World Grain 2-2015

The International Business Magazine for Grain, Flour and Feed
February 2015
Striving for
grain surpluses
Ethiopia makes major
gains in crop output
Port of
Rotterdam profile
Focus on Syria
Grain-based foods
stock performance
www.World-Grain.com
A Commitment to Growing
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contents
www.World-Grain.com
VOLUME 33 NUMBER 2 FEBRUARY 2015
FEATURES
30
Ethiopia striving for grain surpluses

Increased cereals production has helped the country drop
undernourished rate from 75% to 35% over the last quarter century.
36
CWB taken off life support

A number of companies whose names have yet to be revealed have
reportedly expressed interest in purchasing the wheat board.
42
Europes largest port keeps growing

Grain traders benefiting from Port of Rotterdams upgrading of
its infrastructure.
48
Grain experts analyze Black Sea

Two of the worlds biggest exporters, Russia and Ukraine,
face economic, logistical and political challenges.
30
54
Investment analysts guarded about 2015

Most are hard pressed to paint an optimistic picture for grain-based
food company shares.
64
Milling properties of commingled rice

Commingling of cultivar lots can happen during harvest, drying and
storage operations.
76
U.K. milling industry checking for soy in flour

NABIM survey from 2013 shows low levels of soy were present in
15 out of 45 samples.
82
Upgrade ideas for your feed mill

A look at a possible new test to gauge the uniformity of
mixed feed ingredients.
42
DEPARTMENTS
08
10
12
22
24
72
106
112
113
114
Editorial
Calendar
World Grain News
Grain Market Review: Rice
Country Focus: Syria
Rice News
Supplier News
Products and Services
Archive
Advertiser Index/Fax Back Form
88
Comparing major soybean exporters

Study finds U.S. holds edge over Argentina and Brazil in soybean
cost-effectiveness and reliability.
98
The importance of landscaping

Trees, plants and grasses play big roles when it comes
to managing pests.
102
Global feed tonnage increases

Alltech survey estimates 2014 output at record 980 million tonnes.
ON THE COVER: The SDTV Bulk Terminal in the Port of Djibouti serves as a drop
off point for grain for Ethiopia and the whole region. Photo courtesy of VIGAN.
2015. 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.
www.World-Grain.com / World Grain / February 2015
48
5
PROVEN & DEPENDABLE |
W W W. G R A I N S Y S T E M S . C O M
FROM THE EDITOR-IN-CHIEF
Easing embargo
on Cuba a world gain
s delighted as the grain industry

may be with the action of President
Obama in moving to ease trade restrictions on Cuba, it continues to be important to appreciate why the embargo was
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because the Communist regime of Fidel
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the 1960s, seized property in Cuba owned
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trade and tourist travel between the United
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stood at that time as the largest Caribbean
importer of food and one of the largest in
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came as Washingtons response to Cubas
property takeovers, which are currently esWLPDWHGWRKDYHDYDOXHRIELOOLRQ
Recalling what happened nearly 60 years
ago is powerfully countered by realizing that
the trade embargo itself has done quite literally nothing to prompt a change in Cuba
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leader of the country, in taking a few steps
to release prisoners in response to President
Obamas overtures, has shown no willingness to enter into arbitration about seized
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prompted speculation about the possibilities
of future talks by people and companies who
have formal claims, but it also is generally
agreed that such talks are going to be long
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Based on recent annual imports of wheat,
primarily from Canada and the European
Union, of more than 525,000 tonnes, Cubas
mills have yearly milling capacity of between
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per capita consumption is considerably lower
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the regimes emphasis on restraining imports
and forcing the population to rely for food on
what can be produced on a Caribbean island
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grain that competed with wheat-based foods
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Ward, who best described the embargo when
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as they could source rice and other products
from around the world, but rather on the rice
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cut them out of one of the worlds top marNHWVMXVWPLOHVIURPRXUVKRUHV
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doubtful with Republican majorities in both
houses, the administration took action to
change banking and cash payment requirePHQWVIRUIRRGWRHDVHVHOOLQJJUDLQV)RRGKDV
been exempted from the trade embargo for
some time but complicated payment rules had
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and rice could reach as high as 90%, which is
the average share for most Caribbean nations
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Except for spokesmen representing the
viewpoint of anti-Castro Cuban exiles in
Florida, support is widespread for this surprising action undertaken by the administraWLRQ 5HVWRULQJ GLSORPDWLF UHODWLRQV DV ZHOO
as steps toward trade liberalization are parts
of the deal undertaken by Washington, and
these are seen as steps that importantly eliminate the excuses the Castros have used to
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threat lifted, it will no longer be possible for
Cuba to press for the sympathy of some of
its fellow Latin nations which join it in anti$PHULFDQ LQLWLDWLYHV (YHQ PRUH LPSRUWDQW
than these economic and diplomatic gains is
how this stands as another positive step for
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Morton I. Sosland
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Sales
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WORLD GRAIN (ISSN 0745-8991) Volume 33, issue 2,
is published monthly by Sosland Publishing Co.,

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February 2015 / World Grain / www.World-Grain.com
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CALENDAR OF EVENTS
FEBRUARY
Feb. 21-24
GEAPS Exchange 2015
Location: Americas Center, St. Louis, Missouri, U.S.
Contact: Grain Elevator and Processing Society
Tel: 1.952.928.4640 Fax: 1.952.929.1318
E-mail: info@geaps.com
Internet: www.geaps.com
Feb. 23-25
15th International Exhibition for Grain
Industries Technology, Mills, Silos, Automatic
Bakery Lines, Fodders, Pasta Equipment, Rice
Beaters & Oil Factories, Biscuit Factories
GRAIN TECH 2015
Location: International Fair Ground, Cairo, Egypt
Contact: Ali Fadl, exhibition manager
Tel: 201142359208
E-mail: alifadl2004@yahoo.com
Internet: www.igmfairs.com
MARCH
March 3-4
IV International Agrotechnological
Conference AgroHighTech XXI
Location: Rostov-on-Don, Russia
Contact: Margarita Glukhova
Tel: 007 (495) 607-82-85 E-mail: gaa@grun.ru
Internet: www.grun.ru/en/
March 9
AGIC Asia - Singapore
Location: Grand Hyatt, Singapore
Tel: 0011 +612 9427 6999
Fax: 0015 +612 9427 6888
E-mail: administration@ausgrainsconf.com
Internet: www.ausgrainsconf.com/asia
March 9-13
AFIA Spring Committee
Meetings and Purchasing &
Ingredient Suppliers Conference
Location: Hyatt Regency Grand Cypress, Orlando,
Florida, U.S. Contact: Sarah Novak (AFIA)
Tel: 1.703.524.0810 Fax: 1.703.524.1921
E-mail: afia@afia.org Internet: www.afia.org
March 10-12
Global Grain Asia
Location: Shangri-La Hotel, Singapore
Contact: Melissa Kroc Tel: 44 (0) 20 7779 8545
E-mail: mkroc@ggrain.com
Internet: www.globalgrainasia.com
March 11
AGIC Asia - Hong Kong
Location: Grand Hyatt, Hong Kong
Tel: 0011 +612 9427 6999
Fax: 0015 +612 9427 6888
E-mail: administration@ausgrainsconf.com
Internet: www.ausgrainsconf.com/asia
10
March 14-17
North American Millers
Association 2015 Division Meetings
Location: Waldorf Astoria Naples, Naples, Florida, U.S.
Contact: Terri Long Tel: 1. 202.484.2200, ext. 11
Fax: 1.202.488.7416
E-mail: tlong@namamillers.org
Internet: www.namamillers.org
March 15-17
NGFA 118th Annual Convention
Location: San Antonio, Texas, U.S.
Contact: National Grain and Feed Association
Tel: 1.202.289.0873
Fax: 1.202.289.5388
E-mail: ngfa@ngfa.org
Internet: www.ngfa.org
March 16-20
Bhler-KSU Expert Milling (English)
Location: Manhattan, Kansas, U.S.
Contact: International Grains Program
Tel: 1.785.532.6011E-mail: igp@ksu.edu
Internet: www.grains.k-state.edu/IGP
March 16-20
IGP-KSU Pet Food
Safety Simulation Workshop
March 16-27
IGP-KSU Grain Purchasing
March 23-27
Bhler-KSU Expert Milling (Spanish)
March 29-April 1
3rd ICC Latin American Cereal
and Grain Conference and ICC
Jubilee Conference
Location: Curitiba, Brazil
Contact: ICC - International Association for
Cereal Science and Technology General Secretariat
Tel: 43 1 707 72020
Fax: 43 1 707 72040
E-mail: office@icc.or.at
Internet: www.icc.or.at
APRIL
April 14-16
NGFA-AFIA-KSU Establishing a
HACCP for the Feed Industry
For a 12-month listing of 2015 industry

events, see the 2015 International Buyers Guide
or visit www.World-Grain.com. Send your event
details to: worldgrain@sosland.com or
We want to hear from you Send comments and

inquiries to worldgrain@sosland.com. For reprints of
WG articles, e-mail reprints@sosland.com.
119th Annual IAOM Conference & Expo

Hundreds of milling professionals from across the world are expected to attend the
International Association of Operative Millers Annual Conference & Expo May 4-8 at
the Renaissance Palm Springs Hotel and Palm Springs Convention Center, Palm Springs,
California, U.S.
The event gives attendees an opportunity to attend education programs, connect
with industry peers at networking events and develop relationships with vendors who
offer products and services.
Educational and technical programs presented at the conference assist millers in
improving yields, productivity, customer satisfaction and safety. The programs are presented by seasoned professionals in the field who have experienced the issues affecting millers first-hand.
In addition, the annual conference also includes an expo for milling professionals,
typically featuring over 100 companies displaying milling and processing equipment
and related services.
For more information, visit http://www.iaom.info/annualmeeting/.
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NEWSREVIEW
News review
Brought to you by World-Grain.com
NIBULON reports record grain,

oil crop exports
KIEV, UKRAINE NIBULON said on Jan. 22 that it has exported a record 2.28 million tonnes of grain and oilseed crops in
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NEWSREVIEW
Algerias cereal imports increase by $3.5 billion

ALGIERS, ALGERIA Algerias cereal imports (wheat, barley and
maize) increased 12% to $3.54 billion in 2014 from $3.15 billion
the previous year, Algerian Customs told the Algeria Press Service
(APS) on Jan. 24.
The quantity of imported cereals increased 22.4% to 12.3 million
tonnes in 2014, against 10.04 million tonnes a year earlier, according
to the Algerian Customs National Centre of Data Processing and
Statistics (CNIS).
The imports of wheat (soft, durum and seed) reached $2.37 bil-
lion compared to $2.12 billion in the same period a year earlier, an

increase of 11.7%. Quantities increased by 17.5% to 7.41 million
tonnes in 2014 compared to 6.31 million tonnes in 2013.
Imports of durum wheat reached $784.01 million for a quantity of
1.978 million tonnes in 2014 against $434.03 million (1.09 million
tonnes) a year earlier.
The imports of soft wheat totaled about $1.58 billion for a quantity
of 5.438 million tonnes against $1.68 billion for 5.213 million tonnes
in 2013, a decrease of 5.8% in value, said Algerian Customs.
ADM strengthens Unilever relationship

ROLLE, SWITZERLAND Archer Daniels Midland Co. (ADM) and
Unilever have signed a joint business development plan that should grow
ADMs relationship as an oils and fats supplier to Unilever in Europe,
North America and Africa. The plan sets measurable goals around volume, new product development, growth, innovation and sustainability.
ADMs end-to-end value chain allows us control of our product
RZLQZD\VWKDWIHZLQWKHLQGXVWU\FDQRIIHUVDLG0DWW-DQVHQVHnior vice-president and president, Oilseeds for Chicago, Illinois, U.S.based ADM. Strengthening our existing partnership with Unilever
will allow us to build upon those capabilities and leverage our unique
supply chain to continue to provide high-quality, sustainable ingrediHQWVDQGLQQRYDWLYHVROXWLRQVWR8QLOHYHUDQGWKHLUFXVWRPHUV
The two companies already cooperate in other ways. ADM sources

and processes sustainable soybeans and supplies Unilever with oil for
Hellmanns mayonnaise through an ADM/Unilever soybean sustainability program in the United States. ADM and Unilever also have a
partnership with LEAF (Linking Environment and Farming) in Europe.
Programs like the ADM/Unilever soybean sustainability program
and our joint partnership with LEAF are great examples of how we
can creatively work together to deliver unique solutions for sustainable sourcing, and the JBDP will help advance that type of innovaWLRQEHWZHHQRXUFRPSDQLHVVDLG$PLW0RKWDYLFHSUHVLGHQW3URcurement Commodities, Unilever. We look forward to continuing to
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14
NEWSREVIEW
Cargills net earnings up 41%

MINNEAPOLIS, MINNESOTA, U.S.
Cargill reported on Jan. 8 net earnings of
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15
NEWSREVIEW
Grain, biofuel shipments surge at Port of Prince Rupert

PRINCE RUPERT, BRITISH COLUMBIA, CANADA Volumes
reached record heights in 2014 at more than half of the Port of Prince
Ruperts cargo terminals, according to year-end statistics released on
Jan. 9 by the Prince Rupert Port Authority.
Container, grain and biofuel shipments surged over a 12-month
period, while overall port volumes were tempered by decreases in
coal and log exports.
7KH UHFRUGEUHDNLQJ SHUIRUPDQFH RI VSHFLF WHUPLQDOV GHPRQVWUDWHVWKHYDOXHRIEXLOGLQJDGLYHUVLHGSRUWFRPSOH[VDLG'RQ
.UXVHO SUHVLGHQW DQG FKLHI H[HFXWLYH RIFHU RI WKH 3RUW RI 3ULQFH
Rupert. A strong year in some sectors offsets challenges faced by

others. This underlines the ports overall resilience, and its ability to
VXVWDLQEHQHWVWRRXUFRPPXQLW\GHVSLWHPDUNHWXFWXDWLRQV
Prince Rupert Grain saw a 25% increase in exports of Canadian
agriculture products, with both canola and wheat volumes rising
VLJQLFDQWO\RYHUWKHSUHYLRXV\HDU7KHWHUPLQDOVWRWDOWRQQDJH
nearly 6.5 million tonnes is the highest ever since the terminal
opened in 1984.
The enviable global reputation of all Prince Ruperts terminals is
RZHGWRWKHLUKDUGZRUNLQJPHQDQGZRPHQVDLG.UXVHO
CHS reports 56% increase in first-quarter earnings

ST. PAUL, MINNESOTA, U.S. CHS Inc. reported on Jan. 7 net
LQFRPHRIPLOOLRQIRUWKHUVWTXDUWHURILWVVFDO\HDU
an increase of 56% from a year ago.
Earnings for the period Sept. 1-Nov. 30, 2014, increased 56% from
PLOOLRQ UHFRUGHG LQ WKH UVW TXDUWHU RI VFDO 7KH LQFUHDVHZDVODUJHO\DWWULEXWHGWRVWURQJHUUHQLQJPDUJLQVLQWKHFRPSDQ\VHQHUJ\EXVLQHVV5HYHQXHVIRUWKHTXDUWHUZHUHELOOLRQ
GRZQIURPELOOLRQIRUWKHVDPHSHULRGLQVFDOSULPDULO\
due to decreased average grain selling prices.
)LVFDOUVWTXDUWHUHDUQLQJVIRUWKH&+6$JVHJPHQWZKLFK
includes its domestic and global grain and crop nutrients businesses,
renewable fuels, local retail operations and processing and food inJUHGLHQWVLQFUHDVHGVOLJKWO\RYHUWKHVDPHSHULRGD\HDUDJR7KLV
was primarily due to strong grain handling logistics within both retail
and wholesale operations. CHS renewable fuels manufacturing, marNHWLQJDQGGLVWULEXWLRQDOVRUHFRUGHGUHVXOWVDKHDGRIWKHUVWTXDUWHU
RIVFDOZKLOHSURFHVVLQJDQGIRRGLQJUHGLHQWVRSHUDWLRQVUHSRUWHGORZHU\HDURYHU\HDUHDUQLQJVIRUWKHTXDUWHU
(DUQLQJV IRU WKH TXDUWHU LQFUHDVHG RYHU WKH VDPH SHULRG D \HDU
ago for the CHS share of food manufacturer and distributor Ventura
Foods, LLC, but declined for its share of earnings from wheat milling joint ventures.
New Quality for Coarse Crushing:
Drum Groat Cutter TGS
The application
possibilities
are numerous:
Intermediate product
Precise and
Economic
The SCHULE
drum groat cutter
produces uniform,
sharp-edged
groat particles.
Simple knife change = 75 % time saving!

Capacity of up to 1,500 kg/h
for further processing

to baby flakes and
quick-cooking flakes
Oat groats
Barley groats
Cutting of rye and
wheat
Groats for feeding
purposes
Longer service life of the knives

F. H. SCHULE Mhlenbau GmbH Dieselstrae 5-9 D - 21465 Reinbek / Hamburg
Phone: +49 40 7 27 71 - 0 schule@amandus-kahl-group.de www.schulefood.de
16
NEWSREVIEW
KSU names Grain Science and Industry Department head

MANHATTAN, KANSAS, U.S. The
College of Agriculture at Kansas State University (KSU) has announced Gordon Smith
as the new head of the Department of Grain
Science and Industry. Smith will also direct
the International Grains Program Institute,
located in Manhattan, Kansas, U.S. He will
EHJLQKLVRIFLDODSSRLQWPHQW)HE
Dr. Smith brings astute and prudent leadership, and a wealth of ideas, energy and exSHULHQFH WR WKH SRVLWLRQ VDLG -RKQ )ORURV
dean of KSUs College of Agriculture. I am
looking forward to working with him as he
settles into his new role, and as he provides
visionary leadership for our Department of
Grain Science and Industry.
Smith brings a wealth of industry and
academic experience to KSU, the university
said. Prior to this new role, he worked nine
years as vice-president and research fellow
IRU &RQ$JUD )RRGV UHVHDUFK TXDOLW\ DQG
innovation team in Omaha, Nebraska, U.S.
He has also worked in research and developPHQWIRU6DUD/HH)RRGVLQ&LQFLQQDWL2KLR
86DQG-LPP\'HDQ)RRGVDGLYLVLRQRI
Sara Lee, in Memphis, Tennessee, U.S.
My career has focused on translating science into meaningful products for consumers,
Smith said. I believe educational excellence
is rooted in great teaching in conjunction with
motivated students and faculty. Cutting-edge
research can expose students to current science, and our students, faculty and staff have
an opportunity to impact the world through interacting with the industries we serve.
In his new role, Smith said he hopes to
continue the great tradition of the Department of Grain Science and Industry at KSU
while striving to make the department even
more relevant to students, the industry and
consumers of grain products. The diversity
of the department, he said, is a key advantage that can be further leveraged to address
critical challenges.
Smith received his
bachelors degrees in
chemistry and biology
from the University of
Tennessee at Martin. He
completed a masters
degree in organic chemistry and doctorate in
food science from Texas
Smith
A&M University.
As a food science scholar, Smith has authored or co-authored published research involving food product creation, food product
tests and shelf-life stability. Smith also has
served as a co-author on food science book

chapters and has developed or co-developed
QHDUO\SDWHQWVRUSDWHQWSHQGLQJWHFKQRORgies in food manufacturing. He has traveled to
present his research throughout the U.S. and
globally to places such as the U.K., Belgium,
Germany and India.
Among the professional societies in which
Smith belongs are the American Chemical

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American Meat Science Association.
In the private industry sector, Smith has
been recognized for business critical patents, consumer and business impact, product development, innovation and leadership excellence.
17
NEWSREVIEW
Port of Paranagu sets record for grain handling

PARANAGU, BRAZIL The Port of Paranagu on Dec. 30 reported its best December in the history of the complex.
,QWKHUVWGD\VRI'HFHPEHUWKHFRPSOH[KDVH[SRUWHGPRUH
than 982,700 tonnes of grain, a 31% increase from the previous record of 749,000 tonnes set in December 2012. The total is 47.5%
higher than the 665,800 tonnes reported last year.
According to Luiz Henrique Dividino, the president and chief execuWLYHRIFHURIWKHERDUGRIWKH3RUWRI3DUDQDJXiDQG$QWRQLQD$RSD
the expectation is that the coming months are also very productive.
The new 2014-15 soybean season is approaching and two new chargers at the subframe 213 will start operations at the end of February.
One of the shiploaders is ready and the second has just received the boom, the part that goes on the hold of the vessel for
the loading. This goes up to 30 meters on the boat, almost 10
meters longer than the current equipment, he said.

The larger ships reduce the time of shipment and cost by up to
10%, Dividino said. The new shiploaders can upload 2,000 tonnes
per hour, about 30% higher than the older equipment.
By the middle of the new year, we will have four new shiploaders. In the coming months more equipment will installed on the subframe 212 and another at 214, he said.
&RUQVWRRGRXWLQH[SRUWVDWWKHSRUWLQ'HFHPEHU,QWKHUVW
days of the month, the complex had received 12,337 truckloads, an
increase from 7,645 received the previous year.
In spite of this recovery observed in December, exports of maize
are still low, very much on account of low international prices of
the product. The origins of the grain has been primarily the states of
Parana, Mato Grosso and Goias.
Bullish economics may force grain prices lower

KANSAS CITY, MISSOURI, U.S. If history repeats itself, U.S.
wheat and corn prices, along with other commodities, may be exSHFWHGWRFRQWLQXHUPLQJLQWKHVKRUWWHUPDPLGHFRQRPLFWXUPRLO
in Russia, but higher values, propped by continued dollar strength,
will eventually start to choke off export demand and bring lower
prices, said Mike Zuzolo, president of Global Commodity Analytics
& Consulting LLC in Atchison, Kansas, U.S.
Zuzolo based his outlook on Commodity Research Bureau Index data and contended that current world economic conditions
showed an uncanny resemblance to market conditions of the late
1990s, including sharp declines in the value of the Russian ruble,
much lower world oil prices, a rising U.S. dollar and slowing
Asian economies, especially China and Japan, major importers
of U.S. crops.
KAHL Crown Expander
Flexible production of shaped products.

Preconditioning of pellet mixtures.
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AMANDUS KAHL GmbH & Co. KG Dieselstrasse 5-9 D-21465 Reinbek/Hamburg Phone: +49 40 727 71 0
info@akahl.de www.akahl.de
18
NEWSREVIEW
IGC forecasts world wheat production at 701 million tonnes

LONDON, ENGLAND The International Grains Council (IGC),
in its most recent Grain Market Report issued Jan. 22, preliminarily
forecast world wheat production in 2015-16 at 701 million tonnes,
down 2% from a record 717 million tonnes estimated for the current
\HDUEXWKLJKHUWKDQWKHUHFHQWYH\HDUDYHUDJH
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224.2 million hectares, 1% larger than the 2014-15 wheat area at
222 million tonnes. The forecast for 2015-16 was based on Northern
Hemisphere seedings of winter wheat, which were completed unGHUPRVWO\IDYRUDEOHZHDWKHUFRQGLWLRQVDQGDVVXPSWLRQVIRUVSULQJ
sowing of wheat across the Northern Hemisphere and later plantings
of wheat in the Southern Hemisphere.
Increased areas are projected in Kazakhstan, Ukraine, the United
States, Argentina, Near East Asia and North Africa, partly offset by
reductions in Russia and Brazil, the IGC said. Wheat areas in the
European Union, China, India and Australia are expected to be largely unchanged.
(8KDUYHVWHGDUHDLQZDVIRUHFDVWDWPLOOLRQKHFWDUHV
compared with 26.5 million hectares last year. The IGC noted while
planted area of common wheat was forecast to be slightly smaller
than in 2014, spring-planted durum area was expected to be larger
than a year ago.
:HDWKHULQWKH(8WKLVZLQWHUKDVEHHQQRUPDOZLWKVQRZFRYHUDGHquate across most areas when temperatures fell sharply in early January.
5XVVLDQKDUYHVWHGDUHDZDVIRUHFDVWDWPLOOLRQKHFWDUHV
smaller than in 2014, the IGC said. Of the total wheat planted area,
PLOOLRQKHFWDUHVZDVZLQWHUZKHDWZKRVHSODQWHGDUHDZDV
larger than for 2014.
*LYHQWKHFRXQWU\VGHWHULRUDWLQJHFRQRPLFVLWXDWLRQLQFOXGLQJ
high interest rates, currency depreciation, and, as a result, soaring
input costs, farmers may reduce plantings of spring wheat, which
typically account for about half of the total, the IGC said.
*LYHQWKHH[SHFWDWLRQIRUDVPDOOHUVSULQJZKHDWDUHDDQGZLQWHUNLOORIZLQWHUZKHDWOLNHO\WREHKLJKHU\HDURYHU\HDUDIWHUUHODWLYHO\
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was expected to fall from 2014.
7KH,*&IRUHFDVWKDUYHVWHGDUHDLQ8NUDLQHDWPLOOLRQKHFWDUHV
ODUJHUWKDQLQEDVHGRQDULVHLQZLQWHUZKHDWSODQWLQJV
DQGDQDVVXPHGDYHUDJHZLQWHUNLOO
7KH,*&IRUHFDVWZKHDWKDUYHVWHGDUHDLQ&DQDGDDWPLOlion hectares, up 5.7% from 2014. While winter wheat plantings in
Canada were estimated to be down about 25% from 2014 because
RIDODWHVR\EHDQKDUYHVWVSULQJZKHDWSODQWLQJVHVSHFLDOO\GXUXP
plantings, were expected to be higher than a year ago.
7KH,*&IRUHFDVWZKHDWKDUYHVWHGDUHDLQWKH8QLWHG6WDWHVDW
million hectares, up 2.6% from 2014. The IGC noted winter wheat
plantings were 5% lower than a year ago mainly because of planting
delays. But the IGC said larger expected spring wheat and durum
DUHDVDQGDQDYHUDJHUDWHRIDEDQGRQPHQWVKRXOGUHVXOWLQDQRYHUDOO
LQFUHDVHLQKDUYHVWHGDFUHDJHWKLV\HDU
&KLQDVZKHDWKDUYHVWHGDUHDZDVIRUHFDVWDWPLOOLRQKHFWDUHV
FRPSDUHGZLWKPLOOLRQLQDQG,QGLDVKDUYHVWHGDUHDZDV
IRUHFDVWDWPLOOLRQKHFWDUHVXQFKDQJHGIURP
7KH,*&IRUHFDVWZRUOGZKHDWFRQVXPSWLRQLQDWPLOlion tonnes, the same as the projection for the current year. World
IRRGXVHRIZKHDWIRUZDVIRUHFDVWDWPLOOLRQWRQQHVXS
IURPWKHIRUHFDVWIRUDQGEURDGO\PDWFKLQJWKHDYHUDJHUDWHRILQFUHDVHLQWKHSDVWYH\HDUVPDLQO\FHQWHUHGLQGHYHORSing countries in Asia and Africa, the IGC explained.
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tonnes, down 5 million tonnes from 2014-15.
World wheat trade in 2015-16 (July-June) was projected at 150
tonnes compared with a forecast 151 million tonnes in the current year.
Requirements in Egypt may fall as liberalization of local bread
subsidies continue to cut wastage in the supply chain, the IGC said.
19
NEWSREVIEW
Carrs Milling profit up on strong performance

