Ship loading/ unloading trends - Nxtbook

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The International Business Magazine for Grain, Flour and Feed October 2016

High-capacity equipment in great demand

Ship loading/unloading trends

ADM’s Luciano discusses ingredients business

Focus on United Kingdom

Ukraine aims to double grain output by 2020

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© 2016. 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 contents

www.World-Grain.com / World Grain / October 2016 5

FEATURES

DEPARTMENTS 06 Editorial 08 Calendar 10 World Grain News 18 Grain Market Review: Rice 20 Country Focus: United Kingdom 92 Supplier News 97 Archive 98 Advertiser Index/Fax Back Form

On the cover: Neuero, in partnership with Maquinas Condor, in May loaded the first ship at Terminales Graneleras Uruguayas in Nueva Palmira, Uruguay. Photo courtesy of Neuero.

VOLUME 34 NUMBER 10 OCTOBER 2016

26 Luciano outlines strategy for growthADM CEO says company is committed to expand as an ingredient supplier, but will remain disciplined in its new ventures.

32 Ship loading/unloading equipment demand increasesDemand for high capacity equipment rises to accommodate increased grain production.

40 Transportation news roundupA look at recent developments impacting the world’s grain transportation system.

44 Flexibility key for City GroupMill expansion allows company to produce atta and bakery flours from one system to meet customers’ changing needs in Bangladesh.

52 Maize production soaring in eastern AfricaAlthough output has increased, aflatoxin problems must be addressed.

58 A struggle for acceptanceDespite its potential benefits, Golden Rice remains short of commercialization 17 years after it was first developed.

66 Ukraine aiming to double grain outputAnalysts are skeptical the goal can be reached by 2020 given the country’s recent taxation reforms and other obstacles.

72 Feed operationsSteam generation in the feed mill.

76 Grain operationsFumigating stored grain in sealed silos.

82 Global flour trade continues to riseIGC forecasts 2016-17 exports to increase for fourth straight year, reaching a record 15.4 million tonnes.

86 Bühler event offers solutions for feeding the worldGrain processing industry leaders gather in Switzerland to see new equipment, hear presentations on issues such as sustainability and food safety.

26

44 32

52

FROM THE EDITOR-IN-CHIEF

6 October 2016 / World Grain / www.World-Grain.com

WORLD GRAIN (ISSN 0745-8991) Volume 34, issue 10, is published monthly by Sosland Publishing Co., 4801 Main Street, Suite 650, Kansas City, MO 64112 U.S. Periodicals postage paid at Kansas City, MO 64108 U.S. and additional mailing offices. Canada Post International Publications Mail (Canada Distribution) Sales Agreement Number 40612608. Send returns (Canada) to Pitney Bowes International, P.O. Box 25542, London, ON, N6C 6B2. Printed in the USA.POSTMASTER: Send address changes to WORLD GRAIN, PO Box 1171, Skokie, IL 60076-9965. © Sosland Publishing Co. All rights reserved. Reproduction of the whole or any part of the contents without written permission is prohibited. WORLD GRAIN assumes no responsibility for the validity of claims in items reported. Sosland Publishing Co. is a division of Sosland Companies. Inc.

Editorial and advertising inquiries should be directed to our world headquarters at 4801 Main St., Suite 650, Kansas City, Missouri 64112 U.S. Tel: 1-816-756-1000, Fax: 1-816-756-0494 or E-mail [email protected]. Requests for reprints of articles should be sent to [email protected] or call 1-816-756-1000.

How Russia became first in wheat

I n the many unexpected developments in grain trade this season, hardly anything equals the astounding projection that

Russia will end 2016-17 as the No. 1 export-er of wheat. According to the latest forecast by the Foreign Agricultural Service of the U.S. Department of Agriculture, which is also in line with International Grains Coun-cil expectations, Russia in 2016-17 is head-ing to export 30 million tonnes of wheat. This is well ahead of second-place European Union with an outgo of 27 million tonnes. Russia’s position came after prospects for E.U. exports dropped 7 million tonnes on account of a precipitous fall in France’s har-vest due to rains this summer.

in 2015-16, 2014-15 and 2013-14, clearing a peak 35,418,000 tonnes in the second of those three seasons. Treating the E.U. as a single exporter when its membership is made up of 28 nations, of which France is the major grain exporter, has been done for many years. Prior to these three years, the United States usually led wheat exporting. America’s wheat exports in 2016-17 are forecast at 25,500,000 tonnes, lagging both

nearly half a century that U.S. outgo has been less than 1 billion bushels. The U.S. export peak was 47 million tonnes in 1981-82, when Russia imported huge quantities in response to domestic shortages.

Beginning with the 1972-73 crop sea-son, the Soviet Union imported more wheat than any nation had ever taken. In 1984-85, takings were 55.5 million tonnes of both wheat and corn, a record for a single coun-try to take in one year. It was not until the late 1990s that Former Soviet Union (FSU) imports shrunk to single digits. Along with

FSU until the new century dominated as the top importer.

Telling the story of Russia’s transforma-tion from massive dependence on grain imports to sustain its basic food needs to

something never before witnessed, at least

in the current era. Overriding is the way Russia increased its production of wheat and other grains not just to satisfy domes-tic needs freed from the yoke of disastrous government but by setting up production and marketing in ways not much different from the market economy of the western world. Like other recent aspects of the Russian economy where entrepreneurs have reaped rich returns, much the same has occurred in agriculture, including aggregating vast crop acreage and stimulating capital spending meant to improve domestic marketing and export facilities.

Not to be overlooked in marveling at what has been accomplished in Russia’s wheat production and marketing system is how the government, directed by Vladimir Putin as premier, has been willing to put a brake on exports to guard against run-away domestic prices. It was in a fairly recent period that the government in Moscow im-posed a tax on exports of wheat at a level that brought shipments to a near halt. This season’s supply is obviously large enough to allow assurances that no limits are being contemplated on grain exports. After all, Russia has an urgent need to earn foreign exchange to pay for large-scale capital im-ports, a situation obviously worsened by the oil price collapse.

As the global leader in exporting wheat and as a major shipper of oil and gas, Rus-sia emerges as a contender for global impor-tance in these two vast commodity markets. Even when the FSU bought millions of tonnes of grain due to shortfalls in domes-tic crops, attention in the West often focused on wondering what was going on in a nation that seemed to have some of the best weath-er and soil as well as geography for grain crops. After all, prior to World War I and the Revolution, Russia did rank as major wheat shipper. Its re-emergence as the top wheat exporter is an incredible story of the great global grain industry.

Morton I. SoslandEditor-in-chief

Chairman and CEO Charles Sosland

Publisher Dan Flavin

Associate Publisher Meyer Sosland

Sales Adam Ungashick

EDITORIAL STAFF

Editor-in-Chief Morton I. Sosland

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Designer Brian Peterman

PUBLISHING STAFF

President L. Joshua Sosland

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CALENDAR OF EVENTS


Registration opens for IPPE 2017

Registration is now open for the 2017 International Production & Processing Expo (IPPE), Jan. 31-Feb. 2, 2017, at the Georgia World Congress Center in Atlanta, Georgia, U.S. The event combines an expo with educational programs and networking oppor-tunities.

More than 1,000 exhibitors already have been booked for what is considered the largest annual trade show for the poultry, meat and feed industries. The expo is ex-pected to attract more than 30,000 attendees through the collaboration of three trade shows: International Poultry Expo, International Feed Expo and International Meat Expo.

The event is sponsored by the U.S. Poultry & Egg Association (USPOULTRY), the Amer-ican Feed Industry Association (AFIA) and the North American Meat Institute (NAMI).

The expo will include the latest technology, equipment and services used in the production and processing of meat, poultry and animal feed. Educational programs include the Pet Food Conference, the Animal Agriculture Sustainability Summit and Worker Safety Conference for the Meat & Poultry Industry.

The 2017 event will feature several new educational programs, including sessions on food safety, consumer trends and international trade. New programs include FSMA Hazard Analysis Training, Feed Production Education Program and Understanding and Achieving Operational Excellence.

A $50 discount is available through Dec. 31 with online registration at www.ippex-po.org. The registration fee will increase $100 starting Jan. 1, 2017.

We want to hear from you — Send comments and inquiries to [email protected]. For reprints of WG articles, e-mail [email protected].

For a 12-month listing of 2016 industry events, see the 2016 International Buyers’ Guide or visit www.World-Grain.com.

Send your event details to: [email protected] or fax 1.816.756.0494.

NOVEMBER Nov. 7-11

Bühler-KSU Expert Milling (English)Location: Manhattan, Kansas, U.S. Contact: International Grains Program Tel: 1.785.532.4070 E-mail: [email protected] Internet: http://www.ksu.edu/igp

Nov. 8-10Global Grain GenevaLocation: Geneva Contact: Global Grain Events Tel: 44 (0) 20 7779 7222 E-mail: [email protected] Internet: www.globalgrainevents.com/

Nov. 9-1067th JTIC International, The Milling & Cereal Industry Meeting.Location: Reims, France Contact: Nelly Duprat, AEMIC Tel: 33 (0)1 47 07 20 69 Fax: 33 (0)1 44 24 56 25 E-mail: [email protected] Internet: www.jtic.eu

Nov. 11-14Bühler-KSU Flow Sheet Technology (English)Location: Manhattan, Kansas, U.S. Contact: International Grains Program Tel: 1.785.532.4070 E-mail: [email protected] Internet: http://www.ksu.edu/igp

Nov. 15-16Oilseed & Grain Trade SummitLocation: Hyatt Regency Hotel, Minneapolis, Minnesota, U.S. Contact: Sule Basa, HighQuest Partners E-mail: [email protected] Internet: http://www.oilseedandgrain.com/

Nov. 15-16Shipping the Goods – SingaporeLocation: Hilton Singapore, Singapore Contact: GAFTA E-mail: [email protected] Internet: http://www.gafta.com/GPD/Shipping-the-Goods---Singapore-Singapore/35089

Nov. 17Trade & Trends Forum

Location: Hilton Singapore, Singapore Contact: GAFTA E-mail: [email protected] Internet: http://www.gafta.com/seminars/Singapore-Trade-Trends-Forum/37216

Nov. 21-24Foodex Saudi 2016Location: Jeddah Center for Forum and Events, Jeddah, Saudi Arabia Contact: Rony Haddad E-mail: [email protected] Internet: http://www.foodexsaudi.com/en

DECEMBERDec. 5-6

Shipping the Goods Location: InterContinental Geneva, Geneva, Switzerland Contact: GAFTA E-mail: [email protected] Internet: http://www.gafta.com/GPD/Shipping-the-Goods---Geneva-Switzerland/35091

Dec. 11-13National Grain & Feed Association (NGFA) Country Elevator Conference and Trade ShowLocation: Marriott Magnifi cent Mile, Chicago, Illinois, U.S. Contact: NGFA Tel: 1.202.289.0873 E-mail: [email protected] Internet: http://www.ngfa.org

JANUARY 2017Jan. 31-Feb. 2

International Production & Processing Expo (IPPE) 2017Location: Georgia World Congress Center, Atlanta, Georgia, U.S. Contact: AFIA Tel: 1.703.524.0810 E-mail: [email protected] Internet: www.ippexpo.org/

FEBRUARY 2017Feb. 10-12

GrainEx India 2017Location: Dussehra Ground, Indore, Madhya Pradesh, India Contact: ADAMAS Events Pvt. Ltd. Tel: +91-184-403-6770 E-mail: [email protected], [email protected] Internet: http://grainexindia.com/

Feb. 25-28Grain Elevator and Processing Society (GEAPS) Exchange 2017Location: Kansas City Convention Center, Kansas City, Missouri, U.S. Contact: GEAPS Tel: 1.763.999.4300 Fax: 1.763.710.5328 E-mail: [email protected] Internet: www.geaps.com

MARCH 2017March 6-10

American Feed Industry Association’s Purchasing & Ingredient Suppliers ConferenceLocation: Hyatt Regency Grand Cypress, Orlando, Florida, U.S. Contact: AFIA Tel: 1.703.524.0810 Fax: 1.703.524.1921 E-mail: afi a@afi a.org Internet: www.afi a.org

March 11-142017 NAMA Division MeetingsLocation: Hilton Marco Island Beach Resort & Spa, Marco Island, Florida, U.S. Contact: NGFA Tel: 1.202.289.0873 Fax: 1.202.289.5388 E-mail: [email protected] Internet: www.ngfa.org/

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Egypt drops zero-tolerance ergot policy

News reviewBrought to you by World-Grain.com

NEWSREVIEW

CAIRO, EGYPT — Following three failed tenders, Egypt said on Sept. 21 that it has eliminated its zero-tolerance policy on ergot levels in wheat and has promised to follow international standards allowing up to 0.05%.

-

for ergot. The confusing and ever-changing policies regarding levels of ergot turned off traders who were unwilling to risk making contracts that could later be rejected.

The General Authority for Supply Commodities (GASC), the state-owned grain buyer, was forced to cancel three tenders, including one issued on Sept. 18, after receiving no offers. The latest tender sought cargoes of 55,000 to 60,000 tonnes of soft and/or milling wheat for shipment from Oct. 16-26.

“Egypt is the largest importer of wheat in the world,” Paul Meyers, vice-president of commodity analysis, Foresight Commodity Services, Naperville, Illinois, U.S., told World Grain. “When they do something like this with zero tolerance, the exporting countries are not going to respond to any tenders.”

Egypt is expected to import an estimated 11.5 million tonnes of wheat in 2015-16.

In an interview on Sept. 20 with World Grain, Meyers said initially the market had been a little bearish with E.U. wheat prices sagging a bit because of the uncertainty, but most traders expected the issue to be resolved for one simple reason: Egypt needs the wheat.

its exports, prices would be down,” he said. “The market would have reacted more to this.”

but may cause hallucinations when consumed in large amounts. The 0.05% ergot level is in line with the Codex Alimentarius, a collection of internationally recognized standards.

According to a report from the U.S. Department of Agriculture’s (USDA) Foreign Agriculture Service (FAS), Egypt’s trade restrictions, including the ergot policy, distort trade, hinder private initiatives and undermine innovation.

contract, the FAS said. Overall, the country’s trade restrictions could cost

country followed international standards and best practices.“Unfortunately, the end result is higher food prices paid by Egypt’s

overburdened consumers, in complete dissonance with the government’s efforts and trumped up claims that it’s trying to make food more affordable,” the FAS said.

Egypt has imported wheat under the 0.05% ergot threshold for years, the FAS said.

“Despite being the world’s largest importer of wheat, there is no

report noted. “This is so even in light of the fact that imported wheat is distributed from Alexandria to Aswan, as has been the case for decades.”

AGC withdrawals offer to commercialize CBHWEST PERTH, AUSTRALIA — The Australian Grains Champion

the CBH Group.AGC, which included GrainCorp, made an offer earlier this year

that proposed privatization of the CBH Group and listing the 83-year-old cooperative on the Australian Stock Exchange. The CBH board unanimously rejected the proposal saying it would destroy value for CBH grain grower members.

should remain a cooperative. As a result, CBH released a booklet on

potential changes to structure and governance.In a grower letter from the AGC announcing the withdrawal

of its offer, CBH stated it was pleased that, “AGC’s proposal has already had a positive impact on CBH: forcing it to commence its

steps in the journey — it is critical for all of us and our families that CBH’s structure review does not end up as just another window-dressing exercise.”

