which simply avoiding biotech may not
be a viable option anymore for the E.U.
feed and livestock chain.
We would like to raise again the issue of acceptance of GMO, he said.
He highlighted the importance of geopolitics and maintaining the security of
raw material supply in a world in which
large countries like China and India
would dominate.
Europe is highly dependent on imports of protein, he said. What is our
agenda on this? We want to raise the
question in our sister and other food
chain organizations but also at governmental and political level in the E.U.
FEFAC is also working on a wider international level outside the E.U.
We are members of the International
Feed Industry Federation, and we do
proactively contribute to the work
of Codex Alimentarius, which adopted this summer new global guidance on feed safety risk assessment
and prioritization of feed safety haz-

ards he said. This guidance creates

the baseline for further worldwide
harmonization of feed safety norms
and standards.
The aatoxin scare had shown how
the rules and approach on feed safety risk management still vary widely
around the world.
One big boat caused the aatoxin
problem in Germany, he said. It was
later exported to the U.S. for feed use
with permission by FDA. It was all
within legal limits in the U.S. We cannot explain this state of affairs to our
European customers and consumers.
Feed regulators from all world regions
need to work more closely together and
agree on the key objectives and conditions for a common approach on regulatory framework for feed safety.
Above all, he stressed the need for the
industry to get to grips with the longterm challenges it faces. At the end it
is all about the key issue of how Europe
will safeguard its strategic food supply,
he said.
Chris Lyddon is World Grains European editor. He
may be contacted at:
We want to hear from you Send comments and
inquiries to For reprints of
WG articles, e-mail

For more information, see Page 102.


December 2013 / World Grain /



For more information, see Page 102.



plans second combined show

ow in its second year as an integrated show, the

International Production & Processing Expo (IPPE) is
set for Jan. 28-30 at the Georgia World Congress Center
in Atlanta, Georgia, U.S. The IPPE combines the International
Poultry Expo, International Feed Expo and International Meat
Expo into one event.
More than 1,100 exhibitors and 25,000 attendees are expected for the show, billed as the worlds largest annual poultry, meat and feed industry event of its kind. Organizers say a
wide range of international decision makers attend the event
to network and learn the latest technology developments and
issues facing the industry.
Last years event attracted nearly 5,500 international
visitors from more than 110 countries. Latin American/
(Above) The 2012 IPPE included more than 900 exhibitors displaying the latest technology in the poultry and feed industries. Photo by Dan Flavin.

by Susan Reidy

Event scheduled for Jan. 28-30 at

the Georgia World Congress Center
in Atlanta, Georgia, U.S.
Caribbean countries represented the largest region of international visitors, but there has been growth in attendees
from Europe, IPPE organizers said. Canada represents the
largest single country outside of the U.S. in terms of the
number of attendees.
All segments of the industry are represented at IPPE including feed milling, hatchery, live production, processing, further
December 2013 / World Grain /

For more information, see Page 102.

FEATURE: ippe plans second combined show

processing, marketing and all support activities.

IPPE features an extensive educational program including the first-ever export seminar hosted by the American
Feed Industry Association (AFIA) and the Pet Food
Conference, as well as trade shows, which will showcase
the latest technology, equipment and services used in the
production of feed.
Educational programming
The AFIAs How to Export Feed and Feed Ingredients to
the U.S. seminar is Jan. 29, and will provide insight to the
complex process of exporting feed and feed ingredients into
the U.S.
Over the years AFIA has seen an increased interest and
curiosity by IPPE participants in exporting feed and feed ingredients to the U.S., said Gina Tumbarello, AFIA manager
of international trade. The seminar is designed to address this
growing demand by providing a variety of information from
a diverse panel of speakers. If you are currently exporting to
the U.S., or thinking about it, this seminar will serve as an
excellent resource.
The half-day seminar will take place at the Georgia World
Congress Center and will include presentations from both
the U.S. Agriculture Departments Animal and Plant Health
Inspection Service (APHIS) and the U.S. Food and Drug
Administration (FDA).
It will include the following presentations:
Overview of U.S. Feed Industry, Joel G. Newman,
AFIA president and chief executive officer.
U.S. Feed and Feed Ingredient Import Trends, Gina
Tumbarello, AFIA.
The Food Safety Modernization Act - What Exporters
to the U.S. Need to Know, Daniel McChesney, U.S. FDA.
APHIS: Exporting Animal and Plant Products to the U.S.
Customs Brokers: Representing Companies Not
Located in the U.S.
Cost is $40 prior to Dec. 31, and increases to $60 after
that date.
Also on Jan. 29, the AFIA will offer the International Feed
Education Forum to address issues unique to feed manufacturers. The half-day event will feature three sessions on topics
impacting feed manufacturers.
Keith Epperson, AFIAs vice-president of manufacturing and training, will open the forum, presenting the latest regulations from the U.S. Environmental Protection
Agency (EPA) and Occupational Safety and Health
Administration (OSHA).
Richard Sellers, AFIAs senior vice-president of legislative and regulatory affairs, will discuss the implementation
of the Food Safety Modernization Act (FSMA) and other
government compliance rules such as the Veterinary Feed
Directive. The final speaker, Dr. Henry Turlington, AFIAs
director of quality and manufacturing regulatory affairs,

ippE schedule at a glance

monday, Jan. 27
8 a.m.-5 p.m.
Noon-5 p.m.
Noon-5 p.m.
1-5 p.m.
1-5 p.m.

International Poultry Scientific Forum

Beef Plant Tour
Poultry Plant Tour
Animal Agriculture Sustainability Summit
Sanitary Equipment Design
Principles Workshop

tuesday, Jan. 28
8 a.m.-1 p.m.
8 a.m-4:30 p.m.
8-10 a.m.
8-10 a.m.
8-10 a.m.
9-11:30 a.m.
10 a.m.-5 p.m.

International Poultry Scientific Forum

Pet Food Conference
Traceability Workshop
Changing Food Safety Landscape
Best New Products
Animal Agriculture Sustainability Summit

Wednesday, Jan. 29
8:30-11 a.m.
8:30-11:30 a.m.
9 a.m.-5 p.m.
1-5 p.m.

AFIA International Feed Education Program

How to Export Feed &
Feed Ingredients to the U.S.
Media Training for the
Meat and Poultry Industry

thursday, Jan. 30
8-10 a.m.
8-11:30 a.m.
8 a.m.-Noon
9 a.m.-3 p.m.
1-5:30 p.m.

Export/International Food Safety Issues

Biosecurity - Revisiting the Basics and
Implementing New Strategies
Fall Protection Short Course
International Rendering Symposium

Friday, Jan. 31
8 a.m.-Noon

International Rendering Symposium

will discuss FSMA Hazard Identification Requirements.

Sellers, Epperson and Turlington will focus their talks
on areas that directly impact todays feed manufacturers and what managers need to know on how to abide by
the regulations.
The AFIA, along with the Poultry Protein and Fat Council
are sponsoring the seventh annual Pet Food Conference on
Jan. 28, the first day of the IPPE.
We are excited to kick off IPPE with AFIAs annual Pet
Food Conference, which attracts more than 200 participants
each year, said Leah Wilkinson, AFIA director of ingredients, pet food and state affairs. The seminar covers everything from product claims, marketing and nutrition to regulatory and technical aspects of production, and is a great networking opportunity.
Cost for the Pet Food Conference is $60 prior to Jan. 1,
December 2013 / World Grain /

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The Pet Food Conference will include
presentations on the following topics:
Domestic and Global Industry
Euromonitor International.
Trade Issues and Outlook, Gina
Tumbarello, AFIA.
Ingredient Supply Challenges and
Food Safety Modernization Act
Update and Panel Discussion.
Pet Food Third-Party Certification
Program Update.
Administration Update, Dr. Daniel
McChesney, FDA.
Association of American Feed
Control Officials Update.
Panel: Communications and
Industry Best Practices, Dr. Dale Hill,
ADM Alliance Nutrition.
Lets Talk Innovation.

New this year, the Pet Food

Conference will include a luncheon with
guest speakers from Nutra Blend LLC
who will discuss the Drive to Feed the
World/Chew. This mobile exhibit was
created to heighten awareness of hunger.
Attendees can walk through the interactive exhibit to view information on hunger, sustainability and food facts.
It joins two other special exhibits
that will be on hand during the IPPE
including the Smithsonians Animal
Connections: Our Journey Together
mobile exhibit and the Oscar Mayer
Wienermobile. The Smithsonian exhibit was created to mark the 150th anniversary of the American Veterinary
Medical Association and addresses topics such as animals in the home, on the
farm, in the wild, at the zoo and in the
veterinary clinic.
More details about the IPPE special
exhibits, educational programs, as well

as a list of exhibitors and registration

information are available at www.
Feed regulators meeting
Prior to the IPPE, the 7th International
Feed Regulators Meeting (IFRM) is
Jan. 27-28 in Atlanta. The meeting is
organized by the International Feed
Industry Federation (IFIF) and the
United Nations Food and Agriculture
Organization (FAO).
This IFRM provides regulators and
feed industry professionals from across
the globe an opportunity to discuss ideas
for providing safe and affordable feed
and food around the world.
The IFRM is by invitation. Those interested in attending, can contact IFIF at
We want to hear from you Send comments and
inquiries to For reprints of
WG articles, e-mail

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Choosing a
batch mixer

Many factors must be considered when

deciding which type to use in the
commercial and integrated feed industries
by Fred Fairchild

Once all of the ingredients have been

weighed up in the proper amounts, the
next step in the feed manufacturing process is to blend them together. This is
done using some type of mixing apparatus. In this article we will look at different
types of batch mixers used in the commercial and integrated feed industries.
As the word mix indicates, the mixing process involves blending together a
group of various types of dry ingredients
to form a blended product. It may also be
a process where liquid ingredients may
be added and blended with dry ingredients to make a homogeneous mixture of
all. The uniformity of the mixed product is of extreme importance. Different
methods of testing the mix uniformity or
consistency have been developed.
The most common method used in
the feed industry is the Coefficient of
Variation (Cv). Prior to starting the
mixing, a marker ingredient of known
characteristic or strength is place in
the mix as an added ingredient or an
included ingredient in the mix. After
the mixing is complete, 10 samples
taken from different areas in the mixer
are tested and compared for the marker
characteristic or strength.
Differences in the marker character
or strength between samples are then
compared and the coefficient of variation based on the deviation between
the samples is calculated. A mix is normally considered well mixed if the Cv
is a value of 10 or less. A standard pro50

a twin shaft mixer manufactured by Hayes & stolz. photo courtesy of Hayes & stolz.

cedure for this was developed at Kansas State University and is an ASABE
standard. A description of the process
using salt as the marker is described in
detail in Feed Manufacturing Technology V, Appendix D Mixer Testing,
published by the American Feed Industry Association.
Another factor in choosing a mixer
is the length of mixing (cycle) time required to get a mix with a Cv of 10 or
less. In earlier eras, mix time lengths
were not important as long as the mixing
was complete. Early vertical mixers often
required as long as 20 minutes or more to
completely mix a batch. A 4-minute mixing time was normal for single shaft hori-

zontal mixers.
In todays feed industry, higher production capacities and shorter mixing
times are in demand. This has brought
about new designs for horizontal mixers and the introduction of the twin shaft
mixers with mix times of as little as 30 to
60 seconds.
Before discussing different types of
mixing actions and mixers, it is important to review mixer capacities. Most
often mixer capacities are described by
the weight of the batch size being mixed
in the mixer. Thus, a 4-ton mixer supposedly mixes a 4-ton batch of feed.
This is somewhat true if the density of
(Continued on page 56)
December 2013 / World Grain /

Enzymatic Improvement
of the Quality of Pasta
and Noodles
Lutz Popper, Sabine Clauen and Martina Mollenhauer,
Mhlenchemie GmbH & Co KG, Germany

The limited availability of durum wheat and its relatively high price
induce the search for alternatives that help to save costs while maintaining quality. The addition of vital wheat gluten is a viable but
expensive method, and the application of hydrocolloids such as guar
gum is limited to certain applications, e.g. instant noodle flour. The
improving effect of specific emulsifiers and the recently discovered
beneficial action of certain enzymes will be the subject of this contribution.
The properties of pasta and noodle dough differ
greatly from those of yeast-leavened dough,
particularly concerning the lack of gas bubbles that
are not desirable in pasta and noodle processing but
have to be stabilized and entrapped in bread dough
and the like. Instead of dough elasticity, plasticity is
preferred, and staling is hardly an issue. Nevertheless,
some properties seem to be useful in both applications, for instance protein stability. In the case of
bread, this is a useful trait for volume yield, while
in pasta and noodles, good gluten improves cooking
tolerance and the eating properties. There are also
parallels between the processes in respect of starch:
in bread making, emulsifiers such as monoglycerides
are used to retard the staling of bread through
interaction with starch. In pasta and noodles, the
same emulsifier improves cooking stability and
reduces cooking losses, because it retards the
gelatinization and thus solubilisation of starch.

