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The International Business Magazine for Grain, Flour and Feed

April 2011

Family
business
expands
Tondo SA adds flour mill
at its complex in Brazil
Wheat trade
projected to
double by 2050
Focus on
Turkmenistan
www.World-Grain.com

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contents

www.World-Grain.com

VOLUME 29 NUMBER 4 APRIL 2011

FEATURES
28

Wheat trade to double by 2050


USW study finds that growth in consumption over next 40 years will
be in regions with minimal wheat production.

38

MERCOSUR influence continues to grow


South American countries are increasing grain and oilseed exports to
China and the E.U.

44

28

Expanding the family business


Tondo SA, one of Brazils biggest millers, is adding a flour mill at its
complex in Caxias do Sul.

50

Whole grains revolution


Latin America, China among next frontiers for whole grains growth.

56

GEAPS Exchange 2011


Education and safety are the focus at the 82nd annual event in
Portland, Oregon, U.S.

68

HGCA/nabim Conference
British millers remind growers theres demand for domestic wheat.

74

Grain operations
Carbon dioxide monitoring of grain has the potential to save both
money and lives.

80

Japan coping with disaster


Food sector, including milling, damaged little by quake, tsunami.

86

Biofuels market outlook


Production expected to grow significantly in next 10 years,
outstripping supply by 32 billion liters.

88

Biofuels quarterly news review


A review of the latest issues and news affecting the global biofuels
industry.

94

Stopping the stowaways


Use Integrated Pest Management System to send stored-product
pests packing.

98

50

DEPARTMENTS
06
08
10
20

Editorial
Calendar
World Grain News
Grain Market Review:
Coarse grains
22 Country Focus:
Turkmenistan
114 Supplier News
118 Advertiser Index/
Fax Back Form
ON THE COVER: Tondo SAs milling complex in
Caxias do Sul, Brazil.

Victam product and services


A review of some of the products and companies that will
be on display at Victam 2011.

www.World-Grain.com / World Grain / April 2011

Copyright 2011. 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.

from the editor-in-chief

Recovery from
earthquake shows strength

hile it may be premature to make an


assessment at this stage of all the
effects of the earthquake, tsunami
and nuclear power plant problem that hit Japan beginning on March 11, it may be said
with confidence that the countrys grain and
flour milling industries have emerged from
these natural catastrophes showing little
damage. Yes, this good fortune is due mainly
to plants being located in places that did not
feel the full impact of what was one of the
worlds most powerful earthquakes. But it
also importantly stems from not just a strategy of geographic diversification, but from
the efforts of company management and
staffs to respond forcefully and effectively to
a situation that threatened chaos. Instead of a
breakdown in what is one of Japans most essential and, yes, vulnerable food industries,
operations a month or so later have returned
to the pace characterizing that nations highly vaunted efficiency.
Of course, the immediate aftermath of the
devastating earthquake and the awesome
tsunami sweeping across the northeastern
coastal area was devoted to assuring that
staffs were safe and uninjured. Even those
companies that operated plants, such as sales
and distribution centers, a few port elevators
and a single flour mill, nearly in the path of
the disaster lost no employees and sustained
minor injuries. Even plants some distance
from the epicenter experienced brief shut-

Chairman
Charles Sosland
Publisher/Managing Director Mark Cornwell
Director of Advertising Sales
Dan Flavin
EDITORIAL STAFF
Editor-in-Chief
Editor
Managing Editor,
World-Grain.com Editor
Markets
European Editor
Designer

Morton I. Sosland
Arvin Donley
Meyer Sosland
Melissa Alexander
Chris Lyddon
Ryan Alcantara

downs, due to earth vibrations. Considering


that building a flour mill in Japan costs a
multiple of similar projects in other countries, due to building requirements to protect
against earth-rattling episodes, it is certain
that new and greater respect for this process
will emerge. Milling benefited from the fact
that most plants were built in reconstruction
after World War II.
Because of the highly important strategic
decision made in the post-war period of the
1950s that Japan would not invest in expanding domestic food production and instead
would rely on imports of such basic needs
as wheat, the nations milling industry is
primarily built adjoining or near large port
grain-receiving elevators. Yes, large mills
are also located at interior locations near major population centers in the Tokyo Bay area,
but the reliance on ports obviously raised
some early concern about this situation. Fortunately, the northeast coast hit the hardest
is relatively unimportant in wheat receiving.
Yet, again, construction meant to withstand
earth tremors meant the grain elevators stood
on strong foundations.
The principal problems faced by the
grain and flour milling industry center on the
electricity supply and distribution by truck,
as well as the initial overwhelming product
demand due to a spurt of consumer buying.
Because of the breakdown of the Fukushima
Daiichi nuclear plant along with earthquake

damage, electricity supplies were curtailed.


The response was rationing by three-hour or
four-hour blackouts on a rolling basis across
major areas. These power interruptions were
worsened by severe gasoline shortages that
slowed truck transportation. Even with these
cutbacks, which in turn curtailed train service used by most of the commuting public,
none of the flour mills indicated problems
caused by employees not reaching their
jobs. Indeed, the efforts individuals made to
walk to reach their jobs symbolize for many
observers the spirit that has made Japan, a
country with few natural resources, one of
the strongest economies in the world.
While it is appropriate to focus on how
the massive earthquake affected the internal
Japanese flour milling and grain industries,
sight should not be lost of this countrys
position as the worlds largest importer of
grains. It accounts for 10% of global trade
in wheat and feed grains, at 24 million
tonnes. That contrasts with second-ranking
Egypt at 15 million. Japans speedy recovery from this horrible natural disaster not
just symbolizes the power of the countrys
people and industry, but also the strength of
its economy. This combines to promise a
quick return of normalcy to buying of grain
on the world market.

PUBLISHING STAFF
Vice-Chairman
L. Joshua Sosland
President and Publishing Director
Mark Sabo
Vice-President and
Chief Financial Officer
Melanie Hepperly
Audience Development Director
Don Keating
Director of On-line
Advertising and Promotions
Carrie Fluegge
Promotions Manager
Jennifer Morris
Director of e-Business
Jon Hall
Advertising Manager
Nora Wages
Advertising Materials
Coordinator
Debbie Maniez
Digital Systems Analyst
Marj Potts
Circulation Manager
Judith Arnone

WORLD GRAIN (ISSN 0745-8991) Volume 29, issue 4,


is published monthly by Sosland Publishing Co.,
4800 Main Street, Suite 100, Kansas City, MO 64112 U.S.
Periodicals postage paid at Kansas City, MO 64108 U.S. and
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Send returns (Canada) to Bleuchip International, P.O. Box 25542,
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POSTMASTER: Send address changes to WORLD GRAIN,
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Co. All rights reserved. Reproduction of the whole or any
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WORLD GRAIN assumes no responsibility for the validity of
claims in items reported. Sosland Publishing Co. is a division of
Sosland Companies. Inc.

Morton I. Sosland
Editor-in-chief

Editorial and advertising inquiries should be directed to our


world headquarters at 4800 Main St., Suite 100,
Kansas City, Missouri 64112 U.S. Tel: 1-816-756-1000,
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Requests for reprints of articles should be sent to
reprints@sosland.com or call 1-816-756-1000.

April 2011 / World Grain / www.World-Grain.com

The quality of the machinery we

manufacture is only as good as the


buckets in them which is why
we choose Tapco.

