World Grain Nov 2015

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The International Business Magazine for Grain, Flour and Feed

November 2015

Global grain
trade review
Ending stocks at highest
level in 29 years

King Milling celebrates


125 years in business
Focus on Ethiopia
Oilseed & Grain Trade
Summit review
www.World-Grain.com

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contents

www.World-Grain.com

VOLUME 33 NUMBER 11 NOVEMBER 2015

FEATURES
26

A royal accomplishment
King Millings 125th anniversary gala celebrates the past, looks
optimistically toward the future.

32

Crops lower, but supply situation still


comfortable
Global grain ending stocks for 2015-16 at the highest level in 29
years.

40

Slowing emerging economies soften demand


Growth for commodities is shifting to developed markets where the
potential is far less.

46

Surviving Castros revolution


Dictators daughter, Alina Fernndez, shares her experience growing
up, leaving Cuba.

26

52

Time to implement low-price strategy


String of bumper global harvests have dropped grain prices to their
lowest levels in years.

60

Easing trade restrictions


The U.S. and Cuba are attempting to restore normal economic
relations, which may lead to more bilateral agricultural trade.

70

Building better rice


More than 3,000 rice genomes released to public database can be
used to design sustainable crops of the future.

84

Feed operations
Considerations in installing spouting.

96
DEPARTMENTS
08
10
12
20
22
78
104
110
113
114

Editorial
Calendar
World Grain News
Grain Market Review: Wheat
Country Focus: Ethiopia
Rice News
Supplier News
Product Showcase
Archive
Advertiser Index/Fax Back Form

40

94

Keeping a close eye on the United States


With drier conditions possible, U.S. may hold trump card for grain
and oilseed prices in 2016.

96

Keeping ahead with enzyme design


Many factors must be considered when developing tailor-made
flour treatment strategies.

ON THE COVER: Prima Flour Mills in Sri Lanka has a Bhler Portalink 600 with an unloading capacity of 800 tph.
Photo courtesy of Bhler.
2015. Reproduction of the whole or any part
of the contents without written permission is prohibited.
All information is published in good faith. While care is taken
to prevent inaccuracies, the publishers accept no liability for any
errors or omissions or for the consequences of any action taken
on the basis of information published.

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

For more information, see Page 114.

FROM THE EDITOR-IN-CHIEF

Global trajectory
lower on prices

aking long-range forecasts about


grain prices as well as prospects
for food demand in the two largest nations, China and India, requires a good
amount of bravado. Doing that also requires
a strong base, and none is better equipped
for that than Carl Zulauf, a professor in the
Department of Agricultural, Environmental
and Development Economics at Ohio State
University. Writing for the farmdoc daily of
the University of Illinois, Professor Zulauf
authored two pieces that may be interpreted
as predicting a less than bullish trend for corn,
soybeans and wheat. As might be expected of
someone making such projections, the professor includes the caveat that his analysis is not
a view of short-term prospects, but should be
seen as a forecast of the longer-term currents
buffeting price determination.
As a long-time member of the Ohio State
staff, Dr. Zulauf has enjoyed a successful caUHHUDVUHHFWHGLQWKHQXPHURXVDZDUGVKH
has received for his teaching and research in
agricultural economics.
In addressing long-term perspectives
for corn, soybeans and wheat, he sets the
century between 1913 and 2014 as his base.
+HXVHVUHDOSULFHVZKLFKDUHUHHFWHGLQ
indexes based on 2014 averages of $3.65 per
bushel for corn, $10.05 for soybeans and $6
for wheat. This results in 1913 real prices
for the three at $15.76, $42.80 and $18.87.
7KH ORQJWHUP GHFOLQH UHHFWV D VLPSOH
story: Supply expands faster than demand,
Mr. Zulauf observes. Acknowledging that it
LVGLIFXOWWRLPDJLQHWKLVORQJUDQJHZHDNness in view of what happened in the immediate past, he acknowledges the sharp price
variations in periods of prosperity. Most
striking, he notes, is the price steadiness beWZHHQDQGDVJHQHUDOSULFHLQDtion offset declines. The power of the corn
biofuel program stood out in the sharp price
rise between 2005 and 2012. That period
shows how exceptional strength stems from
dual forces instead of single food demand.
The latter, he says, has not been enough to

offset the supply increase.


In his separate study of trends in grain demand in China and India, Professor Zulauf
GRHVQRWUHODWHWKHVHQGLQJVWRWKHGHFOLQing long-term trend in prices, although his
demand forecast for these two nations is not
bullish. He focuses on the importance of per
FDSLWDLQFRPHDVDVLQJOHLQXHQFHRQIRRG
demand, with that measure for China soaring recently and India also rising, but less so.
His numbers graphically underscore this difference. Between 1980 and 2013, per capita
calorie intake increased by 23% in India and
by 44% in China. By 2013, per capita calorie intake in China was 26% higher than in
India. Underscoring the inversion in income
ratios between the two countries, he notes
that in 1980 per capita income in China
was 47% lower than in India, but by 2013,
Chinas per capita income was 118% above
Indias. As if those trends are not impressive
enough, Professor Zulauf points to Chinas
relatively dramatic gains in animal protein
consumption, which is credited to both income gains as well as dietary preferences in
India that account for a large share of that
countrys population eating vegetarian diets. He also compares consumption levels in
the two countries to that of the 10 countries
with the highest per capita incomes. In calories consumed per day, China has risen from
70% of the top 10 in 1980 to 91% in 2011,
whereas India has risen from 65% to 72%.
While the annual rate of gain in per capita
calorie intake has not started to slow in either
nation, Professor Zulauf points to a likely
slowing in Chinas food demand in the next
decade. He acknowledges global food demand may continue to grow in the next few
years, but anything approaching the last 20
years is unlikely. This bolsters his long-term
projection: The question is not if but when
will corn crop year average prices be below
$3 and pushing toward $2.
Morton I. Sosland
Editor-in-chief

Chairman and CEO


Publisher
Associate Publisher/
Managing Editor
Sales

Charles Sosland
Dan Flavin
Meyer Sosland
Adam Ungashick

EDITORIAL STAFF
Editor-in-Chief
Editor
Associate Editor
World-Grain.com Editor
European Editor
China Consultant
Designer

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Arvin Donley
Susan Reidy
Holly Demaree
Chris Lyddon
Fengcheng Wang
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PUBLISHING STAFF
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WORLD GRAIN (ISSN 0745-8991) Volume 33, issue 11,

is published monthly by Sosland Publishing Co.,


4801 Main Street, Suite 650, Kansas City, MO 64112 U.S.
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Requests for reprints of articles should be sent to
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November 2015 / World Grain / www.World-Grain.com

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CALENDAR OF EVENTS

DECEMBER
Dec. 6-8
National Grain & Feed Association (NGFA)
Country Elevator Conference and Trade Show
Location: Kansas City, Missouri, U.S.
Contact: NGFA Tel: 1.202.289.0873
E-mail: [email protected]
Internet: http://www.ngfa.org
Dec. 15-18
Fats & Oils Istanbul (FOI) and Feeds & Grains
Istanbul (FGI)
Location: Ceylan InterContinental, Istanbul, Turkey
Contact: Agripro Tel: +90 (212) 236 0345
E-mail: [email protected],
[email protected]
Internet: http:// www.fatsandoilsistanbul.com.tr;
http://www.agripro.com.tr

JANUARY 2016
Jan. 4-8
IGP Institute Grain Elevator Manager course
Location: Manhattan, Kansas, U.S.
Tel: 1.785.532.4070 E-mail: [email protected]
Internet: http://www.ksu.edu/igp
Jan. 26-28
International Production & Processing
Expo (IPPE)
Location: Georgia World Congress Center, Atlanta,
Georgia, U.S. Contact: IPPE Tel: 1.678.514.1977
E-mail: [email protected]
Internet: www.ippexpo.org
Jan. 31- Feb. 5
Texas A&M University feeds and pet food
extrusion course
Location: College Station, Texas, U.S.
E-mail: [email protected]

FEBRUARY
Feb. 3-5
IAOM Latin America District Conference
Location: Panama City, Panama Contact: IAOM
Tel: 1.913.338.3377 E-mail: [email protected]
Internet: http://www.iaom.info/latinamerica/
Feb. 9-10
Oilseed Congress Europe/MENA 2016
Location: Barcelona, Spain Contact: Michelle
Pelletier Marshall Tel: +1. 978.887.8800, x117
E-mail: [email protected]
Internet: http://www.oilseedcongress.com
Feb. 23-26
GrainTech 2016
Location: International Fair Ground, Cairo, Egypt
Contact: Ali Fadl Tel: +2 01142359208
E-mail: [email protected]
Internet: www.igmfairs.com
10

Feb. 27-March 1
Grain Elevator and Processing Societys
(GEAPS) Exchange 2016
Location: Austin, Texas, U.S. Contact: GEAPS
Tel: 1. 763.999.4300 Fax: 1.763.710.5328
E-mail: [email protected]
Internet: www.geaps.com

MARCH
March 6-9
12th Fumigants & Pheromones Conference
and Workshop
Location: Adelaide Conference Center, Adelaide,
South Australia Contact: Insects Limited
Tel: 1.317.896.9300
Internet: http://www.insectslimited.com
March 7-11
AFIA Purchasing & Ingredient Suppliers
Conference
Location: Hotel Monteleone, New Orleans,
Louisiana, U.S. Contact: AFIA
Tel: 1.703.524.0810 E-mail: [email protected]
Internet: http://www.afia.org
March 10-12
Global Grain Asia
Location: Shangri La Hotel, Singapore Contact:
Global Grain Events Tel: + 44 (0) 20 7779 7222
E-mail: [email protected]
Internet: http://www.globalgrainevents.com/

March 12-15
North American Millers Association 2016
Division Meetings
Location: Loews Don CeSar Hotel, St. Petersburg
Beach, Florida, U.S. Contact: Terri Long
Tel: 1. 202.484.2200, ext. 11
Fax: 1.202.488.7416
E-mail: [email protected]
Internet: www.namamillers.org
March 13-15
National Grain & Feed Associations 120th
Annual Convention
Location: Hotel Del Coronado, San Diego,
California, U.S. Contact: NGFA
Tel: 1. 202.289.0873 Fax: 1.202.289.5388
E-mail: [email protected]
Internet: www.ngfa.org

For a 12-month listing of 2015 industry events,


see the 2015 International Buyers Guide or
visit www.World-Grain.com. Send your event
details to: [email protected] or fax
1.816.756.0494.
We want to hear from you Send comments
and inquiries to [email protected].
For reprints of WG articles, e-mail
[email protected].

GEAPS Exchange 2016 planned Feb. 27-March 1


The Grain Elevator and Processing Societys (GEAPS) Exchange 2016 is planned for Feb.
27-March 1 in Austin, Texas, U.S. The annual technical conference and exposition includes
more than 30 hours of educational programming, workshops, pod programs, networking opportunities, and an Expo with hundreds of exhibitors.
Submissions for the Idea Exchange are now being accepted. It is one of the most popular
educational sessions at the Exchange each year and showcases innovations in the grain industry. The session includes two segments: Why Dont They? I Did! and Whats New?
Regular members present Why Dont They? ... I Did! It features ideas that grain operations managers and workers have used to improve safety or efficiency at their facilities. The
Whats New? segments are presented by associate members and include presentations on
new products and services developed for grain operations during the past year.
Those interested in presenting can fill out an application describing their innovation, product
or service and how it is an improvement over existing technology.
Applications can be submitted to the GEAPS office at 4800 Olson Memorial Highway, Suite
150, Golden Valley, Minnesota, U.S., 55422, or e-mail to Janet Arneson at [email protected]
or call 1.763.999.4300.
Last years event, which was Feb. 21-24 in St. Louis, Missouri, U.S., had the second highest
attendance in the history of the conference. In all, 3,215 attendees from 31 countries participated in the show. The Expo featured 200,000 square feet of space and 354 exhibitors. The 35
hours of educational programming (education sessions, Idea Exchange and Expo pods) was
presented by 55 speakers.
Work is under way on this years program and will be available soon at www.geaps.com.
November 2015 / World Grain / www.World-Grain.com

Years

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Years of experience in rheology.
If you wish to improve flour you have to know its exact
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NEWSREVIEW

News review
Brought to you by World-Grain.com

APPA inaugurates third shiploader this year


PARAN, BRAZIL In the past year, the Port Administration of
Paranagu and Antonina (APPA) has begun operating three new
shiploaders to speed up the loading of ships at the Port of Paranagu
in Brazil. The third shiploader began operations on Oct. 20. The goal
is to have four shiploaders in operation.
The investment in the acquisition of the four new shiploaders was
R$59 million ($15 million), made with APPAs own resources. Two
of the shiploaders started operation in March. The third was being
assembled and going through the testing phase. It went into operation
in the cradle of 214 export corridor.
The new equipment represents increased productivity and
wealth, said Cida Borghetti, deputy governor of Paran. She said
that investments strengthen the Port of Paranagu.
Studies show that modernization made over the past four years
makes a difference and puts the terminal in Paran as one of the most
LPSRUWDQWLQ6RXWK$PHULFDDQGWKHUVWLQWKHFRXQWU\LQWKHH[SRUW
of grain, said Beto Richa, governor of Paran.
The new shiploaders can operate at a speed of 2,000 tonnes per
hour. They will increase the export corridors capacity by 33% and
enlarge the loading capacity for the next grain crop.
In addition to being faster, the new shiploaders can load larger
ships, since they have a longer throw. Each spear is 36 meters long.
This provides a wider bandwidth to load ships, allowing large
vessels to dock in Paranagua, said Luiz Henrique, president of the
APPA. The spears of the shiploaders are also higher than those of
the old chargers, making it possible for larger ships to dock without
any restrictions.
The new shiploaders are environmentally friendly. Therefore, they
possess a dust collection system that reduces the emission of particles in the air during ship loading.

Soybeans are moved by conveyor at the Port of Paranagu.


The equipment also has its own generator, enabling the collection
of throws to move on the tracks in case of power outage.
We will reduce the time of shipment and the shipping cost, said
Henrique.
In the last four years, the Paran government has invested R$939
million ($238 million), and this year the Port of Paranagu hit record highs of productivity. In June 2015, the unit of Paranagu exported 1.92 million tonnes of grain.That matches the largest-ever
volume moved in a month since May of 2011, when 1.81 million
tonnes were exported.

Miller Milling names new senior leadership team


BLOOMINGTON, MINNESOTA, U.S. Jeff Thomas, David
Hegewald and Brian Harrington have been named to new executive positions at Miller Milling Co., Bloomington, Minnesota,
U.S., it was announced by Kazuyoshi (Kaz) Watanabe, president.
Thomas has been named vice-president of operations. He most
recently was manager of the companys Saginaw, Texas, U.S.,
RXU PLOO7KRPDV MRLQHG 0LOOHU 0LOOLQJ LQ FRQQHFWLRQ ZLWK WKH
companys acquisition of the Saginaw mill in 2014. Before that he
was with ConAgra Foods for 20 years in milling operations, with
assignments in Sherman, Texas; Oakland, California; Macon,
Georgia; Denver, Colorado; and Alton, Illinois. He was promoted
to plant manager in Saginaw in 2010.
Hegewald has been named vice-president of administration.
Most recently he was director of risk management. Earlier he was
with Deloitte & Touche LLP in Minneapolis, Minnesota, U.S. for
22 years.
Harrington will be vice-president of sales and procurement. He
12

ZDVGLUHFWRURIQDWLRQDODFFRXQWV%HIRUHMRLQLQJ0LOOHU0LOOLQJ
in 2014, Harrington spent 17 years with Cargill, most recently as
DQDWLRQDODFFRXQWVDOHVPDQDJHULQRXUPLOOLQJ
The group replaces three long-time Miller Milling executives
who are leaving the company Randy Marten, vice-president,
sales and commodities; Andrew Bauer, vice-president and chief
QDQFLDO RIFHU DQG .HYLQ %DOO YLFHSUHVLGHQW RI RSHUDWLRQV
Marten and Bauer were with Miller Milling 19 and 20 years, reVSHFWLYHO\ %DOO MRLQHG WKH FRPSDQ\ ZKHQ LW ZDV HVWDEOLVKHG E\
John Miller in 1985.
Miller Milling has been owned by Nisshin Seifun Group since
7KHFRPSDQ\H[SDQGHGLQZLWKWKHDFTXLVLWLRQRIRXU
mills in Los Angeles and Oakland; Saginaw; and New Prague,
0LQQHVRWD 7KH FRPSDQ\ DOVR RSHUDWHV LWV OHJDF\ RXU PLOOV LQ
Fresno, California, and Winchester, Virginia. Miller Milling has
FZWVRIFRPELQHGRXUPLOOLQJDQGGXUXPPLOOLQJGDLO\
production capacity.
November 2015 / World Grain / www.World-Grain.com

NEWSREVIEW

Tiger Brands CEO to step down


JOHANNESBURG, SOUTH AFRICA
The chairman and board of Tiger
Brands Limited announced on Oct. 8 that
WKHJURXSVFKLHIH[HFXWLYHRIFHU &(2 
Peter Matlare, has reached agreement
with them regarding his decision to step
down as CEO. Matlare will remain in his
position as CEO until Dec. 31.
The board recognizes and appreciates
the contribution made by Matlare as chief
H[HFXWLYHRIFHURYHUWKHSDVWVHYHQ\HDUV
and we are grateful to him for his focused
leadership in steering the company to
date, said, Andr Parker, chairman of the
Tiger Brands board.
While the company gave no reason why
Maltare is stepping down, Tiger Brands has
faced major write-offs in its Nigerian business and fraud at its Kenyan operations.
In 2012, Tiger Brands bought a majority stake in Dangote Flour Mills, a NigeriDQRXUSDVWDDQGULFHFRPSDQ\IRU
million. This purchase has cost investors
millions in write-downs due to competitive markets. In late 2014, Matlare said
that he took full responsibility for the
write-downs.
In addition, executives at Haco Industries, the companys Kenyan subsidiary,
overstated sales in 2014 to reach operational targets. Preinvoicing and manipulaWLRQRISURWVFRQWULEXWHGWRDGURS
LQRSHUDWLQJSURWLQWKHLQWHUQDWLRQDODQG
H[SRUWXQLWGXULQJWKHUVWKDOIRIWKH\HDU
ended March 31.
7KHERDUGKDVEHJXQWKHSURFHVVWRQG
a new CEO.

Marubeni adds grain silos in Brazil


SO FRANCISCO DO SUL, BRAZIL Terlogs Terminal Maritimo Ltda.
7HUORJV  D ZKROO\ RZQHG VXEVLGLDU\ RI
Marubeni Corp., announced on Oct. 2 it
will construct new grain silos in the Port
of So Francisco do Sul, Santa Catarina,
Brazil.
Recently, grain demand from China
DQG6RXWKHDVW$VLDKDVEHHQVLJQLFDQWO\
increasing. The construction of the silos
is scheduled to be completed in February
2016, the company said. The new silos
will reinforce Terlogs grain supplying
ability to these countries.
The silos will have a total storage capacity of 70,000 tonnes. The grain exporting volume of Terlogs will increase from
3.4 million tonnes to 4.2 million tonnes,
the company said.

For more information, see Page 114.

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

13

NEWSREVIEW

GSFMO to be privatized
RIYADH, SAUDI ARABIA The Grain Silos and Flour Mills Organization (GSFMO) is going to be divided into four companies, according to reports in local Saudi media.
The privatization is expected to be completed by the end of next
year. The Saudi government will continue to buy and provide subsiGL]HGZKHDWWRWKHFRPSDQLHVWRNHHSRXUSULFHVWKHVDPH
Founded in 1972 by royal decree, GSFMO is an important part
of Saudi Arabias economy. GSFMO is one of the most important
HFRQRPLF HGLFHV LQ WKH NLQJGRP ZKHUH LW KDV D YLWDO DQG LPSRUWDQW UROH LQ LPSRUWLQJ WKH NLQJGRPV QHHGV RI RXU DQG PDLQWDLQLQJ D VWUDWHJLF VWRFN WKDW VXIFLHQW WR SURGXFH DQG GLVWULEXWH RXU
commodity, Minister of Agriculture and GSFMO Chairman of the
Board of Directors H.E. Abdulrahman bin Abdulmohsen Al-Fadhli
said in the companys 2014 annual report.
GSFMO has been investing in its milling infrastructure over the
last few years to increase its total milling capacity. As a result of the
rehabilitation operations and increasing the establishing of new mills,
the capacity of milling increased to become 12,630 tonnes of wheat
SHUGD\SURGXFLQJPRUHWKDQPLOOLRQRXUEDJVZHLJKLQJNJSHU
year, Director General of GSFMO H.E. Eng. Ahmad A. Al-Fares said
in the 2014 annual report. Ever since its establishment, more than 40
years ago, the organization has witnessed several developments in all
its activities. The storage capacity of silos has increased as a result of
the newly implemented projects, and expansions of existing projects
to become 2,770,000 tonnes. As part of the future expansions, many
projects are being implemented so that storage capacities of silos will
reach 3.2 million tonnes that will increase the strategic reserve stock to
EHVXIFLHQWIRUDERXWRQH\HDURIWKHNLQJGRPVFRQVXPSWLRQ
$FFRUGLQJWRWKHDQQXDOUHSRUWLVVXHGLQ6HSWHPEHU
*6)02KDVRXUPLOOVLQORFDWLRQVVSUHDGDOORYHU6DXGL$UDELD
5L\DGKWRQQHVSHUGD\
-HGGDKWRQQHVSHUGD\
'DPPDPWRQQHVSHUGD\
Al-Qassim 900 tonnes per day
.KDPHHV0XVKD\WWRQQHVSHUGD\

Grain Silos and Flour Mills Organization upgraded two of its mills in 201011. Photo courtesy of ASM Saudi Arabia.
Tabuk 600 tonnes per day
Hail 600 tonnes per day
Al-Jouf 600 tonnes per day
Medina 600 tonnes per day
Al-Jumom 1,200 tonnes per day.
$GGLWLRQDOO\*6)02KDVIHHGPLOOVLQYHSURYLQFHV7KHWRWDO
SURGXFWLRQFDSDFLW\RIWKHVHIHHGPLOOVLVWRQVSHUGD\
Riyadh 300 tonnes per day
Jeddah 300 tonnes per day
Dammam 300 tonnes per day
Al-Qassim 600 tonnes per day
Khamees Mushayt 1,400 tonnes per day.
 *6)02 SURGXFHV D ODUJH YDULHW\ RI RXU ZKHDW DQG IHHG SURGXFWV7KHFRPSDQ\SURGXFHVPDQ\YDULHWLHVRIRXULQGLIIHUHQWSDFNDJHV7KHTXDOLW\RIRXUYDU\EHWZHHQSDWHQWRXU H[WUDFWLRQ 
SRZGHURXU H[WUDFWLRQ RUGLQDU\RXU H[WUDFWLRQ SDWHQW
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 0RUHRYHUWKHSDFNDJHVFRPHLQGLIIHUHQWEDJVUDQJLQJIURP
kg to small bags for domestic use in sizes 10, 2 and 1 kg.
The company also produces many wheat derivatives like grits,
mash, bulgur, bran for human use, and wheat germ packed in different packages.

For more information, see Page 114.

14

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

NEWSREVIEW

Despite decline, Ukraines cereal production still above average


KIEV, UKRAINE Ukraines harvesting of
the 2015 cereal crops, with the exception of
maize, is virtually completed and aggregate
output is estimated at 60.2 million tonnes,
5% down from the 2014 record level but well
DERYH WKH YH\HDU DYHUDJH DFFRUGLQJ WR D
Food and Agriculture Organization (FAO) of
the United Nations report issued on Sept. 30.
:KHDWRXWSXWLQFUHDVHGE\WRWKHQHDU

record level of 25.8 million tonnes, although


grain quality is poorer compared to 2014.
About 60% of the output is reportedly graded
as feed due to adverse weather, mainly in
western regions, the FAO said. By contrast,
despite higher yields, barley production
decreased by 9% to 8.2 million tonnes as a
result of reduced plantings in response to high
input costs. For maize, however, a reduction in

Cargills first-quarter profits


increase 20%
MINNEAPOLIS, MINNESOTA, U.S.
Cargill on Oct. 7 reported that net
HDUQLQJVIRUWKHVFDOUVWTXDUWHU
ended Aug. 31 were $512 million, up
20% from $425 million in the same quar
ter last year. Net revenues were $27.5
billion, down 17% from $33.3 billion for
the period last year.
Cargill posted a productive start to
WKH QHZ VFDO \HDU OHG E\ VROLG SHUIRU
mance globally in grain and oilseeds pro
cessing and animal nutrition, said David
MacLennan, Cargills chairman and
FKLHI H[HFXWLYH RIFHU 2XU WHDP DEO\
QDYLJDWHG WKH TXDUWHUV ZHDWKHUGULYHQ
agricultural commodity markets, as well
as the effects of more volatile emerg
LQJ PDUNHWV FXUUHQF\ XFWXDWLRQV DQG
other macroeconomic uncertainty. Across
the company, we made good headway
on operational improvements aimed at
strengthening business performance. The
integration of ADMs chocolate business
is proceeding on target, and we are excit
ed to welcome EWOS, a global leader in
salmon nutrition, to our company.
The Origination & Processing seg
ment made the largest contribution to
&DUJLOOV UVW TXDUWHU ZLWK DGMXVWHG RS
erating earnings up slightly from a year
ago. Within the platform, combined
results for the grain and oilseed sup
ply chain businesses rose considerably,
based on effective positioning in agricul
tural commodity markets distinguished
by persistent downward trends and occa
sional sharp price reversals, the company
said. Soybean crush results strengthened
globally, boosted by improved capacity
utilization in South America and an un
usually long processing season in North
America. Performance in North Ameri
can farm services lagged last years
VWURQJUVWTXDUWHUUHHFWLQJDUHWXUQWR
more normalized levels in Canada after
two very large crop years.

Moisture?

area, coupled with lower yields, is expected to


UHVXOWLQDVLJQLFDQWFRQWUDFWLRQLQRXWSXW
to 24.5 million tonnes. Total cereal exports in
WKHFXUUHQWPDUNHWLQJ\HDU -XO\-XQH 
are forecast at 32.4 million tonnes, 5% below
the previous years record level but 32% above
WKHDYHUDJHRIWKHSDVWYH\HDUVVXSSRUWHGE\
the sharp devaluation of the national currency

during the marketing year.

Protein?

Analyzers
capture value
Ash?

Falling Number?
Gluten?

Water absorption?

s+YEARSKNOWLEDGEEXPERTISE
s&UNCTIONALCOMPOSITIONALANALYSIS
s&LOUR GRAINSOILSEEDS
2EADMOREATWWWPERTENCOM

For more information, see Page 114.