Some enzymes familiar from the field of baking

have shown themselves to be useful in pasta and
noodle applications too. While hemicellulases can
reduce the viscosity of the dough and thus the water
addition rate (saving money in the production of
dry noodles), some carboxyl esterases have turned
out to be very efficient in improving and modifying
pasta and noodles. They not only improve the
cooking tolerance but also activate the flours own
bleaching system, lipoxygenase, resulting in brighter
and less speckled end products. If yellow pasta and
noodles are preferred, these enzymes create a
brighter background for colouring agents such as
carotene or curcuma.

Materials and methods

t H
 RW wheat flour
Protein: 11.7 % d.b.,
Wet gluten: 26.8 %,
Falling number: 486 s

t Textural evaluation
The firmness and the stickiness of the
spaghetti were tested with the texture
analyzer TA XT2, equipped with a Light
Knife Blade, according to AACC method

t D
 urum wheat semolina
Protein: 13.1 % d.b.,
Wet gluten: 27.1 %,
Falling number: > 1,000 s

t P
 reparation of the spaghetti
1,000 g of HRW flour or durum semolina
(provenience unknown) were premixed with
water (15 C) in a Hobart laboratory mixer at
slow speed for 5 min and then kneaded for
10 min in a Sela machine type TR-75W at
atmospheric pressure to form a crumbly
The dough was then pressed through
a Teflon dice to form spaghetti with a
diameter of 1.9 mm +/- 0.2 mm.
The spaghetti was dried in a climate
chamber (Binder KBF 240) at 35 C and 60%
rel. humidity for 24 h. The noodles were
prepared for testing by cooking 100 g in
1 litre of boiling water (0.5 % salt) for
8 min. The cooking water was recovered
for further testing. The noodles were cooled
down by rinsing with 1 litre of cold water
(10 C) for 5 seconds.

t Determination of cooking loss

The cooking water was allowed to cool to
room temperature and then stirred with
a whisk to form a uniform suspension.
10 ml of this was pipetted into conical
tubes (Fisherbrand, capacity 10 ml) and
closed with a lid.
The tubes were centrifuged at 4 C for
15 min at 4,590 min-1 (4,546 g; Heraeus
Multifuge 3SR+, Thermo Scientific). After
centrifugation the samples were kept for
24 h at 5.3 C.

Results and discussion

Improvement of the texture

Carboxyl esterase splits fatty acids from the glycerol

backbone of the glycerides, phospho- and glycolipids
of the wheat flour. The resulting molecules are
known to have a stronger interaction with starch,
resulting in a higher gelatinization temperature. It
is also described in the literature that lipids in
general and lysolipids in particular associate with
proteins during the preparation of (bread) dough.

This results in an improvement of protein coherence, providing better volume yields in baking. If
similar effects occurred during the preparation of
pasta dough in spite of its low moisture content, it
would strengthen the pasta texture even further.
Our results shown in Fig. 1 confirm the possible
strengthening effect of carboxyl esterases in pasta
processing too.

Fig. 1:

Firmness of cooked pasta made from hard

wheat flour as affected by carboxyl esterase
(Pastazym Plus)
Control: Pasta from HRW flour without added enzymes

Firmness (g)







Dosage Pastazym Plus (ppm on flour)

Reduction of stickiness
The reduced stickiness of cooked pasta (Fig. 2)
can also be explained by the rise in the starch
gelatinization temperature caused by carboxyl
esterase. The reduction of starch leakage (Fig. 3)
probably adds to this effect because both effects
reduce the amount of free gelatinized starch in the
cooking water which would otherwise increase the
amount of sticky starch on the surface of the
Fig. 2:

Stickiness of cooked pasta made from hard

wheat flour as affected by carboxyl esterase
(Pastazym Plus)
Control: Pasta from HRW flour without added enzymes
|Stickiness| in (g*s)

A major advantage of durum wheat flour pasta

as compared to hard and soft wheat flour is the
superior cooking tolerance and the uniform, firm
texture of the cooked product. Carboxyl esterase is
able to increase the firmness of hard wheat noodles
significantly. In previous trials, pasta from soft
(German) wheat even achieved the firmness of
durum pasta (data not shown). In the trials presented
in this paper, the effect was not as strong, but still
the enzyme reduced the difference in firmness
between durum and hard wheat pasta by more than
50 % (Fig. 1).



Control HRW



Dosage Pastazym Plus (ppm on flour)


Reduction of cooking losses

Not surprisingly, durum wheat pasta showed the
lowest cooking losses as determined by centrifugation of the cooking water (leftmost tube in
Fig. 3), whereas untreated HRW flour (control)
resulted in a much higher sedimentation volume.

We assume three possible reasons for the reduced

cooking losses:

The reduction of the sediments decreased with

increasing amounts of the carboxyl esterase
Pastazym Plus.

These effects seem to improve the binding of starch

and protein to the noodle structure, thus reducing
the leakage.
Fig. 3: Effect of carboxyl esterase (Pastazym Plus) on cooking losses from hard wheat pasta
(starch leakage into cooking water)




Dosage Pastazym Plus (ppm on flour)



of grist costs


As we have experienced in the recent past, the prices

for wheat are sometimes subject to extreme
fluctuations. When the price for high quality hard
wheat differs substantially from that for less strong
wheat, additives and in particular enzymes can
help to lower the cost of a flour mix for pasta and
noodles because they make it possible to reduce the
use of expensive flour and use weaker flour instead, e.g. soft instead of hard wheat flour or hard
wheat flour instead of durum semolina.

Durum semolina is the best raw material for

high quality pasta production and cannot be
improved. Or can it? According to the data collected
by Marchylo et al. (2004), the cooking score of
durum wheat pasta correlates strongly with the
protein content of the durum wheat (Fig. 5).

improvement of pasta made

from durum wheat?

Care has to be taken not to adjust only the rheological data or the processing properties or the
quality of the end product, but to obtain a total performance close to that of the superior wheat flour
in order to avoid problems at any stage of production
and marketing.
Fig. 4: Cost advantage achieved by using Pastazym
Plus (200 ppm) in pasta. Calculation based
on data from January 2012.

But from the same data it can also be derived that

there is substantial fluctuation in pasta quality, in
particular in pasta made from high-protein durum
wheat. So we believe that even durum wheat flour
leaves room for improvement, since improvers can
be used to achieve a more consistent end product
quality. Trials with various durum wheat qualities
will have to be performed in the future.

Fig. 5: Impact of durum wheat protein

content on pasta quality
(modif. from Marchylo et al., 2004)


Cooking score (units)


Grist costs (USD/t)














%HRW, combined with durum (HADW)



Protein content (%)

References B. A. Marchylo and J. E. Dexter,

and L. J. Malcolmson, 2004. Improving the texture of pasta.
In: Texture in food - Volume 2: Solid foods

For more information, see Page 102.



bottom of the mixer where they were

again picked up by the vertical augers
and carried back to the top for another
cycle. Differences in ingredient densities, particle sizes and particle shapes
caused the mixes to separate when falling from the top back to the bottom of
the mixer.
For some ingredients it was very difficult to get the batch completely mixed.
Additionally, some of the ingredients
were difficult to pick up by the vertical
screws and remained in the bottom of
the mixer unmixed.

Continental products rollo Mixer is available in five designs and over 125 models. photo courtesy
of Continental products.

(Continued from page 50)

the mixture is 40 pounds per cubic foot.
But a mixer is not a scale. Its actual capacity is measured by the cubic volume
of a mixture it will hold and mix properly. Thus, a 4-ton batch with an average density of 40 pounds per cubic foot
requires 200 cubic feet of volume in the
mixer to handle the batch.
If the average density of the batch
is only 30 pounds per cubic foot, the
200-cubic-foot mixer will only hold and
mix a 3-ton batch. Likewise, if the batch
has an average density of 60 pounds per
cubic foot, that same 200-cubic-foot
mixer will hold a 6-ton batch. Most mixers used in commercial feed manufacturing are built strength-wise for mixing
batches with maximum densities of 40
to 50 pounds per cubic foot. Heavier
constructed mixers are available and
should be specified when choosing mixers to mix higher density batches such
as minerals or premixes.

Dry ingredients should be introduced

into a mixer in the following order:
ground grains and other major ingredients, minor ingredients, and finally, low
inclusion or hand-added ingredients.
These ingredients are then mixed until fully mixed (dry mix time) and the
liquids are added to the mixture and the
batch mixed further until fully mixed
(wet mix time). There are basically
three types of mixing actions available
in commercial feed mixers: shearing,
tumbling and cross-flow styles.
Vertical Mixers
Vertical mixers are still used in small
on-farm operations but seldom found in
todays commercial feed industry. The
ingredients were put into the mixer at
floor level and mixed by elevating the
materials to the upper part of the mixer
housing by vertical augers.
From the top of the auger tubes, the
materials fell by gravity down to the

Horizontal Mixers
A majority of the mixers used in the
commercial and integrated feed industry
are the horizontal style. There are three
basic styles of horizontal mixers: ribbon,
paddle and twin shaft. These mixers are
enclosed in round bottom housings.
The single shaft horizontal mixer has
been used for years in feed manufacturing. It consists of a horizontal center
shaft with two or more rows of opposing ribbons mounted on support arms.
The mixing action occurs as one set of
ribbons move the material one direction
and the other row pushes the material
in the opposite direction. This creates a
shearing and blending action.
A second type of single shaft horizontal mixer uses a single horizontal
center shaft with arms with paddles
mounted on them extending from the
shaft. These mixers are available with
different shapes and configurations of
the paddle surfaces.
This type of mixer is primarily used
for blending hard to handle or abrasive
ingredients, or mixes with large additions of liquid ingredients. These mixers also create a shearing movement
and blending, but also add a lifting
movement to action.
The most commonly used mixer in
new construction or remodeling is the
newer twin shaft horizontal mixer. In
these mixers there are two side-by-side
counter rotating ribbon or paddle assemblies similar to placing two single
shaft mixers in the same housing. These
December 2013 / World Grain /

For more information, see Page 102.



mixers have the mixing advantages of a

single shaft mixer with the added ability to cross mix the ingredients between
each of the assemblies.
If paddles are used, they can be
overlapped to create a fluidizing zone
between the two shaft assemblies.
These mixers have the advantage
of both lengthwise mixing as in the
single shaft type and cross mixing between the assemblies.
These combined mixing actions provide for full or complete mixing in as
little as a minute or less depending on
the ingredients being used.
Single shaft horizontal mixers are designed to be full for proper mixing action. This means that the mixture should
fill to the point that the top of the ribbon
or paddles is covered. If they are overfilled, the materials above the ribbon or
paddle tips do not get mixed well and often just float on top of the mixing action.
The twin shaft horizontal mixers, due
to their cross mixing actions, can properly mix batches that fill only a portion
of the mixer volume. This works nicely
for mixing various size batches in the
same mixer. In some cases, using a twin
shaft horizontal mixer, the batch size
can be as small as 10% to 20% of the
full mixer capacities.

Drum mixer
Another mixer is the drum type. It is
a horizontal cylinder turned by an external drive. There are no rotating internal
parts. The mixing is done by a series of
vanes attached to the interior surface
of the drum. As the drum rotates, these
vanes cause a free-fall action that folds,
divides and combines the ingredients
into a uniform mix that is blended by
the constant rotating motion. Without
internal moving parts, the mixer is able
to gently mix breakable ingredients or
materials such as flaked grains. It also
is able to mix hard to handle ingredients
due to its mixing action.
This mixer is charged and discharged
through openings located high on the front
(end) of the drum. Liquids may be added
by spraying the liquid onto the tumbling
ingredients using a liquid addition accessory. The drum uses much less energy than
the standard horizontal or vertical mixer
as no rotating shafts are used internally.
This mixer can also do small batches.
When liquids are added into any mixer, they must be sprayed into the mix so
they actually are sprayed on to the ingredients and not on to the surfaces of the
mixer itself. For batch mixes, it is best
to limit the amount of liquid added to
no more than 4% maximum of the batch

weight, but higher liquid addition rates

are often possible in horizontal paddle
mixers and drum mixers.
When choosing a batch mixer, it is
important to know the types and characteristics of materials to be mixed,
the amount(s) of liquids to be added in
the mixture during mixing, the sizes of
batches required, and the time available
for the mixing operation to meet production requirements.
It is wise to look at different mixer
manufacturers and options before deciding on the correct batch mixer for your
needs. Most manufacturers will gladly
run a test for you to confirm the suitability of their equipment.
In a future article we will look at continuous mixing system equipment.
Fred Fairchild is feed science professor emeritus
in the Department of Grain Science and Industry
at Kansas State University. Prior to coming to
Kansas State in 1994, he worked in the industry
designing, constructing and commissioning
numerous mill facilities. He is a licensed
professional engineer. He can be reached by
e-mail at
We want to hear from you Send comments and
inquiries to For reprints of
WG articles, e-mail

Future of Flour is the rst comprehensive compendium of our

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December 2013
/ World
Grain /

For more information, see Page 102.