Gustaaf Zeeman, Managing Director


EUROPEAN MACHINE TRADING
t Zand, Noord-Holland,
The Netherlands
Janco Zeeman
Technical Director

How Tapco Buckets Help Maintain a


Family Tradition of Quality
For more than 90 years, European Machine Trading has maintained
their reputation as a high quality, family-owned business. In 1988,
the former feed mill decided to manufacture elevators, transport
conveyors, bagging machines
and other equipment for feed
mills, fertilizer plants and dealers.
However, one thing stayed the

same...quality.
STYLE SUPER EUROBUCKET

Our company has been built


on quality, Gustaaf Zeeman of
European Machine Trading says. And quality is what we want in
our products. When you make a machine, the components you
select must be the same quality, which is why we chose Tapco buckets.
HEAVY DUTY Polyethylene Elevator Bucket
Polyurethane Nylon

The polyethylene Tapco Super EuroBuckets are strong, which is


important to fertilizer plant managers. They are tough enough to handle
heavy loads, yet flexible, so they absorb impact from elevator legs,
bypass obstructions and return to their original shape. And, they
dont rust!
With 900,000 buckets in 93 sizes, stocked throughout
the world, Tapco can help take a load off of your mind
and elevators, too. Call us at +1-314-739-9191 or
visit www.tapcoinc.com to find out why
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www.tapcoinc.com

The color blue, when used in connection with elevator buckets, is a U.S. registered
trademark owned by Tapco Inc. 2011 Tapco Inc. All rights reserved.

For more information, see Page 118.

CALENDAR OF EVENTS

MAY
May 2-6
115th IAOM Annual Conference & Expo
Location: San Antonio, Texas, U.S.
Contact: Shannon Henson, director of meetings
and exhibits, IAOM Tel: 1.913.338 3377
Fax: 1.913.338.3553
E-mail: shannon.henson@iaom.info or
info@iaom.info Internet: www.iaom.info
May 3-5
Victam International/GRAPAS
International/FIAAP International
Location: Koeln Messe, Cologne, Germany
Tel: 31 33 246 4404 Fax: 31 33 246 4706
E-mail: expo@victam.com
Internet: www.victam.com,
www.fiaap.com, www.grapas.eu
May 9-13
NCI Short Course: Alternative
Ingredients in Finfish Aquaculture
Location: North Dakota State University, Fargo,
North Dakota, U.S. Contact: Northern Crops
Institute Tel: 1.701.231.7736
Fax: 1.701.231.7235 E-mail: nci@ndsu.edu
Internet: www.northern-crops.com
May 10-12
GAFTA Short Course: Shipping the Goods
Location: Abu Dhabi, United Arab Emirates
Contact: GAFTA Tel: 44 207 814 9666
Fax: 44 207 814 8383
E-mail: training@gafta.com
Internet: www.gafta.com/training
May 11-12
15th Distillers Grains Symposium
Location: Westin Crown Center,
Kansas City, Missouri, U.S.
E-mail: vmharp01@gwise.louisville.edu
Tel: 1.800.759.3448
Internet: www.distillersgrains.org
May 16-20
NCI Short Course: Advanced Grain
Procurement Strategies
Location: North Dakota State University, Fargo,
North Dakota, U.S. Contact: Northern Crops
Institute Tel: 1.701.231.7736
Fax: 1.701.231.7235 E-mail: nci@ndsu.edu
Internet: www.northern-crops.com
May 17-19
VIV Russia 2011
Location: Moscow, Russia Contact: Renate
Wiendels, sales & account manager
Tel: 31 (0) 30 295 2788 Fax: 31 (0) 30 295 2809
E-mail: renate.wiendels@vnuexhibitions.com
Internet: www.vivrussia.nl
8

May 23-27
IGP Grain Elevator
Management Short Course
Location: International Grains Program
Conference Center, Manhattan, Kansas, U.S.
Tel: 1.785.532.4070 Fax: 1.785.532.6080
E-mail: igp@ksu.edu Internet: www.ksu.edu/igp
May 2527
GAFTA Short Course:
Trade Foundation Course
Location: Geneva, Switzerland Contact: GAFTA
Tel: 44 207 814 9666 Fax: 44 207 814 8383
E-mail: training@gafta.com
Internet: www.gafta.com/training

JUNE
June 6-10
IGP Mill Processes 1, Basic Short Course
Location: International Grains Program Conference
Center, Manhattan, Kansas, U.S.
Tel: 1.785.532.4070 Fax: 1.785.532.6080
E-mail: igp@ksu.edu Internet: www.ksu.edu/igp
June 6-10
NCI Short Course: DDGS and Soy
Nutrition, Use and Feed Manufacturing
Location: North Dakota State University, Fargo,
North Dakota, U.S. Contact: Northern Crops
Institute Tel: 1.701.231.7736
Fax: 1.701.231.7235 E-mail: nci@ndsu.edu
Internet: www.northern-crops.com
June 6-July 8
GEAPS/KSU Distance Education Courses:
Aeration System Design and Fan Operational
Management and Grain Drying
Contact: Chuck House at GEAPS or Brandi Miller
at Kansas State University
E-mail: chuckh@geaps.com or bmmiller@k-state.edu
Internet: www.geaps.com

June 7
International Grains
Council Grains Conference
Location: Queen Elizabeth II Conference Center,
London, England Contact: Ann Knowles
Tel: 44 (0) 20 7513 1122
E-mail: conf@igc.int
Internet: www.igc.int
June 13-16
IGP Mill Processes 2, Advanced Short Course
Location: International Grains Program Conference
Center, Manhattan, Kansas, U.S.
Tel: 1.785.532.4070 Fax: 1.785.532.6080
E-mail: igp@ksu.edu Internet: www.ksu.edu/igp
June 21-23
NCI Short Course: Basics of
Wheat and Flour Quality
Location: North Dakota State University,
Fargo, North Dakota, U.S.
Contact: Northern Crops Institute
Tel: 1.701.231.7736
Fax: 1.701.231.7235
E-mail: nci@ndsu.edu
Internet: www.northern-crops.com
June 22-23
GAFTA Short Course:
GAFTA Arbitration Rules
Location: London, England Contact: GAFTA
Tel: 44 207 814 9666 Fax: 44 207 814 8383
E-mail: training@gafta.com
Internet: www.gafta.com/training

For a 12-month listing of 2011 industry


events, see the 2011 International Buyers Guide
or visit www.World-Grain.com. Send your event
details to: worldgrain@sosland.com or fax
1.816.756.0494

We want to hear from you Send comments and inquiries to worldgrain@sosland.com.


For reprints of WG articles, e-mail reprints@sosland.com.

IGC Grains Conference


The 2011 International Grains Councils (IGC) Grain Conference will take place June 7 at
the Queen Elizabeth II Conference Centre in London, England. The 2011 IGC Conference
will provide a wide-ranging examination of current and future developments in the grain
and oilseed sectors. Leaders from industry and government will share their insights into the
latest market and policy challenges at a time when supply and demand appear to be more
finely balanced and there is increased concern about market instability and food insecurity
among the worlds most vulnerable populations. For assistance with registration and conference program, call Ann Knowles at +44 (0) 20 7513 1122 or send an e-mail: conf@igc.int.
April 2011 / World Grain / www.World-Grain.com

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newsreview

News review
Brought to you by World-Grain.com

Global wheat production to increase in 2011


ROME, ITALY The United Nations Food and Agriculture Organizations (FAO) March 2011 edition of the Crop Prospects and Food
Situation report forecast world wheat production in 2011 at 676 million tonnes, which represents an increase of 3.4% from 2010. This
level would still be below the bumper harvests in 2008 and 2009.
The March 23 report specified that wheat plantings in many countries have increased or are expected to increase this year in response
to strong prices, while yield recoveries are forecast in areas that were
affected by drought in 2010. The Russian Federation is expecting a
yield recovery.
As the bulk of the worlds coarse grains and paddy crops are yet to
be planted, it is, however, too early to forecast total cereal production
for this year.
Prospects for the 2011 May-June harvests of winter wheat and
coarse grains in North Africa are generally favorable, except in Tunisia where dry conditions in January dampened hopes for a robust
wheat production recovery. The current situation in North Africa has
resulted in the displacement of large numbers of people and disruption to the flow of goods and services in this heavily cereal-import
dependent region.
In Southern Africa, the outlook for the main 2011 maize crop is favorable, and relatively low prices have helped stabilize food security.
A record crop of maize is forecast in Malawi and Zambia. However,
in South Africa, the largest producer in the sub-region, a sharp drop

in production is forecast from last year due to reduced plantings in


response to a high level of stocks and low prices for maize at planting time.
In Eastern Africa, despite bumper harvests in 2010 and generally
low prices, food insecurity has increased in the drought-stricken pastoral areas. In Western Africa, post-election violence in Cote dIvoire
continues to damage general economic conditions in the sub-region
and, in particular, trade.
The report indicated that in Asia, good 2011 wheat harvests are
forecast in India and Pakistan and in China, the drought situation in
the North Plain has been eased by recent precipitation, but the outlook for the wheat crop still remains uncertain.
In the CIS sub-region, where Kazakhstan is the major producer,
the bulk of the crop is yet to be sown, but in view of current strong
prices, plantings are expected to be in line with the relatively high
level of the past two years. Assuming a recovery in yields after last
years drought-reduced level, a significant increase in production
could be achieved.
In South America, however, where the season is well advanced,
prospects for the 2011 maize crop are unfavorable in Argentina
and Uruguay due to persistent dry weather linked to the La Nia
weather event. In Brazil, by contrast, the outlook is positive after
good rainfall since planting improved soil moisture conditions for
developing crops.