In addition to forcing CBH to review its structure and governance,

charges by forcing CBH to reduce its planned gold plating of the

The CBH information booklet was created to provide unbiased information about what the different ownership and control possibilities would be and how each one potentially may impact

distributing cooperative; distributing cooperative; and publicly-listed company. However, it does say there are other structures that could be considered for CBH.

“The feedback from most growers has been that while the CBH structural review process is under way, they want that process to reach its natural conclusion and that they are focused on the coming

Champion respects that feedback. If CBH fails to meet growers’ expectations, and there is a groundswell of growers prepared to

current position.”


Sioux Falls, SD [email protected] hiroller.com


NEWSREVIEW

Bunge North America to acquire controlling interest in Grupo Minsa

ST. LOUIS, MISSOURI, U.S. — Bunge North America, the North American operating arm of Bunge Ltd., announced on Aug. 30 it has reached an agreement to invest in Grupo Minsa SAB de CV, corn

2017, subject to the authorization of

Económica (Mexican Antitrust

Grupo Minsa from the Mexican Stock

conditions.

“This investment enhances Bunge’s

Ingredients business,” said Soren

Bunge entered the U.S. corn masa

corn masa market in Mexico.

in a series of transactions for Bunge, which has been partnering with companies

business. On Aug. 5, Bunge announced its intention to enter into an agreement

In June, Bunge announced a joint

in Vietnam, to further expand into Asia.

the Northern Corridor via the Tapajós


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NEWSREVIEW

Bayer to buy Monsanto in a $66 billion transaction

LEVERKUSEN, GERMANY — Bayer AG on Sept. 14 agreed to acquire St. Louis, Missouri, U.S.-based Monsanto Co. in an all-cash transaction for $128 per share, equating to a total purchase price of approximately $66 billion. The transaction price represents a 44% premium to Monsanto’s share price on May 9, the day before Bayer

our Crop Science business and reinforces Bayer’s leadership

leadership positions in its core segments, delivering substantial value to shareholders, our customers, employees and society at large.”

Hugh Grant, chairman and CEO of Monsanto, called the deal a

created for our shareholders.”

through the all-cash consideration,” Grant said.The transaction has been approved by the boards of both

companies and is expected to be completed by the end of 2017, but still must receive approval from regulatory agencies. In a Sept. 14

have received “encouraging feedback” from regulatory agencies. A $2 billion reverse antitrust break fee is in place in the event the transaction fails to obtain the necessary regulatory clearance.

its all-cash offer to $125 per share from $122 per share, but still the board of directors of Monsanto described the takeover bid as

“different, but highly complementary businesses.” The combined

protection product line.

annual pro-forma R&D budget of approximately €2.5 billion.

commercial headquarters in St. Louis, Missouri, its global Crop Protection and overall Crop Science headquarters in Monheim, Germany, and an important presence in Durham, North Carolina,

Cargill expands canola research facilityWINNIPEG, MANITOBA, CANADA — Cargill announced on Aug. 30 a $3.5 million expansion of its canola research facility in

Cargill said the facility improvements included a 14,000-square-

Christiansen, managing director, Cargill Global Edible Oil Solutions.

for Roundup Ready hybrids, in addition to best-of-class Blackleg resistance.”

to invest in, the company said. Cargill has 26% of its Canadian

investments. Cargill employs more than 450 employees in the

Record China 2016-17 soybean imports expected

record high of 86 million tonnes in the 2016-17 marketing year that began Oct. 1, up from an estimated 83 million tonnes in 2015-16,

Service (FAS) of the U.S. Department of Agriculture (USDA).

demand for industry feed and protein meal as a result of a recovery in

market driver behind the increase in soybean imports to record-high levels.“China’s recent sale of stored oilseed and oilseed product reserves

(soybeans and rapeseed oil) is expected to absorb market share for food

of China’s anti-dumping investigation may increase demand for soybean

government efforts to restructure the crop mix and better yields. The

agriculture) forecast 12.86 million tonnes of soybeans in 2016-17 on

12.76 million tonnes. The China National Grain and Oilseed Information Center issued a forecast of 12.6 million tonnes for 2016-17, up 8.6% from the previous year.

In addition, an independent oilseed information source predicted

million tonnes, up 3.67 million tonnes from an estimated 10.43 million tonnes estimated in 2015-16.

The GAIN report forecast 2016-17 imports of rapeseed to China at

value of the Chinese currency.


NEWSREVIEW


Prairie Flour Mills expanding in Canada

ELIE, MANITOBA, CANADA — Prairie Flour Mills Ltd. has initiated a C$18 million ($13.6 million) expansion of its mill in Elie, Manitoba, Canada, a move that will double production capacity at the mill to 8,000 cwts from 4,000 cwts over the next 18 months. The

made to expand our mill,” said Clayton Manness, president of the 2016 Grain & Milling Annual.

Construction set to begin on flour mill in Oman

Oman Daily Observer.

Flour Mills, which is a subsidiary of Oman Flour Mills. Oman Flour per day. The company also operates an animal feed mill that has total

The company also produces more than 20 different animal feeds

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NEWSREVIEW

Whitworths acquires Carr’s Flour Mills

CARLISLE, ENGLAND — Whitworths Holdings Ltd. on Sept. 5 acquired Carr’s Flour Mills Ltd. from Carr’s Group Plc for a gross consideration of £36 million and net consideration of £24.9 million after adjustments for working capital and net debt in the business at completion. Carr’s Flour Mills is the food division of Carr’s Group.

Whitworths is a 100% family owned business that includes the

“The sale of Carr’s Flour Mills Ltd. represents an exciting stage in Carr’s strategic development,” said Tim Davies, chief

inevitable. This acquisition by Whitworths presents a great opportunity for the food division to continue building on the strong foundations laid over many years. On behalf of the Carr’s board, I would like to thank everyone who has contributed to the division’s success.”

Following an approach from Whitworths to acquire Carr’s food division, the board undertook a review of the group’s

three divisions. In order to drive future growth and accelerate

the best interests of shareholders to proceed with the sale. The group’s focus and investment now will be centered on growing its agriculture and engineering divisions.

and its revenue was £80.3 million. Carr’s three milling centers are located in Cumbria, Essex and Fife in the United Kingdom, and use wheat imported from mainland Europe, Canada and the United States. In 2012, Carr’s built a new mill at Kirkcaldy, on Scotland’s east coast. The division currently employs 169 staff members.

“Carr’s Flour Mills Ltd. shares a similar history to Whitworths in that it is a long-standing business that has received material investment in recent years,” said Martin George, chairman

geographically and will give us access to the South East, North of England and Scottish markets that would otherwise not be available, and means we have national reach.”

Kolkhorst succeeds Dye as NAMA chairman

president of ADM Milling Co., has been elected chairman of the North American Millers’ Association (NAMA). D. Wade Ellis,

was elected vice-chairman.As chairman, Kolkhorst succeeded Dan Dye, chief executive

place during the NAMA board of directors meeting Sept. 9 at the

As president of ADM Milling, Kolkhorst has responsibility for

the Caribbean and the United Kingdom. In recent years Kolkhorst has served as president, ADM Alliance Nutrition, and as president,

Milling and Cocoa. He also was president of Specialty Feed Ingredients and earlier in his career held a range of management positions in grain merchandising.

Kolkhorst joined ADM in 1986, shortly after graduating from Illinois State University with a bachelor’s degree in agribusiness. In addition to his work with NAMA, Kolkhorst is a member of the board of directors of the National Association of Manufacturers and the Kansas City, Missouri, U.S.-based American Royal Association and the National Parkinson Foundation Heartland Chapter.

Kolkhorst

www.World-Grain.com / World Grain / October 2016 15For more information, see Page 98.

NEWSREVIEW

TruHorizons expands Indiana grain facility

MILFORD, INDIANA, U.S. — TruHorizons opened its newly expanded grain facility on Sept. 8 in Milford, Indiana, U.S. The $30 million expansion includes eight concrete silos, two steel bins and an attached ground pile with total storage of 4.3 million bushels. The grain elevator has access to both the CSX and Norfolk Southern mainline rails.

“The current unloading speed is 40,000 bushels per hour (bph) and the rail loadout is 60,000 bph,” said Kyle Lehmen, TruHorizons grain manager.

During the expansion of the Milford grain facility, the company’s Agronomy Center remained in operation. Following a $32 million investment, the Agronomy Center opened in 2014.

TruHorizons is an agricultural company that provides crop inputs, grain handling services and global grain marketers for farmers. The company was formed by a joint venture between Cargill and TruPointe Cooperative. TruHorizons is based out of northern Indiana, U.S., with three locations, Bremen, La Paz and Milford. According to Sosland

The $30 million expansion includes eight concrete silos, two steel bins and an attached ground pile with total storage of 4.3 million bushels.

Publishing’s 2016 Grain & Milling Annual, the Bremen facility has a capacity of 747,000 bushels of upright storage and its La Paz facility has a capacity of 801,000 bushels of upright storage.

Olam chairman steps down

SINGAPORE — Kwa Chong Seng, Olam International’s independent non-executive chairman, gave his resignation as director and chairman

Exchange Limited (SGX).Olam’s board of directors accepted his resignation on Aug. 29 and has

initiated the process of appointing a new chairman.

“With my appointment as chairman of Singapore Exchange Limited effective Sept. 22, stepping down from the Olam board will allow me more time to devote to my new responsibilities at SGX,” Chong Seng said.

Chong Seng has been on Olam’s board since October 2014, originally as deputy chairman, and chairman of the board since October 2015.



NEWSREVIEW

China imposes duty on U.S. DDGS

WASHINGTON, D.C., U.S. — Nine months after China began its U.S. dried distiller’s grains (DDGS) antidumping investigation, it announced on Sept. 23 a preliminary decision to impose a 33.8% duty on DDGS, effective immediately.

This decision comes after the U.S. launched trade enforcement action on Sept. 13 against China at the World Trade Organization concerning excessive government support for domestic wheat, corn and rice production. The U.S. is the largest DDGS producer and has a surplus to export, while China is the biggest importer. DDGS is a byproduct of ethanol production used for animal feed.

“We are deeply disappointed that China’s Ministry of Commerce has issued a preliminary determination claiming that U.S. dried distillers grains with or without solubles (DDGS) are being dumped and have caused injury to China’s DDGS industry,” the U.S. Grains Council

Perdue AgriBusiness purchases 10 grain elevators

SALISBURY, MARYLAND, U.S. — Perdue Agribusiness announced on Sept. 23 that it will purchase 10 of the 12 elevators it has leased from Southern States, Richmond, Virginia, U.S., since 2002, and will continue to lease two other elevators that are immediately adjacent to Southern States feed mills.

The announcement will have no impact on grain receiving at the elevators, which have been operated by Perdue since the lease agreement was signed 14 years ago.

(USGC), Renewable Fuels Association (RFA) and Growth Energy said in a joint statement. “As part of our three-decades-long partnership with China, we have worked closely with government agencies, industry associations, and the feed and livestock industries in China to educate

an alternative feed ingredient.”According to the USGC, DDGS exports increased from 1 million

tonnes in 2006 to more than 11 million tonnes in more than 45 countries in 2014. China received the bulk of DDGS exports, consisting of 38% of the export market, while Mexico (14%) was the second largest importer.

Beijing previously launched an anti-dumping investigation into DDGS imports from the U.S. in late 2010, later extending the probe before dropping it in mid-2012. The earlier investigation slowed China’s imports of the feed ingredient but did not stop them entirely.

“We are pleased with the commitment of Perdue AgriBusiness to serve Southern States members in the Mid-Atlantic and Southeast with opportunities to market grain,” said Jeff Stroburg, president and chief

the high levels our customers expect.”The 12 facilities involved in the transaction represent more than 10

million bushels of grain storage.


NEWSREVIEW

U.S. challenges China’s grain subsidies

WASHINGTON, D.C., U.S. — The U.S. on Sept. 13 launched trade enforcement action against China at the World Trade Organization (WTO) concerning excessive government support for domestic wheat, corn and rice production.

U.S. Agriculture Secretary Tom Vilsack and U.S. Trade Representative Michael Froman were joined by bipartisan members of Congress in announcing the challenge to China’s use of “market price support” for the three crops in excess of China’s commitments under WTO rules. The U.S. said China’s market price support for wheat, corn and rice in 2015 was estimated at $100 billion in excess of the levels committed to

“These programs distort Chinese prices, undercut American farmers and clearly break the limits China committed to when they joined the WTO,” Froman said. “As this administration has consistently and repeatedly shown, we will not stand by when our trading partners fail to follow the rules like everyone else. We will aggressively pursue this challenge on behalf of American farmers and hold the Chinese government accountable to the standards of fair global trade.”

The National Association of Wheat Growers (NAWG) and U.S. Wheat Associates (USW) welcomed the new trade enforcement action against China.

Representative and the U.S. Department of Agriculture followed

demonstrate how China’s domestic support policies hurt U.S. farmers,” the groups said in a joint statement. “These programs cost U.S. wheat farmers between $650 million and $700 million annually in lost income by pre-empting export opportunity and suppressing global prices, according to a 2016 Iowa State University study sponsored by USW. That loss estimate is actually 19% more than the losses estimated by a similar 2015 study due to the effect of increasing global stocks and resulting market price decline.”

programs appeared to provide domestic support for Indica rice (long grain), Japonica rice (short and medium grain), wheat and corn in excess of its Aggregate Measurement of Support commitments under the WTO Agreement on Agriculture.

China announces on an annual basis the minimum prices at which the government will purchase those commodities in major producing provinces during harvest, the complaint said. Through the program, China has maintained domestic prices above world market levels since

Chinese market.“Wheat production subsidies in China and other advanced developing

countries are the single biggest policy issue affecting our farm gate prices

this step, USTR and USDA are demonstrating that trade enforcement can ensure that our many trade agreements and a pro-trade agenda really work for American farmers.”

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broken up fractionally, at $332 fob, the IGC said.In its Rice Outlook Report, dated Sept. 14, the USDA’s Economic

Research Service (ERS) said prices for most grades of Thailand’s regular-milled white rice decreased 8% to 9% over the past month, mostly due to sales of government-held stocks and strong competition from Vietnam’s rice.

“Vietnam’s rice typically sells at prices $20 to $40 per tonne below prices for comparable grades of Thailand’s rice,” the ERS said. “U.S. prices for long-grain milled rice continued to decline over the past month as well, partly a response to expectations of a bumper long-grain crop in 2016-17 and weaker global trading prices.”

The USDA now projects global rice production in 2016-17 at a record 481.7 million tonnes (milled basis), up 700,000 tonnes from the forecast it made a month earlier and up more than 2% from a year earlier.

“The expected recovery from the 2015-16 El Niño-reduced global rice crop is primarily due to expanded area,” it said. “At 161.6 million hectares, global rice area is up 2.7 million hectares from a year earlier, but still 200,000 hectares below the 2013-14 record. Brazil, Burma, Cambodia, China, India, the Philippines, Sub-Saharan Africa, and the United States account for the bulk of the projected global area expansion in 2016-17, with India and the United States accounting for more than a third of the expected increase. The average global yield of 4.45 tonnes of rough rice per hectare is up slightly from 2015-16 and the highest on record.”

It puts global consumption (including a residual component) for 2016-17 at a record 478.8 million tonnes.