Flour output rising

in developing nations

hanks to the International Grains Council (IGC) for

gathering data on flour production in many leading producing nations around the world, a picture emerges of
developed nations registering little or no change in flour output in contrast with the developing nations where significant
gains have been recorded, especially in those countries also
capturing a significant volume of flour export trade. While the
milling output trends revealed by the latest data from the IGC
covering production through the 2011 calendar year are quite
revealing, the Council also was unable to assemble output
data from significant flour producers like China, the worlds
largest, Nigeria and Egypt, as well as Australia and Italy that
havent provided information to the Council.
As comprehensive as the IGC statistics on flour production may be, aggregating the figures fell far short of indicating global production of wheat flour. For instance, the IGC
separately forecast global food use of wheat in 2013-14 at
471.3 million tonnes. Based on a 75% flour extraction average, this would equal nearly 350 million tonnes or well in excess of 5 billion cwts of flour. At its most extensive coverage
of flour production, in 2008, the output provided by the IGC
approached 4 billion cwts.
Based on the crop year estimates by the IGC of food use of
wheat, worldwide flour production has been on a definite upward course. The food use of 471.1 million tonnes forecast
for the current season compared with 465.7 million in the
prior year and 460.7 million in 2011-12. This would indicate

by Morton Sosland

IGC data show significant increases

in Former Soviet Union countries
annual gains of about 1%, a little behind the rate of world
population increase.
The last year in which the IGC had an estimate for flour
production in China was 2008, when the countrys outLeading flour producing nations
(percentage change)

United States
United Kingdom,

% change

% change

% change

Source: International Grains Council

December 2013 / World Grain /

For more information, see Page 102.

FEATURE: Flour output riSing in developing nationS

Leading flour producing nations

(total production in 1,000 tonnes)
United States
United Kingdom,


















Source: International Grains Council

put was placed at 79,371,000 tonnes

of wheat flour. In that same year, the
U.S., which ranks second to China in
commercial flour production, turned
out 18,883,000 tonnes of flour, or 422
million cwts. In 2011, the latest full
year reported by the IGC, U.S. production actually decreased to 18,235,000
tonnes or 408 million cwts.
Using the IGCs data points to 201112 food use of wheat in China at 85 million tonnes followed fairly closely by
India at 73.1 million tonnes. The IGC
did not present an estimate of India flour
production for 2011. In 2010, its flour
output was placed at 2,550,000 tonnes,
which represented output of only commercial mills, whereas most of the wheat
product ground in India comes from
primitive single-person mills operating
in small villages and on street corners
grinding a whole wheat product known
as atta. Indias commercial mill output
of flour has been on a rising trend.
The three major North American
flour producers the United States.
Canada and Mexico comprising the
North American Free Trade Agreement
have been producing nearly 24 million
tonnes of flour year after year. The total for 2011 was 23,679,000 tonnes,
little changed from 24,040,000 in
2007. Mexicos output for the four
years gained, while Canada and the
United States held barely steady or
decreased slightly.
The steady course of North American

output was closely paralleled in Western

Europe, even though some country
changes were quite large. Germany,
Europes leading flour miller, turned
out 6,387,000 tonnes in 2011, up 13.7%
from the prior year and on top of a 4.4%
gain 2010. Its 2011 output was up 21%
from four years earlier. In contrast, U.K.
flour output in 2011 fell 19% to 4.1 million tonnes. Output in the Netherlands
dropped 15.3%. French mills turned out
4,492,000 tonnes of flour, up 2.7% from
2010 but slightly below the 2007 total.
Among developing nations with
flour output gains, satellites of the
Former Soviet Union stood out. In
2011, Polands mills produced 3.7 million tonnes of wheat flour, up 23% from
the previous year. Romania output was
1,610,000 tonnes, an increase of 19.3%
from 2010. The Czech Republic scored
a gain of 22.6%. Russia itself posted an
11.6% increase in 2011, to 10 million
tonnes, but this sizable increase was outdone by Ukraine, turning out 2,587,000
tonnes, up 23% from 2010, and Belarus,
up 20% to 764,000. Hungarys decrease of 7% was among the few reductions in Eastern European production.
Kazakhstan, which ranks among leading
flour exporters, scored another output
rise in 2011, to reach 3,846,000 tonnes,
or 86 million cwts, up 2.5% from 2010.
Among the largest flour milling nations, one of the sharpest increases occurred in Turkey, with 2011 output of
7,815,000 tonnes, up 10% from 2010.

That followed a 25% increase in the

prior year. Turkey, which has captured
an expanding volume of exports, has
seen a dramatic expansion in output
since 2007 when its production was
5,051,000 tonnes.
Flour output in Asia for the most part
showed relatively small changes. Japan,
turning out 4,899,000 tonnes in 2011,
gained 1.8% over 2010, with the latter up 5.5% from 2010. An exception
was Indonesia, where mills turned out
4,041,000 tonnes, a new record and an
increase of 11.4% over 2010.
Brazil leads in flour output in South
America, where it also has a major role
as an importer to meet its internal requirements. Output in Brazil in 2011
reached 7,957,000 tonnes, up 4.6% from
the preceding year and 12% above the
2007 total of 7,081,000. Argentina produced 4,791,000 tonnes of flour in 2011,
up 1% from the prior year and compared
with 4,311,000 four years earlier. Peru
turned out 1,251,000 tonnes, up 14.7%
from 2010.
The IGC reported flour output in 2011
in only two African nations, South Africa
at 2,454,000 tonnes and the Sudan at
1,410,000. Both nations showed consistent small annual increases. Egypt and
Nigeria are among the worlds leading
flour producers, but no data are shown
on eithers output in recent years.
We want to hear from you Send comments and
inquiries to For reprints of
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December 2013 / World Grain /

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in oats

s it has for over a century, the Fazer Group, a company with a deep history and wide reach across the
Scandinavian regions food industry, has recently been
making investments in a growing health food trend oatbased products. The Fazer Group was founded in 1891 when
Karl Fazer opened his rst caf in Helsinki, Finland. Today
the Fazer Group has two business segments Fazer Brands
and Fazer Food Services. The Fazer Group offers bakery, biscuit and confectionary products and catering, restaurants and
caf services.
Fazers business philosophy has been successful for over
100 years and four generations of the Fazer familys leadership. A small confectioners business has grown into an international group of companies.
The Fazer Brands business segment accounts for the Fazer
Groups bakery, confectionery, and cafes & shops business
operations. Fazer is a leading bakery company in Finland
and among the leading companies in the Baltic Sea area and
Russia, and its bakery products are exported to 20 countries.
In addition to the Fazer brand, the bakery brands include
Oululainen, Skogaholm, Hlebny Dom, Druva and Gardesis.
Fazer has 19 bakeries located in Finland, Sweden, Estonia,
Latvia, Lithuania and Russia.
Fazer Confectionery is the leading confectionery producer in Finland and a strong player in the Baltic area.
Confectionery products are sold in more than 40 countries.
Fazer Confectionery factories are located in Finland: Karkkila
(chewing gum), Lappeenranta (sugar confectionery) and
Vantaa (chocolate). Biscuits are manufactured in Vantaa.
Among Fazers strong international confectionary brands are
Karl Fazer, Geisha, Dumle, TuttiFrutti, Xylimax, Marianne,
TyrkishPeber, Pantteri and ss.

by Meyer Sosland

Scandinavian company with deep

roots in the Baltic food industry pours
money into a growing food trend
The Fazer Food Services business segment provides contract catering services. In addition to lunch, it offers customerspecic solutions and tasty and nutritionally balanced food to
take away. Fazer Food Services has about 1,100 restaurants
located in Finland, Sweden, Norway and Denmark.
The Cafs & Shops business is mainly based on the Fazer
and Gateau brands. Fazer has 47 in-store bakeries in Finland,
22 bakery shops in Sweden and one in Finland. Fazer has cafs in Finland, Sweden and Russia.
In 1971, the Fazer Group founded Fazer Mill & Mixes to
secure an efcient supply of high quality our to for its bakeries. The mill complex is located in Lahti, Finland. With
a staff of over 30, Fazer Mills objective is to be the most
customer-oriented and cost-efcient mill in Scandinavia,
Jarkko Arrajoki, supply chain director, Fazer Mill & Mixes,
told World Grain in a recent interview.
Fazer Mill & Mixes is one of the leading our millers in
the Nordic region of Europe.
We have been recognized for our work. We have many times
reached the high level of points in AIB audits, which emphasize
Photo courtesy of Fazer.
December 2013 / World Grain /


sustainable development, Arrajoki said.

Fazer Mill & Mixes uses mainly
Finnish wheat and oats. Most of the
milling rye is imported from the Baltic
Sea region.
Today, approximately 70% of Fazer
Mill & Mixes sales are sold outside
other Fazer Group businesses, mainly to
bakery channels.
Our products are exported to
more than 20 countries, for instance,
Sweden, Russia, Ukraine, Poland, the
Netherlands, United Kingdom, France,
Estonia, Latvia, Lithuania, South
Korea, Taiwan, Slovenia and the Czech
Republic, Arrajoki said. We are currently producing rye and wheat ours,
grain-based cereal bers, mixes, improvers and now also oat akes.
Fazer Mill & Mixes recently added
a greeneld oat mill next to its existing

milling facility in Lahti, Finland. The

mill processes 60 tonnes of raw oats per
day. The oat for the mill is sourced locally from Finland.
The grain we purchase must meet the
highest quality specications for milling
grain. We use only non-GMO grain,
Arrajoki said.
The Fazer Group contracted Uzwil,
Switzerland-based Bhler AG to build
and supply the oat mill. It took approximately 12 months to complete the project, which was nished in May 2013.
The project was accomplished in
planned time and budget. Fazer Mill
& Mixes had a great team of milling
professionals consisting of Fazers
own people and people from Bhler,
Arrajoki said.
The oat mill is four stories tall and is
integrated into the companys existing
end product storage facilities. A whole
new oat mill production line was built in

the facility. The oat mill consists of an

oat cleaning and grading line, dehulling
line, screenings handling, kilning line,
steel cutting, aking and packing.
The Lahti oat mills process is totally automated and can be operated by
one oat miller per shift. The mill has a
heat recovery system from the process,
Arrajoki said.
A very high emphasis was put on
consumer safety, process hygiene and
building sanitation. The state-of-the-art
oat cleaning and dehulling section, including color sorter and heat-kilning, ensures good tasting and safe oat products.
All products go through control sieving,
metal detection and quality analysis before ending up with the customer.
The Lahti oat mill produces mainly
oat akes, other oat-related products
and various types of other grain akes.
After storage the oats are cleaned and
prepared with the most modern equip-



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FEATURE: investing in oats

Bhler supplied Fazers new oat mill with a Sortex optical sorter, left, a Granotherm kiln and a Polyfloc flaking roller mill, right.
Photos courtesy of Bhler.

ment. The mill section is compact and

the capacity could be doubled with a
few additional machines.
The use of oat-based products is
growing strongly in the region. Oats

have exceptional health benefits for consumers who are more and more aware
and interested in what they are eating,
Arrajoki said. Also, Fazer Groups other businesses are already strong indus-

trial oat-based product users.

When determining the location of a
production facility, Arrajoki noted the
Fazer Group always takes into consideration a combination of existing produc-

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December 2013 / World Grain /

FEATURE: inveSting in oatS

tion facilities, the business in question

and future plans. However, determining
the location of a grain milling facility is
very much related to raw material and
end product logistics.
For example, it was rational to build
a new oat mill in Lahti due to excellent
Finnish milling oat quality, existing
milling facilities and strong local market
based on oat products, he said.
The new oat mill fits in with Fazer

Baltic Sea Action Group

Fazer has made a commitment to
the Baltic Sea Action Group (BSAG)
and thus the environment and sustainability. BSAG collects commitments to
revive the Baltic Sea. A commitment
for the Baltic Sea is an act or a process
with a positive impact on the ecological
balance of the Baltic Sea.
Jarkko Arrajoki, supply chain director,
Fazer Mill & Mixes, noted that Fazer has
a long tradition in protecting the environment and operating in the Baltic
Sea area. The founder of the company,
Karl Fazer, took responsibility for quality, nature and the environment. Arrajoki noted that Fazers commitment to
BSAG contains four areas and covers
the companys entire business operations. The areas are:
1. Fazers energy strategy.
2. The grain procurement vision of
Fazers Bakery Business.
3. Fazer Mill & Mixes responsibility
4. Fazer Food Services offering and
environmental objectives.
The commitment is divided into milestones and monitored by BSAG.
Arrajoki noted that by the end of
2013 Fazer will reach its first milestones, which include:
Increasing the share of renewable sources of energy in electricity
consumption to 30% in its bakeries
in Sweden.
Creating the grain procurement
vision for Fazers bakery business
Implementing the Fazer Mill
and Mixes responsibility program.
Piloting the food waste measuring system in selected Amica restaurants. / World Grain / December 2013

Groups strategy to develop new products and product categories to meet customers demands.
After the oat mill project was finished,
Fazer Mill & Mixes launched over 20 new
products mainly related to oats. The new
product assortment includes premium
quality oat flakes and heat treated grains
as well as wheat and rye flakes, Arrajoki

said. Both traditional and organic are

available. Oat flakes of different technical
qualities as well as stabilized steel-cut oats
are also available in big bags.
The primary market is bakeries and
musli producers in Northern Europe.
We want to hear from you Send comments and
inquiries to For reprints of
WG articles, e-mail





For more information, see Page 102.