CARLISLE, ENGLAND Carrs Milling Industries PLC recently
reported that earnings attributable to shareholders for the year ending
Aug. 30, 2014, increased 4.6% to 12,893,000 ($19,590,000), from
12,315,000 the previous year.
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year ago.
:H KDYH GHOLYHUHG DQRWKHU UHFRUG \HDU RI SUHWD[ SURW EXLOGing on successes of recent years, said Chris Holmes, chairman. In
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,Q WKH )RRG VHJPHQW SURW EHIRUH WD[ IRU WKH SHULRG LQFUHDVHG
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RSHUDWLRQDOHIFLHQF\DQGWKHFRPPHUFLDOEHQHWVGHULYHGIURPLQFUHDVHGFXVWRPHUFRQGHQFHLQRXUDELOLW\WRSURGXFHKLJKTXDOLW\
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Combined sales volumes of the companys other mills (Silloth
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The Maldon mill continued to increase its presence in the markets
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7KLV\HDUWKHUHKDVEHHQDVZLWFKIURPVRXUFLQJZKHDWIURPPDLQland Europe to a greater proportion sourced and shipped from the
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division, Holmes said.
,Q WKH $JULFXOWXUH VHJPHQW SURW EHIRUH WD[ IRU WKH SHULRG LQcreased by 9.5% to 9.6 million from 8.8 million the previous year,
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the period including contributions from associate and joint ventures,
increased by 4.3% to 12.1 million.
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Looking ahead, Davies said each of the divisions faces challenges
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in key markets.
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IRUJURZWKDQGRXUH[SHULHQFHGPDQDJHPHQWDQGVNLOOHGHPSOR\HHV
ZLOOHQDEOHXVWRGHOLYHUWKLVJURZWK'DYLHVVDLG7KHERDUGUHPDLQVFRQGHQWLQUHDFKLQJLWVIXOO\HDUH[SHFWDWLRQV
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Bay State Milling expanding in Arizona

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21
GRAINMARKET REVIEW
Rice
Markets under pressure amid
big stocks, slow demand
by Chris Lyddon
World rice production/ending stocks

(in 1,000 tonnes)
Production
Ending stocks
500,000
400,000
300,000
2014-15*
2013-14
2012-13
2011-12
2010-11
22
2009-10
2008-09
Rice markets remain slow and prices under pressure with new
crops weighing on a market overhung by big stocks and slowed by a 200,000
strong U.S. dollar.
Activity in global rice markets was generally thin in the period 100,000
since late November, with pressure from limited fresh buying interest and new crop supplies in key exporters weighing on sentiment,
0
the International Grains Council (IGC) said in its Grain Market report in late January. Highlighting the weaker tone, IGC GOI rice
sub-Index fell by around 2%.
Export values for white and parboiled grades in Thailand were
broadly steady in limited trade, it said. Following a year in which * Projected
Source: U.S. Department of Agriculture
exports surged to more than 10 million tonnes, recent activity was
especially sluggish, with added pressure from main crop supplies and projected for 2014-15, the ERS said. In contrast, both East Asia and
the governments huge intervention stockpile.
Southeast Asia are projected to harvest record rice crops in 2014Recent announcements indicating that efforts will be stepped up 15. South Americas rice production is projected to be up about
WRVHOODVLJQLFDQWDPRXQWRIVWRFNVLQDUHH[SHFWHGWRHQVXUH 1%, while production in Sub-Saharan Africa is projected to decline
that markets remain under pressure in at least the near term. As of slightly in 2014-15, it said.
Jan. 21, quotations for 5% broken were $3 per tonne lower than in
At 160.6 million hectares, global rice area in 2014-15 is fractionlate November, at $402 fob, the lowest since June of last year.
ally below the year-earlier record. The average global yield in 2014-15
The USDA attach in Thailand said in a weekly report dated Jan. is forecast at 4.41 tonnes per hectare (on a rough-rice basis), fraction15 that, most traders reported that foreign buyers are anticipating ally below 2013-14 and below the 2012-13 record of 4.45 tonnes.
export prices for Thai rice, especially white rice, may drop in FebruIn its rice price update, the United Nations Food and Agriculture
ary as supplies from Vietnams main-crop paddy production harvest Organization said that in December 2014, the FAO All Rice Price
HQWHUWKHPDUNHW+RZHYHUH[SRUWSULFHVIRU7KDLIUDJUDQWULFHUPHG Index (2002-2004=100) averaged 224 points, down by a striking 4%
VOLJKWO\UHHFWLQJVRPHH[SRUWHUVQHHGWRSXUFKDVHGRPHVWLFULFHLQ from November, and the fourth month of consecutive declines.
RUGHUWRIXOOOWKHLUH[SRUWFRPPLWPHQWV
Prices subsided in all the four market segments, in particular for aroElsewhere, broken rice markets in Vietnam were weighed by wor- matic rice, which weakened by 11% to a level not seen since November
ries about slower demand amid renewed competition from Thai- 2007, it said. Likewise, prices of the higher and lower qualities Indica
lands traders, especially in Asia, with values currently at close to softened by 2% and 4%, respectively, while Japonica prices retreated by
10-month lows, the IGC said.
2%. The general weakness that dominated the market in December was
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Export prices dipped most in Vietnam, India, and Pakistan as new
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In its Rice Outlook report in January, the USDAs Economic Re- Thailand, ERS said. Prices were weaker-to-stable in the Americas,
search Service suggested rice could get cheaper in the following UHHFWLQJSURVSHFWVIRUODUJHUFURSVLWVDLG
month. Prices will likely face downward pressure by February as
Over the full 2014 calendar year, the FAO All Rice Price Index avThailands main season harvest is nearly completed and the harvest eraged 235 points, slightly above the 233 points recorded in 2013, it
of Vietnams largest crop starts, likely stimulating stronger trade, the VDLG+RZHYHUSULFHVZHUHVLJQLFDQWO\GRZQIRUWKHWKUHHPRVWLPERS report said. Prices for all grades of Thailands regular-milled portant traded rice categories, namely the Higher Quality Indica, the
white rice are basically unchanged from a month earlier, largely due Lower Quality Indica and Aromatic Rice, which respectively shed 6%,
to recent light sales activity.
11% and 5% from 2013. Only the prices of Japonica rice strengthened
Price quotes from Vietnam have decreased over the past month, LQE\DVL]DEOHUHHFWLQJWKHYHU\WLJKWVXSSO\VLWXDWLRQWKDW
with sales weak except to China. U.S. prices for long-grain milled characterized that market segment for most of the year.
rice are unchanged from a month earlier as well.
The USDA now puts global rice production for 2014-15 at 475.5
Chris Lyddon is World Grains European editor.
million tonnes (milled basis), up 200,000 tonnes from the forecast
He may be contacted at: chris.lyddon@ntlworld.com.
made a month before but still 1.5 million below the 2013-14 record
JOREDOFURS,WLVWKHUVWGHFOLQHLQJOREDOSURGXFWLRQVLQFH We want to hear from you Send comments and inquiries to worldgrain@sosland.
com. For reprints of WG articles, e-mail reprints@sosland.com.
South Asia accounts for most of the decline in global production
COUNTRY FOCUS
Focus on Syria
Civil conflict, drought and sanctions
affecting countrys ability to produce
and purchase grain
by Chris Lyddon
Syria is wrestling with the affects of a poor harvest and a

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24
Key Facts
Capital: Damascus
Population: 17,951,639
Religions: Muslim 87% (official; includes Sunni 74% and
Alawi, Ismaili, and Shia 13%), Christian (includes Orthodox,
Uniate, and Nestorian) 10% (includes Orthodox, Uniate, and
Nestorian), Druze 3%, Jewish (few remaining in Damascus
and Aleppo).
Location: Middle East, bordering the Mediterranean Sea,
between Lebanon and Turkey.
Government: Republic under an authoritarian regime.
Chief of state: President Bashar al-Asad (since July 17,
2000); head of government: Prime Minister Wael al-Halqi
(since Aug. 9, 2012).
Economy: Despite modest economic growth and reform
prior to the outbreak of unrest, Syrias economy continues
to deteriorate amid the ongoing conflict that began in
2011. The economy further contracted in 2013 because of
international sanctions, widespread infrastructure damage,
reduced domestic consumption and production, and sharply
rising inflation. The government has struggled to address the
effects of economic decline, which include dwindling foreign
exchange reserves, rising budget and trade deficits, and the
decreasing value of the Syrian pound. The ongoing conflict
and economic decline have created a humanitarian crisis,
prompting widespread need for international aid. Prior to
the unrest, Damascus began liberalizing economic policies,
including cutting lending interest rates, opening private
banks, consolidating multiple exchange rates, raising prices
on some subsidized items, and establishing the Damascus
Stock Exchange. The economy remains highly regulated by the
government. Long-run economic constraints include foreign
trade barriers, declining oil production, high unemployment,
rising budget deficits, increasing pressure on water supplies
caused by heavy use in agriculture, rapid population growth,
industrial expansion, and water pollution.
GDP per capita: $5,100 (2011 est.); inflation: 59.1%
(2013 est.); unemployment: 17.8% (2013 est.).
Currency: Syrian pounds (SYP): 182.85 Syrian pounds
equal 1 U.S. dollar (Jan. 20, 2015).
Exports: $2.675 billion (2013 est.): crude oil, minerals,
petroleum products, fruits and vegetables, cotton fiber,
textiles, clothing, meat and live animals, wheat.
Imports: $8.917 billion (2013 est.): machinery and
transport equipment, electric power machinery, food and
livestock, metal and metal products, chemicals and chemical
products, plastics, yarn, paper.
Major crops/agricultural products: Wheat, barley,
cotton, lentils, chickpeas, olives, sugar beets; beef, mutton,
eggs, poultry, milk.
Agriculture: 17.6% of GDP and 17% of the labor force.
Internet: Code: .sy; 416 (2012) hosts and 4.469 million
(2009) users.
Source: CIA World Factbook
COUNTRY FOCUS
Syrian wheat situation

(in 1,000 tonnes)
5,000
Production
Imports
4,000
Despite low shipments to date, Syrias

imports are forecast to rise sharply, to
700,000 tonnes, due to a droughtaffected local harvest and limited
domestic milling capacity.
3,000
2,000
1,000
0
2014-15*
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
* Projected
Source: U.S. Department of Agriculture
safe haven in the camps which identify them and put them
with the refugees.
The charity points out that Syrian refugees now constitute the largest population of refugees in the world.
The most recent figures published by the International
Grains Council (IGC) show that Syrias total grain production fell sharply in 2014-15 at 2.6 million tonnes from
5.2 million in 2013-14. The countrys production of wheat
fell to 2.1 million tonnes from 4 million the year before.
Barley production fell to 400,000 tonnes from 900,000
the year before.
It means a rise in imports, and Syrias wheat imports are
forecast to rise to 2.2 million tonnes from 1.5 million tonnes
the year before. Syria is forecast to import 500,000 tonnes of
maize, up from 400,000 in 2013-14. Barley imports are forecast to rise to 300,000 tonnes from 200,000.
7KH FRQLFW LQ 6\ULD FRQWLQXHV WR LPSDFW WKH KXPDQLWDULDQVLWXDWLRQUHVXOWLQJLQVLJQLFDQWKXPDQLWDULDQQHHGVWKH
World Food Programme said on its website. Access to basic
needs including food, water, electricity and medical supplies
has been interrupted in areas witnessing armed activities. A
growing number of main breadwinners have become unemployed and soaring food and fuel prices across the country
have also exacerbated the situation.
In response, WFP in partnership with the Syrian Arab
Red Crescent (SARC) and 23 other local organizations is
providing monthly food assistance to close to 3 million Syrians and will scale up to feed 4 million people by October.
Food rations contain rice, bulgur, pasta, dried and canned
pulses, oil, tomato paste, salt and sugar, and are enough for
one month.
With serious bread shortages across the country, in April
:)3DOVRVWDUWHGWKHGLVWULEXWLRQRIZKHDWRXUSURYLGLQJ
NLORJUDPVRIRXUSHUSHUVRQSHUPRQWKLWVDLG
WFP uses over 700 trucks a month to dispatch food to
26
hundreds of distribution points across the country, as well as

delivering other goods for the humanitarian community.
+XQGUHGVRIWKRXVDQGVRIIDPLOLHVKDYHHGWKHYLROHQFH
in their country and have taken refuge in Iraq, Jordan, Lebanon, Turkey and Egypt. Humanitarian needs assessments in
these countries showed that food is a top priority and WFP is
responding to refugees needs with food distributions and innovative food vouchers.
The news agency Reuters reported in January on the effects
RI WKH FRQLFW RQ IDUPHUV LQ WKH UHJLRQ 6\ULDQ IDUPHUV LQ
Islamic State-held territory say production was hit by the conLFWSRRUUDLQIDOODQGIXHOVKRUWDJHVWKHDJHQF\VDLG6HYeral told Reuters that Islamic State did not help farmers plant
and did not purchase their harvest as the Syrian government
used to. Instead, farmers say they were forced to look for new
buyers and often fell prey to avaricious middlemen.
The website Syria Direct reported on protests in January.
Residents of the rebel held city of Rastan in the northern
Homs countryside protested Wednesday night to blame traders and local rebel leadership for a three-month long bread
shortage, according to video footage of the protests posted on
YouTube, it said in a report published Jan. 8.
If the regimes bombs or the cold dont kill us, these
EORRGWUDGHUVZLOOWKH\PRQRSROL]HWKHRXUDQGWUDGHLQ
peoples daily food, Yusuf Shahab, a civilian in Rastan, told
Syria Direct.
FLOUR IMPORTS SET TO JUMP
Despite low shipments to date, Syrias imports are forecast to rise sharply, to 700,000 tonnes, due to a droughtaffected local harvest and limited domestic milling capacity, the IGC said.
6\ULDVZKHDWRXULPSRUWVKDYHULVHQVKDUSO\LQUHFHQW
\HDUV ,Q WKH\ ZHUH WRQQHV WKH ,*& Jures show. They rose to 181,000 tonnes in 2012-13, before
reaching 473,000 tonnes in 2013-14.
According to a report published by the Al Arabiya news service at the end of 2013, a combination of insecurity and powHU FXWV UHGXFHG 6\ULDV GDLO\ RXU RXWSXW FDSDFLW\ WR
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Wael al-Halqi told parliament.
$O$UDEL\D VDLG WKDW 6\ULD KDG VWUXJJOHG WR EX\ RXU DQG
grain through tenders, partly because of U.S. and E.U. sanctions. The sanctions do not cover food, but those on banking,
COUNTRY FOCUS
in addition to asset freezes, have made

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According to the United Nations Food and Agriculture

Organization (FAO), an estimated 6.8 milion people in
Syria are facing severe food insecurity.
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Chris Lyddon is World Grains European editor. He
may be contacted at: chris.lyddon@ntlworld.com.
27
FEATURE
30
ETHIOPIA
STRIVING FOR GRAIN SURPLUSES
Increased cereals production has helped the country drop undernourished

rate from 75% to 35% over last quarter century
by David McKee
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WHEAT MILLING
:KHDWPLOOLQJKDVXQGHUJRQHG\QDPLFFKDQJHVVLQFHWKHIDOOLQRIWKH
The SDTV Bulk Terminal is a privately owned company with exclusive concession to all dry bulk cargo handled within the Port of Djibouti. The bagging section has 12 fixed bagging lines subdivided into grain and fertilizer stations. The grain bagging station lines 1-6 have a nominal capacity of 60 tph per line
and 6,000 tonnes per day on average. Photos courtesy of VIGAN.
31
FEATURE: ETHIOPIA STRIVING FOR GRAIN SURPLUSES
communist regime that had nationalized

the sectors 11 private industrial mills
after coming to power in 1974.
The re-privatization of those large
PLOOV ZDV FRPSOHWHG RQO\ DERXW YH
years ago. In the meantime, over 250
new wheat milling enterprises have
sprung up. These are scattered around the
country in all the wheat growing zones
and population centers. Most have capacity of just 20 tonnes to 50 tonnes per day.
At least half are a single type an inexpensive 30-tonne per day capacity plant
made by a Chinese manufacturer.
Total national wheat milling capacity
is around 10,000 tonnes per day, which
far exceeds the amount of wheat available. The actual grind of domestic and
imported wheat by these mills may be
in the range of 1 million to 1.5 million
tonnes, amounting to one third to one
half of their overall capacity. However,
WKHUHLVQRRIFLDOGDWD
Many small millers blend maize into
EUHDG RXU WR PDNH XS IRU WKH LQDGequate supplies of wheat.
In the last few years there has been a
major addition in pasta production lines
by millers, in part because its prices are
not government regulated.
GOVERNMENT WHEAT
Heavy government intervention
serves to limit the amount of wheat
available to millers.
Since around 2009, the Ministry of

Trade has operated a scheme to provide imported subsidized wheat to private sector millers in order to maintain
[HGRXUDQGEUHDGSULFHVLQWKHFLWLHV
Millers receive bimonthly allocations of
imported wheat from government warehouses at a price of 550 birr per quintal
($275 per tonne), regardless of the international price, amounting to a subsidy
of about 40% to urban consumers.
The mills must provide their own
WUXFNV WR UHWULHYH WKH ZKHDW (DFK
mill in turn produces 73% extraction
RXUWKDWLVGLVWULEXWHGWRDGHVLJQDWHG
JURXSRIQHDUE\LQGXVWULDOEDNHULHV
as many as 30 for large millers at the
[HG JRYHUQPHQW SULFH %DNHUV PXVW
sell their bread at government prices
as well.
0LOOV PDLQO\ SURW E\ IUHHO\ VHOOLQJ
WKHEUDQDWPDUNHWSULFHVWKDWFDQJRDV
high as $200 per tonne in the dry season.
(WKLRSLDKDVDPRQJWKHODUJHVWOLYHVWRFN
numbers in Africa. Pastureland has decreased as cropland expanded.
Commercial mills buy wheat from
the domestic harvest starting in late
November, but once this runs out
they become largely dependent on the
VWDWHRZQHG (WKLRSLDQ *UDLQ 7UDGH
(QWHUSULVH(*7(IRUVXEVLGL]HGDOORcations of imported wheat. Large millers frequently complain that they are
VXSSOLHG ZLWK VXIFLHQW ZKHDW WR UXQ
The SDTV Bulk Terminal has two pneumatic shore unloaders that each have a peak capacity of 300 tph.
32
their mills only several days per month.

7R VDYH IRUHLJQ H[FKDQJH (*7( LQ
2013 began purchasing domestic wheat
for subsidized allocation to mills, further increasing governments control
over the sector but not increasing overall wheat availability.
GOVERNMENT IMPORTS
The milling sector has few options.
6LQFH WKH ODWH V (*7( KDV H[ercised a monopoly over commercial
wheat imports by means of foreign exFKDQJHFRQWUROVWKDWPDNHLWLPSRVVLEOH
for private sector millers to procure
wheat internationally. Formerly they
were free to import on their own.
*RYHUQPHQWSODQQHUVFRQGXFWLQWHUnational tenders based on estimates of
the domestic harvest. However, crop
size is typically over reported by ofFLDOV VHHNLQJ WR PHHW WDUJHWV DQG
ZKHDW GLVDSSHDUV IURP WKH PDUNHW
sooner than expected.
,Q EDNHUV VKHOYHV ZHUH IUHquently empty of subsidized products in
the second half of the year due to wheat
shortages experienced by millers.
$OO RI ODQGORFNHG (WKLRSLDV ZKHDW
imports pass through Djibouti on the
*XOI RI $GHQ ,W LV EDJJHG DW D VLQJOH
ship unloading terminal and transported
E\ WUXFN WR ZDUHKRXVHV LQ HDFK VWDWH
Industry observers note that introducWLRQ RI EXON WUDQVSRUW DQG VWRUDJH IRU
imported wheat could save the government and food aid donors up to 10% of
the delivered cost of wheat.
FOOD AID
(WKLRSLDKDVDORQJKLVWRU\RIUHFHLYing large annual shipments of humanitarian wheat and other cereals provided
mainly by USAID and the World Food
Programme, and since 2011 through
VRIW :RUOG %DQN ORDQV WR WKH JRYHUQment. Importation of cereals for food
aid has been 500,000 to 800,000 tonnes
per year since 2009 despite the governments frequently stated intention to end
its dependence on international assistance. Wheat is the biggest component
RI WKH IRRG EDVNHWV WKDW DUH GLVWULEXWHG
Years
Mhlenchemie
we never sleep.
t Flour improvement
As the international market leader in our improvement and our fortication, Mhlenchemie
operates in over 100 countries worldwide. Our
branches in Germany, Singapore, Brazil, China,
India, Mexico, Russia and Poland advise our
customers on the spot and collaborate closely
with our own laboratories and trial bakeries,
of which we have several around the globe.
So when the staff of our facility in Wujiang, near
Shanghai, make their way home at the end of
the day, work has already started in Mexico
City and of course no-one turns the light off
before an individual solution has been found
for each of our customers.
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A member of the Stern-Wywiol Gruppe
info@muehlenchemie.de
www.muehlenchemie.de
FEATURE: ETHIOPIA STRIVING FOR GRAIN SURPLUSES
to vulnerable rural households during

the lean months leading up to harvest.
A typical handout is 15 kilograms of
wheat per household member.
Given the high, unmet wheat demand
from millers, a large percentage of this
free wheat is inevitably bought up by
WUDGHUV &ROOXVLRQ RI FRUUXSWORFDORIcials and transport companies to divert
shipments, and, more often, the desire
RIPRVWEHQHFLDULHVWRHDUQFDVKIURP
the sale of some of their food basket
usually means a steady illegal supply of
food aid wheat to commercial millers.
In some regions sorghum has been substituted for wheat in the last two years to
UHGXFHEHQHFLDU\VDOHV
Unfortunately, the distortions in the
market caused by food aid along with
the government monopoly on commercial wheat imports has made Ethiopia
a no-go zone for international milling groups despite its enormous market
potential. The one exception is Tiger
Brands of South Africa, which in 2011
acquired a 51% interest in the 68-yearold wheat mill of heavily indebted East
Africa Group. The company has a plan
for a large new milling complex at a
JUHHQHOG VLWH QHDU $GGLV $EDED IRU
wheat, maize, teff and other grains.
urban consumers buying from retail

vendors who use hammer mills to grind
it and other grains. However, increasingly injera bread is made commercially
for sale to busy, well-off households.
As a non-gluten grain, teff has potential demand in many rich countries,
especially those with a large Ethiopian
diaspora, but its export has been banned
for several years in order to keep domestic prices stable.
MAIZE
Introduction of hybrid maize varieties has been a major success story in
Ethiopian agriculture, helping to boost
production to 6.5 million tonnes in the
current crop year on 2 million hectares.
Eight million farmers grow maize, making it the number one cereal crop.
Maize is increasingly cultivated in
moister lowland areas including on
corporate farms with foreign investors
who have taken long-term leases from
the government on large tracts of untilled land. There is no land tenure in
Ethiopia. Government ownership of all
land including farmlands is a vestige of
the communist era.
If current yield trends continue,
Ethiopia has the potential to become an
important exporter of non-GMO white
TEFF
maize. Only 12% of maize farmers are
7HIILVWKHPRVWFXOWXUDOO\VLJQLFDQW using improved seed, but the quasi-govcereal in Ethiopia as well as in neigh- ernmental Agricultural Transformation
boring Eritrea, the only countries where Agency (ATA), supported by large
it is grown in large quantities. The ultra- Gates Foundation grants, has a major
small round grain has the largest planted program to increase the access of growarea of any crop at over 3 million hect- ers to such seed and provide training in
ares, but yields are the lowest of any ce- fertilizer application.
real at about 1.3 tonnes per hectare. The
harvest averaged 3.8 million tonnes the SORGHUM AND MILLET
last three years.
Since 1990, sorghum production has
The ancient grain is preferred for nearly quadrupled to an average of 4
making the fermented, spongy injera million tonnes the last few years on 1.7
bread that is the staple of the Ethiopian million hectares. Of Ethiopias producdiet. The relatively well-to-do urban tion, a certain share ends up via unofpopulation so value this traditional food FLDOFURVVERUGHUWUDGHLQ6XGDQ
that teff has become mostly a cash crop
Much of this may then get re-exportfor farmers who sell their entire output ed to Eritrea with which Ethiopia has
and buy less expensive cereals for their had no direct trade relationships since
own consumption.
the last war between the two countries
The teff value chain mostly ends with closed borders. Millet production has
34
increased from just 140,000 tonnes in

