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FA U-09

1
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SECTORAL LIBRARY
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RECONSTRUCTlON AND DEVELOPMENT

FEB 12 1986

*~~~~~~~~~~~~~
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Agro-Industry Proffles
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CORN
 PROFILES IN THIS SERIES:

OILCROPS - OVERVIEW ........... FAU-01

OIL SEEDS ................ . .. FAU-02

OIL PALM. .........*e.o.......... FAU-03

COCONUT. . . . . e
* .e.***** ***oFAU-04

SUGAR. sooe.......* .eo....... **o FAU-05

ETHANOLo........e ee.............
FAU-06

WHEATo........o.o..*.......o....o . FAU-07

RICEo....... .o..o.o.o.o.......... FAU-08

CORN. . . oo ooo..
. . o.o.
. .. o. .FAU-09
CASSAVA ooo..........
......... oFAU-10

ANIMAL FEEDS ..o.... ..... ... oFAU-11

FRUITS AND VEGETABLES........FAU-12

RUBBER. ... ... ..........

o..o oo. FAU-13
...

COFFEEo.....o.oo................... FAU-14

TEA ....oo.ooo.ooo...o.o.oo..o..FAU-15

COCOA. e.eoe......oooooe geooege..o.FAU-16

COTTON. .. .. ....o.........o...o ..*FAU-17

MEAT. ......... ..... oo

o.oo ..... s o.
FAU-18

SPICES AND ESSENTIAL OILSo....FAU-19

-
 S
ABSTRACT
The objective of this Profile is to provide
processing industry. It outlines the corn a review of the corn
harvest and preparation of raw material to industry from the
the milling and
marketing of the finished product. The Profile
specifications of composition, yields and uses, provides
words, and a bibliography of useful references. a glossary of key
milling process and reviews marketing aspects, It traces the
such
grade/quality, uses and characteristics. Environmentalas
economies of scale, and corn by-products are concerns,
Annexes showing conversion factors, conversion also discussed.
tables, and examples of investment and operating(Metric/US)
included at the end of the Profile. costs are

.5

0
I
i

i I

I
 FOREWORD
The nature of project and sector work in
that staff are often called upon to work the World Bank is such
fields of specialization, if only to make outside their major
an initial judgement on
the utility of further, often costly, investigation.
circumstances, up-to-date and authoritative Under these
essential. reference material is

The profiles in this series are designed

staff with experience in the agricultural for use by operational
sector but who do not
have a technical knowledge of the particular
discussion. commodity under
Their purpose is not to substitute for technical
expertise but to provide a reliable inhouse
help Bank staff to determine when and what reference which will
expertise is needed in
the detailed evaluation of investment proposals
processing. in agro-

The conditions for any particular proposal

are bound to be unique
in a number of respects, and the use of norms
project analyses could give rise to significantand general data in
other hand, by providing responsible staff errors. On the
with
issues on which appropriate expertise should a guide to the
be
profiles can contribute to the overall quality sought, these
investment. Used with care, they should also of agro processing
pre-screening such as may occur during sector facilitate broad
reconnaissance. work and

Questions, comments and further inquiries

should be addressed to:
Agro-Industries Adviser
Finance and Agro Industry Unit
Agriculture and Rural Development Department

The contribution of Ibberson International,

this profile is gratefully acknowledged. Inc. in the review of

September 1985
i

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~~~

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 Corn

CONTENTS

DATA SHEET
............................----------
INTRODUCTION ........... 1
GLOSSARY ............

RAW MATERIALS..........
3
INTRODUCTION TO MILLING ..........
7
WET MILLING ..........
8
MARRKETING ASPECTS ............
1
OTHER FACTORS ..........
15
BIBLIOGRAPHY ..........
17
ANNEX I INVESTMENT AND OPERATING COSTS
ANNEX II CONVERSION TABLES (METRIC/US)
ANNEX III CORN PRODUCT CONVERSION FACTORS

0
I
 0~~~~~~~~~~~~~~~~~~~

Corn

DATA SHEET

Corn Yields (World Bank, 1982):

World Average (1979) - 3,270 kg/ha.

Range - From a high of 6,700 kg/ha (the average
OECD-country producers) to 3,400 kg/ha among principal
average among principal producers in the(the
planned economies) to 1,500 kg/ha (averagecentrally-
principal developing-country producers). among

Six types of corn are of major commercial

1982): importance (Considine,

O Dent - Hard grains, characterized by concavity

resulting from shrinkage of the endosperm
with
moisture; the majority of U.S.-produced corn
of the kernel
the loss of
is Dent.
Flint - Early-maturing, very hard grains (more
so than Dent), due
to the presence of a hard layer of starch beneath
grown principally in Argentina and Africa. the endosperm;

Flour or Soft - Large, soft grains with

permitting easy grinding; grown largely friable endosperm,
in South and Central
America.
Sweet - Soft, sweet kernels which contain a
greater ratio of
sugar to starch than other corns; marketed fresh,
frozen for human consumption. canned, or

Popcorn - Very hard, small, elongated grains,

in puffed-kernel form. which are consumed

Kwax - Waxy-textured grains often used in wet-milling

of cornstarch. production

0
Typical corn kernel composition (Uhlig, 1979):

Bran - 6%, with a high fiber content;

Germ - 12%, of which about 35% is oil; and
Endosperm - 82%, of which about 86% is starch.

Dry milling yields are detailed in Table 1 below.