Oilseed & Grain

Trade Summit

ne of the salient points made at this years Oilseed &

Grain Trade Summit in Minneapolis, Minnesota, U.S.
is that having the vast majority of soybean production
come from two regions makes the worlds biggest consumer
of soybeans nervous.
The lions share of world soybean exports come from the
U.S. and South America, so when there are weather issues in
either of those regions to go along with the ongoing struggle
to transport soybeans efficiently in South America, soybean
prices can soar, which is bad news for China, the worlds largest soybean importer.
Speaking to the nearly 700 people assembled for the
conference, held Oct. 21-23 at the Minneapolis Convention
Center, Thomas Mielke, editor of Oil World, noted that
China has invested in infrastructure improvements in South
America in hopes of reducing the price of soybeans over the
long run.
Brazil and Argentina have huge logistical challenges,
Mielke said. They have big crops on paper but they cant get
them to the consumer. Thats one of the reason soybean prices
are so high. It puts a lot of pressure on U.S. supplies.
And with standard of living continuing to rise in China,
meaning more meat consumption, demand for soybeans in the
worlds most populous country is going to keep growing for
the foreseeable future.
He said Chinese oilseed imports are projected to increase by
8 to 9 million tonnes in 2013-14. They are buying to hedge
against weather-related supply issues, Mielke said.
Another topic of interest at the Summit, which attracted
traders and importers from countries such as the U.S., China,
Brazil, Singapore, Turkey, Pakistan, was the monumental task
of doubling the food supply to feed the projected world population of over 9 billion by 2050.
Philippe de Laprouse, managing director of HighQuest
Partners, said three main challenges must be overcome to suc68

by arvin donley

china making logistical investments

in South america in hopes of
bringing down soybean prices
in the long term
ceed in boosting production to adequate levels in the next 35
years. They are:
Growing urbanization of the global population, which is
putting pressure on available arable land for crop production
and increasing reliance on processed foods.
Fast-growing middle classes in developing markets,
which are shifting from grain to protein-based diets.
Constraints on the supply of crops due to competition for
water with other uses, climate change and a slowdown in yield
increases of major crops.
Mielke echoed these concerns over the challenges of being
able to meet future demand for food crops, noting that agricultural land has become a limiting factor worldwide with land
values having more than doubled within the past six years.
While underlying market demand for oilseeds and meals
is strong in the near term, we need to focus more on higher
yields and global solutions to the volume and logistics problems the industry is facing, he said.
Supply chain trendS
Representatives from three of the worlds biggest agribusiness companies discussed trends in the global oilseed and
grain supply chain.
Matt Jansen, president of Archer Daniels Midland Co.s
December 2013 / World Grain /

For more information, see Page 102.

FEATURE: oilseed & Grain trade summit

CHS CEO Carl Casale was the keynote speaker at the 8th Annual Oilseed & Grain Trade Summit Oct.
21-23 in Minneapolis, Minnesota, U.S. Photos by John McCalley.

(ADM) oilseed processing business

unit, said one trend to keep an eye on
is the growing disconnect from where
crops are being grown and where they
are being consumed.
Theres going to be about 1.4 billion more mouths to feed in 2030, and
where is that growth going to be coming from? Jansen asked. Growth in
the U.S. will be about 4% and Europes
population growth is projected at zero
percent, but population is forecast to
grow 40% in Africa and 54% in Asia.
Thats where the demand is.
Then you look at where the supply and arable land is, that availability is largely in North America, South
America and parts of Europe, so were
seeing a growing disconnect between
where crops are produced and where
theyre going to be consumed.
In addition to having more mouths to
feed, the next 40 years will be marked by
rising incomes in developing countries,
which means people will be eating more
meat and demand for soybean meal to
feed cattle, hogs and poultry will increase.
Jansen also sees greater demand de70

veloping for value-added types of investments such as soy protein concentrates and isolates.
Warren Feather, Cargill vice-president/merchandising manager, Grain and
Oilseed Supply Chain, North America,
listed a number of market responses to
supply trend changes that he has witnessed in recent years.
The first is Chinas insatiable appetite
for soybeans, which has led to a significant change in trade flow.
China is pulling on world soybean
production and crushing those raw materials in China, he said. You look at
this year alone and exports of soybeans
will be almost twice as much as what we
crush here in the United States.
Other trends noted by Feather were:
soybean basis appreciation within
the year, particularly post harvest;
a shift in soy meal demand from
South America to North America
sources due to logistics problems in
South America;
lower usage of soybean meal in the
U.S. as demand as increased for DDGS
and canola meal; and

less soybean oil going to food and

more it being used to produce biodiesel.
Karl Skold, director of economic research at Bunge, said one trend that is
starting to develop is less U.S. dominance in corn production and exports as
domestic demand for ethanol flattens out.
We are seeing corn production shift
to different places throughout the world,
Skold said. About 67 million harvested
acres have been added throughout the
world in the last 10 years and the share
of exports has dramatically changed on
the corn side. All of a sudden Ukraine,
Russia and Brazil are growing more
corn, and its changed the corn flow.
Skold said he believes going forward
the battle for acreage between corn and
soybeans, which had been dominated
by corn in recent years, will become
more intense.
As of right now were starting to
see a shift back to more normalizations
where soybeans and corn are fighting
for these acres, he said.
Keynote speaKer
The keynote address was delivered by
Carl Casale, chief executive officer of
Inner Grove Heights, Minnesota-based
CHS, the nations leading agricultural
cooperative and a Fortune 100 company which in 2012 posted earnings of
$1.26 billion on more than $40 billion
in revenue.
In his speech, Staying Relevant in
a Rapidly Changing World, Casale
talked about decisions CHS has made
to remain relevant to its owners, which
are farmers, ranchers and cooperatives
across the U.S.
Our goal when we wake up every
day is to ask ourselves how we can
help our owners grow, Casale said.
Our growth comes through our owners. The more we can help them grow,
the more profitable we are, the more
money they make, and the more money we have for investment to grow.
He said being relevant often means
being less independent and a smaller
player in a large but successful partnership. He said these types of partnerships

December 2013 / World Grain /

FEATURE: oilseed & Grain trade summit

help CHS spread risk and conserve

more capital.
An example of this, he said, was
CHS decision to earlier this year enter a
joint venture with Cargill and ConAgra
to form Ardent Mills, which will eventually become by far the largest flour
miller in the U.S. CHS previously had
25% ownership of Horizon Milling,
while Cargill owned 75% of that enterprise. In Ardent Mills, CHS will have
12% ownership.
Why did we do that? There are several reasons, Casale said. The economic conclusion we came to was that
we would create more economic value
for our owners having a lower ownership percentage of a much larger asset
than we could having a higher percentage of a smaller asset. We could be
independent in the flour milling business, but we could also not be relevant.
Sometimes you have to swallow your
pride in order to be relevant.
Casale said CHS has also become
more relevant by expanding from what
had been primarily a domestic-oriented
company to one with an impressive
global footprint. CHS markets its products to 65 countries around the world
and has employees in 24 countries.
We have increasingly become a
global company because our customers demand it, he said. To be seen as
a Tier 1 supplier of grain to the global
market, you have to be in the market
365 days per year.
He said theres no greater example of
that than what happened in 2012 when
drought severely limited corn and soybean production in the U.S. Because it
has diversified its origination base to
include countries such as Australia and
Canada as well as the Black Sea region
and Latin America, CHS was able to
meet the needs of its customers.
As part of its global strategy, CHS in
recent years has opened up trading offices in locations such as Singapore, South
Korea, Canada, Paraguay and Uruguay.
He said the industrial tourism approach
is rarely successful in foreign markets.
You are not seen as credible when

Archer Daniels Midland Co. was among the nearly 80 exhibitors at the expo that was part of the Oilseed & Grain Trade Summit.

you slip in and slip out, he said. You

have got to be committed to the market,
you have got to be there every day, and
you have to be able to generate local
market intelligence in order to be seen

ing are a bit overblown and that Chinese

demand for grains and oilseeds will continue to grow at a healthy rate for the
foreseeable future.
They talk about China building sky-

We could be independent in the flour milling business, but we

could also not be relevant. Sometimes you have to swallow your
pride in order to be relevant.
Carl Casale, chief executive officer, CHS
as a credible partner in those markets.
CHS is in the process of expanding
its origination capacity in a number of
foreign markets. He said the company
is either building new port facilities or
expanding existing ones in places such
as Brazil, Romania, Ukraine and China.
Like most speakers at the Summit,
Casale touched upon China and its remarkable impact on the global grain
and oilseed markets. He believes recent
reports about Chinas economy weaken- / World Grain / December 2013

scrapers nobody is going to live in and

shopping malls nobody is going to shop
in, but its easy to overthink this, he
said. What they dont want is a bunch
of hungry people standing on the street
corner. Thats not good for the Chinese
government. They want them working
and they want them fed.
They have several trillion dollars
of foreign reserves that theyre sitting
on now for cash, and they can do this
about as long as they want. If we were

FEATURE: oilSeed & grain trade Summit

selling Ferraris or Gucci purses, Id be

concerned. But chicken nuggets always
trump Gucci purses in China so I think
theyre going to be strong consumers of
food for the foreseeable future.
Casale predicted that there will be
more volatility and risk in global grain
markets going forward as more production will be required from non-traditional sources.
If U.S. market share has peaked,
which I believe it has, particularly in
corn, were going to have a lot more
grain grown in exotic places that are
prone to political whims and weather
problems, he said. So by definition
this is going to lead to more volatility in
global markets. Thats why we believe
risk management tools will become increasingly valuable.
Philippe de Laprouse, managing director of Highquest Partners, LLC, opened the event by discussing
the challenges global agriculture faces in meeting its production goals over the next 35 years.

We want to hear from you Send comments and

inquiries to For reprints of
WG articles, e-mail

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December 2013 / World Grain /





The Worlds Largest Annual Poultry,

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January 28 - 30, 2014


For more information, see Page 102.


MEA review

hat better place than the heart of a Mediterranean

grain growing and trading empire of 2,500 years
ago for the return of the IAOM Mideast and Africa
District Conference to North Africa. The seaside city of
Sousse, Tunisia, in a region that was once a breadbasket of
ancient Carthage, served as the venue for this years event, the
Districts 24th annual meeting, held Nov. 5-8.
A diverse range of speakers on management, technical and
grain market topics as well as over 100 exhibitors in the trade
show helped to draw over 600 full conference registrants from
around 50 countries, not to mention a couple hundred others
who made day visits.
Ridha Saidi, Tunisias minister of economy, opened the
conference on behalf of the countrys prime minister with
a speech describing the potential of the land of the new
Tunisia since the revolution of two years ago. The grain
sector is a strategic one, he declared, with annual per capita wheat consumption exceeding 200 kg.
The state Cereals Board plays a key role but there is a need
Ridha Saidi, Tunisia Minister of Economy, opened the conference and
welcomed attendees on behalf of the countrys prime minister.

by David McKee

Meeting, held in Tunisia for first time,

attracts more than 600 attendees
to fix the system, to improve the collection and storage of
domestic grains, and to embrace dialogue with exporters of
wheat-based foods to improve quality of products and diversify.
Mr. Karmel Belkhiria, president of La Rose Blanche Group,
the largest Tunisian miller and pasta producer, which acted as
host and local organizer, welcomed the participants as well.
Belkhirias post-conference remarks revealed satisfaction
with the outcome.
Holding the IAOM Conference in Tunisia for the first time
ever was an economic event of great importance, he said.
It has permitted the participants to learn about Tunisias economic potential and opportunities for investment in agriculture and industry. It has also demonstrated the possibilities
December 2013 / World Grain /

For more information, see Page 102.

FEATURE: iaom mea review

offered by Tunisias strategic location

in the heart of the Mediterranean for
establishing commercial relations and
economic partnerships between Europe,
Africa, the Maghreb countries and the
Middle East.
Substantiating these words, there was
an unprecedented level of participation
at the annual conference not just from
Tunisia, but also from milling companies in neighboring Libya and Algeria.
In his conference opening remarks,
MEA District Director Merzad Jamshidi
stated the District Leadership Council
will make a concerted effort for a
stronger presence in Africa given its divergence and growth. He also noted,
We must keep the conference attractive
by modifying its substance.
One innovation this year, he said, was
a business-to-business meeting scheduler via the website that would eliminate
the need for distributing a participants

IAOM MEA staff, from left: Faisal Basheer, Sandeep DSouza, Sheena Astete, Kulthoom Al Touqi,
Valentina Jeyanayagam and Meriem Karoui.

lists. High profile keynote speakers

were added to the mid-point of each
days session.
Trading SeSSion
Annual imports by the countries of
the Middle East and Africa account for

around 45 million tonnes or about onethird of international trade in wheat. Thus,

the regions millers eagerly anticipate the
presentations of specialists from the leading grain exporting nations about the current crop and changes in wheat markets.
(Continued on page 82)

For more information, see Page 102.