Libyan crisis threatens food security


ROME, ITALY The impact of the current crisis in Libya on
food security is a cause for serious concern both in Libya and
surrounding countries due to the regions dependency on cereal
imports, possible disruptions to the flow of goods and services
and population displacements, the United Nations (UN) Food
and Agriculture Organization (FAO) said on March 11.
The ongoing crisis will likely have a significant impact on food
security in Libya and in nearby crisis-affected areas. In Libya, the
situation may lead to a sudden disruption of imports and the collapse of the internal distribution system. Depletion of food stocks
and loss of rural manpower are all factors that in the longer-term
could seriously affect food security, said Daniele Donati, chief
of FAOs Emergency Operations Service.
In Libya, domestic arable production is concentrated primarily

near Benghazi and near Tripoli.


In neighboring Egypt, the sharp rise in international wheat
prices will add substantially to the cost of wheat imports in 201011 and to the governments bread subsidy program which helps
cushion the consumer from the effects of rising prices.
The FAO said that up-to-date information and baseline data on
food security from Libya remains patchy and unconfirmed and a
close monitoring of the overall food security situation and trade
conditions is required.
The FAO said food stocks and rising food costs need to be
closely monitored. Given the heavy reliance on imports, further price hikes in the international market would have a devastating impact on the ability of vulnerable people to cover their
basic needs.

U.K. to consume less wheat than estimated


LONDON, ENGLAND Wheat consumption in the U.K. will be
lower than previous estimates, with usage declines in industrial and
feeding purposes, according to a report March 23 from the U.K.s
Department of Environment, Food and Rural Affairs (DEFRA).
Wheat consumption is estimated at 14.1 million tonnes in the
2011 marketing year that began July 1, a 2.6% drop from estimates
10

in January. Usage in human and industrial products dropped 3.7%,


and 1.5% in animal feed.
Wheat supply is expected to remain at 17.8 million tonnes.
A drop in ethanol production has lowered usage levels, and survey
data from flour millers and brewers also was showing lower usage
levels than expected, DERFA said.
April 2011 / World Grain / www.World-Grain.com

e n e rg y
g ra i n s
fo o d s

Resources for enriching lives.


For more information, see Page 118.

newsreview
AGRANA to build wheat starch plant
PISCHELSDORF, AUSTRIA Over the next two years, AGRANA
Bioethanol GmbH will be investing around 56 million in building
a starch factory for the production of wheat starch and gluten at the
site of its ethanol plant in Pischelsdorf, Austria. The facility will start
operations at the end of 2013 and boost the workforce at the Pischelsdorf site from the current level of around 80 to 120.
The plan is for the new facility to process around 250,000 tonnes
of wheat to make 107,000 tonnes of wheat starch and 23,500 tonnes
of wheat gluten as well as 55,000 tonnes of wheat bran.
The wheat starch produced at the plant will largely be employed in

technical applications (e.g. in the paper industry). Wheat gluten is used


in the baking sector. It is also used in pet food for cats and dogs. The
bran produced serves as animal feed. Through its production of wheat
starch, AGRANA will be offering customers an additional starch product and thereby rounding off its product range in the starch segment.
This multi-phase processing of agricultural raw materials is an
example of how AGRANA actually puts the underlying principle of
closed-cycle economics into practice on a daily basis as far as is possible, said Johann Marihart, chief executive officer of AGRANA
Beteiligungs-AG.

Gavilon to acquire 16 grain elevators


OMAHA, NEBRASKA and LIND, WASHINGTON, U.S.
Gavilon Grain, LLC and Union Elevator & Warehouse Company
announced on March 24 that the companies have signed a purchase
agreement. Under the terms of the agreement, Gavilon will acquire
Union Elevators eastern Washington assets, including 16 grain elevators, at 12 locations, with licensed storage capacity of 8.4 million bushels.
We are very pleased to be expanding our asset base with a company that has such a rich history of serving producers in eastern
Washington, said Greg Konsor, vice-president and general manager
of Gavilon Grain. The addition of Union Elevators grain facilities

and origination capabilities position us well to support the growing


Pacific Northwest export wheat market and serve the Columbian Basin feed grain market.
We are looking forward to becoming part of Gavilons network
of grain operations, said Randy Roth, general manager of Union
Elevator. This transaction will enable Union Elevator to continue
growing in eastern Washington, backed by the financial strength of a
global commodity management firm. Our partnership with Gavilon
will also allow us to further expand our customer offerings as we
leverage the companys scale and scope and drive greater efficiencies
through our operations.

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For more information, see Page 118.

12

April 2011 / World Grain / www.World-Grain.com

newsreview
Bunge appoints Enrique
Humanes CEO, Bunge Argentina
WHITE PLAINS, NEW YORK, U.S.
Bunge Limited announced on Feb. 25 the appointment of Enrique Humanes as chief executive officer (CEO), Bunge Argentina, effective
immediately. Humanes has served as interim
CEO of Bunge Argentina since July 2010. He
will report to Alberto Weisser, chairman and
CEO, Bunge Limited.
Enrique has played
a key role in growing
Bunges businesses in
Argentina, said Weisser.
His unique combination
of operational expertise
and market insight make
him the right person for
the job. Argentina is one
Humanes
of the worlds largest
exporters of agricultural commodities and an
expanding market for fertilizer. Im confident
that under Enriques leadership, Bunge Argentina will be well-positioned to contribute to the
success of the nations agribusiness sector and
Bunges overall growth.
Humanes started his career at Bunge in 2000
as the operations director of Bunge Argentina.

Administrative assistant
joins IAOM headquarters
OVERLAND PARK,
KANSAS, U.S. The
International Association of Operative Millers (IAOM) recently
announced the appointment of Marianne Mantel as its administrative
assistant. IAOM said
Mantel
she will be responsible
for the day-to-day operations of the IAOM
headquarters office including the maintenance of meeting registrations and accounts
receivables, as well as general administration and project-based work. Mantel replaces long-time IAOM employee Carole Smith,
who retired at the end of 2010.
Mariannes strong background in the
non-profit community will be extremely
valuable for her in this position. Her administrative experience and professionalism will
enable us to evaluate our internal procedures
and make adjustments where needed, said
Melinda Farris, executive vice-president.
Were looking forward to the immediate
impact Marianne will have on the administrative side of IAOMs operations.

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www.World-Grain.com / World Grain / April 2011

13

newsreview
Richardson to purchase North East Terminal
WINNIPEG, MANITOBA, CANADA Richardson International
Limited announced on March 10 that it has entered into an agreement to purchase the North East Terminal grain handling facility in
Wadena, Saskatchewan, Canada, along with the crop input facilities
at Wadena, Kelvington, Foam Lake and Ponass Lake, Saskatchewan,
Canada. The agreement is subject to shareholder approval on April 6
and is expected to close on April 13.
We are extremely pleased with this opportunity and the fact that
North East Terminal chose Richardson to complete this transaction.
We look forward to investing in this facility and adding it to our
Richardson Pioneer network of elevators and crop input facilities
across Western Canada, said Curt Vossen, president of Richardson
International. It is a great fit with our existing business. The ac-

quisition will allow us to provide greater service to our customers


in northeastern Saskatchewan. It will also support our export sales
program and our new canola processing plant in Yorkton.
Upon successful completion of the sale, Richardson plans to
invest an additional C$3 million to upgrade and enhance the grain
handling and crop input facilities with an aim to improving safety,
increasing efficiencies and better serve customers.
Richardson is a solid company, a well-established player in
the agriculture industry and a strong supporter of the communities
in which it does business, said Garnet Ferguson, general manager of North East Terminal Ltd. We are confident that Richardson
will ensure continued success for North East Terminal and our
producers.