“With global production exceeding consumption, total ending stocks of 115.6 million tonnes are up 1.8 million tonnes from the previous forecast and up 2.9 million tonnes from a year earlier,” it said. “India, Vietnam, and the United States account for most of the upward revision in the 2016-17 global ending stocks.”

RicePrices lower as 2016-17 crop expected to exceed record production by Chris Lyddon

Record rice production in 2016-17 will exceed consumption, trig-gering a rise in stocks. Prices around the world have fallen.

In a commentary to its Rice Price Update report, the United Nations Food and Agriculture Organization (FAO) said that its All Rice Price Index (2002-04=100) declined by 4.5 points (2.3%) in August to an average of 195 points, reversing all gains registered since May 2016.

“The fall was mostly imputable to easing long-grain quotations, as the High Quality Indica Index slid 4% below July levels, while the monthly decline was in the order of 3.1% for the Lower Quality Indica Index,” it said. “Prices of Aromatica rice also softened by 3%, while the Japonica Index held steady at an average of 221 points.

“With the exception of South American origins, where quotations

all other major origins tended to subside in August. In the absence of substantial demand from key buyers such as the Islamic Republic of Iran and Nigeria, a late August import tender for 250,000 tonnes by the Philippines failed to make a noticeable mark on prices.

“As a result, quotations continued to fall in Vietnam, taking a downturn in India, Pakistan and Thailand as well. Benchmark Thai 100%B white rice slid 4.9% below July levels, with Thai parboiled prices incurring a steeper (11%) monthly drop, amid added pressure from increased paddy arrivals. Long-grain quotations also softened

southern producing states.”The FAO’s All Rice Price Index showed international rice prices in

the steepest declines concerning Japonica and Aromatica varieties.In its Grain Market Report in August, the International Grains

Council (IGC) said that white and parboiled rice prices in Asia softened in the period since the last report, with the IGC GOI sub-index falling by 7% to its lowest level in more than three months.

“The market in Thailand was weighed by sluggish international demand and increasing secondary (off-season) crop arrivals, while additional pressure stemmed from efforts by the government to

$369 fob, 5% broken was down by $43 month-over-month.“In India, market participants were focused on the progress of

kharif (summer-sown) plantings, which advanced rapidly against the backdrop of generally good monsoon rains. Offers for 5% broken fell by $21 to $377 fob. Values in Pakistan retreated sharply, by 14%, to $352 fob, ahead of the arrival of new crop availabilities, although losses were capped by recent heavy rains and logistical constraints.”

In contrast, sentiment in Vietnam was underpinned by expectations for increased sales to the Philippines, with 25%

Global rice supply/demand(in 1,000 tonnes)

0

100,000

200,000

300,000

400,000

500,000

2016-17*

2015-16

2014-15

2013-14

2012-13

2011-12

2010-11

2009-10

*Projected

Source: U.S. Department of Agriculture

Chris Lyddon is World Grain’s European correspondent. He may be contacted at: [email protected].

Ending stocks Consumption Production


COUNTRY FOCUS

Focus on the United KingdomBrexit vote leaves U.K. grain industry without a clear agricultural policy going forward

by Chris Lyddon

Key Facts

THRIVING MILLING INDUSTRY

Capital: LondonPopulation: 64,088,222 (July 2015 est.)Religions: Christian (includes Anglican, Roman Catholic, Presbyterian, Methodist) 59.5%, Muslim 4.4%, Hindu 1.3%, other 2%, unspecifi ed 7.2%, none 25.7% (2011 est.).Location: Western Europe, islands - including the northern one-sixth of the island of Ireland - between the North Atlan-tic Ocean and the North Sea; northwest of France.Government: Parliamentary constitutional monarchy; a Commonwealth realm. Chief of state: Queen Elizabeth II (since Feb. 6, 1952); head of government: Prime Minister Theresa May (since July 13, 2016).Economy: The U.K., a leading trading power and fi nancial center, is the third largest economy in Europe after Germany and France. Agriculture is intensive, highly mechanized, and effi cient by European standards, producing about 60% of food needs with less than 2% of the labor force. Services, particularly banking, insurance, and business services, are key drivers of British GDP growth. In 2008, the global fi -nancial crisis hit the economy particularly hard, due to the importance of its fi nancial sector. Falling home prices, high consumer debt, and the global economic slowdown com-pounded Britain’s economic problems, pushing the economy into recession in the latter half of 2008 and prompting the then Brown (Labour) government to implement a number of measures to stimulate the economy and stabilize the fi nancial markets. Facing burgeoning public defi cits and debt levels, in 2010 the Cameron-led coalition government initiated an austerity program, which has continued under the new Conservative majority government. However, the defi cit still remains one of the highest in the G7, standing at 5.1% of GDP as of mid-2015. In 2012, weak consumer spending and subdued business investment weighed on the economy. However, GDP grew 1.7% in 2013 and 2.8% in 2014, accelerating because of greater consumer spending and a recovering housing market. While the U.K. is one of the fastest growing economies in the G7, economists are concerned about the potential negative impact of the U.K.’s vote to leave the E.U. GDP per capita: $41,200 (2015 est.); infl ation: 0.1% (2015 est.); unemployment: 5.4% (2015 est.).Currency: British pounds (GBP): 0.77 pounds equal 1 U.S. dollar (Sept. 21, 2016).Exports: $442 billion (2015 est.): manufactured goods, fu-els, chemicals; food, beverages, tobacco.Imports: $617.1 billion (2015 est.): manufactured goods, machinery, fuels; foodstuffs.Major crops/agricultural products: Cereals, oilseed, po-tatoes, vegetables; cattle, sheep, poultry, fi sh.Agriculture: 0.6% of GDP and 1.3% of the labor force.Internet: Code: .uk; 58.961 million users.Source: CIA World Factbook

FINLAND

AUSTRIA

ITALYSPAIN

NORWAY

GERMANY

FRANCE

HUNGARY

DENMARK

POLAND

CZECHSLOVAKIA

GREECE

ANDORRA

NETH.

BELGIUM

IRELAND

YUGOSLAVIA

ALBANIA

LITHUANIA

ESTONIA

LUX.

LIECH.

CROATIASLOVENIA

SWITZERLAND

MACEDONIA

U. K.

BOSNIAand

HERZ.


COUNTRY FOCUS


eties with bread or biscuit-making potential (nabim groups 1-3).” It explains that most of the wheat used by millers is grown

in the U.K., but that supplies of milling wheat also are sourced from other countries, with Germany, Canada, France and the U.S. being the leading suppliers.

“In recent years the industry has seen an expansion in ca-pacity with several new mills being built,” it said. “There con-tinues to be consolidation so that there are now 30 companies operating 49 mills. The four largest companies account for

million tonnes. -

ers will exceed 80%,” nabim said. “An all-time high of 87% -

LOW GRAIN PRICESMartin Grantley-Smith, strategy director for cereals and oil-

seeds at AHDB, said U.K. producers have little effect on the price they receive.

“The U.K. is a pretty small player in the world,” he told World Grain. “We produce about 1.5% of the world’s grain,

-ability of the industry.

“This year with the harvest just coming, we are coming off the back of two very good harvests for ourselves, and that led

-ity grain. The presence of that grain for most of the year has meant that prices have been kept low along with the fact that the world had a lot of grain as well.”

-

“What can you do with that grain? The livestock indus-try isn’t going to expand suddenly to take it off our hands,” Grantley-Smith said. “There was always the hope that the energy industry would take a lot of it. If the big players like

up to now.” Ethanol production in the U.K. has not lived up to expecta-

tions. Until it re-opened in July, the Ensus plant in northeast-


COUNTRY FOCUS

ern England had been shut down for 17 months.The third way of disposing of surpluses is exporting, Grant-

ley-Smith explained. “The sort of grain we are talking about is feed quality

grain, and therefore the point at which it is exported is very

the strength of the pound,” he said. “Prior to the Brexit ref-erendum, the pound was relatively strong and it wasn’t pos-sible to export very much of our grain. Post-Brexit, the pound weakened considerably and grain exports went at levels that I certainly have never seen before.”

He expected the current rate of exports to clear the surplus in the next few months.

The U.K. industry has worked hard to build a quality assur-ance system to back its grain sales, but, given that it is selling a commodity on the world market, price is of vital importance.

“An awful lot of it is actually driven by the strength of the pound,” Grantley-Smith said. “It is commodity traded and as the pound remains weak we have a good opportunity to trade more of that grain away. France’s poor crop could give U.K.

exporters an extra chance as the new season gets under way.”To achieve high levels of exports, it’s been necessary to

bring more ports, in addition to the traditional shipment loca-tions, into use. Grain is moved internally by truck.

“The problem we have is that our trade isn’t consistent, un-like places like Canada and the U.S., where they have sales every year and therefore they can invest in infrastructure,” he said. “A couple of years ago we didn’t export anything. That’s the problem.

“It’s not just getting the grain to the port that is the chal-

where the grain is and get ahold of it because it is just not a regular trade.”

get the grain supplies in. He cited Southampton as an example of a port that may get several hundred truckloads of grain put through and loaded on board ship quickly.

subsidies will disappear, Grantley-Smith stressed the impor-tance of farmers staying in control of input costs.

“One of the things we have been saying to people is to look at the way you’re buying things like fertilizer and think about what is happening there with that,” he said. “Are there alterna-tive sources at lower cost? You don’t need to go for maximum yield; you need to go for optimum yield. Most farms that are really run as businesses these days are on top of their input costs and where they market and they do make that sort of decision, but there are a lot of farmers still with mixed enterprises where they don’t have the time or the wherewithal to get down to that level of detail, and then they will continue to do what works best for the farm rather than necessarily for the business.”


Chris Lyddon is World Grain’s European correspondent. He may be contacted at: [email protected].

U.K. flour production, wheat usage(in 1,000 tonnes)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2014-152013-142012-13

Source: nabim

Production Wheat usage


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ADM CEO says company is committed to expand as an ingredients supplier, but will remain disciplined in its new ventures

by L. Joshua Sosland

FEATURE

Editor’s note: This is the third article in a three-part series ex-clusive to Sosland Publishing Company from an interview with

were in the August and September 2016 issues of World Grain.

hile committed to expanding further as an ingredi-ent supplier, Archer Daniels Midland Co. (ADM) has been and will remain disciplined and method-

ical as it ventures into new arenas, said the company’s top executive.

In a recent interview at ADM’s Chicago headquarters with World Grain, Juan Luciano, ADM chairman and CEO, spoke about the company’s recent acquisitions, how the business has changed over the past two years and what may be expected in the years ahead. He said acquisitions represent one part of what ADM is trying to execute in the marketplace.

“M&A (mergers and acquisitions) is not a strategy in itself,” he said. “We have a strategy.”

FOR GROWTH

A native of Argentina, Luciano rose to the position of CEO in January 2015, succeeding Patricia A. Woertz. He assumed the additional role of chairman in January 2016. He had joined ADM in April 2011 following a lengthy career at Dow Chemical Co., extending back to 1985. At ADM, Luciano now heads an agriculturally-based business with 32,000 employees serving customers in more than 160 countries.

The changing complexion of ADM’s business portfolio mirrors powerful demographic changes, Luciano noted. For many years, consumers have been increasing their intake of protein, animal- and vegetable-based, a market ADM already had been successfully serving. Newer, though, is the intensive focus of consumers on healthier diets, cleaner labels and, to a degree, convenience.

“That’s driven probably by fundamental demographic changes,” Luciano said. “One is the millennials, and they think about food more as an experience, smaller brands versus big-ger brands. They like more purpose in their brands, they like healthier foods. I have examples of millennials at home like you have examples at home, and you see them behaving differently.

“So we are targeting that sector, but also people 65 and

LUCIANOOUTLINES STRATEGY

Juan Luciano has overseen tremendous growth in ADM’s ingredients business unit since he took over as the company’s CEO in January 2015.


major consumer shift so they want to become more nimble. They want to move, and ADM will be with them as their prod-uct lines evolve.

SERIES OF ACQUISITIONSAnchoring a series of acquisitions over the past two years

by ADM was its 2014 purchase of Zug, Switzerland-based WILD Flavors GmbH for $3.1 billion. WILD, now part of ADM’s WILD Flavors and Specialty Ingredients business

juice concentrates and blends, as well as other food and bev-

-

When ADM opts to move into a new product area or geog-raphy, a considered decision is made whether an acquisition is the appropriate course, Luciano said.

“On implementing the strategy, we judge whether it is ‘make’ versus ‘buy,’” he said. “We don’t send a team out there to say we need to be a certain size, go and buy these.”

Important to Luciano is the degree to which WFSI makes

soon be larger than the number of children age 5 and younger.

several trillion dollars. These are people who are going to live well into their 80s. They want to feel great and be able to enjoy retirement, their money and be able to play golf, hike and bike. And they are watching more of what they eat. We saw that trend, and we needed to continue to be relevant to our customers, so we decided to go a little bit more ‘big time’ into ingredients and created a division.”

From Luciano’s perspective, ADM’s strength as an ingre-

product portfolio but also the value emanating from its heri-tage grain business.

“We have the best inputs, because we have access to all kinds of supply at the best possible cost,” he said. “That feeds the processing business. This then suddenly gives us some building blocks with the advantage of the inputs and the trans-portation and also gives us an incredible customer base.

“With these building blocks, it allows us to innovate with


ADM a more complete partner for its food manufacturing customers, with the

--

-ting into our formulations and pushing

-

-

-

formulated product so that the customer 2

--

-

-

--

-

For example, our team that originates

Late in 2015, ADM acquired Eatem -

-

announced it had reached an agreement

-

ADM acquired complete ownership of -

facturer of natural extracts, emulsions

-

the intention of continuing to offer a

aspect of nutrition, function, texture and

-ties of taste, texture, nutrition and func-

FEATURE: LUCIANO OUTLINES STRATEGY FOR GROWTH

ADM in 2014 purchased Zug, Switzerland-based WILD Flavors GmbH for $3.1 billion. Photo courtesy of ADM.

“We have addressed the four capabilities of taste, texture, nutrition and function, but we will always go deeper into things. We are sensitive to all the trends out there, and the number of directions you can go is infinite.”—Juan Luciano, ADM CEO


tion, but we will always go deeper into things. We are sensitive to all the trends out there, and the number of directions

very careful because we want to be sure we invest behind real, enduring trends and not fads, not things that will disap-pear tomorrow.

“When we put capital on the ground, we keep people, and we need to make sure we get the return for our sharehold-ers. Our best indication of that is from our customers, and we stay close to our customers, we follow what they tell us the consumer is doing and wanting. When we have enough understanding of that, we match the capabilities with a small acquisition,”

MAJOR PORTFOLIO TRANSFORMATIONLuciano views with pride the progress

of the last two years, which he charac-

transformation in ADM’s history.”In addition to the acquisitions, the

company divested cocoa, chocolate, South American fertilizer, lactic acid and Brazilian sugarcane ethanol businesses.

The acquisition of WILD Flavors has raised questions about the size of ADM’s appetite for additional large pur-chases. Luciano said ADM is charting a targeted course.