1990 to 800,000 tonnes last year.
BARLEY
Barley, with 1.9 million tonnes of production in 2013-14, ranks fourth among cereals crops. It is grown at higher elevations
than wheat, from 2,300 to 3,000 meters.
Production has expanded much more slowly than the three top cereals. Ethiopians
both consume barley and use it to make a
traditional beer, but its importance in their
overall diet has declined in favor of higher
yielding maize and sorghum.
By 2011, the government had auctioned
off a number of state-owned brewing
enterprises generating $500 million for
state coffers from the likes of Heineken,
Diageo, Castel Group and others.
There are two malting plants that
have undergone expansion to meet the
tripling in consumption of industrially
brewed beer in less than 10 years. In
spite of efforts to introduce improved
varieties of malting barley through
farmers cooperatives, these plants
still import part of their malting barley. Breweries also buy barley malt in
Europe while waiting for the local malsters to complete capacity additions.
FUTURE
Notwithstanding its longtime reliance
on international food aid, Ethiopia has
already demonstrated its ability to not
only feed its own burgeoning population through increased cereals yields,
but also to generate a large net surplus
in agricultural trade through exports of
FRIIHH FXW RZHUV OHJXPHV ELUGVHHG
livestock and a widening assortment of
RWKHU UXUDO SURGXFWV 7KXV GLYHUVLHG
agriculture has become the basis of an
growing economy that will continue to
lift millions out of extreme poverty.
David McKees grain industry consultancy, Key
International LLC, provides market research,
feasibility analysis, technical studies and project
guidance to companies and organizations. He
can be reached at davidmckee59@msn.com.
FEATURE
CWB
taken off life support

G
lobalization is a force thats dramatically changing the

world forever.
Among changes sweeping the globe is the recently signed Canada and European Union Comprehensive
Economic and Trade Agreement (CETA) that overshadows
even the terms of North American Free Trade Agreement in
its depth and with many other multilateral and bilateral free
trade agreements still on the drawing board.
These agreements between governments represent a sea
change in world trade, national alliances and lifestyles, for better or for worse. As with everything else, they are driven by new
and larger generations of people that want and demand a better
standard of living, employment, nutritious food and education.
But these changes do not come without demanding changes
by the players themselves. For example, Canadas success in
entering into a trade agreement with the European Community
did not come without changes to the Canadian Wheat Board
(CWB), a powerful and deeply rooted monopoly that controlled Western Canadas all-important wheat and barley industries and, thereby, the livestock and poultry industries and
the milling and brewing industries that depended on them.
Its regulations, such as those that prohibited Canadian farmers from selling grain across the U.S./Canada border, were
powerful enough to jail individuals who attempted to sell
grain outside of the wheat board area and were also powerful
enough to control farmers income by selling their grain at a
concealed price and then paying them for the grain in three
payments sometimes stretching over 18 months.
But most seriously, the board effectively removed Canadian
grain farmers from the global marketplace and created a situation
where Canadian wheat and barley (and at one time oat) farmers
did not know their customers, their likes, dislikes, needs or opportunities. They did not know, and were not told, what kind of
36
by Leo Quigley
A number of companies whose

names have yet to be revealed have
reportedly expressed interest in
purchasing the wheat board
QDQFLDOGHDOVZHUHPDGHRUZKDWQHZRSSRUWXQLWLHVH[LVWHG
It was also a powerful monopoly that grain farmers in other
countries, such as Europe, didnt trust and presented a very
large blockade along the road to signing a free trade agreement with the European Union an agreement that stood to
EHQHWPDQ\RWKHUVHFWRUVRIWKH&DQDGLDQHFRQRP\
Today, with its monopolistic powers gone, the CWB, which
was never, by law, allowed to own stationary assets such as
grain elevators or terminals, has little left to offer the grain
industry other than a small group of skilled marketers with
excellent contacts, some grain railway cars, a state-of-the-art
grain vessel, custom-built to operate on the Great Lakes (one
RI WZR RUGHUHG DQ RIFH EXLOGLQJ LQ :LQQLSHJ 0DQLWRED
Canada, and some grain handling assets purchased or having launched construction following the highly controversial
change on Aug. 1, 2012 as a result of Bill C-18,
When the Harper Government stripped the board of its powers, it also set a deadline that would have seen the board privatized by 2017. However, since that time both the government
and the board now apparently favor advancing that deadline
and expressions of interest to parties interested in purchasing
(Continued on page 40)
www.symaga.com
symaga@symaga.com
Symaga, the first industrial silo

manufacturer obtaining CE Certificate
Visit us:
RICE MILLING EXPO
RICE TECH EXPO
GRAIN TECH MIDDLE EAST
06-08th February,
Karnal, India
Stand 8
13-15th February,
Warrangal, India
Stand ASP-51
23-25th February,
Cairo, Egypt
Hall 19
Offices and Factory:

Ctra. de Arenas km. 2,300
13210 Villarta de San Juan t Ciudad Real- Spain
T: +34 926 640 475 t F: +34 926 640 294
Madrid Office:
C/ Azcona, 37 t 28028 Madrid - Spain
T: +34 91 726 43 04 t F: +34 91 361 15 94
FEATURE: CWB TAKEN OFF LIFE SUPPORT
CWBS ASSET LIST

Headquarters building: The Canadian Wheat Boards headquarters, located a short distance from Portage and Main at 432
Main, Winnipeg, Manitoba, has already been sold. Colliers International real estate once described the eight-story building as
having over $17 million in capital improvements since 2006,
including a complete floor-by-floor renovation of the building.
Also, the building offers highly efficient open-area workstation
environments, a beautiful executive floor/boardroom, employee
cafeteria and fitness facility, large training centers and numerous
meeting rooms, and an onsite daycare facility.
The board also continues to operate marketing offices in Beijing and Tokyo.
Grain cars: In the 1970s and early 1980s, the board purchased
a fleet of 3,200 covered hopper (cylindrical) cars that it leased
out to Canadas two largest railways. The purchase was part of
a 13,500-steel-hopper-car purchase by the federal government
(1,000 aluminum cars were also purchased in 1973-1978 but later
sold as scrap), the purchase of 900 cars by the Province of Saskatchewan and 1,000 cars by the Province of Alberta.
In a presentation to the House of Commons, Canadas Standing Committee on Transport recommended that Transport Canada
arrange for the sale of the cars. The following companies/groups
were said to have previously expressed interest:
CN Rail that proposed purchasing the cars currently in service with CN.
CP Rail proposed to maintain the status quo with the government of Canada retaining the cars and entering into a long-term
operating agreement with the railways. However, if the federal government wished to exercise its right to sell the fleet, CP would make
an offer to purchase some of the fleet at that time;
Farm-Industry Partnership (FIP) The FIP proposal called for
the formation of a leasing company with a lease to buy option for
the cars which would equal $5 million per year for 20 years.
Farmer Rail Car Coalition (FRCC) the FRCC recommended
the federal government sell the cars to them for a nominal fee to
lease on a not-for-profit basis.
Transport Canada also said that government retention of the
cars was also an option under consideration.
CWB cars could possibly be included as part of this dispersal plan.
Grain ships (Lakers): Prior to being stripped of its monopoly, the
wheat board arranged for the construction of two state-of-the-art grain
ships (Lakers) designed to carry bulk cargo throughout the Great Lakes
system to export terminals in the St. Lawrence and U.S. grain terminals.
One of those ships has now been delivered.
The Lakers are Equinox-class low emission bulk vessels that
carry more cargo, sail faster and consume less fuel than their
predecessors. The CWB plan was to have the vessels managed
and operated by Algoma Central Corp., which has the largest Canadian fleet on the Great Lakes-St. Lawrence Waterway.
The plan was to have the vessels carry grains, oilseeds and pulse
crops and other bulk commodities, such as iron ore when grain
shipping slows, with revenues being returned to the wheat board.
Lakehead terminal: Mission Terminal Inc., Thunder Bay, On38
tario, was one of the first purchases made by CWB after Bill C-18
came into effect. The terminal handles producer cars, owns producer car loading facilities in Western Canada, and provides farmers with an advisor and phone app to assist them in ordering a
producer car (A producer car is a grain car an individual farmer
orders directly, loads on a siding away from an established elevator and ships directly to the buyer or loading terminal bypassing
established elevator companies).
Winnipeg-based Mission Terminal Inc. handles wheat, durum,
barley, canola, rye, flax, peas and oats, and industrial products:
Mission Terminal located at the mouth of the Mission River
with a licensed storage capacity of 136,500 tonnes and a handling
approximately 1.5 million tonnes annually.
Les lvateurs des Trois-Rivires, located in Trois-Rivires, Quebec, that can receive, store and load grain. The facility has a storage
capacity of 110,000 tonnes of grain and can receive grain by ocean
ship, laker, rail or truck. It is one of the few facilities on the St. Lawrence that can accommodate vessels up to Panamax size.
Services Maritimes Laviolette (SML), in TroisRivires, Quebec, offering stevedoring and related services
Inland grain terminals:
Bloom, Manitoba (March 23, 2014): construction of the
boards first state-of-the-art grain elevator west of Portage La
Prairie in Bloom, Manitoba. The elevator is expected to be ready
to receive grain for the 2015 harvest. Once completed, the facility
will feature 34,000 tonnes of storage, railcar loading rates of up to
60,000 bushels per hour with a 130-car loop track.
Colonsay, Saskatchewan (April 10, 2014): construction of a
terminal with 42,000 tonnes of storage with a 134-car loop track
capable of loading 1,600 tonnes per hour. The terminal will be ready
to receive grain this autumn.
Dodsland, Saskatchewan (June 9, 2014): Prairie West Terminals facilities included in the acquisition were The Concrete located between the communities of Dodsland and Plenty, Kindersley
and Luseland. Together, the facilities include over 78,000 tonnes of
storage, a high capacity grain cleaning line, high throughput dryer,
color sorters and high throughput rail loading
Leader, Saskatchewan (Aug. 29, 2014): the board announces
the purchase of Great Sandhills Terminal, a 23,400-tonne high
throughput terminal serviced by the Great Sandhills shortline railway
operating over 197 kilometers between Swift Current and Burstall,
Saskatchewan. The terminal is scheduled to open January 2016. The
board also assumes a majority stake in the shortline railway.
Pasqua, Saskatchewan (Sept. 4, 2014): features 42,000
tonnes of storage capacity and is set to open in January 2016. The
terminal will have a car-loading rate of up to 1,600 tonnes per hour,
a 134-car loop track and cleaning facilities.
St. Adolphe, Manitoba (Oct. 3, 2014): A new terminal featuring 34,000 tonnes of storage. Scheduled to open in early 2016.
Equipped with a 134-car loop track, loading rate of up to 1,600
tonnes or 60,000 bushels per hour, 33,900 tonnes of storage and a
130-car loop track with a loading capacity of 1,600 tonnes per hour
and cleaning facilities.
FEATURE: CWB TAKEN OFF LIFE SUPPORT
(Continued from page 36)

and operating what remains of the board
have been circulated.
The list of companies/organizations
that have expressed an interest has not
been revealed. However, one group,
Farmers of North America, based in
Saskatoon, Saskatchewan, Canada,
ZDV DEOH WR JDUQHU VXIFLHQW QDQFLDO
support from farmers/shareholders
roughly C$250 million to make an
offer for the board.
An offer by a group of farmers wanting
to launch a Western Canadian grain handling company was nothing new in the
west and is, in fact, an ingrained event
in the history of the Prairie Provinces.
Low grain prices and mistrust of the existing grain companies and railways at
the beginning of the 20th century led to
an agrarian revolution that eventually
resulted in the establishment of farmer-owned grain co-operatives, such as
Saskatchewan Wheat Pool and United
Grain Growers, with thousands of loyal
farm customers and a powerful political
network throughout Western Canada.
But even though the Saskatoon group
was following a well-traveled path in
proposing the takeover of the board by
farmers, its proposal was turned down
DWO\DQGZLWKRXWH[SODQDWLRQ
Without providing reasons for the
UHMHFWLRQLWVGLIFXOWWRNQRZZK\WKH
farmer-based proposal was rejected,
but it was probably because the board
(read federal government) was not interested in establishing another small,
farmer-owned grain handling company
in Western Canadas present marketing
environment that is now controlled primarily by two multi-nationals, Swissbased Glencore International (Viterra)
and Minneapolis-based Cargill and one
private long-standing Canadian company, Richardson International, owned by
the Winnipeg, Manitoba, Canada-based
Richardson family.
Most likely, the board felt that in this
league a small farmer-owned company
would have little chance of survival and
DODUJHUUPZRXOGKDYHDEHWWHUFKDQFH
of competing in international markets.
40
7KH SODQ VHHPV WR EH WR QG D FRPpany that will work with the CWB to
build a company capable of meeting the
competition that now exists in Western
Canada and is interested in handling and
marketing not only wheat and barley,
but the wide diversity of crops that are
now being grown in the west.
Again, without knowing which companies have responded to the boards
FDOO IRU SURSRVDOV LWV GLIFXOW WR NQRZ
who the contenders might be, but the list
probably includes:
Archer
Daniels
Midland,
Decatur, Illinois, U.S., with worldwide
operations that recently attempted to
purchase GrainCorp Australia. At the
present time this company leads in
speculation on the street.
Cargill Canada, Minnetonka,
Minnesota, U.S., already well established in Western Canada and the
company that purchased the former
Australian Wheat Board.
Louis Dreyfus, French-based with
worldwide operations. Already established in Canada with 10 elevators and
an oilseed crushing plant.
Bunge, White Plains, New York,
U.S., that already has oilseed crushing
operations in Canada and facilities in 40
countries globally.
CBH Group, an Australian-based
farmer-cooperative.
CHS Inc. a U.S.-based company
that already owns over 15 retail stores in
Western Canada.
Olam International, Singaporebased with operations in 65 countries
and 24 facilities in the U.S.
Marubeni Corp., Based in Japan
that recently entered into a joint venture
with U.S.-based ADM
As might be expected, the controversial move by the federal government
has led to at least one class-action suit
by farmers. In a suit launched February
2014, the farm group, Friends of the
Canadian Wheat Board, estimated the
CWB owes Western farmers roughly
C$17 billion.
In the Supreme Court of Canada
Stewart Wells, chairman of the group,
said the value of ongoing business, the

assets including a contingency fund the
board had set aside, and the misallocation of funds during the transition period
amount to a $17 billion loss to Western
farmers. He went on to say that The
Friends of the Canadian Wheat Board
believe the brand and the good name of
the farmer-owned CWB is also a form
of property built and paid for by farmers, and the court should address this
very substantial loss.
In a recent prepared statement, the
CWB said the assets are not going to be
given away as claimed and Our objectives are to develop a strong and viable grain-handling company in Canada
that can compete with the best in the
business and to give farmers an opportunity to have an ownership stake. CWB
is not being sold or given away. We are
securing an investor to partner with farmers to ensure there is a strong and viable
CWB for today and the next generation.
However, one thing not mentioned
is the fact that Canadians will participate in a federal election Oct. 19, 2015.
While it is supposed to be the countrys
UVW[HGHOHFWLRQGDWHHOHFWLRQHHULQJ
is already beginning and there is a possibility it could happen much earlier. An
Angus Reid Global poll in early 2015
indicated the Conservative Party of
Canada, which is now the government,
led with 35% of decided support among
likely voters while the Liberal party
stood at 32% and the New Democrats
WKH2IFLDO2SSRVLWLRQDW
At this point its a close race. What either the Liberals or NDP would do with
the wheat board issue if they were to gain
power is unknown, but there is a good
FKDQFHSODQVWRQGDVHFXUHLQYHVWRU
for the board could be shelved before the
marriage is consummated.
Based in Vancouver, British Columbia, Canada,
Leo Quigley writes for a variety of national
and international publications specializing
in agriculture and transportation. He can be
reached at Quigley@dccnet.com.
FEATURE
Europes largest port

keeps growing
EUROPES
LARGEST PORT
KEEPS GROWING
O
ver the last few years, the Port of Rotterdam has taken
steps to upgrade its infrastructure and offerings for the
companies that operate in the port and those who ship
items to and from the Northwestern Europe transportation hub.
As the largest port in Europe by throughput, Rotterdam occupies
a strong position among the other international trade centers.
The Rotterdam Port Authority has made investments and arrangements to maintain its status as a leading global port. The
Port of Rotterdam Authority encourages stevedores to expand
WKHLUVWRUDJHFDSDFLW\0DUNHWVRXUFHVKDYHFRQUPHGWKDWVXSSO\
of storage creates demand, Hugo du Mez, advisor Dry Bulk &
Energy at the Port of Rotterdam told World Grain in a recent interview. We aim to position the Port of Rotterdam as the complete
Agriport both for imports and exports of agricultural commodities.
Through Port of Rotterdam International, we are active in
Brazil and have entered into a joint venture with TPK (Terminal
Presidente Kennedy) Logistica to develop Porto Central, a greenHOGSRUWWKDWZLOOEHEXLOWLQWKHVRXWKHUQPRVWSDUWRIWKH%UD]LOLDQ
state of Espirito Santo. This deep sea port will be designed to handle oil, gas, dry bulk (like grains), containers and general cargo,
besides serving as a support center for the offshore sector.
Grain traders are looking for opportunities to bring central European grain to Rotterdam for overseas exports. And,
we see a trend in grain shipping where larger Panamax vessels are being used. We think this offers the opportunity to
attract cargo. Especially because some of the competing
ports in Northwest Europe are rather shallow.
The Port of Rotterdam and companies that operate within it
Port of Rotterdam is the largest port in Europe by throughput. Photo by
Freek van Arkel.
42
by Meyer Sosland
Grain traders benefiting from

Port of Rotterdams upgrading of
its infrastructure
have been making investments to improve the infrastructure
and thus the operations of the port.
The development of a land reclamation project called
Maasvlakte 2 was the biggest civil engineering project in
the Netherlands since the Delta Works, du Mez said. The
area opened on May 22, 2013 and will be used for container
KDQGOLQJDQGLQGXVWU\7KRXJKQRWVSHFLFDOO\DLPHGDWJUDLQ
handling, there could be opportunities, because one of the
WKLQJVZHDUHORRNLQJDWLVELRUHQLQJIRUDGYDQFHGIXHOVDQG
bio-chemicals. Possible feed stocks are woody biomass and
agricultural commodities like sugar.
0RUHVSHFLFWRWKHJUDLQLQGXVWU\DIHZFRPSDQLHVKDYH
made storage and infrastructure investments that impact the
industry directly.
In 2013, stevedoring company Dordrecht, Netherlandsbased ZHD built four new sheds for the covered storage of
agricultural commodities and biomass (wood pellets).
Rotterdam-based European Bulk Services (EBS) has
built a 65,000-meter cubed shed at its Europoort Terminal.
The new storage facility became operational June 2014.
Also, the existing deep-water jetty at the Europoort has
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FEATURE: EUROPES LARGEST PORT KEEPS GROWING
Total agribulk throughput in the Hamburg - Le Havre range, 2013

Hamburg
Bremerhaven
Wilhelmshaven
Amsterdam
Rotterdam
8.0
0.7
0.0
8.4
10.3
Zeeland Seaport
Antwerp
Ghent
Zeebrugge
Dunkirk
Le Havre
0.9
0.8
1.2
0.1
1.6
0.0
Unit: Gross weight x million tonnes

Source: Port Authorities
UHFHQWO\ EHHQ H[WHQGHG E\ WKH 3RUW

Authority). Together with this new jetty,
EBS will be able to accommodate two
deep sea vessels with a draught of up to
16 meters.
U.K., Scandinavia and the Baltic.

Secondly, three major unique selling
SRLQWVRIWKHSRUWDUHRSWLRQDOLW\H[LELOLW\DQGHFRQRPLHVRIVFDOHGX0H[FRQtinued. Optionality: the wide choice of
competing stevedoring companies and logistic service providers in the port guarantees a high service level against attractive
SULFLQJ )OH[LELOLW\ WDLORUPDGH VROXWLRQV
are possible for different clients, like shipto-ship transfer, open or covered storage
in sheds or silos. We also offer intermodal services for transport by barge, truck
or rail or a combination of them. And last
but not least, the unrivalled economies of
scale in both handling and storage of (agricultural) commodities.
estuary of the rivers Rhine and Maas.

Barges are utilized for reliable and costeffective movement of larger volumes to
and from, among other places, Belgium,
Germany, France, Central Europe and,
of course, the Netherlands itself.
DEPTH, LOCATION
The port is the start and end of the
2QH RI WKH GHQLQJ UHDVRQV IRU WKH Betuweroute, a160-kilometer dedicated
3RUW RI 5RWWHUGDPV VXFFHVV DQG HVWDE- Incoming and outgoing dry bulk goods, grouped by origin and destination, 2012
lishment as the largest port in Europe is
Agribulk
Incoming
Outgoing
Total
its location at the gateway to Northwest
Europe. Additionally, the port is a deep
Brazil
2,100
0
2,100
water port without nautical limitations.
Argentina
1,400
0
1,400
First of all, the location of the
United States of America
700
0
700
3RUW RI 5RWWHUGDP LV D ELJ DGYDQWDJH
Romania
700
0
700
We have a central position versus the
large industrial and population areas
Ukraine
500
0
500
in Northwest Europe, something that
Other countries
1,606
1,044
2,650
neighboring ports could also claim, but
Total
7,006
1,044
8,050
on top of that Rotterdam is a deep water
SRUWPD[LPXPGUDIWPHWHUVZLWKRXW Unit: Gross weight x 1,000 tonnes
Source: Port of Rotterdam based on CBS figures
any nautical constraints,du Mez said.
And as the port is based at the estuary freight railway between Rotterdam and AGRIBULK OFFERINGS
,Q WKH 3RUW RI 5RWWHUGDP WKHUH DUH
of the river Rhine, it makes Rotterdam Germany, with a direct connection to the
many options for handling grains, soy
WKH LGHDO JDWHZD\ WR (XURSHV ELJJHVW H[WHQVLYH(XURSHDQUDLOZD\QHWZRUN
economy Germany.
7KH3RUWRI5RWWHUGDPLVDOVRSHUIHFWO\ and feed. Archer Daniels Midland Co.
7KH 3RUW RI 5RWWHUGDPV JHRJUDSKLF situated for ship-to-ship transhipment. (ADM) has a crushing plant with a dediORFDWLRQ DQG SUR[LPLW\ WR ZDWHU DQG The open connection with the North cated terminal, and independent steverail transport has been key to its suc- Sea forms the basis for short turnaround doring companies like EBS, ZHD and
cess. The port is ideally situated on the WLPHVDQGHIFLHQWFRQQHFWLRQVZLWKWKH Marcor are present and have modern
facilities. Transfers can be either shipto-shore or ship-to-ship.
Deep history
The port offers 300,000 meters cubed
The Port of Rotterdam traces its history back to the 14th century when docks were
RIVWRUDJHVSDFHLQVLORVDQGDWVWRUDJH
built along the Nieuwe Maas River. Over time, the ports leaders dug, dredged and built
VXSSOHPHQWHG H[LEO\ E\ RDWLQJ VWRUconnections between the Port of Rotterdam and the North Sea. Today, the Port of Rotage capacity whenever necessary.
terdam consists of five distinct port areas and three distribution parks.
Agribulk imports account for a highThe Port of Rotterdam is the largest port by throughput in Europe and among the
HU SHUFHQWDJH RI 5RWWHUGDPV DJULEXON
largest ports in the world. Total throughput for 2013 (most recent year full data is availWKURXJKSXW WKDQ H[SRUWV ,Q RI
able) was 440,464,000 tonnes and total Agribulk throughput feedstuffs, oilseeds
the nearly10.3 million tonnes of agriband grains for 2013 was 10,318,000 tonnes, an increase of 28.2% from 8,050,000
ulk throughput, 8.8 million tonnes
tonnes in 2012.
ZDV LPSRUWV DQG PLOOLRQ
The Port Authority of the Port of Rotterdam has 1,100 employees, and its annual
WRQQHVZDVH[SRUWV
turnover is approximately 600 million.
7UDGLWLRQDOO\WKH3RUWRI5RWWHUGDP
44
comex@kepler.com.br | www.kepler.com.br
SOLUTIONS
FOR YOUR BUSINESS.
ANYWHERE
IN THE WORLD.
To Kepler Weber, excellence in receiving, cleaning, drying, conveying and storing grains is
just as important as working with clients to meet their specic needs, providing better
results all over the world. This is what has motivated us for over 89 years. This is what
makes us the leading company in Latin America.
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FEATURE: EUROPES LARGEST PORT KEEPS GROWING
Agribulk imports
(in 1,000 tonnes)
Volume
Feedstuffs
Oilseeds
Grains
Total
2000
2728
3552
1244
7524
2001
3358
4256
1086
8700
2002
2790
3050
1033
6873
2003
3602
3745
1240
8587
2004
2485
3260
1730
7475
2005
2310
2912
2414
7636
2006
1778
3125
1827
6730
2007
1795
3900
1925
7620
2008
2251
4468
1794
8513
2009
1464
3708
1254
6426
2010
1052
4128
1780
6960
Share
Feedstuffs
Oilseeds
Grains
2000
36%
47%
17%
2001
39%
49%
12%
2002
41%
44%
15%
2003
42%
44%
14%
2004
33%
44%
23%
2005
30%
38%
32%
2006
26%
46%
27%
2007
24%
51%
25%
2008
26%
52%
21%
2009
23%
58%
20%
2010
15%
59%
26%
Source: Central Bureau of Statistics
has been the gateway for imports of protein for the E.U. feed industry, and we
also import a lot of oilseeds mostly
VR\EHDQV DQG DOVR VXQRZHU VHHGV IRU
the crusher plants of ADM both in the
port itself and in the German hinterland.
Other import cargo consists of grain for
the biofuel plant of Abengoa in the port
area, du Mez said.
On the other hand, exports of E.U.

grain for a large part always went either
through French or German ports, with a
more modest share for Rotterdam.
Rotterdam continues to work to
increase its share of Europes grain
exports. Because European grain
has become more competitive on the
world market, we see an increase in
exports. For example, EBS and trading house Glencore agreed upon a
multi-year contract for the handling
and storage by EBS of export grain
supplied by Glencore from Central
Europe by rail.
FLIGHTING TECHNOLOGY
46
DESIGN DOES MATTER

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UNIQUELY DESIGNED
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EXTRA HEAVY-DUTY
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Behlen Mfg. Co. has been ISO

registered since 1999.
ZZZEHKOHQJUDLQV\VWHPVFRP

FEATURE
GRAIN EXPERTS
ANALYZE BLACK SEA
R
ussia and Ukraine, two of the worlds most important

grain exporters, face economic, logistical and political
challenges. Chinas government faces a need to create
policies which balance a need for food security with workable
answers to the problem of feeding a growing population that
wants more, higher quality food.
Experts at the Global Grain Conference in Geneva,
Switzerland in November discussed how these and some
of the other most challenging problems facing the sector
can be tackled.
A panel of experts considered the issues involved in trade
with the Black Sea origins, including Russia and Ukraine.
7KHUHDUHVLJQLFDQWSUREOHPVPRVWQRWDEO\WLWIRUWDWVDQF
tions, said Swithun Still of Solaris Commodities. They have
not directly affected the grain market.
Speaking during the panel discussion on the Black Sea region at the Global
Grains Conference in Geneva, Switzerland are, from left, James Dunsterville
of Global Grains; Marina Vergoun, Artis-agro Export; Swithun Still of Solaris
Commodities; Thomas von Rymon, ADM; and Stephen Pickup, Agrokultura.
Photos by Chris Lyddon.
48
by Chris Lyddon
Two of the worlds biggest exporters,

Russia and Ukraine, face economic,
logistical and political challenges
However, he did think there could be an effect in 2015.
Politics isnt the only challenge. They have extreme weather
in the Black Sea, including issues with winterkill and issues
with drought, he said.
Thomas von Rymon, general manager of Global Grain at
$'0ZDVFRQFHUQHGDERXWWKHLPSDFWRIWKH%ODFN6HDUH
JLRQVXQFHUWDLQWLHVRQLQWHUQDWLRQDOWUDGH:HGRQWOLNHSR
litical tensions, he said. You have to trade around it.
Marina Vergoun, executive manager of Russian exporter
$UWLVDJUR([SRUWWKRXJKWWKHGHYDOXDWLRQRIWKHUXEOHZRXOG
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FEATURE: GRAIN EXPERTS ANALYZE BLACK SEA
Speaking during the afternoon session on the freight market are, from left, Bas van Steijnem, ICAP Shipping; Alex Haubert, Chartering Manager of Amaggi;
Zhongyi Su, Erasmus Shipinvest BV; and Martin Olsen, Softmar.
be good for Russian grain exports.