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

15

NEWSREVIEW

ADM increases holding in Wilmar


SINGAPORE In response to a query about an unusually highly
level of trading of its shares, Wilmar International Ltd. on Oct. 20
DFNQRZOHGJHG WKDW $UFKHU 'DQLHOV 0LGODQG $'0  D VLJQLFDQW
shareholder in the company, has been purchasing shares.
Wilmar told the Singapore Exchange Securities Trading Limited
WKDW$'0KDVSXUFKDVHGVKDUHVLQ:LOPDUUHHFWLQJDSSUR[LPDWHO\
22% of total sales volumes for Oct. 20.
On Oct. 16, ADM sold its cocoa business to Olam Internation-

al for $1.2 billion. ADM then increased its shares in Wilmar from
the17.3% that it reached in December 2014 when it purchased 60
million shares for $147 million. Wilmar has assets in soy crushing,
HGLEOH RLO UHQLQJ DQG SDFNDJLQJ SDOP SODQWDWLRQV SDOP UHQHUies, biodiesel production, specialty fats and oleochemical fatty acids
throughout Asia. Wilmar reported that second-quarter earnings were
$201 million, or $3.20 per share, up 18% from $170 million, or $2.70
per share, in the same quarter last year.

Cargill completes acquisition of aquaculture feed company


MINNEAPOLIS, MINNESOTA, U.S. Cargill announced on Oct. 8
that it has completed the acquisition of EWOS, a leading supplier of feed
to the international aquaculture industry, for 1.35 billion ($1.52 billion).
EWOS produces more than 1.2 million tonnes of salmon feed for
the biggest salmon producers in the world. It operates in all four the
worlds major salmon farming regions: Norway, Chile, Canada and
Scotland. In addition, EWOS has entered the feed market in Vietnam.
In August, Cargill entered into an agreement with Altor Fund III
and Bain Capital Europe III to acquire EWOS. The deal closed after
meeting all necessary country regulatory approvals.
The acquisition makes Cargills animal nutrition business a leading player in the growing salmon feed industry, one of the most advanced and professionally managed segments in global aquaculture,
the company said.

The combination of Cargill and EWOS is a fantastic, long-term


growth story, said Joe Stone, Cargill corporate vice-president. We
are creating the global leader in aquaculture nutrition, enabling
world-class R&D, delivering innovative products and solutions and
creating opportunities for the industry, our customers and our employees through shared values that will propel our growth.
(LQDU:DWKQH(:26FKLHIH[HFXWLYHRIFHUZLOOFRQWLQXHLQKLV
leadership role under Cargill ownership and assume responsibility as
president of Cargill Aqua Nutrition. In his role, Wathne will be based
in Bergen, Norway, and be part of the Cargill Animal Nutrition leadership team, along with Sarena Lin, president of Cargill Feed & Nutrition, and David Webster, president of Cargill Premix & Nutrition.
As announced, Cargill will now have an additional 1,000 employees across seven feed manufacturing facilities.

For more information, see Page 114.

16

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

NEWSREVIEW

Fred Merrill, milling entrepreneur, dies at 91


MISSION WOODS, KANSAS, U.S. Fred L. Merrill, who from esWDEOLVKLQJDPRGHVWRXUPLOOLQJEXVLQHVVEXLOWWKHODUJHVWLQGHSHQGHQW
FRPSDQ\LQWKH86PLOOLQJLQGXVWU\GLHG2FWDWWKHDJHRI
0HUULOOHVWDEOLVKHGWKHEXVLQHVVKHQDPHG&HUHDO)RRG3URFHVVRUV
,QF &)3 LQE\DFTXLULQJDVLQJOHPLOOLQ&OHYHODQG2KLR
86 :KHQ WKH FRPSDQ\ ZDV VROG LQ  WR 0LOQHU 0LOOLQJ &R
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VXSSRUWHURI.DQVDV6WDWH8QLYHUVLW\ .68 0HUULOOEHJDQKLVFROOHJHFDUHHUDWWKH8QLYHUVLW\RI.DQVDV)ROORZLQJPLOLWDU\VHUYLFHLQ
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Merrill was a longtime member of the North American Millers

In 2011, Kirk Schulz, right, president of Kansas State University, presented


the Outstanding Alumni Award to Fred Merrill, chairman and founder of
Cereal Food Processors, Inc.
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RI&RXQWU\&OXE&KULVWLDQ&KXUFK

European Parliament rejects national GMO bans


675$6%85* )5$1&( 7KH (XURSHDQ 3DUOLDPHQW RQ 2FW 
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PRGLHGRUJDQLVP *02 IRRGRUIHHGRQLWVWHUULWRU\7KHPHPEHUVFDOOHGRQWKH(XURSHDQ&RPPLVVLRQWRWDEOHDQHZSURSRVDODQG
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www.World-Grain.com / World Grain / November 2015

/D9LD (33,7 ZKRVHUHFRPPHQGDWLRQWRUHMHFWWKHSURSRVDOZDV


DSSURYHGE\YRWHVWRZLWKDEVWHQWLRQV
&2&(5$/)(',2/DQG)()$&ZKLFKLVVXHGDVWDWHPHQWDSSURYLQJRIWKHUHMHFWLRQUHFHQWO\LVVXHGDQHFRQRPLFLPSDFWDVVHVVPHQWRQWKHFRPPLVVLRQVSURSRVDOQGLQJWKDWVXEVWLWXWLQJ*0VR\
ZLWKQRQ*0VR\ZRXOGOHDGWRDQLQFUHDVHLQIHHGFRVWVRIDURXQG
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RSWHGRXWRUELOOLRQLQWKHHYHQWWKDWDOO(8FRXQWULHVGLGVR 
PDNLQJ OLYHVWRFN SURGXFWLRQ LQ RSWLQJRXW FRXQWULHV XQFRPSHWLWLYHYLVjYLVQRWRQO\QRQRSWLQJRXWFRXQWULHVEXWDOVRWKLUGFRXQtries, whether on the home or global market.
17

NEWSREVIEW

Brookfield rail deal in Australia faces opposition


MELBOURNE, VICTORIA, AUSTRALIA Grain Producers
Australia (GPA) said the Australian Competition and Consumer
Commission (ACCC) must have an ongoing, active oversight role of
Australias rail freight networks, supported by an appropriate reguODWRU\IUDPHZRUNLIWKHWDNHRYHURI$VFLDQRE\%URRNHOGLVWREH
allowed to proceed.
&DQDGLDQEDVHG %URRNHOG$VVHW 0DQDJHPHQW ,QF LV OHDGLQJ D
group that has agreed to pay A$8.9 billion ($6.55 billion) in cash
and stock for Asciano Ltd., the Australian rail and port operator. The
$&&& KDV VDLG LW SODQV WR LVVXH D QDO GHFLVLRQ RQ WKH SURSRVHG
acquisition on Dec. 17
)ROORZLQJ WKH SURSRVHG DFTXLVLWLRQ %URRNHOG ZRXOG RZQ$Vcianos rail network and train operations in two of Australias eight
VWDWHV7KLVLQFOXGHV3DFLF1DWLRQDOZKLFKRSHUDWHVRQ%URRNHOGV
rail network in Western Australia and transports products to BrookHOGVWHUPLQDOLQFHQWUDO4XHHQVODQG
%URRNHOGFXUUHQWO\RSHUDWHVWKHRQO\UDLOIUHLJKWQHWZRUNLQWKH
southern half of Western Australia. The relationship between BrookHOGDQGJUDLQKDQGOHUVKDVEHHQVRPHZKDWIUDXJKWDWWLPHV
Andrew Weidemann, GPA chairman, said if there ever was an
example of how not to do things, it would have to be the lease of
WKHJUDLQUDLOIUHLJKWQHWZRUNLQ:HVWHUQ$XVWUDOLDWR%URRNHOGWKDW
enabled the company to extract monopoly rent and leave WAs grain
growers worse off.
Grain growers in Western Australia have highlighted the way

WKHLUUDLODVVHWKDVEHHQDOORZHGWRGHFOLQHWKURXJKLQVXIFLHQWPDLQtenance expenditure, all while they are forced to pay more in charges
to use the network, Weidemann said.
A similar situation to this in Victoria existed some years ago, when
the rail freight network was privatized and the result was that the
network fell into disrepair, rail services became uncompetitive and
much grain was forced onto the road. Eventually, the Victorian government had to resume ownership.
Successive governments have been forced to spend large sums of
money in rehabilitating the Victorian network, with much more still
required all while the challenge of getting grain to port has become
the industrys biggest bottleneck and a major loss of supply chain
productivity, GPA said.
The ACCC is concerned that the vertical integration will lead to
a substantial lessening of competition in related markets for the supSO\RIDERYHUDLOKDXODJHVHUYLFHVLQ:$DQG4XHHQVODQG$&&&
Chairman Rod Sims said. Competition concerns can be particularly
acute in cases involving key infrastructure assets of a technical nature, which require many operational decisions to be made on a daily
and longer-term basis.
CBH Group, based in West Perth, Australia, said the ACCC comments recognize the concerns CBH and growers have regarding inFUHDVHG LQFHQWLYHV WKH PHUJHU ZRXOG SURYLGH IRU %URRNHOG WR DFW
anti-competitively in Western Australia.
CBH has previously urged the ACCC to block the deal.

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$PTU&FDUJWF4PMVUJPOT5IBU(FU3FTVMUT

t More than 50 years of grain storage, movement and


handling expertise
t Global divisions widely recognized as industry leaders
in their respective fields
t Full arsenal of durable storage and handling products
t Flexibility to quote entire projects or single components
t Globals renowned quality, service & support that seals
partnerships and keeps Global customers coming back

You expect results. Global delivers.


Global Industries, Inc.
2928 East US Highway 30
Grand Island, NE USA 69902
E-mail: [email protected]
Ph: 308-384-9320 Fax: 308-389-5253
www.globalindinc.com Visit Us On Facebook

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For more information, see Page 114.

18

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

NEWSREVIEW

G3 building terminal at Port of Hamilton


WINNIPEG, MANITOBA, CANADA G3 Canada Limited (G3)
announced on Oct. 13 that it will construct a new lake terminal at the
Port of Hamilton in Ontario, Canada to originate grains and oilseeds
out of Southern Ontario for export to global markets.
G3 is excited to announce this major investment in the Port of
Hamilton as part of our vision to create a coast-to-coast Canadian
JUDLQHQWHUSULVHVDLG.DUO*HUUDQGFKLHIH[HFXWLYHRIFHU &(2 
G3. Grain exports from Southern Ontario have been increasing for
some time now. We look forward to expanding our relationship with
farmers in the province, and will work hard to establish G3 as the
partner of choice in marketing their grain.
The 50,000-tonne-capacity facility will be located at Pier 26 in
the Port of Hamilton, just off Queen Elizabeth Way. Grains and
oilseeds will be loaded on to vessels for transport to G3s facilities on the St. Lawrence River. From there, they will be shipped

onwards to export markets around the world.


G3 is a joint venture between Bunge and state-owned Saudi Agricultural and Livestock Investment Company (SALIC) that was established to purchase a controlling interest in CWB, formerly the
&DQDGLDQ:KHDW%RDUG*LVZRUNLQJWRHVWDEOLVKDQHIFLHQWFRDVW
to-coast Canadian grain enterprise that provides stronger market access for growers.
We recognize time is valuable for our farmer partners, which is
why this facility has been designed to get trucks in and out as fast
as any competing terminal in Ontario, Gerrand said. Combined
with G3s existing facilities in Trois-Rivires and Quebec City, and
our strong marketing connections, we believe G3 will present a very
competitive new option for Ontario farmers.
Construction on the facility is already under way and is slated for
completion prior to the 2017 harvest.

Noble Agri hires former ADM executive to lead grains, oilseeds


GENEVA, SWITZERLAND Noble Agri (NAL) announced on
Sept. 29 the appointment of Kevin Brassington as Global Head of
Grains & Oilseeds. Brassington will be based at NALs Geneva, Switzerland headquarters and will assume his responsibilities immediately.
Brassington comes to NAL from Archer Daniels Midland Co.,
where he served as president, Oilseeds Europe. He brings to his new
post two decades of experience in all aspects of the grains and oil

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

sector, rising through the ranks in North America and Europe, to positions of increasing global responsibility.
With operations on six continents, NALs Grains & Oilseeds
Group is one of the leading oilseed processors, with oilseed crushLQJDQGUHQLQJRSHUDWLRQVLQ&KLQD%UD]LO$UJHQWLQD6RXWK$IULFD
Ukraine and India, complemented by logistics assets and facilities
such as ports, elevators and warehouses.

For more information, see Page XX.


For more information, see Page 114.

19

GRAINMARKET REVIEW

Wheat
Abundant supplies keep prices weak
by Chris Lyddon

200,000
150,000
100,000
50,000

2014-15

2013-14

2012-13

2011-12

2010-11

2009-10

2015-16*

0
2008-09

20

(in 1,000 tonnes)

250,000

2007-08

The world wheat market has a bearish tone with supplies abundant
and strong competition for unenthusiastic export markets. That and a
strong dollar mean that the U.S. faces the prospects of record low shipments abroad in 2015-16.
World wheat export prices remained weak in September, pressured
by heavy supplies and subdued importer buying interest, the International Grains Council (IGC) said in its Grain Market Report. Strong
H[SRUWFRPSHWLWLRQFRQWLQXHGWREHUHHFWHGLQGHDOVEHLQJUHSRUWHGDW
below market levels.
Concerns about increasingly dry weather in Australia and adverse
dryness for new crop planting in Russia and Ukraine contributed to price
support toward the end of the month. Overall, the IGC GOI wheat subIndex rose by a net 3% m/m, but stayed close to its lowest levels since
mid-2010.
In a commentary on the wheat market, David Sheppard, managing
director of U.K. merchant Gleadell, jointly owned by ADM and InVivo,
said that global futures markets continue to defy the bearish fundamental supply position, which is supported by ongoing new crop concerns in
the U.S., Black Sea regions and Australia.
Chicago and MATIF markets are overpriced against other cash
wheat origins, he said.
The IGC pointed out that there is an exception for higher quality wheat. Attractively priced Black Sea wheats often feature in
reported purchases, it said. However, values for higher protein
milling wheat were underpinned by signs of tightening availabilities.
Compared with the last Grain Market Report, 12.5% protein milling
wheat quotations rose by about $2, to $184 FOB, with 11.5% protein
at around $174 FOB.
In the E.U. (France), milling wheat (11.5% protein) weakened by $3,
to $181 FOB (Rouen).
,PSURYLQJFRQGHQFHDERXWSURGXFWLRQSURVSHFWVKHOSHGWRNHHS
new crop APW values in Australia broadly steady for most of the
month, but rising worries about dryness contributed to modest gains
in late September, to $212 FOB (Adelaide), the IGC said. In the
U.S., an increase in nearby FOB prices further worsened export competitiveness. As of Sept. 23, SRW at $217 FOB (Gulf) was around $43
higher than Black Sea 11.5% protein supplies and $36 above comparable E.U. (France) values.
In its Wheat Outlook report, the USDAs Economic Research Service
put U.S. wheat exports for 2015-16 at 23 million tonnes, a cut in the
forecast of 2 million and largely on par with last years paltry exports.
According to the USDAs Foreign Agricultural Service, U.S. 2015-16
exports will be the lowest since 1971-72.
The main reasons for lower U.S. export prospects this month are increased wheat supplies in major competitors coupled with its own lower
projected wheat output this year, the ERS said. Higher-than-expected
wheat production and supplies in the main wheat exporting countries of
Australia, Canada, E.U., and Ukraine are expected to toughen the com-

World wheat ending stocks

*Projected
Source: U.S. Department of Agriculture

petition for U.S. exports all over the world.


Most countries currencies have been depreciating vis--vis the U.S.
dollar for some time (though in September, the U.S. dollar lost some of
its value against the euro and Australian and Canadian dollars. A strong
dollar creates a big price disadvantage for U.S. exports, effectively pricing them out of the market, and reducing the U.S. share in global wheat
exports.
Higher projected foreign 2015-16 wheat production for major exporters and larger beginning stocks boost world wheat supplies, the ERS
said. With projected use unchanged, the already record-level ending
stocks are increased further, it said. Global wheat trade is projected
higher, and exports are expected to rise for Ukraine, Canada, Australia,
the E.U., Russia and Kazakhstan. The U.S. remains priced out of most
global wheat trade, with a further decline in its wheat export prospects.
Currently, U.S. FOB prices are about $35 per tonne above both
French and Black Sea wheat, FAS said in a report titled, Grain: World
Markets and Trade.
Russian and Ukrainian exports are forecast at record levels, it said.
E.U. exports are projected to be the second highest on record. E.U. and
Black Sea exports have displaced the United States as the primary supplier in many major importing countries in North Africa and the Middle
East based on low prices as well as freight and logistical advantages.
Furthermore, the United States has recently lost market share in
some traditional markets and the trend is expected to continue, it said.
For example, Mexico has recently begun importing from France, Russia, and Ukraine. Compared to last year, U.S. export commitments to
Mexico are down 27%.
$GGLWLRQDOO\86PDUNHWVKDUHLQ1LJHULDGHFOLQHGIURPDYH\HDU
average of 76% to 43% last year as lower-priced Russian and E.U. supplies entered the market, it said. U.S. export commitments to Nigeria
are down 38% from last year, further dimming prospects for market
share recovery, it said.
Chris Lyddon is World Grains European editor.
He may be contacted at: [email protected].
We want to hear from you Send comments and inquiries to
[email protected]. For reprints of WG articles, e-mail [email protected].

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

MAXI-LIFT ELEVATOR

BUNDLES!

For more information, see Page 114.

COUNTRY FOCUS

Focus on Ethiopia
Country is one of Africas largest
producers, consumers of grain
by Chris Lyddon

Ethiopia has a small-scale farming industry, but one which


is of great importance to its economy. Grain trading is subject
to a high level of state control and the country has continuing
problems feeding its population.
The International Grains Council (IGC) forecasts total grain
production in Ethiopia at 15.6 million tonnes in 2015-16,
compared with 15 million the year before. The countrys wheat
crop is forecast at 2.8 million tonnes, up from 1.8 million the
prior year. Maize production is put at an unchanged 6.5 million
tonnes. The IGC sees Ethiopias barley crop coming down
to 1.7 million tonnes from 2.1 million in 2014-15. Sorghum
production is seen unchanged at 4 million tonnes.
Ethiopia also produces teff grain. The USDA attach, in a
report published in March, put the total production of teff at
4.33 million tonnes.
Total Ethiopian imports of grain in 2015-16 are forecast by
the IGC at 2.4 million tonnes, up from its estimate for 2014-15
of 2.1 million. They include imports of wheat put at 800,000
tonnes, down from 900,000 the year
before.
Aside from wheat imports, there are no
VLJQLFDQW YROXPHV RI JUDLQ EHLQJ WUDGHG
outside the country due to continued export
restrictions, the USDA attach said in a
ETHIOPIA
report published in March.
The report described Ethiopias smallscale farming economy.
Subsistence agriculture is the mainstay
of Ethiopias economy and is the key
economic driver in the government of Ethiopias
*2(  YH\HDU *URZWK  7UDQVIRUPDWLRQ 3ODQ
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,Q LWV &URS 3URVSHFWV DQG )RRG 6LWXDWLRQ
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Organization reported on Ethiopias problems feeding its
population. In Ethiopia, the estimated number of food
insecure people increased from 2.9 million in January 2015 to
4.5 million in August and to 7.5 million in October, as severe
YEMEN

ERITREA

DJIBOUTI

SOMALIA

UGANDA

22

KENYA

Key Facts
Capital: Addis Ababa
Population: 99,465,819
Religions: Ethiopian Orthodox 43.5%, Muslim 33.9%,
Protestant 18.5%, traditional 2.7%, Catholic 0.7%, other
0.6% (2007 est.).
Location: Eastern Africa, west of Somalia.
Government: Federal republic. Chief of state: President
Mulatu Teshome Wirtu (since Oct. 7, 2013); head of government: Prime Minister Hailemariam Desalegn (since
Sept. 21, 2012).
Economy: Ethiopias economy is based on agriculture, but
the government is pushing to diversify into manufacturing,
textiles and energy generation. Coffee is a major export
crop. The agricultural sector suffers from poor cultivation
practices and frequent drought, but recent joint efforts by
the government of Ethiopia and donors have strengthened
Ethiopias agricultural resilience, contributing to a reduction in the number of Ethiopians threatened with starvation. The banking, insurance, telecommunications, and
micro-credit industries are restricted to domestic investors,
but Ethiopia has attracted significant foreign investment
in textiles, leather, commercial agriculture and manufacturing. Under Ethiopias constitution, the state owns all
land and provides long-term leases to the tenants; land
use certificates are now being issued in some areas so that
tenants have more recognizable rights to continued occupancy and hence make more concerted efforts to improve
their leaseholds. While GDP growth has remained high, per
capita income is among the lowest in the world. Ethiopias
economy continues on its state-led Growth and Transformation Plan and is scheduled to issue another development plan in 2015. Ethiopia has achieved high single-digit
growth rates through government-led infrastructure expansion and commercial agriculture development. Ethiopia
in late 2014 issued its first sovereign bond, generating $1
billion in revenue for a 10-year note.
GDP per capita: $1,600 (2014 est.); inflation: 7.4%
(2014 est.); unemployment: 17.5% (2012 est.).
Currency: birr (ETB): 20.99 birrs equal 1 U.S. dollar (Oct.
22, 2015).
Exports: $4.14 billion (2014 est.): coffee, khat, gold,
leather products, live animals, oilseeds.
Imports: $12.08 billion (2014 est.): food and live animals,
petroleum and petroleum products, chemicals, machinery,
motor vehicles, cereals, textiles.
Major crops/agricultural products: Cereals, coffee,
oilseed, cotton, sugarcane, vegetables, khat, cut flowers;
hides, cattle, sheep, goats, fish.
Agriculture: 47.7% of GDP and 85% of the labor force.
Internet: Code: .et; 1.6 million users.
Source: CIA World Factbook

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

For more information, see Page 114.

COUNTRY FOCUS

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The government limits grain trade,


with exports restricted, although
some informal border trade
probably takes place.

Ethiopian wheat production, imports


(in 1,000 tonnes)

5,000
4,000
3,000
2,000
1,000
0
2015-16*

2014-15

2013-14

2012-13

2011-12

2010-11

Imports

2009-10

2008-09

24

TEFF EXPORTS
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Production

*Projected
Source: U.S. Department of Agriculture

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

COUNTRY FOCUS

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Chris Lyddon is World Grains European correspondent. He may be


contacted at: [email protected].
We want to hear from you Send comments and inquiries to worldgrain@
sosland.com. For reprints of WG articles, e-mail [email protected].

Complete Feed Mills,


Plants and Machines

Turn-key feed mills and plants for compound feed, shrimp and fish feed, pet food, premix / concentrate,
roughage, straw, green forage, dried beet pulp, wood and biomass, recycling plants for waste tyres,
household and industrial waste and composting plants.

For more information, see Page 114.


AMANDUS KAHL GmbH & Co. KG Dieselstrasse 5-9 D-21465 Reinbek/Hamburg Phone: +49 40 727 71 0
[email protected] www.akahl.de
For more information, see Page 114.

www.World-Grain.com / World Grain / November 2014

25

FEATURE

a royal

ACCOMPLISHMENT

n its 125 years as one of the United States leading milling


companies, King Milling has survived two world wars,
WKH*UHDW'HSUHVVLRQDUHWKDWGHVWUR\HGLWVPLOOLQ
VHYHUDO PDMRU RRGV UHFRUGKLJK ZKHDW SULFHV LQ WKH HDUO\
VWKHUHFHQWJOREDOHFRQRPLFFROODSVHDQGWKHSUHPDWXUH
GHDWKVRIVHYHUDONH\OHDGHUVRIWKHIDPLO\EXVLQHVV
Statistically speaking, surviving all these hardships through
YH JHQHUDWLRQV SXWV /RZHOO 0LFKLJDQ 86EDVHG .LQJ
0LOOLQJLQYHU\VHOHFWFRPSDQ\'XULQJDEDQTXHWFRPPHP
orating the companys 125th DQQLYHUVDU\ RQ 6HSW  .LQJ
Milling President Brian Doyle put the companys longevity
LQSHUVSHFWLYH
2QO\  PDNH LW WR WKH VHFRQG JHQHUDWLRQ RQO\ 
PDNH LW WR WKH WKLUG JHQHUDWLRQ DQG RQO\  PDNH WR WKH
Ren Steiner, third from right, of Switzerland-based Bhler AG, presents
King Milling executives with a Swiss cow bell to recognize the company
as a leader in the U.S. milling industry. Shown in the photo are, from left,
Regan Doyle, Steve Doyle, Jim Doyle, Steiner, Brian Doyle and Patrick Doyle.
Photos by Arvin Donley.
26

by Arvin Donley

King Millings 125th anniversary


gala celebrates the past, looks
optimistically toward the future
IRXUWKKHVDLG$QGWKH\GRQWKDYHDQ\VWDWVEH\RQGWKDW
EHFDXVHWKHUHDUHVRIHZIDPLO\EXVLQHVVHVWKDWPDNHLWWRWKH
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$QGFHOHEUDWHWKH\GLGDVPRUHWKDQSHRSOHDWWHQGHG
November 2015 / World Grain / www.World-Grain.com

Creating Opportunity Since 1851.

Partnership
Connecting Your Supply to the Domestic and Global Marketplace.

Community
Active Participation in the Communities Where We Live and Work.

Commitment
Supported by the Reliability and Financial Security of Louis Dreyfus Commodities.