Particle size range Yield

Product Mesh* mm (% by weight)
Flaking grits 3.5-6 5.8-3.4 12
Coarse grits 9-12 2.0-1.4 15 0
Medium grits 12-16 1.4-1.0 60%
Fine grits 16-26 1.0-0.65 23
Coarse meal 26-48 0.65-0.3 10
Fine meal
(coarse cones) 48-90 0.3-0.17 10
Corn flour through 80 below 0.17 5
Germ 6.7-0.5 14
Hominy feed --- 11

* Tyler Standard Screen Scale sizes

Table 1: Dry-Milled Maize Product Yields

Source: Kent (1983)

Wet Milling Yields (Considine, 1982):

A 56-lb (25.4 kg) bushel yields - 32 lb (14.5 kg) starch;
- 14.5 lb (6.5 kg) feed and
feed products;
- 2 lb (0.9 kg) oil; and
- water.

ii
 INTRODUCTION

(Note: This commodity is known as 'corn' among

English-speakers
of North America and as 'maize' among other English-speakers.
The terms can be used interchangeably.)
Corn ranks third in world tonnage of grains produced,
wheat and rice . The majority is consumed as an behind
supplement in livestock and poultry feed where energy
its advantages are
ease of digestion, high energy content, and price.
South and Central America and Africa, however, In parts of
human consumption. it is a staple of

While sweet corn is palatable to humans in its

fresh state, it
comprises only a small portion of the total human
corn products. consumption of
Other corn varieties, the sugar content of which
is much lower, require processing prior to human
Milling enhances the water absorption properties consumption.
of maize starch,

.S
thereby expanding food preparation possibilities.
facilitates the addition of supplemental vitamins
compensate for corn's nutritional deficiencies
It
and
also
proteins
in these respects.
Additional information on corn milling processes
to

Kent (1983), Technology of Cereals. is available in

GLOSSARY

Amioca Starch obtained from wet-milling of waxy

maize; makes a non-gelling paste character-
ized by its clarity, fluidity, and adhesive
properties.
Bran Thin outer coat of the kernel with a high
fiber content.

,.~~~~~~~~~~~~~
Corn Flour Fine, pulverized endosperm particles pro-
duced by dry milling.
Decortication Removal of outer layers of bran from the
grain.
Degerminated Meal Highly refined meal from which bran and germ
have been almost completely removed; particle
size and uniformity are controlled. Has less
than 1.2% fiber and less than 2.25% fat
content on a moisture-free basis.
Dextrose A sweetener which is about 75% as sweet as
(Glucose) sucrose (sugar); formed when corn starch is
completely hydrolyzed; the main source of
body energy.
Dextrose A measurement of the degree of conversion of
Equivalent starch, expressed as the ratio of the reduc-
(DE) ing power of the syrup to that of pure
dextrose.
Endosperm The starch and protein component of a corn
kernel, contained within the bran walls.
Germ The embryo or sprouting section of the seed,
distinguished by its high oil content.
HFCS High fructose corn syrup, an enzyme-converted
syrup that is sweeter than traditional acid-
converted syrups.
Hominy/Grits Degerminated coarsely-milled endosperm with
bran removed; particle size ranges from
5.8-0.65 mm; a product of dry-milling.
Hybrid The first generation of a cross that
involves two or more inbred lines; incor-
porating a variety of desireable character-
istics.
Instant Starch Pre-gelatinized starch obtained from heated
and dried maize starch/water slurries; thick-
ens when mixed with cold water.
Maltodextrins Solutions having a DE of less than 20.

2
Meal Ground endosperm, classified as coarse and
fine, with particle size ranging from 0.65-
0.17 mm.
Semi-Sifted Meal Meal from which part of the bran and germ
(Bolted Meal) has been removed, and in which particle
size and uniformity have been partially
controlled. Max: 1.25% ash on a moisture-
free basis.
Sweet Corn Soft grain corn characterized by a relatively
high glucose content; eaten as a vegetable,
either fresh, canned, or frozen.
Syrups Solutions of starch and water (in which the
starch is broken down chemically by hydroly-
sis) having a DE of 20 or more.
Whole Meal Milled product containing all parts of
the grain, i.e., germ and bran as well as
endosperm.

RAW MATERIALS

Corn is a warm weather plant grown in both temperate

climates, in high and low rainfall areas, and and tropical
and short summers. in zones with long
It is a hardy plant, known to withstand even
extreme heat. The ideal temperature for germination is 86
degrees F (30 C); slower germination rates result
under lower
temperatures. Relatively warm day and night temperatures
required during the growing season, which is are
traditional varieties, 90 to 200 for hybrids. about 140 days for
level of 25-50 inches (63-127 cm) is preferred A precipitation
(Considine, 1982).
Corn is an annual plant belonging to the grass
in height from less than 3 feet (0.9 m.) for family. It ranges
more than 15 feet (4.5 m.) for giant varietiesdwarf varieties to
(Ibid.).
is coarse, solid, and erect; narrow leaves alternate The stem
length. Rows of grain develop on an elongated, enclosedalong its
Grain color ranges from white to dark brown, ear.
purple, and red.

3
Grain shape and size vary according to specie. Flint
example, is smooth, broad, and rounded while Dent corn corn, for
is long,
narrow, and marked by a 'dent' formed during ripening as its
starch shrinks. soft

Hybrid corn is the result of a cross between inbreds. Inbreeding

can improve corn yields, pest and disease resistance, lysine
content (and therefore protein quality), stress tolerance,
and
resistance of lodging, but inbreds are characterized by their
lack of vigor. Crossing of inbreds, resulting in hybrids,
restores previous levels of vigor. With the commercial
introduction of hybrids in the early 1900s and their improvement
in the years which followed, corn yield potentials have
increased
substantially.
The kernel is composed of (1) endosperm, the starchy portion
contained within the bran envelope; (2) germ, which is unusually
large in corn, comprising 10-12% of the weight of the kernel and
30% of its volume; amd (3) the hull (bran), a thin outer kernel
coating with'a high fiber content (ILO/JASPA, 1981).
Starch is the primary component of the corn kernel, making up
about 72% of its dry weight. The protein content is 10%; oil,
4.5%; fiber, 3.5%; and miscellaneous, 10%. (Spaeth, 1982)
protein is of relatively poor quality due to its deficiency Corn
the essential amino acids, tryptophan and lysine. Use of cornof
flour for bread baking is limited by the lack of gluten-forming
proteins.

Harvest and Preparation

Corn is harvested when accumulation of starch and protein in the

grains is complete. A dark spot on the grain opposite the germ
and a moisture content of 30-40% are signals of maturity (FAO,
1981). When corn is harvested too early drying costs are higher;
when harvested too late, the risk of damage by insects and
adverse weather conditions increases. Manual harvesting results
in fewer losses and a cleaner raw material, but mechanical
harvesting is the norm, except in small-scale agriculture..
Several steps are involved in the post-harvest, pre-milling
preparation of corn: drying, husking, shelling, and storage
(optional).