U.K., Gates Foundation to support ag research


LONDON, ENGLAND and SEATTLE, WASHINGTON, U.S.
The United Kingdoms Department for International Development
(DFID) and the Bill & Melinda Gates Foundation announced on Feb.
27 a coordinated effort to reduce hunger and poverty in developing
countries by supporting agricultural research projects to help small
farmers increase their yields and incomes.
DFID will contribute $32 million over the next five years to
the partnership, and the foundation will provide $70 million.
DFID and the foundation will work together to identify the projects, and the foundations Agricultural Development initiative
will manage them.
The collaboration will focus on dealing with the most serious
threats to food production in the developing world such as crop
diseases, pests, poor soil quality, and extreme weather and tackle
these threats from multiple angles to develop long-term, sustainable
solutions.
This co-funding partnership comes as escalating food prices are
putting millions at risk of hunger and malnutrition and threatening

economic and social stability throughout the world. In January, the


United Nations Food and Agriculture Organizations price index hit
an all-time high, with prices for everything from rice to maize to
sugar to meat surpassing 2008 levels.
Through this new collaboration, Cornell University is receiving
$40 million to continue its work to develop wheat varieties that are
resistant to emerging strains of stem rust disease, such as Ug99,
which are spreading out of East Africa and threatening the worlds
wheat supply. Because wheat represents approximately 30% of the
worlds production of grain crops and nearly half of that production
will be harvested in developing countries, protecting wheat supplies
is critical to global food security.
A second grant of $3 million was awarded to Diagnostics for All
(DFA). DFA will develop inexpensive diagnostic tests that small
farmers can use to improve the quantity and quality of milk produced
by their cows and the safety of cereal grains. The new tests, which
will cost only pennies, will check for bovine pregnancy, milk quality
and a common toxin found in grain.

For more information, see Page 118.

14

April 2011 / World Grain / www.World-Grain.com

newsreview
Cargill invests in new Letterkenny feed mill
CHAMBERSBURG, PENNSYLVANIA, U.S.
Cargill announced on March 24 that it will
begin production at a new, high-capacity feed
mill on May 1. The new facility, known as
the Feed Depot at Letterkenny, replaces Cargills feed mill that was destroyed in a fire on
Feb. 12, 2010.
While we lost our mill in the fire, we never
lost our commitment to the dairy and livestock
producers in this region, said Rob Sheffer,
regional general manager for Cargill Animal
Nutrition. That is why every design aspect of
our new, world-class facility is aimed to help
us deliver the best quality feed possible to our
customers.
The company said the new mill features
state-of-the-art feed batching software to give
Cargill Animal Nutrition experts maximum
precision in customizing feed to match customer needs. The mill will have expanded
mixing capacity and flexibility, which will allow for improved efficiencies, larger batches
and faster delivery. Other upgraded features
include a fully automated grinding and receiving system and grain-banking bins available to
store customers grains as needed. It will also
feature one of the most advanced short-mixing
systems in the industry, with a computerized
bar-coding approach that tracks micro-ingredient levels in feed formulations.
With a 20% increased production capacity,
the mill will produce 120,000 tonnes of feed
per year. It will primarily serve dairy farmers
and livestock producers in Franklin, Cumberland and Adams counties in Pennsylvania and

Frederick, Washington and Carroll counties


in Maryland. Since the fire, Cargill has been
serving customers from its other production
facilities in Lebanon and Martinsburg, Pennsylvania, U.S.
The Letterkenny team is excited to get
back to serving our customers, said George
Wagner, plant manager. We are very grate-

ful that, with the support of our customers, we


have been able to rebuild our mill. With all the
improvements that weve made, we will be
able to serve them better than ever with safe,
high quality feed.
Construction on the new mill has been under
way since September 2010. An open house of
the facility is scheduled for early June.

Truck Probes
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Russia may extend


grain export ban to end of year
TAMBOV, RUSSIA According to news
reports, First Deputy Prime Viktor Zubkov
said on March 2 that Russia may extend its
ban on grain exports scheduled to expire at
the end of June for the rest of this year.
No decision has been made yet, he told reporters in the central Russian city of Tambov.
The government will look at considerations
including having good carry-over stocks
to be able to have a grain intervention fund
again before deciding on the measure, Zubkov said.
An extension to at least late 2011 is highly
likely, given the governments focus on capping inflation and food prices in the run-up to
the parliamentary elections in December 2011
and presidential polls in March 2012, New
York-based political-risk researcher Eurasia
Group said in an e-mailed note.

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www.World-Grain.com / World Grain / April 2011

15

newsreview
General Mills group to improve food processing in Africa
MINNEAPOLIS, MINNESOTA, U.S. General Mills announced on March 16 the launch of Partners in Food Solutions
as a hunger-fighting non-profit bringing food production and
food processing expertise to small- and medium-sized food processors in African nations.
Robert Nyirenda, owner, Nyirefami Grains Ltd., Tanzania,
with Peter Erickson, senior vice- president, innovation, technology and quality, General Mills. Partners in Food Solutions
assisted with installation of a quality control lab and improvements to washing and pre-drying operations. The companys
flour milling capacity rose from one tonne per day to five, and
its farmer-suppliers were able to build a health center
The need for sustainable food production is central to combating hunger in Africa, said Ken Powell, chairman and chief
executive officer (CEO), General Mills. General Mills has deep
food processing expertise and the technical leadership skills
necessary to transfer critical knowledge to food processors in
Africa, who can then produce more food and feed more African
people. Local food processors can then source more ingredients
from local small-holder farmers, many of them women, creating
an important and stable outlet for their crops.
General Mills has been piloting this effort for more than two
years, and we know we can help, said Powell. Through Partners in Food Solutions, General Mills will be able to reach out

to additional partners from across the food industry. The need


is critical, and we know our industry can make a transformative
difference.
General Mills developed Partners in Food Solutions as an employee volunteer initiative in 2009. Hundreds of General Mills
employees volunteered to help African food processors and
producers solve technical and quality challenges over the last
two years, working on dozens of food technology initiatives in
Africa.
Expanding rapidly with new African partners, increased volunteer support, funding from the U.S. Agency for International
Development (USAID) and new corporate partners Cargill and
DSM, Partners in Food Solutions continues to expand its reach
by enlisting more partners with additional capabilities to help
advance the effort. General Mills move to create the new standalone nonprofit will grow the program by enabling new corporate partners to increase the scale of Partners in Food Solutions
efforts.
Cargill is pleased to join General Mills and Partners in Food
Solutions to help alleviate hunger in Africa. For Cargill employees, this is a unique opportunity to put our knowledge to work
to improve the food supply chain, increase food security and
in the process, change lives, said Greg Page, Cargill chairman
and CEO.

For more information, see Page 118.