Louis Dreyfus
Commodities

LDCom.com

King Milling Company, located in downtown Lowell, Michigan, is celebrating its 125th birthday in 2015.

the ceremony at Notos restaurant in


Grand Rapids, Michigan, including dozens of current and former King Milling
employees, suppliers, customers, local
DQG VWDWH JRYHUQPHQW RIFLDOV IULHQGV
and family members.
Weve been baking bread with King
0LOOLQJRXUIRU\HDUVVDLG&LQG\
+DYDUG FKLHI RSHUDWLQJ RIFHU DQG
FKLHIQDQFLDORIFHURI*UDQG5DSLGV
EDVHG &ROHV 4XDOLW\ )RRGV 7KH\ DUH
a fabulous vendor and are fabulous to
ZRUNZLWK<RXGRQWQGWKHTXDOLW\RI
people any better than you do at King
0LOOLQJ7KH'R\OHVDUHZRQGHUIXO
Ren Steiner, who represented King
0LOOLQJV SULPDU\ PLOOLQJ HTXLSPHQW
supplier, Bhler Inc., at the event, said
his company also has a special longWHUPUHODWLRQVKLSZLWKWKH'R\OHIDPLO\
&XOWXUHZLVH .LQJ 0LOOLQJ DQG
Bhler are very similar in that they are
family-owned businesses that are mainly interested in long-term investments,
QRW MXVW D VKRUWWHUP SURW 6WHLQHU
said. We do whatever we can for the
long-term success of our company and
VRGRHV.LQJ0LOOLQJ

the companys longevity were its ability


WRFXVWRPL]HLWVRXUSURGXFWLRQIRUWKH
exact needs of its customers, being vigiODQWDERXWUHLQYHVWLQJLWVSURWVEDFNLQWR
the business and putting family relationships at the top of the priority list.
Brian said he and his cousins, Jim
'R\OHVHQLRUYLFHSUHVLGHQWDQG6WHYH
'R\OH YLFHSUHVLGHQW KDYH KHDUG WKH
horror stories of other family business
falling apart over petty personal disagreements and are resolute in not letting that happen at King Milling.
7KHIDPLO\SDUWLVLPSRUWDQW%ULDQ
'R\OH VDLG ,W LV YHU\ LPSRUWDQW WKDW
Jim, Steve and I get along and hopefully
pass that along to our kids. It is a family
EXVLQHVVUVWDQGDEXVLQHVVVHFRQG
7ZR RWKHU SULQFLSOHV WKDW KDYH EHHQ
passed down through the generations
are being debt averse and reinvesting
SURWV%ULDQ'R\OHVDLG
Weve plowed almost every dollar
EDFNLQWRWKHEXVLQHVVKHVDLG:HYH
tried to stay ahead of the curve in terms
of technology. We were one of the very
UVWPLOOLQJFRPSDQLHVWRXVHSQHXPDWLF
conveying back in the 1960s. We were
RQH RI WKH YHU\ UVW PLOOV WR UXQ DXWRKEYS TO SUCCESS
PDWHGEDFNLQ
Speaking to World Grain prior to the
And as any King Millling customer
EDQTXHW%ULDQ'R\OHVDLGWKHUHDVRQVIRU can attest, the company has always been
28

willing to go to any lengths to customL]HLWVRXUSURGXFWVWRPHHWWKHQHHGV


of its clients.
We are not one of the big milling
FRPSDQLHV VR ZH KDYH WR EH QLPEOH
%ULDQ'R\OHVDLG2QHQLFHWKLQJDERXW
being a small mill is we can be nimble.
We mill a lot of different products, difIHUHQW RXUV DQG GLIIHUHQW ZKHDWV :H
EOHQG LW DQG SURGXFH WKH RXU WKDW WKH
FXVWRPHUZDQWV
Havard said King Millings ability to
GHOLYHU D YHU\ VSHFLF W\SH RI RXU LV
critical to her companys success.
We actually have our own special
EOHQGVKHVDLG7KH\ZLOODFFRPPRdate anything you need, especially when
WKHQHZZKHDWFURSFRPHVLQ7KH\DUH
very cognizant of working with us and
getting the right protein blends to make
LWZRUN
Whether its customers, suppliers or
employees, King Milling boasts numerous long-term relationships. Nearly
half of the companys 50 employees
have been with King Milling for 10 or
more years. And all of the companys
 UHWLUHG HPSOR\HHV ZKR DUH VWLOO OLYing worked for the company 16 years or
longer.
%ULDQ 'R\OH QRWHG WKDW PDQ\ RI WKH
companys customers have bought King

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

FEATURE: A ROYAL ACCOMPLISHMENT

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

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Important dates in the history of King Milling


1890 Superior Mill in Lowell, Michigan, U.S. files for bankruptcy and is purchased
by a corporation owned by Francis King, his son, Francis T. King, Charles McCarty
and Reuben Quick for $20,000. They named the company King Milling.
1896 Forrest Mills, then owned by Charles Wisner, merges with King Milling and
Wisner gains some ownership of the company.
1900 Francis King dies and Francis T. King becomes King Milling president.
1911 Thomas Doyle purchases the company shares of Charles McCarty.
1927 King Milling purchases Peckham Furniture Company, which at one time
was the largest sleigh manufacturer in the world. The Peckham operations were
converted into a poultry and livestock feed manufacturing facility headed by William Doyle, youngest son of Thomas Doyle.
1934 Francis T. King dies. Charles Doyle is named president.
1940 The Doyle family purchases the King familys shares of the company.
1943 Charles Doyle, who suffered a paralytic stroke in 1936, dies in 1943. Young
er brother, William, is named president.
1943 The King Millings flour mill burns to the ground, and the company is unable
to produce flour for two years while a new mill is constructed.
1945 The new mill opens, but 10 days later company president William Doyle dies
of a heart attack.
1945 William Doyles oldest son, King, who is serving in the U.S. Navy at the time
of his fathers death, returns to Lowell to serve as company president at age 23.
Mid-1960s King Milling is one of the first mills to convert from a bucket elevator
system for conveying flour to a more sanitary pneumatic system.
Late 1960s King Milling develops and implements wheat heating process that
deactivates enzymes in the wheat, enhancing shelf life and improving other enduse characteristics.
1978 King Milling becomes one of the first flour mills to apply color sorting tech
nology to wheat by installing a Sortex machine in its A Mill.
1995 King Doyle and his brother, Mike Doyle, retire. Kings son, Brian, becomes
company president; Mikes sons, Jim and Steve, become company vice-presidents.
2004 A fifth floor is added to the original mill built by William Doyle and much of
the old milling equipment is removed and replaced. This addition increases milling capacity from 5,400 cwts to 7,500 cwts per day.
2010 King Milling becomes the first flour mill in the world to become SQF certified.
2013 A new mill, named the B Mill, is built in 2013, bringing King Millings daily
white flour milling capacity to 12,500 cwts.
2015 King Milling celebrates its 125th year in business.
29

FEATURE: A ROYAL ACCOMPLISHMENT

year tenure as the companys leaders,


from 1945 to 1995, King and Mike accomplished the following:
x Increased the mill capacity to
5,400 cwts.
x Increased wheat storage capacity
to 2.8 million bushels with the addition of 900,000 bushels of storage in the 1970s and 1 million
bushels in the 1980s.
x King Milling become one of the
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elevator system for conveying
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system.
x Newer transportation systems
were introduced, including bulk
trucking and a system capable of
ORDGLQJ  FZWV RI RXU LQWR D
truck in just under 4 minutes.
x Bought property owned by C.H.
Runciman Company which had
been operating as a producer of
navy beans and eventually converted it into King Millings curUHQW PDLQ RIFH DQG IURP D EHDQ
processing facility into a whole
wheat mill.
x Implemented a wheat heating
process that deactivates enzymes
in wheat, enhancing shelf life
and improving other end-use
characteristics.
x %HFDPHRQHRIWKHUVWRXUPLOOV
to apply color sorting technology to
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machine in the A Mill in 1978.

Michael Van Haren, Warner Norcross & Judd, left, with Regan Doyle, assistant vice-president,
King Milling.

said Jim Doyle, noting that the facility incorporates the latest and most advanced
milling technology. Well, were already
operating seven days a week. To put
some perspective on this growth, it took
the company 96 years to get to a milling
capacity of 5,000 cwts per day. We started up the new 5,000-cwt B mill in 2013
and now, less than two years later, all the
additional capacity has been sold.
$V SDUW RI WKH H[SDQVLRQ D QHZ
MOVING FORWARD
millfeed load out system was built
As proud as the Doyles are of their which is capable of storing over 500
past, they are even more optimistic tons of millfeed and loading out a 25about the companys future. A new, ton truck in 15 minutes.
5,000-cwt B mill, built in 2013,
Waiting in the wings to assume
EURXJKW.LQJ0LOOLQJVGDLO\ZKLWHRXU leadership of the company are the
milling capacity to 12,500 cwts and its IWK JHQHUDWLRQ 3DWULFN DQG 5HJDQ
overall milling capacity the Lowell 'R\OH VRQV RI %ULDQ 3DWULFN ZKR
PLOOLQJ FRPSOH[ DOVR LQFOXGHV D ZKROH received a bachelors degree in food
wheat mill with 4,000 cwts of capacity business management from Michigan
to 16,500 cwts, making it Michigans 6WDWH8QLYHUVLW\DQGDPDVWHUVGHJUHH
largest milling facility.
IURP.DQVDV6WDWH8QLYHUVLW\LVEHLQJ
We thought we could grow into this groomed for the management side of
capacity over several years and surely the business.
avoid seven-day weeks for our millers,
I wear a lot of hats, said 29-year30

ROG 3DWULFN , KHOS -LP ZLWK ZKHDW


SXUFKDVLQJ DQG P\ GDG ZLWK RXU
sales. Basically I do a lot of general
managing.
Meanwhile, younger brother, Regan,
26, is immersed in the operations side of
the business. He graduated from Kansas
6WDWHLQZLWKDPLOOLQJVFLHQFHGHJUHH DQG WKHQ DWWHQGHG %KOHUV 6ZLVV
6FKRRO RI 0LOOLQJ ZKHUH KH UHFHLYHG
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Regan is a very good milling engineer, Brian Doyle said. He is an unGHUVWXG\WR6WHYH 'R\OH 
%ULDQ 'R\OH VDLG KH LV FRQGHQW DOO
the pieces are in place for King Milling
WRFRQWLQXHLWVUHLJQDVRQHRIWKH8QLWHG
6WDWHV PRVW VXFFHVVIXO RXU PLOOLQJ
enterprises.
As King Doyle often would say, You
cant stand still. You are either falling behind or going ahead. We intend to follow
that advice and move forward.
We want to hear from you Send comments and
inquiries to [email protected]. For reprints of
WG articles, e-mail [email protected].

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

DESIGN DOES MATTER


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Behlen Mfg. Co. has been ISO


registered since 1999.
For more information, see Page 114.

ZZZEHKOHQJUDLQV\VWHPVFRP


FEATURE

CROPS
LOWER,
but supply situation
still comfortable

rains crops for 2015-16 are largely down on record


levels achieved last year, but the world still has
enough grain, with the International Grains Council
(IGC) putting ending stocks at the highest level for 29 years.
Based on the latest indications, the world cereal supply
and demand balance in the 2015-16 marketing season is
likely to remain in a generally comfortable situation, the
United Nations Food and Agriculture Organization (FAO)
said in a Cereal Supply and Demand Brief. While world
production is expected to fall below last years record,
VXSSOLHV ZLOO EH DOPRVW VXIFLHQW WR PHHW WKH SURMHFWHG
demand, requiring only a small reduction in global stocks by
the end of the season.
Of the wheat sector, Rabobank said in its AgriCommodities
0RQWKO\ UHSRUW WKDW VLJQLFDQW UDOOLHV ZLOO EH GLIFXOW WR
sustain for the remainder of 2015 without adverse weather.
 *OREDO SULFHV ZLOO OLNHO\ ULVH GXULQJ WKH UVW KDOI RI
2016, after Black Sea export programs have slowed down,
and E.U. exports should be the prime source, with U.S.
32

by Chris Lyddon

Global grain ending stocks for


2015-16 at the highest level
in 29 years
supplies also possibly becoming more competitive.
Despite an ongoing strong El Nio and some dryness in
the Black Sea region ahead of winter wheat planting, there
DUHQRPDMRUWKUHDWVWRFURSV\HW5DEREDQNVDLG:LQWHU
wheat planting in the northern hemisphere is ongoing and we
IRUHFDVWQRVLJQLFDQWFKDQJHVLQZKHDWDFUHDJH
For corn (maize), Rabobank said reduced yields could push
SULFHV XS 7KH PDLQ IDFWRU FDSSLQJ DQ\ UDOO\ DUH WKH HUFH
export offerings out of Brazil that cut into the U.S. export market
share and could potentially result in additional stock building
November 2015 / World Grain / www.World-Grain.com

FEATURE: CROPS LOWER, BUT SUPPLY SITUATION STILL COMFORTABLE

in the U.S., it said. Brazilian exports are


generally competitive.
The bank noted that increased
competitiveness followed a devaluation
in the Brazilian currency relative to
the U.S. dollar. It forecast a 2% rise
in Brazilian corn area for the coming
season. Even so, current domestic
prices in Brazil favor soybean plantings
over corn, it said.

U.S. farmer storing will, once


again, become a critical factor to watch
in the 2015-16 season, Rabobank said
of the corn market. With grain and
oilseed prices at the lowest levels in a
long time, we expect farmers to once
again store large amounts of grains,
holding onto them until they might
see more favorable prices, which can
force a winter premium, especially as

processors and exporters will begin


strong buying programs once widescale harvest is under way.
The FAOs Oct. 8 report put world
cereal production in 2015 at 2.534
billion tonnes, 6 million tonnes less than
expected in September and 24 million
tonnes (0.9%) below the 2014 record.
This months revision results from
lower production prospects for coarse

Global Grain Trade Activity


Marketing years as indicated (in 1,000 tonnes)
WHEAT

SOYBEANS

BARLEY

2014-15
Top exporters:
1. E.U. ....................................................35,397
2. Canada ..............................................24,116
3. U.S. ....................................................23,294
4. Russia ................................................22,000
5. Australia .............................................16,700
World Total: ...............................164,893 (-1%)

2014-15
Top exporters:
1. Brazil .................................................50,000
2. United States ......................................49,940
3. Argentina .............................................9,600
4. Paraguay ..............................................4,600
5. Canada ................................................3,775
World Total: ........................124,880 (+10.8%)

2014-15
Top exporters:
1. E.U. ......................................................9,547
2. Australia ...............................................5,600
3. Russia ..................................................5,336
4. Ukraine ................................................4,456
5. Canada ................................................1,544
World Total:..........................29,294 (+27.8)%)

Top importers:
1. Egypt..................................................11,063
2. Indonesia .............................................7,490
3. Algeria..................................................7,257
4. Iran ......................................................6,300
5. Brazil ....................................................6,000

Top importers:
1. China .................................................77,000
2. E.U. ....................................................13,450
3. Mexico .................................................4,025
4. Japan ...................................................2,900
5. Taiwan ..................................................2,350

Top importers:
1. China ...................................................8,800
2. Saudi Arabia .........................................8,200
3. Iran ......................................................2,200
4. Japan ...................................................1,150
5. Algeria................................................... 950

FLOUR

SOYBEAN MEAL

SORGHUM

2014-15 (estimated)
(1,000 tonnes, wheat equivalent)
Top exporters:
1. Turkey ...................................................3,531
2. Kazakhstan...........................................2,385
3. E.U. ...................................................... 900
4. Iran ...................................................... 830
5. Argentina ............................................. 652
World Total: .............................13,770 (+4.8%)

2014-15
Top exporters:
1. Argentina ...........................................28,500
2. Brazil ..................................................14,700
3. United States ......................................11,839
4. Paraguay ..............................................2,550
5. China ...................................................1,700
World Total: .............................64,000 (+6.6%)

2014-15
Top exporters:
1. United States ........................................8,890
2. Australia ...............................................1,500
3. Argentina .............................................1,200
World Total:............................12,124 (+58.3%)

Top importers:
1. Iraq ......................................................1,510
2. Afghanistan ..........................................1,420
3. Uzebekistan..........................................1,170
4. Brazil .................................................... 550
5. Syria ..................................................... 350

Top importers:
1. E.U.-27 ...............................................19,550
2. Indonesia .............................................4,250
3. Vietnam................................................4,200
4. Thailand ...............................................3,000
5. Philippines ............................................2,500
RICE

MAIZE
2014-15
Top exporters:
1. U.S. ....................................................47,627
2. Brazil ..................................................28,000
3. Ukraine ..............................................19,500
4. Argentina ...........................................17,000
5. E.U. ......................................................3,800
World Total:..............................131,708 (+1%)
Top importers:
1. Japan .................................................14,700
2. Mexico ...............................................11,000
3. South Korea........................................10,000
4. E.U. ......................................................9,000
5. Egypt....................................................7,500

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

2014-15
Top exporters:
1. India...................................................11,500
2. Thailand ...............................................9,000
3. Vietnam................................................6,200
4. Pakistan ...............................................4,000
5. United States ........................................3,207
World Total: ...............................42,583 (+2%)
Top importers:
1. China ...................................................4,400
2. Nigeria .................................................4,000
3. Philippines ............................................1,700
4. E.U. .....................................................1,630
5. Iran ......................................................1,500

Top importers:
1. China .................................................10,000
2. Japan ...................................................1,000
RAPESEED
2014-15
Top exporters:
1. Canada ................................................9,207
2. Australia ...............................................2,400
3. Ukraine ................................................1,970
World Total:...............................14,566 (-2.6%)
Top importers:
1. China ...................................................4,600
2. Japan ...................................................2,450
3. E.U. ......................................................2,356
4. Mexico .................................................1,540
5. Pakistan ...............................................1,025
Source: International Grains Council, London; United States
Department of Agriculture's Foreign Agricultural Service,
Washington, D.C.

33

FEATURE: CROPS LOWER, BUT SUPPLY SITUATION STILL COMFORTABLE

grains and rice, which more than offset


a higher estimate for wheat, it said.
The forecast for global coarse grains
production in 2015 has been lowered
by around 5 million tonnes in recent
weeks on less buoyant expectations in
the United States and the E.U., more than
offsetting improved prospects in Brazil.
FAOs latest forecast puts world coarse
grains production at 1.306 billion tonnes,
1.8% down on 2014s record. Its forecast
for world wheat production is now 735
million tonnes, 6.4 million higher than
its previous forecast in September and
0.3% over the 2014 record. Higher
wheat production in China and the E.U.
accounts for most of this months upward
adjustment, it said.
The FAO predicts world grains
utilization in 2015-16 approaching
2.530 billion tonnes, down 6 million
tonnes from the previous forecast, but
still 1.2% or 31 million tonnes above
2014-15. This months revision mostly
UHHFWVGRZQZDUGDGMXVWPHQWVWRZRUOG
food consumption estimates for rice,
it said. Total food consumption of
cereals is currently put at 1.097 billion
tonnes, down 21 million tonnes from the
previous forecast, but still 1.1% higher
than the revised estimate for 2014-15.
It projects total feed utilization of
cereals at 904 million tonnes, 6.4
million higher than its previous forecast
and 1.8% above 2014-15 level.
Higher anticipated feed use in China,
Canada and the E.U. accounts for most
of the revision, it said. Total industrial
use of cereals (for the production of
ethanol, starch and brewing) is projected
to increase marginally from 2014-15 as
demand by the grain-based fuel ethanol
industry is predicted to remain almost
DWPRVWO\UHHFWLQJDVOXJJLVKJURZWK
in the maize intake in the United States.
By contrast, a strong demand for starch
is anticipated to boost the use of grains
for starch production, with most of the
increase concentrated in China.
The FAOs forecast for world cereal
ending stocks in 2016 is 638 million
tonnes, 5.4 million less than predicted in
September. It is 4 million tonnes down
34

2014-15* global grain supply-demand summary


(in million tonnes and hectares)
WHEAT
Supply 2014-15
Beginning stocks ..193.5 (+8.8%)
Production............725,2 (+1.4%)
Total Supply .......1078.4 (+2.6%)
Total Traded.............. 164.8 (-1%)

Demand 2014-15
FSI use** ............ 569.4 (+1%)
Feed use ........... 132.7 (+4.6%)
Total................. 702.1 (+1.2%)

Supply 2014-15
Beginning stocks 175.9 (+27.5%)
Production..........1007.4 (+1.6%)
Total Supply .......1305.0 (+4.1%)
Total Traded..........131.7 (+0.4%)

Demand 2014-15
FSI use** ......... 377.1 (+1.3%)
Feed use ........... 598.9 (+4.3%)
Total................. 976.0 (+3.3%)

Supply 2014-15
Beginning stocks ..62.7 (+11.7%)
Production..........319.3 (+12.7%)
Total Supply ............501.8 (+7%)
Total Traded........124.8 (+11.3%)

Demand 2014-15
Crush ............... 259.6 (+7.7%)
Other................ 39.6 (+15.7%)
Total................. 298.2 (+8.3%)

Supply 2014-15
Beginning stocks ... 107.3 (-2.9%)
Production...............478.5 (+1%)
Total Supply ............. 626.8 (-1%)
Total Traded............42.5 (+1.9%)

Demand 2014-15
All uses ............... 482.4 (+1%)

2014-15
Ending stocks.........211.3 (+9%)
Area harvested.... 223.3 (1.50%)

MAIZE
2014-15
Ending stocks....197.2 (+12.1%)
Area harvested..... 178.6 (-1.5%)

SOYBEANS
2014-15
Ending stocks.........78.7 (+25%)
Area harvested....117.8 (+4.2%)

RICE
2014-15
Ending stocks....... 101.8 (-5.1%)
Area harvested........ 160.1 (-1%)

* All totals estimated


** FSI = Food, Seed and Industrial
Source: U.S. Department of Agricultures Foreign Agriculutural Service, Washington, D.C.
( ) percentage change from 2013-14

on the FAOs revised opening levels.


The main revisions since the previous
report concern rice and coarse grains,
FAO said. Given record crop prospects
this year, world wheat inventories are
forecast to approach 206 million tonnes,
4 million tonnes more than anticipated
in September and 3 million tonnes above
2015. End-of-season coarse grain stocks
are projected at 267.6 million tonnes,
down marginally (1.6 million tonnes)
from their all-time high level in 2014. On
the other hand, with global production
expected to fall short of utilization,
world rice stocks are forecast to drop by
6 million tonnes to 164.3 million tonnes
in 2016, 5.3 million tonnes less than
foreseen last month.
According to FAO, world cereal trade
in 2015-16 is forecast at nearly 364
million tonnes, 3.3 million tonnes more

than the earlier estimate, but still 11


million tonnes or 2.9% below the 2014-15
record. Most of this seasons contraction
stems from sharp expected drops in
wheat and coarse grains shipments, while
trade in rice is anticipated to rebound in
2016, FAO said. Based on the latest
indications, international wheat trade
in 2015-16 (July/June) could reach 150
million tonnes, down almost 6 million
tonnes from 2014-15, as lower imports
by Morocco and several countries in Asia
are predicted to more than offset increased
imports by some other countries.
The FAO puts total coarse grains trade
at around 169 million tonnes in 2015-16
(July/June), down about 6 million tonnes
from the previous season, mostly on
lower expected imports by Mexico and
several Asian countries.
(Continued on page 38)

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

For more information, see Page 114.

FEATURE: CROPS LOWER, BUT SUPPLY SITUATION STILL COMFORTABLE

Grain exports and imports by major seaports


(in tonnes, calendar year 2014)

Canada 1

U.S. 1
1

Port of Houston
6,724,339 (NA)

Duluth, Minnesota
1,182,458 (-1.2%)

Portland, Oregon
3,944,892 (+23.8%)

Corpus Christi, Texas


3,692,527 (+36.3%)

Tacoma, Washington
6,848,327 (+96.5%)

South Louisiana
43,826,981 (+41.5%)

Longview, Washington
5,694,510 (+20.9%)

Brunswick, Georgia
906,616 (+5.3%)

Prince Rupert
6,447,017 (+25.5%)

Vancouver
19,617,621 (+21.9%)

Thunder Bay
7,942,794 (+23%)

Montreal
4,075,879 (+54.5%)

Hamilton
1,256,810 (+3.9%)

2
4

7 5
3

Paranagua
17,651,218 (+43.9%)

Santos
25,096,145 (-6.6%)

Map Legend
Exporting ports
Importing ports
1
Grain totals include any cereal grain, oilseed,
feedstuff or agrifood and may include any of the
following: wheat, maize, soybeans, rice, oats, barley,
rapeseed/canola or feedstuffs. Percentage designates
the increase or decrease in the ports grain traffic from
the previous year, if known.

2
1

San Martin/San Lorenzo


14,375,537 (-11.9%)

Rosario
6,100,401 (-32.7%)

Totals include wheat


3

36

Necochea/Quequen
3,917,245 (-18.1%)

Bahia Blanca
4,958,851 (-23.5%)

Zarate
1,256,780 (-21.5%)

1
2

1
5

Santos
1,429,091 (-7.6%)

3
4

Nueva Palmira
760,005 (+37.7%)

Montevideo
1,139,932 (+18.3%)

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

Rouen, France
7,146,938 (-2.1%)

Hamburg, Germany
3,270,000 (+7.5%)

Ghent, Belgium
1,490,238 (+8.6%)

Rostock, Germany
2,971,600 (+6.5%)

Hamburg, Germany
467,000 (-20%)

Novorossiysk, Russia
7,434,800 (+82.9%)

Antwerp, Belgium
584,211 (+68.2%)

10

Marseilles, France
800,675 (+13.7%)

Amsterdam, Netherlands
3,022,000 (NA)

Constanta, Romania
17,420,547 (+14.1%)

Rotterdam, Netherlands
8,570,000 (+8.5%)

Incheon
3,699,571 (NA)

Ulsan
988,928 (NA)

Rotterdam, Netherlands
625,000 (-3.8%)

Busan
1,333,720 (NA)

Antwerp, Belguim
376,545 (+4.7%)

Gunsan
2,460,273 (NA)

Pyungtaek
1,871,018 (NA)

Dalian
1,605,765 (NA)

Huangpu
7,973,115 (NA)

Qingdao
19,3622,330 (NA)

Xiamen
3,632,360 (NA)

5
2

Damietta
2,120,934 (-6%)

Alexandria
2,937,620 (+2.1%)

Nanjing
14,877,976 (NA)

Shenzhen
4,137,528 (NA)

5
1
2
4 3

Ningpo
1,403,161 (NA)

Tianjin
7,705,030 (NA)

Taichung
3,078,067 (-7%)

Kaohsiung
4,735,796 (+11%)

Giles
601,686 (-17.1%)

Kembla
1,210,000

Thevenard
400,371 (79.5%)

Esperance
2,166,070 (-14.3%)

10

Wallaroo
646,682 (-15.87%)

Geraldton5
1,867,380 (-19.3%)

11

Fremantle
4,686,000 (-7.6%)

12

Newcastle
419,079

Lincoln
1,770,434 (2%)

13

Melbourne
3,006,544 (9.8%)

Adelaide
2,086,264 (-16.4%)

Albany
2,681,766 (8.6%)

Mizushima
847,591 (-49%)

Kashima
3,857,447 (+5%)

Tokyo
639,076 (+7%)

Yokohama
995,782 (+14%)

Nagoya
2,798,879 (-6%)

Kinuura
1,354,588 (NA)

Kobe
3,277,137 (+62%)

Hakata
1,189,047 (NA)

10

Shibushi
2,417,388 (-1%)

4
2 7

Brisbane
1,333,629, (9.8%)

Tomakomai
1,828,123 (NA)

Shijiazhuang
2,220,359 (NA)

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

10

8 10

Shanghai
758,498 (NA)

1
11

1
4
9

5
3 11

10
6 8

2
12

7
13

Sources: World Grain extends many thanks to all of


the individual ports that supplied this data, as well
as each of the following agencies that helped gather
this information: U.S. Grains Council (Washington,
D.C., Beijing, Cairo and Seoul offices); U.S. Wheat
Associates; the Japan External Trade Organization
(JETRO), Chicago, Illinois, U.S. office.

37

FEATURE: CROPS LOWER, BUT SUPPLY SITUATION STILL COMFORTABLE

FAO has also cut its estimate for rice


production by 8 million tonnes to 493
PLOOLRQ PLOOHG EDVLV  UHHFWLQJ WKH
numerous setbacks endured since the
onset of the season and the diminishing
scope for recovering losses through
larger secondary crops as the season
advances.
7KHJXUHLVPLOOLRQWRQQHVGRZQ
on the estimate for 2014.
The FAO forecast rice trade in 2016
(January/December) at near 45 million
tonnes, 1 million tonnes, or 2.2%,
more than in 2015 and almost 3 million
more than it forecast a month earlier.
Besides reassessing trade availabilities
and requirements in light of more
pessimistic 2015 crop prospects, the
QHZJXUHVWDNHXQUHFRUGHGWUDGHRZV
into better consideration, it said.