December 2013 / World Grain /

FEATURE: iaom mea review

Nicolas Dechamps of Vigan Engineering visits with Akasha Eltaeif of

Gena Flour Mills and Ahmed Abulgasim of Seen Flour Mills.

From left: Tobias Diener, Agromatic, and Daniela Rieder, Laurent Brehm,
and Joe Klingler of Sefar with Melinda Farris, IAOM.

Enjoying the opening reception are from left: Suzan Kizilok, Bastak Food
Machine Co.; Ali Goktas, Yenar; Gnter Haubelt, Haulbelt; Hikmet Yegin,
Yenar; and Tarek Badran, Selis.

Ray Vrtiska, left, Intersystems, visits with Tomas Kisslinger, Neuero

Industrietechnik, during the opening reception.

Representing Taban Flour Mills are from left: Amirali Yazdjerdi, Hossein
Yazdjerdi and Alireza Yazdjerdi.

Babiker Abd Elmoniem Mohammed, left, of Flour Mills Factories Co. visits
the Behlen booth and talks with Kirk Nelson. / World Grain / December 2013


FEATURE: iaom mea review

Kassem Nameh, Satake, greets Abdellatif Sbaa, director general,

La Rose Blanche (Minoteries des Centre et Sahel Reunies) to the booth.

From left, Muehlenchemie representatives Lennart Kutschinski and Laurent

Gurindon visit with Kiyemba Moses Seruwo of Prime Merchantiles

From left, Mohmoud Abharian, Bozorgmehran Co. visits with

David Balaguer and Eliseo Sempere of Fundiciones Balaguer.

Representing Symaga at the expo are Hicham El Kasri Gritli, left, and
Alfonso Garrido.

Demonstrating a new piece of equipment at the expo are IMAS

representatives, from left, Hasan Tosun and Abdallah Ghandoura.

Representing Genc Degirmen, from left, Arif Turan, Belkacem Bouhicha,

Immahan Sahbaz.


December 2013 / World Grain /

FEATURE: iaom mea review

Ricardo Pereira of Sangati Berga, center, meets with a group of millers at

the expo.

Paolo Carrain, Mill Service, has a discussion with John Brown,

JCB Consulting Ltd.

From left, Byron Smith, Maxilift; Don Delgado, Lambton Conveyor;

Mohamed Ellawaty, Amiral; and Christian Jordan, Lambton Conveyor.

Tapco representative Yassine Abbad, Tapco Inc., center, and Muzaffer

Arslan, Altinbilek Makina (right) meet with a miller during the expo.

Garip Cantemir, right, of Ugur Makine demonstrates a roller mill to a

group of millers.

Thierry Edmond, left, of Prive visits with Abderrahim Jilali Dadas,

Grain Process Systems. / World Grain / December 2013


FEATURE: iaom mea review

Daewon GSI representatives Hyun Min Jo, left, and Mi-Sook Suk.

Demonstrating several pieces of equipment at the expo are OMAS

representatives Pietro Barbalarga, left, and Orazio Gobbo.

Representing Selis are, from left, Temel Harmankaya, Pervin Kunduraci,

Ismail Kunduraci, Hulya Baykal, and Mehmet Karaca.

John Crawford, left, Global Industries, poses for a photo with

Sebastien Remlinger, Chopin Technologies.

From left: Christian Lemaire, Bhler Group; Essa Abdulla Al Ghurair,

Al Ghurair Resources; and Walter Bruggmann, Bhler AG.

Moumene El Ghali, left, meets with Sergio Antolini, Ocrim.


December 2013 / World Grain /

FEATURE: iaom mea review

Visiting the Alapala booth are, from left: Babiker Abd Elmoniem
Mohammed of Flour Mills Factories Co.; Gorkem Alapala, Alapala
Machine Industry and Trade; and Mohamed Basheri, Atbara Flour Mills.

Representing Kepler Weber at the expo are, from left, Ismael Rodrigo
Schneider, Najib Hamdoun, Tadeu Franco Vino and
Antonio Carlos de Campos.

Vincenzo Furceri, left, CMFV, and Francesco Piacentini,

Golfetto Sangati, visit during the expo.

Juan Luis de la Cruz Baena and Salem Souki of Silos Cordoba take a
moment to pose for a photo in between visitors to the booth.

From left, Peter Tatlow and Paolo Biagini of FRAME visit with Labid Saad
and Marwan Alabsi of Yemen Company for Flour Mills and Silos.

From left, Heiko Jopke and Klaus Velten of Bhler visit with Abdullah
Ababtain, Grain Silos & Flour Mills Organization. / World Grain / December 2013


FEATURE: iaom mea review

(Continued from page 76)

This years prognosis from the main
exporting regions was mostly positive,
particularly for Canada and Australia
where resurgent wheat crops of 28
million tonnes and 26 million tonnes
were predicted with exports likely in
the range of 21 million and 19 million
tonnes, respectively. However, both
Jean-Benoit Gauthier, director of trading and sales, Canadian Wheat Board,
and Chris Whitwell, international sales
and marketing director, GrainCorp, also
warned the wheat importers in the room
that logistical capacity to get the abundant harvest to ports and onto vessels is
limited by rail car shortages and availability of port elevator space.
They advised to buy early and book
shipments at least 60 to 90 days in advance. In early November, port slots
available were for shipments in late
March and April from most Australian
ports where there is also competition
from outgoing barley and canola.
Colin Tutt, global supply chain
manager, CBH Group, described
the unique approach introduced in
Australia for rationing port grain
shipment slots by means of an auction system. Though CBH Group and
GrainCorp own most of the grain terminals, competition rules require they
make this capacity available to all private sector bulk wheat exporters, of
which there are now over 20 officially
registered since deregulation.
Vincent Peterson, vice-president
of overseas operations, U.S. Wheat
Associates, described the long-term
secular shift in sales of U.S. origin wheat
away from Middle East and European
markets to a greater dependence on the
nations of Latin America and the Pacific
Rim for total exports that will be an estimated 30 million tonnes this year.
As recently as the early 1990s, over
25% of American wheat exports went to
the Middle East and North Africa in an
average year, but the regions share has
declined to an average of less than 15%
and to only 10% in most years. Were it
not for severe Black Sea shortfalls and

export embargos, the decline would

have been more rapid.
Technical and
WhaTs neW sessions
Peter Lloyd, regional technical director
of U.S. Wheat Associates, presented the
Solvent Retention Capacity (SRC) test
as a simple method for determining flour
functionality that is gaining increasing
acceptance. The test defines the ability
of flour to absorb water in mixing and release during baking, noted Lloyd, adding that previously we needed a whole
barrage of tests to get flour functionality.
Many mills in the MEA region are
moving up the value chain by increasing
their investments in pasta and noodle production. Lutz Popper, head of research
and development at Germany-based
Muehlenchemie, demonstrated how
certain enzymes could be used to make
possible production of high quality pasta
without using expensive durum wheat,
saving up to $80 per tonne on wheat costs
under current market conditions.
Citing an FAO study revealing 25%
of world wheat flour is contaminated
by aflatoxins, Pietro Barbalargo, commercial director of Italy-based Omas,
showed that better wheat cleaning technology can reduce mycotoxin levels at
the outset of the milling process.
Keynote speaker Lamine Lahousiana,
head of packaged food research at
Euromonitor International, described a
reduction in global levels of per capita
bread consumption since 1993 that has
accelerated since 2010 due to a global
dietary shift to proteins and non-refined
carbohydrates. Bread is the number
one eaten food in retail volumes, but its
popularity is declining, he concluded.
Measurement of iron compounds
used for flour enrichment was the topic
addressed by Quentin Johnson, coordinator, training and technical support
group, Flour Fortification Initiative.
Highly soluble NaFeEDTA is now the
iron compound most recommended for
corn meal and high extraction wheat
flour since high phytate levels inhibit
iron absorption. BioAnalyts iCheck de-

vice is gaining acceptance as a simple

low-cost way to measure this type of
iron in flour, he observed.
Ten companies were allotted 10 minutes each in the Whats New Session.
Bhler Product Manager Marcel
Ramseyer took the wraps off the companys innovative atta flour milling process. With 1 billion consumers of traditionally stone ground atta flour in South
Asia, the market potential is huge
conference exhibiTion
Conference exhibitors covered the
gamut from major commodities trading organizations to suppliers of storage
and milling equipment to bagging and
packaging equipment to laboratory instruments. Suppliers from 22 countries,
ranging from Brazil to Korea, had booth
space, with nearby Italy narrowly edging Turkey as the country with the largest trade show representation consisting
of 17 companies.
About 20 manufacturers of wheat milling equipment and an equal number of
suppliers of grain storage and handling
systems constituted the core exhibitor
groups. A dozen companies offering flour
treatment products as well as vitamin and
mineral premixes also set up shop representing at least seven countries.
Nearly all grain trading companies of
global reach exhibited, provided speakers or sent participants.
Most exhibitors seemed more than
satisfied with the results.
Mark Wild, sales manager of
Germany-based Fawema GmbH, a
packaging equipment manufacturer
that has a long history exhibiting at the
IAOM, described an evolution in customer attitudes.
This week has confirmed something I
have seen over the last few years. Buyers
are now looking for quality over price,
he observed. Six or seven years ago
people asked price first. Now they ask
about performance and reliability. That
bodes well for companies like ours.
This was our very first time, and we
are very pleased with the organization,
commented Giuseppe Beani, president

December 2013 / World Grain /

FEATURE: iaom mea revieW

of Italpast, an Italian manufacturer of

pasta extrusion machines. We got good
contacts from the Middle East as well
as seeing our local customers in North
Africa. We hope to double our business
in special and traditional shapes.
Navneet Jindal, managing director, Kay
Jay Rolls, India, said that this was his
companys fifth or sixth IAOM, but added, North Africa is a market that we have
not done earlier. We now have contacts in
the region and we will try to work it out.
ManageMent SeSSion
Mind-expanding speeches in the
Management Session moderated by
Martin Schlauri, managing director of
Bhlers grain milling business unit,
challenged listeners on several fronts
including social media, leadership in
emerging markets, the impact of disruptive technologies on 21st century business models and the green economy.

former Unilever Africa Director Frank
Braekens presentation, Unlocking
the Potential of Africa. He spoke of
the risk of exuberant expectations in
investing in Africa. Money has been
pouring in, and there are fewer situations that offer first mover advantages
and monopoly rent. Talent and leadership is still an issue and it is a struggle
to build organizational capability.
Touching on the same theme, Dr.
Hischam El-Agamy, executive director, IMD Switzerland, pointed out there
are only 90 business schools in Africa,
of which just 10 are certified. In India
there are 1,000 business schools for the
same population, he said.
SuMMing up
A handful of participants have attended
since the first IAOM MEA Conference
24 years ago, but a new generation of

participants was also in evidence.

Namrata Bovrat of Aeon International
Private Ltd., a Mumbai, India-based
commodities trader, said, Because it
was my first time, I met so many people
from different countries. We are new in
this industry and we got a quick glance at
Africa and the Middle East, our target.
With growth in agribusiness and investment in milling booming in much
of sub-Saharan Africa, the future seems
to bode well for upcoming conferences,
given the MEA Districts commitment to
a renewed focus on the continent.
David McKee is a grain industry specialist whose
consultancy, Key International LLC, provides
market research and analysis, feasibility studies
and project planning services to companies
and organizations. He can be reached at
We want to hear from you Send comments and
inquiries to For reprints of
WG articles, e-mail

For more information, see Page 102. / World Grain / December 2013



Stored grain
compaction factor
Accurate factors are necessary
because volume measurements will
not give an exact measure of grain
by Rumela Bhadra

It is well known that grain undergoes compression when

subjected to cumulative weight exerted from the overlying
material in a storage unit. The extent of compression depends
on several factors associated with the stored materials (crop
type, test weight, moisture content) and bin characteristics
(type of bin wall material, size and geometry of the grain bin).
Compression of grain leads to packing and thus adjusts the
bulk density of the material. Therefore, accurate compaction
factors are necessary, because volume measurements of the
stored grain alone will not allow us to determine the exact
amount of grain in the bin.
compAction histoRy
One of the earliest compaction factor data collections in the
U.S. was performed by the U.S. Department of Agriculture
(USDA)-United States Warehouse Examiners group. The
current U.S. Warehouse Licensing and Examination Division
deals with issuing licenses to elevators and records bin inventory and storage data.
The USDA-FSA warehouse examiners use a handbook,
known as Warehouse Examiners Handbook Grain Pack Data
WS-3, Exhibit 9 for determining grain compaction factors.
This book presents a detailed method for determining compaction factors for grain bins based on bin shape (round or
interstice concrete bins) and average test weight of the grain
bin. The exact publication date of this book is not known, but
it appears that it was published in the 1950s.
According to the original documentation and communication letters that led to the development of the handbook, approximately 95 bins were analyzed to measure compaction
factors. These bins were primarily located in Kansas, Texas
and Oklahoma. Most of the bins (95%) were constructed out
of concrete although a few of them were wooden warehouses.
Clearly the latter storage structures were very outdated as per
modern industry design.