16

April 2011 / World Grain / www.World-Grain.com

newsreview
ACCC will not oppose Cargill acquisition of AWB
MELBOURNE, AUSTRALIA The Australian Competition and
Consumer Commission (ACCC) announced on March 17 that it does
not intend to oppose Cargills proposed acquisition from Agrium of the
commodity management businesses of AWB Limited.
The ACCC concluded that the proposed acquisition would be unlikely to substantially lessen competition as post-merger Cargill would
continue to face competition from a number of significant sources, said
ACCC chairman Graeme Samuel.
ACCC said that in forming its view, it conducted an extensive public
review process which involved consultation with grain growers, competitors, customers and industry groups such as the various farmers federations and associations.
The existing competition between Cargill and AWB is focused mainly in New South Wales (NSW) in grain trading and, to a lesser extent,
grain storage and handling. GrainCorp, the largest grain trader and grain
storage provider in NSW, and a number of competitors with a smaller
presence in NSW (including CBH, Elders, Glencore and Viterra) currently compete with Cargill and AWB.
The ACCC concluded that the proposed acquisition would be unlikely to enable Cargill post merger to depress prices paid to growers for
grain or raise prices of grain to domestic customers due to the presence
of the remaining grain traders, Samuel said.
In relation to grain storage and handling, Cargill has a very small existing presence in the market with an interest in three storage and handling sites in NSW. AWB has a more significant presence in the market
with an interest in 10 storage and handling sites in NSW. Post merger,
Cargill would continue to face competition from GrainCorp which has
over 150 storage sites in NSW as well as a small number of other storage
providers. The ACCC also noted that there was generally overcapacity
of storage in NSW which would be likely to drive competition between
storage owners.
The ACCC also investigated whether competition may be substantially lessened given that Cargill and GrainCorp are joint venture partners
and owners of Allied Mills, a major flour producer in Australia.
The ACCC concluded that attempts by Cargill and/or GrainCorp to
deny supply or to raise prices of wheat to competing flour mills would
not likely be given the remaining options available for sourcing wheat,
including from the remaining grain traders and direct from growers. In
relation to storage and handling, the ACCC considered it unlikely to be
practical or profitable for Cargill and/or GrainCorp to foreclose access to
storage by rival flour millers.

New Russian grain association wants end to ban


MOSCOW, RUSSIA The National Association of Agricultural
Products Exporters was founded in Russia, APK-Inform said on
March 17. The organization unites 60% of grain exporters and traders and plans to lobby changing of the grain export embargo to grain
exports via more civilized mechanism of the state regulation.
The structure of the association includes large-scale grain exporters and traders (according to their data, the structure covers 60% of
whole grain export trading from Russia), including United Grain
Company, Novorossiysk Commercial Sea Port, Rusagrotrans, Valars
Group, International Grain Company and others.
According to Vadim Vikulov, head of the organization and general director of the company Aston, coordination of activities between exporters, producers and the authorities is the main task of
the association.
www.World-Grain.com / World Grain / April 2011

For more information, see Page 118.

17

newsreview
Three named to new posts within ADM corn business unit
DECATUR, ILLINOIS, U.S. Archer Daniels Midland Co. (ADM)
announced on March 24 that it has made several changes within its
corn business unit.
Dennis Riddle has been named senior adviser,
corn, and has announced his intention to retire within the year. Riddle joined ADM in 1999, was elected a corporate vice-president in 2006, and most recently was president, sweeteners and starches.
Chris Cuddy has been named vice-president
and general manager, sweeteners and starches.
Cuddy joined ADM in 1998 and has held a range
of merchandising and sales management roles.
Riddle
Most recently, he was president, Almidones

Mexicanos, S.A. de C.V., an ADM joint venture.


Prior to that, he was vice-president, corn processing, and as a senior commodity trader.
Alex Martinez has been named president,
Almidones Mexicanos, S.A. de C.V., which is
a joint venture of Controladora ADM, S.A. de
C.V., an indirect wholly owned subsidiary of
ADM and Tate & Lyle. Located in Guadalajara,
Mexico, ALMEX processes corn for sweeteners
Cuddy
and starches. Martinez joined ADM in 1997 and
has held various commercial and marketing management positions
within the oilseeds and agricultural services business units. He most
recently was general manager, ADM Latin America.

ADM doubles receiving, storage at canola facility


DECATUR, ILLINOIS, U.S. ADM Agri-Industries, a wholly
owned subsidiary of Archer Daniels Midland Company (ADM), announced on March 21 that it is doubling canola seed receiving capabilities and storage capacity at the companys Lloydminster, Alberta,
Canada, processing facility. The project includes the construction of
five new storage bins and a second receiving system, which is expected to significantly reduce unloading times for area farmers.
As area farmers continue to produce higher canola yields, they

expect fast, efficient and predictable receiving facilities, said J.P.


Montalvo, commercial manager at ADM Agri-Industries Lloydminster facility. We are committed to area farmers, and expanding our
Lloydminster receiving and storage operations will help ensure we
are the destination of choice for their canola crop.
The Lloydminster expansion project will begin this spring pending permit approvals and should be completed in the fourth quarter
of this year.

For more information, see Page 118.

18

April 2011 / World Grain / www.World-Grain.com

newsreview
ADM to build grain warehouse in Poland
PORT OF GDYNIA, POLAND Archer
Daniels Midland Company (ADM) announced on March 21 that the companys
joint venture with Baltic Grain Terminal
(BTZ), Baltic Logistic Holdings, will construct a new grain warehouse in the Port of
Gdynia, Poland, on the Baltic Coast.
The new warehouse will have a storage
capacity of 30,000 tonnes. The warehouses
surface area of 7,520 square meters will be
divided into four separate component fields
to accommodate four different products at
any time. The construction of the new warehouse is expected to be completed by fall
of 2012.
Upon completion of the new warehouse,
the storage capacity of the BTZ terminal
will increase to about 90,000 tonnes, giving
it the largest grain storage capacity of any
terminal in Poland. The additional storage
capability, as well as the improved loading
and unloading procedures, will reduce the
service time of ships and therefore benefit import throughput at the ports Indian
Quay. Additionally, the warehouses construction and operations will require new
employees and the services of local companies, which in turn will contribute to the
regional economy.
The project comes as a result of close
collaboration between BTZ and the Gdynia
Port Authority. The new warehouse will
significantly increase storage capacity for
soybean meal at the ports Indian Quay,
while advanced loading and unloading systems will benefit the port and local region
by facilitating traffic through the terminal.
By collaborating with the Gdynia Port
Authority on the construction of the new
grain warehouse, we hope to not only expand storage capacity for our customers,
but also increase import traffic through the
terminal by facilitating loading and unloading, said Tido Boehle, ADM general manager, terminals and origination, Europe.
Through efforts to increase the ports import capabilities, ADM will be better able
to support the supply chain and serve vital
needs in the region and beyond.
The warehouse will access ships at the
Indian Quay by an elevator and conveyor
system, which will allow soybean meal to
be easily transported into the warehouses
storage compartments. To unload the stored
meal from the warehouse, trucks will be
able to load their containers in three independent loading points. In order to minimize traffic intensity during unloading,

each loading point will be equipped with


truck scales to streamline the process.
The new warehouse at the Port of
Gdynia underscores our commitment to
the region and the local supply chain, said
Boehle. Poland is an important origination
region for our grains and oilseeds business
and this new facility will allow us to expand

our reach in the country.


In addition to the new warehouse and
the BTZ joint venture, ADMs operations
in Poland include an oilseeds crushing and
refining facility in Szamotuly that refines
and bottles retail vegetable oils, and country elevators in Slawa Wielkopolska and
Chrscina.