2014-15* global grain supply-demand summary


(in million tonnes and hectares)
SORGHUM
Supply 2014-15
Beginning stocks ....5.7 (+21.2%)
Production..............63.6 (+4.4%)
Total Supply .........81.4 (+12.5%)
Total Traded..........12.1 (+59.2%)

Demand 2014-15
FSI use** ........... 33.9 (+4.9%)
Feed use ...............30.4 (+14.7)
Total................... 64.3 (+7.8%)

Supply 2014-15
Beginning stocks .....23.9 (+17%)
Production............. 140.8 (-2.5%)
Total Supply .........193.2 (+2.7%)
Total Traded.............29.2 (+21%)

Demand 2014-15
FSI use** .............. 45.2 (+2%)
Feed use ............. 94.8 (+8.2%)
Total......................140.0 (-1%)

Supply 2014-15
Beginning stocks .......7.6 (+52%)
Production.................. 71.9 (-1%)
Total Supply ...........93.7 (+1.5%)
Total Traded............. 14.5 (-2.6%)

Demand 2014-15
Crush .................... 68.2 (+2%)
Other.................. 3.4 (+21.2%)
Total................... 71.6 (+4.8%)

2014-15
Ending stocks......... 4.8 (-15.7%)
Area harvested......42.9 (+9.7%)

BARLEY
2014-15
Ending stocks............ 23.8 (-1%)
Area harvested....... 49.8 (-1.7%)

RAPESEED
2014-15
Ending stocks........... 7.5 (-1.3%)
Area harvested....... 35.9 (-1.1%)

* All totals estimated


** FSI = Food, Seed and Industrial
Source: U.S. Department of Agriculture's Foreign Agriculutural Service, Washington, D.C.
( ) percentage change from 2013-14

(Continued from page 34)


In its Grain Market Report issued on
Sept. 24, the IGC put total wheat and
coarse grains production at 1.996 billion
tonnes, down from the 2014-15 record of
2.017 billion tonnes.
The y/y (year-on-year) fall mainly
UHHFWV DQ DQWLFLSDWHG GURS IRU PDL]H
(corn), seen down by 38 million tonnes,
with the projection trimmed from before
by a further downgrading of the E.U.
crop, the IGC said.
It had raised its forecast for global
grains consumption by 1 million tonnes to
1.986 billion, slightly higher year on year,
mainly because of stronger demand for
feed wheat.
7LJKWHUVXSSOLHVRIPDL]HZLOOLQFUHDVH
interest in alternative feeds, and use of
wheat is seen at its second highest level
ever, including a jump in the E.U., the
IGC said. It predicted an end 2015-2016
total grains stock level of 456 million
tonnes, up 2% on the year and the highest
level for 29 years. At 313 million tonnes,
trade is forecast to remain high, but down
by 3% from the 2014-15 record, it said.
38

RICE
World production of rice in 2014-15
is estimated marginally higher year on
year, at a record of 479 million tonnes
(milled basis), the IGC said. Favorable
growing conditions boosted yields in
key countries, with the exception of
India, where both summer-sown and
winter-planted crops were smaller than
expected. Nevertheless, at 104.8 million
tonnes (106.7 million), output was still
DERYHWKHYH\HDUDYHUDJH
The IGC put Chinas production at
144.6 million tonnes, a 1% rise on the
year, with Thailands harvest put at 19
million tonnes, a fall of 6% owing to
a drought-affected off-season outturn.
For the following year, IGC predicts a
smaller crop. World rice production is
seen at 477 million tonnes, marginally
lower than in the previous year, owing
to lower area and yields on anticipated
below-average monsoon rains in Asia,
it said. The forecast is cut by 2.2
million tonnes, mostly due to long-grain
reductions in the U.S. and medium/short
grain revisions for Egypt.

SOYBEAN CROP OFF RECORD


LEVELS, BUT STILL HIGH
Soybean production is high, but just
off the record achieved last year.
With only marginal adjustments
from last months report, global soybean
output in 2015-16 is seen broadly
unchanged, at 317 million tonnes, a fall
of just 2% from the previous year and
the second largest outturn ever, the
,*&VDLG/DUJHO\UHHFWLQJH[SDQGHG
sowings in the worlds major producers
notably in South America the area for
harvesting is tentatively seen increasing
by nearly 1% y/y, to a new peak of 123
million hectares.
Rabobank again made the point about
likely U.S. farmer retention and its
potential to tighten the market, at least
temporarily.
On the other hand, the ongoing
lackluster U.S. export pace due to
WKHVWURQJ86GROODUDQGHUFHH[SRUW
competition from South America
are bearish market factors for CBOT
soybean futures, it said.
Chris Lyddon is World Grains European
correspondent. He may be contacted at:
[email protected].
We want to hear from you Send comments and
inquiries to [email protected]. For reprints of
WG articles, e-mail [email protected].

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

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FEATURE

SLOWING EMERGING
economies soften demand
S

lower growth in emerging markets will likely last for


the rest of the decade, thus limiting the rate at which
demand for agricultural products increases.
The commodity super-cycle is on the down swing, said
Erik Norland, senior economist and executive director, CME
Group, Chicago, Illinois, U.S., during the 10th Oilseed & Grain
Trade Summit this September in Minneapolis, Minnesota,
U.S. In the 1980s and 90s, low commodity prices discouraged additional production, making them ripe for a rally when
demand from China and other emerging markets outstripped
demand, he said.
From 2002-14, higher commodity prices encouraged the
development of new supplies, which are now encouraging
commodity prices to come crashing down, Norland said. This

Erik Norland, senior economist and executive director, CME Group, Chicago, Illinois, U.S., addresses the audience during the 10th Oilseed & Grain
Trade Summit. Photo courtesy of HighQuest Partners.
40

by Susan Reidy

Growth for commodities is shifting


to developed markets where the
potential is far less
is slowing growth in Latin America, the Middle East and
Russia, and creating instability.
Growth is shifting to developed economies, which, at best,
will mean a modest increase in commodity demand. Thats
because the potential in those economies is lower given their
stagnant population growth and existing high levels of per
capita calorie consumption, Norland said.
The greatest growth potential is in places with low current
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FEATURE: SLOWING EMERGING ECONOMIES SOFTEN DEMAND

for being optimistic about Africa, Latin


America, the Middle East, Russia or
China, he said.

Population growth
330
Africa

1990=100

280

230
India
World
Brazil
USA

180

130
China

2040

2035

2030

2025

2020

2015

2010

2005

2000

1995

1990

80

Germany
Japan

Source: US Census Bureau

Average daily calories per capita


4000
3800
USA
Germany

3600
3400

Brazil

3200
China

3000

World

2800

Japan

2600
India

2400
2200
2000
2010

2008

2006

2004

2002

2000

1998

1996

1994

1992

1990

Source: FAO STAT, National Geographic, What the World Eats, 2012

levels of per capital calorie consumption and high population growth, such
as India and Africa, he said. The least
potential is seen in nations with declining populations (China, Germany and
Japan) and relatively high levels of per
capita calorie consumption (the U.S.,
Brazil and Germany).
While conditions arent perfect in
42

India, the nation has great potential for


increased per capita calorie consumption
and population growth. It has the best
near-term potential for demand growth,
Norland said. Africas near-term outlook
is mixed to negative, and China is essentially tapped out as a growth market.
The case for being optimistic about
India is much stronger than the case

INDIA TAKING THE LEAD


While its demographics arent as
growth oriented as Africa, Indias calorie consumption is up from about 2,100
to 2,400 calories per person, Norland
said. If India could bring that consumption up to the world average, that
would mean 20% more consumption
per person for over 1 billion people.
Indias Gross Domestic Product (GDP),
at least on the surface, looks good.
7KHHFRQRP\LVJURZLQJRIFLDOO\
by 6% per year, but when you peak under the hood, things are not looking so
good, Norland said.
Mining is not really growing, agriculture is underperforming, manufacturing hasnt seen growth in the last
three years and construction is growing slower than the overall economy.
While the real economy isnt growing, Norland said there is increased
government spending, growth in
QDQFLDO VHUYLFHV DQG UHDO HVWDWH
transactions.
When that starts taking up a larger
share of the economy, that can be a bad
thing, he said. People are taking on too
much debt that one day theyre going to
QGWKHPVHOYHVXQDEOHWRSD\EDFN
%XWWKHJRRGQHZVLVLQDWLRQUDWHV
have come way down, spurring economic activity, and the Indian rupee
has come down in value, meaning
India is competitive on the export side.
Short term, India is the best hope
for economic growth, and increased
consumption of vegetable oil and other
agricultural products, Norland said.
In the long term, Africa holds the
greatest potential, he said. Average
calorie consumption is between 2,200
and 2,300 per day, and the population
is skyrocketing.
If Africa can grow its population
by 70% and come up to the world average in calorie consumption, it could
grow food consumption by 100% in
the next 25 years, Norland said.

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

FEATURE: SLOWING EMERGING ECONOMIES SOFTEN DEMAND

Africa is a region that rarely gets


discussed in terms of economics, partly because its 57 countries constitute
only 3.5% of the world economy.
But that economy has been growing
very quickly in the past decade, in part
because it has been sustained or encouraged to grow by very high commodity
prices, he said. Now that commodity
prices are dipping, the African economy is starting to look shaky.
In general, African economies are
based on resource extractions and
exports. Collapsing prices for such
things as copper, iron ore and other
metals, as well as lower energy prices, are bad for countries like South
Africa, Algeria, Nigeria and Angola.
In addition, currencies in the two largest countries havent fallen as far as
other emerging nations, which means
it likely has farther to go.
We have these short-term hiccups
that will make Africa not so promisLQJLQWKHQH[WWZRWRWKUHHPD\EHYH
years, depending on how long commodity price dips continue, Norland
said. But it will hopefully not diminish
Africas potential to grow in the 2020s
and 2030s. It is an area of massive potential growth in food consumption.

he said. Chinas calorie count went


from 2,500 to 3,000 from 1990 to 2011.
I think there are reasons to believe that
the calorie count will stop growing.
Chinas transformation to a middle
class country is starting to run out of
steam, he said. Urbanization has been
the driver for an increased standard
of living over the past quarter cen-

tury, and China is more than halfway


through its rural-urban transition. The
nation also has high levels of debt.
Private sector debt is very high
relative to GDP and is higher than any
comparable emerging market country, Norland said. The other problem
is overvalued currency. The 4% devaluation is just beginning of a much

CHINAS SLOWDOWN
China, which has captured the imagination of so many in terms of the potential to consume more food, is seeing
its population stagnate and begin to decline, he said. In fact, the nations demographics closely mirror those of Japan in
the 1990s, with an aging population.
Japan had been averaging 8%
growth, and dropped down to less
than 1% per year. Norland said he expects a similar scenario in China, but
to a less drastic degree. The nation
will come down from the current 10%
growth rate to 5.7% on average for the
rest of the decade, reaching a low of
3.5% during the 2020s. Japans calorie
count also dropped by about 300 calories per day as the population aged.
There is a lot of potential for China
to slowdown; thats a real big problem,
For more information, see Page 114.

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

43

FEATURE: SLOWING EMERGING ECONOMIES SOFTEN DEMAND

larger devaluation that has to happen.


China has excess investment, its too
reliant on exports, it has an overvalued
currency and too much debt. It looks
like Japan in the early 1990s. So the
idea that China is going to drive food
consumption is an idea that was valid

in Europe for the rest of the decade


will be boosted by lower oil prices,
since few nations in the region produce their own oil.
Having interest rates at zero along
with aggressive quantitative easing has
made it possible for debt-laden coun-

tural commodities, Norland said.


The U.S. dollar has been soaring,
which may hurt agricultural goods
when seen from a U.S. dollar perspective, he said. However, those prices
are not declining when seen from the
perspective of other currencies.
The Federal Reserve would like to
Short term, India is the best hope for economic
hike interest rates toward the core rate
RI LQDWLRQ EXW LW KDV EHHQ KHVLWDQW
growth, and increased consumption of vegetable
because of a potentially negative reacoil and other agricultural products.
WLRQ IURP QDQFLDO PDUNHWV $ VWURQJ
growth in total labor income will even Erik Norland, senior economist, CME Group
tually give the Federal Reserve the
during the 1990s, valid during the last WULHVVXFKDV,WDO\DQG6SDLQWRQDQFH courage necessary to begin tightening
decade, and valid to some extent for the themselves and return to growth. A policy. Unless oil prices collapse furODVWIRXUWRYH\HDUV%XW,WKLQNLWVWRSV weaker euro is making Europe more WKHULQDWLRQVKRXOGPRYHEDFNDERYH
being valid going forward.
competitive, but it will probably need 1% by early next year. The potential for
to weaken further, he said.
commodity growth in the U.S. appears
E.U., U.S. HOLD STEADY
Europes population and diets are limited, Norland said.
The E.U. is looking at increased sta- mature, so it probably wont respond
We want to hear from you Send comments and
bility now that the drama in Greece to economic growth by consuming inquiries
to [email protected]. For reprints of
has played out, Norland said. Growth more vegetable oil and other agriculWG articles, e-mail [email protected].

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

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FEATURE

SURVIVING
CASTROS
REVOLUTION
A

s a young child during Fidel Castros Cuban revolution, Alina Fernndez endured the loss of family, food
and even her favorite television programs. Eventually
VKHZRXOGORVHKHUFRXQWU\HHLQJWKHLVODQGDQGKHUIDWKHU
Castro, in 1993 disguised as a Spanish tourist.
During the 10th Oilseed & Grain Trade Summit in
Minneapolis, Minnesota, U.S. in September, Fernndez relayed
her experiences growing up in Cuba, how she left, and what
she saw when she returned 20 years later. Fernndez relayed
personal anecdotes, and often used humor to lighten a very serious and frank discussion. She returned to Cuba in 2014 to visit
her mother, Natalia Revuelta Clews, who was seriously injured
in a fall. Surprisingly, Fernndez said she saw some changes.
The Cuba I found after 20 years has the will to change.
Small changes, but changes nevertheless, are starting to
show, she said. The younger generation that will soon take
over is going to be far away from the ideology that Castro led;
it wants to walk into the 21st century.
Downtown Havana, the capital of Cuba. Photo by Adobe Stock.
46

by Susan Reidy

Speaking at grain trade summit,


dictators daughter shares her
experience growing up, leaving
SMALL CHANGES
Fernndez noted that now there are small enterprises and
local entrepreneurs, which wasnt possible for decades. It also
wasnt possible to sell your own house, because it never belonged to you, she said.
You couldnt purchase a car or a cell phone, or get a
room in a hotel because hotels were forbidden for Cubans,
Fernndez said.
Farmers can now set their own prices and sell their products
in farmer markets, she said. Even with these small changes,
November 2015 / World Grain / www.World-Grain.com

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FEATURE: SURVIVING CASTROS REVOLUTION

ple would come to her with their problems and pleas, hoping she could speak
with Castro, the man that had absolute
power over their lives, on their behalf.
It is hard to go to school when there
is a line of people in front of your house;
its even worse when there is nothing
you can do to help, she said. You must
be desperate if you approach a child and
expect them to help.
THE REVOLUTION
Fernndez said she remembers clearly the day in 1959 when her American
television programs were interrupted
(and they never came back) by hairy
PHQFDOOHGWKHUHEHOV%DWLVWDKDGHG
the country the night before, and Castro
FDPHWR+DYDQDWRJLYHKLVUVWVSHHFK
Alina Fernandez, daughter of Cuban dictator Fidel Castro, shared her experiences in the island nation
which lasted for seven hours.
th
during the 10 Oilseed & Grain Trade Summit. Photo courtesy of HighQuest.
People interrupted him to applaud
there is still plenty of room for improve- derground organization, the Movement, and celebrate him. He was charismatic
ment, Fernndez said, noting that pro- which eventually overthrew Dictator and mesmerizing, Fernndez said.
duction is still run by the government.
Fulgencio Batista. She helped Castro Life was so hectic at the beginning of
Cubas economy is in desperate need QGVSDFHIRUPHHWLQJVDQGDFWLYLWLHVWR the revolution; almost everyone agreed
for a stimulus incentive to compete in organize the resistance and eventually to the revolutionary innovations.
the modern world and to provide for store weapons.
One popular change was education,
the needs of its population, she said.
On the morning in 1953 that Castro at- with a program to bring young women
Fernndez said she has great expecta- tacked the militarys Moncada Barracks, from the farms to Havana for education.
tions for her country from efforts with Fernndez said her mother was in charge They went back to the countryside to
the U.S. to restore diplomatic relations of distributing the political manifest. teach others, and became some of the
and ease trade and travel restrictions The attack is widely accepted as the be- best political messengers for the new
(See related article on page 60).
ginning of Castros Revolution.
regime, Fernndez said.
/HWVKRSHERWKFRXQWULHVQGDFRPMany men died on both sides,
Castro also transformed agriculture,
mon good to better serve the interests of Fernndez said, and Castro escaped to breaking up land holdings of more than
the people, she said. After all, Cubans the mountains but soon landed in jail. 1,000 acres and disallowing foreign
have been the victims of political fail- Fernndez said her mother started writ- ownership.
ures; its time for a change.
ing to Castro in jail, and believes that is
The new laws and ideas were very
when the two fell in love.
popular. Fidels reasons for such radiDAUGHTER OF A DICTATOR
After heavy correspondence, in cal measures were understood by the
Fernndez learned she was Castros which their love became stronger, they population, Fernndez said. He would
daughter at the age of 10, which she met secretly, they conceived a child, and explain in six- to nine-hour speeches
said came as no surprise, given the fre- now I can take a bow, she said.
that he used to make almost daily. Cuba
quent nightly visits from the dictator.
For decades, even before leaving needed to diversify production, and
Revuelta, who was married to Orlando Cuba, Fernndez was a critic of Castro Cuba needed a better plan to satisfy the
Fernandez, had an affair with Castro, and his regime. When it came time to be growing needs of the population. He
who at the time was married to Mirta recognized legally as a formal descen- was able to explain that to the people.
Diaz-Balart. Fernndez described her dent of Castro, Fernndez said she deTo reinvent agribusiness, Castro
mother as the toast of Havana, with nied such an honor.
created the National institute for
D H[LEOH GDQFHUV ERG\ ORQJ KDLU DQG
I pretended to lead a normal life, but Agricultural Reform, which Fernndez
KRXUJODVV JXUH ZKR FRXOG KDYH DQ\ its a circumstance from which you can- said was the beginning of many, many
man she wanted.
not escape, she said.
mistakes that led to the very critical
Revuelta supported Castro and his unEven though she was just a child, peo- shortage of food on the island. The new
48

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

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FEATURE: SURVIVING CASTROS REVOLUTION

community farms were forced to sell to


the state whatever they grew, and it was
forbidden for farmers to sell to individuals, she said.
Storage, transportation and distribution of goods belonged to the state, and
WKH V\VWHP ZDV LQHIIHFWLYH DQG LQHIcient, leading to food rotting at the side
of the roads, Fernndez said. Citizens
were given rationing booklets and assigned to stores in their neighborhoods.
It was never enough, she said,

was never the kind of father who would


[WKHFDURUKHOSZLWKKRPHZRUN
He would jump from the television
screen to the living room just like that,
she said. He was overwhelming, he
was everywhere at the same time.
Not long after Batista was ousted,
Castro was back on television saying
some of the military were considered
WUDLWRUV WR WKH UHYROXWLRQ DQG ZHUH H[HFXWHG 7KH H[HFXWLRQV ZHUH WRR PXFK
for many Cubans, and thousands of chil-

SOHWHO\ H[HFXWHG DQ\ SRWHQWLDO HQHP\ RI


the revolution, made a deal with Russia
for its unconditional support, established
hate for America on an international level
and almost started a nuclear confrontation.
The revolution in Cuba changed society in very dramatic ways. Everything
inherited from Batista was to be restructured, Fernndez said.

LEAVING THE ISLAND


Eventually, Fernndez married and in
1977, had a daughter. She publicly joined
Things are starting to change. Sometimes I wonder if
the dissident movement in 1989, which
they know how to do it, but they have the will.
didnt make life any easier. With the fall
of the Soviet Union in the 1990s, Cuba
Alina Fernandez
became an even harder place to live, she
which is why the black market thrived dren left the nation in what came to be said. The economy was ruined, schools
in the nation.
known as Operation Peter Pan.
FORVHGDQGIRRGZDVLPSRVVLEOHWRQG
Committees were formed for defense
Orlando Fernndez, who Alina :LWK WKH QDQFLDO KHOS RI SHUVRQDO
of the revolution and watched every Fernndez thought at the time was her friends in America, Fernndez was able
household, farmer and neighborhood, IDWKHU HG WKH FRXQWU\ ZLWK KLV RWKHU to escape Cuba along with her daughter.
Fernndez said.
daughter. Fernndez said she was told
Fernndez is hopeful that the small
7KHUVWWZR\HDUVRIWKHUHYROXWLRQ repeatedly how her father and sister changes she saw in her return visit 20
were full of systems aiming to control were traitors and worms.
years later will eventually lead to a difpeople, the economy and everything in
Priests and nuns were sent back to ferent way of life and a different society.
the most absolute way, she said.
Spain and churches closed down. Soon
Things are starting to change. someIn her own home, Castro became a suppression of freedom of the press, times I wonder if they know how to do
nightly visitor, and became the only VSHHFKDQGH[SUHVVLRQIROORZHGVKHVDLG it, but they have the will, she said.
man in a family of matriarchs. Castro
In just one year, Castro made himself
We want to hear from you Send comments and
made her mother joyful, but Fernndezs chief of the army, made the president re- inquiries to [email protected]. For reprints of
WG articles, e-mail [email protected].
grandmother called him the devil. He sign, changed the law of the land com-

For more information, see Page 114.

50

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

For more information, see Page 114.

FEATURE

TIME TO IMPLEMENT
LOW-PRICE STRATEGY
G
rain prices are under pressure in a well supplied
market again in 2015-16 and producers need to
make sure theyre keeping costs down, delegates
were told at the recent conference of the U.K. Agricultural
and Horticultural Development Boards (AHDB) Cereals
and Oilseeds division, the organization formerly known as
the Home Grown Cereals Authority.
It comes after what has been a truly fascinating growing
season, said AHDB Cereals and Oilseeds chairman Paul
Temple. Now we have the process of physically marketing
this crop. We have had now three seasons of good global
grain crops that have put prices back to the levels of 2009.
Jack Watts, AHDB Cereals and Oilseeds lead analyst,
looked at the effect of a series of large grain crops. We
have seen some pretty big crops in recent years, he said.

Delegates listen to a speaker discuss the outlook for the global grain and
oilseed markets on Oct. 15 at the AHDB Conference in London, England.
Photos by Chris Lyddon.
52

by Chris Lyddon

String of bumper global harvests


have dropped grain prices to their
lowest levels in years

We have seen another good year, not a record year. You can
really see the impact of those fundamentals on the prices.
The impact of that on arable margins is going to be marked.
This part of the commodity cycle is a signal for arable
businesses to implement their low-price strategies. Low
prices shouldnt come as a surprise to anyone.
He explained how an abundance of exportable wheat has
forced prices to consolidate on to the maize base. A year ago
wheat was a very interesting market, he said. Polarizing
November 2015 / World Grain / www.World-Grain.com

For more information, see Page 114.

FEATURE: TIME TO IMPLEMENT LOW-PRICE STRATEGY

forces gave us a huge range. This year prices have


consolidated and its much easier to generalize.
He described it as another big year of record wheat
production and a big crop that kept getting bigger.
Demand has crept up.
I expect the market to turn a surplus for the third
year in a row. In general terms, there is a global
abundance of wheat, Watts said.
The E.U. is expected to be the worlds biggest
exporter again, he said.
The E.U. has a huge responsibility in terms of
global food security, Watts said. The U.S. is going
to be a victim of currency when it comes to wheat
this year. Hard red winter is the problem child for
U.S. wheat. I wouldnt be surprised to see U.S.
wheat stocks creeping higher.
He highlighted India and the potential reduction
in stocks there, following a crop affected by a lack
of moisture. We start to see India pick up some
imports, he said. India will begin to import its way
out of this issue.
The effect of the Russian export tax, a mechanism
put in place to protect the Russian wheat market

Jack Watts, AHDB Cereals and Oilseeds lead analyst.

For more information, see Page 114.

54

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

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FEATURE: TIME TO IMPLEMENT LOW-PRICE STRATEGY

from currency weakness, depends on


the world price, Watts said.
The concern is that the weak
currencies are going to drive the
domestic prices, he said.
Currently, the tax is having a limited
impact. At higher world prices you
get a bigger implication from Russias
export tax, he said.
El Nio is an issue for Australia.
Im sorry if you are waiting on a
bullish run on the back of a decimated

and demand, he said. Its becoming


less of a commodity feed grain; more
of a niche, specialty feed grain.
He also pointed out how farmers
in the United States, looking for
drought-tolerant crops, are growing
more sorghum which will compete
with barley.
BRITISH MARKET IMPACTED BY MAIZE
Maize is having a direct impact on the
U.K. grain situation, Watts said, noting

Im sorry if you are waiting on a bullish run on the


back of a decimaed Australian wheat crop.
I dont think its going to happen.
Jack Watts, AHDB lead grains and oilseeds analyst
Australian wheat crop, he said. I dont
think it is going to happen. I cannot see
it falling below 20 million tonnes.
In the E.U., a large French crop was
offset by lower crops in Germany and
Poland.
In the last four years, Europe has
impressed forecasters, he said. It is
now issued that Europe will have a
good export pace.
He looked at French supply and
demand, with a crop of over 40 million
WRQQHV,WLVKDYLQJWRQGPRUHIHHG
demand, he said, although he noted
the French have a better quality crop
than in the previous year.
Maize is something that we cant
ignore, he said. It is best described
as a dormant volcano.
Long-term growth in maize
production has been phenomenal, he
VDLG ,W LV GZDUQJ HYHU\ RWKHU FURS
He said there is some risk, partly
because there are so few global
producer exporters.
The message in this is not to get
complacent on feed grain prices, Watts
said.
He added that Europe has had a
lucky escape with maize being able
to run down stocks to make up for a
production shortfall.
We know barley is not going to
break any records in terms of supply
56

Barley exports, I think, are a bit


of a success story for the U.K. I dont
think we will avoid a stock build-up,
but barley is in a much better position
than wheat. The context of oats as a
break crop with the demise of rapeseed
economics will be one to watch.
We are, from a sellers point
of view, on the ugly side of the
commodity cycle. If the last 10 years
havent convinced you that price risk
management is an essential part of
grain production, nothing will. I wish
you the best of luck.
Julian McGill of LMC international
discussed the outlook for oilseeds.
These markets have been transformed by biofuels policy, he said.
The fundamental cause today of weak
prices is the weak crude price and the
lack of any push from biofuel policy.
With high prices we have seen a huge
growth in terms of area, he said, referring to the period since 2002. People,

that the U.K. was importing maize at a


time when there was an abundance of
wheat.
It emphasizes the competitiveness of
maize, he said. What yield is having
to do is compensate for the fact that
there is a decreasing opportunity to
grow wheat in the U.K. arable rotation.
The challenge is huge, he said of
the U.K. surplus. The carry is the key
incentive increasing long-term storage
of crops. Traditionally, we relied on
intervention to provide this balancing.
In years with a good quality crop, he
stressed the need to pay attention to the
GLIIHUHQFH EHWZHHQ IXOO VSHFLFDWLRQ
and low-grade milling wheat prices.
This is going to fuel the debate on what
the customer requirement is, he said.
He also highlighted the shift in
varieties as new high yielding milling
varieties have become available.
This market is not a one-variety
wonder, he said.
In the past, high yields have
encouraged farmers to focus on a lowquality feed wheat, seen as low risk.
That yield gap is being challenged
by three varieties, he said. The result
likely would be that these varieties will
be grown as dual-purpose varieties. It
makes the crop more mobile and more
marketable. It is giving the whole market Dominic Watkins, partner and head of food
PRUHH[LELOLW\DQGPRUHDELOLW\WRDGDSW group at lawyers DWF.