“Look at the ingredients we now

have,” he said. “We started with the spe-cialty proteins, which are based on soy. And we have edible beans and we have

corn. We have mint, we have nuts and then you move to basically integrated systems and that’s where we want to go. We want to go from simple ingredients to the ability to do anything in this area. And everything we add is done very



“We are very proud of what we have achieved, but you have to understand, out of 114 years in ADM, we’ve had an ingredients business unit since Jan. 1, 2015. So, we’ve made a lot of progress. We are $2.5 billion. We love it, we’re making money, we’re growing. But we are just getting started.” —Juan Luciano, ADM CEO

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thoughtfully. That’s why we have not bought large companies.

one of the broadest portfolios existing in the industry. And we feel very good about that.”

Luciano offered another reason why acquiring a large ingre-dient company may not be attractive to ADM.

“The allure of a big ingredient company acquisition is nor-

company out there. We are in a stage of building capabilities. I’d rather take the small companies and add all those capabili-

-



L. Joshua Sosland is editor of Milling & Baking News, sister publication of World Grain. He may be reached at [email protected].

Chia, which is used in pudding, is one of many products manufactured by the company’s ingredients business unit.

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Demand for high capacity machinery rising to accommodate increased grain production

by Susan Reidy

FEATURE

hip loaders and unloaders are opting for large ca-pacity equipment in order to strike the right bal-ance between investment and operational costs,

according to suppliers who responded to World Grain’s annual survey of the world’s major ship loader and un-loader manufacturers.

After holding steady from 2014 to 2015, orders have increased this year, particularly for high capacity ship loaders and unloaders. Equipment with low-power con-

as well as reduced maintenance, are attractive to grain loading companies, one supplier noted.

However, turmoil in the world is affecting existing trade routes, and through that, the investments. Ukraine, a major exporter of wheat for years, is struggling to

parties are taking advantage of this and using it as an opportunity to increase their business, a supplier noted.

Some of the most active areas for new equipment are the growing import and export areas such as South America and greater Asia, where facilities are needed to accommodate increased grain production. Brazil, in particular, is investing in inland transportation with new rail lines and export terminals. This is decreasing the

SHIP loading/unloading EQUIPMENT demand increases

Prima Flour Mills in Sri Lanka is equipped with Bühler’s Portlink 800 with an unloading capacity of 800 tph. Photo courtesy of Bühler.


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nation’s logistics costs and increasing its competitiveness.

Asia, especially China, is increas-ing its global grain needs with more imports throughout the year, requiring more capacity and storage. South Africa is having a very dry season and needs to import about 10 million tonnes of ad-ditional corn (maize) for cattle. Other active regions include the Middle East, and Western and Eastern Europe. Busi-ness in Iran is growing, as customers look to replace older installations and invest in new, modern equipment, one supplier said.

Environmental issues are a major concern and a requirement in most proj-ects. In the past, the initial cost deter-mined the purchase decision, one sup-plier noted, but now customers are more concerned with ease of operation and avoiding dust pollution.

In many cases, customers would prefer giving the complete project to one main contractor because it’s easier to control and manage the project. However, this does not always result in the best techni-cal solution, one supplier said. Splitting the project so companies that specialize in one area can give the best technical so-lution might be a better choice. Addition-ally, customers should keep in mind that low-cost equipment often comes with higher maintenance costs.

EQUIPMENT IMPROVEMENTSTop concerns for grain handlers at

loading and unloading facilities are the costs and uptime of the plant. In re-sponse, Bühler, based in Uzwil, Swit-zerland, developed the Portalink and Portaload. The Portalink has lower op-erating costs due to its low power con-

-pany said.

The stationary version is based on a tower principle with three to four tow-ers, each of which has a loading spout.

with spouts up to 3,000 tph, Bühler said. Bühler recently did a complete revi-

sion of its mobile Portaload, taking into consideration market and customer feed-back as well as internal knowledge. The mobile version may be used for new or existing births on rail or tires. Bühler said

the loading procedure. Based on the as-sessment, it determined the functions

-

With these three commands, the operator is able to have full cover of the vessel and load according to the loading plan.

wear pattern throughout the loader and

transfer elements. Elements that are di-rectly impacted by the product either have been engineered so that the im-pact of the product is reduced or special heavy duty wear plating is installed.

To minimize the impact of the loading sequence on the product, care was taken to reduce falling heights where possible, reduce the product speed and enclose the

Neuero Industries, based in Melle, Germany, is launching a new unloader series for smaller ships. The concept is to be compact with fast installation and high working range coverage. The SmartPort prototype already is being tested, Neuero said. The system may be stationary or mobile, and capacities

Neuero, in partnership with Maquinas Condor, in May loaded the first ship at Terminales Granel-eras Uruguayas in Nueva Palmira, Uruguay. Photo courtesy of Neuero.

FEATURE: SHIP LOADING/UNLOADING EQUIPMENT DEMAND INCREASES


range from 200 tph to 400 tph, although higher capacities are possible.

For unloading, Neuero offers a series of equipment with 300-, 400-, 600- and 800-tph capacities with respective com-ponents like blowers, winches, airlocks

rubber tires was developed to facili-tate installation and maintenance. Also,

three truck outlets are available for ef-

suppression head is one solution for ad-dressing environmental concerns. With low dust emissions, the operation is

equipment and people from excessive

IMPROVEMENTS FOR DJIBOUTI PORTAfrica is an active area for new port

projects, with Port De Djibouti S.A. (PDSA) building the Port of Doraleh, a

upon the existing Djibouti port. VIGAN

the new grain and fertilizer terminal at

-

Nivelles, Belgium, and has been suc-

since commissioning in 2009.

southern entrance to the Red Sea, at the intersection of major international ship-ping lines connecting Asia, Africa and

-mal deviation from the principal East-West trade route and provides a secure

of goods.Since 1998, the Port of Djibouti has

handled 100% of Ethiopia’s maritime --

modate this business, the port has made


Africa is an active area for new port projects, with Port De Djibouti S.A. building the Port of Doraleh, a new multi-purpose facility to improve upon the existing Djibouti port.


and is creating the Port of Doraleh, 20 kilometers outside of Djibouti city.

The China State Construction Engi-neering Corporation-China Civil En-gineering Construction Corporation (CSCEC-CCECC) Consortium is the main contractor for the building of the quay and the entire terminal. The whole design and manufacturing of the new multi-purpose unloading equipment and warehouses have been subcontracted to VIGAN, while civil works will be com-pleted by CSCEC-CCECC.

The new terminal will discharge, handle, store and bag grain and fertil-izer for a total of about 2 million tonnes per year, and will handle vessels from 30,000 tonnes up to 100,000 deadweight tonnage. Separate grain and fertilizer in-stallations will be built to prevent cross contamination.

For the unloading of grain and fertil-izer, VIGAN plans to manufacture and

commission one pneumatic ship un-loader model NIV600 with unloading capacity of 600 tph/500kW, mounted on rails; a set of belt and chain conveyor systems; one hopper on wheels with

three bagging lines of 60 tph and truck loading; and 14 lines of 60-tph bagging systems. VIGAN also will supply two

85,000 tonnes for the grain terminal and


VIGAN is in the process of constructing a new grain and fertilizer terminal at the Port of Doraleh in Djibouti. Photo courtesy of VIGAN.



-

URUGUAY EXPANDS PORT CAPACITY

-

-

-

NORTH AMERICAN EXPANSIONS


Terminales Graneleras Uruguayas loaded its first ship at its newly expanded facility in Nueva Palmira, Uruguay, this May.

We want to hear from you — Send comments and inquiries to [email protected]. For reprints of

WG articles, e-mail [email protected].



TransportationNews Roundup

Korea’s largest shipping company files for receivership

WASHINGTON, D.C., U.S. — Hanjin Shipping, the largest shipping

GrainCorp receives funding for rail upgrades


CN, ADM forging new logistics chainCHICAGO, ILLINOIS, U.S. — The collaborative logistics and marketing efforts of Canadian National Railway Co. (CN), Archer Daniels Midland Co. (ADM) and the Midwest Inland Port (MIP) are driving increased container shipments over ADM’s privately owned intermodal ramp located in Decatur, Illinois, U.S., the companies said on Aug. 23.

As part of the collaborative effort, CN is transporting import containers from the Port of Montreal and the Port of Prince Rupert, British Columbia, Canada, to the Decatur facility in thrice-weekly train service to deliver to customers across the Midwest. ADM then reloads the empty 40-foot import containers in Decatur with export loads of grain and processed products destined for global markets via CN’s rail network and its Canadian port gateways.

CN and ADM have partnered in the past on other rail freight op-portunities, including shipments to Mexico.

“CN is a supply chain enabler and its collaborative efforts with ADM and MIP through the Midwest Inland Port Strategic Develop-ment Coalition is forging new logistics chain and growth opportunities for ADM and other enterprises in Decatur and the surrounding region,”

CN. “CN brings to the table an unparalleled three-coast network reach, extensive contacts in Asian markets, sophisticated freight-forwarding knowledge, and expert U.S. customs and marketing support.”

Dennis Whalen, vice-president of transportation, intermodal freight for ADM, said the company is encouraged by the rising vol-umes of imported containers arriving at ADM’s intermodal ramp via CN for area distribution in Illinois.

“The resulting empty container capacity is essential to our ef-forts to grow exports of our products to global markets, especially in Asia,” Whalen said.

CP prepares to move large Canadian grain crop

-tinental railway in Canada and the United States with direct links to eight major ports, said it is “well-positioned and ready to move” this

-

To deal with the large crop, CP said it has called on all supply chain partners to work collaboratively to continue moving record amounts of grain. A similar strategy paid off during the 2013-14, 2014-15 and 2015-16 crop years, CP said.

“To ensure success during this crop year, the broader supply chain must work together to collectively harness our energy so that the

been preparing for this crop year for months and we are ready.”CP said the rail supply chain has returned to normal since the ex-

traordinary crop and winter of 2013-14, and the company has con-tinued to move record amounts of grain. As a result, the supply chain now is faced with excess capacity, including thousands of rail cars in storage ready to move the latest crop, CP said.

investments in its infrastructure. The company has invested private sector capital into capacity-building improvements to meet the ex-panding needs of its customers, and recent supply chain partner in-vestments have been encouraging, especially in grain country eleva-tor capacity and port capacity.

Major investments undertaken by CP include expanding central-ized train control, constructing new and extended sidings, and termi-nal improvements.

The company said it has constructed 22 new and extended sid-ings on its North Line between Edmonton and Winnipeg, four new extended sidings on the Western corridor through British Columbia, and nine new sidings through the U.S. Upper Plains states to Chi-cago.

As for its supply chain partners, CP investment activity has been strong as well, including the addition of a new transfer terminal in Hamilton, Ontario, Canada, construction of numerous new in-coun-try grain terminals.

Grain is CP’s largest line of business, and grain movement for the

WASHINGTON, D.C., U.S. — Although still several months away, U.S. Wheat Associates (USW) is laying the groundwork for smooth operations when the Columbia Snake River System (CSRS) closes for extended maintenance later this year and into next.

-ing which time the U.S. Army Corps of Engineers will make essential renovations to all the navigation locks on the Columbia River and the

The CSRS is a vital transportation link for wheat producers in the states of Idaho, Montana, Oregon, and Washington, and serves as the No. 1 U.S. wheat export gateway. The deep draft channel supports 46 million tons of cargo each year, valued at $20 billion. The inland system supports more than 9 million tons of cargo.

Extended closures are unusual, but USW said the investment in the

term position as the world’s most reliable supplier to our customers.”“USW and supply chain participants take any customer concerns

about supply, cost impact and logistical options seriously, and is work-

ing with customers to help them minimize any possible impact before, during, and after the river system closure,” USW said.

The last extended closure occurred in 2010-11, and USW believes the grain industry will consider every logistical option to keep wheat,

USW said. “For example, total export terminal storage capacity on the Columbia River has grown substantially since 2011. The addition of an entirely new terminal, plus the construction of new storage at several others, has increased storage capacity from 564,000 tonnes to 866,000 tonnes today. The PNW’s total up-country grain storage capacity has

the outage in 2010-11, and rail shipping is likely to make up most of the barge capacity shortfall during this closing as well.

spring (HRS) exported from the PNW already are sourced by rail, ac-cording to USW.

USW readies customers for Columbia Snake River System upgrade

TRANSPORTATION NEWS ROUNDUP

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AMill expansion allows company to produce atta and bakery flours from one system to meet customers’ changing needs in Bangladesh

by Susan Reidy

dapting to customers’ changing needs was a key concern for City Group when expanding its Shampa Flour Mill in Dhaka, Bangladesh, so that it could produce a range of

Wheat mills in Bangladesh typically produce one or two

tor, Bangladesh is an emerging market in terms of wheat and

sion that was completed this July, City Group introduced a new

FOOD INDUSTRY STANDOUTCity Group is a prominent name in Bangladesh’s food industry,

City Group is one of the largest grain traders in Bangladesh with 15,000 employees. Photos courtesy of Bühler.

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for energy recuperation are provided by top European suppliers.”

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TEER is one of the leading brands

in the consumer food industry in Bangladesh, with market share of about 40%, Rahman said.

In order to produce the best quality

including semi-hard varieties from Aus-tralia and Russia and hard wheat from Canada. City Group is one of the largest grain traders in Bangladesh and has its

32,000 tonnes of grain storage available.Atta and maida brands are packaged in

FEATURE: FLEXIBILITY KEY FOR CITY GROUP

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1-kg, 2-kg, 10-kg and 50-kg bags, while suji is available in 250-gm and 500-gm packs.

MILL EXPANSIONAlong with using the highest quality wheat, it was important to City Group to have modern equipment that met strict safety standards to

our manufacturing units, which ensure the best quality of atta that we produce,” Rahman said.

City Group requested all the equipment be made in Switzerland or Europe. Bühler’s high-com-pression PesaMills added in the expansion were specially developed to meet the requirements of atta production, he said. With the CombiMill,

City Group is able to produce standard bak-

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replace as many as 20 traditional stone mills, and provide several other advantag-es. The facility’s four 150-tpd PesaMills

-ties and combine high throughput with

PesaMill rather than several isolated tradi-tional stone mills results in energy savings of up to 10%, Rahman said.

millstones need to be redressed or replaced

minimal and it can operate 24/7. Hygiene standards are improved with the use of steel rollers rather than stones.

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extraction of 5%, Rahman said. There is room at the six-story facility for an addi-tional 550-tonne expansion.

From the grain silos the pre-cleaned -





ond cleaning process. The cleaning is

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grinding and consistent end-product mois-ture. The second cleaning is divided into four single lines to feed the grinding lines independently. The grinding process in-cludes Antares roller mills, Sirius plansift-

are replaced through the PesaMill. The mill grinds the semolina and medium/

the starch damage may be increased to al-low for high water absorption needed for

grind wheat with less moisture (no higher

to increase the shelf life.

bran particles. Clean semolina is sent

The pressure of the PesaMill needs to be reduced compared to the Atta produc-tion. The settings of the PesaMill are


M Although output has risen, aflatoxin problems must be addressed

by David McKee

FEATURE

aize is by far the most important cereal crop in the four largest countries of eastern Africa. Combined production of 17.2 million tonnes in 2016, despite

ongoing drought, is nearly 50% more than a decade ago. Remove middle-income Kenya, which had a 14% decline, and the increase for Ethiopia, Tanzania and Uganda was nearly 70% versus population growth since 2006 of 27%.

Having increased output, one of the next major challenges

the region’s maize. A presentation at the 2015 International Association of Operative Millers Conference in Nairobi cited recent studies showing average ppms in the region far above international norms. Along with food safety, the dominance of smallholder farmers, government market intervention, regional trade and food security are all key aspects of the maize economy in eastern Africa as examined country by country in the survey that follows.