4
Drying can take place before or after husking.
When long-term
storage is the objective, drying prior to husking
since the husk helps protect the grain from is preferable,
insects and breakage.
However, the drying time involved is considerably
husks than without. The moisture content of longer with
corn
reduced to 13% or less for storage in bags and should be
bulk storage (ILO/UNIDO, 1984). At these levels12% or less for
germination,
micro-organism proliferation, and insect infestation
minimized. are

Choice of drying method depends on resource availability,

post-harvest weather, production levels, and intended
common in developing countries is sun drying. use. Most
A description
mechanical driers (batch and continuous) and a comparison of
sun drying are provided in this series' Rice Profile. with

Husking removes the leaf sheaths which surround

It can be done mechanically or manually. Manual the ears of corn.
husking is
performed either bare-handed or with a specially-designed
hook attatched to a glove. husking

Shelling removes the individual grains from the

cobs.
take place as near as possible to the harvest site It should
minimize transport costs. A moisture content of so as to
13-14%
for shelling in order to avoid grain damage and high is best
consumption costs which result when the grain is power
(Ibid.) too damp.

The ILO (1984) lists and describes five types of

corn shellers:
(1) hand-held devices; (2) small rotary hand shellers;
free-standing hand shellers; (4) small-powered/large (3)
hand-operated shellers with cleaning and grading
(5) large-powered shellers with loading, cleaning,facilities; and
bagging facilities. grading, and
Shelled corn output ranges from 15 kg/hr for
hand-held devices to 4 tons/hr for large-scale
shellers.
General problems of grain storage are discussed in
Profile. the Rice

Quality

Corn grain quality is measured in terms of:

(1) color, which is
either white, yellow, or mixed; (2) variety, where
varietal characteristics are demanded by different different
test weight per bushel; (4) moisture; and (5) amountend-users; (3)
of damage and non-corn impurities (Matz, 1969). and nature

5
Other factors are of interest to users with specific needs. For
example, protein content is important when corn is to be used for
animal feed; starch type and content is critical when the corn is
to be wet-milled; and lack of off-flavors is necessary for
breakfast cereal production.
Factors upon which grain quality depends are discussed at length
in Matz (1969), Cereal Science.

6
INTRODUCTION TO MILLING

Corn milling is of two types: Dry milling and wet

objectives of dry milling are threefold: milling. The
(1) to maximize the
yield of grits while minimizing its impurity content;
maximize the grit (as opposed to flour) yield; and (2) to
maximize germ recovery in large-particle form, so as(3) to
oil losses. (Kent, 1983) to minimize

Dry millinq involves the following operations: cleaning and

conditioning of the grain; degerming to remove germ
and hulls,
use of rolls to remove attached hulls and flatten attached
use of sifters to scalp flattened germ fraction and germ,
grade ground
endosperm into grits, meal, cones and flour; use of aspirators
remove loose hulls from grits and dryers for finished to
moisture specifications. This process is very similar product
wheat dry milling, as described in detail in the Profileto that of
Wheat. (See Kent [1983] for more information.) on
It differs from
wheat dry milling in that the preferred final product
grits while that for wheat is flour. Wet cleaning is for corn is
in some cornmills to separate impurities. still used

Dry-milled corn products include grits (flaking, coarse,

and fine); meals (coarse and fine); and flour. medium,
Oil-containing
germ is the most important by-product. Most dry-milling
can be consumed without further processing. products

Wet millinq is a combination of physical and chemical

which separate corn into its major components: operations
starch, gluten,
fiber, and germ. The principal products are starch, a source of
glucose, and germ, a source of corn oil.
Wet milling involves: cleaning and steeping; degerminating;
separation; grinding; screening; and starch separation, germ
washing,
and drying, as illustrated in Flowchart 1. These wet-milling
operations are discussed in the remainder of this
section.

7
 1Onnstw|stt"owwtr,;