We believe the political situation is
not affecting and not going to be affecting grain exports out of Russia, she said.
The political situation that is developing
out of Russia is helping agriculture. The
Russian government has put food safety
at the top of its priority list.
Next year we will see support for
agriculture growing. Agriculture is benHWLQJIURPWKHFXUUHQWVLWXDWLRQ
Stephen Pickup, managing director of
Agrokultura, agreed. Subsidies are beLQJFRQUPHGKHVDLG&UHGLWVDUHQRW
being dried up.
The story is different for Ukraine.
There are a lot of risk factors, he said.
We are fairly short at the moment in
terms of the supply of fertilizer. This
year interest rates are very high. Again,
it reduces access to inputs.
We have got to make sure we have
got banking facilities to grow a crop.
Ukrainian farming is under fertilized. In
2008, when a lot of investors came in, it
was a very antiquated sector. There has
been a lot of leaps and bounds since.
Still he highlighted the unwillingness
RI EDQNV WR SURYLGH QDQFH ,WV YHU\
much a case-by-case basis, he said.
Farmers are quite rich and have been
50
KHOSHG E\ GHYDOXDWLRQ 7KH\ KDYHQW

KDG WR KDYH UHFRXUVH WR QDQFLQJ E\
5XVVLDQ EDQNV ZKLFK LV VLJQLFDQWO\
more expensive than what we are paying here in Switzerland.
Vergoun agreed that farmers would stay
DZD\IURPWKHEDQNV7KHIDUPHUGRHVQW
need to take more leverage from banks,
she said. They have their own money and
they are investing it in agriculture. They
are holding a dollar commodity.
Von Rymon agreed, adding, I cannot
see that a lack of credit will limit planting next year. They are rich enough.
Still said that Russia did have the facilities to export. Overall Russia has a
pretty good infrastructure, both the rail
network and the ports, he said.
Vergoun agreed. In August this year,
Russia has exported 4.2 million tonnes,
she said. This means that capacity is
there; 4.2 million tonnes is not the maximum capacity.
Pickup looked at the explosion of
growth in storage in 2010-11. There is
pressure at harvest time, he said, noting
that farmers who can store grain can hold
off for better prices. It gives a good payback to build the silos, he said.
Still felt the sector needs to spend
more money. There has been a lack of
investment in the agricultural sector, he

said. You could hugely improve yields
in both Russia and Ukraine.
,I\RXUHWDONLQJDERXWH[SRUWLQJDUHD
I think we are maxed out on area, said
Vergoun. Russia has a general surplus of
VWRUDJHFDSDFLW\,GRQWVHHDQ\SUREOHP
VWRULQJELJFURSVLQ5XVVLD,GRQWWKLQN
we will see a big push at harvest.
7KH SURWDELOLW\ RI ODQG LQ 5XVVLD LV
increasing, said Pickup. We look to
bring a certain amount of our fallow
land into production, because prices are
OK and we are making money.
He pointed out that with fertilizers, if
WKHUHVLQDGHTXDWHUDLQ\RXGRQWJHWD
return. Increasing yields in Russia is a
ULFKPDQVJDPHKHVDLG8OWLPDWHO\
you need water to get a good yield.
Vergoun advised against thinking in
terms of a big yield increase for Russia.
,WV QRW DERXW LQYHVWPHQW VKH VDLG
,WVPRUHDERXWWKHOHYHORIPRLVWXUH
She added that Russia will remain
one of the biggest exporters of wheat in
the world.
EXPECTING A LOT FROM CHINA
Alain Butler, senior advisor, Soft
&RPPRGLWLHV DW %13 3DULEDV FKDLUHG
an afternoon session, which started with
W LS
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FEATURE: GRAIN EXPERTS ANALYZE BLACK SEA
Amaggi, pointed out that the market is

about risk. You are seeing people becoming more expert, starting to manage
risk better, he said. We are trading risk
at the end. A low freight doesnt help. A
low freight means a low risk. You see
more people trying to buy into that risk.
Van Steijnen described grain as not
marginal, but not dictating in the freight
market. When we talk about grains, its
mainly Panamaxes and Supramaxes.
He explained the problems in managing risk, particular the cost of fuel.
Bunkers are extremely important, he
said. Hedging has become very imporWDQW <RX GRQW GR SUHVSHFLHG URXWHV
VR LW EHFRPHV YHU\ GLIFXOW WR KHGJH
There is a huge basis risk. You see huge
spreads between physical and paper.
There is no perfect hedge.
,WLVYHU\GLIFXOWWRGRIRUZDUGSK\VLFDO
contracts, he said. You dont know what
your volume will be, van Steijnen said.
In grains, it is mostly hand to mouth.
The panel was asked about the likely
Alain Butler, Senior Advisor, Soft Commodities, at effect of improvements to the Panama
BNP Paribas, chaired an afternoon session which
Canal. We dont know when it will be
looked at the freight market.
affected, said Haubert. Eighty percent
a look at the freight market.
has been completed. What we dont
What we need to do is produce more know is the toll dues structure. How
food, and it is a challenge, he said. much will it cost?
We need more meat. The feed sector
Butler explained why agriculture
will carry the burden of demand. The fo- is so important to China and why
cus for all of us is emerging economies. Chinese policy is so important to the
The world expects a lot from China.
world market.
Bas van Steijnem, director of ICAP
Half of the population in China is
Shipping, expected the freight market to rural, so anything that happens regardgrow by 4.7% in 2015.
ing agriculture has a big social impact,
That growth will be predominantly in he said. Any moves in its policies
the supramax sector, he said. I would can impact world demand and trade.
love to paint a picture where prices will Agriculture and food are really critical.
go through the roof, but it doesnt look The government and the state are likely
like freight will do that.
to play an active role.
7KH HHW LV \RXQJ KH VDLG SXWThe policy of the new government
ting the average age at 7.7 years. This continues to emphasize the importance of
is not good in terms of scrapping. food security, said Zhu Yufeng, managing
Supramaxes are very young. The aver- director of Hanfeng Huayu International.
age is six years.
At the beginning of the year, each
=KRQJ\L 6X FKLHI H[HFXWLYH RIFHU RI year, the Chinese government will have
Erasmus Shipinvest BV said the industry a central rural working conference
was not making enough money. The mo- ZKLFK VSHFLHV WKH DJULFXOWXUH SROLtive is not there to own the ships, he said. cy and priorities of the year, he said.
Alex Haubert, chartering manager of 7KLV \HDU LW KDV FOHDUO\ VSHFLHG WKDW
52
grain production needs to be domestiFDOO\EDVHGUVWDQGWKHVXSSO\RIVWDSOH

foods, again here we mention wheat rice
and corn, must be absolutely secured.
This is the so-called Chinese
3HRSOHV ULFH ERZO PXVW EH OOHG ZLWK
Chinese rice, he said. The emphaVLVGHQLWHO\IRUWKHVHWKUHHPDLQJUDLQ
LWHPVLVVHOIVXIFLHQF\DQGWKHJRYHUQment wants to have higher grain selfVXIFLHQF\UDWHVDVKLJKDVSRVVLEOH
Simultaneously the government
also put out a new policy, the so-called
proper imports, he said. This is the
UVW WLPH WKDW WKH &KLQHVH JRYHUQPHQW
has said clearly written down that proper import is needed in order to food and
JUDLQVDIHW\VXSSO\7KLVLVWKHUVWWLPH
in history.
Having decided that certain imports
are necessary, its necessary to work out
what is meant by proper imports.
There is a lot of debate in the industry on how to interpret this policy, he
said. I believe it means that when there
is a real demand for imports to supplement a domestic supply shortfall, lets
go ahead and use the imports. China is
a large country but has very limited arable land. On the other side you have an
ever-growing, huge demand base.
He stressed the impracticality of an
DERYH JUDLQ VHOIVXIFLHQF\ UDWH
for each and every commodity. The
planting economics will compete with
each other and it will make it impossible
to secure food, he said.
Emily French raised the issue of food
safety. This is going to be a major challenge for the Chinese government, she
said. Theres never been more opposing demands on the food system.
She also explained that China remains
IDU IURP VHOIVXIFLHQF\ LQ VRPH SURGucts. China cannot ever produce enough
soybeans for its own tofu demand, she
said. The issue for China now is it has to
massively increase yields.
FEATURE
Investment analysts
guarded about
W
2015
hile shares of many grain-based foods companies

climbed impressively to new highs in 2014, investment analysts were hard pressed to paint an optimistic picture for the segment when considering the stock
market outlook for 2015. Viewed from a number of perspectives, the analysts interviewed by Milling & Baking News, sister publication of World Grain, said headwinds facing many
companies in the industry created investment risks that overshadowed the attraction that lifted the group for several years,
a longer period than many on Wall Street had expected.
A consumer migration away from carbohydrates and toward protein, a trend that has shifted in style and emphasis
over the years, continued in 2014 and will persist in 2015, said
Rob Moskow, an analyst with Credit Suisse, New York.
Moskow and the other analysts said companies most able to
understand and meet consumer demand for products viewed
as healthier stand the best chance of prospering ahead. The
VKLIW KDV EHHQ SDUWLFXODUO\ GLIFXOW IRU OHDGLQJ PDNHUV RI
ready-to-eat cereal, Moskow said.
People are eating less breakfast cereal in the morning and
are eating more protein, he said. They believe lower carb,
lower gluten diets are healthier. Consumer packaged foods
FRPSDQLHVDUHWU\LQJWRJXUHRXWKRZWRDGMXVWWRWKDW
When I look at my coverage list of 15 companies, about
10 missed their expectations for the year. That included most
of the blue chip branded companies. Protein companies did
better, exceeding expectations. I think its no accident that
Hormel and Tyson both had very strong years. In the case of
Tyson, top-line success was a key. Chicken demand was very
strong. Hormel experienced the same thing. The companies
would not have been able to achieve their bottom-line results
without having solid supply and demand economics.
Many of the companies that struggled were described by
0RVNRZDVFDUEKHDY\$GGLWLRQDOO\PDMRUFRQVXPHUSDFN
aged foods companies are losing ground in competition with
54
by L. Josh Sosland
Most are hard pressed to paint an

optimistic picture for grain-based
food company shares
natural and organic companies.
According to Nielsen data, the top 25 food and beverage
companies have lost 420 points of basis share to entrepreneurial competitors, he said. A lot of the brands are losing their
resonance with consumers at a slow but steady pace.
7KHVWHDG\HURVLRQRIVKDUHRIIRRGVDOHVHQMR\HGE\WUDGL
tional supermarkets and the shift toward other channels will
continue in 2015 and will factor in the investment prospects of
consumer packaged goods companies in 2015, said Mitchell
B. Pinheiro, senior vice-president, Imperial Capital LLC,
New York, New York, U.S.
Customers are moving toward the club, dollar and the natural channels, Pinheiro said. This will continue at a slow but
measurable rate. And it will help determine which companies
have success or struggles.
Among the growing channels, Pinheiro is focused in his
practice with Imperial on the natural segment, or health and
wellness more generally, for investment opportunities. The proOHRIWKHOHDGLQJQDWXUDOIRRGVUHWDLOHUXQGHUVFRUHVKLVSRLQW
Pinheiro said.
You see Whole Foods, Sprouts and Natural Grocers growing at a 15% to 20% clip, he said. Well those stores dont have
\RXUW\SLFDOEUDQGV6RPHIRRGFRPSDQLHVGRDPXFKEHWWHUMRE
than others in getting into these stores. General Mills, Inc. and
.HOORJJ&RDUHGRLQJDJUHDWMREZLWK&DVFDGLDQDQG.DVKL
UHVSHFWLYHO\*HQHUDO0LOOVMXVWERXJKW$QQLHVZKLFKLVDQRWK
FEATURE: INVESTMENT ANALYSTS GUARDED ABOUT 2015
er example of a company upgrading its

portfolio. I think we will see more of this
in 2015. We think the larger, more mature
companies will struggle from the sucking
sound of the channels where these companies dont have a presence. As a rule,
companies that are not burdened by legacy brands will perform better.
Similarly, Moskow said the path chosen by large packaged foods companies
saddled with product portfolios losing
consumer favor has been the acquisition of smaller companies with rapidly
growing sales.
Thats the solution thus far, he said.
General Mills bought Annies and
Food Should Taste Good, looking to
expand its Small Plant Foods division
faster. Campbell Soup bought Bolthouse
Farm and Plum Organics. At Kellogg
Co., Kashi has contracted, and they are
now regrouping. I expect more acquisitions across the packaged foods sector.
For traditional food companies, the

news going into 2015 is not all bad,
Moskow said.
You have lower gas prices, and you
DUH ODSSLQJ WKH FXW LQ 61$3 EHQHWV
he said. The backdrop is a little better
than it was a year ago.
Thats the case in general when conVXPHUVIHHOPRUHFRQGHQW)RUORZHUDQG
middle income consumers, the drop in gas
puts as much as $700 into their pockets
on an annual basis. Thats very meaningful for a lower income consumer. There
is some discretionary nature to how consumers spend in a grocery store. This will
PDNHWKHPIHHODOLWWOHPRUHFRQGHQW
The improved economic conditions
are not going to cure everything. Its
probably for the companies I cover
its going to be less bad. I think this year
was pretty extraordinarily bad.
:KLOH QDQFLDO UHVXOWV RI WKH ODUJHVW
packaged foods companies have been
disappointing, Moskow acknowledged

that the share price performance has
been strong.
I think it is a little paradoxical that the
fundamental performance of these companies has been very subpar by their own
PHWULFV LQ WKUHH RI WKH ODVW YH \HDUV
he said. But valuation multiples of the
stocks keep going higher. I dont think
thats happening because investors love
these stocks. I think it is happening, because the market loves yield. Investors are
treating these companies shares like quasi
bonds. If interest rates rise faster than expectation, this could change rapidly. There
would be rotation out of this sector.
Even more cautious about the operating environment for consumer packaged
foods companies going into 2015 was
Erin Lash, senior equity analyst for the
sector at Morningstar, Inc.
There are a couple obvious headwinds
they continue to face that we dont think
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55
will abate, she said. The consumer remains very selective in purchase decisions. Making sure a companys products
are resonating with consumers and making sure consumers know about your new
products are key. While consumers continue to maintain a bent toward health and
wellness items, they are not looking for
products that give them a sense they are
on a diet. Companies need to be sensitive,
especially in the domestic market.
$ VHFRQG WUHQG LGHQWLHG E\ /DVK
poses challenges to many grain-based
food companies.
Shoppers continue to shop the perimeters of the store, she said. Getting
product in front of the consumer is key.
Thats a challenge because consumers
are still operating on a budget.
No meaningful relief is expected for
the food sector regarding overall comPRGLW\LQSXWFRVWV/DVKVDLG
We still expect commodity cost inDWLRQ ZLOO SHUVLVW DFURVV WKH EDVNHW RI
goods, she said. We arent anticipating a material tailwind from a retreat in
commodity costs. Right now, we view
the sector as modestly overvalued.
Consumer defensive names are perceived as products consumers use on an
everyday basis, and they are sources of
income for investors.
On a company by company basis, major moves into health and wellness do
not represent the only approach needed
for success in the coming year, Moskow
said. Changes of a different kind under
ZD\ DW 0RQGHO] ,QWHUQDWLRQDO ,QF
'HHUHOG,OOLQRLV86DUHEULJKWHQLQJ
prospects for that company, he said.
, OLNH 0RQGHO] SULPDULO\ EHFDXVH
they have the best opportunity for self
help, he said. They are changing the
culture internally to change their cost
FRQWUROV DQG H[SDQG SURW PDUJLQV
Their margins are well below their peer
group. There is a huge opportunity. This
isnt the solution to long-term success,
EXW,WKLQNLWKHOSVEULGJHWKHJDSXQWLO
emerging market rebound.
,UHQH5RVHQIHOGFKDLUPDQDQGFKLHI
H[HFXWLYH RIFHU KDV UHVSRQGHG WR WKH
change in the environment. The en56
YLURQPHQW LV VORZHU JURZWK ,W PDNHV

sense to focus your attention internally.
, WKLQN WKH\ KDG EHHQ QHJOLJHQW LQ WKDW
regard for too long.
An ingredient supplier Moskow sees
ZLWK D SURPLVLQJ RXWORRN LV ,QJUHGLRQ
,QF:HVWFKHVWHU,OOLQRLV86
An expectation the company will
raise high-fructose corn syrup prices
VLJQLFDQWO\ LQ LV DPRQJ KLV UHDsons for optimism.
They and ADM have more pricing
SRZHU WKLV \HDU KH VDLG 7KH 8QLWHG
States has limited some of the sugar
imports from Mexico as part of the
DJUHHPHQW ZLWK 0H[LFR ,QJUHGLRQ LV
an international company. Some of their
markets have slowed, like Argentina
DQG %UD]LO (YHQWXDOO\ VRPH RI WKRVH
markets will come back.
/RQJHUWHUPJURZWKDW,QJUHGLRQZLOO
be driven by the companys specialty
starch business, Moskow said.
,WV DERXW RI WKH EXVLQHVV QRZ
but its growing at a high single-digit
pace, its margin accretive and helps participate in health and wellness area these
FRPSDQLHVDUHSXUVXLQJ,Q0H[LFRIRU
example, the government is putting
more pressure on food companies to reduce sugar content and calorie content
and fat content. Specialty starches can
be used to replace some of these ingredients while maintaining the texture of
the original products.
A company struggling with forces beyond its control in Moskows view is The
-06PXFNHU&R2UUYLOOH2KLR86
,WVDYHU\JRRGFRPSDQ\EXW,KDYH
been cautious on them, he said. To
get the stock right you have to time the
coffee bean market and buy it when the
inputs are falling. Right now they are
having trouble passing through full impact of cost increases they took. Prices
havent fallen enough to make the stock
interesting to me.
Pinheiro focused on players in the
health and wellness segment, including
major players beginning or about to make
a move toward grain-based foods. A case
in point is The WhiteWave Foods Co.,
'HQYHU&RORUDGR863LQKHLURVDLG
WhiteWave is the largest player in

three natural/organic categories proGXFH ZLWK (DUWKERXQG )DUP GDLU\
ZLWK +RUL]RQ 2UJDQLF DQG SODQWEDVHG
beverages with Silk, So Delicious and
alpro, he said.
What the larger packaged foods companies are doing, Annies for instance,
are developing brands that are cross
category, say into mac and cheese, fro]HQSL]]DDQGVQDFNV:KLWH:DYHZLWK
WKH+RUL]RQRUJDQLFEUDQGLVEHJLQQLQJ
to expand from dairy into some of these
kinds of products. They also are cross
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grow in grain-based areas. They have
snacks and cheese crackers, cookies
DQG PDF DQG FKHHVH , WKLQN WKH\ ZLOO
take share from traditional leaders
Kraft in mac and cheese and Pepperidge
*ROGVKLQVQDFNV
,Q SURGXFH (DUWKERXQG )DUP LV
barely able to keep up with demand.
Were also seeing them expand into different areas, tangential to produce, like
salad dressing or maybe into croutons.
Another company focused on health
and wellness but with a very different
SUROHWKDQ:KLWH:DYHLV+DLQ&HOHVWLDO
*URXS1HZ+\GH3DUN1HZ<RUN86
Where WhiteWave has three or
IRXU PDMRU EUDQGV +DLQ KDV ODUJH
brands, Pinheiro said. On the grainbased side, they have Arrowhead Mills.
,WVDWHUULFPL[EUDQG'H%ROHV3DVWD
They recently bought Rudis bakery.
Rudis is mostly a bread baker, but
they are moving into gluten-free items.
Rudis was an interesting acquisition
for Hain. What youre seeing, if you
look at the bread aisle in a Whole Foods
LV WKDW WKHUH DUHQW PDQ\ UHFRJQL]DEOH
breads. Whats interesting is that there
PD\EHVRPHVKHOIVSDFHXSIRUJUDEV,
think Rudis can grab share. Fresh bread
in the natural channel is not dominated
by a single brand. Hain may establish
(Continued on page 60)
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some hierarchy in the sector.
With its focus on gluten-free products, Boulder Brands Inc., Boulder,
Colorado, U.S., is another company that
bears watching in the health and wellness segment, Pinheiro said.
Boulder owns Udis and Glutinos,
Pinheiro said. Consumption of glutenfree bread is still growing annually in
the 20% area. Some of the supermarkets
are beginning to add it to the deli area of
the bakeries. They are even developing
specialty items for the in-store bakery,
like different loaf shapes.
While fad diets may come and go,
gluten-free dieting has not yet passed,
Moskow said. Recently conducted research largely debunking the effectiveness of gluten-free diets for individuals
who do not have celiac disease, reported
in The New Yorker magazine, does not
change this view.
I think the gluten-free movement still as legs to it, Moskow said.