For more information, see Page 118.

www.World-Grain.com / World Grain / April 2011

19

GRAINMARKETREVIEW
Maize prices
(Average prices received by U.S. farmers; dollars per bushel)

6
5

Coarse grains
Market bullish based on low
level of U.S. maize stocks

1
0
Feb

Jan 2011

Dec

Nov

Oct

Sept

Aug

July

June

May

Apr

Mar

Source: U.S. Department of Agriculture

Maize global ending stocks


(in 1,000 tonnes)

180,000
150,000
120,000
90,000
60,000
30,000
0
2010-11*

2009-10

2008-09

2007-08

2006-07

2005-06

2004-05

2003-04

2002-03

2001-02

20

Feb

Despite the dramatic events of the last few weeks around the
world, the dominating fundamental factor in the coarse grains market
remains the low level of U.S. maize (corn) stocks. Prices remain high
as the market signals to farmers that it needs more grain.
There was a short-term selloff as fund investors responded to unrest in the Middle East and North Africa by shifting out of long maize
positions and into energy. In its monthly report on the market, Rabobank pointed out that spot CBOT corn had shed almost 10% in the
last week of February.
Our bullish outlook for corn prices into Q2 is maintained, it said.
The brief dip in futures prices during the second half of February
was met with robust demand from commercials looking to extend
coverage and lock in positive margins, particularly in the hog, cattle
and ethanol industries.
Added to the uncertainty caused by unrest in the Middle East was
the earthquake/tsunami disaster in Japan, but again, although there
may be long-term effects on feed compounders based in the affected
areas, Japans capacity and appetite to import grain, particularly feed
grain, has not shown any sign of being significantly reduced.
Rabobank also noted a crop downgrade in Mexico, which had resulted in an unexpected increase in U.S. maize exports.
In our view, the market cannot afford to be sending a signal to
consumers, trying to increase their demand beyond what is expected,
since ending stocks are already projected to fall to wafer-thin levels
this season, the report said.
It named the U.S. poultry sector as the most likely chink in the
demand chain at present, with high feed costs and abundant supplies
creating a significant cost-price squeeze for producers.
However, we are not seeing any evidence of a contraction in production in the weekly USDA statistics. Producers seem unwilling to
reduce production given the competitive environment and the need
to maintain market share. They appear to be holding out for an uptick
in product prices in the spring and summer.
It also pointed out that the old crop/new crop CBOT spread had
opened by 53% in February alone, a clear reflection of the tightness
in the nearby contracts.
David Eudall, analyst at Britains HGCA, highlighted the discount
from the July Chicago contract to the December contract, but made
the point that December was still above $6 a bushel.
The price for December is still, historically speaking, high and
so could still attract acres to be planted, he said. Old-crop prices

Jan 2010

by Chris Lyddon

* Projected
Source: U.S. Department of Agriculture

have been firming for a number of weeks as stocks in the U.S. are
forecast to remain tight for the rest of the season and demand from
both export business and from domestic U.S. ethanol production has
been steady through the season, he said.
Current forecasts have U.S. ending stocks at 18 million tonnes, or
15 to 18 days of demand, according to Eudall, and will continue to
need to act to ration demand through prices.
In a recent Grain Market Report, the International Grains Council
(IGC) predicted a rise in world maize area for 2011-12 to over 161
million hectares, 1% up and the highest level on record.
In the U.S., very strong prices, growing domestic demand from the
ethanol industry and the likelihood of exceptionally low stocks relative to use at the end of the season, are forecast to lead to a 4 percent
increase in area (harvested basis) to 34.3 million hectares, it said.
Chris Lyddon is World Grains European editor.
He may be contacted at: chris.lyddon@ntlworld.com.
We want to hear from you Send comments and inquiries to worldgrain@
sosland.com. For reprints of WG articles, e-mail reprints@sosland.com.

April 2011 / World Grain / www.World-Grain.com

For more information, see Page 118.

COUNTRYFOCUS

Focus on
Turkmenistan
One of the worlds driest
countries looking for ways
to increase grain production
by Chris Lyddon

Turkmenistan is one of the driest countries in the world and


much of its area is desert. Irrigation has made it possible to produce a major cotton crop, although its importance as an export
has been overshadowed by the value of the countrys natural
gas reserves.
The Karakum Desert, occupies about 70% of the area of Turkmenistan. Despite the limited availability of land, Turkmenistans
farmers, according to the News Central Asia information service,
produced more than 1.5 million tonnes of grain in 2010. Government plans call for the production of 1.6 million tonnes of grain
from 860,000 hectares in 2011.
According to a report on seed production published by the
International Center for Agricultural Research in the Dry Areas
(ICARDA), Turkmenistan has a total agricultural area of 40.2
million hectares of the countrys overall area of 49.1 million hectares. About 1.8 million hectares are irrigated, with pasture taking
up a further 38.4 million hectares.
KAZAKHSTAN
It described the climate as continental,
with very cold winters and very hot, very
UZBEKISTAN
dry summers.
TURKMENISTAN

EXPORTS ANNOUNCED

In early March, President Gurbanguly


Berdimuhamedow announced that in
2011 Turkmenistan will become an exAFGHANISTAN
porter of milling grains for the first time.
According to the APK Inform news agency, he signed
a decree, which allows the bakery products association
Turkmengallaonumleri to sell 217,000 tonnes of wheat
from the 2010 harvest through the state commodity
exchange. The association will sell 150,000 tonnes of
wheat and 50,000 tonnes of flour, produced from 67,000 tonnes
of wheat grains.
The move comes amid signs of an increased government focus
on the grains sector. The government has identified a shortage of
IRAN

22

Key Facts
Capital: Ashgabat (Ashkhabad)
Population: 4,997,503
Religions: Muslim 89%, Eastern Orthodox 9%, unknown 2%.
Location: Central Asia, bordering the Caspian Sea, between
Iran and Kazakhstan.
Government: Defines itself as a secular democracy and
a presidential republic; in actuality displays authoritarian
presidential rule, with power concentrated within the
presidential administration. Chief of state and head of
government: President Gurbanguly Berdimuhamedow (since
Feb. 14, 2007).
Economy: Turkmenistan is largely a desert country with
intensive agriculture in irrigated oases and sizeable gas and
oil resources. The two largest crops are cotton, most of which
is produced for export, and wheat, which is domestically
consumed. Although agriculture accounts for roughly 10%
of GDP, it continues to employ nearly half of the countrys
workforce. With an authoritarian ex-Communist regime in
power and a tribally-based social structure, Turkmenistan has
taken a cautious approach to economic reform, hoping to
use gas and cotton export revenues to sustain its inefficient
economy. Privatization goals remain limited. From 19982005, Turkmenistan suffered from the continued lack of
adequate export routes for natural gas and from obligations
on extensive short-term external debt. At the same time,
however, total exports rose by an average of roughly 15% per
year from 2003-08, largely because of higher international
oil and gas prices. New pipelines to China and Iran, that
began operation in late 2009 and early 2010, have given
Turkmenistan additional export routes for its gas, although
these new routes have not offset the sharp drop in export
revenue since early 2009 from decreased gas exports to
Russia. Overall prospects in the near future are discouraging
because of widespread internal poverty, endemic corruption,
a poor educational system, government misuse of oil and
gas revenues, and Ashgabats reluctance to adopt marketoriented reforms. In the past, Turkmenistans economic
statistics were state secrets. The new government has
established a State Agency for Statistics, but GDP numbers
and other figures are subject to wide margins of error. In
particular, the rate of GDP growth is uncertain. Since his
election, President Berdimuhamedow unified the countrys
dual currency exchange rate, ordered the redenomination of
the manat, reduced state subsidies for gasoline, and initiated
development of a special tourism zone on the Caspian Sea.
Although foreign investment is encouraged, numerous
bureaucratic obstacles impede international business activity.
GDP per capita:$7,400 (2010 est.); Inflation: 12% (2010
est.); Unemployment 60% (2004 est.).
Currency: Turkmen manat (TMM): 2.85 Manats equals 1
U.S. dollar (March 21, 2011).
Exports: $9.672 billion (2010 est.): Gas, crude oil,
petrochemicals, textiles, cotton fiber.
Imports: $4.888 billion (2010 est.): Machinery and
equipment, chemicals, foodstuffs.
Major crops/agricultural products: Cotton, grain; livestock.
Agriculture: 10.2% of GDP and 48.2% of the labor force.
Internet: Code .tm; 794 (2010) hosts and 80,400
(2009) users.
Source: CIA World Factbook

April 2011 / World Grain / www.World-Grain.com

For more information, see Page 118.