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

FEATURE: TIME TO IMPLEMENT LOW-PRICE STRATEGY

as they get richer, are not consuming


more cereals.
In Europe, rapeseed is becoming
less attractive as a crop compared
to wheat and coming up against
agronomic constraints.
People have cut back on production,
he said. Markets are adjusting. They
are seeing the problems of vegetable
oil. The crude oil price is weak, but
the palm oil price is holding up better
than one would have hoped and that is
giving some support to other crops.
Dominic Watkins, partner and
head of food group at lawyers DWF,
explained the potential impact of the
Transatlantic Trade and Investment
Partnership (TTIP) currently being
negotiated between the E.U. and U.S.
and likely to have an effect on how
foods are marketed in both places.
It is a vast topic, he said. We have
had lots of change in the food regulation

Solutions for
the worlds most
important business

area over the last decade. Pretty well every area that could be touched has been
touched.
The plan has proven to be
controversial. Only last week 300,000
people in Germany demonstrated
against it, he said. There is a lot of
anti-TTIP feeling out there. TTIP is not
the only game in town. It is not the only
bilateral or trilateral trade agreement
the E.U. has. Its been going on for the
last two years, this negotiation process.
There is quite a large degree of political
oversight. It has still got quite a lot of
negativity to overcome.
In the absence of actual information,
we have ended up with lots of myths.
It is supposed to ensure the safety
standards are maintained. If you have
got an issue with food labeling who
is to say which one is better? There is
a vacuum in which it is easy to be a
scaremonger.

He highlighted differences in claims


that could be made between the E.U. in
the U.S. For example, in the U.S. its
possible to say that eating vegetables
might reduce the risk of cancer. In the
E.U., you cannot.
Theres an entire chapter dedicated
to food safety, he said. It is building
on what we already have now. It is
interesting to see that in recent months
the U.S. stance on GM has shifted. There
is an attempt to have greater labeling.
He also noted how many E.U. member states are opting out of growing
G.M. crops.
It is interesting to see which way the
tide is moving on this, he said.
Chris Lyddon is World Grains European editor.
He may be contacted at: chris.lyddon@ntlworld.
We want to hear from you Send comments and
inquiries to [email protected]. For reprints of
WG articles, e-mail [email protected].

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

57

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and our quality.
The roller mill Antares is known for outstanding grinding performance, top sanitation and a reliable operation. Antares
Plus combines those advantages and offers a plus in yield while maximizing flour quality and reducing energy consumption at the same time. www.buhlergroup.com/milling

Four- and eight-roller


mill Antares Plus.
Consistent our quality
An integrated sensor measures the
particle size distribution and corrects
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ensures a sustainable high product
quality.
Increased yield
The grinding results remain constant
regardless of operator skills and raw
material. The continuous measurement
ensures a higher our yield.
Reduced energy consumption
Antares Plus allows a perfectly tuned
grinding with a minimal number of
pneumatic lifts. Energy consumption
and our quality are within an optimal
range.

Innovations for a better world.

Antares puts the plus in sensor technology.


The Antares Plus roller mill optimizes yield and our quality
thanks to additional sensors.
The Antares roller mill stands for perfect grinding,
the highest standard of sanitation and consistently
reliable operation. The further development of the
Antares Plus brings together all these benets
and offers an advantage for yield, with maximum
our quality and reduced energy consumption,
thanks to new sensor technology.

sured actual value with the target value. The Antares


Plus control system records the deviations and automatically adjusts the grinding gap to the target value.
The result: consistent quality with minimized use of
energy. The sensor-controlled grinding gap adjustment automates this former manual procedure and
enables millers to invest more time in their core tasks.

Bhler AG in Uzwil, Switzerland has been manufacturing


rolls since 1860. Company founder, Adolf Bhler, took
then the revolutionary principle of the roller mill and began
industrial production. 155 years later the roller mill still
forms the core element of any grain mill. In the roller mill,
cleaned cereal grains and these could be wheat, durum,
corn, rye, barley or malt are processed into the nest
ours.

Temperature monitoring
In the new Antares Plus roller mill, the modern sensor
technology not only checks the particle size but also
the temperatures of the rollers and roller bearings.
Where contact pressure is too high, there is winding
or dry running, the rollers increasingly heat up. This
can be prevented by constant temperature monitoring of the roller surfaces. Ongoing checking of the
roller temperature ensures consistent product quality,
particularly where there are few operators. Thanks to
the temperature sensors in the roller bearings, wear
and tear on the bearing or lack of grease is picked up
early. Preventive monitoring of the temperature of the
rollers and roller bearings thereby ensures maximum
operational safety and high nal product quality.

Antares success story


The Antares roller mill is the agship of the extensive
Bhler roller mill portfolio. It combines 155 years of Bhler
experience with the latest knowledge in terms of grinding
and hygiene, and it is the worldwide reference for modern
roller mills in the milling industry. Since the launch in 2008,
more than 3,000 Antares top-of-the-range roller mills have
already been sold. The market success of Antares is due
to its robustness, even feed and grinding and the highest
standards of sanitation thanks to the use of stainless steel
and sophisticated insulation.
A plus thanks to sensor technology
With the Plus version, Bhler opens a new chapter in the
success story of Antares. The new Antares Plus roller mill
ensures perfectly coordinated grinding with minimal pneumatic elevations. Energy consumption and our quality are
in the optimal range. Antares Plus is tted with an automatic grinding gap adjustment and the PSM Online MYTA
particle size measuring device as standard. Temperature
monitoring of the rollers and bearings also ensure maximum operating safety and high production uptime.
PSM Online MYTA continuously measures the particle size
distribution in the ground product and compares the mea-

The optimal combination for the roller oor


The new Antares Plus roller mill provides the best effect on break passages and the head reduction, but
can also be used for other passage types based on
customer requirements. Combined with the conventional Antares roller mill, it forms an ideal combination
on the roller oor of any mill.
With Antares Plus, Bhler is taking another step on
the path towards the automatic mill.

The author of this article is:


Michael Tremp
Product Manager Grain Milling at Bhler AG, Uzwil, Switzerland
E-mail: [email protected]

For more information, see Page 114.

FEATURE

Easing trade restrictions


S
ince December 2014, when the U.S. and Cuba announced the intention to restore diplomatic ties for the
UVWWLPHLQPRUHWKDQ\HDUVWKH86KDVWDNHQVWHSV
to ease restrictions on trade, remittances and travel to Cuba.
The actions have generated a wave of enthusiasm about the
economic opportunities that a more normal relationship between the two countries could create.
$ UHSRUW UHOHDVHG LQ -XQH E\ WKH 86 'HSDUWPHQW RI
Agricultures Economic Research Service (ERS) examines
the potential impacts of more commercial ties between the
two countries on bilateral agricultural trade.
The report, titled U.S.-Cuba Agricultural Trade: Past,
Present and Possible Future, said a more normal trade relationship would lead to an increase in U.S. agricultural exports
to Cuba through several channels. First, U.S. exporters would
EHDOORZHGWRH[WHQGFUHGLWWRWKHLU&XEDQEX\HUVHQKDQFLQJ
U.S. competitiveness. Second, the U.S. would export a broadHUUDQJHRIDJULFXOWXUDOSURGXFWVSURGXFWVFXUUHQWO\SURYLG
HGE\RWKHUFRXQWULHV7KLUGWRWKHH[WHQWWKDWUHOD[DWLRQRI
economic restrictions on Cuba spurs economic growth there,
GHPDQG IRU 86 DJULFXOWXUDO SURGXFWV LV OLNHO\ WR JURZ LQ
FOXGLQJ IRU KLJKHUYDOXH FRPPRGLWLHV OLNH PHDW DQG GDLU\
products, and for commodities traded during the 2000s but
QRWUHFHQWO\VXFKDVZKHDWULFHDQGGULHGEHDQV
60

by Arvin Donley

The U.S. and Cuba are attempting to


restore normal economic relations,
which may lead to more bilateral
agricultural trade

TRADING HISTORY
3ULRUWRWKH&XEDQ5HYROXWLRQRIELODWHUDODJULFXOWXUDO
trade featured large volumes of sugar and smaller volumes
of tobacco and pineapple from Cuba, and rice, dried beans,
ZKHDW DQG ZKHDW RXU IURP WKH 86 %XW DIWHU WKH UHYROX
WLRQ 86&XED UHODWLRQV TXLFNO\ GHWHULRUDWHG ZKHQ &XEDV
QHZ JRYHUQPHQW WRRN SRZHU &XED H[SURSULDWHG 86 HFR
nomic assets, including farms and sugar mills, as part of its
HIIRUWVWRLQVWLWXWHDVRFLDOLVWHFRQRPLFV\VWHPDQGWKH86
LPSRVHG HFRQRPLF VDQFWLRQV DJDLQVW &XED DQG EURNH GLSOR
PDWLF UHODWLRQV 7KDW LV HVVHQWLDOO\ ZKHUH WKLQJV VWRRG XQWLO
October 2000, when the Trade Sanctions Reform and Export
Enhancement Act (TRSA), which authorized certain sales
November 2015 / World Grain / www.World-Grain.com

For more information, see Page 114.

FEATURE: EASING TRADE RESTRICTIONS

of food, medicines and medical equipment to a number of countries, including


Cuba, was signed into law.
TRSAs exemptions to the embargo quickly led to the reestablishment
of U.S. agricultural exports to Cuba.
However, TRSA does not include a legal
framework for the resumption of U.S.
agricultural imports from Cuba.
The ERS report said U.S. agricultural
exports to Cuba averaged $365 million per year from 2012-14. Exports are
heavily concentrated in four basic commodities, with chicken meat, corn, soybean meal and soybeans accounting for
84% of total exports during that period
in terms of value. Corn, soybean meal
and soybeans are all feedstuffs used in
livestock production in Cuba. In some
years during the TRSA period, U.S. agricultural exports to Cuba have included
substantial quantities of rice, wheat,
pork, dried beans and soybean oil. But

U.S. restrictions on extending credit to


Cuban buyers have made it harder for
U.S. agricultural exporters to sell a larger volume and broader variety of commodities to Cuba, the report said.
From 2012-14, the U.S. was the second leading supplier of agricultural
imports to Cuba behind the European
Union ($383 million), while Brazil was
third ($348 million). Those three trade
partners supplied 61% of Cubas agricultural imports during that three-year
period, the report said.
The report noted that a major inhibitor
of U.S. agricultural exports to Cuba is
the TRSAs restrictions on the terms of
SD\PHQWDQGQDQFLQJ756$VSHFLHV
WKDWWKHRQO\SD\PHQWRUQDQFLQJWHUPV
that U.S. persons may provide for agricultural exports to Cuba are payment of
FDVK LQ DGYDQFH RU QDQFLQJ E\ WKLUG
FRXQWU\QDQFLDOLQVWLWXWLRQV
The U.S. prohibition on extending

credit to Cubas agricultural importers


continues to hamper efforts to export agricultural products to Cuba, it said. From
2005-07, the U.S. exported an average of
124,000 tonnes of rice, 275,000 tonnes
of wheat, and 33,000 tonnes of soybean
oil to Cuba. From 2012-14, however, it
noted that the U.S. exported hardly any
rice, wheat or soybean oil, even though
Cuba purchased many thousands of
tonnes of these products from Brazil and
European countries.
CUBAS RICE SITUATION
&XEDVGLYHUVLFDWLRQDZD\IURP86
rice imports represents a loss of lucrative export opportunity for U.S. rice
growers, since Cuba has the highest per
capita rice consumption of any country in the western hemisphere. Annual
capita rice supply (milled equivalent) is
about 61 kilograms in Cuba, compared
with 7 kilograms in the U.S., accord-

For more information, see Page 114.

62

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

For more information, see Page 114.

FEATURE: EASING TRADE RESTRICTIONS

ing to the Food and Agriculture Organization of the United


Nations.
Cuba imports about half of its annual rice consumption,
with rice imports averaging about 435,000 tonnes per year
from 2010-14. Vietnam supplies 70% or more of Cubas rice
imports, while Brazil supplies most of the remainder, the report said.
In 2013-14, Cuba produced 423,000 tonnes of rice (milled
basis), nearly unchanged from the previous year but up 18%
from 2000-01. Cuba plants two rice crops a year. The main
crop is planted in April-July and harvested August-December.
The second crop is planted in December-February and harvested in March-June.
Since 2009-10, rice area has averaged 203,000 hectares per
year, up from an average of 144,000 hectares during the preYLRXVYH\HDUV7KH(56UHSRUWVDLGWKH&XEDQJRYHUQPHQW
wants to boost domestic rice production and reduce imports,
especially after the 2007-08 price spike and export bans by
some rice exporting countries, and has received technical assistance dedicated to the rice sector from several rice producing countries including Brazil, Japan and Vietnam.
With establishment of a more normal trading relationship,
the U.S. rice industry might be able to regain a large share of

Cuba's agricultural import categories (2012-2014)

Nonfat dried
milk
10%
Chicken meat
11%

Other products
35%

Wheat
13%

Soybean oil
5%
Soybeans
4%

Rice
10%

Corn
12%

Source: Export data of various national governments,


as cited by Global Trade Information Services (2015).

For more information, see Page 114.

64

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

For more information, see Page 114.

FEATURE: EASING TRADE RESTRICTIONS

While these efforts alone do not ensure


increased agricultural trade between
800
the two countries, they portend a more
favorable economic and policy envi685
700
ronment for bilateral agricultural trade
over the medium and long term, the re600
port said.
525
The second element is the relaxation
500
of
some U.S. restrictions on traveling
459
431
to Cuba. The loosening of travel re384
strictions could have a small, positive
400
350
349 353
346
impact on U.S. agricultural exports to
321
286
Cuba by making it easier for people
300
248
pursuing authorized export transactions to travel there, the ERS noted.
200
Increased travel involving private
140
foundations, research or educational
100
institutions, and the dissemination of
5
information might not immediately re0
sult in more U.S. agricultural sales to
2001 02
03 04 05
06
07
08 09
10 11 12
13 14
Cuba, but could strengthen Cuban ties
Calendar year
with the U.S. agribusiness and academSource: USDA/FAS
ic sectors, which could help the further
development of production agriculture
Cubas import market, but only if U.S. includes the application of MFN tariffs in Cuba, the report said.
suppliers are able to provide competitive to any imports originating in the other
The third element consists of additionterms of credit, the report said. It said country.
al exemptions to the embargo on U.S.
several factors favor U.S. rice suppliers
While the executive actions modify exports to Cuba. New items authorized
in the Cuban market. First, it is a consis- WKH SD\PHQW DQG QDQFLDO UHVWULFWLRQV for export include certain building matent year-round supplier of high quality governing U.S. exports to Cuba and terials for private residential construcrice. Second, the U.S. enjoys a distinct provide for additional exemptions to tions, goods for use by entrepreneurs in
transportation advantage over Cubas the U.S. economic embargo, they pro- the Cuban private sector, and tools and
current rice suppliers, with export time vide no opportunities for U.S. agricul- equipment for private-sector agriculturbeing only two days compared to as tural imports from Cuba, except for the al activity. The ERS said these new exmany as 30 days from Asia. However, small purchases that licensed travelers emptions could also stimulate additional
the report notes that this advantage is to Cuba are allowed to bring home, the agricultural trade between Cuba and the
offset to a degree by the higher price of report said.
U.S. For instance, small-scale poultry
U.S. rice. Third, the U.S. has the potenThe ERS said the new U.S. approach producers who import farm equipment
tial to export rough rice to Cuba, which to Cuba contains several key elements may increase their feedstuff imports
could be fully milled there. The fourth that have the potential to affect U.S.- from the U.S.
DQGQDOIDFWRULVLI&XEDRSHQVXSIXU Cuba agricultural trade, albeit in small
The fourth element is the further relaxther as a tourist destination, demand for ways. Several of these elements are in- ation of U.S. restrictions on remittances
high-quality rice would increase, sup- tended to remove outright obstacles in to Cuba. Remittances are transfers of
porting increased U.S. sales.
bilateral trade, others are designed to money sent by a migrant or immigrant
reduce transaction costs, and still others to people in his or her country of origin.
U.S.-CUBA POSSIBLE FUTURE
aim at fostering greater growth in the Increased remittances to Cuba could
The report said the executive actions Cuban economy.
increase consumer budgets, thereby
announced in December 2014 by the
7KHUVWHOHPHQWLVWKHHIIRUWWRUHHV enabling additional foreign agricultural
U.S. were a small step toward estab- tablish diplomatic relations with Cuba. sales to Cuba. Also, some remittances
lishing normal trade relations (NTR), In January 2015, a U.S. delegation met could be used to invest in agricultural
formerly referred to as most-favored- ZLWK &XEDQ RIFLDOV WR GLVFXVV D ZLGH production or retail establishments, the
nation (MFN) status, between the two range of issues and several subsequent ERS said.
countries. For agricultural trade, NTR rounds of meetings have been held.
7KH IWK HOHPHQW LV D VHW RI SROLF\
Millions of dollars

U.S. agricultural exports to Cuba (2012-2014)

66

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

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FEATURE: EASING TRADE RESTRICTIONS

changes intended to facilitate authorized transactions between the U.S.


DQG &XED 7KH UHJXODWRU\ GHQLWLRQ
of the statutory term cash in advance was revised to specify that it
means cash before transfer of title.
This regulatory change addresses the
FRQFHUQ WKDW WKH UHYLVHG GHQLWLRQ RI
the term issued in February 2005 adversely affected U.S. agricultural exports to Cuba. The U.S. Department
of Treasurys interpretation in 2005
required that cash payments be made
before the goods left a U.S. port,
whereas the revised interpretation
PRUH UHHFWLYH RI QRUPDO FDVKLQDGvance arrangements. In addition, U.S.
institutions will now be permitted to
open correspondent accounts at Cuban
QDQFLDO LQVWLWXWLRQV WR IDFLOLWDWH WKH
processing of authorized transactions,
and U.S. credit and debit cards will be
permitted for use by travelers to Cuba.

These changes will lower the transaction costs for U.S. exports by reducing
the liquidity constraint of the payment
method and opening new avenues for
FDVKRZVWKHUHE\LQFUHDVLQJWKHRSportunities for trade, the ERS said.
The sixth element of concern is the
intention of the U.S. government to assist with providing Internet access to a
greater share of the Cuban population.
The commercial export of certain consumer communications devices, related
software, applications, hardware, services and items for the establishment
and update of communications-related systems will be permitted. These
changes are intended to improve telecommunications between Cuba and the
rest of the world, which may also facilitate U.S.-Cuba trade, said the ERS. In
addition, wireless telecommunications
in the developing world is key to helping buyers and sellers of agricultural

SURGXFWVQGEHWWHUSULFHV
The seventh element updates the application of U.S. sanctions on Cuba in
third countries. U.S.-owned entities
in third countries will be generally licensed to provide services to, and enJDJH LQ QDQFLDO WUDQVDFWLRQV ZLWK
Cuban individuals in third countries. In
addition, general licenses will unblock
the accounts at U.S. banks of Cuban
nationals who have relocated outside of
Cuba, permit U.S. persons to participate
in third country professional meetings
and conferences related to Cuba, and
allow foreign vessels to enter the U.S.
after engaging in certain humanitarian
trade with Cuba. The ERS said the end
of these restrictions may have unknown
but positive implications for U.S.-Cuba
agricultural trade.
We want to hear from you Send comments and
inquiries to [email protected]. For reprints of
WG articles, e-mail [email protected].

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FEATURE

RICE

BUILDING BETTER

lthough rice productivity has more than doubled in recent decades, an additional 25% increase is needed by
2030 to meet the demands of a growing population.
The increase has to be achieved with less land, water
and under more severe environmental stresses due to climate change, according to the International Rice Research
Institute (IRRI). Accelerated genetic gains are needed to
improve yield potential, stability and grain quality of rice.
But rice has large within-species genetic diversity and varietal group differentiation, making it a tough grain to crack.
More complete knowledge of the genetic diversity in the
gene pool and associations of diverse alleles with important rice traits are needed so that rice improvements can be
made using breeding strategies, IRRI said.
Researchers are trying to make that a reality with the release this October of new data from the 3,000 Rice Genomes
Researchers have released the genomes of 3,024 rice varieties to the
public in efforts to help design sustainable rice crops for the future.
Photos courtesy of IRRI.
70

by Susan Reidy

More than 3,000 rice genomes


released to public database can be
used to design sustainable crops
of the future.
Project (3K RGP), an international research program that
has sequenced 3,024 rice varieties from 89 countries. The
JHQRPHV ZHUH UHDQDO\]HG DJDLQVW YH SRSXODU YDULHWLHV
that represent the three main subgroups of cultivated rice
indica, japonica and aus.
The results, which come in at a massive 120 terabytes,
are now publicly available online as an Amazon Web
Services (AWS) Public Data Set. Access to the data is free,
November 2015 / World Grain / www.World-Grain.com

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FEATURE: BUILDING BETTER RICE

and is governed by the stipulations


for data analysts and users from the
Toronto Statement. Funding for the
research was provided by the Global
Rice Science Partnership.
The dataset provides access to millions of genetic markers that can be
used to design sustainable crops for
the future, that is, ones that are high
yielding and more nutritious while at
the same time requiring less water, fertilizer and pesticides, said Rod Wing,
director of the Arizona Genomics
Institute at the University of Arizona,
Tucson, Arizona, U.S., and a pioneer
in rice genome sequencing.
3,000 RICE GENOMES PROJECT
Rice diversity is massive there are
more than 230,000 germplasm accessions of rice maintained in genebanks
worldwide. The International Rice
Genebank of the T.T. Chang Genetic

Resources Center at the International


Rice Research Institute (IRRI) in the
Philippines alone contains more than
127,000 rice accessions from all over
the world. An accession is a collection
of plant material from a particular locaWLRQDQGLWLVDVVLJQHGDQLGHQWLFDWLRQ
number.
These accessions have genes/traits
that can be used to make rice cultivation more sustainable, with a smaller
environmental footprint. Traits targeted for improvement include higher
nutritional quality; tolerance of pests,
diseases, and environmental stresses,
VXFK DV RRG DQG GURXJKW DQG UH
duced greenhouse gas emissions.
In an attempt to sequence some of
this diversity across the rice species,
the Chinese Academy of Agricultural
Sciences (CAAS), the Beijing Genomics
Institute (BGI) Shenzhen and the IRRI
launched in 2012 the 3K RGP program.

The three research institutions have


sequenced 3,024 rice varieties that are
housed in IRRI and CAAS genebanks.
Funding was provided by grants from
the Bill & Melinda Gates Foundation
and the Chinese Ministry of Science
and Technology.
The varieties chosen for sequencing include most rice mega-varieties
growing in large areas of different
ecosystems throughout Asia, according to the IRRI. Parental lines of popular varieties and selected genetic mapping populations were also included.
Researchers said this approach should
capture most of the genetic variation
in rice.
The resulting 3K RGP dataset has
millions of genomic sequences from a
diverse set of rice varieties. A large part
of the project is to link the genetic information to the physical traits of the different accessions. Researchers will have

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For more information, see Page 114.

FEATURE: BUILDING BETTER RICE

to assess each of the accessions for the


desired traits, which breeders can then
link to genetic markers in the available
genome sequences from 3K RGP.
IRRI hopes this will speed the traditional breeding process, which has
remained virtually unchanged. In the
past, breeders would make crosses
based on physical traits they observed,
hoping the offspring would have the
desired traits. Often, time-consuming
trial and error was necessary with
multiple generations, before they saw
success.
Now, with the genetic information
RI VSHFLF ULFH DFFHVVLRQV LQ KDQG
breeders and researchers can make
more informed choices when crossing
varieties. This could result in faster
development of rice varieties suited
for poor and environmentally stressed
areas around the world, IRRI said.
Through the Global Rice Science

Partnership (GRiSP), IRRI is leading the development of an informal


global effort the International Rice
Phenotyping Network to systematically evaluate the 3K RGP sequenced
lines and to connect plant performance to specific genes, Hei Leung,
IRRI principal scientist told IRRIs
Rice Today in 2014. By closely integrating these resources into breeding
programs based on modern molecular breeding and selection strategies,
varietal development in hundreds of
rice breeding programs will be accelerated over the next five years, delivering improved varieties to farmers
and consumers at a faster pace than
before.
DATA ACCESSIBILITY
Data access and analysis tools for
the 3K RGP are being made available through the International Rice

Informatics Consortium (IRIC). One


of the tools, the SNP-Seek database,
provides user-friendly access to a type
of genetic marker called single nucleRWLGH SRO\PRUSKLVPV LGHQWLHG IURP
the data.
Another tool in SNP-Sneek, the
JBrowse genome browser, displays
FKURPRVRPHVSHFLF 613 GDWD GHrived from the set.
The great thing about the release
of this dataset is that it is immediately useable, said Kenneth McNally,
senior scientist in IRRIs T.T. Chang
Genetic Resources Center and a project team member. It comes with tools
to help researchers visualize and analyze genetic information.
Wing said the dataset is a powerful
tool that will unite researchers from
around the world, and help drive the
next green revolution.
Researchers are reviewing the re-

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For more information, see Page 114.

FEATURE: BUILDING BETTER RICE

Rice is the most widely consumed staple food for a large part of the worlds population,
especially in Asia.

sults from the 3,024 genomes currently sequenced, and will determine if
they can identify enough critical genes
for rice improvement.
At that point, we will decide how
many more of the remaining 180,000
accessions in the IRGC and CAAS
genebanks we may need to sequence
and analyze, Leung said.