MAIZE PRODUCTION soaring in eastern Africa

ETHIOPIA

Population: 99.5 millionProduction: 6.3 million tonnesEthiopians have cultivated cereals for thousands of years

on the high plateau where their ancient civilization originated. Production of the New World grain overtook sorghum for good in 1982 to become the No. 1 cereal crop. Maize now makes up 30% of 2016 major grains production of 21 million tonnes. Due

a record 25 million tonnes two years before. Nevertheless, 2016 maize production recovered to within 5% of 2014’s level.

Small hammermills process most maize even for urban Foreign direct investment has brought large-scale mechanization to maize production in Uganda, helping to raise average yields. Photos by David McKee.


FEATURE: MAIZE PRODUCTION SOARING IN EASTERN AFRICA

consumption in Addis Ababa. Industrial roller milling of maize has yet to take hold.

The USDA estimates that nearly 10% of maize has been used for feed since 2011 as living standards rise.

Despite drought, the food security outlook is positive with ending stocks of maize at 450,000 tonnes. Domestic maize is one of the three main cereals held by the government in its strategic grain reserve, along with domestic sor-ghum and mostly imported wheat.

A state entity has operated a fertilizer importation and distribution network for many years that has helped boost aver-age yields to around 3 tonnes per hectare even though smallholders account for 95% of production. Large investments in improved seed systems supported by the country’s donor-funded, semi-au-tonomous Agricultural Transformation Agency also have contributed to in-creased output.

TANZANIA

Population: 51 millionProduction: 5.5 million tonnesThanks to rising production with a

tonnes, Tanzania has become a major

-gion. Since 2013, annual exports have been around 400,000 tonnes versus just 14,000 tonnes in the decade of the 2000s. Maize exports are a mixture of cross-border trade, deals by large trad-ing houses, and sales from the govern-ment reserve in order to rotate stocks without disrupting domestic markets.

Tanzania’s National Food Reserve Agency (NFRA) plays a large interven-tion role, buying up much of the com-mercial surplus from smallholders at a

maize ending stocks have been around 1.3 million tonnes since 2013 thanks to NFRA, which may be termed a suc-cess to the extent that for over a decade the country has not needed to appeal to international donors for food aid due to drought or other emergencies. To the contrary, organizations like the United Nations World Food Programme (WFP) sometimes rely on purchases from NFRA to supply its own food distribu-tion programs in the region.

Small hammermills grind almost all maize consumed. Popular markets in Dar es Salaam house large numbers

of locally fabricated hammermills that provide a fee-based service. Tanzanians have yet to acquire a taste for the highly

by industrial roller mills elsewhere in the region.

Large maize surpluses have contrib-uted to the leveling out of wheat imports in Tanzania to an average of 850,000 tonnes per year since 2012 following many years of increases.

KENYA

Population: 45.9 millionProduction: 2.8 million tonnesAs a result of a sustained period of

GDP growth, Kenya now has the high-est average income of any country in

-

-lion tonnes per year despite continued population growth. USDA estimates that 10% of the country’s maize is now going for feed use. By some measures Kenya is already considered to be a middle-income country. Rapid increases in egg and broiler production are evi-dence of that.

Maize is stored temporarily in long cribs at Amatheon Agri’s 3,000-hectare farm in northwestern Uganda.




Flat consumption belies a major shift in the maize economy. Since 2012 area planted in maize has decreased by one-third while imports have quadrupled to 1 million tonnes per year. Almost all of the incoming maize originates in Tanzania and Uganda, fellow members of the East African Community (EAC) customs union. Better rainfall gives the two countries a comparative advantage in maize production vis-a-vis drought-prone Kenya.

The national grain reserve agency, Kenya National Produce and Cereals

-ed production by buying a few hun-dred thousand tonnes per year from farmers at an average price of $30 per 90-kg bag ($333 per tonne). In June 2016 it lowered its purchase price 20% to $266 per tonne after continued lobbying from millers who sometimes depend on supply from tender sales of

government stocks. Inferior quality of poorly stored government grain is

-tated, much of NPCB’s maize is only suitable for feed use.

Unlike in neighboring Tanzania, large industrial roller mills process most maize consumed in Kenya, at least by the urban population.

UGANDA

Population: 37.1 millionProduction: 2.6 million tonnesMaize along with cassava, other

root crops, plantains and beans is one of the main food staples in Uganda. Nevertheless, due to relatively high av-erage yields of 2.5 tonnes per hectare, the country produces nearly as much as Kenya where yields are just 1.7 tonnes. Uganda exports around 300,000 tonnes to its neighbors both as maize meal and grain. South Sudan’s burgeoning urban

population is particularly dependent on Ugandan maize surpluses. WFP oper-ates a regional hub in Uganda that pro-cures maize grains and meal within the country to supply the domestic refugee population as well as displaced popula-tions and refugees across the borders. Feed use of maize is already 200,000 tonnes per USDA estimates, as poultry production expands.

A liberal business climate has en-

foreign investment in agribusiness. With little government intervention to muddle cereals markets, the maize val-ue chain also has received its share of incoming funds.

South African grain management company Afgri has established a foot-hold with storage facilities in a num-ber of locations, including Gulu in the northwest. Several commercial maize farms have started up in re-


cent years. Berlin-based agribusiness Amatheon Agri Holding NV operates one of the largest with about 2,000 hectares planted to maize on a total of 3,200 hectares of cultivated land in the northwest as well.

NORTH AND SOUTH KIVU, DRC

Population: 12 millionProduction: 800,000 tonnesDRC’s heavily populated, mineral-

rich provinces of North and South Kivu are more economically integrated with other countries of the Great Lakes Region than with the rest of DRC. The large urban populations of Goma,

-ports, mostly smuggled and untaxed, of all kinds of foods, including maize and maize meal.

One bold investor has started up the

Ruzizi Plain, north of Lake Tanganyika. The electrical hook-up is from nearby Burundi. Urban consumers are pleased to buy a Congolese brand.

Government data just for South Kivu in 2013 shows 337,127 tonnes of pro-duction by 835,472 households with 135,858 tonnes commercialized, all in-creases from the previous year. North

-er. By comparison, almost 1 million households produced over 6 million tonnes of cassava in South Kivu. Due to steady, year-round rainfall exceed-ing 1,500 ml, but much more at higher elevations, the potential to increase maize production in the western pla-teau regions of South Kivu would be enormous if only feeder roads could be built and security improved. A decades-long presence of roaming militias has displaced much of the rural population to cities along the lakeshores, leaving large tracts of arable land available for cultivation.

RWANDAPopulation: 12.7 millionProduction: 550,000 tonnesRwanda’s dirigiste government

has systematically targeted produc-

tion of maize, a non-traditional food, as a means of enhancing food secu-rity. The result has been a ten-fold in-crease in production from just 50,000 tonnes in 2000 on a hilly landscape. The Rwandan state’s strategic grain reserve maintains a relatively modest maximum level of 50,000 tonnes of stocks but has even reduced it in re-cent years and sold off silo and ware-house storages, judging that the coun-try faces no major food security chal-lenges warranting the cost of main-taining a large reserve. International companies like Afgri have invested in some of these storage facilities and put them to commercial use. There are a handful of small industrial maize roller mills around the country, some of which import maize and then re-export maize meal to neighboring countries like DRC and Burundi. A commercial poultry industry is devel-oping, creating additional demand for maize in feed.

SOUTH SUDANPopulation: 11.9 millionProduction: 400,000 tonnes

Sudan, the world’s youngest country, depends on petroleum exports, sub-sistence farming and international aid. A joint WFP/FAO assessment in 2015 estimated 1.27 million tonnes of gross cereals production in two annual crops on 1 million hectares. Precise data are lacking but the breakdown is roughly two-thirds white sorghum and one-third white maize. There are just a small number of semi-mechanized commercial farms in the north bor-dering Sudan. The UN report put the

tonnes. Traders bring sorghum from Sudan and white maize from Uganda

between government factions erupted in December 2013, food aid has again become a major part of the food bal-ance sheet. The WFP said the country has 1.7 million displaced persons in addition to 650,000 refugees mainly

in Uganda receiving emergency hand-outs. Non-emergency programs like school lunches bring the total number

quarter of the population. Thanks to its commercial availability in the region, maize makes up the biggest part of the donated food basket.

BURUNDIPopulation: 10.7 millionProduction: 150,000 tonnes

area, population, geography and ag-ricultural practices to its neighbor Rwanda, stands in stark contrast when it comes to maize production. In 1972, when it had a centrally planned socialist economy, the country attained a peak of 250,000 tonnes, two-thirds higher than current levels.

Imported maize is part of the food aid basket provided to people displaced

instability.

SOMALIA/DJIBOUTI/ERITREA Population: 10.6 million/826,000/6.5 million Production: 116,000 tonnes/0/20,000 tonnesThe three arid countries along the

Red Sea and Gulf of Aden coastlines extending to the Horn of Africa pro-duce and consume little maize. Somalis are traditionally nomadic herders and traders. The same is true for the ethni-cally Somali people of Djibouti. Their modern carbohydrate preference is im-ported rice and pasta. Somalia’s maize planting on 200,000 hectares yields not much more than a half tonne per hect-are. Some maize is grown on Eritrea’s high plateau region but teff and sorghum are the main cereal crops.



David McKee’s grain industry consultancy, Key International LLC, provides market research,

feasibility analysis, technical studies and project guidance to companies and organizations. He may be reached at [email protected].


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S Despite its potential benefits, Golden Rice remains short of commercialization 17 years after it was first developed

by Laura Lloyd

FEATURE

eventeen years ago, the promise of what is called Golden Rice seemed simple enough: insert a trait that adds beta-carotene to the genetic code of rice and watch

children and pregnant women start to disappear. Impoverished Asian — and perhaps some Central American — countries where rice is eaten as much as three meals a day would obtain a low-cost, convenient way to end one of the worst scourges of malnutrition.

But the reality has proved far more complex. Golden Rice, so named because beta-carotene turns the rice kernels bright yellow, still remains short of commercialization after many years of testing and tweaking the genetics required to produce the seeds. It continues to be recommended as a way to eradi-cate devastating effects on the eyesight and immune systems of a large portion of children under age 5 in the developing world, despite many bumps in the road along the way to production.

Organizations opposing all forms of bioengineered crops

A STRUGGLE for ACCEPTANCE

have kept up their special focus on blocking Golden Rice, said Robert S. Zeigler, Ph.D., plant pathologist and director gen-eral of the International Rice Research Institute (IRRI) from 2005 to 2015, who led the organization during much of the research and development of the beta-carotene enriched rice.

“You can see why there was excitement … here was a way we could use modern technology to transform the lives of the poor,” he told World Grain. “There were people, including

process was going to be and how many potholes” were going to be encountered in the journey from invention to the mar-ketplace, he said. A recurring problem was resistance from en-

Golden Rice is compatible with milenary methods and traditions of rice cultivation and consumption. Photos courtesy of Golden Rice Humanitarian Board.


vironmental groups such as Greenpeace International, which, Zeigler said, “have drawn a line in the sand to, quite explic-itly, block Golden Rice.”

He said Greenpeace has argued that Golden Rice is a Trojan horse, taking the view that “if Golden Rice is allowed

all GMOs to be introduced,” he said.For a variety of reasons, many of

which don’t have much to do with Greenpeace, Golden Rice remains un-available to rice growers anywhere in the world, and experts estimate it will be at least a couple of years before it will be available, probably starting in the Philippines. Zeigler said large-scale tri-

place in about 2019, with commercial-ization coming somewhat later.

“One of the questions is how a crop like Golden Rice would establish itself in the market,” he said. “It would be fairly straightforward for farmers to grow it and either buy the seed from seed grow-ers, or, because of the nature of rice, they could even save their seed for one or two generations to produce it.”

HOPING FOR ACCEPTANCE IN ASIAThe Philippines and Bangladesh are two

countries with both a large impoverished population and a relatively advanced regu-latory process for developing and dissemi-nating bioengineered crops (Bangladesh has released an insect-resistant geneti-

would likely get its start growing there, Zeigler said. Other countries that may follow suit include Indonesia, Malaysia, Colombia in Central America and Haiti, a Western Hemisphere country known for its poverty.

Experts said China, the behemoth of Asia in terms of population, has made enough strides in feeding its people that the need for a product like Golden Rice is less pressing, although malnutrition has certainly not been eradicated. But

China has been fraught. In 2013, Tufts University in Boston, Massachusetts,

U.S., admitted its researchers violated ethical rules in a study feeding Golden Rice to children in China. Greenpeace in China contended scientists fed children a potentially dangerous product without informing parents, and China responded by closing down the research. The con-troversy “became a huge social media story and, if you look at attitudes toward GM by the Chinese public and Chinese consumers after that event, it went quite negative,” said Eric J. Wailes, Ph.D., distinguished professor of agri-cultural economics at the University of Arkansas, U.S.

India, where childhood malnutrition

-tudes prevalent in the European Union, said Zeigler. And Thailand, one of the biggest exporters of rice, has said it will never grow Golden Rice.

Golden Rice made the news again this summer, when 107 Nobel laureates signed a letter urging Greenpeace to end its efforts to stop Golden Rice from coming onto the market. According to The Washington Post, one of the mo-tivations for Greenpeace’s campaign against Golden Rice, in the opinion of signers of the letter, was that spreading

fear about bioengineered crops helps raise money for their cause.

World Grain requested a response from Greenpeace to the Nobel Laureates’ letter, and received this email:

“Some organizations have asserted that GMOs such as Golden Rice could help impoverished populations com-

Hutchins, senior campaigner for Greenpeace International’s Food for Life campaign. “Golden Rice is still in the research phase after 20 years. It is not a viable solution available on the market, according to the IRRI. There are also other ways to combat VAD (vi-

“silver bullet” GMOs, like a more bal-anced diet rich in all vitamins, includ-ing vitamin A. Many of our partners in developing countries like Southeast Asia and Africa simply don’t want to be forced to choose or become reliant on GMO crops and we respect their con-cerns and reservations.”

Wailes offered a rebuttal.

with foods high in beta-carotene, such as leafy greens, vegetables and fruits is for some countries a better way, but if a family is living on less than $2 per day,

FEATURE: A STRUGGLE FOR ACCEPTANCE

A precision-bred rice strain, Golden Rice will be made available to smallholders free of charge once it has been approved by national regulatory bodies.

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there was a major breeding undertaking to get those genes together in a material farmers would grow.”

He continued, “The kind of setbacks

and false starts that happened in develop-ing this trait was something that kept me up at night.”

As things currently stand, yields of Golden Rice grown, at least in the Philippines, aren’t as consistent as yields of conventional rice.

With the question of pricing Golden Rice seed resolved, farmers would like-ly focus on other variables as to whether to plant the bioengineered seed. One of

their decisions would be whether the nutritional attributes of Golden Rice would make a difference. Wailes at the University of Arkansas said studies

have shown that 40% to 50% of farmers would be willing to grow bioengineered rice that offers a 10% improvement in nutrition over other varieties.

Zeigler said rice markets in the Philippines and Bangladesh are partly controlled by a government food author-ity that sets the price of rice. In addition, “there is quite a lively market in the rice trade,” he said, with farmers making their own planting decisions.