COUNTRYFOCUS

Turkmenistan wheat situation


(in 1,000 tonnes)

1,800

Consumption
Imports
Production

1,500
1,200
900
600
300
0

2010-11*

2009-10

2008-09

2007-08

2006-07

2005-06

2004-05

2003-04

2002-03

2001-02

* Projected
Source: U.S. Department of Agriculture

elevators as a problem. President Berdimuhamedow ordered


the construction of more silos and mills. A report by Central
Asian Newswire noted that President Berdimuhamedow had
focused on developing gas exports.
His agricultural efforts have focused mainly on increasing

irrigation capabilities to grow more wheat, it said. Kazakhstan showed the region, at a time of severe drought, the value
of having high quality storage facilities which protect grain
stocks from decay.
The news service Turkmenistan.ru said that on Aug. 2526 Turkmengallaonumleri had commissioned 50,000-tonne
silos at Ruhubelent district of Dashoguz province and Altyn
Asyr district of Akhal province, as well as a 30,000-tonne
silo in the village of Dushak of Kaahka district of Akhal
province. There is also a plan for a modern elevator with a
capacity of up to 50,000 tonnes in Yolotan district of Mary
province.
According to News Briefing Central Asia (NBCA) of the
Institute for War and Peace, the U.S. Department of Agriculture puts Turkmenistans annual grain demand at 2.5 million
tonnes. NBCA said that a significant portion of Turkmenistans harvest will be suitable only as animal feed as a result
of the countrys outdated farming methods.
Turkmenistan imported wheat from Russia and Kazakhstan.
AGRICULTURE REFORMED

Agriculture in Turkmenistan went through a process of reform under President Saparmurat Niazov who ran the country

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24

April 2011 / World Grain / www.World-Grain.com

COUNTRYFOCUS

from 1990 to 2006. Large Soviet-era collective farms were


dismantled and replaced by small private farm holdings.
NBCA quoted farmers as saying that the state continues to
decide where grain is to be sown, set production quotas for
farmers and buy up crops at prices too low to create any incentive. The state provides farmers with seed and fertilizer.
According to the United Nations Food and Agriculture Organizations Global Information and Early Warning System
(GIEWS), the state authorities regulate prices for basic foods
and provide food subsidies.
For food security purposes, the government practices
the distribution of a certain volume of wheat flour to all
population, GIEWS says on its website. The quality of
local flour and flour products is still poor and therefore a
large volume of foodstuff is imported for food consumption. Due to high unemployment and malnutrition in particular in rural areas, food security is at risk, especially for
vulnerable groups.
Turkmenistans high dependence on irrigation, particularly
for cotton production, has been cited as one of the causes of
the drying up of the Aral Sea.

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GREENING THE DESERT

Turkmenistans government has started an ambitious project to green the desert with the construction of a vast lake. According to Turkmenistan.ru, at the inauguration construction,
the president said, that upon the completion of the second
and third phases of the Turkmen lake, Turkmenistan will have
a single drainage system.
New green oasis, towns, villages, districts will emerge in
the vast open space of the Karakum desert, he said. The
development of irrigated agriculture, livestock and fisheries
sector will get an additional impetus.
According to the website, the construction of an extensive
collection network in the middle of the Karakum desert started in 2000.
It will collect drainage water from almost all over the country and store it in a giant natural depression called Karashor, it
said. Every year, up to 10 billion cubic meters of mineralized
drainage water will be collected in Karashor.
This will dramatically improve ameliorative condition
of irrigated lands and make it possible to solve many problems related to salinity, waterlogging of land and drought,
it said. The total capacity of the reservoir will be 132 billion cubic meters and the water surface area will total 2,000
square kilometers.
FLOUR MILLING

Turkmengallaonumleri has contracted with Germanys


Unionmatex to supply five new turn-key mills around the country. New mills at Ruhabat and Turkmenabat will each have a
milling capacity of 360 tonnes a day and a wheat storage capacity of 100,000 tonnes. The planned new mills at Serdar,

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25

COUNTRYFOCUS

Dashoguz and Mary will have a milling


capacity of 200 tonnes a day and a wheat
storage capacity of 50,000 tonnes.
Turkmenistan has been one of the
leading countries in adopting manda-

and increasing the production of fortified flour.


Between 1996 to 2007, UNICEF assisted the National Bread Association
(Turkmengallaonumleri) in procuring

Turkmengallaonumleri has contracted with Germanys


Unionmatex to supply five new turn-key mills around the country.

tory flour fortification with the help of


UNICEF, which maintains an office in
the country. The programme started in
1996 when the president of Turkmenistan issued a decree on salt iodization
and flour fortification and was backed
up in May 2006. The decree stipulated
that all wheat flour produced in Turkmenistan should be fortified with iron.
Since 2001, Turkmenistan has made
steady progress by building new mills

flour premix and dosing equipment at


UNICEFs cost as well as training personnel. By 2004, around 85% of all
first-grade flour in Turkmenistan was
fortified with iron.
In 2006, Turkmenistan adopted new
standards on flour fortification in accordance with international requirements. As a result, the quality control
system was strengthened and folic acid
was added into flour besides iron to

further reduce the prevalence of irondeficiency anaemia in women of childbearing age.


Since 2008, the Government of Turkmenistan has been fully financing the
flour fortification programme by procuring micronutrients through UNICEF. At
present, all flour of premium and firstgrade produced in Turkmenistan is fortified with iron and folic acid. All of the
20 government-owned mills fortify flour.
All state owned bakeries make bread
from fortified flour produced in Turkmenistan, and the imported flour is consumed at a comparatively small scale.
The government recommends entrepreneurs to import fortified flour.
Chris Lyddon is World Grains European editor. He
may be contacted at: chris.lyddon@ntlworld.com
We want to hear from you Send comments and
inquiries to worldgrain@sosland.com. For reprints of
WG articles, e-mail reprints@sosland.com.

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April 2011 / World Grain / www.World-Grain.com

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FEATURE

Wheat trade
to double
by 2050
G

lobal wheat demand in 2010 reached an estimated 666


million tonnes. If the demand rate were to remain constant, global wheat consumption would surpass 880
tonnes by 2050, a 40% increase that will mirror population
growth over that 40-year period.
Without question, international trade will play an essential
role in meeting this increase in consumption. In fact, an analysis released in January by Chad Weigand, market analyst for
the U.S. Wheat Associates (USW), found that the rate of world
wheat trade will likely grow much faster than overall consumption, doubling to 240 million tonnes or more by 2050. Thats
because the regions where the biggest population gains will
take place over the next 40 years mainly in the mid-latitude
countries are not where most of the worlds wheat is grown.
According to Weigand, the purpose of the study was to examine the potential growth in trade toward 2050 by forecasting demand in various countries and regions where population
growth will significantly strain food supplies. The countries
and regions selected for the study included: North Africa, the
28

by Arvin Donley

USW study finds that growth in


consumption over next 40 years
will be in regions with minimal
wheat production
Middle East, Sub-Saharan Africa, Indonesia, the Philippines,
Brazil, Mexico, India and China. Based on the projections
in this study, domestic production by these countries will increase by only 23%, while total consumption will increase by
49%. Projected imports of 153 million tonnes in these areas
will more than double 2010 totals.
The study noted that the worlds biggest wheat exporters
the United States, Canada, Australia, the Black Sea region,
Europe and Argentina are expected to see minimal, or even
April 2011 / World Grain / www.World-Grain.com

For more information, see Page 118.