Gr Cconcentrat s

~~~~~~~
I~~~~~~~~ gir.ndingr
Oil xta.Cd@rift trf ai
c o ldd glucose

Str msing
t l

Clenin and Steeping nO I

Dextrn Corn syrup Corn syrup Iotfgn

solids (liquid glue Solid glueas

(Adspted frolm Anom. FeiA 1958, 7- 291; Com ix /dny,5dledido, Ca 1ndusis Resxus:
Funatio Inc., New Yodi; and S.A. Ma (EdL) OGm TrZboi Avn Publ. CAL Inc. WestpM
on;Gn., U.S.A., 1970.)

Flowchart 1:
Wet-Milling Process Corn
Impurities~~
l9fondiconae
Source: siia Glto ths
Kent (1983) n ric andwet

WET MILLING

Cleaning and Steeping

Impurities found in corn are similar to those in rice and wheat.

They are removed by the same cleaning processes with one
exception (as mentioned above): wet cleaning is still used in
some mills, but in most cases impurities are removed with
a
combination of vibrating sieves or oscillating sieves
and
aspirators.

Steeping is a conditioning operation whereby cleaned,

shelled
corn kernels are softened. This is accomplished by soaking the
corn in a large tank filled with a warm (122 degrees F,
or 50
degrees C), circulating solution of water and 0.02-0.03%
sulphur
dioxide for 28-48 hours, until the moisture level of the
kernel
reaches 43-45% (Kent, 1983).

The objective of steeping is to (1) remove some of the

solubles;
(2) toughen the germ; and (3) soften the protein matrix
which
binds the starch granules in the endosperm. The weak sulphuric

8
acid solution formed by the sulphur dioxide
and
control fermentation and break down the protein water helps to
facilitating its separation from the starch. matrix, thereby

Steeping water contains approximately 6%

which is protein (Ibid). solids, some 35-45% of
The high-protein solids are settled out
of the solution, dried, and used as gluten
steep water can then be re-used. for animal feed; the

Degerming/Germ Separation

In degerming, the bran is loosened and the

the endosperm with minimal crushing as the germ is separated from
softened kernels are
gently broken open. The objective is to remove
breaking it. the germ without
Since the germ contains a high proportion of
its removal reduces the risk of rancidity in oil,
storage.
A Fuss mill is often used in the degermination
process
1983). It consists of a chamber containing two upright(Kent,
plates, one of which rotates while the other metal
each Eis covered with extruding metal teeth. remains stationary;
mixture is introduced into the chamber, where A water and maize
cracked open and coarsely ground. The germ is the grain is
released
process. The density of the corn/water solution is then in the
to the point where the germ floats while grits adjusted
Separating troughs are used to settle the hulls and hulls sink.
the germ is drawn off the surface. and grits while
In modern corn mills
hydrocyclones replace flotation equipment in
These are less bulky, less costly to maintain,separating the germ.
in removing the germ. and more efficient

Upon its removal, the corn germ is washed to

starch. remove any remaining
Following water expulsion and drying of the germ,
oil is extracted and purified. the
(See Profile on Oilseeds for
more information on this process.) The germ
oil has been removed is used for cattle feed. cake from which the

Grinding/Screening

The solution of coarsely-ground, degermed endosperm,

water passes through a series of impact mills hull, and
or
These finely grind the endosperm, which remains attrition mills.
suspended in a

9
water slurry. Larger particles of hull and fiber are screened
out, while fine fiber particles are filtered out by means of
gyrating 'shakers' covered with finely-woven nylon cloth.

Starch Separation/Washing/Drying

The difference in specific gravity between the heavier starch and

the lighter gluten contained in the slurry makes it possible to
separate the two by centrifuging. First the density must be
adjusted by dewatering (filtering) of the solution. Then the
solution is pumped into a continuous, high-speed centrifuge,
which extracts the gluten. Re-centrifuging in hydrocyclones
removes any gluten protein that remains. Often the starch is
also washed to remove any residual solubles.
Starch to be used in industrial applications is then dried to a
moisture content of 10-12% in kilns, or in tunnel or flash driers
(Ibid). The moisture content is further reduced (5-7% in the
U.S.; 1-2% in the U.K.) by vacuum drying.
The remaining starch is used for conversion into a variety of
products, such as glucose syrups, dextrose, and high fructose
corn syrups (HFCS). It can also be used as a feedstock in the
production of ethyl alcohol by a fermentation and distillation
process.
The gluten is dried and will yield up to 60% protein. It is
marketed as gluten meal (60% protein), or it is used as an
ingredient in corn gluten feed (at 21% protein). Further
separation of the gluten, by means of solvent extraction and
precipatation, produces zein, an alcohol-soluble protein used as
a protective coating for confections, grains, and nuts. It is
also used as a binding agent in the manufacture of pharmaceutical
tablets and for other industrial purposes.

10
0
MARKETING ASPECTS

Grade/Quality

Because most corn is traded in whole grain, rather than

in milled
form, accepted international standards are lacking. Of major
importance, however, is the nutritional value of milled
corn,
especially in the developing countries of Africa and Latin
America, where corn is an important element in the diet of
populations. Three main types of corn meal are consumed the
developing countries: whole meal, from which the germ has in
been removed; bolted meal or partly de-germed meal; and not
de-germed
or super-sifted meal, which contains little or no germ. The
nutrient composition of each is estimated in Table 2. While
caloric content of the three is essentially the same, whole the
is preferred when nutritional concerns dominate. meal
Furthermore,
whole meal extraction rates, at 97-99%, are substantially

.
higher
than those of either bolted meal (80-96%) or sifted meal (60-75%)
(ILO/UNIDO, 1984). This must be weighed against the relatively
shorter shelf life of whole meal and, in general, consumer
preference for sifted meals.

Uses

The products of dry processing and their uses include:

Grits, used in the production of ready-to-eat cereals,
brewing adjunct, and consumed directly as porridge. as a
Industrial
applications include wallpaper paste and the manufacture
sweeteners by direct hydrolysis. of

Meal, used in bakeries as a raw material, in infant foods,

cereals. and in
Industrial applications include use as a dusting agent,
in soaps, and in floor wax.
Flour, used in making bread, infant foods, and cereals;
filler in meat products. and as a

0
11
 Product/ Whole meal Bolted meal De-germed meal
Nutrient (partly de-germed) (super-sifted)

Moisture.(percentage) 12-13 12-13 12-13

Calories per 100 gr 353-356 360 363
Protein (percentage) 9.3-9.5 9.3 7.9-8.4
Fat (percentage) 3.8-4.5 Variable 02) 1.2-2.0
Carbohydrates (percentage) 73.4 Variable (74) 78.4
Fibre (percentage) 1.9-3.0 0.7-1.0 0.6-0.7
Ash (percentage) 1.3 n.a. 0.5
Calcium (mg per 100 gr) 7-17 6 5-6
Iron (mg per 100 gr) 2.3-4.2 1.8 1.1-1.2
Thiamine (mg per 100 gr) 0.3-0.45 0.35 0.14-1.18
Niacin (mg per 100 gr) 1.8-2.0 1.3 0.6-1.0
Riboflavin (mg per 100 gr) 0.11 0.09 0.08

Note:Variations in data according to sources may be explained

by variations in
the raw materials analysed and/or variations in the quality of
meal.

Sources: Schlage (1968); FAQ (1968); FAQ (1953); FAQ (1954); Uhlig and Bhat
(1979).

…--------------_______----------------------

Table 2: Nutrient Composition of Different

Types of Corn Meal
Source: ILO/UNIDO (1984)

12
 Uses of starch produced in wet milling include:
Dry Starch (unmodified), with industrial applications
manufacture of paper, textiles, adhesives, and packagedin the
foods.
Sweeteners, i.e., corn syrups, such as HFCS, dextrose,
fructose, used in the production of processed and
foods.
Ethyl Alcohol, produced by fermentation and distillation
corn starch as a base. using

Characteristics of the Market

Corn ranks third in world tonnage of grains produced,

wheat and rice. behind
The U.S. is the leading producer, supplying
nearly half of the world's total. The developing
group, led by Brazil, Argentina, Mexico, and South countries as a
produce about 1/4 of the total; and the centrally Africa,

.
planned
economies, led by China, produce about 1/6 (Considine,
1982).
Principal corn utilization categories include human
industrial applications, animal feed, and seed. food,
the domestic proportions of these categories for Table 3 shows
countries. selected

Table 3: Domestic Utilization of Corn in Certain Countries

Source: Kent (1983)
Total Percentage of total
domestic usage
domestc Source
usage Human Animal of
Country Year (thousand t) food Industrial' feed Seed data
EEC:
Bel/Lux '79/80 1184 2 30 68 - I
France '79/80 7294 1 8 89 2 1
Germany, FR '79/80 3003 10 13 76 1 1
Italy '79/80 9580 3 1 96 - I
Netherlands '79/80 2577 2 10 88 - I
U.K. '79/80 3133 10 50 40 - 1,2
Australia '78 155 39 - 61 <1 3
Austria '78 1270 1 7 91 <1 3
Canada '78 4476 18 - 81 1 3
Japan '78 10,483 3 16 81 - 3
Portugal '77 1770 15 <1 83 1 3
Spain '78 5493 - 8 92 <1 3
U.S.A. '78 111,891 8 3 88 <1 3
Yugoslavia '78 9955 5 26t 68 1 3
lIncluding wate tlncluding 23% waste.

13
Unlike trade in wheat and rice, trade in corn is generally in
unprocessed, whole kernel form (Uhlig, 1979). This is because
(1) most exports of corn go to industrialized countries to be
used as animal feeds (animals are typically fed whole meals,
which do not store well when milled); and (2) it is easier to
handle and transport corn in bulk form. It is estimated that
some two-thirds of all corn produced is consumed as animal feed
(Ibid).
The export market for corn is dominated by the U.S., which
supplies almost three-fourths of the total (Ibid). Consequently,
U.S. domestic supply and demand fluctuations substantially impact
world prices.
Retail prices of sifted meals are generally greater than those of
whole meals at the domestic level, although they vary both inter-
and intra-nationally. This difference reflects (1) the lower
extraction rate for sifted flour production; (2) the higher
packaging cost of sifted flour, which is generally available in
one- or two-pound bags; (3) the added operating costs and profit
margins of intermediaries; (4) advertising; and (5) higher
transport costs (sifted flours are often transported greater
distances due to their better storage ability) (ILO/UNIDO, 1984).
Global consumption of corn has been growing by about 3.5% (per
annum) since 1961 (World Bank, 1982). The U.S. alone accounts
for about half of total world consumption.
The U.S. is one of the few countries in the world in which corn
syrup sweeteners play a significant role; this is due to (1) the
high support price for sugar; (2) the relative abundance and low
price of corn in the U.S.; and (3) the high investment costs and
high technology operations involved in its production. While
corn syrup sweeteners have been produced for over a century, it
wasn't until the early 1970s that demand began to increase
rapidly. Two factors contributed to this boom: First, a process
was developed whereby glucose, the principal ingredient of
conventional corn-syrup sweeteners, is converted to fructose,
which is considerably sweeter. This led to the development of
HFCS, which now dominates the corn sweetener market. Second,
equally important, were the high international sugar prices ofand
1974 (MacNally, et al, 1984). Whereas starch-based sweeteners
comprised 5% of total world sweetener consumption in 1970, by
1980 this share had risen to 9% (Ibid). By 1990 this figure is
projected to increase to 11%.

14
Aspartame, a synthetic, non-nutritive sweetener
times as sweet as sucrose (Stegink and Filer, which is 150-200
1984),
to make important inroads in the world sweetener is expected
years. market in coming
Its advantages over HFCS include (MacNally,
(1) it is cheaper to produce; (2) it is easier to et al, 1984):
it can be used by households as well as industries handle; and (3)
available in both dry and liquid forms. Unlike since it is
other
non-nutritive, low-calorie sweeteners such as cyclamates
saccharin, there is no evidence of adverse health and
no unpleasant aftertaste. effects and no

OTHER FACTORS

Storage

Factors affecting storage potential of milled

corn include fat
and moisture content, the presence of contaminants,