The IRRI also gave the genomes


to the International Treaty on Plant
Genetic Resources for Food and
Agriculture, which is working to create an international system for storing
genetic data of food crop seeds.
In October, delegates from the Food
and Agriculture Organization-based
treaty agreed to proceed with cre-

ation of a Global Information System


(GLIS). World governments and organizations are storing genetic material
in seed banks, but without a single
VRXUFHWRWKHGDWDLWLVGLIFXOWIRUUHsearchers and plant breeders to know
what is held where, FAO said.
The genetic information that IRRI
is making available to us, and the
public at large, is a hugely generous
DQGVLJQLFDQWVKRZRIVXSSRUWWRRXU
endeavors to make all relevant information on genetic resources on plant
crops available for future food security, said Shakeel Bhatti, secretary of
the international treaty.
Bhatti said the global system will
contain a virtual gene library that will
include data from seed banks, research
centers and farmers organizations.
7KH ,55, ULFH JHQRPHV ZHUH WKH UVW
contribution to the system.
It is going to take time to get it
fully functional because of the vast
array of interests involved, but it will
greatly facilitate the work of all the
actors along the seed value chain, in
developing and developed countries,
Bhatti said.
We want to hear from you Send comments and
inquiries to [email protected]. For reprints of
WG articles, e-mail [email protected].

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The editors of World Grain gather relevant stories


on the industry from news sources world wide and
deliver them to you daily to help you stay informed.

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RICE QUARTERLY

Rice

News Roundup
Philippines aiming to increase rice
imports to 1.5 million tonnes

MANILA, PHILIPPINES The Philippines wants to increase the


volume of rice imports WRPLOOLRQWRQQHVLQWKHUVWKDOIRI
to boost buffer stocks and keep local prices stable, as the adverse effect of El Nio continues to intensify.
Socioeconomic Planning Secretary Arsenio Balisacan said the
inter-agency El Nio Task Force will propose an additional 1 million
tonnes of rice imports to President Benigno S. Aquino III.
)RU  ZH KDYH DQ DOUHDG\ DSSURYHG SURYLVLRQ RI 
WRQQHVIRUWKHUVWTXDUWHUEXWEDVHGRQRXUDQDO\VLVRIWKHFXUUHQW
data we may need to increase or import another 1 million tonnes to
maintain a 45-day buffer stock, Balisacan told reporters.
He stressed that the expected increase in rice imports assumed
that the El Nio will be as intense as those in the 1997 to 1998
SKHQRPHQRQ WKDW DORQJ ZLWK WKH$VLDQ QDQFLDO FULVLV UHGXFHG

WKHFRXQWU\VDJULFXOWXUDORXWSXWE\
Balisacan said El Nio will peak starting December until February, and its impact is expected to last until June next year.
)RU%DOLVDFDQVDLGWKHFRXQWU\H[SHFWVWREULQJLQ
tonnes of rice by the fourth quarter, bringing total imports to over 1.9
million tonnes this year.
1HDUO\  WRQQHV RI ULFH DUULYHG LQ WKH FRXQWU\ LQ WKH UVW
VHPHVWHUDQGDQDGGLWLRQDOWRQQHVLQWKHWKLUGTXDUWHU
Some provinces will be affected much longer by El Nio than the othHUV7KHUHDUHSURYLQFHVWKDWZRXOGVXIIHUVHYHUHGURXJKWKHQRWHG
Citing the state weather bureau, Balisacan said there are already seven provinces experiencing drought including the provinces of Quirino, Aurora, Quezon, Bohol, Siquijor, Camiguin and
Misamis Oriental.

U.S. rice farmers would benefit from Cuban open trade legislation
WASHINGTON, D.C., U.S. House Agriculture Committee Chairman Mike Conaway, along with Representatives Rick Crawford and
7HG3RHLQWURGXFHGOHJLVODWLRQRQ2FWWKDWZRXOGRSHQDJULFXOWXUDOWUDGHDQGQDQFLQJEHWZHHQWKH86DQG&XED
7KHELOO+5RUWKH&XED$JULFXOWXUDO([SRUWV$FWUHSHDOV
QDQFLQJUHVWULFWLRQVDOORZLQJ86EDQNVWRRIIHUFUHGLWLQ&XEDLQ
connection with exports of U.S. agricultural goods; eliminates restrictions on key federal funding used in agricultural export promotions for Cuba; and enables investment in Cuban agribusinesses not
DIOLDWHGZLWKWKH&XEDQJRYHUQPHQW
This action follows closely on the heels of a trip to Cuba by ArkanVDV*RYHUQRU$VD+XWFKLQVRQDQGDJURXSRIQHDUO\$UNDQVDQV

including representatives of Riceland Foods. Hutchinson returned to


Arkansas motivated to ask for changes.
&RQJUHVVQHHGVWRHTXDOL]HWKHHOGRIRSHUDWLRQVIRURXUEXVLnesses by allowing them to negotiate cash, credit, whatever they
feel comfortable with and the level of risk they wish to take, said
Hutchinson. Right now, we cant even negotiate a credit sale, and
thats not customary in the market.
Keith Gray, a Texas-based rice miller with Riviana Foods, said,
We have been looking for opportunities to sell rice to Cuba for some
WLPHDQGLWVDOZD\VEHHQKHOGXSEHFDXVHRIWKHQDQFLQJLVVXH7KLV
bill would be a game-changer, and I think its the best option put forward so far to open up the Cuban market for our rice.

Thailand rice production to drop, but exports may remain steady


BANGKOK, THAILAND Due to dry weather, rice production in
7KDLODQGLVOLNHO\WRGURSE\DURXQGIURPODVW\HDUVWRWDORI
PLOOLRQWRQQHVEXWH[SRUWVIURPWKHFRXQWU\IRUPD\UHPDLQ
VWHDG\DWPLOOLRQWRQQHVDFFRUGLQJWR7KDLODQGVFRPPHUFHPLQLVWHU
The stockpiled rice accumulated under the previous government is
78

expected to offset decline in production. The military government holds


DERXWPLOOLRQWRQQHVRIULFHVWRFNVDQGLWVHHNVWRVHOODOOWKHVWRFNpiled rice by the end of next year, according to the commerce minister.
Thailand FOB for high quality white rice is too favorable for major importing countries.
November 2015 / World Grain / www.World-Grain.com

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RICE NEWS ROUNDUP

Cambodia rice exports surge 37% in last nine months


PHNOM, PENH, CAMBODIA Cambodia exported 369,105 tonnes of milled rice in
WKHUVWQLQHPRQWKVRIDLQFUHDVH
from 269,370 tonnes over the same period
last year, according to a recent report.
The three top buyers of Cambodian rice
are China, France and Poland, according to
the report released by the Secretariat of One
Window Service for Rice Export.

From January to September 2015, the


Southeast Asian nation sold 78,182 tonnes
of rice to China, 50,266 tonnes to France and
41,022 tonnes to Poland, it said.
Hean Vanhorn, director of the Secretariat
of One Window Service for Rice Export, said
types of exported rice included fragrant rice,
white long grain, and parboiled long grain.
About 64% of the rice was sold to Eu-

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In 2014, Cambodia exported some
370,000 tonnes of milled rice, earning gross
revenue of $247 million, according to the
Ministry of Commerce.
The country launched a rice promotion
strategy in 2010, setting a goal of exporting 1 million tonnes of milled rice by 2015.

Traders upset by Punjab governments


move to reimpose taxes on basmati rice
CHANDIGARH, INDIA The Punjab governments decision to reimpose 7% taxes on
basmati procurement has not gone over well
with traders.
The taxes being collected by the state
mandi board, effective Oct. 1, include a 2%
market fee, 2% rural development fund and
3% Punjab infrastructure development fund
(PIDF). Traders say this move has made
things worse for the rice industry in the state,
which is already passing through an unprecedented phase of decline.
Ravinder Singh Cheema, vice-chairman of
the Punjab Mandi Board, said the government
had no option but to reimpose the taxes as
about 80% of the crop coming in the mandis
of Tarn Taran, Ferozepur, Gurdaspur and Amritsar during the kharif marketing season was
basmati, adding that the tax waiver meant no
income for the market committees.
:HZDQWWRVXSSRUWRXUORFDORIFHVDOVR
Cheema added.
The mandi board supervises the procurement of foodgrains in more than
1,700 grain markets of the state. The revenue
generated from procurement is used on rural
development and the upkeep of mandis.
According to top government functionarLHVWKHWD[ZDLYHUKDGOHGWRDEHQHWRI
rupees per quintal, but it was favoring importers, especially from gulf countries, who purchased basmati from Punjab traders.
However, the waiver of 5% purchase tax
would continue.
Also, the waiver of 2% market fee, 2%
rural development fund and 3% PIDF would
continue for mega projects in which 10 crore
rupees or more have been invested in rice
shelling and processing mills. There are 15
such set-ups in Punjab which shell and trade
about 25% of the basmati.
Ashok Sethi, director, Punjab Rice Millers and Exporters Association, said the 1509
variety of basmati had poor cooking quality
and higher percentage of breakage, leading to
near boycott of this variety.

For more information, see Page 114.

80

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

For more information, see Page 114.

RICE NEWS ROUNDUP

Egypts trade ministry lifts ban on rice exports


CAIRO, EGYPT Egypts Ministry of Trade and Industry has
lifted a ban on rice exports due to an expected surplus of the staple and will impose an export tariff of 2,000 Egyptian pounds
($255.43) a tonne, it said on Oct. 11. The ruling will remain in
place for six months, the ministry said in a statement.
Rice exports were banned on Sept. 1 to satisfy domestic consumption. The agriculture ministry said at the time it expected
production of 2.7 million tonnes of white rice in the 2015-16
season, less than estimated annual consumption of 3.6 million
tonnes. But the banning decision was later cast in doubt after the
agriculture minister resigned and was subsequently arrested on
corruption charges.

7UDGH0LQLVWHU7DUHN.DELOVDLGJXUHVLQGLFDWHGWKHUHZRXOG
be surplus production this season as well as a surplus carried over
from the last season. The Oct. 11 statement also said letters of
credit would have to be provided for rice sales or a transfer of the
full amount of the deal in foreign currency to a bank operating
inside Egypt.
Egypts agricultural export council said last month the country
could export up to 1 million tonnes. Egyptian medium grain rice
mainly competes with U.S., Russian and Italian rice on the interQDWLRQDO PDUNHW (J\SW UVW LPSRVHG D EDQ RQ H[SRUWV in 2008,
saying it needed to save rice for local consumption and wanted
to discourage rice farmers from growing the crop to save water.

Indonesia to purchase Vietnamese, Thai rice


JAKARTA, INDONESIA The Indonesian government in September announced its intent to purchase rice from Vietnam and
Thailand through government-to-government deals and its representatives will soon begin negotiations.
Honorary President of the Thai Rice Exporters Association,
Chookiat Ophaswongse, said on Sept. 29 that Indonesia may
have to import from other sources, too, as Thailand and Vietnam
may not be able to meet the 1.5-million-tonne demand.
He added that Indonesia will need rice between November 2015
and January 2016, because its own harvest will start in March.

The 1.5 million tonnes that Indonesia needs is composed of


5% white rice and 15% broken rice, he said.
In the first nine months of this year, Thailand exported around
7 million tonnes of rice. The local Commerce Industry is confident the export target of 10 million tonnes will be achieved
this year.
According to Indonesias Jakarta Post, the Indonesian government hopes that 47 million tonnes of rice will be produced
next year, the same amount as the total rice production predicted
for this year by the Central Statistics Agency.

For more information, see Page 114.

82

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

For more information, see Page 114.

FEED OPERATIONS

Considerations in
installing spouting
It should be installed at or greater than the slope
needed to convey the product it carries
by Fred Fairchild

In my previous article that appeared in the September


issue of World Grain, we examined the types of spouting
and how to size them. In this article, we look at factors to
consider when installing spouting.
Spouting must be assembled so the interior edges from
one section to another are aligned to provide a smooth surface. This is necessary, whether using liners or just metal
sections, to avoid creating exposed edges resulting in wear
points and damaging soft products such as pellets. When
passing from an unlined spout section into a lined section
of spouting, the edges of the unlined section must be located such that the inside surface does not hit the liner edge.
This can be done by using a larger diameter spout for the
lined section (see sketch 1 on page 90 for a comparison of
joining spout sections and their interior alignment).

states that grain velocities exceeding 1,750 feet per minute


can damage whole grain. For spouting installed on a 45-degree slope handling whole dry grain, the grain might enter
the spout from a bucket elevator at a speed of 618 feet per
minute. At 20 feet down the spout, the velocity doubles
to approximately 1,235 feet per minute. At a point 40 feet
from the top, the velocity is about 1,750 feet per minute, at
60 feet the velocity is 2,140 feet per minute and at 80 feet
the velocity is 2,470 feet per minute.
If the material exiting the spout has not been retarded,
it will enter the next piece of equipment or bin in a turbuOHQWRZ7KLVFDQDIIHFWORDGLQJXQLIRUPLW\DQGRUSURGXFW
continuity (by separating different particle sizes).
At every turn or termination point, the product in the spout
is subjected to abrupt changes in direction or a break in the
velocity. For long spouts, a cushion box, sometimes called a
SPOUT SLOPE
dead head, should be installed at the lower end of the spout
A spout must be installed on a slope that is steep enough to break the velocity of the product in the spout and direct it
to carry the product, by gravity, from its inlet to outlet. vertically into the bin or other piece of equipment.
This steepness is measured by an angle measured between
These cushion boxes are available commercially or may
a horizontal plane and the slope of the spout as shown in EH FRQVWUXFWHG LQ WKH HOG $Q\ FXVKLRQ ER[ KDV D WKLFN
sketch 2 on page 90.
impact plate installed to slow the product and allow it to
The slope angle must be greater than the angle of repose fall off the plate and discharge vertically into the bin or
DQGFRHIFLHQWRIVWDWLFIULFWLRQRIWKHPDWHULDOEHLQJKDQ- equipment. These cushion boxes should be built so that a
GOHG$OWKRXJKSURGXFWVFDQRZRQVOLJKWO\OHVVVORSHV, covering of the product is held against the impact plate to
would recommend the slopes shown in Table 1, page 86.
absorb additional product as it reaches the end of the spout.
It should also be designed to be self-cleaning so no product
PRODUCT VELOCITY
is left in the cushion box when the spout is empty.
Depending on the length and slope of a spout, the conveyed product reaches higher velocities the longer the PRODUCT DIVERSION
spout. Information found in the Nolin Milling, Inc. catalog
Many times the product entering the spout needs to be
84

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

For more information, see Page 114.

FEED OPERATIONS

Table 1. Minimum recommended spout slope angles


Product type

Minimum slope

Whole dry grains

40 degrees

Wet grain, pelleted feed, free flowing products

45 degrees

Mash feed

50 degrees

Flour, fine powders, high moisture mixes

60 degrees or higher

directed to more than one destination. This can be done


using a two- or three-way valve. If more destinations are
required, it is best to use a turn-head (distributor).
Valves used in-gravity spouting are typically of two
W\SHVLSRSRUEXFNHW SDQ VW\OH$LSRSYDOYHKDV
DVTXDUHERG\ZLWKDSODWHWKDWFDQEHLSSHGWRGLUHFWRZ
to one outlet or the other. This plate needs to be of heavy or
OLQHGFRQVWUXFWLRQDVLWRIWHQWDNHVLPSDFWDVZHOODVVOLGLQJ
loads from the material being diverted.
This type of valve will not seal well on the sides and top
WLS DQG LV QRW UHFRPPHQGHG LI VRIW RU QH SURGXFW LV EHing handled. The pan valve has a chute, of heavy or lined
construction, in it that rotates from one outlet to the other
and contains the product as it passes through the valve.

This valve can be designed to seal well. Either of these


two types of valves can be purchased with outlets arranged
as an upside down y. Valves can also be purchased in an
RIIVHWFRQJXUDWLRQZKHUHRQHRXWOHWJRHVVWUDLJKWRXWDQG
the second outlet is an offset to the side.
$ WXUQKHDG GLVWULEXWRU  FDQ KDYH RQH LQOHW DQG PDQ\
outlets with the inner spout able to be rotated to a selected
outlet. The slope of the inner spout and the outlets of the
turn-head must have slopes at or greater than the minimum
slope needed to convey the product. Turn-heads are standardly available in 45-, 50-, and 60-degree models. Turnheads can have lined inlets and outlets and a heavy duty
$5 VWHHO RU OLQHG LQQHU VSRXW IRU KLJK ZHDU DSSOLFDWLRQV
Turn-heads can also be designed in single, double or triple

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*RW*UDLQ"

Rolls for Grinding, Cracking,


Flaking and Rening

&XVWRPL]HG*UDLQ
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For more information, see Page 114.

86

Leonhard Breitenbach GmbH Walzenweg 60 D-57072 Siegen


Tel.: 0271 3758-0 Fax: 0271 3758-290 E-Mail: [email protected]

For more information, see Page 114.

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

Trends that FEED the industry

For more information, see Page 114.

Join us Jan. 26-28, 2016, in Atlanta, Ga., USA, for the worlds largest annual feed,
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FEED OPERATIONS

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Round steel spouting is the most common type used in feed mills.
Photo by Arvin Donley.

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2QH WKLQJ WKDW LV RIWHQ RYHUORRNHG RU QRW WKRXJKW RI
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VHDOHGDUHDWKHDLUZLOOOHDNRUEORZRXWRIWKHGHVWLQDWLRQ
SRLQWDVGXVW7KLVLVGXHWRWKHIDFWWKDWWKHSURGXFWDLU
PL[WXUH FUHDWHV SUHVVXUH DW WKH VSRXW GLVFKDUJH 2QH RI
WKHSODFHVWKLVGXVWLVPRVWQRWLFHGLVGXVWOHDNLQJRXWRI
YHQWV RU DURXQG PDQKROH FRYHUV LQ ELQV$V WKH SURGXFW

For more information, see Page 114.

geaps.com/ExchangeBooth

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

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


GLOBAL DAY-TO-DAY GRAIN & GRAIN PROCESSING INDUSTRIES

DYNAMIC
website

DIGITAL
edition

DAILY
e-newsletter

World Grain gathers information from around the global grain, flour and feed industries and
provides its readers with the information they need to stay informed and do their jobs.
Visit www.world-grain.com to sign up for our digital edition and daily e-newsletter.

FEED OPERATIONS

Interior spout alignment at joints

Spout slope measurement

Sp

ou

Correct Interior Surface Alignment at Joint


Slope
Angle
Wear Points

Incorrect Interior Surface Alignment at Joint

OOVDELQLWGLVSODFHVDLUDOUHDG\LQWKHELQLQDGGLWLRQWR
GHOLYHULQJDGGHGDLULQWRWKHELQ$VDQH[DPSOHDV\VWHP
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The slope of a spout is measured in the degree of the


angle formed by the spout and a horiztonal surface

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IURPEHLQJSUHVVXUL]HG,WZLOOVHHNDQ\RSHQLQJDYDLODEOH
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DLUWKHDLUYHORFLW\LVXVXDOO\KLJKHQRXJKWRFDUU\QHPDWHULDOSDUWLFOHVWKURXJKWKHRSHQLQJUHVXOWLQJLQGXVWEHLQJ
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WRWKHDWPRVSKHUHVRPHW\SHRIVHDOHGDWPRVSKHUHWRVHQG

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FEED OPERATIONS

the air further down the system, or the installation of some


type of dust control system to collect and discharge this
DLU 2QH RI WKH PRVW GLIFXOW SODFHV WR FRQWURO GXVW DQG
even avoid internal contamination between bins, is where a
turn-head (distributor) is used to direct the product to various bins. If the bins are well sealed, the air pressure will
UHOLHYHLWVHOIE\RZLQJEDFNXSWKHVSRXWWRWKHGLVWULEXWRU
This can cause cross contamination within the distributor
by the air being vented into an adjacent spout opening in
the distributor. To avoid cross contamination, a turn-head
must have an inner spout that is designed with seals at both
HQGVRIWKHLQQHUWXUQVSRXWWRDYRLGDQ\OHDNDJHRISURGXFW
or air internally within the distributor.
An example of a method for venting air from bins that are
EHLQJOOHGIURPDGLVWULEXWRUPD\EHIRXQGDWWKHZHEVLWH
for the Essmueller Company (www.essmueller.com). Open
WKH ZHEVLWH E\ FOLFNLQJ WKH ZHOFRPH EXWWRQ DQG IROORZ
WKURXJK E\ WKHQ FOLFNLQJ WKH HQWHU WXUQKHDG GLVWULEXWRUVDQG%9GHJUHHELQYHQWEXWWRQV7KLVZHEVLWH
shows an attachment that can be attached to a distributor
WRYHQWUHWXUQDLUIURPDELQEHLQJOOHGWRDGXVWFRQWURO
V\VWHP/RRNDWWKHLQVWDOODWLRQFRPSRQHQWVDQGVHOHFWLRQKHOSVHFWLRQVWRVHHKRZWKLVW\SHRIV\VWHPPD\

be added. A dust relief system of this type can be used with


various bands and types of turn-heads.
In summary, all spouting must be installed at or greater
than the slope needed to convey the product it carries. All
interior joints should be built so no product impacts the interior edge of the next section of spouting. Cushion boxes
VKRXOGEHLQVWDOOHGDWWKHHQGRIWKHVSRXWWREUHDNWKHSURGuct speed and discharge it into the equipment or bin. All
valves should be installed so that the outlets are on slopes
meeting or exceeding recommended minimum spout slopes.
All cushion boxes, valves and turn-heads should be large
HQRXJKWRDYRLGUHVWULFWLQJRZRISURGXFWSDVVLQJWKURXJK
them, and should be lined or of heavy construction if required. Consideration needs to be made on how to handle the
entrained air that is discharged from a spout.
Fred Fairchild is feed science professor emeritus in the Department of
Grain Science at Kansas State University. Prior to coming to Kansas
State in 1994, he worked in the industry designing, constructing and
commissioning numerous mill facilities. He is a licensed professional
engineer. He can be reached by e-mail at [email protected].
We want to hear from you Send comments and inquiries to worldgrain@
sosland.com. For reprints of WG articles, e-mail [email protected].

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For more information, see Page 114.

92

For more information, see Page 114.

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

For more information, see Page 114.

WORLD GRAIN WEATHER REPORT

KEEPING A CLOSE EYE

ON THE UNITED STATES


W

orld weather remains dominated by El Nio, but


forecasters are suggesting that the event has reached
its peak intensity and that opens the discussion for
what happens next. There is a good chance that as El Nio
GLPLQLVKHV LQ WKH UVW DQG VHFRQG TXDUWHUV RI  PRVWO\
improved weather will impact many of the worlds most important agricultural areas.
Todays most serious problems are in Indonesia where
drought has been at an extreme for several months and will
only slowly ease in the next few weeks as seasonal rainfall
attempts to evolve. The delayed arrival of season rainfall
culminates a normally drier season with critically low soil
moisture and water supply.
Drought in Indonesia is probably among the worst in the
world presently, but many other areas are drier than usual.
Portions of Northern Brazil, Central America, Central Africa,
Europe and Australia suffered from dryness during a large
SDUW RI  DQG HDFK RI WKHVH DUHDV KDV HLWKHU VHHQ UHFHQW
improvement or will soon see such conditions.
It is a little rare for improvement to come so soon during a
record or near-record intense El Nio, especially with it still
at its peak intensity. Most computer forecast model runs have
been suggesting El Nio will remain at its peak intensity for
several more weeks before showing a more accelerated deFOLQHLQLQWHQVLW\DQGLQXHQFHRQZRUOGZHDWKHUSDWWHUQV6R
ZKDWGRHVWKDWPHDQIRU"
:HOLYHLQZRUOGRIHTXLOLEULXP1DWXUHPXVWVWD\EDODQFHG
and when extremes of any kind occur there tends to be an
HTXDODQGRSSRVLWHHIIHFW3URORQJHGSHULRGVRIXQXVXDOO\KRW
ZHDWKHU DUH TXLWH RIWHQ IROORZHG E\ VRPH LPSUHVVLYH FRRO
weather. Years that are snow-free or receive well below average snow are often followed by greater snow years. The same
is true for dryness and extremely wet conditions. The record
books are full of examples of this and all that is needed in
most extreme weather situations is a little time for the balancing to take place.
The end of El Nio promises to counterbalance many of the
abnormalities noted this year. World Weather, Inc. is expectLQJ(XURSHWRVHHDFRROHUDQGZHWWHUVXPPHULQIRUUHD94

by Drew Lerner

With dryer conditions possible, U.S.


may hold trump card for grain and
oilseed prices in 2016
sons other than to counterbalance this years hot and dry bias.
6RPH RI WKH ZHWWHU DQG FRROHU FRQGLWLRQV ZLOO DOVR LPSDFW
WKH ZHVWHUQ &RPPRQZHDOWK RI ,QGHSHQGHQW 6WDWHV 5HFHQW
forecasts have been predicting more abundant rain in eastern
Australia in the next few weeks and some slowly improving
rainfall is now advertised for Indonesia and northern Brazil.
$VWLPHPRYHVDORQJDQG(O1LxRZHDNHQVPRUHVLJQLcantly, these trend changes will become much more noticeDEOH$TXLFNUHYLHZRISDVWVLJQLFDQW(O1LxRHYHQWVQHDUO\DOZD\VVKRZVDVLJQLFDQWUHWXUQRIUDLQWRVRXWKHUQ$VLD
DQG PRVW WURSLFDO DUHDV RI WKH ZRUOG DQG  ZLOO EH QR
GLIIHUHQW &RQGHQFH LV YHU\ KLJK WKDW PDQ\ RI WKLV \HDUV
drier-biased areas that suffered production cuts will be wetter. Grain and oilseed crops, including rice, corn, soybeans
and some canola, will likely experience better environments
IRUSURGXFWLRQLQ7KHVDPHPD\EHWUXHIRUVXJDUFDQH
coffee and cocoa production.
U.S. OFTEN TREND DRIER AFTER EL NIO
If these forecasts are all correct, one must conclude that
world production of many agricultural commodities will rise
VLJQLFDQWO\ GXULQJ WKH \HDU SUHVVXULQJ IXWXUHV SULFHV7KDW
may be true, but interestingly there is enough support to beOLHYHWKH8QLWHG6WDWHVPD\KROGDWUXPSFDUGIRUFRPPRGLW\IXWXUHVSULFHVLQ
)XWXUHVWUDGLQJUVWEHJDQLQWKH86DQGLWVWLOOKROGVPXFK
of the trading volume each year, although conditions are slowly changing in other places around the world. What happens in
86FURSDUHDVRIWHQKDVDGLUHFWLPSDFWRQZRUOGFRPPRGLW\
WUDGHDQGZLOOOLNHO\EHPRUHWKDWZD\WKDQXVXDOEHNovember 2015 / World Grain / www.World-Grain.com