6FLHQWLFDOO\ , DJUHH ZLWK WKDW DUWLFOH
Emotionally, consumers think they feel
better when they dont eat a lot of gluten.
If you look at the New York Times best
seller list for diet books, I think basically
7 of 8 talked about reducing carbs.
Pinheiro mused about whether different health and wellness companies
could, like Annies, be attractive as an
acquisition candidate.
Boulder to me is an interesting small
brand, and it also could be interesting to
larger consumer packaged goods companies, he said. They have started brands
and grown them the old fashioned way
and they have purchased existing brands.
One of the issues for Hain, is that
WKH\ DUH VR GLYHUVLHG , FDQW LPDJLQH
another company buying them. Its a
cool portfolio, but all over the map.
If gluten-free has been a driver of
consumer demand in 2014, so has the

avoidance of foods containing bioengineered ingredients, Pinheiro said.
Its the other big trend right now, he
said. A lot of these companies are championing the non-GMO issue. They are
not making a statement on whether they
are good or bad, but labeling plays to
their mission statement. They are all supporters of those various bills that would
require labeling. Whole Foods will basically remove any product with GMO. Its
tough. If you label it, you wont get sales.
You dont label, and youre out.
The avoidance of GMOs may be
viewed as part of a trend toward avoidance of a wide range of undesirable ingredients or qualities.
GMO is part of the big free
movement, Pinheiro said. Transfat,
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FEATURE
Another year of advances

M
arking the sixth straight year
of advances in the sector, share
prices of grain-based foods
companies were up sharply in 2014. The
Grain-Based Foods Share Index, calculated by Milling & Baking News, sister
publication of World Grain, ended the
year at a record 20342.89, up 17%.
While smaller than the 23% gain
in 2013, grain-based shares in 2014
eclipsed advances of 16% in 2012, 8%
in 2011, 9% in 2010 and 13% in 2009.
From the end of 2008, the Grain-Based
Foods Share Index has added 11,195
points, for a gain of 122%.
A rarity for food stocks in a bull market,
the GBF index outperformed each of the
other major market indices in 2014. The
16.8% gain bested the Standard and Poors
500 Index up 11.4%; the Dow Jones average of industrial shares, up 7.5%; and the
Nasdaq composite index, up 13.4%.
Grain-based foods shares up in 2014,

outperforming major market indexes
The Grain-Based Foods Share Index
also outperformed global stock indexes.
The 17% gain compared with an advance of 1.5% in the All Country World
Index (ACWI). The MSCI Emerging
Markets Index in 2014 was down 6%
during the year.
Additionally, grain-based shares were
strong when measured against most sectors of the S&P 500, outperforming consumer discretionary companies, up 8%;
staples, up 13%; energy, down 10%; industrials, up 8%; materials, up 5%; and
telecommunications, down 2%. Grainbased shares lagged the health care sector, up 23%; information technology, up
18%; and utilities, up 24%.
Within the consumer staples sector of
Grain-Based Foods Share Index

performance in 2014
High
ADM
$53.91
Bridgford
$10.63
Bunge
$93.17
Campbell Soup
$46.67
ConAgra
$37.46
Dunkin' Brands
$53.05
Flowers Foods
$22.22
General Mills
$55.64
Hain Celestial
$60.45
Ingredion
$87.20
J&J Snack Food
$112.74
Kellogg
$69.50
Krispy Kreme
$21.30
MGP Ingredients
$17.04
Mondelez International $39.54
Panera Bread Co.
$193.18
PepsiCo
$100.70
Post Holdings
$60.63
Seaboard
$4,246.90
J.M. Smucker
$107.74
Snyder's-Lance
$31.25
Low
$37.92
$7.00
$73.12
$39.60
$28.09
$40.50
$17.46
$46.70
$40.01
$58.28
$84.30
$55.69
$14.82
$5.16
$31.83
$142.41
$77.01
$30.94
$2,350.00
$87.10
$24.67
Close
$52.00
$7.75
$90.91
$44.00
$36.28
$42.65
$19.19
$53.33
$58.29
$84.84
$108.77
$65.44
$19.74
$15.86
$36.33
$174.80
$94.56
$41.89
$4,197.95
$100.98
$30.55
s = stock split during year
Change
$8.60
-$1.83
$8.80
$0.72
$2.58
-$5.55
-$2.28
$3.42
$12.90
$16.38
$20.18
$4.37
$0.45
$10.67
$1.03
-$1.89
$11.62
-$7.38
$1,402.98
-$2.64
$1.89
Per cent
change
19.8%
-19.1%
10.7%
1.7%
7.7%
-11.5%
-10.6%
6.9%
28.4%
23.9%
22.8%
7.2%
2.3%
205.6%
2.9%
-1.1%
14.0%
-15.0%
50.2%
-2.5%
6.6%
Year end
Price to
earnings Dividend
ratio
yield
17.87
2.0%
NA
NA
20.81
1.5%
15.83
2.7%
38.6
2.8%
27.52
2.1%
22.06
2.7%
22.22
3.1%
45.19
NA
16.22
2.0%
28.47
1.3%
13.6
3.0%
19.74
NA
NA
NA
18.26
1.6%
25.71
NA
20.92
2.7%
36.5
NA
15.34
NA
18.49
2.5%
11.44
2.1%
the S&P 500, the strongest groups were

brewers, up 20%; distillers and vintners,
up 33%; drug retail, up 34%; and food
retail, up 24%. The Grain-Based Foods
Share Index gain compared with packaged foods and meats companies, overall down 13%; and agricultural products, up 20%.
Of the 21 companies included in the
Grain-Based Foods Share Index, shares
of 16 scored gains in 2014 while 5 lost
ground. Three non-U.S. companies not
in the index but with a large presence in
the U.S. baking market Grupo Bimbo
S.A.B. de C.V., George Weston Ltd. and
Maple Leaf Foods all were up in 2014.
MGP Ingredients, Inc., Atchison,
Kansas, U.S., had the widest gain among
companies in the index up 206%. The
more than trebling in 2014 of the perennially volatile MGPI stock followed a gain
of 52% in 2013 and a decline of 32% in
2012. The 52-week high of $17.04 represented a seven-year high for MGPI
stock. The company weathered a bruising proxy battle through much of 2013,
resulting in a change of management
and in the roster of the companys board
of directors. In July 2014, the company
QDPHG*XV*ULIQDORQJWLPHH[HFXWLYH
of the beverage alcohol business, as its
QHZFKLHIH[HFXWLYHRIFHU
Ranking second in gains among
grain-based shares in 2014 was
Seaboard Corp., Merriam, Kansas,
U.S., surging 50% in value to a close
of $4,197.95. With its appreciation of
more than $1,400 per share, Seaboard
VROLGLHG LWV SRVLWLRQ DV WKH VHFRQG
highest priced U.S. stock, lagging only
Berkshire Hathaway, Inc. (which closed
DWSHUVKDUH,QWKHUVW
nine months of 2014, Seaboard earnings
61
Weekly closes
22,000
5000
20,000
4700
18,000
4400
16,000
4100
14,000
Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.
2014
2013. The companys Weston Foods

division struggled through the year and
UHVKXIHG LWV OHDGHUVKLS URVWHU LQ WKH
spring. Kevin McDonough, president
of Interbake Foods, took on additional
responsibilities as head of the North
America frozen business, while Ed
Hollick was named executive vice-president of operations. Jairo Senise, formerly
president of Weston Foods and a former
executive at Gruma, left the company.
7KH IWK ODUJHVW VKDUH SULFH JDLQ LQ
2014 was posted by Ingredion, Inc.,
Westchester, Illinois, U.S., up 24%. The
share price increase and ranking was up
sharply from the 9% advance Ingredion
shares posted in 2013, the smallest of
NASDAQ
were $246,592,000, up 93% from the

year before. Results included a one-time
gain of $39 million. Even with the companys sharp share price gain, the companys shares were selling only at about
14 times earnings, versus more than 19
for the S&P 500.
With a 28% share gain in 2014, The
Hain Celestial Group, Inc., Lake Success,
N.Y., U.S.. ranked third among gainers.
7KH VWURQJ SHUIRUPDQFH PDUNHG D IWK
straight year of strong share price appreciation. In 2013, Hain shares jumped
67%, the second best performance that
year. Gains in earlier years included 46%
in 2012, 36% in 2011 and 59% in 2010.
The company has been a top-three performer within the index for each of the
years. Since the end of 2009, Hain shares
KDYH MXPSHG D KHDG\ 5HHFWLQJ
the surging share price value, Hains
board in November declared a two-forone stock split, a share dividend distributed in late December. Hain was the
only company in the Grain-Based Foods
Share Index to split its shares in 2014.
George Weston Ltd., Toronto, Ontario,
Canada, ranked fourth among gainers in
2014, rising 29% following a 10% gain
in 2013. In the most recent quarter, the
FRPSDQ\V DGMXVWHG RSHUDWLQJ SURWV
were up 24% from the same period in
Grain-Based Foods Share Index and Dow Jones
FEATURE: GRAIN-BASED FOODS SHARES UP IN 2014, OUTPERFORMING MAJOR MARKET INDEXES
3800
any grain-based foods company in that

\HDU $IWHU D GLIFXOW UVW TXDUWHU RI
2014, Ingredion earnings in the second
DQGWKLUGTXDUWHUVLPSURYHGVLJQLFDQWly from the year before. Additionally,
in October, Ingredion reached an
agreement to acquire Penford Food
Ingredients, Centennial, Colorado, U.S.,
for approximately $340 million.
J&J Snack Foods Corp., Penn-sauken,
New Jersey, U.S., ranked sixth among
grain-based shares in 2014 with appreciation of 23%. The gain compared with
39% in 2013, when the company ranked
only 11th within the index. Often among
the top performers in the index in recent
years, J&J shares were up 22% in 2012
Weekly close for Grain-Based Foods Share Index, Dow Jones

Industrial Average and NASDAQ Composite in 2014
62
Grain-Based
Foods
03-Jan-14 17307.61
10-Jan-14 17225.68
17-Jan-14 17308.05
24-Jan-14 17334.07
31-Jan-14 16997.73
Dow
Jones
16469.99
16437.01
16458.56
15879.11
15698.85
NASDAQ
4131.91
4174.67
4197.58
4128.17
4103.88
Grain-Based
Foods
02-May-14 17288.88
09-May-14 17382.14
16-May-14 17350.52
23-May-14 17478.27
30-May-14 17917.96
Dow
Jones
16512.89
16583.34
16491.31
16606.27
16717.17
NASDAQ
4123.90
4071.87
4090.59
4185.81
4242.62
Grain-Based
Foods
05-Sep-14 17900.03
12-Sep-14 17971.19
19-Sep-14 17769.36
26-Sep-14 17154.31
Dow
Jones
NASDAQ
17137.36 4582.90
16987.51 4567.60
17279.74 4579.79
17113.15 4512.19
07-Feb-14
14-Feb-14
21-Feb-14
28-Feb-14
16755.33
16893.42
17051.99
17109.36
15794.08
16154.39
16103.30
16321.71
4125.86
4244.02
4263.41
4308.12
06-Jun-14
13-Jun-14
20-Jun-14
27-Jun-14
18228.21
18099.73
18486.98
18206.50
16924.28
16775.74
16947.08
16851.84
4321.40
4310.65
4368.04
4397.93
03-Oct-14
10-Oct-14
17-Oct-14
24-Oct-14
31-Oct-14
17259.00
17330.80
17252.11
17876.42
18145.17
17009.69
16544.10
16380.41
16805.41
17390.52
4475.62
4276.24
4258.44
4483.72
4630.74
07-Mar-14
14-Mar-14
21-Mar-14
28-Mar-14
17481.64
17495.64
17682.32
17254.82
16452.72
16065.67
16302.77
16323.06
4336.22
4245.40
4276.79
4155.76
03-Jul-14
11-Jul-14
18-Jul-14
25-Jul-14
18567.78
18339.65
18217.65
18414.08
17068.26
16943.81
17100.18
16960.57
4485.93
4415.49
4432.15
4449.56
07-Nov-14
14-Nov-14
21-Nov-14
28-Nov-14
19245.06
19169.29
19179.24
19682.74
17573.93
17634.74
17810.06
17828.24
4632.53
4688.54
4712.97
4791.63
04-Apr-14
11-Apr-14
18-Apr-14
25-Apr-14
17559.50
17251.67
17658.45
17563.88
16412.71
16026.75
16408.54
16361.46
4127.73
3999.73
4095.52
4075.56
01-Aug-14
08-Aug-14
15-Aug-14
22-Aug-14
29-Aug-14
17697.41
17901.61
17929.23
17882.15
17954.11
16493.37
16553.93
16662.91
17001.22
17098.45
4352.64
4370.90
4464.93
4538.55
4580.27
05-Dec-14
12-Dec-14
19-Dec-14
26-Dec-14
19840.94
20170.01
20414.32
20534.96
17958.79
17280.83
17804.80
18053.71
4780.76
4653.60
4765.38
4806.86
FEATURE: GRAIN-BASED FOODS SHARES UP IN 2014, OUTPERFORMING MAJOR MARKET INDEXES
2%
Krispy Kreme
-19%
2%
Campbell Soup
Bridgford
3%
Mondelez International
17.4%
-15%
7%
Snyder's-Lance
22.7%
Post Holdings
7%
Kellogg
-12%
7%
General Mills
16.2%
Dunkin' Brands
8%
ConAgra
7.5%
-11%
11%
Bunge
9.3%
Flowers Foods
14%
PepsiCo
-3%
16%
Maple Leaf Foods
13.2%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
J.M. Smucker
20%
ADM
1.0%
-21.5%
-10.7%
-4.9%
14.7%
19.2%
Grain-Based Foods Share Index

percentage change
-1%
23%
J & J Snack Food
proximately 2.3 billion ($3.1 billion).

Also during the year, succession plans
were announced for the companys top
executive position. Juan R. Luciano
was named to succeed Patricia Woertz
as CEO. Woertz, who came to ADM in
2006 from Chevron, will remain chairman of the board and is expected to
retire in May 2016. Lucianos appointment became effective Jan. 1. He joined
ADM in 2011 from Dow Chemical Co.
Maple Leaf Foods Ltd., which largely exited the baking business in 2014,
ranked eighth among grain-based foods
shares during the year, with a gain of 16%.
A year earlier, Maple Leaf shares were up
40%. In May, Grupo Bimbo, S.A.B. de
C.V. completed its acquisition of Canada
Bread Co. Ltd. from Maple Leaf in a
transaction valued at about C$1.83 billion ($1.66 billion). Canada Bread is one
Panera Bread Co.
24%
Ingredion
DQGLQ7KHFRPSDQ\VQDQcial performance was solid during the

year. Net income in the year ended Sept.
27 was $71,814,000, up 12% from the
year before. Sales were up 6%. It was
the second straight year the companys
share price climbed more sharply than
its earnings, and the companys priceto-earnings ratio stood at a lofty 29
Archer Daniels Midland Co. (ADM),
Chicago, Illinois, U.S., posted the seventh widest share price gain in 2014,
up 20%. The advance followed a gain
of 59% in 2013, when ADM ranked
third in the index. The year featured a
number of major steps at ADM, including a move to Chicago from its longtime headquarters in Decatur, Illinois.
ADM during the year acquired Wild
Flavors GmbH, Zug, Switzerland, in
an all-cash transaction valued at ap-
1%
28%
Hain Celestial
Shaded companies not included in index
Grupo Bimbo
29%
George Weston
Seaboard
MGP Ingredients
50%
206%
Grain-Based Foods Share Index companies:

stock price change in 2014
of the leading manufacturers and marketers of bakery products, including sliced

EUHDGEXQVEDJHOV(QJOLVKPXIQVDQG
tortillas in Canada, frozen bread in North
America, and specialty bakery goods in
the United Kingdom.
Following Maple Leaf in share price
performance among companies with
large grain-based holdings was PepsiCo,
Inc., Purchase, N.Y. PepsiCo shares were
up 14% in 2014, versus a gain of 21% in
2013 and 4% in both 2012 and 2011.
Shares of Bunge Ltd., White Plains,
New York, U.S., were 10th among industry gainers, with a gain of 11% in
2014 versus 13% in 2013. During the
UVW QLQH PRQWKV RI %XQJH QHW
income was $529 million, up sharply
from $115 million in the same period in
2013. Total segment EBIT, meanwhile,
was $809 million, down 13% from $933
million, and sales were $43.93 billion,
down 2% from $44.97 billion. Results
in the third quarter were hurt by a decline in crop prices and sluggish farmer
VHOOLQJLQ6RXWK$PHULFD,WZDVWKHUVW
full year for Soren Schroder as CEO. He
succeeded Alberto Weisser in the role in
June 2013.
Josh Sosland is editor of Milling & Baking News,
sister publication of World Grain. He can be
reached at jsosland@sosland.com.
63
RICE QAURTERLY
MILLING PROPERTIES
OF COMMINGLED RICE
ommingling of rice commonly occurs during harvest, drying and storage. Because there are differences in milling
properties of different rice cultivars, there is a need to study
the impact of commingling on the milling properties of rice.
These properties include degree of milling, milling yields,
color and chalkiness. To examine the impact, researchers from
the University of Arkansas, Fayetteville, Arkansas, U.S., commingled two long-grain hybrid cultivars and two long-grain
pureline cultivars in various proportions.
Milled rice yield (MRY), head rice yield (HRY), surface
lipid content (SLC) and head rice chalkiness were measured
for individual samples as well as the commingled samples.
Kernel dimensions, total lipid content (TLC), chalkiness and
bulk density of brown rice samples of the individual-cultivar
lots were also measured.
This article will review the process and results obtained
by researchers, which included Nikhil N. Basutkar, graduate
research assistant; Terry J. Siebenmorgen, university professor and director, Rice Processing Program; and Andronikos
Mauromoustakos, professor, agricultural statistics laboratory.
CULTIVARS
Acreage of hybrid rice cultivars has increased due to greater
DJURQRPLF\LHOGVVWURQJHUGLVHDVHUHVLVWDQFHDQGPRUHHIcient use of water and soil nutrients compared to pureline cultivars. But differences have been observed in the milling properties of hybrid and pureline cultivars, researchers said. For
example, hybrid cultivars have been generally found to mill
to a desired degree of milling more quickly than purelines do.
Rice kernel characteristics such as kernel topography,
physical dimensions and moisture content have been shown
to affect rice milling performance. Variation in these characteristics among rice cultivars leads to increased complexity in
managing milling and processing operations.
Milling involves the removal of the germ and bran layers, which
contain most of the lipids present in a rice kernel. The remaining
endosperm consists of mostly starch. Milling decreases the lipid
content and increases the relative starch content of white rice.
The degree of milling, or the extent of bran removal during milling, affects milling and head rice yields. Head rice
is more valuable than broken rice, so maximizing HRY is of
economic importance.
Commingling rice with differing properties that affect
the degree of milling may result in over-milling of some
64
by Susan Reidy
Commingling of cultivar lots can

occur during harvest, drying and
storage operations
rice, thereby reducing milling yields.
Chalkiness, which is a major rice kernel defect, usually occurs
when high nighttime air temperatures are experienced during
critical stages of kernel development. Cultivars vary in their susceptibility to these temperatures, and thus can differ in chalkiness.
Because kernels of different physical dimensions, topographies
and chalkiness may be commingled, there could be an impact on
milling properties, researchers said, particularly when cultivars
with dissimilar properties are commingled.
MATERIALS AND METHODS
Researchers used two hybrid (CL XL729 and CL XL745)
and two pureline (CL 151 and Wells) cultivars grown in 2011
and 2012. The 2011 lots were selected to have high HRYs
while the 2012 lots were selected to have low HRYs. This was
done to determine if commingling had a similar effect on rice
of different levels of milling yield.
All lots were cleaned using a dockage tester and conditioned
to 12% moisture content. Samples from the cultivar lots were
commingled in various ratios as shown in Table 1 (page 66).
To prepare for milling, 150-gram rough rice samples were
prepared for each commingling ratio. Individual lots were divided into close approximation of the required quantities using a grain divider, weighed to achieve the proportions in the
table and then mixed in respective proportions.
Each commingled sample was mixed for 2 minutes using a
rotary rice grader. For each of the 11 commingling ratios and
four individual lots, four 150-gram samples were prepared, allowing for samples from each to be milled for either 10-, 20-,
30- or 40-second durations. This procedure enabled quantifying the duration required to reach the desired degree of milling levels, researchers said.
Milled rice yield was calculated as a mass percentage of the
original 150 grams of rough rice remaining as milled rice, comprising intact (head rice) and broken kernels. Head rice yield was exFebruary 2015 / World Grain / www.World-Grain.com
RICE QUARTERLY: MILLING PROPERTIES OF COMMINGLED RICE
rice kernels of the individual lots were

measured using an image analyzer.
Table 1. Experimental design for commingling

samples from the four cultivar lots within each year.
Commingle
Cultivar-Lot Type
Commingling Ratios
CL XL745/CL 151
Hybrid/Pureline (H/P)
0:100, 10:90, 25:75, 50:50, 75:25,

90:10, and 100:0
CL XL745/CL XL729
Hybrid/Hybrid (H/H)
0:100, 25:75, 50:50, 75:25, and 100:0
Wells/CL 151
Pureline/Pureline (P/P)
0:100, 25:75, 50:50, 75:25, and 100:0
Source: Basutkar, Siebenmorgen, and Mauromoustakas.
pressed as the mass percentage of the 150

grams of rough rice remaining as head rice.
Surface lipid content (SLC) of head
rice and total lipid content (TLC) of
ground, brown rice were measured using a lipid extraction system. While SLC
was measured for all head rice samples,
TLC was measured only for brown rice
from the individual lots.
Whiteness and yellowness of all
head rice samples were measured using
a colorimeter.
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Head rice chalkiness was measured for

individual and commingled samples that
had been milled for durations that produced a degree of milling closest to 0.4%
SLC. Brown rice chalkiness was measured only for brown rice samples of the
individual lots. Chalkiness was measured
using an image analysis system.
Bulk density of brown rice from each
of the individual lots was measured using a bulk density test weight apparatus.
Length, width and thickness of brown
RESULTS
Researchers noted that there were differences in bulk densities, kernel dimensions,
chalkiness and TLCs of brown rice in the
different samples, both the individual cultivars and the commingled. They speculated
these differences could have caused differences in milling behavior of the individualcultivar lots and commingled samples.
Researchers examined the milling durations required to attain a target degree
of milling of 0.4% SLC. In the hybridpureline commingle sample from 2011,
the milling durations initially increased
from the 0:100 ratio to the 10:90 ratio,
decreased to the 50:50 ratio, and leveled
off thereafter. Similarly, milling durations required by the 2012 hybrid-pureline commingle increased from the 0:100
ratio to the 10:90 ratio, decreased to the
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66
90:10 ratio, and then remained constant.

The pureline brown rice kernels were
shorter and had greater TLC and lesser
brown rice bulk density than the hybrid in both years. When commingled,
properties of the purelines, particularly
the greater TLC, are postulated to cause
the pureline kernels to require a longer
milling duration than the hybrid kernels.
Moisture?
Therefore, researchers said these factors

could have caused, or at least contributed to, the increase in milling duration.
In the hybrid-hybrid commingled sample from 2011, there was a slight trend in
increasing milling durations away from
the 0:100 ratio, with the durations remaining constant with ratios beyond the
25:75 ratio. In the 2011 pureline-pureline
Protein?
Analyzers
capture value
Ash?
Falling Number?
Gluten?
Water absorption?
s+YEARSKNOWLEDGEEXPERTISE
s&UNCTIONALCOMPOSITIONALANALYSIS
s&LOURGRAINSOILSEEDS
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commingle, there was also a very slight

trend in increasing milling durations
away from the 0:100 ratio, but then the
durations generally decreased with ratio.
Therefore, the trends in milling durations
of the 2011 hybrid-hybrid and purelinepureline commingles of slight increases
away from the 0:100 ratio are similar to the
trends in milling durations required by the
hybrid-pureline commingles. Differences
in kernel-to-kernel milling rates could
have contributed to this trend.
Researchers observed differences in
milling durations required by the hybrid-hybrid commingles from 2011 and
2012. Bran removal rates are speculated
to have been different in the 2012 vs.
2011 commingles due to overall kernel integrity differences and associated
lower HRYs in 2012 vs. 2011. In addition, the kernels were of similar width in
2011, but one variety was wider in 2012.
Similarly, differences were seen in
milling durations required by the pureline-pureline commingles from 2011
and 2012. In addition to the overall
milling yield differences, differences
may also have occurred because one
variety had a greater brown rice bulk
density in 2011. However, in 2012, the
trend was reversed, with trends in other
brown rice properties remaining constant over the two years.
Consistent trends in milling yields
were observed in all commingles across
both harvest years. MRYs and HRYs either increased or decreased with the increasing percentage of a particular cultivar in a commingle in both harvest years.
For example, in the hybrid-pureline
commingle from 2011, MRYs of the
commingled samples increased from
72.9% to 74.4%, and HRYs decreased
from 66.7% to 62.5% (See Figure 1, page
70), as the percentage of CL XL745 in
the samples increased from 0% to 100%.
This can also be interpreted as a decrease
in MRYs of the commingled samples from
74.4% to 72.9% and an increase in HRYs
from 62.5% to 66.7% with an increase in
the percentage of CL 151 in the samples.
Researchers said when two cultivars
were commingled in any proportion and
68
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Figure 1. Head rice yields (HRYs) predicted at a degree of milling level of 0.4%
surface lipid content (SLC), estimated using regression analyses of HRY vs. SLC
data, for the (a) CL XL745/CL 151, (b) CL XL745/CL XL729, and (c) Wells/CL 151
commingles in 2011 and 2012.
2011 2012
(a) Hybrid:Pureline
70
57.5
60
HRY (%)
66.7
66.7
66.2
55.2
65.6
63.9
63.7
62.5
53.6
49.8
50
46.5
46.0
45.0
40
30
0:100
10:90
25:75
50:50
75:25
90:10
100:0
% CL XL745 : % CL 151
(b) Hybrid:Hybrid
70
62.5
61.9
61.8
61.5
61.2
HRY (%)
60
50
45.0
39.5
42.2
41.8
40.6
40
30
0:100
25:75
50:50
75:25
100:0
% CL XL745 : % CL XL729
(c) Pureline:Pureline
70
HRY (%)
60
66.7
65.8
63.9
62.5
59.7
57.5
49.1
50
45.7
40.7
40
36.3
30
0:100
25:75
50:50
75:25
100:0
% Wells : % CL 151
Source: Basutkar, Siebenmorgen, and Mauromoustakas.
milled to a target degree of milling of

0.4% SLC, the resulting MRY of the
commingled sample was very close to
the weighted average MRY of the indi70
vidual-cultivar lots milled separately.