conditions, including packaging material, air and storage
level of humidity. temperature, and
Because the fat content of whole meal is so
high (3-4%, or 2-3 times that of sifted meal),
its storage
potential is significantly limited. Although experience
great deal, periods of four to eight weeks for whole varies a
months to two years for sifted meal can be used as meal and six
storage under good conditions. indicative for

Environmental Concerns

Unlike wheat milling, corn dry milling produces

due to the larger product granulation and the fatvery little dust
products. content of the
Due to the extensive use of aspirators, fine dust
constantly removed and collected into filters is
(cyclones).

Economies of Scale
Uhlig (1979) illustrates the potential impact of
economies of
scale in corn dry-milling with the following example:
per day (tpd), modern mill produces 2.4 times the A 120-ton
tpd mill, at only 1.4 times the cost. output of a 50
Economies of scale are
even greater in wet milling.

15
By-Products

Principal by-products of wet-milled corn include:

Corn Oil, a high quality cooking oil extracted from the germ. It
is characterized by a golden color, delicate flavor, the presence
of polyunsaturated fatty acids, and high caloric and nutritional
value.
Corn Oil Cake, the residue from the germ once its oil has been
extracted. Because of its relatively high protein content (20%),
it is a key ingredient in livestock feeds and pet foods.
Corn gluten, a residual of the wet milling process. It contains
some 60-70% protein and consequently is valuable as an animal
feed ingredient. It is also an important source of energy,
vitamins, minerals, and fiber. Corn gluten feed is frequently
fed to dairy cows and poultry. Corn gluten is also used as a
corkbinding agent, an additive for printing dyes, and in the
manufacture of pharmaceuticals.
Zein, an alcohol-soluble protein which can be removed from the
gluten. It is used as a binder in tablet making and as a
protective coating for confections and nuts.
Bran, which has a high fiber content, as well as about 9%
protein. It is used in combination with gluten in the formation
of corn gluten feeds.
Steepwater, the high-protein, dry solids portion of which is
settled out, dried, and used in the production of animal feeds.
The liquid which is not recycled (i.e., used for steeping) is
concentrated and used as a culture medium.
Corn Cobs, which are used in a variety of ways, e.g., as litter
for animals, mulch, an ingredient in animal feeds, fillers for
explosives, plastics, glues, and tires; in abrasives for soaps;
in cleaning and polishing; and in the production of insecticides
and pesticides.

16
 BIBLIOGRAPHY

* 01. Baron, C.G. (1980) Technology, Employment, and Basic Needs

Food Processing in Developing Countries.
Oxford: Pergamon Press.
02. Berger, J. (1962) Maize Production and the Manuring
Maize. of
Geneva: Centre D'Etude de L'Azote.
03. Christensen, C.M. (1982-3rd Edition) Storage
of Cereal
Grains and their Products.
St. Paul: American Association of Cereal Chemists, Inc.
04. Considine, D.M. (1982) Foods and Food Production Encyclo-
pedia.
New York: Van Nostrand Reinhold Company.
05. FAO (1981) Cereal and Grain-Legume Seed Processing:
nical Guidelines. Tech-

. 06.
Rome: FAO.

Horwitz, D. L. and J.K. Bauer-Hehrling (1983)

tame Meet Our Expectations?
Can Aspar-
Journal of the American Dietetic Assn, 83 (2):142-146.

07. ILO/JASPA (1981) Appropriate Technologies in

Cereal Milling
and Fruit Processing Industries.
Addis Ababa: JASPA.
08. ILO/UNIDO (1984) Small Scale Maize Milling.
Geneva: ILO Office.
09. Kent, N.L. (1983-3rd Edition) Technology of Cereals.
Oxford: Pergamon Press.
10. Leiva, J. Plant for the Combined Production of
Wheat Flour
and Precooked Cornmeal (Maizemeal). Diagram No. 68,
September, 1979.

11. Matz, S.A. (1969) Cereal Science.

Westport: The Avi Publishing Company, Inc.
12. MacNally, W., W. David, and D. Flood (1984)
Sugar Study.
Washington: World Bank

17
13. Pyke, M. (1981-4th Edition) Food Science and Technology.
London: John Murray (Publishers) Ltd.
14. Roncaglia OPR (no date) From Maize/Corn to Flour.
Modena (It): Officine Roncaglia.
15. Spaeth, R.W. (1982) Corn Wet Milling Processing and Products
in The China Encounter: Technical Papers from the First
Grain Milling and Baking International Symposium.
Kansas City: Sosland Co., Inc.
16. Stegink, L.D. and L.J. Filer (1984) Aspartame: Physiology
and Biochemistry.
New York and Basel: Marcel Dekker, Inc.
17. Uhlig, S.J. and B.A. Bhat (1979) Choice of Technique in
Maize Milling.
Edinburgh: Scottish Academic Press.
18. USDA (1979) Conversion Factors and Weights and Measures for
Agricultural Commodities and their Products.
Washington: USDA.
19. World Bank, Commodities and Export Projections Division
(1981) Sugar Handbook.
Washington: World Bank.
20. World Bank, Commodities and Export Projections Division
(1982) Grains Handbook
Washington: World Bank.
21. World Bank, East Asia and the Pacific Projects Dept. (1976)
Philippines: Appraisal of the 2nd Grain Processing
Prolect.
Washington: World Bank.
22. Wyss, Ed. Development of Corn (Maize) Processing. Buhler
Diagram No. 58, November, 1974.

18
.

ANNEX I:

EXAMPLES OF INVESTMENT AND OPERATING COSTS

0
 I

I
i

I
i

i
 CORN MILLING
EXAMPLE 1
Page 1 of 2
Representative Investment and Operating Costs

CORN (MAIZE) MILLING

____________________

Establishment of a mill to process dried

corn (maize)
into flour.

COUNTRY: Kenya

NOTE: These data are intended as indicative only and

are unique
to the time, circumstance, and country of the
identified
investment. Their applicability to other situations may
vary considerably.
Annual Production at Full Development (in '000
tons):

. 672.00

2 Capacity Utilization at Full Development: 80.00%

US$ '000
mid 1982 prices
I. Investment Costs: Total

Land & Building

Machinery 1.36
hammer mill & accessories
other 10.00
Sub-Total Machinery 0.53
Transport 10.53
Installation 0.32
Pre-Operational Expenses 0.27
0.84
Total Investment Costs 13.32

-
 CORN MILLING
EXAMPLE 1
Page 2 of 2

Representative Investment and Operating Costs

NOTE: These data are intended as indicative only and are unique
to the time, circumstance, and country of the identified