“Farmers are businesspeople and will

“If there is not a demand for Golden Rice beyond just regular rice, they will only grow Golden Rice if they get a good yield and a good price for it.”

Golden Rice will ratchet higher when governments make an effort to spread the

“It will require a marketing effort to educate consumers,” he said. “It’s a le-gitimate role for the public sector. NGO’s would be involved. I hope religious enti-ties become involved, as for anything that improves the health of children.”



Laura Lloyd is assistant editor of Milling & Baking News, sister publication of World Grain.

She may be reached at [email protected].


“If there is not a demand for Golden Rice beyond just regular rice, they will only grow Golden Rice if they get a good yield and a good price for it.” — Eric Wailes, University of Arkansas



A Analysts are skeptical the goal can be reached by 2020 given the country’s recent taxation reforms and other obstacles

by Vladislav Vortnikov

FEATURE

lthough some analysts say its goals are too bold, the Ukrainian government is standing by its claim that the country is going to nearly double its grain pro-

duction by 2020. Agricultural Minister Alexei Pavlenko recently forecast

that Ukraine expects to increase grain output to 100 mil-lion tonnes by 2020, up from 60.2 million tonnes in 2015, with exports rising to 70 million tonnes from 31.6 million tonnes during that period.

Despite the huge potential of the country’s grain indus-try, some analysts say the dramatic increase will be dif-

of market players. It appears this factor already has had a negative impact on production, as preliminary forecasts show Ukraine’s 2016 grain harvest is likely to be smaller than last year.

According to a report from the Ukraine Club of

million tonnes of grain in 2016, 300,000 tonnes lower than in 2015. As a result, in 2016-17 exports should reach 34 million tonnes, about 2.5 million tonnes less than a year ago.

dicates a 6% reduction of wheat planted area on year-to-year comparison to 6 million hectares, due to unfavorable weather conditions in the period of winter crops sowing.

million hectares, while planted area for barley remained Louis Dreyfus Suisse SA and Brooklyn-Kyiv own this grain terminal in the Port of Odessa in Ukraine. Photo courtesy of Louis Dreyfus.

AIMING TO DOUBLE GRAIN OUTPUT


beans reached 2.14 million hectares, roughly the same as 2015.

UKRAINE’S ‘SHADOW’ MARKETIn July, Ukraine’s Sovecon con-

sulting agency, referencing a U.S. Department of Agriculture (USDA) report, said up to 80% of soybeans

and 10% of corn in Ukraine is being produced by illegally using geneti-

Lack of state control in the area of grain cultivation in Ukraine results in some grain getting on the market il-legally by bypassing state bodies and

without paying taxes. “Now, unfortunately, shady schemes

in the grain market of Ukraine have quite favorable conditions,” Alexey

(CEO) of Nibulon, a major Ukrainian grain company, told World Grain. “There is a desire on the part of some agricultural producers to receive cash in U.S. dollars on the day when they sell goods, bypassing the tax invoices

-ing about agricultural producers who are not respecting laws of Ukraine and growing grain illegally.”

According to a Ukraine Association of European Businesses report, since 2015-16 a hike has been observed in the shadow trade of grain and it has

storage facilities, since the shadow market is supplying grain directly

-ing stored. As a result, in the near fu-ture some storage facilities might be closed due to the lack of inventory. The report said this situation also may have a negative impact on Ukraine’s food security.

--

ket, since illegal manufacturers are used to selling grain with a just-in-time system, beating down prices,” Igor Braginets, spokesperson for Ukraine Agricultural Union in Kherson Oblast, told World Grain. “At the moment, we have up to 35% of all grain manu-facturers who are working in these

cutting prices at the market.”

INCREASING YIELD WITHOUT GMIn April 2016, the Ukraine gov-

ernment adopted the Program for Development of Agro-Industrial Complex until 2020. Instead of partial-ly removing restrictions on cultivation

by a number of market participants, the government took steps in the op-posite direction by setting the target to increase area for organic grain cultiva-

FEATURE: UKRAINE AIMING TO DOUBLE GRAIN OUTPUT

Ash?

Water absorption?

Protein?

Analyzers capture value

Moisture?

Falling Number?

Gluten?

+


tion, which should be coupled with the rise of average grain yield as well.

Agricultural Minister Pavlenko said average yield in Ukraine is 2.2 times lower compared to European Union countries. He said the grain industry’s goal in the coming years is to increase yield with the modernization of its

-counts to 50,000 machines, 72% of which are 16 years or older.

UCAB analysts said from 2010-15 in Ukraine, yields rose in corn to 6.05 tonnes per hectare from 4.5 tonnes, in

from 1.5 tonnes, and in rapeseed to 2.4 tonnes per hectare from 1.5 tonnes. Similar growth was observed in the E.U. from 2000-05, so it could be said that Ukraine is lagging by nearly a decade behind European countries in terms of yield. Average yield for wheat is 3.1 tonnes per hectare, while for soybeans it is 1.8 tonnes per hectare.

Ukrlandfarming CEO Oleg Bahmatyuk said yield improvement

may help Ukraine boost grain pro-duction to 100 million to 120 million tonnes by 2020. He said Ukraine farm-ers use nearly half the mineral fertiliz-ers and several times less plant protec-tion products compared to their E.U. colleagues, and the situation is wors-

-ricultural equipment. He suggests the country’s grain industry will require investments of $20 billion to $25 bil-lion in the coming years to bring yield to the European level.

Ukraine must boost yields, but not by using GM seeds, said Parliament member Nikolay Lushmyak, who hopes to add to already adopted re-strictions on GM growing in Ukraine with a new law providing a complete moratorium of GM products until 2023. He said Ukraine consumers are not willing to consume GM products.

“Despite this, domestic farmers buy GM seeds and grow mutated cultures without receiving permission from

is simply unable to provide adequate control of this market. As a result, it is simpler to fully ban any use of GM products rather than to watch its un-

PRODUCTION COSTS A PROBLEMMeanwhile, the task of increasing

the level of mineral fertilizers use is complicated due to the continuing fall of the country’s currency (hryvnia). Over the last two years the currency

-tion cost increase per tonne of grain. Ukraine is not producing a lot of fer-tilizers or plant protecting products, so it must rely on imports, primarily from the European Union.

An opinion poll from the consulting agency APK Inform indicated that for 51% of farmers in 2016-17, the cost of mineral fertilizers rose 30% compared with the previous season. About 25% of farmers expected the price to rise 30% to 60%, while 24% of respon-dents expected the cost to rise by 60%

An aerial view of Nibulon Ltd.’s grain export complex at the Port of Nikolaev in Ukraine. Photo courtesy of Nibulon.



to 100% or even more. For other key resources, growth is expected to be within 60%, the study found.

In addition, the Ukraine govern-ment, beginning in January 2016, cancelled advantages on VAT pay-ments for grain producers, which had been available since 1998. Previously,

of 0.45% of the value of land they op-erated. Payment of this tax allowed them to avoid VAT payments.

However, the system has been changed, so farmers have to transfer 85% of VAT to budget and another 15% to their own special accounts for

future spending on modernization. This decision caused several protests in which hundreds of farmers gathered outside the Parliament. The increase of tax payments to the general budget amounted to 5% to 15%, according to

companies.“The transition from 100% non-

taxable income on VAT to 15% is

Shmorhun, head of agricultural hold-ing AgroGeneration, told World Grain. “But there is also another ques-tion, as instead of one tax account

deal with this situation, but we really do not know how these problems are

EXPORTS DRIVE UP DEMAND At the same time, the Ukraine

Agricultural Ministry forecasts sug-gest that the share of export supplies of grain producers should rise to 70% in 2020 from 50% in 2015.

-quire the opening of new markets for Ukraine grain as well as upgrading of relevant infrastructure.

after establishing a free trade zone regime with the E.U., so in 2016 European countries are the largest

Eugene Goncharenko, spokesperson for the Agricultural Ministry. “At the same time, we have very diversi-

purchasers of our wheat this year are Thailand, Egypt and Indonesia, while most barley is delivered to Saudi

for the further increase of wheat ex-ports to China, the Middle East, and,

Goncharenko said the rise in exports should be coupled with the modern-ization of infrastructure; there are al-ready some projects under way in this regard. Ukrlandfarming is planning to invest $2.5 billion in the construc-tion of a new terminal at Yuzni Port, with an annual capacity of 10 million tonnes of grain.

Cargill is investing $100 million for the construction of a grain terminal at Yunzi Port, the company announced in February. According to represen-tatives of the Agricultural Ministry, there are also some other infrastruc-ture projects under discussion.



Vladislav Vortonikov is a correspondent from Voronezh, Russia. He may be reached at

[email protected].

“Ukraine got significant benefits after establishing a free trade zone regime with the E.U., so in 2016 European countries are the largest purchasers of our grain.” —Eugene Goncharenko, Ukraine Agricultural Ministry


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Steam generation in the feed millSizing a boiler correctly is important to provide adequate steam for the milling process

by Fred Fairchild

FEED OPERATIONS

-

-

STEAM

-

-

-

--

-

USAGE POINTS

Table 1. Pipe sizes data for 1,000 lb/hr Steam flow at 100 psig

Pipe Size (dia) Velocity (fpm) Velocity (mph) ˆP/100 ft.*

3/4 17,580 190 87

1 10,830 120 25

1-1/4 6,250 70 6

1-1/2 4,600 50 2.7

2 2,780 30 .7

*Pressure loss in 100 feet of pipe


use. The points of use are of two types.

-

-

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-

STEAM INJECTION

--

leting operation:

-

-

-

-

HEAT EXCHANGE

-

-

-

--



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 may be reached by e-mail at [email protected].

--

-

-

-

Flow control valve

Pressure gauge

Feeder conditioner

Steam separator

Steam addition system

Trap

Drain to atmosphericcondensate return system

Strainer

Recommend10X Pipe DIA

Pressure regulatorW Pilot

Recommend 20XPipe DIA

To wasteSteamheader

Figure 1: Piping system steam harness diagram

FEED OPERATIONS


Fumigating stored grain in sealed silosKilling phosphine-resistant insects can reduce the amount of grain loss after harvest

by Dirk Maier and Sam Cook

GRAIN OPERATIONS

It is estimated that nearly one-third of the total grain harvest-ed worldwide is lost before consumption or sale. Reducing the amount of grain lost after harvest and before use is an important strategy to achieve global food and nutrition security.

For thousands of years grain has been stored in sealed con-tainers to keep it safe from the elements and protected from damage by rodents, birds, and insects. In ancient times, ag-ricultural societies stored their grain reserve in underground pits covered with mud or bricks. Storing grain in sealable clay pots and metal containers continues in many places of the world today.

The last half of the 20th century saw a huge growth in the use of chemical pesticides and fumigants to protect stored grain. Most fumigants have lost their U.S. EPA registration status primarily because of their negative environmental impact, or because of toxicity and safety concerns. One fumigant still in use is phosphine (PH3) gas. Phosphine is relatively inexpen-sive, easy to obtain and easy to use, making it the most widely utilized grain fumigant worldwide. Phosphine may be applied to stored grain via solid pellets or tablets, via pressurized cylin-ders, or via on-site generators.

For a fumigation to be successful, the gas concentration

all insects at all life stages. When the fumigation is complete, fresh air is forced through the grain to remove the fumigant. Care must be taken that the storage structure is sealed well be-fore fumigation. Leaks present in the storage structure, whether a silo or warehouse, will invariably result in low fumigant con-centrations that fail to kill the more resilient insect pests. In the event of an incomplete kill, PH3-resistant insects continue to produce offspring, thus creating a population of insects that are resistant to the fumigant.

Resistance to insecticides, and in particular PH3, is a global problem. Research by several scientists has documented that

the number of resistant insect populations has increased sig-

Australia, Africa and Asia. In some cases of extreme resistance, dosages and treatment times have to be substantially increased to kill stored product insects with PH3. Because PH3 is relied upon so heavily, insect resistance is a major challenge that grain producers, handlers, processors, and exporters need to begin paying more attention to. If PH3 loses its ability to kill insect

time maintaining stored grain quantity and quality – and it will be much more expensive to do so.

The reality is that around the world little research is be-ing sponsored to develop practical and cost-effective alterna-tive stored grain insect pest treatment technologies. Why? In large part industry and government are not providing funding to invest in the needed research, development and technology

A row of sealed hopper silos at a bulk handling facility in Western Australia meeting the Australian gas tightness standard and permanently equipped with fumigant recirculation and monitoring technology. Photos courtesy of Iowa State University.


transfer, and at least as important there are fewer scientists in industry, government and universities with the expertise and experience to conduct the necessary long-term research.

THE IMPORTANCE OF SEALINGFumigating in unsealed silos has been cited as a main cause

for fumigation failure and the emergence of insect resistance. A sealed structure keeps the fumigant within the grain mass long

of all insects at all life stages. Commonly used bolted steel (“open top”) silos are usually not manufactured as sealed nor can they be easily sealed well after construction to hold gas effectively. The vast majority of on- and off-farm grain storage structures around the world are not engineered to be sealed for adequate levels of gas-tightness. Instead, they have to be sealed temporarily before fumigation which, especially in larger silos, may add substantial labor and material costs, and results in greater risk of fumigation failures from inadequate sealing than with silos sealed by design.

Sealed grain storage was the subject of much research and development in Australia in the 1970s and 1980s, largely in re-sponse to Australia’s commitment to zero live insects in export wheat and concerns over PH3-resistant insect populations found in grain stores. Grain producers, handlers, processors and export-ers needed a means to effectively kill stored grain insect pests without leaving pesticide residues on the grain.

Recognizing the threat to PH3 as an effective fumigant due to insect resistance and human safety risks, the Australian govern-ment published standard AS 2628 for sealed grain silos in 2010 (AS 2628-2010). According to this standard, a grain silo may be considered “sealed” only when an applied pressure on the inside of the structure depletes by 50% in no less than 3 (for older silos) to 5 minutes (for new silos). For example, if a new silo is pressur-ized to an internal pressure of 500 pascals (Pa), it should be suf-

silos as small as 10 tonnes and silos more than 250,000 tonnes are sold and constructed to conform to the Australian sealing standard. The 5-minute pressure decay time indicates a level of sealing that minimizes the amount of fumigant loss due to wind and chimney effects. This level of sealing allows the structure to hold the fumigant long enough to kill all insects at all life stages without having to add more fumigant during the fumigation or extend treatment time.

Sealed storage should not be confused with hermetic (i.e., air-tight) storage. Hermetic storage is designed for zero air exchange between the inside and outside of the structure, whereas sealed storage allows for some amount of leakage. The goal is that leak-age does not cause fumigant concentrations to fall below levels needed to kill all insects at all life stages.

Given the rising concern over PH3 resistance development in stored grain insects and the success of sealed silos in Australia, a research project was undertaken at Kansas State University (KSU) funded in part by the Australian Plant Biosecurity CRC to evaluate the feasibility of utilizing sealed silos to ensure long-

3 fumigation. Results from that completed

apply computer models to further study fumigant dispersion in large-scale silos, warehouses and bunkers as well as levels of gas tightness needed to assure PH3

Two hopper-bottom steel silos holding 55 to 65 tonnes of maize were constructed at the KSU Grain Science Complex, a SCAFCO Grain Systems Co. (Spokane, Washington, U.S.) 1503HBT, and a Bird’s Silos and Shelters (Popanyinning, West-ern Australia) 2250 sealed silo, which was used as a benchmark for gas tightness. Assessments included gas tightness, fumigant application and dispersion, mortality of stored-grain insects, and stored grain quality maintenance. Efforts focused on sealing the U.S. bolted corrugated steel hopper silo during construction in order to minimize gas loss during fumigation. Results were com-pared with those of the Australian steel hopper silo that was en-gineered to be sealed.