HRYs showed similar results. However,
in 2012, when HRYs of most of the individual-cultivar lots were low, the differ-
ences between HRYs and weighted average HRYs of the commingled samples
were between 0 and -3 percentage points.
This is interpreted to mean if a commingle contained at least one cultivar
with a low HRY and was milled to a target degree of milling of 0.4% SLC, the
resulting HRY of the commingle was less
than the level expected by calculating the
weighted average HRY of the individualcultivar lots milled separately.
Thus, there was a small deleterious
impact on HRYs when the individualcultivar lots being commingled had poor
HRYs, researchers said.
Negligible differences were observed
in the head rice whiteness and yellowness of commingled samples across
commingling ratios. This indicates that
when the DOM of commingled samples
were adjusted to 0.4% SLC, head rice
color of the commingled samples did
QRWYDU\VLJQLFDQWO\UHVHDUFKHUVVDLG
Head rice chalkiness of the commingled samples trended according to the
weighted average of the individual-lot
chalkiness values. The trends did not indicate positive or negative differences.
In summary, researchers concluded
the MRYs, HRYs, and head rice chalkiness of commingled samples trended according to the weighted average of the
individual-lot MRYs, HRYs, and head
ULFHFKDONLQHVVUHVSHFWLYHO\1RVLJQLcant differences were observed in head
rice whiteness and yellowness of the
commingled samples milled to the same
degree of milling (0.4% SLC).
In addition, limited evidence suggested
that commingling of cultivar lots with
poor HRYs can deleteriously affect HRYs
of commingled samples to some extent,
and speculative evidence suggested that
the individual-lot brown rice TLC, length,
width, and bulk density affect the milling dynamics of commingled samples.
7KHVHQGLQJVDUHLQWHQGHGWRKHOSGHFLGH
if individual-cultivar lots should be commingled, given the brown rice and milling
properties of these cultivar lots.
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RICE QUARTERLY
Rice
News Roundup
Vietnams outlook for
rice exports mediocre for 2015
HANOI, VIETNAM The Vietnam Food Association (VFA) has

scaled back its forecast for rice exports in 2015 given the lackluster
numbers in 2014.
For the year ended December 2014, Vietnam exported 6.316 million tonnes of rice, grossing $2.789 billion in revenue, down 5.47%
from the previous year in volume and 3.59% in value.
Rice exports were lethargic, ranking third among the worlds
largest exporters after Thailand (10.5 million tonnes) and India (10
million tonnes). Market analysts at the VFA attribute the slump to
the sharp decline in demand for rice in the African markets, overproduction by Thailand and India along with lack of growth in
Asian markets.
$QDO\VWVDWWKH9)$KDYHUHSRUWHGWKDWWKHGLIFXOWLHVIURP
will carry over and continue to negatively affect the market in 2015.
Last year, exports of rice via the Chinese borders skyrocketed,
helping clear stockpiles. However, the border trade is fraught with
risks and does little to bring in the large foreign currencies.
According to VFA statistics, rice exports on record through the
Chinese border was roughly 650,000 tonnes, but the real volume of
rice transported from the Mekong Delta region to the northern region
via Haiphong Port was substantially higher. The best estimates availDEOHSXWWKHJXUHDWFORVHUWRPLOOLRQWRQQHV
VFA Secretary General Huynh Minh Hue said in addition to processing and consuming rice, enterprises have improved coordination
with farmers and improved the quality and value of rice.
The VFA has forecast the rice supply and demand for 2015 to
remain unchanged from 2014, but the market will continue to face
challenges with sustainability and a lot needs to be done to rev up
the industry.
VFA forecast that more than 7 million tonnes of rice will be exSRUWHGLQLQFOXGLQJWRQQHVLQWKHUVWTXDUWHU7KLVLV
the lowest level for the quarter for the past several years.
9)$&KDLUPDQ1JX\HQ+XQJ/LQKVDLGIRUWKHUVWTXDUWHURIWKH
year, businesses have only signed contracts to ship around 500,000
tonnes of rice and they must export an additional 400,000 tonnes to
meet the set plan. Currently, the domestic price is competitive as it
is lower than or as same as other rice exporters at $380 per tonne for
5% broken rice.
Myanmars rice exports to China surge

NAYPYIDAW, MYANMAR Myanmars rice exports to China
through the Muse border crossing have swelled due to increased demand from China and fewer seizures by Chinese authorities, according to merchants from Muse.
On average, about 4,500 tonnes of rice and 1,500 tonnes of broken rice are exported daily through Muse Trade Camp. More than
WRQQHVRIULFHDQGEURNHQULFHKDYHEHHQH[SRUWHGWKLVVFDO
year, said Chantha Oo, vice-chairperson of the Muse Paddy Wholesale Center.
Myanmar urged China to buy at least 1 million tonnes of rice in
72
2015, and three Chinese companies have each agreed to buy 280,000
tonnes, according to the Myanmar Rice Federation.
In order to export rice to China, Myanmar rice exporters need cerWLFDWHVLVVXHGE\WKH&KLQD&HUWLFDWLRQDQG,QVSHFWLRQ&RPSDQ\
(CCIC) after inspections. The CCIC planned to open its Myanmar
RIFHLQ<DQJRQLQ-DQXDU\
'XULQJ WKH VFDO \HDU ERUGHU WUDGH EHWZHHQ 0\DQmar and China has increased, with the trade volume reaching a value of more than $1 billion, according to the Myanmar
Commerce Ministry.
RICE NEWS ROUNDUP
African countries focus on boosting rice production

KAMPALA, UGANDA Several ministers of agriculture from Africa were to meet in Kampala, Uganda in early February to discuss
rice research and development, production and policy. The meeting,
known as the 30th Extra-Ordinary Session of the AfricaRice Council of Ministers, was to appoint a new director general for AfricaRice Center.
It will be very important for the continent because AfricaRice
is a pan-African intergovernmental research that oversees research
and development of rice, which is now a priority crop, said Jimmy
/DPR SULQFLSDO UHVHDUFK RIFHU 1DWLRQDO &URSV 5HVRXUFHV 5Hsearch Institute (NaCRRI), Namulonge. He is on the national organizing committee.
There over 25 member states of the AfricaRice Council. Currently,
Adam Traore from Mali is the interim director-general, while Ugandas minister of Agriculture, Tress Bucyanayandi, is the chair of the
Council of Ministers.
Sierra Leonean, Harold Roy-Macaulay, was nominated by the
board of trustees for the position of director general. The board nomi-
nated him at its meeting held in Cotonou, Benin, in September 2014.

:LWKWKHH[FHSWLRQRIDIHZFRXQWULHVWKDWKDYHDWWDLQHGVHOIVXIciency in rice production, rice demand exceeds production in Africa.
Large quantities are imported to meet demand at a huge cost.
Africa consumes a total of 11.6 million tonnes of milled rice per
year, of which 3.3 million tonnes are imported. As many as 21 of the
39 rice producing countries in Africa import between 50% and 99%
of their rice requirements, according to the International Rice Commission (IRC).
The distribution of rice imports on a regional basis appears
skewed. North and Central Africa regions set the lower limits at 1.7%
and upper limits at 71.7%, respectively.
$IULFDVLQDELOLW\WRUHDFKVHOIVXIFLHQF\LQULFHLVWKHUHVXOW
of several major constraints in the rice industry which require urgent redress to stem the trend of over-reliance on imports and to
satisfy the increasing demand for rice in areas where the potential
of local production resources is exploited at very low levels, the
IRC said.
Thai rice exports to dominate

BANGKOK, THAILAND Thailand is again expected to dominate global rice exports, with shipments estimated at 10.11 million
tonnes this year.
The Commerce Ministry said Thailand exported 10.8 million
tonnes of rice last year, a rise of 63.6% from 2013. Export value rose
by 22% to $5.37 billion from $4.42 billion in 2013.
Commerce Minister Chatchai Sarikulya attributed the surge mainly to the joint effort by the private and public sectors to rev up selling
annual produce and the governments rice stocks.
Global rice production will fall slightly by 0.3% this year to
475 million tonnes due to lower production anticipated in India,
Japan, Pakistan, Egypt, Sri Lanka and Nigeria, the ministry said.
The worlds rice consumption, meanwhile, is estimated at 483
million tonnes, about 7.7 million tonnes higher than global output.
Global rice trade is expected to hit 41.9 million tonnes this
year, up slightly from 41.88 million tonnes last year. Strong
import demand is anticipated, particularly for China (4 million
tonnes), Nigeria (3.5 million tonnes), Iran and the Philippines (1.7
million tonnes each).
7KH2IFHRI$JULFXOWXUHDQG(FRQRPLFV2$(HVWLPDWHV7KDLlands rice production from the main crop of 2014-15 at 27.1 million tonnes, a slight increase of 0.06% from the previous season.
Overall, rice planting in the season was on the decline following the states policy to discourage farmers from growing
several crops a year for fear of water shortages, especially in
irrigated areas.
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The editors of World Grain gather relevant stories

on the industry from news sources world wide and
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74
FEATURE
U.K. MILLING
INDUSTRY
checking for soy in flour
C
oncerns over the need to label for allergies, rather than

any wider issues, triggered a decision by British authorities to act on information from the milling industry
DQGVWDUWWHVWLQJZKHDWRXUIRUWKHXQLQWHQGHGDGPL[WXUHRI
soy. The move came as new labeling rules for allergens were
about to take effect.
The Food Standards Agency (FSA) has started a sampling
and testing program at milling plants in the U.K. to test for
WKHSUHVHQFHRIVR\LQZKHDWRXUWKHDJHQF\DQQRXQFHGLQ
2FWREHU7KLVIROORZVUHSRUWVWKDWZKHDWRXUPD\FRQWDLQ
WUDFHVRIVR\
Previous studies have shown that soy may be present
DWORZOHYHOVLQZKHDWRXULWVDLG$VXUYH\FDUULHG
out by the National Association of British and Irish Millers
QDELPVKRZHGWKDWORZOHYHOVRIVR\ZHUHSUHVHQWLQRXW
RIVDPSOHV
On the basis of the evidence we have received to date, the
)6$EHOLHYHVVR\LQRXULVXQOLNHO\WRSRVHDULVNWRSHRSOH
ZLWKDVR\DOOHUJ\DQGGRHVQRWQHHGSUHFDXWLRQDU\ODEHOLQJ
the agency said.
There arent limits set out in legislation, but the FSA has
JXLGDQFH RQ WKH DGYHQWLWLRXV SUHVHQFH RI DOOHUJHQV )6$
VSRNHVPDQ %UDGOH\ 6P\WKH FRQUPHG WR World Grain. It
recommends that food manufacturers only apply precautionary allergen labeling on foods after a thorough risk assessment
and where there is a real risk to the consumer.
7KHORZOHYHOVRIVR\IRXQGLQZKHDWRXUE\LQGXVWU\WHVW
LQJDUHQRWFRQVLGHUHGWREHVXIFLHQWWRLQGLFDWHIRRGDGXO
teration. At present, the data does not suggest that the industry
76
By Chris Lyddon
Nabim survey from 2013 shows low

levels of soy were present in 15 of
45 samples
isnt taking the necessary steps to avoid its presence. We will
be verifying this under our own sampling program to ensure
compliance with U.K. and E.U. law and that consumers are
EHLQJSURYLGHGZLWKDFFXUDWHLQIRUPDWLRQ
The FSA is not aware of other E.U. Member States carrying
out similar tests but as a known risk, it is likely that industry
and/or regulatory authorities in other countries will also be surYH\LQJZKHDWRXUIRUWKHDGYHQWLWLRXVSUHVHQFHRIVR\KHVDLG
The FSA sampling and testing program was initiated in
response to concerns raised by industry in the U.K. about the
SUHVHQFHRIORZOHYHOVRIVR\FRQWDPLQDWLRQLQZKHDWRXU7KH
levels of soy found during industry sampling do not present a
public health risk to those with soy allergy and therefore we
ZLOOQRWEHDSSURDFKLQJRWKHU0HPEHU6WDWHVRQWKLVLVVXH
We will, however, share the results of our sampling and testing program with the European Commission and other Member
6WDWHV RQFH FRPSOHWH KH VDLG :H DUH DZDUH WKDW +HDOWK
Canada has been actively looking at the issue of agricultural
FRPLQJOLQJ UHVXOWLQJ LQ WKH SUHVHQFH RI VR\ LQ ZKHDW RXU
While the Canadian sampling has been relatively limited, their
FEATURE: U.K. MILLING INDUSTRY CHECKING FOR SOY IN FLOUR
advice is that levels found are considered

unlikely to trigger an adverse reaction in
soy allergic consumers.
it. Allergies obviously, arent always

just anaphylaxis.
There is always a risk of cross contamination, she said. The biggest risk
SOY ONE OF TOP ALLERGENS
is in factories where they use the same
Lindsey McManus, Deputy CEO type of equipment to make different
of allergy charity, Allergy U.K., ex- products. Obviously, coming across the
plained that 14 allergens will have by sea, the risk is going to be minor. But it
law to be labeled.
is how things are stored, and some peoThat is relatively new, she said. It ple will choose still to put may contain
is going to be a mandatory thing, but for because there is that risk.
many years now there has been volunShe couldnt say how much soy it
tary labeling of 14 of the top allergens, takes to trigger an allergic reaction. It
and soy falls within that. If it suddenly does only need to be a small amount,
started turning up in something that you she said. Unfortunately, although there
wouldnt expect it in, like wheat, the is a lot of research that has gone into the
manufacturers would have to state that area of threshold levels, we dont have
on the ingredients to be compliant with VSHFLFWKUHVKROGVIRUFHUWDLQDOOHUJHQV
the regulations. It would no longer be It differs across the 14.
MXVWVRPHWKLQJOLNHZKHDWRXULILWZDV
That does depend on the individual
maybe bulked out with soy. That would as well. Some people become more senhave to be listed as an ingredient.
sitive, more likely to have a reaction, if
Potentially people can be allergic to they are unwell, or maybe theyve got
a bug or something, especially young

children who come down with viruses
all the time.
It may be during periods of exercise,
she said. Even with anaphylaxis, some
people can tolerate something at much
lower levels and have a less severe reaction. But if they are actually exercising
as well their risk goes up. It is a very difFXOWWRJHWDWKUHVKROGOHYHOULJKWDFURVV
the board.
The 14 allergies listed are: celery, cereals containing gluten, crustaceans, eggs,
VKOXSLQPLONPROOXVFVPXVWDUGQXWV
peanuts, sesame seeds, soy and sulphur
dioxide (sometimes called sulphites).
Its hoped the new laws will reduce
the number of reactions caused by people accidentally eating food they are allergic to, the agency said on its website.
On average, 10 people die and about
5,000 are hospitalized per year due to
allergic reactions. The majority of these
78
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FEATURE: U.K. MILLING INDUSTRY CHECKING FOR SOY IN FLOUR
avoidable deaths and hospitalizations

are caused by incorrect information being given about allergenic ingredients in
foods when eating out.
This is a growing issue in the U.K.,
with hospital admissions relating to allergies rising by 87% between 2002 and
2014, the agency said.
declared. Nabim wanted to ask the Food

Standards Agency whether labeling is
necessary and what the label should say.
We didnt think it was probably that
helpful to consumers to say may contain soy, he said. That doesnt really
reveal a great deal. They had a look at
it and had a lot on our numbers and said
that on the basis of what you have told us
SOY COMMONLY
we dont think it is appropriate to label
PRESENT IN WHEAT FLOUR
RXUDQGRXUSURGXFWVDVPD\FRQWDLQ
Alex Waugh, director of nabim, said soy. because the levels are low and there
the organization had done checks and is no evidence that presence at those low
found soy quite commonly present in levels causes an allergic reaction.
ZKHDWRXUPRUHFRPPRQO\SUHVHQWLQ
If you were to label it as may conRXUZKLFKLVGHULYHGRUKDVDSURSRU- tain soy, that would unnecessarily retion of imported wheat, but also found strict the diets of people who do have
LQ RXU ZKLFK LV GHULYHG IURP 8. problems with soy because there is no
wheat only.
evidence of any problem. They are doIf it was present, it was 0.01%, that ing their own survey now to see what
kind of level, he said.
WKH\ FDQ QG :H ZRXOG EH D ELW VXUThe checks were made because soy SULVHGLIWKH\QGDQ\WKLQJPXFKGLIIHUis on the list of allergens that should be ent to be honest.
The vehicles which carry wheat also

carry soy cargoes, soy meal and soybeans, he said. It is a big ingredient in
animal feed. We dont have the vehicles
in the supply chain which are dedicated
for exclusive use because it just would
be uneconomic. It would be silly to have
vehicles standing around doing nothing
when they could perfectly well be hauling beans or wheat or barley or maize.
He expected other E.U. countries
to wait and see what the FSA comes
up with. I wouldnt think they will
unless the FSA comes up with something, he said. People are changing
their labels anyhow because there are
new labeling requirements.
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FEED OPERATIONS
Upgrade ideas
for your feed mill
A look at a possible new test to gauge the
uniformity of mixed feed ingredients
by Fred Fairchild
Editors note: This is the second in a series of articles

by Fred Fairchild on ways to upgrade feed mills. The
UVW DUWLFOH DSSHDUHG LQ WKH 'HFHPEHU LVVXH RI
World Grain and more articles on this topic will appear
in future issues of the magazine.
Almost 15 years ago, Kansas State University released
information, through trade journals, regarding validation of
testing and identifying the moisture content in mixed feeds
DQG LWV HIIHFW RQ SHOOHW TXDOLW\ $ DW VXUIDFH FDSDFLWDQFH
plate was installed in the end of ribbon mixer and when the
product was fully mixed, by time standards recommended
for the type of mixer used, the plate and the control system
with it was able to accurately determine the moisture content
of the mixture.
Using this moisture, tests were run adding various amounts
of additional water to the mix to determine the affect the
moisture would have on the quality of the pellets made. It was
found that consistent PDIs could be maintained for similar
mixes of ingredient to be pelleted. This testing was done usLQJDSDWHQWHGDWSODWHVHQVRUDQGFRQWUROV\VWHPLQYHQWHGE\
AgriChem, Inc. of Ham Lake, Minnesota, U.S.
POSSIBLE NEW APPROACH TO MIX UNIFORMITY
The accepted standard for testing the uniformity of
PL[HG IHHG LQJUHGLHQWV KDV EHHQ GHWHUPLQLQJ WKH FRHIcient of variation between samples taken from a feed at
DVSHFLFWLPHRIPL[LQJ7KLVUHTXLUHGXVLQJDPDUNHURI
some type in the mix, stopping the mixer after mixing for a
VSHFLHGWLPHDQGWDNLQJVDPSOHVIURPYDULRXVORFDWLRQV
in the mixer and comparing the strength of the marker from
each location and determining the variation of the marker
strength for the locations.
,IWKHFRHIFLHQWRIYDULDWLRQ&YZDVDYDOXHRIRUOHVV
the mix was considered adequately mixed. This testing method
UHTXLUHGVKXWWLQJGRZQWKHPL[HUDQGH[WUDFWLQJVDPSOHV
from different locations in the mixer. The most commonly
82
used marker was the amount of the salt, and a Quan-Tab test
was run on each sample to determine the concentration of salt
in each sample and its variance with the other samples taken
at that time. This method takes time and is highly subject to
human error. The Cv value is basically an index of mixer efFLHQF\YHUVXVPL[LQJWLPH
An outcome of the mixture moisture testing developed
for the previous pellet quality study has also shown that
the uniformity of a mixture of a feed formula occurs when
the moisture in the mix becomes uniform. All of the different ingredients in a mix initially have their own moisture
content, and the blending and mixing of these ingredients
then becomes a uniform moisture as the mix is blended. An
on-line mixing sensor mounted in the end wall of a mixer
allows mixing time to be monitored and the mixer to be
controlled in real time, according to David Greer, president
of AgriChem Inc.
The theory behind this test suggests a possible new approach to determining mixing thoroughness. The dielectric
signal sent from the plate sensor has three components that
can be calibrated and accurately measured: moisture, density
and temperature.
According to experiments recently conducted by
AgriChem, Inc., for which a patent is pending, moisture
has the greatest affect. When ingredients are added to a
mixer, each has its own moisture content. At the beginQLQJ RI WKH PL[LQJ F\FOH HDFK LQJUHGLHQW RZV RYHU
the sensor plate and the sensor senses their individual
moisture content.
This causes an erratic signal to be sent to the control system readout. Further mixing causes the individual ingredient
responses to disappear and generates a new signal characteristic of the mixture. When this value reaches a steady state, it
is possible to determine that the ingredients are fully mixed
or blended.
AgriChem conducted an experiment to determine if this approach would work for measuring completeness of mixing a
FEED OPERATIONS
At this point, the meal was fully

mixed.
To further test the systems re4.6
sponse, two 1% moisture additions were
added sequentially to the mix and the
4.4
signal was measured constantly during
the addition and mixing cycle. The sigMixing Complete
4.2
QDO DJDLQ DWOLQHG LQGLFDWLQJ PL[LQJ
2 X 1% Moisture
was complete with the moisture addiAdditions
Steady
tions at about 6 minutes.
4.0
State
Thus, the Agrichem sensor and control system may give a precise time
3.8
when a mixture is complete without
stopping to take samples and determinMixer Filling
3.6
ing the Cv of mixture. This would allow
0
100
200
300
400
500
600
operators to know when a mix was comElapsed Time (Seconds)
pletely mixed and the mixer is ready to
discharge. AgriChem, Inc. plans to do a
Source: Agrichem Inc.
WKLUGSDUW\ YHULFDWLRQ RI WKLV PHWKRG
batch of ingredients. Results of that ex- onds, and another 60 seconds of mixing ,IYHULHGWKLVV\VWHPZLOODOORZRSHUD
periment are shown in Figure 1. The ex- time was required for the sensor to reach tors to only mix for the time needed with
periment began by placing corn meal in a DVWHDG\VWDWHDVVHHQE\WKHDWOLQLQJ each mixture. This could be a revelation
small (1,000-pound) research mixer. The of the signal from the sensor at about 2 in the feed industry. AgriChem also may
addition of the corn meal took 60 sec- minutes time.
use the sensor signals to possibly determine the density of a mix.
Sensor Signal
Moisture as a Mixing Marker
GEAR REDUCER IMPROVEMENTS

Most conveying and mixing equipment
used in the feed industry is powered from
[HG VSHHG PRWRUV WKDW VHOGRP PDWFK
Not having v-belt drives also

minimized sources for creating potential fire sources
due to slipping belts.
SafeTrack is a complete solution for monitoring your commodity temperatures. The SafeTrack system
provides simple, accurate and fast grain monitoring. Data scanning, analyzing, reporting and archiving is quick and easy.
SafeTrack in action
Easiest to use scanning and reporting.
Clear graphics for at-a-glance analysis.
Scanning and monitoring over the Internet is easy and

seamless from a PC, Phone or PLC.
Wireless radio options greatly minimize

conduit and installation costs.
SafeTrack systems are installed worldwide.

SafeTrack software is offered in many languages.
Expandable to any size system. Modular

components make servicing and future
expansion a snap.
Extremely rugged thermocouple cables

Digital signals for accuracy and reliability
Ohms testing for cable integrity check
Detailed audit trail
Grain level and volume measurement
d
Graphing of temperature trends
Manual and scheduled scanning and reporting
Automatically email reports or display on web
Automatic relay control for exhaust fans
and PLC interfacing
Modbus (ASCII) for direct control with a PLC
For more information, see Page 114
the required speed needed for the equipment. A shaft mounted gear reducer was
used in most applications. These reducHUVKDGD[HGVSHHGUDWLREHWZHHQWKHLU
input and output speeds generally of 5:1,
9:1, 15:1 or 25:1. This resulted in the use
of v-belt and pulley speed reduction or
speedup between the motor shaft and the
gear reducer input shaft. The v-belt drive
required regular maintenance to keep the
belts tight and the pulleys aligned. These
types of pulley drives required awkward
removable guards and were highly subject to weather conditions.
In building the new O. H. Kruse Feed
Technology Innovation Center at Kansas
State University, a newer type of gear reducer drive was used on the conveying
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FEED OPERATIONS
equipment. For shaft-mounted situations,

Baldor Dodge Motorized Torque-Arm II
(MTA) gear reducers were used.
A standard speed motor is directly
connected to the reducer and elimi-
with direct coupled motors. This also

eliminated the need for v-belt drives for
speed reductions.
Using these types of drives greatly
reduced maintenance requirements and
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connecting the motor to complicated

DGMXVWDEOHPHFKDQLFDOJHDUER[HVRUY
belt drives in which the width of one
of the sheaves could be changed that
would cause a change in the diameter
of the sheave over which the v-belt
One caution when using a VFD drive is to make sure tracked. These drives were high mainWHQDQFH DQG GLIFXOW WR KROG DW D SUHit has enough torque available to start a motor at a
cise speed.
slow speed.
In the late 1970s, the A.C. Variable
nates the need for a v-belt reduction eliminated v-belt drives. Not having v- Frequency Drive (VFD) starter was indrive. This is possible because this belt drives also minimized sources for troduced. Its design allowed the use of
new torque-arm reducer can be ob- FUHDWLQJ SRWHQWLDO UH VRXUFHV GXH WR standard 3-phase motors, but allowed
tained with many different internal slipping belts.
the frequency sent to the motor to be
gearing combinations that allow it to
adjusted. The adjustment in frequency
furnish the required output speed for VARIABLE SPEED DRIVES
caused the standard motor to operate at
the equipment or speeds close the
It is often desirable or required to run different speeds depending on the freequipment needs.
different pieces of equipment at differ- quency. The VFD operates by convertThis is a completely enclosed and easi- ent speeds while using A.C. 3-phase ing the input 3-phase A.C. electrical curly mounted motor and gear reducer drive. motors. These motors, using a stan- rent into D.C. power through the use of
Drives for screw conveyors and feed- dard starter, are designed to run at one diodes. The D.C. power passes through
ers used Dodge Baldor Quantis Right- [HGVSHHG,QHDUO\WLPHVEHLQJDEOH capacitors and the into a inverter where
Angle Helical Bevel (RHB) reducers to adjust speed was accomplished by different frequencies can be made and
the power converted back into A.C.
power to deliver to the motor. By using
a VFD, the speed can be changed over a
broad range. The VFD drive has brought
versatility in powering equipment using
a standard speed motor that can be adMission
justed to multiple speeds.
World-Wide
One caution when using a VFD drive
Technology
is
to make sure it has enough torque
Group
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to start a motor at slow speed.
Know-how
System for your Key Machines.
Most
modern
VFDs include this feaCompetence
ture. The reason this is needed is that
a motor, powering the same load, has
more starting torque at high speed than
it does at low speed. When running,
LW LV HDV\ WR UHGXFH WKH VSHHG VLJQLcantly, but if the equipment is stopped
at the low speed, it will not restart under load at that speed unless adequate
torque is available.
Fred Fairchild is feed science professor emeritus
in the Department of Grain Science 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 fjf@k-state.edu.
For more information, see Page 114
86
September 11
XXI Annual
International Conference
"Black Sea Grain and
Oilseeds 2015/16"
Moscow, Russia
October-November
IX International Grain
Trading Conference
"Global Grain Outlook 2015"
Sharm El Sheikh, Egypt
June 8 - 11
XVI International Grain Round
"Grain market yesterday,
today, tomorrow"
Gelendzhik, Krasnodar
Region, Russia
September 11
"3rd Grain Dinner"
Moscow, Russia

March 3 - 4
IV International
Agrotechnological
Conference
"AgroHighTech XXI"
Rostov-on-Don, Russia
FEATURE
COMPARING MAJOR
SOYBEAN EXPORTERS
S
oybean transportation to overseas markets is more predictable in the U.S. as opposed to other soybean exporting giants Brazil and Argentina, according to a study
published in November 2014 by HighQuest Consulting.
Our detailed study of soybean transportation networks concluded that despite the fact that the majority of U.S. inland soybean origination is further away from the export terminals than
Brazil or Argentina, its system of roads, bridges, highways, railroads and navigable waterways and ports place it in the position
to be the most economical and reliable supplier to international
customers, said Bill Devens, managing director and co-head
of Danvers, Massachusetts, U.S.-based HighQuest Consulting.
The 65-page study, performed on behalf of the United States
Soybean Export Council (USSEC) and the Soy Transportation
Coalition (STC), highlights the reasons that have resulted in
the U.S. soybean industry achieving the reputation of being
the most cost-effective and reliable supplier of soybeans and
soy products in the international marketplace.
7KHQGLQJVZHUHIXUWKHUVXSSRUWHGZLWKUHVHDUFKRQWUDQVLW
times, noting that soybean shipments from the U.S. will arrive
within three days of the expected delivery date. That number
rises to seven days for shipments from Argentina, and to 15
days when arriving from Brazil.
Additionally, the study explained through detailed tables and graphs the differences in transportation costs and
predictability for each of the following nine international
destinations: Shanghai, China; Tokyo, Japan; Kaohiung,
Taiwan; Jakarta Indonesia; Ho Chi Minh, Vietnam; Manila,
Philippines; Hamburg, Germany; Rotterdam, Netherlands;
Port Said, Egypt. The complete study can be found at: http://
www.highquestpartners.com/news_story.php?id=265.
This study is a key benchmark in our close watch over the
transportation industry in the U.S., where in the past couple
of years, while still on par with exceptional delivery, transit
88
by Arvin Donley
Study finds U.S. holds edge over

Argentina and Brazil in soybean export
cost-effectiveness and reliability
WLPHV KDYH LQFUHDVHG SDUWLFXODUO\ LQ WKH 3DFLF 1RUWKZHVW
area, said Mike Steenhoek, executive director of the Soy
Transportation Council. We need to remain diligent in the
examination of these issues to ensure our nation improves its
transportation for the agricultural sector, and this study provides valuable information in that endeavor.
CHINESE COMPANIES SURVEYED
As part of the study, 26 Chinese soybean buying companies
were sent surveys which posed questions about predictability
of delivery and the impact that late shipments have on their
business, and 11 companies responded. The respondents said
predictability of delivery is a key factor when deciding the
origin to choose for soybean purchases.
2YHUDOOWKHUHVSRQGHQWVLGHQWLHG%UD]LODVWKHOHDVWSUHGLFWable origin in terms of late shipments during the peak export
season, followed by Argentina and the U.S. The respondents
said U.S. shipments arrive within three days of the expected
arrival date and Argentina shipments arrive with one week, but
Brazil can take as long as four weeks to arrive. They said the
average amount of time they have to wait for Brazilian soybean
shipments during peak season is close to 15 days.
The respondents added that they would choose U.S. soybeans over South America during the months of February,
March and September if the price spreads between the origins
FEATURE: COMPARING MAJOR SOYBEAN EXPORTERS
Average interior Freight as a percentage of total freight from major origins to major destinations 2009-13 (%)
Mitchell,
South Dakota, U.S.
Davenport,
Iowa, U.S.
Sorriso-Santos,
Brazil
Sorriso-Paranagu,
Brazil
Londrina,
Brazil
Runo,
Argentina
Shanghai, China
63%
31%
70%
69%
32%
29%
Tokyo, Japan
64%
32%
68%
69%
32%
28%
Kaohsiung, Taiwan
61%
31%
68%
69%
32%
29%
Jakarta, Indonesia
56%
30%
70%
71%
34%
30%
HCMC, Vietnam
58%
31%
69%
70%
33%
29%
Manila, Philippines
59%
29%
70%
69%
32%
28%
Hamburg, Germany
N/A
43%
78%
78%
43%
39%
Rotterdam, Netherlands
N/A
43%
78%
78%
43%
40%
Port Said, Egypt
N/A
42%
77%
78%
43%
39%
Source: USDA Brazilian Transportation Report; Transportation Consultants, Inc; HighQuest Analysis
is narrow because of the dependability of

U.S. shipments.
TRANSPORTATION COSTS
According to the report, Argentina
enjoys the cheapest transportation cost
to the major destination markets primarily, because interior freight rates in

Argentina are very low due to the short
distances that soybeans have to travel
to reach the Port of Rosaria. Although
Argentina experiences some disadvan-
tages in ocean freight, because upriver

facilities cannot load full Panamaxes
due to low drafts in the Parana River
and thus must be topped off in either
Bahia Blanca or Rio Grande, the interior transportation advantage more than
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makes up for any ocean freight disadvantages.