investment. Their applicability to other situations may
vary considerably.

US$ 'ooo
mid 1982 prices
Total
II. Annual Operating Costs at Full Development:
(excluding raw materials)
-----------------------------------------------

Variable Costs
wages 2.91
fuels 1.82
consumables 0.33
Sub-Total Variable Costs 5.05
Fixed Costs
administration & overhead 2.77
maintenance & repair 0.14
insurance 0.91
depreciation
buildings 0.14
machinery 1.46
Sub-Total Fixed Costs 5.41
Total Operating Costs 10.47

NOTES:
Exchange rate - Kenya Shillings 11.00 US$ 1.00
Detailed breakdown on local and foreign costs is not available.
Details on raw material costs are not available.
Depreciation at 10% on buildings and 12.5% for
machinery & equipment.
Full development production is achieved in the second year of
the project.
Data are net of contingencies.
 CORN MILLING
EXAMPLE 2
Page 1 of 2
Representative Investment and Operating Costs
…--------------------------------------------

CORN (MAIZE) MILLING

Establishment of a dry maize milling plant

to produce
flour and maize bran and maize germ from by-products. maize

COUNTRY: Uganda (M/S Arocha Millers Ltd.)

NOTE: These data are intended as indicative only and

to the time, circumstances, and country of are unique
the identified
investment. Their applicability to other situations may
vary considerably.

Annual Full Development Production (in tons):

---------------------------------------------

maize flour 1600.00

maize bran 220.00
maize germ 180.00
Capacity Utilization at Full Development: 100.00%
…-----…US$ '000 …
early 1984 prices
Local Foreign Total
I. Investment:
______________

Land Acquisition/Development 1.00

Building Construction 1.00
50.00 50.00
Machinery
imported 6.67 350.00 356.67
local procurement 3.33 51.33 54.67
Sub-Total Machinery 10.00 401.33 411.33
Import Duties 16.00
Utility Upgrade 16.00
5.00 5.00
Pre-Operating Costs 97.13 97.13
Total Investment Costs 179.13 401.33 580.47

-~~~~~~~~~~~------------
 CORN MILLING
EXAMPLE 2
Page 2 of 2
Representative Investment and Operating Costs

NOTE: These data are intended as indicative only and are unique
to the time, circumstances, and country of the identified
investment. Their applciability to other situations may
vary considerably.

US$ '000
early 1984 prices
Total
II. Annual Full Development Operating Costs:
---------------------------------------------

Variable Costs
raw materials 233.33
packing materials 36.67
factory chemicals 2.67
production labor 3.57
electricity/water/fuel 22.93
Sub-Total Variable Costs 299.17
Fixed Costs
overhead salaries 5.37
administration 21.47
depreciation 109.20
maintenance 6.57
Sub-Total Fixed Costs 142.60
Total Operating Costs 441.77

NOTES:
Exchange rate Ugandan Shillings 300 = US $ 1.00
Details on foreign exchange component of operating costs not
available.
Full development is approximately four years after project
start-up.
Data are net of contingencies.
 CORN MILLING
EXAMPLE 3
Page 1 of 3
Representative Investment and Operating Costs

MAIZE MILLING
_____________

Establishment of a processing facility to produce grits

and other
products from maize flour.

COUNTRY: Yugoslavia

NOTE: These data are intended as indicative only and are unique
to the time, circumstance, and country of the identified
investment. Their applicability to other situations
may vary considerably.

Annual Full Development Production (tons):

------------------------------------------

maize grits 1575.00 brewery grits 13875.00

maize flour 150.00 corn meal 700.00
corn flakes 550.00 maize gen 1250.00
livestock feed 12840.00
Capacity Utilization at Full Development: 100.00%

--------US$ 000-------
end 1980 prices
Local Foreign Total
I. Investment Costs:
____________________

Civil Works
silos 2595.19 1112.22 3707.41
silo preparation 215.63 47.33 262.96
workshop 125.00 41.67 407.41
warehouse 305.56 101.85 129.63
sewage system 105.00 24.63 37.04
water system 30.00 7.04 318.52
electric system 222.96 95.56 318.52
processing plant 2307.41 988.89 3296.30
Sub-Total Civil Works 5906.74 2419.19 8477.78

S
 CORN MILLING
EXAMPLE 3
Page 2 of 3

Representative Investment and Operating Costs

---------------------------------------------

NOTE: These data are intended as indicative only and are unique
to the time, circumstance, and country of the identified
investment. Their applicability to other situations
may vary considerably.

--------US$ 000-------
end 1980 prices
Local Foreign Total
Investment Costs (cont'd)
_________________________

Equipment & Machinery

processing (domestic) 432.44 288.30 720.74
processing (foreign) 1604.63 1604.63
grain dryer 254.81 382.22 637.04
boiler (coal) 299.15 365.67 664.81
mechanical/electrical (silo) 971.22 827.37 1798.59
installation 192.59 48.15 240.74
transportation 116.67 12.96 129.63
insurance 22.22 22.22
Sub-Total Equipment & Machinery 2289.11 3529.30 5818.41
Engineering & Design 420.22 74.15 494.37
Supervision & Start-Up 232.15 232.15
Training 51.85 22.22 74.07
Customs & Duties 529.52 529.52
Total Investment Costs 9429.59 6044.85 15626.30
_ _ _ _ _ _ _ - - - - - - - - - - - - - - -
_ _ _ _ _ _ _ - - - - - - - - - - - - - - -
 CORN MILLING
EXAMPLE 3
Page 3 of 3
Representative Investment and Operating
Costs

NOTE: These data are intended as indicative only and

are unique
to the time, circumstance, and country of the
identified
investment. Their applicability to other situations
may vary considerably.

US$ '000
end 1980 prices
Total Cost
II. Full Development Annual Operating Costs:
--------------------------------------------

Variable Costs
raw materials
utilities 5967.22
packing materials 502.37
production labor 356.67
Sub-Total Variable Costs 165.19
6991.44
* Fixed Costs
maintenance
insurance 38.74
management staff 59.48
common consumption 43.56
Sub-Total Fixed Costs 85.63
227.41
Total Operating Costs
7218.85

DATA SOURCE: Adapted from World Bank project appraisal report

for the Kosovo Agro-industries and Agricultural
Development Project, (3286-YU), Volume II, Working
Paper WP-3.10, Maize Processing Plant.
NOTES:
Exchange rate - Dinar 27.00 = US $ 1.00
Full production is approximately year five following
start-up. project
Details on foreign/local cost breakdowns for operating
are not available. costs