Some of this field data dates back to 1939. The bins had an
average diameter of 18 feet. USDA-FSA warehouse examiners closely followed the procedure outlined in the handbook
to collect this initial field data. In order to meet the needs
of the modern grain industry (increased bin size, varying
shapes and grain capacity), the Federal Warehouse group
has made slight adjustments over the years, but its primary
compaction factor data remains unchanged. However, many
of these updates are not widely known among researchers
and grain industry stakeholders.
Grain producing states in the U.S. all have their own state
agricultural warehouse control officials that license elevators similar to the USDA-FSA warehouse examiners and
use compaction factor tables from Warehouse Examiners
Handbook. And, it is believed that their procedure is very
similar to that of the USDA-FSA warehouse examiners for
most of the crops.
The USDA-Risk Management Agency (RMA) is associated with operating and managing crop insurance programs
through the Federal Crop Insurance Corporation (FCIC).
RMA through FCIC develops and approves insurance preGrain compaction
Depth is reduced as
grain compacts from
overbearing pressure.
the bulk density of
grain below increases

December 2013 / World Grain /

For more information, see Page 102.








% Packing



Bin diameter (m)

mium rates and regulates subsidies for

American farmers and ranchers. Hence,
USDA-RMA also needs accurate compaction factors for grain inventory measurements. USDA-RMA and County
USDA-Farm Service Agency (FSA
county offices) used two different sets
of compaction factor databases based





on empirical approaches to estimate the

amount of grain in bins.
Around 2005, USDA-RMA started
using FSA county offices compaction
factor database based on capacity (bushel per foot) and test weights, but these
values are much different than compaction factors listed in Warehouse Exam-

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iners Handbook Grain Pack Data WS3, Exhibit 9. However, the source of
these compaction factors is not known.

Grain height (ft)

Grain height (m)


Bin diameter (ft)


AcAdemic studies
Studies related to compaction factors have been done in academia. These
studies often use a scientific-based approach rather than just empirical data.
The most widely recognized early study
on grain compaction and correlating
it with a granular science models was
found in a published paper by H.A.
Janssen in 1885.
Janssen derived the pressure caused
by a column of corn in a bin. Based on
a given height of corn, Janssen could
determine the bottom pressure in the
column. Even though his experiments
were done in a square profile chamber,
the pressure results were considered
equivalent to grain contained in a circular structure with the same equivalent
area to that of the square profile.
He also postulated that arching within the grain systems prevented measuring bottom pressures at various points.
Since 1978, Janssens research work
has been cited 375 times, according to
Matthias Sperl (2006). Janssen derived
the grain compaction model based on
forces surrounding a differential element of grain inside the bin. The basic differential equation of Janssen is
given as:

= gD


Dy is the grain height, D is the bulk

density or test weight of the stored material, P is the overbearing pressure, g
is gravitational constant, is the coefficient of friction of grain on bin wall, R is
the hydraulic radius of the structure (hydraulic radius = bin area/bin diameter)
and k is a lateral to vertical pressure coefficient (varies with storage structure).
The solution by Janssen assumed ,
k and D to be constant. Because of this
assumption, the above model is not accurate in large grain storage bins where
the density of the stored material changes with a change in grain depth.

For more information, see Page 102.


December 2013 / World Grain /


In order to develop and test this model

for grain bins, a research group from the
University of Kentucky (Ross et al.) in
1979 published a paper modeling the
effect of pressure and moisture content
on D, k and . Also, they showed how
change in bin diameter can be related to
bulk density changes.
Soon after, subsequent studies by S.A.
Thompson and his group (in the 1980s
and 1990s) led to the development
of a user friendly program known as
WPACKING that could generate much
more reliable packing factors for varying bin sizes and shapes, bin material,
crops types, moisture and test weights.
This WPACKING model used a more
accurate revision of Janssens equation
and verified the model using laboratory data for HRW wheat, corn, soybeans and sorghum and a small amount
of field data from commercial storage
bins. The science and procedures behind WPACKING is readily available
through journal publications, unlike the
empirical-based compaction factor data
used by government agencies.
The WPACKING could predict the
compacted test weight of the grain,
packing factor of the grain for any bin
shape and size, and finally the amount
of grain in the bin. Eventually, this

method and, hence, the WPACKING

model was published by the American
Society of Agricultural and Biological
Engineers (ASABE) Standards in 1992
and later on it was again revised and
reclassified as Engineering Practice in
2010 by ASABE.
Developing new factors
Recently, there has been some mistrust
and confusion around the existing packing factor data used by government agencies like USDA-RMA and the Federal
Warehouse examination group. It was
desired by some stakeholders in the grain
industry to develop more accurate packing factor data for inventory control.
An article by Malm and Backer related to compaction factor in 1985 stated
that compaction factors used by government agencies are not adequate for the
grain industry and stated that compaction factors used by the Federal Crop Insurance Corporation (FCIC) at USDARMA appear to over-predict storage
mass of grain bins.
This article stated the mistrust that
was prevalent regarding FCIC compaction factor data. In 2001, the Association
of American Warehouse Control Officials (AAWCO) approached researchers
at the Quality Grains Research Consor-

tium (NC-213 Marketing and Delivery

of Quality Cereals and Oilseeds) annual
conference about developing new packing factor data that would be more reliable with modern grain bin designs. NC213 is a consortium formed by multiple
universities and USDA-ARS research
laboratories. AAWCO is now renamed
AGRO (Association of Grain Regulatory Officials). Also, from 1994 to 2005
USDA-RMA did not use any pack factor database as they felt the existing
pack factors were not accurate enough.
Finally, in 2009 USDA-RMA began
a partnership with USDA-ARS at Manhattan, Kansas, U.S., funded through
an interagency agreement, to carry out
a large-scale packing factor project for
six major crops (wheat, corn, soybean,
sorghum, oats, and barley) in the U.S.
USDA-ARS is collaborating with
Kansas State University, the University
of Georgia, and the University of Kentucky to deliver this work. This project
will be based on the scientific work
and model development of Ross and
Thompsons research group and thus
will improve the WPACKING program
to fit the current industry standards.
The scale and scope of this project is
larger than previous packing factor studies. Crop samples are taken from the en-

For more information, see Page 102. / World Grain / December 2013



tire U.S. and include multiple varieties

and regional composites. The WPACKING program will be refined with
new data simulating varying bin sizes,
shapes, material and bin wall types. Additionally, the program will be updated
to grain quality factors such as moisture,
test weight, dockage, damage, foreign
material, and broken kernels.
Unlike empirical methods of determining packing factor, mostly used by
governmental agencies, the WPACKING model uses detailed laboratory
compressibility measurements for all
included grain types. Thus, WPACKING model calibration and validation
requires a manageable amount of field
data from storage bins representing the
range of sizes and types in use.
Measurement of a few hundred bins
is currently being conducted to validate and calibrate the WPACKING
model. Using a science-based approach in the WPACKING program
will help avoid excessive cost of obtaining massive amounts of commercial bin data and at the same time will
provide more accurate and reliable
predictions of the mass of grain in the
bin. It is hoped that this model will
generate confidence intervals for the
prediction of grain compaction and in-

88 WG 2013.indd

ventorying of grain that has not previously been available.

Quality management is becoming
extremely important to the grain industry, both in domestic and international
markets. It requires careful and accurate documentation of the amount of
grain stored in bins, and this can only
be achieved if there are reliable and accurate compaction factors. Climatic uncertainties also beg for more accurate
inventory control. Abnormal climatic
situations like drought will alter the test
weight and other quality parameters of
grain kernels. This variable in grain
quality will yield different packing scenarios than those normally observed.
Hence, reliable and accurate compaction factors are necessary to estimate
the exact amount of grain in the bin.
Inventory control (which is the ability to measure accurately the amount
of grain in a bin at any given time) is
extremely crucial for insurance agencies, auditors, elevator managers and
farmers. It is needed for various financial and operational purposes. Thus,
again we see reliable compaction factors are needed to predict the exact
amount of grain in storage bins based

For more information, see Page 102.


on volume measurements.
The compaction factor project undertaken by USDA-ARS and its collaborators will be able to provide reliable, updated information to the modern grain
industry and user-friendly software for
predicting compaction factors and, hence,
the amount of grain in any storage unit. It
is the hope of researchers that this software will find greater acceptance among
the grain industry, governmental agencies
and elevator managers, and also that it
will be considered the tool for performing grain inventories. Getting a single uniform compaction factor database, i.e., the
WPACKING program, is the long-term
vision of this research group.
rumela Bhadra, ph.D, is a research associate
at Kansas state University (KsU), working in
collaboration with Dr. Mark e. Casada (U.s.
Department of agriculture-agriculture research
service, Manhattan, Kansas, U.s.) on grain
compaction factor project funded by UsDarMa, since 2011. other collaborators include Dr.
Josephine M. Boac and Dr. ronaldo G. Maghirang
(KsU), sidney a. thompson (University of Georgia),
samuel G. Mc.neil and Michael D. Montross
(University of Kentucky). Bhadra can be reached at
We want to hear from you Send comments and
inquiries to For reprints of
WG articles, e-mail

December 2013 / World Grain /

09/10/12 11:39


Grain Elevator and Processing Society

February 22-25, 2014

CenturyLink Center Omaha
Omaha, Nebraska, USA



The Industrys Largest

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For details on attending and exhibiting: visit
Or contact; (952) 928-4640
The Knowledge Resource for the World of Grain Handling Industry Operations
For more information, see Page 102.


Meeting quality

n general, wheat mills use selected wheat crops to produce

a range of our types of specied quality for the baking
and pasta industries.
Flour sales representatives are trying to meet the purchase
requests of their customers regarding consistent product quality, accommodating all kinds of packing sizes from household
to bulk, as well as taking into consideration just-in-time delivery and, of course, the best possible cost/performance ratio.
The denition of our quality differs in the understanding of the our producer (miller) and of the food company
producing elaborated products based on our (e.g. the industrial bakery).
The miller, on one hand, puts all his efforts like selection
of appropriate wheat varieties and their origin in the wheat
blends of his choice. He is interested in a highly sophisticated
cleaning process of the wheat and an adapted milling process
using the best available milling equipment. And most of the
time, when the business is running smoothly, the our mill is
delivering to the customers a very limited range of our types
showing a fairly consistent performance. Occasionally, there
may be a difference of quality in the raw materials caused
by new harvest or the sourcing of new crops which the
miller has learned to handle without major problems.
Purchasing managers or production managers of industrial
food companies, on the other hand, do not place the same priority on wheat our as millers do. The milled products only
form a small part of their business. Although these products
may constitute a large quantity, they do not represent a large

by Peter Bhni

Communication is crucial between

flour mill and industrial customers
part of the value. The food companies use the very limited
number of our products to produce a wide range of highly
specic baked goods, pasta and other our-based products.
Production managers expect their raw materials (in this
case wheat our) to fulll the requirements of their production
processes and to achieve the desired characteristics of their
nished products, but often without telling their our suppliers about these specic quality requirements. In addition, the
standard our specications on the basis of which our
is purchased mainly comprise such parameters as humidity, ash and protein content. However, these data do not really
give an indication of the right our functionality for the customers purposes.
At the end of the day a convincing product quality will result from choosing the right solution for a specic application in a consistent and reliable process. But how can a mill
achieve this target?
As mentioned above, a miller may avoid risks by cleaning the raw material from collateral material and spoiled
kernels, or use an impact mill to inactivate the precursors
December 2013 / World Grain /

8 10 April 2014 . Bangkok International Trade & Exhibition Centre (BITEC), Bangkok, Thailand

Asias largest exhibitions

and conferences for
animal feeds, rice & flour
milling and grain processing

FIAAP Asia 2014 is the only dedicated trade show and conference organised specifically for feed ingredients,
additives and formulation within the dynamic and growing regions of South and South East Asia.
VICTAM Asia 2014 is the largest trade show within South and South East Asia for displaying the latest
equipment and technology used in the production of animal feeds, aquafeeds and dry petfoods.
GRAPAS Asia 2014 is the only dedicated trade show and conference organised specifically for rice & flour
milling, grain storage, preservation & processing, noodle, breakfast cereal and extruded snack production
For more information, see Page 102.
within the dynamic and growing regions of South & South East Asia.
Specialist conferences
All the exhibitions will be supported
by their own specialist conferences
which will include:
The FIAAP Conference 2014
Petfood Forum Asia 2014
Aquafeed Horizons Asia 2014
The Thai Feed Conference 2014
Biomass Pelleting Asia 2014
The GRAPAS Conference 2014

New for 2014

The first ASEAN Feed Summit
The first ASEAN Rice Summit
Supported by
The Thailand Convention
and Exhibition Bureau
Contact details
For visitor, exhibition and conference information visit:

technical profile: meeting quality parameters

The millers challenge: The production of a daily

consistent flour quality from different wheat
crops. Photo courtesy of Bhler.

of bugs. He can run the mill under hygienic conditions to produce flour with
less than the normal total plate count
of 105 counts/g, which will later be

2. Be consistent in the supply of the

agreed flour quality. A prerequisite of
a long-term, mutually beneficial business relationship between a bakery and
its supplying mill is an agreement on
the designated application and defined
parameters, accurately describing the
functionality of the flour to be supplied.
These parameters are usually measured
by flour analysis using physical and
chemical methods. The most basic characteristics for wheat flour are:
Water content (humidity) no functional impact concerning flour quality.
Ash content describes flour type
according to conventional classes.
Protein content for dough and
baking properties.
But these parameters describe only
a part of the final baking performance
and do not ensure the consistency of
flour functionality. More sophisticated
methods are actually available to de-

destroyed in a heating process. But

in the following we will focus on the
quality parameters a miller may provide regarding the functionality of the
flours supplied to industrial customers.
1. Make sure to supply the right
flour for the intended application.
There is no all-in-one product solution
for all possible applications of flour. A
so-called all-purpose flour will always
be a compromise unable to exactly fit a
specific application. Flour suitable for
wafers will not produce good pasta and
cake flour will not generate good longfermented ciabatta.
A quality-conscious miller will collect
information referring to the characteristics of a customers final products and
its production processes. This will enable him to adapt, for example, the enzyme activity and the gluten properties
of his flour to the specific dough-making
and fermentation process in the bakery.