The U.S. has two outlets for exporting soybeans: The
3DFLF1RUWKZHVW31:DQGWKH*XOIRI0H[LFR$OWKRXJK
WKH31:KDVDVLJQLFDQWDGYDQWDJHRYHUWKH*XOILQRFHDQ
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competitive on shipments to Europe and Egypt due to ocean
freight distances.
WAITING TIMES
$FFRUGLQJ WR WKH UHSRUW IURP 86 VR\EHDQ
shippers experienced very little to no waiting times in the
31:DQG12/$DQGGHPXUUDJHSHQDOWLHVZHUHJHQHUDOO\
low or nonexistent.
:DLW WLPHV LQ $UJHQWLQD KDYH LQFUHDVHG GXULQJ WKH SHDN
H[SRUWLQJVHDVRQEXWDUHVWLOOUHODWLYHO\VKRUWDERXWRI
WKRVHLQ%UD]LOWKHVWXG\VDLG
,Q%UD]LOZDLWWLPHVGXULQJWKHSHDNVHDVRQKDYHEHHQH[
WUHPHO\KLJKRYHUWKHODVWWZR\HDUVHVSHFLDOO\LQWKHSXEOLF
EHUWKV LQ 6DQWRV DQG 3DUDQDJXi GXH WR ZHDWKHU FKDOOHQJHV
the distance that soybeans have to travel to reach the port and
overall port congestion.
The study examined the impact of waiting times on trans
SRUWDWLRQFRVWV$VVXPLQJWKHDYHUDJHVKLSPHQWRIVR\EHDQV
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It said the unpredictability of delivery in Brazil also has
other consequences for soybean buyers. These include:
The inability to match soybean purchases with sales of
the end product which can lead to risk management challenges;
Customer complaints focused on the timeliness of soy
bean meal and oil on delivery;
,IWKHVKLSPHQWDUULYHVWRRODWHWKHEX\HUPD\EHIRUFHG
to purchase soybeans at higher spot prices from domestic bro
kers or even from another origin;
Potential slowdowns in capacity utilization; and
,IDUULYDOVDUHFRQVLVWHQWO\ODWHGXULQJWKHSHDNVHDVRQWKH
buyers might be forced to increase storage capacity so they can
hold more soybeans for processing in anticipation of late ship
ments and maintain their capacity utilization rates.
PORT INEFFICIENCIES IN BRAZIL
Port infrastructure is among the biggest challenges for
Brazilian soybean exporters using the ports of Paranagu and
6DQWRVWKHUHSRUWVDLG:DLWLQJWLPHVDUHQRWOLPLWHGWRWUXFNV
HQWHULQJWKHSRUWVEXWDOVRLQFOXGHYHVVHOVHQWHULQJWKHSRUWV
Brazil is working to improve ocean vessel waiting times and
H[SDQGWKHYROXPHVRIFDUJRSDVVLQJWKURXJKLWVSRUWVEXWLW
still has a long way to go, the study said.

The study noted that two of the major
problems for Brazilian ports are their
lack of draft and the narrow channels that
ships have to pass through to reach each
port. The draft restrictions in Paranagu
and Santos limit the amount of volume
that can leave the port as these two
ports cannot handle Cape-size or PostPanamax, while the narrow channels
limit the number of vessels that can enter and exit the port at a given time. Both
ports have announced concessions to the
private sector for expanding drafts and
channels of each port, but the concessions have not been auctioned and it is
likely to take time and considerable investment before the necessary improvements are made.
$QRWKHU VLJQLFDQW IDFWRU WKDW OHDGV
to ocean vessel delays in port is that
the berths in Paranagu and Santos do
not have protective structures to protect
grains from rain and there is limited

covered storage at the ports as well.
Therefore, when it rains, vessels docked
at the berths cannot load until the rain
stops and trucks have limited access to
unloading grains which leads to extended loading times, the study said.
HighQuest said it interviewed sevHUDO SRUW RIFLDOV LQ ERWK 6DQWRV DQG
Paranagu about potential investments in
structures that could protect grains during the rainy season and the general consensus was that this would never happen
as it is too expensive to build protective
covering which extends all the way out to
the ship to justify the investment.
The study said that, surprisingly, interior transit times from the Brazilian
interior to Santos and Paranagu
are relatively low compared to U.S.
routes. However, the ocean vessel
waiting times at the ports as well as
the fact that the per unit transporta-
tion cost of moving soybeans by truck

(relative to barge and rail) make interior transportation costs in Brazil very
high and impact the competitiveness
or Brazilian farmers substantially.
It is the interior transportation costs,
the study said, which reduces prices
for soybeans grown in Mato Grasso to
a level where soybean farmers in Mato
Grosso receive some of the lowest cash
prices for their soybeans in the world.
TRANSIT TIMES
Argentina, Brazil and the U.S. are
completely different markets in terms
of interior infrastructure and the relative
distance from the major soybean growing regions to the primary soybean export ports, the study found.
While soybeans in the U.S., on average, have to travel the longest distances
to reach the export facilities in NOLA and
the PNW, the advanced rail and river in-
94
Total transit times between key origin and destination markets (days)
Mitchell,
South Dakota, U.S.
Davenport,
Iowa, U.S.
Sorriso-Santos,
Brazil
Sorriso-Paranagu,
Brazil
Londrina,
Brazil
Runo,
Argentina
Shanghai
24.8
51.8
50.3
53.0
49.7
38.7
Tokyo
20.8
49.3
51.8
54.5
51.2
36.8
Kaohsiung
24.5
53.1
49.1
51.8
48.5
37.1
Jakarta
30.3
56.8
43.0
45.7
42.4
31.0
Ho Chi Minh City
27.8
56.3
46.1
48.8
45.5
34.2
Manila
25.8
54.3
47.6
50.3
47.0
36.0
Rotterdam
N/A
36.5
33.8
36.5
33.2
23.8
Hamburg
N/A
37.2
34.6
37.3
34.0
24.5
Port Said
N/A
41.4
36.3
39.0
35.7
26.3
Average
25.7
48.5
43.7
46.3
43.1
32.0
Source: Transportation Consultants, Inc; HighQuest Analysis
frastructure allows for soybeans to reach

the export markets in a timely manner and
the modern infrastructure at the ports allows for quick loading and limited delays.
The study noted that this is an advantage because rail lines and barges
allow U.S. exporters to load a greater
quantity of soybeans at a given time,
reducing per unit transportation costs,

despite the longer distances.
In Argentina, soybeans reach the
export facilities via truck, but the ma-
GOT
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OPED IN 1
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BY
8
98
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95
jority of soybean production occurs

within 200 to 250 kilometers of the
major ports, leading to short interior
transportation times, it said. Also, the
export facilities are located in areas
which are relatively easy to access via
highway and there is limited congestion at ports.
The vast majority of soybeans are
processed in country and sold into the
export market as soybean meal and soyEHDQRLOZKLFKPHDQVWKHUHLVVXIFLHQW
storage at the ports and farmers do not
have to wait at the ports to dump their
soybeans, the study said.
It noted that Brazil is entirely a different matter. Soybean and corn production
has grown substantially over the past
YH\HDUVHVSHFLDOO\LQWKH&HQWHU:HVW
state in Mato Grosso), yet storage and
transportation infrastructure have not
grown with it.
Approximately 61% of the soybeans
moved in Brazil are transported via

truck over long distances on mainly unpaved roads which leads to long transit
WLPHVDQGVLJQLFDQWVSLOODJHRQWKHZD\
to the ports. Spillage has been estimated
to be as high as 3% of the crop, according to Peter Goldsmith at the University
of Illinois.
During soybean peak season in
Brazil, the lack of storage infrastructure has forced soybean farmers to sell
their crop harvest and has led to inFUHDVLQJWUDIFRQWKHSRRUKLJKZD\V
according to the study. Lines to dump
soybeans at Santos and Paranagu
were estimated to be as long as 50 kilometers as truckers wait to dump soybeans at the port.
In addition to this, the report said port
infrastructure in Brazil is very weak. The
Brazilian government has determined
that it will dredge and increase the size
of the channels at the ports of Santos and
3DUDQDJXi WR H[SHGLWH WUDIF RZV EXW

these projects are still up for bid.
At the same time, the public berths
in Santos and Paranagu lack cover for
soybeans that are being loaded onto
ships, which means when it rains, corn
and soybeans cannot be loaded onto
vessels, adding to waiting times and increasing demurrage and other logistics
costs for exporters.
:KLOH WKH %UD]LOLDQ JRYHUQPHQW UHFognizes that the country has an infrastructure problem and has put several
projects up for private auction over the
ODVWYH\HDUVWKHUHSRUWIRXQGWKDWPDQ\
of these projects are behind schedule due
to bureaucracy and the fact that the projects that are being offered lack the internal rate of return to interest the private
sector. The same is true at the ports.
7KHSHUIHFWVLIWHUV
IRUFHUHDOJUDLQV
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FUEL YOUR
BUSINESS
WITH ARTICLE REPRINTS
FEATURE
The International Business Magazine for Grain, Flour and Feed
Focused
on quality
Box Type
Tru-Balance
Sree Venugopal a leader in

Indias Maida flour market
November 2014
FOCON
USED
QUALITY
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Sree Venugopal Flour
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Mills is among the fi

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rst in India to install
Antares roller mills.
the top-end
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Sree Venugopal Flour

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Reprints offer value as handouts at trade shows,

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Grain / www.World-Grain.com
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Find out more information at

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Gluten-free or Gluten Free-for-All
Preserving Roll Integrity
Wheat Traceability
An Arbitrators 7 Tests for the Workplace
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FEATURE
The importance of
LANDSCAPING
W
hat does your landscaping plan have to do with

pest control?
Quite a lot, actually.
Landscaping features can attract and harbor a variety of
pests. A landscaping plan that looks perfect on paper may in
practice become a perfect place for pests emerging from overwintering to settle, harbor, reproduce and pose threats to your
facility. Left unchecked, the grounds around your facility can
serve as staging areas for pests looking to get inside.
Trees, plants, grasses, parking lots, water features and even
\RXUURRLQHFDQSOD\ELJUROHVZKHQLWFRPHVWRPDQDJLQJSHVWV
Thats why its important to keep pests like ants, cockroaches
RXWGRRUW\SHVURGHQWVLHVDQGHYHQELUGVLQPLQGZKHQZRUNing on your landscaping and maintenance program this spring.
There are many steps you can take with your outdoor landscaping and maintenance to keep pests outside and at a distance from your facility. These practices should be part of a
broader Integrated Pest Management (IPM) program, which
focuses on proactive facility maintenance, exclusion and sanitation throughout your facility and surrounding property to
help stop pest problems before they start.
Crawling pests will be looking for a helping hand to get inside your facility,
and that help may come in the form of existing bushes or tree limbs that
brush up against your facility. Photos by Orkin.
98
by Zia Siddiqi
Trees, plants and grasses play

big roles when it comes to
managing pests
FOCUS ON THE FLOWERS
'LIIHUHQWWUHHVRZHUVJUDVVHVDQGEXVKHVFDQDWWUDFWDQG
harbor pests, which are always looking for sources of food,
ZDWHUDQGVKHOWHU)ORZHUVHVSHFLDOO\IUDJUDQWFRORUIXORZers in bloom can be alluring with their looks, but they can
DOVR DWWUDFW XQZDQWHG \LQJ SHVWV 3ODQWV WKDW SURGXFH QXWV
VHHGVIXOOVHDVRQRZHUVRUIUXLWVVKRXOGDOVREHDYRLGHGEHcause they attract pests looking for a quick meal. Additionally,
be sure to minimize ground covering plants, as they can provide cover and shelter for insects and rodents.
What you spread around plants can be just as impactful
as the plants themselves. For instance, organic mulch is a
hotspot for pests as the moisture mulch holds attracts a variety of insects and rodents, from roaches to mice. The mulch
also gives them a chance to burrow underground around
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Future of Flour
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Contents
Questions and Flour Problems

Wheat: More than just a Plant
The Milling Process
Global Wheat Trade
Wheat Quality in the United States of America
Canadian Wheat
Australian Wheat
Chinese Wheat: Current Situation and Prospects
Quality Characteristics of Indian Wheat
Argentinian Wheat
French Wheat Classes
Determining the Baking Quality

of Wheat and Rye Flour
Fundamentals of Rheology and
Spectrometry
The Role of Gluten Elasticity
in the Baking Quality of Wheat
Rye Flour
Composite Flours
Flour Fortification
Flour Treatment
Premixes and Complete Mixes
Wheat Flour Products in North America
Chinese Steamed Bread
Production of Baked Goods from
Wheat and Rye Flours - Methods and
Analysis of Faults
Noodles and Pasta
Future Trends
Conversion Tables and Abbreviations
Keyword Index
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FEATURE: THE IMPORTANCE OF LANDSCAPING
CREATE A BUFFER
Crawling pests will be looking for a
helping hand to get inside your facility, and that help may come in the form
of existing bushes or tree limbs that
brush up against your facility. Should
pests crawl their way onto your exterior walls via these vegetation avenues, they will have an opportunity
WR QG WKH VOLJKWHVW RI RSHQLQJV RU
cracks to crawl through. A vegetationfree buffer can help take this entry
option away.
Trim back bushes, trees and plants
to create at least a two-foot buffer between your walls and vegetation. To
take this buffer a step further, you can
install a 30-inch gravel strip around
Take time to look at your roofs and gutters to ensure that standing water is not present.
your facilitys perimeter. The uneven
your building to get out of plain sight.
of crawling insects. And work with your gravel obstructs pests like ants and
For example, consider using pencil pest management professional to deter- cockroaches from approaching and
cedar mulch, which retains less mois- PLQH ZKDW W\SHV RI SODQWV DQG RZHUV also discourages rodents, which genture and can actually repel certain types are best to plant around your property.
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FEATURE: THE IMPORTANCE OF LANDSCAPING
GO BEYOND THE BUSHES

You may not consider parking lots
and sidewalks to be part of your landscaping plan, but they can play a vital
role in your pest management plan.
Keeping these clean and clear can actually make your facility less attractive
to pests. Perform regular inspection of
these areas to make sure they are free
of trash or standing water. Should your
parking lot have vegetation islands, treat
them the same as the rest of the plants
and bushes around your facility.
Now is also a good time to take stock
of your facilitys exterior walls and roof.
Keep an eye out for any cracks that may
GHYHORSLQ\RXUEXLOGLQJVURRLQHVDQG
walls, and seal them with a weather-resistant sealant and metal mesh that prevents
rodents from gnawing through. Install
weather stripping around doors and windows and change the stripping regularly
to close any gaps that may develop.
Also, take the time to take a look at

your roofs and gutters to ensure that
standing water is not present. Standing
water and other debris can attract pest
birds like pigeons. Mosquitoes can
breed and lay their eggs in standing water of any size, so birdbaths, fountains,
ponds and even containers of water are
all potential homes to hundreds of biting, nagging insects. Make sure you
FKDQJHWKHZDWHULQELUGEDWKVUHHFWLQJ
pools and other water features at least
once a week to help prevent breeding.
Running water can help thwart mosquitoes from laying eggs on the surface, so
be sure any ponds or fountains are circulated regularly.
While checking around outside, pay
attention to your dumpsters, which can
be a gold mine for pests looking for
food. Additionally, odors from matter
decaying in dumpsters can attract pests.
Be sure to position them away from the
building and rotate them for cleaning on

a regular basis.
GET EVERYONE INVOLVED
Pest control should be a responsibility shared by your entire staff, including
grounds crews and maintenance teams.
Its best to integrate your pest management professional into your outdoor
landscaping and maintenance plans, so
that everyone is on the same page.
By working together and focusing on
these areas around your facility, you can
WDNHWKHJKWWRSHVWVRXWVLGH
Dr. Zia Siddiqi is Director of Quality Systems for Orkin.
A board certified entomologist with more than 30
years in the industry, Dr. Siddiqi is an acknowledged
leader in the field of pest management.
For more information, e-mail zsiddiqi@orkin.com or
visit www.orkincommercial.com.
STOP.
GRAIN.
ABRASION.
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WRGLDPHWHUVSRXWLQJ
6WDQGDUGOHQJWKVRI
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Sioux Rubber & Urethane
2620 Hawkeye Drive

visit us at
Sioux City, IA 51105 www.siouxrubber.com
866-603-8661
Fax 712-252-3258
email: sales@siouxrubber.com
101
FEATURE
Global feed
tonnage increases
Top 20 feed producing countries
(in million tonnes)
by Arvin Donley
Alltech survey estimates 2014 output at record

980 million tonnes
1. China
182.69
2. U.S.
172.45
3. Brazil
66.15
4. Mexico
esults of Alltechs annual Global

Feed Tonnage Survey, released
Jan. 23, found that around the
world in 2014, feed producers responded
to consumer demands for more protein
by increasing the number of mills that
produce animal feed and the amount of
product they generate. The survey revealed an estimated total of 980 million
tonnes of feed was produced globally, an
increase of about 2% over the prior year.
The top 10 feed producers in the world
remained the same as in 2013: China,
the United States, Brazil, Mexico, India,
Spain, Russia, Japan, Germany and
France. Some of the smaller countries
VDZ VLJQLFDQW MXPSV LQ SURGXFWLYLW\
including Indonesia, Turkey, Vietnam,
Poland, Romania and Morocco.
102
China once again won the title of leading feed producer with 182.69 million
tonnes manufactured throughout the
countrys 9,500 feed mills. However,
this is the second year the nation has reported a decline in production.
According to Aidan Connolly,
FKLHI LQQRYDWLRQ RIFHU DQG GLUHFtor of Alltechs Global Feed Tonnage
Survey, there were many areas of ups
and downs in worldwide production,
impacted by both positive and negaWLYH LQXHQFHV VXFK DV VORZ PDUNHWV
VKLIWLQJUDZIHHGPDWHULDOFRVWVXFtuating governance over import/export
standards and animal diseases such as
3('Y LQ SLJV DQG ELUG X LQ SRXOWU\
He estimates the feed industrys net
worth at $460 billion, based on aver-
30.7
5. India
29.43
6. Spain
29.18
7. Russia
25.66
8. Japan
24.31
9. Germany
23.58
10. France
22.16
11. Canada
20.35
12. Indonesia
19.98
13. Korea
18.58
14. Thailand
16.91
15. Turkey
15.42
16. Netherlands
14.33
17. Vietnam
14.10
18. Italy
14.04
19. United Kingdom
13.49
20. Philippines
12.38
Source: Alltech
FEATURE: GLOBAL FEED TONNAGE INCREASES
Species totals by region

(in million tonnes)
Region
Africa
Pig
Ruminant
Poultry
Aqua
Pets
Horse
Other
0.8
0.3
0.3
0.2
1.1
11
21.1
128.5
40
151.3
27
1.7
0.5
0.5
70
65
85
3.2
5.7
1.5
32.3
46.1
87
1.8
6.5
0.3
Middle East
0.1
7.1
17.6
0.7
0.2
Latin America
26
27
77
Asia
Europe
North America
Source: Alltech
age materials prices throughout 2014.

This years total feed tonnage estimate was a record, topping last years
estimate of 963 million tonnes and also
higher than 2012s 954 million tonnes.
2015 marks the fourth consecutive
year that Alltech has conducted a global
feed survey analyzing feed production,
Connolly said. This undertaking reTXLUHVDVLJQLFDQWDPRXQWRIZRUNHDFK
year, mainly because the feed industry is
measured differently and in varying degrees of thoroughness from country to

country. Yet, each year, better information is discovered and more is learned
about how farmers around the world
feed their livestock.
The Global Feed Survey assessed the
compound feed production from 130
countries in December 2014 through information obtained in partnership with
local feed associations and Alltechs
sales team, who visit more than 28,000

feed mills annually.
The United States and Brazil ranked
second and third, respectively, among the
countries, with the U.S. producing 172.5
million tonnes from 6,718 feed mills and
Brazil generating 66 million tonnes from
1,698 feed mills.
1XPEHU YH JOREDO SURGXFHU ,QGLD
had a considerable boost in feed production, up to 29.4 million tonnes, a 10%
increase over 2013, owing mainly to favorable weather conditions and improvements in farming methods and technology. Turkey, Romania, Tunisia and
%ROLYLDZHUHDOVRFODVVLHGDVKRWVSRWV
for growth and development, with each
reporting a second consecutive year for
increased production. When grouped in
regions, Africa and Latin America saw
the greatest growth in 2014, with Africa
experiencing growth in all species.
For me the story continues to be, in
104
FEATURE: GLOBAL FEED TONNAGE INCREASES
Average tonnage per region

Region
Total # feed mills
Total tonnage
Africa
1,150
34,570,000
Asia
13,736
350,540,000
Europe
5,165
232,580,000
Latin America
3,914
144,840,000
288
24,750,000
6,790
192,800,000
31,043
980,070,000
Middle East
North America
Total
Source: Alltech
terms of growth, the growth in Africa. This is the third year in

a row that Africa is the fastest-growing region in the survey,
up 9%, Connolly said. There are signs that it will continue
to grow even more. It is the continent with the highest feed
prices but it is also the area with the fastest growth.
He noted that Europe saw a 2% increase in feed production,
LWVUVWLQFUHDVHLQVHYHUDO\HDUV
POULTRY HAS LARGEST SHARE
When analyzed by species, poultry held its position as industry leader with a 45% share of the feed market at 439 million tonnes, despite a slight decline compared to last years
survey. Pigs and pets saw the largest percentage of growth in
2014, with pigs up to nearly 256 million tonnes and pets up to
nearly 22 million tonnes.
Pigs are the fastest growing species, Connolly said. Asia is
the leading pig producer globally followed by North America.
He noted that pet food reported a 5% increase but some of
that may be due to better reporting.
For example, last year we did not report Russia, he said.
North America is the leading pet food producer, followed by
Europe. Pet food production continues to increase in Africa.
Aquaculture again grew, up 1.8% to over 41 million tonnes.
Equine feed production saw a decline.
Aquafeed production being more or less the same is surprisLQJ EHFDXVH WKHUH KDV EHHQ D VLJQLFDQW LQFUHDVH LQ DTXDIHHG
SURGXFWLRQWKHODVWYHWRVHYHQ\HDUV&RQQROO\VDLG
He said Increasingly more consumers are asking questions
such as: How do feed animals create more nutritious food for
humans? How can a feeding program impact the environment and the availability of resources? How can agriculture
LQFUHDVHHIFLHQF\DQGWKHUHIRUHIHHGPRUHSHRSOH"
Answers to these questions and many others can be found
by starting with an examination of the feed animals are eating
worldwide, he said.
The Global Feed Survey outlines Alltechs estimate of the
worlds feed tonnage and trends to date and is intended to
serve as an industry resource for the coming year.
We want to hear from you Send comments and inquiries to
worldgrain@sosland.com. For reprints of WG articles, e-mail reprints@sosland.com.
105
SUPPLIER NEWS
Bhler Group receives Leonardo Education Award

UZWIL, SWITZERLAND The Bhler
Group announced on Dec. 30 that it received the Leonardo European Corporate
Learning Award.
The company received the award in the
Company Transformation category for
its ClassUnlimited training concept, which
Bhler runs in cooperation with the regional vocational school center. The concept
is based on a virtual classroom. This is inWHQGHGIRUWUDLQHHVZKREHQHWIURPDSHULRG
abroad in the last year of their apprenticeship
with Bhler. The vocational teaching in the
classroom at home is transmitted to the
other side of the world on two large screens
via video. Thus, the absent vocational students can participate in the local vocational
school instruction, for example, at a Bhler
location in the U.S. or China.