Gas tightness is easier to achieve the fewer holes and seams a silo has. The Australian silo was designed to reduce the number of these openings. The sidewall rings were constructed out of one sheet so there was only one vertical seam per ring. Rivets were used to close the ring and connect stacked rings. Sealant was ap-plied between the overlap sections of each ring. Likewise, the roof and hopper sections were made from one piece of sheet met-al each that were formed into shape so only one seam resulted, eliminating potential leak sites. Sealant was applied to the seams connecting the wall rings, hopper and roof sections.

The U.S. silo had more than 1,800 bolt holes and consisted of 57 individual sheets, including the hopper, wall and roof sheets. With so many potential leakage sites, a liberal amount of sealant was applied between sheets, around bolt holes, and along all seams inside the silo. In practice, the biggest prob-lem areas for sealing “open top” silos are the roof-wall and the wall-hopper (or wall-foundation) junctions. A sealing kit was provided for the roof-wall junction which included foam blocks to seal most of the gaps created by the roof ribs. Sealant

400

300

100

0 9/18

9/19

9/20

9/21

9/22

9/23

9/24

200

pH3 pa

rts p

er m

illio

n (p

pm) With thermosiphon

Without thermosiphon

Average fumigant concentrations

GRAIN OPERATIONS

Average fumigant concentrations in sealed silos with and without recircula-tion while fumigating approximately 65 tonnes of maize at 14% moisture content and 18 degrees C.

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was applied around the blocks to close off the remaining gaps.

valve instead based on the design of the Australian silo. On both silos a fumigant reaction chamber was installed beneath the but-

3 tablets and pellets were placed for gas release.

A thermosiphon recirculation pipe was installed on the outside of each silo to connect the gas release chamber to the headspace

-

distributes fumigant throughout the grain mass of a silo as a result of solar radiation and differential temperature effects. It increases overall fumigant movement and dispersion within the silo. A U-

seal testing, measuring gas tightness, and functioning as a pres-sure relief valve.

3 inside the silos, moni-

north, south, east, and west directions of the grain mass, with 24 sampling points that terminated at various depths in the grain mass and silo. As the fumigant dispersed throughout each silo and grain mass, gas samples were drawn through the lines and

3 monitoring device at a common point outside the silos.

-

for a new silo. During a fumigation, the gas concentration should reach suf-

-

silos when the thermosiphon in the U.S. silo was turned off, pre-venting gas recirculation in the silo and through the grain mass.

3 to diffuse upward through the grain mass -

cess than allowing the gas to move through the thermosiphon and

--

age concentration to peak with the thermosiphon on compared

throughout the silo without recirculation from the thermosiphon took place at a slower rate. During dispersion of the fumigant, the south and west sides of the silo, which received the most sunlight

Even though the average concentration, or the concentration at

the headspace is critical to fumigation success. 3

3 leaked to the outside at low levels and was im-

-

3 3-susceptible R. dominica (lesser grain borer) and T. castaneum

Left: U-type manometer and pressure relief valve. Right: Thermosiphon on the roof of a bin.

GRAIN OPERATIONS

PH3-resistant strains of R. dominica and T. castaneum

3 S. zeamais (maize T. castaneum

-

-

SUMMARY

-3

3-

-

-

-

--

PH3


Dirk Maier and Sam Cook are post-harvest engineers with the Iowa Grain Quality Initiative at Iowa State University. They may be reached at

[email protected] and [email protected].

GRAIN OPERATIONS

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P IGC forecasts 2016-17 exports to increase for fourth straight year, reaching a record 15.4 million tonnes

by Morton Sosland

FEATURE

GLOBAL FLOUR

IMPORT LEADERS

trade continues to rise


by the Council last May and probably represents a new peak

-

Syria and Brazil were the only two countries projected to

Turkey and Kazahkstan flour exports(in 1,000 tonnes)

0

1,000

2,000

3,000

4,000

5,000

Kazakhstan Turkey *Forecast **Estimated

2016-17**2015-16*2014-152013-14

Source: International Grains Council

FEATURE: GLOBAL FLOUR TRADE CONTINUES TO RISE


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H Grain processing industry leaders gather in Switzerland to see new equipment, hear presentations on issues such as sustainability and food safety

by Arvin Donley

FEATURE

aving earned a reputation for taking their innovative grain processing technology to virtually every corner of

-

The list of attendees read like a “Who’s Who” of the global

-

event offers solutions for feeding the world

third of global energy are used for food and feed production,

-

Bühler Networking Days featured an area where the company’s latest grain processing equipment was displayed. Photo by Meyer Sosland.

BÜHLER

Continued on page 90

Join us Jan. 31- Feb. 2, 2017, in Atlanta, Ga., USA, for the world’s largest annual feed, meat and poultry technology exposition.

Register at www.ippexpo.org #IPPE

Where the ENTIRE industry comes for solutions

PURCHASINGOPPORTUNITIES



Attendees listen to a presentation on the capabilities of the Antares Plus roller mill.

A panel discussion is held during the opening day of Bühler Networking Days.

Ralph Schuck, new head of Bühler’s Grain Milling, and Stefan Birrer, head of Industrial Milling at Bühler, give a presentation on new prod-ucts in the Innovation Hall at Networking Days.

From left, Brad Allen of Ardent Mills, Lucio Quaglia of Molino Quaglia and René Steiner of Bühler North America, visit on the innovation show floor.

Ian Roberts, CTO of Bühler, greets the crowd at the opening of Bühler Networking Days.

Thomas Ziolko, left, Bühler, gives a demonstration to a group of millers during one of the breaks.

FEATURE: BÜHLER EVENT OFFERS SOLUTIONS FOR FEEDING THE WORLD


From left, Stefan Scheiber, Bühler, Ito Daisuke, Nisshin Flour Milling Inc., and Ruedi Weiss, Bühler.

The innovation hall was full of Bühler products for the millers to get hands-on demonstrations.

Vernon “Red” Tegeler, left, Siemer Milling, and Simon Tiedge, Bühler.

Heiko Jopke, left, of Bühler, and Wael Samir, Arabian Milling & Food Ind. Co., visit during one of the breaks.

Johannes Wick, center, and Calvin Grieder, to his left, of Bühler talk to a group of millers.

-

Michael Chew, left, Federal Oats Mill, and Aidin Milani, Bühler.



occurs post-harvest, with poor logistics and storage and inadequate cleaning being the major culprits. But developed countries also waste about one-third of all food produced, with most of the re-sponsibility resting with consumers who throw food away.

-timated cost of obesity-related health problems, mostly in developed coun-tries, is about $2 trillion, which is about 2.8% of global GDP, while an estimat-ed 840 million people worldwide suffer from hunger.

“So one-third of global energy is go-ing into the food supply chain and one-third of that is just wasted,” Roberts said. “It is a huge opportunity and re-sponsibility for our industry to try to do something about this.”

Scheiber noted that the world is using about 1.6 times the resources than can be replenished each year.

“Obviously that is not a sustainable situation,” he said. “Bühler is stepping up to bring the industry together to try to discuss not only the problems but also solutions for solving those prob-lems. We take the responsibility of the

food and feed industry for a sustainable world very seriously. It’s time to step up and make a difference.”MEGATRENDS

Bühler executives discussed several megatrends that will be featured over the next 30 years or so – particularly nutrition, food and feed safety, sustain-ability and the Internet of Things (IoT).

“As the leader of our industry, we want to anticipate megatrends and lead the discussion about how our business-es will evolve in the future,” Scheiber said. “Our industry plays a key role – since corn, rice and wheat are the most important staple foods for 4 billion people. And with the impending pro-tein gap, grain processing will become even more important.”

Roberts said protein demand is ex-pected to increase dramatically through 2050, as it is estimated 265 million tonnes of protein will need to be added to the global diet by that time.

“We are not going to do that purely through livestock meat,” he said. “So as a company we are investing very heav-ily in different ways to deliver protein to the global markets. Pulses, lentils, peas and other plant proteins give us a fan-

tastic opportunity to meet those goals. They have a low water footprint and are

-ditional protein production.”

He said insects and algae also have the potential to help meet soaring pro-tein demand.

“Insects have a shorter timeline and are more targeted toward animal feed,”

-urally. And algae are viewed as a sus-tainable protein source for the future.”

been made in terms of food and feed safety, but even greater strides will be made in this area in the near future. He said alternatives to the current method of killing bacteria in food through heat treatment likely will be developed.

“The problem is when you do that you also damage the heat sensitive nutrition-al elements,” he said. “We need to have treatments that enable us to maintain the nutrition. Thereafter we also need to think about bacteria – what impact does the good bacteria have on us? How can we do this selectively and only elimi-nate the pathogens that we don’t want in foods. That’s the pathway we’re on.”

Another megatrend, described by Bühler as the “Internet of Things” (IoT), will be an important driver moving for-ward as computer, sensor and even ro-botic technology provides opportunities for food and feed processing companies

“The impact of the Internet of Things is mind blowing,” said Johannes Wick, CEO of the company’s Grains and Food division. “Our solutions become smarter with every new generation, as we include more and more sensors that allow different devices to connect and exchange information. For our custom-ers, this translates into higher quality and increased output at a lower operat-ing cost.”

Dan Dye, CEO of the United States’ largest milling company, Ardent Mills, Denver, Colorado, said the forward-thinking nature of the three-day pro-gram made the long trip to Switzerland worthwhile.

Johannes Wick, CEO of Bühler’s Grains and Food, speaks at the Bühler Networking Days event Aug. 22 in Uzwil, Switzerland. Photo by Meyer Sosland.


Continued from page 86


“Bringing together the industry on a broad scale to look at different ideas and different ways of doing things is valu-able to us,” he said. “It’s not just the machinery and the processes; it’s also having a different vision of what the food system is going to look like down the road. It’s good for us because it chal-lenges us to think about how our busi-ness operates.”

NEW EQUIPMENT ON DISPLAYWhen they weren’t listening to pre-

sentations on megatrends, attendees were invited to a display area where Bühler, which invests 5% of its turnover each year in research and development, showcased 30 of its latest innovations. Key innovations on display included:

The CombiMill process with in-

-

be produced using the same mill-ing system. Bühler said this allows

A new generation of the high preci-

energy costs by more than 90%,

a user-friendly control.

Ecothermatic. This latest model features energy savings of up to 40% and an increased capacity of 5,500 kg per hour.Novablue with increased food safety. The sieve cleaner is easy to detect, both visually and through metal detectors, which is a critical food safety feature.

Attendees were asked to vote on the most innovative product and the winner was a tubular push conveyor called Tubo. Bühler said it signifi-cantly reduces energy consumption compared to conventional conveying systems, and the raw material is con-veyed more gently. With its three-di-mensional plant layouts, it allows for

-sign and its sanitation and safety ad-

vantages mean that return on invest-ment is sustainably reached quickly, the company said.

Also on display was Bühler’s PesaMill, a new type of industrial pro-cess for producing high quality and san-

particularly in India.Bühler Networking Days attend-

ees watched a demonstration of the PesaMill and learned about the advan-

machine as opposed to the traditional Chakki mill, which can only handle 300 kilos of wheat per hour and is usu-

core of the Chakki mill is its grinding stone, which no longer meets today’s requirements for food safety and pro-duction consistency.

“We have been developing this process for some years now because

characteristics needed for this type of

of product management for Bühler’s Grain Milling Unit. “We needed high starch damage, which allows us to have

took quite a long time to develop this

type of technology but we do have the

customers are very happy because we

1.5%, there is lower energy usage by about 10% and we are able to achieve

Chakki mills.” Trounce noted that while India is the

number of areas around the world with

creates a greater global demand for the PesaMill.

Mohamednur Ibrahim Khalif, man-aging director of Alpha Grain Millers Ltd., Nairobi, Kenya, said he saw sev-eral innovative products on the display

install in his milling facility. “I saw the NIR process where you

can check ash content, protein content and moisture without going to the lab,” he said. “That would be a big advan-tage for us if we had that. The convey-ing system I saw here would also be an advantage for us to have going into the future. I think eventually you will see those things in Africa.”

Attendees listen to a presentation about challenges and opportunities in the African milling market. Photo by Dan Flavin.





Sweet Manufacturing appoints new VP of engineering

SUPPLIER NEWS

SPRINGFIELD, OHIO, U.S. — Chris Smith has been promoted to vice-president of engineering at the Sweet Manufacturing Co., the company announced on Aug. 22.

Smith is now a member of the company’s leadership team and

company’s engineering team members, new product development and equipment design, and ensure best practices are in place for safety, quality and productivity of engineering activities, the com-pany said. Smith also will work closely with internal and external customers to provide appropriate equipment and project design and layout recommendations. Smith joined Sweet in October 2014 as the engineering manager.

“I look forward to Chris joining our corporate management team -

pany and customers through his talent, knowledge, experience and

expertise,” said Alicia Sweet Hupp, president

Smith has a bachelor’s of science in mechani-cal engineering from Ohio State University. He

-tion from the state of Ohio. Additionally, Smith

MATLAB and FEA, the company said. Smith has a broad background in engineer-

ing having previously served as a senior engi-neer, mechanical design engineer and engineer-ing manager. In addition to his material handling equipment experi-ence at Sweet, he has previous experience with an industry leader in the design and manufacture of suspended access systems for the industrial/commercial construction market.

Smith

Innovation Center (BIC) will become a training center for the entire production of industrial bakery goods, the company said.

years old and is a popular center for vocational training and further education for bakers and millers. Under the motto “From Grain to

chain in the course topics.The BIC will be expanded to an Application Center over the next

-

the production of industrial bakery goods in our new Application Center – from handling the raw material over the mixer to the oven,” said Markus Schirmer, head of the BIC.

BIC’s course offerings are constantly being expanded. A new inten-sive training course is being added for those interested in becoming an “industrial baker.” Over a period of three weeks, a condensed over-

to name just a few, are included in the program. The crash course “Industrial Baker” is aimed primarily at young managers who wish to gain an overview of the fundamentals of baking.

“Our course participants want to learn what settings they need to change on their machines and systems in order to obtain the same end product with varying raw materials,” Schirmer said. “But industrially produced bread should not only always taste the same. Increasingly,

the quality of artisanal baked goods is being sought. The focus of the courses is therefore on teaching basic knowledge about the interaction of recipes and technology that happens before the actual baking pro-cess. This basic knowledge is required for understanding the complex processes of manufacturing industrial bakery products.”

quality of baked goods, provide an introduction into the “secrets” of producing industrial bakery products and impart knowledge about the

The knowledge provided at BIC is not only for bakers, but also of interest for millers. The trend toward baking without additives puts more weight on the grinding process, according to Schirmer, who is

previously controlled through additives in the baking process must

bread, the longer it stays fresh. Sponges and sourdoughs may create additional advantages.

Such indirect dough versions contain more water, form natural

processes.Considering how complex the subject matter of baking is, it’s no

-

An overview of current BIC courses may be found at www.buh-lergroup.com/bic.