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for more information, see page 102.

December 2013 / World Grain /

technical ProFile: meeting quality parameterS

fine the quantity and quality of the

crucial constituents of wheat flour.
Useful information is, for example,
gained from the analysis of wet gluten content, the elasticity/viscosity
determination of the wheat protein
part, or enzyme degradation and water uptake referring to the starch and
To avoid problems such as potential
differences of the analytical results from
a customers quality control and from
their own laboratory at the mill, it is important to agree upon the quality parameters as well as the exact methods for
their determination.
In order to react to naturally occurring fluctuations in the wheat crops
functionality, the miller should regularly
discuss with his customer the possibility of maintaining a consistent baking
performance by adding safe functional
ingredients permitted by law.
3. Take your chances in critical
market situations. Millers buying
from the grain spot market experienced
difficult times in the past years and the
future does not look much brighter.
Recurring extreme weather conditions
tend to impact badly on the quantity and
quality of harvested crops. Shortage in
the supply of quality wheat caused a
dramatic price increase of wheat and
other crops.
Thus, millers supplying to industrial
customers (bakeries, pasta producers
and others in the food industry) with
fixed price contracts and fixed quality
requirements faced, and are still facing,
serious problems. Increased raw material costs to sustain agreed flour quality
reduced margins significantly.
Although the customers are aware of
the overall situation in the grain market, they are quite reluctant to accept
the millers reaction of passing on all
increased costs.
But food companies might be willing
to contribute, if innovative mills are able
to communicate that they might be able to
compensate the majority of the referring
price increase by undertaking knowledgebased changes regarding sourcing, pro-

cessing and improving of wheat.

This innovative approach supported
by external know-how might even create some new business advantages.
Great potential to increase existing flour
sales will emerge when the miller is able
to communicate and prove to target customers that he is ahead of competition
either in quality or in price. / World Grain / December 2013

Dr. Peter C. Bhni is managing director,

Nutrition Solutions, for Uzwil, Switzerlandbased Bhler AG. He can be reached at peter.

We want to hear from you Send comments and

inquiries to For reprints of
WG articles, e-mail

For more information, see Page 102.



AGI sees record third-quarter results

WINNIPEG, MANITOBA, CANADA Ag Growth International Inc. (AGI) announced on Nov. 13 record third-quarter net profit
of C$12,718,000, or 95 per share, an increase of 96% from the
C$6,501,000 reported in the same quarter a year ago.
AGI said its record third-quarter results reflect its significant market share in North American portable grain handling, the strength of
its leading commercial grain handling brands and an increasing presence in international markets.
Sales, adjusted EBITDA and net profit per share all increased substantially over the prior period as the company said it benefited from
favorable crop conditions in North America and continued investment in commercial grain handling infrastructure both domestically
and overseas.
International sales surged in the third quarter, increasing 76% compared to the prior year. Based on current conditions in North America
and strong momentum in its international business, management said it
retains a very positive outlook for the balance of 2013 and fiscal 2014.
We are very pleased with our third-quarter results. said Gary
Anderson, president and chief executive officer. The record earnings we reported today not only reflect a return to normal market
conditions but also speak to the hard work that has been going on
behind the scenes while we managed our way through the effects
of the 2012 drought. Operational improvements and the continued
implementation of lean manufacturing contributed to strong margin
performances across all business lines. Our international sales team
continued to build sustainable relationships in growing offshore markets which are expected to benefit the company for years to come.
We retained our focus on customer satisfaction throughout the recent
market challenges and accordingly our business remains well positioned to deliver strong results over the long term.
We expect to report record results in the fourth quarter of 2013 and
it is gratifying that despite the significant headwinds faced in the first
half of the year our adjusted EBITDA for fiscal 2013 should approach
record levels. We remain very enthusiastic with respect to AGIs prospects in 2014 and expect to capitalize on our substantial North American market share in portable and commercial grain handling equipment and to continue growing our business in offshore markets.
AGIs primary demand driver is the volume of grains grown, followed by the magnitude of on-farm storage, commodity prices and
conditions during harvest. The industry environment currently is
suggestive of very high levels of demand as North American farmers
are expected to harvest a record crop, moderating commodity prices
may incentivize producers to store more grain on the farm, resulting

in increased use of handling equipment, and a late harvest in the U.S.

has led to a prolonged in-season sales period, AGI said.
Sales of portable handling equipment have benefited from these
demand drivers and strong on-farm demand is anticipated to continue as the U.S. harvest progresses well into the fourth quarter of 2013.
Management anticipates low levels of inventory throughout the
companys distribution network post-harvest will lead to strong dealer participation in preseason programming, increasing demand later
in the fourth quarter but more significantly in the first half of 2014.
Demand for commercial equipment remains very strong as the
U.S. commercial grain handling infrastructure continues to expand
and focus on efficiencies in response to a long-term trend toward
higher grain production. The companys commercial backlog entering the fourth quarter was its highest on record and the current
backlog and ongoing quoting activity suggests strong commercial
demand will continue into 2014.
International sales surged in the third quarter of 2013 and based on
outstanding orders the company said it expects fourth-quarter international sales to significantly exceed the prior year.
AGIs increasing presence in new markets across the globe has resulted in record levels of quoting activity and a substantial amount of
business committed for 2014. As at Sept. 30, sales plus order backlog
in these recently targeted markets were 65% higher than at the same
time in 2012. Accordingly, management expects international sales
in 2014 to exceed the record levels anticipated to be achieved in the
current year.
On balance, strong North American demand for portable and commercial grain handling equipment and continued strength in offshore
markets is anticipated to drive record results in the fourth quarter of
2013. As a result, adjusted EBITDA for fiscal 2013, despite significant headwinds in the first half related to the 2012 U.S. drought, is
expected to approach record levels.
Management expects to enter 2014 with excellent backlogs both
domestically and overseas and remains very optimistic regarding the
companys prospects for the upcoming year.
Consistent with prior years, demand in 2014, particularly in the
second half, will be influenced by weather patterns, crop conditions,
the timing of harvest and conditions during harvest. Changes in
global macro-economic factors, including the availability of credit in
new markets, also may influence demand, primarily for commercial
grain handling and storage products. Results may also be impacted
by changes in steel and other material input costs and the rate of
exchange between the Canadian and U.S. dollars.

AGI donates $100,000 to GEAPS, KSU

MINNEAPOLIS, MINNESOTA, U.S. The Grain Elevator and
Processing Societys (GEAPS) Foundation announced on Oct. 7 that
Ag Growth International (AGI) has made a $100,000 commitment to
the Foundations Professional Development Programs Endowment
Fund, the largest to date by a grain industry equipment, service or
technology solutions supplier.
It is in everyones best interest to develop trusted, credible and reliable training on operational best practices for our industry. It will encourage the next generation of grain system designers and operators to
seek high quality safe and efficient solutions. We at AGI are very proud

to participate in this very creative and worthwhile initiative, said Gary

Anderson, president and chief executive officer, AGI.
AGIs contribution shows the cooperation and commitment we
see from our grain industry product and service suppliers. By supporting the development of courses for the GEAPS/Kansas State
University (KSU) distance education program, AGI is demonstrating its dedication to the work we do today and how we train the
grain industry operations professionals to safely and sustainably feed
the world in the future, said Mark Fedje, GEAPS Foundation board
chair and terminal elevator maintenance team leader, General Mills.
December 2013 / World Grain /

For more information, see Page 102.


Lambton announces new sales leader

Limited announced recently the appointment of Don Delgado as
director of international sales-central.
Delgados responsibilities include sales and business development in


Europe, the Middle East and Africa. Starting in the grain storage industry
in 1985 with his father in Bolivia, a Brock dealer, Delgado oversaw sales
and installation in this region. Hired directly by Brock, he expanded
sales and installations throughout Latin America for eight years, making
Brock a dominant player in this region, the company said.
After supervising sales and service for grain storage manufacturing
facilities throughout Latin America, Delgado spent the next several
years out of the industry in marketing for a non-profit organization.
Returning to the industry in 2011, Delgado said he is proud to
bring his knowledge and drive to Lambton Conveyor Limited. He is
currently working on his masters of business administration degree
as he expands sales for Lambton.

Brock names global marketing, sales director

MILFORD, INDIANA, U.S. David Dell has been named global
marketing and sales director for Brock Grain Systems.
In his new position, Dell will be responsible for developing and implementing strategic marketing plans, guiding product development and
managing worldwide distribution channels for Brock Grain Systems.
Dell brings 30-plus years of experience in sales and marketing to
his employment with Brock, having held senior-level marketing and
sales positions in the agriculture industry.
He earned his bachelors degree in agricultural mechanization

from Pennsylvania State University in State

College, Pennsylvania, U.S., where he has also
served on the board of directors for the College
of Agriculture and on the university Alumni
Dell grew up on a dairy farm near Martinsburg, Pennsylvania, U.S., and currently resides
in Strasburg, Pennsylvania, U.S. He plans to relocate to the Milford, Indiana, U.S., area.

For more information, see Page 102.



December 2013 / World Grain /


Dorrell joins Intersystems as sales manager

OMAHA, NEBRASKA, U.S. Intersystems
announced on Oct. 14 the addition of Gary
Dorrell as sales manager.
Dorrell will be responsible for marketing the
companys line of bulk material handling equipment to the feed, grain, pet food, ethanol and
other related industries in his southwest U.S. territory, which includes Nebraska.
Prior to joining the Intersystems team, Dorrell
was the Midwest account manager for Charm
Sciences. Prior to Charm Sciences, he was with Purina Mills/LOL
Feed. He has experience with feed plant management, customer service and distribution management.

Pavan offers course on snack pellets, dry pasta production

GALLIERA VENETA, ITALY This fall, the Pavan Group offered training aimed at improving the skills of factory managers,
production managers, R&D managers, quality control managers
and technical production managers from Italy and around the world.
The course, Oct. 14-18, on the production technology of dry pasta,
had 30 students. Pavan said the course provided a training experience
made up of lessons in science and technology and practical experience with trials and sensory tests at a laboratory.
The theoretical training was provided by presenters and experts from the academic world and Pavan Group process engineers. Presenters included Dr. Maria Grazia DEgidio from the
Agricultural Research and Experimentation Council of Rome, Dr.
Donatella Peressini from the Department of Alimentation at the
University of Udine, Professor Bruno de Cincio from the Department of Modelling for Engineering at the University of Calabria,
and Professor Luciano Piegiovanni from DEFENS at the University of Milan.
Pavan also sponsored a training course on the production of snack
pellets Sept. 17-20.
As always, the focal point for FoodTech Master by the Pavan
Group is the ability to involve students and to lend itself as a tool
through which the possibilities of forming relationships and creating
networks that will go beyond the school experience and will be useful for every journey.

Premier Tech celebrates 90th anniversary

started in 1923 as a small sphagnum peat moss business, is celebrating its 90th anniversary.
Since its start-up, the company has grown to 2,500
employees with a worldwide presence in 20 countries. With its diverse business units,
Premier Tech said it has built in-depth know-how in various key
industries: horticulture and agriculture, industrial equipment and
environmental technologies.
The company generates close to C$500 million in sales annually.
Premier Techs prime objective is to continue to stand out
through innovative products as well as unrivalled support and service, thanks to the talent and diversity of its teams, according to
the company. / World Grain / December 2013

For more information, see Page 102.