Data do not include contingencies.
I~~~~~~~~~~~~~~~~~~~~~

ri~~~~~~~~~~~~~~~~~~~~~~~~
*
CORN MILLING
EXAMPLE 4
Page 1 of 2
Representative Investment and Operating Costs

CORN (MAIZE) MILLING

Establishment of a corn (maize) milling facility that
will
produce corn starch, corn syrup, corn flour, and fructose.

COUNTRY: Korea (Doosan Grain Co., Ltd.)

NOTE: Data are intended as representative only and are unique
to the time, country, and circumstance of the identified
investment. Their applicability to other situations
may vary considerably.

ANNUAL PRODUCTION AT FULL DEVELOPMENT ('000 tons):

corn starch 66.00 (64,000 tons will be used for

products listed below)
corn syrup 19.80
corn grits/flour
O fructose
high fructose
33.00
8.20
21.50
_~~
PER CENT OF FULL CAPACITY UTILIZATION:

corn starch 40% in 2nd year of project, rising at 10%/p.a.

corn syrup 50% in 2nd year of project, rising at 10%/p.a.
corn grits/flour 35% in 2nd year of project, rising
fructose/ at 5%/p.a.
60% in 2nd year of project, rising at 10%/p.a.
high fructose

-------- US$ '000-------

mid-1981 prices
Local Foreign Total
Investment Costs:
_________________

land 877.19 877.19

building 4334.80
. 4334.80
structures 1331.87
equipment 1331.87
domestic 5043.86 5043.86
imported 4750.00 4750.00
sub-total 5043.86 4750.00 9793.86
 CORN MILLING
EXAMPLE 4
Page 2 of 2
Representative Investment and Operating Costs

NOTE: Data are intended as representative only and are unique

to the time, country, and circumstance of the identified
investment. Their applicability to other situations
may vary considerably.

…------…US$ '000 …
mid-1981 prices
Local Foreign Total

transport & installation 1346.49 1346.49

equipment operation training 200.00 200.00
utility upgrade 2141.81 2141.81
pre-operational expenses 1418.13 1418.13
Total Investment Costs 16494.15 4950.00 21444.15

II. Full Development Annual Operating Costs

(excluding raw materials)
-------------------------------------------

Fixed Costs
Administration & Overheads 2271.94
Depreciation 1725.89
Sub-Total Fixed Costs 3997.83
Variable Costs
Labor 1286.64
Other 1514.62
Sub-Total Variable Costs 2801.26
Total Operating Costs 6799.09

NOTES:
1. Exchange rate - Korean Won 684 = US$ 1.00.
2. Data are net of contingencies.
3. Full development is year 4 after project start-up.
4. Local/foreign cost breakdown for operating costs
is not available.
 -

'I
1'

ANNEX II:

CONVERSION TABLES

vI~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
 i

I
 WEIGHTS AND MEASURES

avoirdupois
Ton: short ton 20 short hundredweight, 2000 pounds;
0.907 metric tons;
long ton 20 long hundredweight, 2240 pounds;
1.016 metric tons.
Hundredweight cwt;
short hundredweight 100 pounds, 0.05 short tons; 45.359
kilograms;
long hundred weight 112 pounds, 0.05 long tons; 50.802
kilograms.
Pound lb or lb av; also $;
16 ounces, 7000 grains; 0.453 kilograms.
Ounce oz or oz av;
16 drams, 437.5 grains; 28.349 grams.
Dram dr or dr av;
27.343 grains, 0.0625 ounces; 1.771 grams.
Grain gr;
0.036 drams, 0.002285 ounces; 0.0648 grams.

Troy
Pound lb t;
12 ounces, 240 pennyweight, 5760 grains; 0.373
kilograms.
Ounce oz t;
20 pennyweight, 480 grains; 31.103 grams.
Pennyweight dwt also pwt;
24 grains, 0.05 ounces; 1.555 grams.
Grain gr;
0.042 pennyweight, 0.002083 ounces; 0.0648 grams.
 METRIC SYSTEM

Square kilometer sq km or km2 ;

1,000,000 square meters;
0.3861 square mile.
Hectare ha;
10,000 square meters;
2.47 acres.
Hectoliter hl;
100 liters; 3.53 cubic feet; 2.84 bushels;
Liter 1;
1 liter; 61.02 cubic inches; 0.908 quart
(dry); 1.057 quarts (liquid).
Deciliter dl;
0.10 liters; 6.1 cubic inchs; 0.18 pint
(dry); 0.21 pint (liquid).
Centiliter cl;
0.01 liters; 0.6 cubic inch; 0.338
fluidounce.
Metric ton MT or t;
1,000,000 grams; 1.1 US tons.
Quintal q;
100,000 grams; 220.46 US pounds.
Kilogram kg;
1,000 grams; 2.2046 US pounds.
Gram g or gm;
1 gram; 0.035 ounce.
 0-

).

ANNEX III:

CORN PRODUCT CONVERSION FACTORS

is
I
 Annex III

Conversion Factors for Corn and Corn Products

Source: USDA (1979)

Faccors for converting--

:Bushels of:Pounds of :Pounds of :Pounds of
Product : corn to : product : corn to : product
:pounds of :to bushels:pounds of :to pounds
Droduct of corn : product of corn
Corn, shelled 2/ ; 56.0 0.0179 1.00 1.00
Corn meal, degermed ; 31.6 .0316 .564 1.77
Corn meal, nondegermed, regular : 50.0 .0200 .893 1.12
Corn flour : 33.0 .0303 .589 1.70
Corn grits or hominy grits : 29.0 .0345 .518 1.93
Hominy, canned 145.0 .0069 2.589 .39
Hominy, dry 27.3 .0366 .488 2.05
Cornstarch, 10 percent moisture 3/ 34.4 .0291 .614 1.63
Cornstarch, pearl, 12 percent moisture
or laundry starch 3/ 35.2 .0284 .629 1.59
Corn sugar:
Dextrose, hydrate, 8 percent moisture : 30.0 .0333 .536 1.87
Dextrose, anhydrous, moisture free 4/ 27.5 .0364 .491 2.04
Corn sirup, 43° Baume, 19.73 percent
moisture, 42 percent dextrose
equivalent 3/ 37.6 .0266 .672 1.49
Corn flakes or corn cereal 21.5 .0465 .384 2.60
Corn-soya cereal 5/ 33.6 .0297 .60 1.66
Precooked infant-type mixed cereal 500.0 .0020 8.929 .11
Premixed cereal : 101.8 .0098 1.818 .55
Pancake mix 330.0 .0030 5.882 .17
Pudding powder, 33 percent cornstarch 103.8 .0096 1.854 .54
Chocolate pudding powder, 18 percent
cornstarch 186.6 .0054 3.333 .30
Corn snacks : 67.5 .0148 .830 .1205
Corn oil:
Refined 1.6 .625 .0286 35.0
S Crude 1.8 .556 .0321 31.1
Corn feeds, gluten feed, gluten meal,
and corn oil meal or cake 6/ : 14.9 .0671 .266 3.76
Hominy feed : 20.0 .050 .357 2.30
1/ All factors are based on 56 pounds of shelled corn per bushel. Product spectrum
varies with corn milled and product mix sought. Factors presented are based on maxi-
mum yield of product. 2/ Five bushels of shelled corn - 1 barrel; 10 bushels of ear
corn - 1 barrel; 70 pounds of ear corn - 1 bushel of shelled corn. 3/ From 17-percent
moisture corn. 4/ Based on continued reprocessing of uncrystallized dextrose liquors.
5/ Corn-soya cereal contains approxima.ely 34 percent sova flour. 6/ Conversion
factors cover all corn feeds combined. Data are not available to show separate
components of corn feeds, though gluten feed is generally about 55-60 percent of total
corn feeds, gluten meal around 40 percent, and corn oil meal only about 2 percent.