Bühler's Bakery Innovation Center expands course offerings

Omas launches new website

name from www.omas-srl.com to www.omasindustries.com.Omas said the website has been created with the latest responsive

design techniques that enable optimal use. The company also said

are available with detailed presentation concerning Omas’ products and plants.

DYNAMIC website

DAILY/Weekly e-newsletter

DIGITALedition

VISIT THE WEBSITE FOR THE MOST UP-TO-DATE NEWS ON THE

GLOBAL DAY-TO-DAY GRAIN & GRAIN PROCESSING INDUSTRIES

World Grain gathers information from around the global grain, fl our 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.


SUPPLIER NEWS

For more information, see Page 98. For more information, see Page 98.

Bühler introduces tubular push conveyor

UZWIL, SWITZERLAND — Bühler AG has introduced the TUBO,

-

Alapala to double capacity with factory expansion

-The

Alapala’s new 50,000-square-meter facility will employ 500 people. Photo courtesy of Alapala.

www.breitenbach.de

Rolls for Grinding, Cracking, Flaking and Refi ning

Smooth Rolls Corrugated Rolls

Materials Chilled Cast Iron (single poured)

Chilled Cast Iron (compound casting)

Special self-surfacing Cast Iron TM Grades (Indefi nite Chill)

Highly wear resistant Cast Iron TCBR Marathon Grades

Flaking Rolls Refi ner Rolls

Design Blanks Rolls with shrunk-in journals

Rolls with bolted-on journals

Rolls with through-shaft Cooled Rolls

Crumbler Rolls Grinding Rolls

Machining Ground Corrugated Sandblasted

Leonhard Breitenbach GmbH · Walzenweg 60 · D-57072 SiegenTel.: 0271 3758-0 · Fax: 0271 3758-290 · E-Mail: offi [email protected]


SUPPLIER NEWS

Bühler recently released Novaprime, a proprietary sieve fabric for its plan-sifters. Photo courtesy of Bühler.

PETKUS acquires Spanish silo company

WUTHA-FARNRODA, GERMANY — PETKUS Engineering GmbH announced recently the acquisition of SIMEZA Silos Metálicos Zaragoza S.L., a silo company based in Zaragoza, Spain.

and industrial product storage business. The company has state-of-the-art technology and advanced production facilities, PETKUS said.

-en on the leadership of SIMEZA. The company will continue to

independently provide products to Europe, the Middle East, Africa and Central and South America, and also will design a special silo

In its grain division, PETKUS focuses on practical, tailor-

enhances the PETKUS portfolio and is sure to strengthen its mar-

Bühler releases new sieve fabric, cleaner

UZWIL, SWITZERLAND — Bühler announced on Aug. 22 the re-lease of a new sieve fabric and cleaner. Novaprime is a proprietary sieve fabric for the company’s plansifters. In the future, the company will provide a professional sieve tensioning service, increasing qual-ity and hygiene.

sieved in plansifters. This process separates coarse particles from

The process is repeated until all the particles have the desired grain size, the company said. Novaprime now offers a sieve fabric that is

-ous plansifter types. The bolting cloth is made of synthetic polyam-ide yarn. It provides maximum precision in terms of size and even-ness of the mesh.

In practice, the cleaning and homogeneous covering of the frames is a complicated and labor-intensive activity, the company said. For this reason, Bühler will be offering a tensioning service. Bühler said it can ensure that no adhesive residue is left on the edges of the frames. Professional tensioning of the sieve will contribute to greater food safety and also improve separation results. The sieve tension-

service centers.The ideal complement to Novaprime is Novablue, the new sieve

is easy to detect, both visually and through metal detectors, which is a critical food safety feature, the company said. Novablue’s shape can replace traditional models with the same performance and com-pletely avoids loose components in the end product.

STATEMENT OF OWNERSHIPMANAGEMENT AND CIRCULATION

(Requester Publications Only)

1. Publication Title: World Grain2. Publication Number: 141913. Filing Date: September 29, 20164. Issue Frequency: Monthly5. Number of issues published annually: 126. Annual Subscription Price: Free to Qualifi ed/$42 for

Non-qualifi ed7. Complete mailing address of known offi ce of

publication: Sosland Companies, Inc., 4801 Main St., Suite 650, Kansas City, Missouri 64112-2504.

8. Complete mailing address of the headquarters or gen-eral business offi ces of the publisher: Same as above.

9. Full names and complete mailing addresses of publisher, editor, and managing editor: Publisher: Dan Flavin, Sosland Companies, Inc., 4801 Main St., Suite 650, Kansas City, Missouri 64112. Editor: Arvin Donley, Same as above.

10. Owner: Sosland Companies, Inc., Charles S. Sosland and L. Joshua Sosland, 4801 Main St., Suite 650, Kansas City, Missouri 64112.

11. Known bondholders, mortgagees, and other security holders owning or holding 1 percent or more of total amount of bonds, mortgages or other securities: none.

12. Tax Status: Has not changed during preceding 12 months.

13. World Grain14. Issue Date for Circulation Data Below: September 2016

15. Extent and Nature of Circulation: Average Number Number Copies of Copies Each Issue Single Issue Published

During Preceding Nearest to Filing 12 Months Datea. Total Number of Copies (net press run) 12,085 11,662b1. Outside county paid/requested mail subscriptions stated on PS Form 3541 2674 2665b2. In-county paid/requested mail subscriptions stated on PS form 3541 0 0b3. Sales through dealers and carriers, street vendors, counter sales and other paid

or requested distribution outside USPS 3332 3652b4. Requested copies distributed by other mail classes through the USPS 0 0c. Total paid and/or requested circulation 6005 6317d1. Outside county nonrequested copies stated on PS Form 3541 5071 4808d2. In-county nonrequested copies stated on PS Form 3541 0 0d3. Nonrequested copies distributed through the USPS by other classes of mail 0 0d4. Nonrequested copies distrbuted outside the Mail 265 0e. Total nonrequested distibution 5336 4808f. Total distribution 11341 11125g. Copies not distributed 744 537h. Total 12085 11662i. Percent paid and/or requested circulation 53% 57%16. Electronic Copy Circulation a. Requested and Paid Electronic Copies 1,076 1,314 b. Total Requested and Paid Print Copies (Line 15c) + Requested/Paid Electronic Copies (Line 16a) 7,081 7,631 c. Total Requested Copy Distribution (Line 15f) + Requested/Paid Electronic Copies (Line 16a) 12,417 12,439 d. Percent Paid and/or Requested Circulation (Both Print & Electronic Copies)

(16b divided by 16c x 100) 57% 61% I certify that 50% of all my distributed copies (electronic and print) are legitimate requests or paid copies. 17. Publication of statement of ownership for a requester publication is required and will be printed in the October 2016 issue

of this publication.18. Michael Barbee, Audience Development Director - Date September 30, 2016I certify that all information furnished on this form is true and complete. I understand that anyone who furnishes false or misleading information on this form or who omits material or informa-tion requested on the form may be subject to criminal sanctions (including fines and imprisonment) and/or civil sanctions (including civil penalties).

A Compendium of Flour Improvement

FUTURE OF FLOUR

Email-Order: [email protected] | Order now on the Web at www.World-Grain.com

“Future of Flour” is the fi rst comprehensive compendium of fl our improvement to be written by practical men for practical use. “Future of Flour” contains information on topics ranging from the new challenges of a globalized market to the use of modern technologies in wheat breeding, fl our treatment or quality testing.

The team of authors led by the acknowledged expert Dr. Lutz Popper (Mühlenchemie) gives special attention to the nutritional and technical aspects of fl our fortifi cation. Mill managers will fi nd answers to the most common questions asked about fl our and suggestions for solving the typical problems that occur in fl our processing. An impressive work covering a broad range of topics from the exchange of raw materials between continents to genetic engineering.

• 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 Fortifi cation

• 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


WORLD GRAIN ARCHIVE

2006

1996

mill currently under construction to 635 tonnes.

Satake USA, Inc., Houston, the designer and equipment supplier for the mill, said the additional unit, with a capacity of about 180

company’s PeriTec System for debranning the wheat before the milling process.

The original 455-tonne mill is set to be operational in January 1997 and the additional capacity will be started up around April 1.

2006

Horizon Milling GP, a partnership formed by Cargill and CHS Inc., announced Sept. 25 that it has com-pleted an agreement to purchase the Canadian grain-based food ser-vice and industrial businesses from Smucker Foods of Canada Co., a wholly-owned subsidiary of The J.M. Smucker Co.

The Canadian business includes three milling operations in Montre-al, Quebec; Port Colborne, Ontario; and Saskatoon, Saskatchewan, Canada, along with a development center and new Horizon Milling GP company headquarters in Rexdale, Ontario, Canada.

The World Trade Organization

to act on biotechnology approvals was in effect a moratorium on bio-tech products.

states to eliminate national bans on products already approved by the

-bourg, Austria, Italy and Greece

-

either people or the environment.The case was brought by the U.S.,

Canada and Argentina in 2003.

-ity of 91 tonnes near Pocatello, Idaho, U.S.

-

-

business. Koch Agriculture is part of Koch Industries, Inc., the sec-ond-largest privately held com-pany in the United States.

“Koch Agriculture feels for-tunate to align itself with such a quality partner in an effort to im-prove our overall agriculture busi-ness and ability to meet the ever-changing needs of our custom-ers,” said Dean Watson, president of Koch Agriculture. “We expect great things from the relationship and look forward to expanding our business, both domestically and internationally, with Fisher Mills.”

Amber Milling Co., the seventh

States, has announced plans to increase the daily capacity of its

1982

1983

1984

1985

1987

1985

1986

1988

1989

1990

1991

1992

1993

1994

1995

1997

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1986

-ana, that has been closed for four years will reopen this fall following

-ment to obtain U.S. wheat for the mill, according to the mill’s owner, Hamilton, Bermuda-based Seaboard

obtaining wheat prompted the clos-ing of the mill in 1982. The plant, which opened in 1968, has a daily capacity of approximately 200 tonnes and a wheat storage capacity of 8,000 tonnes.

The mill is in the process of be-ing rehabilitated. The limited staff, which was maintained while the mill was closed, will be expanded to about 60 persons when the mill is fully operational.

-

Goodman Fielder, the largest Australian food company formed in the past year as a result of a merger, has acquired the 14.6% share in

by S&W Berisford.RHM ranks among Britain’s larg-

and is prominent in food manufac-turing.

Goodman Fielder is Australia’s -

pany and is a leading vegetable oil processor. It was formed as a result of a merger early this year of two Australian companies — Fielder, Gillespie Davis and Allied Mills,

-man Group.

1996

Fisher Mills, Inc., Seattle, Washington, U.S., and Koch Ag-riculture, Wichita, Kansas, U.S., 2013

2014

Garry A. Pistoria, left, president of Amber Milling Co., and John Johnston, president of Harvest States Cooperatives, Amber’s parent company, at the late-1995 groundbreaking for the new flour mill in Houston, Texas, U.S.


ADVERTISER INDEX

Complete the form below, indicating the advertisers (listed below) that you wish to receive information from. Copy this page and fax to World Grain at 1.816.968.2878, attention Dan Flavin. We will immediately forward your request.

Reader Information Form International Faxback Program

Your Name

Your Title

Your Company Name

Type of Business

Address

City State/Province

Country Zip/Postal Code

Telephone (include country code)

Fax

E-mail

Advertiser(s)

Fax to World Grain in the U.S. at 1.816.968.2878, attn: Dan Flavin, or e-mail at

❏ 4B Components Ltd. ................................57

❏ AFIA .......................................................87

❏ AG Growth International ...........................2

❏ AKY Technology ......................................24

❏ Alapala ..............................................50-51

❏ Bastak Gida Makine Medikal ...................84

❏ BBCA Storex ...........................................22

❏ Behlen Mfg. Co. ......................................43

❏ Brock Grain Systems ................................62

❏ Bühler AG .................................................9

❏ Chief Industries, Inc. ..................................3

❏ Chopin Technologies ...............................81

❏ Cimbria A/S .............................................61

❏ Consergra S.L. .......................................94

❏ Damas A/S ..............................................11

❏ Denis ......................................................14

❏ The Essmueller Co. ..................................99

❏ ETA Automazione ....................................49

❏ F. H. Schule Muhlenbau GmbH ................46

❏ Frame .....................................................83

❏ Fundiciones Balaguer S.A. .......................15

❏ Future of Flour ........................................96

❏ Gamet Manufacturing .............................17

❏ Global Industries, Inc. ..............................29

❏ The GSI Group Inc. ..................................47

❏ Hebei Pingle Flour Machinery

Group Co. Ltd. ........................................77

❏ Hi-Roller .................................................11

❏ IMAS Integrated Machinery Systems ........39

❏ Irle Kay Jay Chill Rolls Pvt. Ltd. .................30

❏ JAG Services Inc. .....................................84

❏ Lambton Conveyor ..................................16

❏ Leonard Breitenbach GmbH .....................94

❏ Louis Dreyfus Company ...........................45

❏ Maxi-Lift, Inc. ..........................................19

❏ Mill Service Spa .......................................31

❏ Milltec Machinery Pvt Ltd ........................64

❏ Mühlenchemie GmbH ..............................25

❏ Muller Beltex ..........................................48

❏ Muyang Group ........................................71

❏ MYSILO Grain Storage Systems Co. ..........85

❏ Neuero ...................................................75

❏ Norm Civata ...........................................38

This index of advertisers is provided as a service to readers. The publisher does not assume any liability for errors or omissions.

More information about these advertisers can be found on www.World-Grain.com. Go to the Buyer’s Guide, then search by company name and click on “go.” This will bring up contact details for that company, including active links to its email address and company web site. Clicking on the company’s “Products & Services” link will take you to a list of the company’s products and also includes a description of the company’s services and activities.

on the web

❏ OBIAL .....................................................53

❏ Ocrim S.p.A. ............................................21

❏ Perten Instruments AB .............................68

❏ Pfeuffer GmbH ........................................70

❏ Ronin GMS (Pty) Ltd ................................37

❏ Satake ....................................................23

❏ SCAFCO Corp. .......................................100

❏ Selis Ltd. Str. ............................................79

❏ Shanghai Zhengchang International

Machinery & Engineering Co. Ltd. ............73

❏ Silos Cordoba ..........................................55

❏ Sukup Manufacturing Co. ........................59

❏ Suncue Co Ltd. ........................................65

❏ Symaga ...................................................67

❏ Tapco, Inc. .................................................7

❏ Tornum AB ..............................................13

❏ Ugur Machine Industry ............................63

❏ Vigan Engineering S.A. ..............................4

❏ Walinga Inc. ............................................33

❏ Warrior Mfg. LLC .....................................36

❏ World Grain ............................................93

❏ Yenar ................................................35, 41

We design SCAFCO silos to withstand weather extremes: humid, arid, frigid or high winds up to 156 mph (250 kph). Our silos feature G115 galvanized coatings (minimum 350 grams/m2 zinc) to prevent corrosion and provide decades of reliable service.

Let SCAFCO’s expert engineers design your storage system with superior performance against the toughest weather conditions and the most severe seismic loads.

Call SCAFCO today to learn more about our silos for all seasons.

SILOS FOR ALL SEASONS

5400 E. Broadway AvenuePO Box 11215Spokane, WA 99211 USA

Phone: +1-509-535-1571E-mail: [email protected] more information, see Page 98

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