FEATURE: KEEPING A CLOSE EYE ON THE UNITED STATES

Early spring 2016

PRECIPITATION

cause of the already favorable weather that is expected around


the world in 2016 as El Nio diminishes.
The U.S. weather is dictated by many repeating trends in
the atmosphere. One is the repeating cycle that appears in the
upper atmosphere at roughly 18-year intervals. Another is the
El Nio phenomenon and both of these trends are pointing
toward some level of drier biases in 2016. The 18-year cycle
suggests less than usual rainfall from the lower Midwest and
southeastern states through the lower Mississippi River Basin
to the southern half of the Plains. The pattern also suggests a
warmer bias.
While El Nios demise in many tropical areas around the
world usually means more rain, the U.S. weather often trends
a little drier, especially following extremely strong El Nio
events like that of 2015. In most cases, very strong El Nio
events are followed by La Nia, and La Nia events remove
rain from the U.S. weather patterns. La Nia also produces
some warmer tendencies in the U.S. Midwest.
Statistically speaking, the U.S. wet weather bias that occurred in the spring of 2015 in the southern Plains and lower
0LGZHVWZDVWKHPRVWVLJQLFDQWVLQFH6XPPHU
was not just dry, but it became the second driest year on record
IROORZLQJWKHGURXJKWDQGKHOGWKDWSRVLWLRQIRUDYHU\
long time.
The combination of a drier bias already expected in the
southern United States from Texas, Oklahoma and Kansas to
the lower Ohio River Basin and southeastern states in 2016
could be exacerbated by La Nia (if one occurs), making the
ZLGHVSUHDGGU\QHVVLVVXHDSHUFHLYDEOHSRVVLELOLW\QH[W
year. Now, history does not repeat itself exactly and another
 VHHPV D OLWWOH WRR H[WUHPH WR EH SUHGLFWLQJ KHUH EXW D
drier and warmer bias is more likely than a wet one and could
VWLOOKDYHVRPHLQXHQFHRQFRPPRGLW\WUDGHLQ
1RRQHWKRXJKWZRXOGRFFXUDJDLQLQWKHVDPHPDQQHU
but then along came 2012, and sure enough, the drought that
\HDU ORRNHG RPLQRXVO\ OLNH WKDW RI  %LJ GURXJKWV OLNH
WKRVH RI  WKH HDUO\ V DQG WKH PLGGOH V UDUHO\
occurred as single-year events. There was usually another sigQLFDQWO\GU\\HDUDFFRPSDQ\LQJWKHVLQJOHHYHQWVRILQWHQVH
www.World-Grain.com / World Grain / November 2015

Late spring/summer 2016

PRECIPITATION

dryness. So where is the other year of dryness to go along


with 2012? Will it be 2016? Or perhaps ongoing dryness in
California and the multi-year drought in the southern Plains
PD\KDYHDOUHDG\YHULHGWKHGURXJKWFOXVWHUWKHRU\%XWZKDW
if our 2012 drought has not yet seen its compatriot?
These drier tendencies for 2016 that are already built into
the forecast patterns makes the year one that should be closely
monitored for drought. World Weather, Inc. is not ready to
make wild projections of calamity in 2016 because of dryness, but it does make the point that with the rest of the world
already expecting much improved weather in 2016, perhaps
only the U.S. holds the wildcard that could pump up 2016
futures prices on a whim that dryness might be a threat.
Most forecasters that tout big droughts of devastating proSRUWLRQVIDLOWRVHHWKHLUIRUHFDVWVYHULHGDQGWKH\GLVDSSHDU
from the public eye as quickly as winter snow abates in the
spring. So do not misinterpret this forecast. No one is predicting calamity for 2016 and no weather forecaster has the inside
track on making such predictions.
But it does not take a rocket scientist, or in this case a meteorologist, to suggest that the U.S. weather in 2016 will likely
LQXHQFHWKHFRPPRGLW\PDUNHWVDURXQGWKHZRUOGEHFDXVH
it usually does. However, watching the events in 2016 unfold
will be worthwhile by any savvy grain or oilseed trader to be
UVWWRWDNHDGYDQWDJHRIWKHSRWHQWLDOULVHRUIDOOLQIXWXUHV
prices before anyone else. Certainly, if the U.S. does not slip
into a drier weather mode in 2016, the pressure is likely to be
downward on futures prices just based on statistics for years
following El Nio. Greater rains will bring greater production
and lower prices unless some major production region, like
the U.S., runs into a production issue.
Drew Lerner is a senior agricultural meteorologist with World Weather, Inc.
He may be reached at [email protected]. World Weather, Inc.
forecasts and comments pertaining to present, past and future weather
conditions included in this report constitute the corporations judgment as
of the date of this report and are subject to change without notice.
We want to hear from you Send comments and inquiries to worldgrain@
sosland.com. For reprints of WG articles, e-mail [email protected].

95

TECHNICAL PROFILE

KEEPING

ahead with enzyme design

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7KHZHDNHUWKHUDZPDWHULDOWKHPRUHLPSRUWDQWLWLV
WRXSJUDGHWKHRXUZLWKHQ]\PHVDQGRWKHUDGGLWLYHV:LWKYHUHVHDUFKDQGGHYHORSPHQWH[SHUWVIURPWKHHQ]\PHVSHFLDOLVW0KOHQFKHPLHWorld GrainWRRNDFORVHORRNDW
WKHVXEMHFWRIRXUWUHDWPHQW,WOHDUQHGWKDWHYHQSUREOHPZKHDW
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World Grain: $VDORQJVWDQGLQJSDUWQHURIWKHPLOOLQJLQGXVWU\0KOHQFKHPLHLVYHU\IDPLOLDUZLWKLWVQHHGV:KHUH
GRWKHELJJHVWFKDOOHQJHVOLHDWSUHVHQW"
Sven Mattutat: 7KHSUHYDLOLQJWRSLFVLQWKHLQGXVWU\DUHWKH
DYDLODELOLW\RIZKHDWZKHDWSULFHVDQGSRRUTXDOLW\%HFDXVH
RIWKHSULFHSUREOHPZKLFKLVERXQGXSZLWKWKH86GROODURIFRXUVHPLOOVEX\YHU\GLIIHUHQWORWVLQGLVFULPLQDWHO\
RQWKHLQWHUQDWLRQDOPDUNHWV7KH\DUHVWDUWLQJWRSOD\DURXQG

(Above) From left, Dr. Lutz Popper, Sven Mattutat and David Nolte examine
the quality of pasta made with a percentage of soft wheat. Photos courtesy
of Mhlenchemie.
96

Many factors must be considered


when developing tailor-made flour
treatment strategies
ZLWK DOO PDQQHU RI GLIIHUHQW UDZ PDWHULDOV %XW DW WKH VDPH
WLPHWKHLUFXVWRPHUVDUHGHPDQGLQJPRUHDQGPRUHHIFLHQW
RXUV :KDW WKDW PHDQV XOWLPDWHO\ LV WKDW WKH RXUV KDYH
WR RIIHU EHWWHU SHUIRUPDQFH IURP D ZHDNHU VWDUWLQJ SRVLWLRQ
1DWXUDOO\WKDWLVDKXJHFKDOOHQJHWRWKHPLOOV
David Nolte: 7KDWVDWUHQGLQWKHUDZPDWHULDOVVHFWRUWKDW
,FDQFHUWDLQO\FRQUP,QWKHPLOOLQJODERUDWRU\ZHDUHQRWLFLQJ D JURZLQJ GHPDQG IRU ZKHDW IURP *HUPDQ\ )UDQFH
5XVVLD DQG WKH 8NUDLQH IRU H[DPSOH IRU PL[LQJ ZLWK RWKHU
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VWDELOLW\ DV DQ$PHULFDQ KDUG ZKHDW )UHQFK ZKHDW IRU LQVWDQFHFRQWDLQVYHU\OLWWOHSURWHLQ7KDWLVQRSUREOHPLI\RX
November 2015 / World Grain / www.World-Grain.com

For more information, see Page 114.

FEATURE: KEEPING AHEAD WITH ENZYME DESIGN

are just producing baguettes, but if this trials with new lots of wheat. For some PDWHULDOV XQWLO ZH UHDFK WKH VSHFLHG
ZKHDWLVWREHXVHGIRUPDNLQJRXUIRU WLPH ZH KDYH KDG D H[LEOH DXWRPDWLF target. That is one of the applications for
VDQGZLFKORDYHVWKDWLVZKHQWKHGLI- grinder that enables us to simulate in- our grinder. But, of course, we use it for
culties occur.
World Grain: How can you reconcile
all these opposing requirements?
Nolte: First of all, its important to
QGWKHULJKWUDWLRIRUWKHPL[WXUH:KDW
percentage of the higher quality wheat
can I replace with cheaper lots without
loss of quality? Is the limit 70%:30%?
Is it 60%:40%, or 50%:50%? These are
crucial questions to which every mill
PXVWQGWKHULJKWDQVZHUV

Enzymes have an excellent ecobalance. That aspect


has been given far too little attention in the past.
Lutz Popper, head of Research & Development
dustrial grinding as a service to our
customers and carry out test runs on a
laboratory scale.

World Grain: :KDW LV WKH SURFHGXUH


for such trials?
Nolte: /HWV WDNH DQ H[DPSOH D FXVWRPHUQRORQJHUZDQWVWRXVHH[FOXVLYHWorld Grain: Those are not ques- O\ &DQDGLDQ &:56 +H ZDQWV WR PL[
tions you can answer theoretically. They it with soft German wheat. Naturally
mean you have to carry out grinding and that raises the question of quality in
baking trials. And that interferes with WKHEDNHGJRRGV6RWKHPLOOHUVHQGVXV
the routine procedures at a mill.
two samples: one of his current wheat
Nolte: Thats right. Not every mill can DVDUHIHUHQFHWKHRWKHUIRUWHVWLQJ:H
QGWLPHWRFDUU\RXWFRPSOH[JULQGLQJ JULQG DQDO\]H PL[ DQG EDNH WKH UDZ

assessing wheat quality in general, too.


For instance, we have a customer from
Africa who orders his grain from overseas and has his dealer send us a sample from each purchase. The shipment
usually takes two or three weeks, and
we use that time to develop a suitable
WUHDWPHQW IRU WKH RXU 7KDW VDYHV WKH
customer time, of course, and ensures a
reliable production process.
Katja Runkel: The question of the
ULJKW UDWLR IRU WKH PL[WXUH LV WKH SUHdominant issue in the pasta sector, too.
At present there are great problems with
the quality of Triticum durum. Countries

For more information, see Page 114.

98

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

The regions only dedicated show for the


supply, use and formulation of ingredients,
nutrition and additives for animal feeds,
dry petfood and aquafeed

2 9

3 1

M A R C H

2 0 1 6

Asias largest event for the production


and processing of animal feeds, dry petfood,
and aquafeed. Also including biomass
pelleting technology

B I T E C

E X H I B I T I O N

The show for rice and flour milling, grain


processing, industrial pasta and noodle
processing, extruded snacks and breakfast
cereal production

H A L L S ,

B A N G K O K ,

T H A I L A N D

For more information, see Page 114.

Asias largest feed and grain event


Your global marketplace an international event in an international city being held in a country with large home markets
GGG Whats on show at FIAAP Asia 2016?
Ingredients Additives Formulation Laboratory equipment
Quality control
GGG Whats on show at VICTAM Asia 2016?
Feed production technology Packaging Energy efficiency
Auxiliary equipment Biomass pelleting technology
GGG Whats on show at GRAPAS Asia 2016?
Rice milling and sorting technology Flour milling technology
Flakers, extruders Grain processing systems Additives
GGG Conferences
Each of the exhibitions will have their own conferences, including:
The FIAAP Asia Animal Nutrition Conference 2016 Petfood Forum
Asia 2016 Aquafeed Horizons Asia 2016 Global Milling Conference
with GRAPAS Asia 2016 Biomass and Biomass Pelleting 2016
The second ASEAN Feed and Rice Symposium The second ASEAN
Feed Summit

GGG Supported by
Thai Ministry of Agriculture & Co-Operatives Thai Department of
Livestock Development Thai Department of Fisheries Thai Feed Mill
Association Thai Rice Milling Association Thai Chamber of Commerce
Federation of ASEAN Feed Associations
Thailand Convention & Exhibition Bureau
GGG Organized by
Victam International BV, PO Box 197, 3860 AD Nijkerk, The Netherlands
T: +31 (0)33 246 4404 F: +31 (0)33 246 4706 E: [email protected]

www.fiaap.com www.victam.com www.grapas.eu


See us on Twitter, Facebook, LinkedIn and Google+ or scan the QR codes

GGG Free on-line registration


Free on-line visitor registration is available from 1st November 2015 at:
www.victam.com/?pk=06

FEATURE: KEEPING AHEAD WITH ENZYME DESIGN

like Morocco, Cameroon and Senegal mix as much as 70%


soft French wheat with 30% hard wheat semolina. That
saves an enormous amount of money, of course. But withRXW DSSURSULDWH HQ]\PDWLF RXU WUHDWPHQW LW ZRXOGQW EH
SRVVLEOH WR VXEVWLWXWH VR PXFK ZLWKRXW D VHULRXV ORVV RI
quality.
World Grain: Enzymes as a universal panacea is it really as easy as that?
Mattuat:,WVE\QRPHDQVHDV\EHFDXVHWRGD\VUHTXLUHments are so complex that standard solutions and single ingredients no longer do the trick. Millers are faced with the
FKDOOHQJHRIGRLQJWKHEHVWWKH\FDQZLWKZKHDWPL[WXUHV
of very different origins and qualities. Our whole team of
H[SHUWVKDVVHWLWVHOIWKHWDVNRIQGLQJWKHLGHDOVROXWLRQ
Anke Wollgast: Of course, the starting point is always a
UKHRORJLFDODQDO\VLV(DFKRXULVUVWWHVWHGLQRXUODERUDWRU\IRUPRLVWXUHWKH)DOOLQJ1XPEHULWVJOXWHQDQGSURWHLQ
content and many other parameters. Not until we have a full
SLFWXUHRIWKHSURSHUWLHVRIWKHLQLWLDORXUFDQZHGHYHORS
DVWUDWHJ\IRURXULPSURYHPHQW

TriQ SORTS IT ALL OUT


BoMills patented sorting technology, TriQ, makes
it possible to analyze and identify each kernel of
a batch of grain and segregate them into quality
GIVXMIHJVEGXMSRWEXI\XVIQIP]LMKLWTIIH

Quality sorting of wheat, durum wheat and barley


Remove your Fusarium
Sort on Protein
Sort on Vitreosness
-RGVIEWI]SYVTVSX

We are continuously
looking for new distributors.
bomill.com | [email protected]

World Grain: Many large mills now have very well


HTXLSSHGODERUDWRULHVRIWKHLURZQWKDWPDNHWKHPPRUHDQG
PRUHLQGHSHQGHQW'RHVWKDWDSSO\WRRXUWUHDWPHQWWRR"
Mattutat: That is a very welcome development. And with
our training courses and workshops, we ourselves make a
FRQWULEXWLRQWRWKHWUDQVIHURINQRZOHGJH1HYHUWKHOHVVWKH
PLOOVQHHGFDSDEOHSDUWQHUVHVSHFLDOO\ZKHQLWFRPHVWR
optimizing raw materials. Because the pressure of innovation is increasing all the time, and the half-life of the products is getting shorter and shorter. The mills need tailormade, high-end solutions.
Dr. Lutz Popper:7KDWVZK\ZHJLYHVRPXFKDWWHQWLRQ
WRSUDFWLFDODSSOLFDWLRQVUHVHDUFK:HXVHRXUODERUDWRULHV
RXUSLORWSODQWRXUELRWHFKQRORJ\DQGRIFRXUVHRXUPDQpower to create new knowledge. And we pass on this lead
in practical knowledge to the international milling industry
through our products.
World Grain: But these challenges to the mills differ
enormously from one part of the world to another. How can
DVLQJOHFRPSDQ\GHDOZLWKVXFKDGLYHUVLW\RISUREOHPV"
Mattutat: %\ EHLQJ UHSUHVHQWHG DURXQG WKH JOREH :H
KDYHHLJKWDIOLDWHVDEURDGVRPHRIWKHPZLWKWKHLURZQ
UKHRORJLFDO ODERUDWRULHV DQG WULDO EDNHULHV DQG PL[LQJ
equipment of their own, too. That means we are very familiar with the regional markets and local customs.
Popper: We also use this worldwide presence to test new
SURGXFWV)RUH[DPSOHZHUHFHQWO\GHYHORSHGDVXEVWLWXWH
IRUD]RGLFDUERQDPLGH:HVHQWWKLVFRPSRXQGWRRXUIRUHLJQDIOLDWHVLQ$VLDDQGDOVRWR0H[LFRIRUWHVWLQJDQG
got quite divergent results. The effects were very different

For more information, see Page 114.

100

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

FEATURE: KEEPING AHEAD WITH ENZYME DESIGN

in the individual countries and products.

From left, Anke Wollgast, Katja Runkel, Dr. Lutz Popper, Sven Mattutate and David Nolte examine
uncooked pasta.

World Grain: Do you mean to say the


HIFDF\RIHQ]\PHVGHSHQGVRQWKHUHgion in which they are used?
Popper: That is just one point. There
DUHPDQ\IDFWRUVLQYROYHGLQRXUWUHDWPHQWWKDW\RXGRQWWKLQNRIDWUVW7KH
results can differ widely even within one
and the same country. Take Mexico, for
example. If you bake bolillos (the lightcolored wheat rolls popular there), you
get different results in Mexico City from
WKRVH RQ WKH FRDVW ZLWK WKH VDPH RXU
There is a difference of 2,300 meters
in altitude, and therefore a difference
in oxygen partial pressure. An oxidase
may well have 20% less effect.
World Grain: So that doesnt exactly
PDNH WKH FKRLFH RI WKH ULJKW RXU LPprover easier.
Popper: Im certain that these and
many other factors will have to be tak-

APS - 
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NEW PRECISLEY
ENGINEERED
CLAMPING FLANGE

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For more information, see Page 114.

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

since 1913

WE MASTER METAL
101

Ambros Schmelzer & Sohn GmbH & Co KG ^t'W

FEATURE: KEEPING AHEAD WITH ENZYME DESIGN

en into account to a much greater extent in the future. What are the climatic
FRQGLWLRQVRQWKHVSRW":KDWRXUVDUH
there in the region? And what applications? How well are the employees
trained? What is the technical equipment of the bakeries like? A spiral
mixer yields different results from a
dough breaker. All these aspects play
D UROH LQ WDLORUPDGH RXU WUHDWPHQW
strategies. That is why we speak of
enzyme design.
World Grain: So in future it will be a
question of making precise adjustments
to known, existing agents rather than using completely new enzymes?
Popper: Yes, exactly. That is the
trend we are observing. Its true that
exciting new possibilities crop up again
and again. At present, for example, we
see interesting potential applications for
glycolipases. But generally speaking,

RXUWUHDWPHQWZLOOEHDFDVHRIJRLQJ
into greater depth, of optimization and
detailed work.
Runkel: I must contradict you
there. With pasta products the situation is completely different. The application is still in its infancy. Many
manufacturers dont yet know that
enzymes can be used. So we are often
asked: Enzymes? What do we want
with them in our noodles? But then,
when we are on the spot and demonstrate to the customers how special pasta enzymes can improve the
bite of the noodles and reduce their
stickiness, they get a great surprise.
The stickiness of the cooked noodles
is an important topic, and the customers realize that enzymes offer a very
simple way of enhancing the quality
of their products.
World Grain: That has been common practice in baking for years. Will

there come a time when ingredients like


YLWDO JOXWHQ SUHJHODWLQL]HG RXU RU
ascorbic acid are supplemented or replaced by enzymes?
Popper: That is happening already,
in some cases. We can imitate the efIHFW RI WKH HPXOVLHUV LQ D QXPEHU RI
ways. That is not restricted to the use
of DATEM esters; it also applies to SSL
and monoglycerides. And there we come
to an aspect that has been given far too
little attention in the past: enzymes have
an excellent ecobalance. The amount
used is only a fraction of the quantity of
other additives needed. Compared with
HPXOVLHUV WKH XVDJH OHYHO RI WKH FRUresponding enzymes is only one hundredth or even one thousandth.
In the case of ascorbic acid, it is
one tenth. That means less of a burden on the environment even while the
active agents are being produced, and it
saves transportation, energy and storage

For more information, see Page 114.

102

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

FEATURE: KEEPING AHEAD WITH ENZYME DESIGN

costs. And enzymes can help to lower


the energy requirement in the preparation of foods, too, for example, by reducing their viscosity or facilitating the
breakdown of carbohydrates.
Wollgast: We recently had a concrete
example of that in our rheological laboUDWRU\$FXVWRPHUVHQWXVDZDIHURXU
that had a much too high water absorption rate of 61%.
Far too much water had to be added
during preparation of the dough in order
WR DFKLHYH D XLG EDWWHU %XW ZLWK ZDfers and biscuits, all the moisture you
put in has to be taken out again later by
evaporation.
So the baking process took quite a
ORQJ WLPH %XW ZLWK D WLQ\ DPRXQW RI
hemicellulase we were able to adjust
WKHRXULQVXFKDZD\WKDWWKHGRXJK
didnt absorb so much water from the
start and could be baked much faster.
That is far more economical in terms

of money and time, of course.


World Grain: A better ecobalance, less
additives, lower storage costs these are
DOO LPSRUWDQW DVSHFWV RI FRXUVH %XW LW
LV WKH EDNHUV WKDW EHQHW PRVW E\ WKHP
Where are the advantages for millers?
Popper: Ultimately it is always the
downstream manufacturer who provides
feedback on the products. In this case
its up to the miller to tell his customHUV 7KLV RXU LV VR HIFLHQW WKDW \RX
QHHG OHVV HPXOVLHU OHVV YLWDO JOXWHQ
OHVVSUHJHODWLQL]HGRXU0LOOHUVPXVW
convince their customers of this addiWLRQDO EHQHW WKLV YDOXHDGGHG DJDLQ
DQGDJDLQ%XWLQWKHHQGLWLVSUHFLVHO\
these distinctive features that enable a
mill to stand out from its competitors
DQGFUHDWHDVWURQJHUSUROH
We want to hear from you Send comments and
inquiries to [email protected]. For reprints of
WG articles, e-mail [email protected].

For more information, see Page 114.

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

Mhlenchemies team of
experts participating in the
interview:
Dr. Lutz Popper, head of
Research and Development
Sven Mattutat, Trial Bakery/
Technical Sales, head of the
applications team for Africa
David Nolte, head of the Milling
Laboratory
Anke Wollgast, Rheological
Laboratory
Katja Runkel, applications
technologist, Pasta Laboratory

For more information, see Page 114.

103

SUPPLIER NEWS

Ocrim develops multi-function grain analyzer


CREMONA, ITALY Ocrims Research &
Development group has developed an on-line
system: the Multifunction Grain Analyzer (onlineMGA). Upon the debut of this technology,
the company said that this system was developed to satisfy the milling markets needs concerning the continuous control and management of the milling process. The main objective, it said, is to combine the management of
the grains blending with the conditioning.
Ocrim said that the onlineMGA was deVLJQHG WR LPSURYH WKH TXDOLW\ RI WKH QLVKHG
product, guarantee the constant time of the
RXU SURGXFHG REWDLQ D KLJKHU H[LELOLW\ RI
the plant and reduce the maintenance costs.
The control, in real time, of the production
process is gaining more and more importance.
Proteins and moisture are the wheat chemical
SDUDPHWHUVWKDWDUHYHULDEOHDQGPDQDJHDEOH
during the cleaning and conditioning phases.
When the onlineMGA is installed along the
milling line, it is able to measure both proteins
and moisture parameters.
Near infrared Spectroscopy provided a base
for Ocrims development of the reading system
on VIS-NIR technology. Ocrim said this method provides better accuracy of the readings and
a real-time surveying since it acts directly on
water and protein molecules.
The onlineMGA can be employed in several critical points of the milling process due
to the absence of bulky installation structures

and thanks to NIR innovative technology connected to an advanced machine control system.
Ocrim said that the onlineMGA guarantees
high performances that surpass the simple control of the proteins values and moisture management thanks to its combination with the au-

sitioned at the reception, the device can measure the percentage of moisture of the whole
product lot, allowing the immediate control
and valuation of the incoming grains, the company said.
By means of Ocrims

tomated management system and through the


continuous and constant cereal analysis.
According to Ocrim, the most innovative
aspect is the employment of the onlineMGA
in the second conditioning. This removes the
problem concerning measurements on an already wet product. Ocrim said that a continuous retroactive adjustment can be carried out
on the amounts of water added in both dampening phases in order to obtain a percentage of
moisture required, constant in time.
The onlineMGA also can be employed during the raw material reception at the plant. Po-

@mill management,
all the parameters obtained during the various sessions can be recorded and combined with the various lots of
operation and storage, providing traceability of
the product.
The onlineMGA can measure the protein
levels in the grain at the same time the wheats
moisture is being analyzed. The system of
traceability of Ocrims @mill allows the combination and archive of the related protein
value for each product combined in the lot and
operation phase, Ocrim said.

MacGregor appoints vice-president, head of China business


HELSINKI, FINLAND MacGregor announced on Sept. 22 the appointment of
Zhengyu Li as vice-president, head of China,
effective Oct. 1. Li drives the development
of MacGregor business in the most important market in the marine industry. He will
EH D PHPEHU RI WKH 0DF*UHJRU *URXS H[ecutive team and based in Shanghai, China.
Li has over 25 years of international busiQHVV H[SHULHQFH GXULQJ ZKLFK KH KDV KDG

various leadership positions in global companies like General Electric and Caterpillar
LQ WKH $VLD 3DFLF UHJLRQ +H MRLQV 0DFGregor from Caterpillar, where he was the
innovation director.
We are very happy to welcome Mr. Li to
MacGregor, said Michel van Roozendaal,
president, MacGregor. I am convinced that
KLV ORQJ DQG YDOXDEOH LQGXVWU\ H[SHULHQFH
will contribute to our success in China.

MacGregor provides
solutions and services
for handling marine cargoes, vessel operations,
offshore loads, crude/
LNG transfer and offshore mooring. It is part
of Cargotec, which had
sales of 3.4 billion in
2014 and employs 11,000 people.

over the last 10 years, which totals around 40


million. The company was able to double its
production capacity. The growth in production was coupled with an increase in human
resources. The company now has 200 employees. All of this growth has resulted in a 50%
sales increase, the company said.

Symaga said it is participating in some of the


main grain storage projects for 2015, such as
the construction of a rice re-processing facility
in Thailand.
Symaga said it is also strengthening its business in Indonesia, supplying silos for a grain
import terminal in Southeast Asia.

Li

Symaga surpasses production record


SAN JUAN, SPAIN Symaga in July
reached and surpassed its production record,
with a total steel manufacturing of 4,700
tonnes throughout the month, which means a
daily production of about 200 tonnes.
Symaga said the record is the result of a
continuous investment in new technologies
104

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

For more information, see Page 114.