The Leonardo European Corporate Learning Award comes under the auspices of the
European Parliament as well as the German
Federal Ministry of Education and Research.
&KLHI([HFXWLYH2IFHU&DOYLQ*ULHGHUUHSresented the company to accept the prize.
As a globally positioned high-tech comSDQ\ZHUHTXLUHKLJKO\TXDOLHGHPSOR\HHV
whom we prepare for international assignments. Therefore, we use the most up-to-date
video technology for our training instruction, Grieder said at the award ceremony.
For almost 100 years, Bhler has been
providing training and further education.
At present, around 600 trainees worldwide
are completing their apprenticeship in 12
occupational areas. Bhler is currently
Bhler Chief Executive Officer Calvin Grieder accepted the Leonardo Education Award on behalf
of the company. Photo courtesy of Bhler.
training more than 300 apprentices in
Switzerland. More than two-thirds of them
will be accepted into regular employment
following completion.
Bhlers Bakery Innovation Center to offer new courses

UZWIL, SWITZERLAND The Bakery
Innovation Center (BIC) from Bhler is
expanding its selection of training courses,
particularly in the area of bakery technology.
Established in 2011, the BIC is part of the
research and training complex at Bhlers
headquarters in Uzwil, Switzerland.
The new courses include: Industrial BakLQJ ,QXHQFH RI 0LOOLQJ 7HFKQRORJ\ RQ
Baked Goods, Modern Sponge and Sourdough Process Technologies, Manufacturing
of German and Swiss Baked Goods, How
0LOOHUV &DQ ,QXHQFH WKH %UHDG 4XDOLW\
Laboratory Analyses for Flour and Bread
4XDOLW\ +\JLHQLF 3URFHVV 0DQDJHPHQW IRU
Bakeries, and Cost Savings by Optimizing
)ORXU4XDOLW\
The new BIC courses impart knowledge
for improving operational processes, Bhler
said. Key words such as scheduled communication, controlling, quality management,
production structures and operational organization are all part of todays industrial baking production 101. The business areas are
supplemented with information about auto-
The Bakery Innovation Center (BIC) from Bhler is expanding its selection of training courses, particularly in the area of bakery technology. Photo courtesy of Bhler.
mating production processes using production index numbers and the advantages of
a modern, central control in terms of safety
and traceability.
7KHOHYHORIGLIFXOW\LVRULHQWHGWRZDUG
the target audience. The courses may concern basics of baking production, or be structured as expert courses as well.
Cooperation events serve to expand exchange with national and international institutions such as the working group for
grain research (Arbeitsgemeinschaft fr
Getreideforschung) or Campden BRI. In
DGGLWLRQ WR WKH [HG FRXUVHV %,& LV DOVR
open for individual courses and in-house
company trainings.
Bhlers Polaris purifier sales top 800

UZWIL, SWITZERLAND Since Bhlers Polaris purifier
first entered the market in 2010, the company said it has sold
800 units worldwide.
7KH SXULHU FDQ EH VROG DV D VWDQGDORQH PDFKLQH RU DV SDUW RI
Bhlers Antares-Sirius-Polaris.
7KH3RODULVOLVWHGDVDUWLFOH045*DW%KOHULVSULPDULO\XVHGLQ
durum mills for manufacturing high quality semolina for the production
106
of premium pasta. With its high throughput capacity and increased yield
IRUORZDVKRXUVWKH3RODULVSXULHUFDQDOVREHXVHGLQPLOOLQJZKHUH
SDUWLFXODUO\OLJKWDQGWKXVORZDVKFRQWHQWRXUVDUHEHLQJSURGXFHG
Bhler said its customers appreciate the 20% increased throughSXWUDWHRIWKH3RODULVWKHPD[LPXPSXULFDWLRQFDSDFLW\ZLWKLWV
extremely high yield of speck-free semolina, the user-friendly operation and monitoring as well as the maintenance-free operation.
VISIT THE WEBSITE FOR THE MOST UP-TO-DATE NEWS

ON THE INTERNATIONAL GRAIN INDUSTRY
World Grain gathers information from around the global grain, flour and feed industries and
provides its readers with the information they need to stay informed and do their jobs.
Visit www.world-grain.com to sign up for our digital edition and daily e-newsletter.
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website
SUPPLIER NEWS
Dixon joins Lambton

WALLACEBURG, ONTARIO, CANADA Sandra Dixon
has joined Lambton Conveyor Limited as director of global business development for Latin America, the company
announced recently.
Dixon will play a crucial role in the continual growth and development of our Latin American markets, as well as our recent addition
of a commercial bin line, said Christian Jordan, vice-president of
sales and marketing.
Dixon brings almost 18 years of international

experience in the grain silo and handling industry and has worked very closely with Latin
American customers. She has traveled to more
than 25 countries and is a graduate of Eastern
Washington University with a bachelors degree
in international affairs and a minor in economLFV'L[RQLVXHQWLQERWK(QJOLVKDQG6SDQLVK
Dixon
Bradbury adds cut-to-length line

MOUNDRIDGE, KANSAS, U.S. The
Bradbury Group recently installed a 60-inch
by .070-inch cut-to-length line featuring a
Bradbury e-Drive leveler and an Athader rotary shear operating at 300 FPM, eliminating
the need for a looping pit.
The line was also equipped with a recoiler
giving the ability to rework secondary coils
into leveled prime coils. Athader joined The
Bradbury Group in 2012 which brought the
latest technologically automated coil processing lines including: slitting lines, cut-tolength lines, packaging and strapping lines.
The Bradbury Group installed a 60-inch X .070-inch cut-to-length line. Photo courtesy of Bradbury.
THE INDUSTRY AT YOUR FINGERTIPS
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The leading authority on the grain, flour and feed
industries offers a new medium to access news, features
and relevant content from anywhere.
Download the app today from the App Store

http://bit.ly/1wex3mv
108
SUPPLIER NEWS
Mhlenchemie adds pasta pilot plant to center

AHRENSBURG,
GERMANY
Mhlenchemie announced in January that in

response to the shortage of quality wheat for
pasta production it has expanded its technology center to include a pilot plant for pasta.
To complement our years of expertise
in raw materials, we have now invested
in a pasta laboratory of our own which
will enable us to meet our customers reTXLUHPHQWV HYHQ PRUH VSHFLFDOO\ VDLG
Managing Director Lennart Kutschinski.
On our Pavan pilot plant we can simulate
practically any industrial process. For example,
at the customers request we can test the effects
of different enzyme systems and adjust the
recipes accordingly. Is a compound from our
Pastazym series the most suitable for treating
WKLVSDUWLFXODURXURURQHIURPWKH(0&(GXU
series? How do they affect the taste, mouth feel
and stability after cooking? On our pilot plant
ZHQGDQVZHUVWRDOOWKHVHTXHVWLRQVRQRXU
FXVWRPHUVEHKDOI.XWVFKLQVNLVDLG
He said the new all-round service meets a
very real demand.
Our applications technology enables us to
QGSUDFWLFDOVROXWLRQVIRUWKHSDVWDLQGXVWU\
that reconcile quality and economy even in
GLIFXOW WLPHV ,Q UHFHQW SURMHFWV IRU H[DPple, we have replaced 75% of the durum with
bread wheat and achieved the same quality
DQG FRORU E\ XVLQJ 3DVWD]\P .XWVFKLQVNL
said. Support of this kind will become more
DQGPRUHVLJQLFDQWLQWKHIXWXUH
According to forecasts, the durum market
is facing massive losses in 2015. Jim PeterVRQIURPWKH1RUWK'DNRWD:KHDW&RPPLVsion predicts the smallest harvest of Triticum
durum in 13 years. The crop will be unsatisfactory in both quantity and quality.
This negative trend is to be seen in all the
important producing countries. Italy, Greece,
6SDLQDQGHYHQ&DQDGDWKHELJJHVWH[SRUWHU
of durum, are expecting serious losses. Bruce
%XUQHWW WKH KDUYHVW H[SHUW RI WKH &DQD-
dian Wheat Board, estimates that less than a

TXDUWHURIWKH:HVWHUQ&DQDGLDQGXUXPZLOO
achieve the top two quality categories.
Another severely affected area is North
Dakota, where about half of all the U.S. durum wheat is grown. Unusually high rainfalls
in the spring and autumn have done serious
damage to the harvest. This state is expecting
a fall in quantity of over 4%. The estimated

loss to the U.S. market as a whole is 8%.
In view of such bad news, insiders preGLFWWKDWQDQFLDOSUHVVXUHRQWKHSURFHVVLQJ
industry will increase massively in 2015.
Many pasta manufacturers will have to make
do with weaker durum qualities or resort to
PL[WXUHVRISDVWDDQGEUHDGRXU
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7400 Boone Ave. N Brooklyn Park, MN USA 55428
Toll Free 888-647-5475 gametmfg.com
Muhlenchemie has added a pasta pilot plant.

109
SUPPLIER NEWS
4B Components promotes Knapp to vice-president

MORTON, ILLINOIS, U.S. 4B Components Ltd. announced on
Jan. 14 that Brian Knapp has been promoted to the position of vicepresident with responsibility for technical sales and service for the
Electronics Division.
Brian has done a tremendous job managing the Tech Team and
has also become a valuable asset to the electronics sales department,
providing daily engineering support and technical input, said Johnny Wheat, 4B president. This promotion is well deserved recognition for the dedication and commitment that Brian has provided to
the company over the last 10 years.

After graduating from the University of Illinois with a bachelors of science degree, Knapp
started at 4B in 2005 as an engineer within the
Electronics Department and became tech team
manager in 2010. He is an active member of the
Grain Elevator and Processing Society (GEAPS)
and has made numerous industry presentations
on the subject of hazard monitoring.
Knapp
TORNUM to provide dryer to Glencore

KVANUM, SWEDEN TORNUM Polska Sp. z o.o., a fully
owned subsidiary of Tornum AB in Sweden, signed a contract
with Glenport Sp. z o.o., a subsidiary of Glencore, to supply a
heat recovery dryer and transport equipment, TORNUM said on
Jan. 28.
Glencore Sp. z o.o. is a leading Polish grain trader. They operate
more than 30 storage facilities in Poland, including a port elevator in
Szczecin, and have seven storage elevators.
The selected model of dryer is a HR4-22-4 and shall be in operation for the coming season, mainly running rapeseed.
This type of TORNUM dryer is able to save as much as 30% enHUJ\FRPSDUHGWRDFRQYHQWLRQDOFRQWLQXRXVPL[HGRZGU\HUVDLG
VDOHVPDQXNDV].DFD
Considering a dryer lifetime of 20 years and a capacity of 40

WRQQHV SHU KRXU WKH HQHUJ\ VDYLQJV ZLOO EH VLJQLFDQW DQG FRQVHquently there will be less fuel emissions, TORNUM said. The payback time for the additional investment involved in a heat recovery
dryer will be less than two years.
The dryer will be controlled by TORNUM Intelligent Dryer
Control (IDC), a software-based control system monitoring and
controlling the outgoing moisture content in continuous dryers.
With TORNUM IDC you take the guesswork out of the drying
process and minimize the risk of overdrying your grain just to be
on the safe side an expensive practice that can now be effectively
eliminated, Kaca said. Fewer manhours needed to monitor the drying process lower the costs even further.
TORNUMs IDC receives award

KVANUM, SWEDEN TORNUM announced on Jan. 26 that its
Intelligent Dryer Control (IDC) won the International Product Development Special Award on the AGROmashEXPO 2015 in Budapest, Hungary.
TORNUM IDC is a software-based control system monitoring and
controlling the outgoing moisture content in continuous dryers, con-
sisting of moisture sensors and a control unit. Via the user-friendly

interface, a user has full control over the entire drying process on a
PC or tablet.
Using information about incoming and outgoing moisture content, the
control unit sets the speed of the dryer discharge to obtain the desired
moisture content out of the dryer regardless of ambient conditions.
110
GEAPS and Kansas State University
Your Partners in Education
Credentials are valuable

because people look up to that
as a standard. Especially the
credentials KSU offer because they
are such a reputable university.
Brian Suphananonta, Assistant
to Chairman, Chiao Thai Hsing
Enterprise Co., Taiwan
The Grain Elevator and Processing Society (GEAPS) and the IGP Institute (formerly
the International Grains Program) are expanding their professional development
offerings. Along with the credential in Grain Operations Management, they will now
offer a credential in Grain Processing Management beginning in January 2015.
Credential in Grain Processing Managementt

Required courses focus on:
Miilll iin
M
ng pr
ng
prin
nci
c pl
p es
es
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To learn more, visit the GEAPS website at: www.geaps.com

aps.com
PRODUCT SHOWCASE
Mobile pneumatic unloader
Moveable truck sampler
Elevator protection
VIGAN Engineering S.A. (Belgium) manufactures a large range of equipment for handling grain and other agricultural products in
bulk. The Mobile Pneumatic Unloader type 200
is one of the most popular. It offers maximum
unloading capacity up to 250 tph, either on ship
deck, on a hopper or directly at quay level; no
dust emission, working only in suction and selfcleaning filter included; it is suitable for barges
and coasters but also for Panamax vessels. More
details are available at www.vigan.com.
Pfeuffer is a certified manufacturer of systems for sampling and instruments for quality control of grains. The company introduced
a new linearly moveable truck probe for a
sampling range of 18.8 meters (61.7 feet) to
8.8 meters (26.9 feet). The Rakoraf 2 linear is
using the patented and recognized CONVAC
air circulation system. The new NIR Granolyser
is an instrument for moisture, protein and oil
content. Pfeuffer completes the grain reception with automatic sample dividers Vario and
dockage testers MLN/SLN.
REMBE can equip elevators with the proper

venting and isolation solution to minimize
the impact of a combustible dust event.
The companys engineers can recommend a
customized product-mix solution including
EXGOVENT, EDP Explosion Panels, QBox
II/QRohr3 Indoor/Outdoor Venting Systems,
QAtomizer, QFlapCompact II Inlet Isolation
Valve, EXKOP Quench Valve system, used in
combination or separately.
Z600 steel storage silos
RGB color sorting machine
Grain coolers
Symaga is a Spanish company specializing in

the design, manufacture and supply of galvanized steel silos for storing needs, seeds, cereals, malt, oilseeds, grains, pellets, rice, and, in
general, for agriculture, agro-industry, biofuels
and biomass. Symaga supplies a wide range of
silos, flat up to 25,000 cubed meters, and hopper silos, reaching 12 meters in diameter with
45 hopper and 2,643 cubed meter capacity,
completely galvanized and with double welded
compression ring, which is also available with
60 and 66 hopper, depending on models.
The Satake EVOLUTION RGB+Shape optical

sorting machine uses high resolution full-color
cameras and long-lasting patented LED lighting to detect and remove defects in cereal
grains, seeds, corn, soybeans and many other
products. The EVOLUTION recognizes both color and shapes similar to the human eye making it possible to identify the smallest deviations. Satake also offers a range of advanced
sorting systems that incorporate CCD, UV, and
IR vision technologies.
CONSERGRA, S.L., established in 1969, designs and constructs grain coolers mainly used
for the preservation of grains, seeds, oilseeds,
nuts and perishable granulated products. Other
refrigerating units for different purposes in the
agro-food related industries are also produced
according to customer needs. Over the years,
CONSERGRA has gained lots of experience in
grain conservation through cooling, even under the harshest conditions of the desert or
tropics. The CONSERFRIO units preserve safely
and very cost-effectively millions of tonnes of
grains all over the world.
112
WORLD GRAIN ARCHIVE
1985
linking wheat deliveries, shipments, invoices, contracts, location

Major-General Muhammadu Bu- of wheat by class and quality, borhari, Nigerias head of state, has laid rowings, sales returns, grower paythe foundation stone of a new Bend- ments and other data important for
HO6WDWHIHHGDQGRXUPLOOIDFLOLW\DW decision-making as well as for the
Ewu. The 59-milllion-Naira (about boards day-to-day operations.
$75 million) project will consist of a
240-tonne-per-day feed mill, a 300- 1995
WRQQHSHUGD\RXUPLOODQG
tonnes of storage (one 20,000-tonne
The International Wheat Agreeand one 10,000-tonne silo).
ment will become the International
The project originally had been Grains Agreement and the Internaplanned during the administration tional Wheat Council (IWC) will
of former President Shehu Shagari. become the International Grains
But after the overthrow of the Council in accordance with a new
Shagari government, Brigadier J. International Grains Agreement apUseni, the appointed military gover- proved at a recent meeting of the
nor of the Bendel State, halted work IWC in London.
on the complex due to serious difThe agreement and the council
IHUHQFHV ZLWK WKH QDQFLHUV RI WKH will continue in similarity to past forproject, Industrie-Bau Nord (IBN) mats with the exception of the name
of Austria and an Austrian bank. change of grains for wheat in the
The mill was to have been jointly agreement and council.
owned by Bendel State, which
The name change was made to
would have controlled a 70% in- emphasize that the 1995 Grain Trade
terest, and IBN, which would have Convention covered all grains, not
controlled 30% of the venture. The wheat alone. In past years, the IWC
total cost of the originally planned included data on coarse grains,
complex was $80.5 million.
as well as wheat, in its statistical
Brigadier Useni at the time of the compilations. Periodic analyses of
projects cancellation said that work conditions in markets also have ofwould not resume unless there was ten included extensive reviews of
an agreement with IBN on how to coarse grain developments.
trim costs considerably. This agreement seems to have been reached
Cargill, Inc. recently began a
with estimated costs reduced by PDMRUH[SDQVLRQRILWVRXUPLOOLQ
about $5 million.
Lake City, Minnesota, U.S., while
Brigadier Useni at the dedication Agway Country Foods, Inc., Syradisclosed that 88% of the projects cuse, New York, U.S., completed an
FRVW ZDV QDQFHG WKURXJK D ORDQ expansion that has almost doubled
from the Austrian interests. Comple- milling capacity of its Churchville,
tion is expected within 18 months.
1HZ<RUN86RXUPLOO
Cargill said the expansion would
The Australian Wheat Board allow the company to improve its
(AWB) is to purchase computer ability to supply northern and northequipment and software valued at HDVWHUQ 86 PDUNHWV ZLWK RXU
more than A$1.5 million that, with- produced from wheat grown in the
in three years, will enable the AWB Upper Midwest. The project will into integrate and centralize informa- crease daily capacity by almost 230
tion on all it operations.
tonnes to more than 800 tonnes of
The computer will allow an in- RXU :KHDW VWRUDJH FDSDFLW\ ZLOO
formation network to be developed be doubled to approximately 27,000
tonnes, according to the company.

Agway Country Foods newly
H[SDQGHGPLOOKDVGDLO\RXUPLOOing capacity of almost 160 tonnes
RIVRIWZKHDWRXUDQLQFUHDVHIURP
approximately 90 tonnes. The storage capacity of 6,075 tonnes was
unchanged.
2005
Cargill, Inc. and General Mills,
Inc. were among several grainbased foods companies pledging
major contributions to international organizations working in
Asian and African countries hit by
tsunamis on Dec. 26. The United
Nations estimated that at least
220,000 people have died as a result of the disaster.
Cargill announced in early January that its efforts had reached $1
million, with half of that amount
supporting immediate relief and
half going toward long-term reconstruction efforts that will be directed
by Cargill businesses in the affected
regions in coming months.
Cargill has business operations
in Thailand, Indonesia, India and
Malaysia, employing more than
9,000 employees. Cargills operations in the region range from
trading and processing vegetable
oil and chickens to operating feed
PLOOV DQG SDOP RLO UHQHULHV ,Q
addition, Cargill manages a palm
plantation in Sumatra.
General Mills Foundation will
contribute $1 million to organizations involved in the relief effort.
The General Mills Foundation
ZLOOFRQWULEXWHLQQDQFLDO
aid to the following organizations:
His Majesty The King of Thailand
Foundation; Prime Ministers National Relief Fund of India; Doctors
Without Borders; UNICEF; and the
American Red Cross. The foundation also will award an additional
$250,000 to the American Red Cross
to match employee contributions.
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
113
ADVERTISER INDEX
4B Components Ltd. ................................81
AG Growth International ............................2
Alapala ....................................................35
Amandus Kahl GmbH & Co. KG ................18
Bastak Gida Makine Medikal ....................95
BBCA Storex ............................................93
Behlen Mfg. Co. .......................................47
Brock Grain Systems.................................51
Buhler AG ...........................................58-59
Chief Industries, Inc. ..................................3
Chopin Technologies ................................60
Consergra S.L. .......................................101
DAEWON GSI Co. Ltd. .............................65
Damas A/S ...............................................86
Denis .......................................................19
The Essmueller Co. .................................115
ETA Automazione ...................................104
F. H. Schule Muhlenbau GmbH.................16
FLITECH S.r.l. ...........................................46
Frame ......................................................21
Fundiciones Balaguer S.A. ........................14
Future of Flour .........................................99
Gamet Manufacturing ............................109
Global Industries, Inc. ..............................49
Great Western Mfg. Co., Inc. ....................96
The GSI Group Inc. ..................................6-7
Hi-Roller ..................................................15
IMAS Integrated Machinery Systems .........53
Industrias Machina Zaccaria S/A ...............90
Ingenieria Mega SA..................................55
International Association
of Operative Millers ..................................97
Irle Kay Jay Chill Rolls Pvt. Ltd. .................27
Kepler Weber ...........................................45
Lambton Conveyor ...................................41
Leland Industries Inc. .............................100
Leonhard Breitenbach GmbH ....................55
Louis Dreyfus Corp. ..................................11
Maxi-Lift, Inc. ..........................................23
Meat-Tech 2015 ......................................92
Mill Service Spa ........................................71
Mill Teknoloji............................................67
Milltec Machinery Pvt Ltd .........................78
Molino Makina ........................................77
Mhlenchemie GmbH...............................33
Mulmix Facco s.r.l. ..................................103
MYSILO Grain Storage Systems Co. ...........89
Neuero ....................................................85
NGP Global Agribusiness Partners.............43
OBIAL ......................................................75
Ocrim S.p.A. .............................................25
Perten Instruments AB ..............................68
Pfeuffer GmbH .........................................15
Prive S.A. ...............................................110
PTM Technology .......................................80
REMBE GmbH ..........................................95
Rolfes@Boone .........................................69
Russian Grain Union.................................87
SafeGrain, Inc/Maxi-Tronic ........................84
Satake .....................................................13
SCAFCO Corp. .......................................116
Silos Cordoba...........................................57
Sioux Rubber & Urethane .......................101
Sioux Steel Co. ........................................73

STIF .........................................................39
Sukup Manufacturing Co. .........................83
Sweet Manufacturing Co. .........................79
Symaga....................................................37
Tapco, Inc. .................................................9
Tornum AB ...............................................66
Ugur Machine Industry ........................28-29
Victam International .................................91
Vigan Engineering S.A. ...............................4
Vortex Valves North America ...................105
Walinga Inc. .............................................94
World Grain ............... 74, 96, 107, 108, 111
Yenar .......................................................17
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Complete the form below, indicating the advertisers
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The International Business Magazine for Grain, Flour and Feed

The Chief Advantage...

One-stop solutions with

P.O. BOX 848 KEARNEY, NE 68848 USA

For more information, see Page 114.

NIV: up to 800 tons/hour

VIGAN Engineering s.a. Rue de lIndustrie, 16 1400 Nivelles (Belgium)

VOLUME 33 NUMBER 2 FEBRUARY 2015

Ethiopia striving for grain surpluses

CWB taken off life support

Europes largest port keeps growing

Grain experts analyze Black Sea

Investment analysts guarded about 2015

Milling properties of commingled rice

U.K. milling industry checking for soy in flour

Upgrade ideas for your feed mill

Comparing major soybean exporters

The importance of landscaping

Global feed tonnage increases

www.World-Grain.com / World Grain / February 2015

PROVEN & DEPENDABLE |

For more information, see Page 114.

FROM THE EDITOR-IN-CHIEF

s delighted as the grain industry

WORLD GRAIN (ISSN 0745-8991) Volume 33, issue 2,

is published monthly by Sosland Publishing Co.,

February 2015 / World Grain / www.World-Grain.com

One Tapco Nylon Elevator Bucket

TAPCOS CC-XD (Xtreme Duty) gray nylon

TAPCOS CC-XD (Xtreme Duty)

TAPCOS CC-HD (Heavy Duty)

For more information, see Page 114.

For a 12-month listing of 2015 industry

We want to hear from you Send comments and

119th Annual IAOM Conference & Expo

Creating Opportunity Since 1851.

NIBULON reports record grain,

Nidera building silo on Danube in Romania

%8&+$5(67 520$1,$ 1LGHUD ZKLFK LV  RZQHG E\

February 2015 / World Grain / www.World-Grain.com

For more information, see Page 114.

Algerias cereal imports increase by $3.5 billion

lion compared to $2.12 billion in the same period a year earlier, an

ADM strengthens Unilever relationship

The two companies already cooperate in other ways. ADM sources

For more information, see Page 114.

February 2015 / World Grain / www.World-Grain.com

Cargills net earnings up 41%

For more information, see Page 114.

www.World-Grain.com / World Grain / February 2015

Grain, biofuel shipments surge at Port of Prince Rupert

Rupert. A strong year in some sectors offsets challenges faced by

CHS reports 56% increase in first-quarter earnings

New Quality for Coarse Crushing:

Drum Groat Cutter TGS

Simple knife change = 75 % time saving!

for further processing

Longer service life of the knives

For more information, see Page 114.

February 2015 / World Grain / www.World-Grain.com

KSU names Grain Science and Industry Department head

served as a co-author on food science book

Smith belongs are the American Chemical

For more information, see Page 114.

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