Geelen adds solar panels to facility

solar array of over 600 solar panels on the
roofs of Geelen Counterflows plant in Haelen, Netherlands was commissioned at the
end of October.
Every year over 125,000 kWh of electricity will be generated for lasercutting and
welding of stainless steel components for the
companys dryers and coolers.
The investment is part of project 50/50,
which targets a 50% reduction of the companys CO2 footprint in 2020, compared to
2012 and an increase of 50% in the amount
of CO2 reductions the company achieves
for its customers by installing more efficient dryers and coolers. The companys
own CO2 footprint measures the exhaust
of CO2 that follows from all company processes, from manufacturing and internal
transport to heating, electricity and business travel.
As a manufacturer of counterflow dryers
and coolers, we always try to improve the
energy balance of our customers manufac-


Geelen Counterflow has added 600 solar panels to the roof of its plant in Haelen, Netherlands.
Photo courtesy of Geelen.
turing processes. But for the energy balance
of the earth, the increasing concentration of
greenhouse gases causes more and more solar heat to be trapped inside our atmosphere,
so land and oceans become ever warmer on
average, said Managing Director Sander
Geelen. Its like putting on warmer and
warmer sweaters when you are already

For more information, see Page 102.

warm enough. There is fast growing scientific evidence that we cannot go on like this.
Rather than argue about details, wed better
start solving the problem. Sooner or later the
investment will pay off. The investment in
solar panels is only one step towards the target of 50% reduction of CO2 footprint for
the company.

December 2013 / World Grain /


OCRIM offers limited edition roller mill

CREMONA, ITALY OCRIM has introduced a limited edition roller mill that includes a personalization event, a certificate
of authenticity and a photo book.
The event occurs at the companys workshop in Cremona, Italy, and includes workers who have manufactured the machine.
The customer has the opportunity to see
OCRIMs working method.
The limited edition roller mill is signed by
the technicians, OCRIMs chief executive
officer, the manager and the customer. The

certificate of authenticity contains the signature of the four technicians who worked the
most on the machine. The photo book is given to the customer at the end of the process,
and shows the customers business and his
relationship with OCRIM. OCRIM said the
limited edition roller mills differ from others
in their aesthetics.

OCRIM is offering a limited edition roller mill.

Photo courtesy of OCRIM.

Brock names Cabello project

manager for Latin America
MILFORD, INDIANA, U.S. Elias Cabello has been named Latin America project
manager for Brock Grain Systems, according to Roger Hollinger, customer service
manager for the CTB, Inc. business unit.
In his new position, Cabello will be responsible for providing customer service
and sales support for Brock distributors and
customers in Latin America.
Prior to his employment with Brock, Cabello worked for a large dairy cooperative. Cabello is a native of Mexico City, Mexico, and
currently resides in Ligonier, Indiana, U.S.

Bhler Application Center helps

millers find solutions
BANGALORE, INDIA The Application
Center at Bhlers South Asia headquarters
in Bangalore, India, is a state-of-the-art test
facility for a variety of product and machine
trials, the company said.
It provides opportunities for todays grain
milling industry to find new solutions, establish new findings, and identify new operational parameters to improve existing
applications, Bhler said. The ultra-modern
center of competence includes the following
processes: atta milling, rice milling, coffee
roasting and grinding, partial germination,
pasteurization, as well as trainings.

For more information, see Page 102. / World Grain / December 2013



Millers receive diplomas from Swiss School of Milling

ST. GALLEN, SWITZERLAND Twenty-four young professionals from 15 different countries received their diplomas
and certificates from the Swiss School of
Milling St. Gallen (SMS), ending their
10-month training to become executive
grain milling technologists.
The SMS is globally one of the most prestigious international training institutions
within the field of grain milling technology.
It offers professionals from across the world
expert training in this area.
The SMS was set up 55 years ago by the
global Bhler Technology Group, which
continues to offer its substantial support.
It is state independent, which allows great
freedom in the choice of the school program,
Changes can be made at any time so that
latest developments can be considered im-

mediately. Since its foundation, over 1,000

students have been trained.
In his diploma speech, Michael Weber, the
principal of the SMS, said that all students
received a massive increase of knowledge
about milling and gained life experience during their stay in St. Gallen.
You are now the specialist who knows
where to and how to turn a wheel to solve
problems in a mill, but you might reckon
that there will be many situations where you
have to ask someone competent because you
cannot know everything, Weber said.
Martin Schlauri, managing director,
grain milling, at Bhler AG, Uzwil, presented the Dr. Ren Bhler Award, which
goes to the best in class of each course.
In this course, the award went to Andreas
Risch from Switzerland.

Martin Schlauri, managing director grain milling

at Bhler AG, Uzwil, presents the Dr. Ren Bhler
Award to this years best in class, Andreas Risch
from Switzerland.

The following students completed their training at the Swiss School of Milling. From left to right, starting in the back row: James Wright (Great Britain),
Masaaki Hattori (Japan), Fernando Alvarez (Venezuela), Muhammed Ibrahim (Nigeria), Alex E. Unruh (U.S.), Girts Jecis (Latvia), Ravichandran Somaloo
(Malaysia), Ling Tung Wong (Vietnam), Iwatani Kengo (Japan), Juan Carlos Conzales (Venezuela), Ravali K. Mohan (India), Mohammed Elkhateeb (Sudan),
Florian Berizzi (Germany), James Eppeh (Nigeria), Hiroyasu Kiyota (Japan), Ismail Ibrahim (Nigeria), Deddy Outra Wisnu (Indonesia), Jean Ravitsky (Israel),
Mauro Caputo (Italy), and Andreas Risch (Switzerland). Not in the picture: Mohamed Elgamar Elmaki (Sudan), Jonathan Yepez Padron (Mexico), and
Niklaus Alfonso Vilalta (Switzerland). Photos courtesy of the Swiss School of Milling.

Bhler plans feed mill maintenance courses

UZWIL, SWITZERLAND Bhler has two feed milling maintenance courses planned in January 2014 focusing on electrical and
mechanical training, both at its facility in Uzwil, Switzerland.
The first course, Feed Milling Electrical Maintenance Training, is
Jan. 20-24.
It focuses on electrical installations and scales as well as maintenance jobs and fault finding; ATEX; feed safety; maintenance organization; and energy efficiency optimization including assessment
of as-is situations (steam checks, air and heat leakage detention,

etc.), measures to improve energy efficiency and the interplay of

energy efficiency and process optimization. It includes a site visit
of a feed mill.
The second course, Feed Milling Mechanical Maintenance Training, is Jan. 27-31. It focuses on machine design and functions as well
as maintenance jobs and fault finding and feed safety including hazards and critical control points.
The courses can be combined and more information is available at
December 2013 / World Grain /


Agricultural policy and marketing consultants at the Bureau
Europen de Recherches (BER)
predict that by the year 2015 as
much as 30 million hectares of
farmland in the European Community could be growing crops for
industrial use rather than solely for
food use.
As a result of recent CAP reform and GATT measures, many
expect arable crops to hit a steep
decline. However, BER consultants forecast that farmers who
grow crops for industrial use
will inevitably be rewarded in
future years.
Possible options for industrial
use include electricity generation
from energy crops, biofuel for
transportation and making products from vegetable oils, sugar,
starch and fiber.
Although many large research
chemical and energy companies
are slower to explore these opportunities than others, interest has
undoubtedly been inspired from the
agribusiness end. Recently, Feruzzi
and Unilver have become involved
with some organizations to take
steps toward this goal.
Croda, a U.K. specialty chemical
company, has entered into an agreement with an agribusiness company
for industrial rapeseed contracts
while Limagrain, a French cooperative, has established a bio-industrial
research division.
The Agriculture Division of Statistics Canada estimated that Canadian wheat held in storage on July
31 was 12,234,000 tonnes compared with the 10,066,000 tonnes in
storage on the same date a year ago
and the 10,285,000 tonnes recorded
in 1991.
Commercial storage accounted

for 7,604,000 tonnes and 4,630,000

tonnes were stored on farms.
Wheat, excluding durum, in storage was estimated at 10,185,000
tonnes, up nearly 30% from last
year while on-farm storage of
wheat, excluding durum as well,
was 3,560,000 tonnes, an increase
of 53% from last years total of
2,324,000 tonnes. Commercial
storage was estimated at 6,625,000
tonnes, up from 5,536,000 tonnes
in 1992.
Durum stocks this year were estimated at 2,048,000 tonnes, down
from 2,206,000 tonnes last year and
1,587,000 in 1991. On-farm storage
was estimated at 1,070,000 tonnes,
down from 1,130,000 last year and
520,000 tonnes in 1991. This years
commercial durum stocks were estimated at 978,000 tonnes, down
from 1992 stocks of 1,076,000 and
1,047,000 in 1991.

Exportkhleb, Russias grain agency, celebrates its 80th anniversary
this year and looks back on a colorful past. Founded in 1923 as the
state agency primarily responsible
for grain exports, it also exported
and imported other commodities
until 1951.
With port terminal and storage facilities in Novorossiysk, Nikolaev,
Odessa, Leningrad and Feodosia,
it exported 9.8 million tonnes of
grain from the Soviet Union during
its first five years. Exports steadily
increased from the mid-1960s,
reaching 8.6 million tonnes in 1971,
mainly from newly reclaimed virgin
lands in Kazakhstan and Siberia.
SKS-14 (Soviet Kazakhstan Spring
Wheat) and SKS-16, with 14% and
16% proteins, respectively, competed favorably with Canadian and
U.S. wheat.
Exportkhleb acquired joint-

stock status in 1991. Among its

shareholders are nearly all ministries of procurement of FSU
republics, chartering, insurance
companies, banks, silos and agricultural enterprises from Rostov, Krasnodar, Stavropol and
Orenburg regions.
Mark Fowler has been appointed
as the new flour miller for Kansas
State Universitys (KSU) International Grains
Program (IGP).
Kendall McFall,
who has taken
a position as
an instructor in
KSUs DepartFowler
ment of Grain
Science and Industry. McFall
will maintain a 30% appointment
with IGP.
Fowler, who worked for Seaboard Corporation for the past
six years, was based in South
Africa for the last three years as
the technical director of the Seaboard Overseas Group, Africa
division. He worked on improving plant efficiencies for sites in
seven countries in Africa. He also
participated in and completed numerous plant improvement and
expansion projects.
Prior to joining Seaboard, Fowler
was head miller of Cargill Foods in
City of Commerce, California, U.S.
During his five years with Cargill,
Fowler was also a production supervisor in its Wichita, Kansas, U.S.,
flour mill.
As the IGP flour miller, Fowler will be responsible for all activities related to the programs
for IGP.
He will work closely with U.S.
Wheat Associates in assisting with
its market development activities

2012 / World Grain / December 2013



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4B Components Ltd. ................................57
AG Growth international ............................2
Alapala ...............................................28-29
Bank of the West......................................35
Bastak Gida Makine Medikal ....................92
BBCA Storex ............................................85
Buhler AG ...............................................6-7
CeTeC Cereal Technologies, inc. ...............65
CFCAi ......................................................97
Chief industries, inc. ..................................3
CPM Roskamp Champion .........................36
DAeWOn GSi Co. Ltd. .............................37
Damas A/S ...............................................86
Denis .......................................................87
The essmueller Co. .................................103
F. H. Schule Muhlenbau GmbH.................16
Frame ......................................................66
Fundiciones Balaguer S.A. .......................14
Future of Flour .........................................58
Gamet Manufacturing ..............................19
GeAPS .....................................................89
Global industries, inc. ..............................11
The GSi Group inc. ...................................41
Hi-Roller ..................................................15
international Production
& Processing expo....................................73

intersystems .............................................31
irle Kay Jay Chill Rolls Pvt. Ltd. .................83
Kepler Weber ...........................................75
Lambton Conveyor ...................................18
Lemar industries.......................................93
Leonhard Breitenbach GmbH ....................92
Mathews Co. ...........................................67
Maxi-Lift, inc. ..........................................23
Mill Service Spa ........................................49
Mhlenchemie GmbH..............13, 17, 51-55
Muyang Group .........................................61
MYSiLO Grain
Storage Systems Co. ................................43
OBiAL ......................................................69
Ocrim S.p.A. ............................................25
Pfeuffer GmbH .........................................15
Polen Gida ...............................................27
Prive S.A. ................................................88
Satake .....................................................21

SCAFCO Corp. .......................................104

Shanghai Zhengchang international
Machinery & engineering Co. Ltd. ............98
Silos Cordoba...........................................76
Sioux Steel Com .......................................63
STiF .........................................................45
Sukup Manufacturing Co. ........................95
Sweet Manufacturing Co. ........................39
Swiss Re ..................................................33
Tapco, inc. .................................................9
Tornum AB ...............................................48
Ugur Machine industry .............................59
Victam international .................................91
Vigan engineering S.A. ..............................4
Walinga inc. ............................................96
World Grain .............................................42
Yenar .......................................................99

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For more information, see Page 102.