SUPPLIER NEWS

Superior joins largest ever U.S.-led trade mission to Africa


KINDRED, NORTH DAKOTA, U.S. Superior Manufacturing, located in Kindred,
North Dakota, U.S., and Beresford, South
Dakota, U.S., is one of more than 100 U.S.
companies who went to Africa for the U.S.
Department of Commerce-led Trade WindsAfrica trade mission and business forum.
Trade Winds-Africa is the largest-ever U.S.
government-led trade mission to Africa, Superior Manufacturing said.
Africa presents an incredible opportunity
for global U.S. companies, said Donald Nay,
UHJLRQDO VHQLRU 86 FRPPHUFLDO RIFHU WKH
highest-ranking commercial diplomat in SubSaharan Africa. We are excited to bring these

companies to the continent, connect them to


promising opportunities, and get them on the
right path to success.
Trade Winds is a business forum and series
of business-to-business meetings in Johannesburg, South Africa, plus seven optional trade
mission stops in Angola, Ethiopia, Ghana, Kenya, Mozambique, Nigeria and Tanzania. At
each mission stop, attending companies met
directly with government leaders, market experts and pre-vetted potential business partners
in the region.
Superior participated in the business forum
and a mission stop in Angola. Superior manufactures a complete line of farm and commer-

cial grain bins with capacities ranging from


1,850 bushels to 792,250 bushels, as well as
grain dryers and grain handling equipment.
Africa presents a great opportunity and
unique challenge for us, said Jon Engelstad,
Superior Manufacturings International sales
manager. We are currently doing business in
several countries in Sub-Saharan Africa and
DUHH[FLWHGDERXWMRLQLQJWKLVPLVVLRQDQGQGing more inroads to success in the continent.
Sub-Saharan Africa is a promising market
for U.S. exporters. It is home to six of the 10
fastest-growing economies in the world and
has a rapidly growing middle class, Superior
Manufacturing said.

Other website features include:


An easy-to-use Find My Dealer function
that allows visitors to locate the MFS/York/
Stormor dealer(s) nearest them based on proximity and desired product.
Video Vault page where visitors can view
all company videos, as well as videos from
other Global Industry divisions.
A highly unique Dare To Compare section where visitors can view and assess MFS/
York/Stormor products and components side
by side with competitive products.
News & Events sections including schedules of upcoming tradeshow participation
around the world and the latest updates on innovative new products.
The development and creation of the new

MFS/York/Stormor website has been in the


works for quite a while, Faltin said. We felt
the investment in time was a small price to pay
in order to launch a site that provides our dealers and customers with quick and easy access
to all of the information and materials they
need to determine the best solutions for their
grain storage and handling needs.
MFS/York/Stormor is a division of Global
Industries, Inc. Headquartered in Grand Island,
Nebraska, U.S., Global Industries (www.globalindinc.com) includes four divisions located
in Nebraska and Kansas. In addition to MFS/
York/Stormor, which is also located in Grand
Island, Global divisions include Nebraska
Engineering Company (NECO); Hutchinson/
Mayrath and Sentinel Building Systems.

MFS/York/Stormor launches new website


GRAND ISLAND, NEBRASKA, U.S.
MFS/York/Stormor announced on Sept. 17
the launch of its new website, www.mfsyork.
com. The new site has been designed to offer
a user-friendly experience with intuitive navigation and functionality, the company said. It
provides visitors access to detailed information
on both the company and its full portfolio of
on-farm and commercial ag products.
The new site and the enhancements were
all designed with our customers and visitors
in mind, said MFS/York/Stormor President
'DQ)DOWLQ6LPSOLHGVLWHQDYLJDWLRQVHDUFK
capabilities and constantly updated product inIRUPDWLRQDQGVSHFLFDWLRQVKDYHEHHQGHYHORSHGWRPDNHLWIDVWDQGHDV\IRUYLVLWRUVWRQG
the product or information they need.

DER

ANTRIEB

Q Reliable
Q Versatile
Q Global

NORD DRIVESYSTEMS:
Q  Worldwide available
Q  Subsidiaries in 36 countries
Q  Agents in 52 countries

www.nord.com/locator
Headquarters:
Getriebebau NORD GmbH & Co. KG
Fon +49 (0) 4532 / 289 - 0
[email protected]

For more information, see Page 114.


The

Gear Unit

The

Motor

The

Drive Electronic

Q Strong bearings
Q High corrosion protection

Q High efficiency
Q Global standards

Q Compact design
Q Easy implementation

Q High power density

Q All operating conditions

Q Protection class up to IP 69K

Member of the
NORD DRIVESYSTEMS Group

SUPPLIER NEWS

Vortex adds agent in Denmark


DARLINGTON, U.K. Vortex announced on Sept. 17 the appointment of
Mespo ApS as its exclusive agent in Denmark. Mespo sells components, machines,
and customized solutions for powder handling manufacturers such as DMN-WestLQJKRXVH)LOFRH[6SLURRZDQG*UHHQwood Magnetics.
We are very pleased to add Mespo to
our line of representatives, said Laurence
Millington, Vortexs director of interna-

tional business. Mespo has a great cooperation with many manufactures of powder processing equipment around Europe.
With its convenient location in Ringsted
on Zealand, Mespo can respond to our
Danish customer needs in a short amount
of time.
Mespo founder Bo Christoffersen, with
more than 20 years background in powder
handling industry, has extensive experience and knowledge of powder technolo-

gies and application installations.


The satisfaction of our customers is essential and ensures the future of our work.
The selection of quality components and
our suppliers expertise provides the basis
for this, said Christoffersen. Based on a
close dialog with our customers, we provide the best possible solution by means of
functionally, quality and price each time.
For more information on Mespo, visit
the website www.mespo.dk.

TORNUM to deliver silo storage facility to Romania


KVANUM, SWEDEN TORNUM announced on Sept. 4 that it is going to deliver a grain silo plant to the port of Constanta in Romania.
The investor is Chimpex S.A., a Romanian subsidiary of Swiss-based Ameropa.
On-site work operations are under way and
the silo installation is expected to be completed toward the end of 2016. The terminal will have 20 silos, each with 10,000
tonnes of storage capacity.

TORNUM was selected due to its quality of provided services, its experience in
WKHHOGDQGWKHJXDUDQWHHWKDWWKLVSURMHFW
will identify itself with Ameropas norms
RI TXDOLW\ DQG HIFLHQF\ VDLG 0LKDL 3Dnait, director general of Chimpex. Its well
known that Chimpex mainly focuses on the
quality of its services, on competiveness
and credibility of its business. TORNUM is
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STOP.
GRAIN.
ABRASION.

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competency and competiveness.
This grain terminal will strengthen TORNUMs position as one of the leading suppliers to the international grain industry, said
3HU /DUVVRQ 725180V FKLHI H[HFXWLYH
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TORNUM AB, located in Sweden, offers complete solutions for drying, storage
and conditioning of grain for new plants
and expansions of existing facilities.

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Sioux Rubber & Urethane

2620 Hawkeye Drive


visit us at
Sioux City, IA 51105 www.siouxrubber.com
866-603-8661
Fax 712-252-3258
email: [email protected]

Strength AND Reliability


6XSHULRUcommercial binsDUHPDGHIURPWKH
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For more information, see Page 114.

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

more information, see Page 114.


For


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107

SUPPLIER NEWS

4B Components hires national sales manager


MORTON, ILLINOIS, U.S. 4B Components Ltd., a worldwide manufacturer of material handling and electronic components
for bucket elevators and conveyors, announced on Oct. 9 the recent hire of Randy
Longbrake as national sales manager for the
material handling division.
Longbrake has experience within the inGXVWU\ KDYLQJ VSHQW WKH ODVW YH \HDUV DW
a local design/build millwright company

where he was instrumental in acquiring


new customers, and previously with a major
OEM where he focused on customer service.
4B is a great company to be a part of.
They offer great service to their customers
and continue to grow through that service
and the innovative products that they develop, Longbrake said.
Johnny Wheat, 4B president, said, We
are very excited to welcome Randy to our

team. Not only will he


help us with our continued focus on customer relationships,
but his experience in
WKHHOGZLOOKHOSXVWR
ensure that we continue to develop the innovative solutions that
our customers need.

Longbrake

Global Industries divisions receive safety honors


GRAND ISLAND, NEBRASKA, U.S.
Global Industries, Inc. announced on Oct. 5
that all four of its divisions were honored with
awards at the recent annual conference of the
Great Plains Safety and Health Organization.
MFS/York/Stormor and Hutchinson/
Mayrath were named as a silver award winner during the event. This is the seventh consecutive year it has received this award and
WKHUVWIRU+XWFKLQVRQ0D\UDWK7KHDZDUG
is given to recognize outstanding records of
company safety and innovative techniques

and methods developed to support and encourage safety and health in the workplace,
the company said.
Additionally, Nebraska Engineering
Company (NECO) and Sentinel Building
Systems were named bronze award winners
for their continued efforts and improvements
in creating a safe work environment for its
employees. All four Global Divisions have
achieved multiple awards from Great Plains
Safety and Health Organization over the last
10 years, from bronze to gold.

Global Industries places a lot of emphasis on the well-being of our employees and is
truly committed to being an industry leader
when it comes to promoting healthy lifestyles and offering the safest work environment possible, said Chief Davidson, Global
vice-president of manufacturing. The fact
that were consistently recognized for these
efforts demonstrates were on the right path
and is one of the reasons why Global employees tend to stay Global employees for
many years.

For more information, see Page 114.

108

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

SUPPLIER NEWS

AGCO opens new manufacturing base in China


SHANGHAI, CHINA AGCO, a manufacturer and distributor focusing on agricultural equipment, announced on Sept. 9 the
opening of its brand new manufacturing base
in Changzhou, China. AGCO has invested
$300 million in factories in China.
China is one of the worlds largest farm
equipment markets and AGCO has attached
great importance to the market, said Martin
Richenhagen, chairman, president and chief
H[HFXWLYHRIFHURI$*&27KHRSHQLQJRI
the new Changzhou location will further enhance our R&D and manufacturing capacity
in China, and is a critical step in the implementation of our development strategy for
WKH$VLD3DFLFUHJLRQ
Since entering China in 2001, AGCO has
taken a series of measures to expand the
EXVLQHVV DQG EHQHW ORFDO FXVWRPHUV 7KH
establishment of the new Changzhou facWRU\ VKRZV LWV FRQWLQXRXV FRQGHQFH DQG
commitment to the Chinese market, AGCO
VDLG7KHQHZVLWHZLOOVHUYHERWKGRPHVWLF
as well as export markets and covers a total
area of nearly 200,000 square meters. Es-

tablished as a manufacturing and R&D base


with state-of-the-art technology, the company said it aims to gradually reach an annual
capacity of 20,000 tractors, 30,000 engines
and 40,000 rear axles and transmissions, and
further promote the localization of product
manufacturing in China, the company said.
AGCO has already invested $300 million
into existing and new manufacturing sites
in China, said Gary Collar, AGCO senior
vice-president and general manager of Asia
3DFLF:HDUHQRZRSHUDWLQJDWRWDORIYH
manufacturing sites in Changzhou, Shanghai,
Daqing and Yanzhou, respectively, across the
country and employ more than 1,500 people.
Our whole-machine and spare parts
equipment produced in Changzhou are for
the domestic market, but are also exported
WRRWKHU$VLDQDQGLQWHUQDWLRQDOPDUNHWV:H
aim to offer comprehensive solutions for
professional farmers feeding the world and
to promote the agricultural mechanization
progress of China and the whole world.
Changzhou is a strategic location for our
long-term development, said Fred Yang,

AGCO vice-president and managing director


RI&KLQD7KH&KDQJ]KRXVLWHZLOOQRWRQO\
serve the domestic market, but also become a
major global hub of AGCOs brand new product series, Global Series 70 to 130-hp tractor
range. It will provide more opportunities for
AGCO to increase its production capacity and
GHYHORSOHDQSURGXFWLRQHIFLHQFLHV
7KHUH LV D NHHQ GHPDQG IRU KLJKHQG
agricultural machinery products in China
EXW ZLWK LQVXIFLHQW VXSSO\$*&2 KDV LQvested strategically in China and aims to become the premium international agricultural
equipment supplier that leads the agricultural equipment market trends of the counWU\$*&2VDLG7KHFRPSDQ\QRZRSHUDWHV
four key brands in China: Massey Ferguson,
Valtra, Dafeng King, and GSI, and continuously introduces and manufactures premium
medium and high end products, in order to
provide more mature and feasible solutions
for users.
Since 2011, AGCO has purchased GSI,
Johnson System Inc., and Intersystems
Holdings.

World Grain for iPad.


The leading authority on the grain, flour and feed
industries offers a new medium to access news,
features and relevant content from anywhere.
Download the app today from the App Store
http://bit.ly/1wex3mv

THE INDUSTRY AT YOUR FINGERTIPS


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

109

PRODUCT SHOWCASE

Impact machine Matador

Chilled rolls

Complete design systems

The new Bhler impact machine Matador destroys insect eggs in flour and semolina without exception. A mortality rate of 99.5%,
the multiple impact in the cross-flow principle
and a direct product flow offer maximum food
safety and energy savings. The five finely graded sizes with throughput rates from 1 to 45
tph cover a wide range of capacity. Up to 30%
energy savings and low maintenance costs reduce expenses significantly.

Yenkar is the export arm of Yenar Dokum,


which is an ISO 9002-certified Turkish manufacturer of chill rolls. The company produces
chilled iron rolls for the milling, crushing and
flaking industries by using a double-pour
centrifugal casting system (Spin Cast). Yenkar
produces a range of double-poured, centrifugal-cast chill iron rolls from 150 millimeters (6
inches) up to 600 millimeters (24 inches) on
outside diameter. Lengthwise, they range between 300 millimeters (12 inches) and 2,000
millimeters (79 inches).

Lambton is offering a complete line of commercial grain silos up to 19,288 tonnes capacity, support systems and handling equipment
up to 1,200 tph, and also assists customers/
representatives with complete layout and flow
designs in 2D and 3D imaging to better serve
and guide the needs of each project. For more
information about these Lambton products
and services, visit www.lambtonconveyor.com

Infratec grain analyzer

Bolt-together bucket elevator

Energy conservation

The FOSS Infratec NOVA grain analyzer has


been approved for analysis of moisture in
grain by the National Metrological Institute in
Germany (known as PTB). The approval was
granted after an extensive evaluation of the
instrument assessing not only its performance
in moisture analysis, but also the robustness
and security of the software systems. Further
approvals for the Infratec NOVA are under
way in all countries where the Infratec 1241 is
currently approved such as France, the United
States and Australia. These are expected in the
near future.

MFS/York/Stormor, a division of Global Industries, Inc., recently released a bolt-together


M48 bucket elevator, work platform and distributor platform design. The new M48 bucket
elevator design offers capacity ranges from
10,000 bushels per hour (255 tonnes per
hour) to 30,000 bushels per hour (762 tonnes
per hour), the company said. The new design
consolidates three previous head profiles into
one design that minimizes wear and improves
flow. The bucket elevator head now comes
equipped with a 3-piece hood.

NORD Drivesystems said its equipment is


prepared to meet the new European standard
that expands energy efficiency requirements
to the entire motor and AC drive system. The
new EN 50598 provides a method to determine a numeric value for wasted energy. This
new European standard will be adapted to the
international standard IEC 61800-9 later this
year. NORD Drivesystems energy and premium
efficient motors paired with a NORD AC Vector
Drive already meet the highest level of the new
power loss regulation, IES2, NORD said.

110

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

FUTURE OF FLOUR
A Compendium of Flour Improvement
Future of Flour is the first comprehensive
compendium of flour 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, flour treatment or quality testing.

The team of authors led by the acknowledged


expert Dr. Lutz Popper (Mhlenchemie) gives
special attention to the nutritional and technical
aspects of flour fortification. Mill managers will
find answers to the most common questions
asked about flour and suggestions for solving the
typical problems that occur in flour 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

Rye Flour

Wheat: More than just a Plant

Composite Flours

The Milling Process

Flour Fortification

Global Wheat Trade

Flour Treatment

Wheat Quality in the United


States of America

Premixes and Complete Mixes

Canadian Wheat

Wheat Flour Products in North


America

Australian Wheat

Chinese Steamed Bread

Chinese Wheat: Current


Situation and Prospects

Quality Characteristics of Indian


Wheat

Production of Baked Goods


from Wheat and Rye Flours Methods and Analysis of Faults

Noodles and Pasta

Argentinian Wheat

Future Trends

French Wheat Classes

Determining the Baking Quality


of Wheat and Rye Flour

Conversion Tables and


Abbreviations

Keyword Index

Fundamentals of Rheology and


Spectrometry

The Role of Gluten Elasticity in


the Baking Quality of Wheat

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

9-10 FEBRUARY 2016 | HILTON BARCELONA | SPAIN

CONNECT WITH THE GLOBAL OILSEED COMMUNITY


The second annual Oilseed Congress Europe/MENA
is the only event that provides comprehensive
information on all major oilseed commodities from all
major origins.

Reasons to attend:
The only annual oilseed event for Europe and MENA
with a comprehensive focus on all major oilseed
commodities and all major origin markets
Overarching themes and detailed outlooks for the
oilseed complex
High value event with premium content, organized by
HighQuest oilseed experts
Network with global traders, buyers, suppliers, from
all origin markets in sunny and warm Barcelona.

Follow us on Twitter at #OCE16 for agenda, speaker,


and sponsorship updates.
WORLD GRAIN SUBSCRIBERS USE CODE WG-OCE16 TO RECEIVE 10% OFF REGISTRATION

ATTEND

SPONSOR

SPEAK

For more information, see Page 114.

Learn more and register at


www.oilseedcongress.com

CONFERENCE CO-CHAIRS
Andrew Osborne and Philippe de Laprouse
FOR SPONSORSHIP DETAILS AND INFORMATION
Joy OShaughnessy
[email protected] +1 207 244 9544, ext 103

WORLD GRAIN ARCHIVE

1985
'HDQFH0LOOLQJ&R3W\/WGD
4XHHQVODQG $XVWUDOLDEDVHG FRPSDQ\ ZLOO HVWDEOLVK D RXU PLOO LQ
0HOERXUQH 9LFWRULD $XVWUDOLD
The plant, which will be located in
D UHQRYDWHG RXU PLOOLQJ EXLOGLQJ
will have a capacity of 185 tonnes
of wheat per 24 hours upon its comSOHWLRQVFKHGXOHGIRUPLG
$UFKHU 'DQLHOV 0LGODQG &R
has reached an agreement in prinFLSOH WR DFTXLUH WKH $PD /RXLVLana, U.S., export grain terminal
of Farmers Export Co., Overland
Park, Kansas, U.S.
6HSDUDWHO\$'0VDLGLWZDVQHgotiating to acquire several oilseed
extraction operations of Unilever
P.L.C. at Europort, Netherlands,
and at Spyck and Hamburg, Federal
Republic of Germany.
,Q DQQRXQFLQJ QDQFLDO UHVXOWV
IRUWKHUVWKDOIRI+DUU\+DUrison, chairman of Simon Engineering P.L.C., revealed that the company has closed its grain terminals
construction business.
He cited the decline in margins
IURP WKLV EXVLQHVV LQ WKH UVW KDOI
RIDVRQHRIWKHIDFWRUVLQWKH
SURWDELOLW\ IDOOLQJ VKRUW RI PDQagements expectations.
Shutting this business means that
Simon Engineering, in the grain terPLQDOV HOG ZLOO IRFXV RQ GHVLJQ
and project management, rather
than on an entire civil engineering
program.

1995
&DUJLOO $UJHQWLQD 6$ UHFHQWO\
announced a plan to invest $130
million to stimulate competiveness
on the international market over
the next three years.
$FFRUGLQJ WR 6FRWW 3RUWQR\
president of the wholly-owned subsidiary of Minneapolis, Minnesota,

86EDVHG&DUJLOO,QFKDOIRIWKH
investment will be made within the
next year for modernization of three
oilseed-crushing facilities, including $31 million for expansion of its
multiple grains crushing mill in BaKLD%ODQFD$UJHQWLQD
&DUJLOO$UJHQWLQDKDVRSHUDWHGLQ
$UJHQWLQDVLQFH,WLVWKHFRXQtrys leading exporter of agricultural
products and is second-largest in
terms of overall exports.

age and transshipment of grain.


European judges have issued a
ruling that prevents E.U. countries
from turning themselves into GMfree zones.
The Court of Justices decided a
ban on the cultivation of genetically
PRGLHG FURSV LQ SDUW RI $XVWULD
was illegal. The decision angered
environmental campaigners, who
called for a review of E.U. law.
The ban was imposed by the govHUQPHQWRI8SSHU$XVWULDRQWKHEDFernando T. Coutinho, formerly sis of massive public opposition to
with the Santista Group and the the technology. However, the demoBrazilian Wheat Board, and Luiz cratic wish of the population has efCarlos Ribeiro, formerly an exec- fectively been overruled by the E.U.
XWLYHZLWK7ULQL6$KDYHIRUPHG and its courts.
a new wheat trading company,
The E.U. said its own food and
Cotrig Comercio de Graos, crop watchdogs, the European Food
Ltda. The new company will focus 6DIHW\$XWKRULW\ KDG QRW SURYLGHG
on buying domestic and imported any evidence of health or environZKHDWIRU%UD]LOLDQRXUPLOOFXV- mental dangers.
tomers.
Coutinho and Ribeiro combine 30
Brazils railway operators say
years of experience in international they plan to invest nearly $4 bilwheat markets through their work OLRQ GXULQJ WKH QH[W YH \HDUV WR
with the now-defunct wheat board, double capacity on their lines.
which had been responsible for supMRS Logistica plans $1.1 bilSO\LQJZKHDWWR%UD]LOVRXUPLOOV lion of investments over the next
before the companys marketing YH \HDUV DQG %UDVLO )HUURYLDV
system was liberalized.
plans to invest $572 million in its
infrastructure and renovation of
2005
LWVHHW
$QRWKHU KLJKO\ DZDLWHG SURMHFW
Bunge, which had until recently rail company CFN Transnorbeen interested only in the Russian destinas aims to join together
market of vegetable oil, plans to grain producing areas in Brazils
establish a chain of 12 elevators in central-western region with two
that country.
ports in the northeast: Suape port
The New York-based company in Pernambuco and Pecem port
has already bought the Kholmsky in Ceara. The project may run as
RXU PLOO ZLWK FDSDFLW\ RI DERXW high as $2.2 billion, according to
130,000 tonnes of grain in the Kras- CFN president Jayme Nicolato.
nodar Territory as well as a grain
$ WKLUG SRUW  ,WDFDL  ZLOO EH
terminal in Rostov-on-Don for $10 linked indirectly via a stretch of
million.
the 2,066 km north-south railroad
,Q WKH QH[W WKUHH WR YH \HDUV project that connects Paras state
the company is going to buy and/or capital Belem and Goias state
build another 10 to 12 elevators to capital Goiania. The project is exprovide warehousing facilities for a pected to take some pressure of
future oil extraction plant in the Vo- ports located in the more industrironezh Region, as well as for stor- alized South.

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

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113

ADVERTISER INDEX
AFIA .......................................................87
AG Growth International .......................2
Alapala ................................................. 69
Altinbilek .............................................. 83
Amandus Kahl GmbH & Co. KG ......... 25
Ambros Schmelzer & Sohn GmbH ... 101
Bastak Gida Makine Medikal ........... 103
Behlen Mfg. Co. ..........................31, 105
BoMill ................................................ 100
Brock Grain Systems ........................... 41
Bhler AG .......................................58-59
Carter Day ........................................... 51
Chief Industries, Inc. ..............................3
Chopin Technologies ........................... 90
Cimbria A/S .......................................... 45
Consergra S.L. ................................... 103
DAEWON GSI Co. Ltd. ........................ 71
Denis .................................................... 14
Douglas Products ................................ 67
Erkaya.Laboratory Instruments
& Flour Improvers ............................... 82
The Essmueller Co. ............................ 115
FLITECH S.r.l. ....................................... 44
Frame ................................................... 16
Fundiciones Balaguer S.A. .................. 19
Future of Flour .................................. 111
Gamet Manufacturing ........................ 80
GEAPS .................................................. 88
Getriebebau NORD GmbH
& Co. KG ............................................ 106
Global Industries, Inc. ......................... 18
Great Western Mfg. Co., Inc. .............. 92
The GSI Group Inc. .............................. 79
Hi-Roller ............................................... 13
IMAS Integrated Machinery
Systems ................................................ 53
Industrias Machina Zaccaria S/A ....... 54
Ingenieria Mega SA ............................ 92
Irle Kay Jay Chill Rolls Pvt. Ltd. .......... 64
Kepler Weber ....................................... 65
Lambton Conveyor .............................. 55
Leland Industries Inc. .......................... 72
Leonard Breitenbach GmbH ............... 86
Louis Dreyfus Corp. ............................. 27
Maxi-Lift, Inc. ...................................... 21
Mill Service Spa ................................... 47
Mill Teknoloji ..................................... 102
Milltec Machinery Pvt Ltd ................. 108
Molino Makina .................................... 73
Mhlenchemie GmbH ......................... 11
Muller Beltex ....................................... 74
Mulmix Facco s.r.l. ............................... 93

MYSILO Grain Storage Systems Co. ... 97


Neuero ................................................. 81
OBIAL ................................................... 75
Ocrim S.p.A. ......................................... 23
Oilseed & Grain Trade Summit ......... 112
Omas Srl .............................................. 77
Perten Instruments AB ........................ 15
Petkus Technologie GmbH .................. 68
Pfeuffer GmbH .................................... 13
Prive S.A. ............................................. 50
Rter Maschinen GmbH & Co. KG ..... 68
Sangati Berga ...................................... 85
Satake .................................................. 35
SCAFCO Corp. ................................... 116
Sefar Filtration ..................................... 39

Selis Ltd. Str. ........................................ 91


Silos Cordoba ...................................... 62
Sioux Rubber & Urethane ................. 107
STIF ...................................................... 61
Suncue Co Ltd. .................................... 63
Superior Manufacturing ................... 107
Symaga ................................................ 49
Tapco, Inc. ...............................................9
Tornum AB ........................................... 57
Tri-States Grain Conditioning, Inc. ..... 86
Ugur Machine Industry ...................... 6-7
Victam International ........................... 99
Vigan Engineering S.A. ..........................4
Walinga Inc. ......................................... 98
Yenar .................................................... 43

Reader Information Form


International Faxback Program
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.

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

For more information, see Page 114.

&XVWRP3URMHFW'HVLJQ

&RPSOHWH
V\VWHPVIRU
JUDLQVWRUDJH
DQGKDQGOLQJ

5400 E. Broadway Avenue


PO Box 11215
Spokane, WA 99211-1215 USA
For more information, see Page 114.

Phone: +1-509-535-1571
E-mail: [email protected]
www.SCAFCO.com/grain

SCAFCO will work with you to plan


and manufacture a site specific to
your unique needs. Our engineers
will design to any snow, wind, or
seismic load condition. SCAFCO
offers the widest variety of storage
products in the industry, and we can
accomodate for limited space on
the job site.
With SCAFCO, you can be assured
that you will receive a premium
quality product built to the highest
design and safety standards.

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