FEATURE: WHEAT TRADE TO DOUBLE BY 2050

Middle East* wheat situation


45.0
40.0
million tonnes

35.0

29.5

30.0
25.0
20.0

14.4

15.0
10.0
5.0

4.7

0.0
1980

2010

Population: 53 million
Production

133 million

Imports

2050
243 million

Consumption

* Excludes Turkey and Iran


Source: U.S. Wheat Associates

negative population growth through 2050. In contrast, population growth will be strongest in the countries of the tropic and
subtropical regions where little wheat is grown.
Obviously, these primary wheat producers/exporters will
have to find a way to significantly increase production over

the next four decades to meet the demand


from these regions with significant population growth.
Wheat already accounts for one-third of
all global grain trade by tonnage, Weigand
notes in the study. Such a large expansion
of trade will have major implications for all
segments of the industry, including buyers,
Tracy
shippers, handlers, and especially producers
in those countries that will supply the increased exports.
Specific findings in the study show:
North African wheat imports will climb from 22.3 million tonnes in 2010 to 51.4 million tonnes in 2050 despite a
negative wheat consumption per capita growth rate. The current projected growth rate for cereal consumption in these
countries (Algeria, Egypt, Libya, Morocco and Tunisia) is
-0.08% to 2030 and -0.15% from 2030 to 2050. This projection leaves per capita wheat consumption at still a very robust
206 kilos in 2050. The UN projects North Africas population
to reach 245 million in 2050, a 44% increase from its current
population of 170 million.
The Middle Easts imports will double from the regions
minor wheat producers, from 14.4 million tonnes to 29.5 mil-

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30

April 2011 / World Grain / www.World-Grain.com

FEATURE: WHEAT TRADE TO DOUBLE BY 2050

lion tonnes. Wheat consumption per capita has slowly been declining since reaching a peak in 1996 at 191 kilos. However,
consumption per capita has been growing
for the regions minor wheat producers,
from approximately 125 kilos a decade
ago to 140 in 2010. The Middle Easts
population is expected to reach 437 million by 2050, a 54% increase from 284
million in 2010. However, the fastest
population growth will come in the regions minor wheat-producing countries.
With both the highest population
growth rate and wheat consumption per
capita growth rate, Sub-Saharan Africas wheat imports will increase by 23.1
million tonnes by 2050 to 45 million
tonnes. The regions wheat consumption per capita growth rate is the highest
of any region, and FAO estimates that
cereal consumption per capita will grow
by 0.5% per year through 2050. The
regions population currently stands at
820 million and could potentially more
than double to 1.68 billion by 2050.
Indonesias 2050 wheat imports
will climb by 34% from 2010 imports,
to 7.1 million tonnes. A non-producer of
wheat, Indonesia has seen consumption
per capita jump from 8.1 kilos in 1980 to
21.2 kilos in 2010, with consumption expected to increase to 22.4 kilos by 2050.
With a growing consumption per capita,
imports will have to increase at a faster
rate than its population growth, which is
expected to grow by 24% over the next
40 years to 288 million.
The Philippines domestic demand
for wheat will grow by more than 60%,
leading to imports of 4.5 million tonnes
in 2050. Like Indonesia, the Philippines is entirely dependent on imports.
Its consumption per capita increased
64% over the past 30 years and its population is projected to grow by 56% to
146 million by 2050.
Brazilian wheat imports will
climb 62% from 6.5 million tonnes in
2010 to 10.5 million tonnes in 2050
to fulfill domestic demand. Although
consumption per capita is expected
to remain flat over the next 40 years,
its population is projected to grow by

12% by 2050 to 219 million.


Mexicos wheat production will
grow only slightly, but a negative population growth rate and relatively flat
wheat consumption per capita means
imports should remain relatively steady
through 2050.
India will go from being a self-sufficient wheat producer to a net importer

of 12 million tonnes during that period.


While Indias cereal consumption per
capita is expected to decrease in the future, wheat consumption is expected to
increase as diet preferences shift from rice
to wheat products. Indias wheat production will increase moving toward 2050 but
will likely increase at a slower rate than its
population growth, which is expected to

For more information, see Page 118.

www.World-Grain.com / World Grain / April 2011

31

FEATURE: WHEAT TRADE TO DOUBLE BY 2050

Sub-Saharan Africa* wheat situation


50.0

million tonnes

40.0

35.4

30.0
20.0
12.3
10.0
3.9

69 kilos in 2050 as it trends toward greater meat consumption.


China is the worlds largest wheat-producing country with
output reaching 115 million tonnes in 2010, but production is
expected decline slightly by 2050.
USW President Alan Tracy said the study results were about
what he expected with North Africa, Sub-Saharan Africa and
the Middle East having the biggest increases in imports. However, he doesnt completely agree with the projections regarding China.
Despite the study saying that in 2050 China will not be importing wheat, I think they will be importing wheat and reasonable amounts of it, Tracy said in an interview with World Grain.

0.0
1980
Population: 333 million
Production

Imports

2010

2050

757 million

1.58 billion

Consumption

* Excludes South Africa


Source: U.S. Wheat Associates

rise from 1.2 billion to 1.6 billion over the next 40 years.
Chinas wheat imports will grow steadily between 2019
and 2040, but a negative population growth rate beyond 2040
will lead to declining wheat imports. Chinas wheat consumption per capita is expected to decline from 72 kilos in 2010 to

MEETING A GROWING CHALLENGE


So how will the world meet this growing demand for wheat
in the upcoming decades? Certainly yield improvement,
through better wheat breeding and the possible development
and commercialization of biotech wheat will account for some
of the increase. And there still is some room for expansion of
land area dedicated to wheat production among the worlds
major wheat producers, most notably in the Black Sea region
countries such as Russia, Ukraine and Kazahkstan.
Weve been very interested in the Black Sea as an emerg-

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239

FEATURE: WHEAT TRADE TO DOUBLE BY 2050

Projected Chinese wheat imports 2015-2050


8

million tonnes

0
2050
2048
2046
2044
2042
2040
2038
2036
2034
2032
2030
2028
2026
2024
2022
2020
2018
2016
China imports
Source: U.S. Wheat Associates

ing major competitor, he said. They have some problems to


overcome, but they have a large area dedicated to wheat with
some potential to increase their acreage.
Offsetting that, however, is the likelihood that major portions of Ukraine and southern Russia in the black earth belt

will rapidly increase their corn and soybean production, particularly to supply the meat demand for Russia which is so
insatiable, Tracy said.
On the plus side, theyve got very low yields and still have
room for improvement in everything from fertilizer to finance
to facilities, he said.
Argentina also has the potential to convert pasture land into
wheat production.
I really dont see, other than those two examples, much
opportunity for any significant acreage growth, Tracy said.
But over a 40-year time period, even relatively small increases in production per acre do add up.
Its no secret that wheat has lost acreage around the world
particularly in the U.S. over the past 30 years. In 1980,
236 million hectares of wheat were harvested compared to 226
million in 2009-10. By contrast, 131 million hectares of corn
were harvested in 1980 compared to 156 million in 2009-10.
Yield improvements, mainly due to the introduction of
biotech varieties, have helped make corn and soybeans more
profitable, leading farmers to abandon wheat plantings.
I think the acreage decline has to stop, and it will stop
because prices will force it to, he said. Prices will pull that
acreage back or at least stabilize it. Were going to have to

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April 2011 / World Grain / www.World-Grain.com

FEATURE: WHEAT TRADE TO DOUBLE BY 2050

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USW President Alan Tracy recently spoke about world wheat demand
growth at the International Association of Operative Millers Mideast &
Africa District Conference in South Africa. Photos courtesy of USW.

see a bigger differential of wheat versus corn over a sustained


period of time to keep that wheat acreage up to meet that demand, and the market will work to make that happen.
Never underestimate the abilities of farmers to respond to a
price incentive. The positive news is the demand will be there.
Were coming off the three largest wheat production years ever
in the world and yet our stocks are getting exceedingly tight.
Sure there were some production problems (last year), but this
is very much unlike 2008, which was very much a supply-driven spike in prices. This one is looking like it is demand driven,
which makes it more lasting. I think this study backs that up to
a degree in that total demand is going to increase and the trade
level is going to grow quite dramatically.
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www.World-Grain.com / World Grain / April 2011

35

FEATURE: WHEAT TRADE TO DOUBLE BY 2050

USW hoping for approval of FTAs in key markets


Wanting access to three key international markets, U.S. wheat
growers are anxiously waiting to see if the U.S. government will
approve free trade agreements (FTA) with South Korea, Panama
and Colombia.
President Barack Obama said he wants to win congressional
approval of a free trade pact with South Korea in the next few
months and to resolve issues blocking trade deals with Panama
and Colombia as soon as possible this year.
Republicans, since winning control of the House and gaining
seats in the Senate in November, have pressed Obama for a timetable for action on free trade pacts with South Korea, Colombia
and Panama that were negotiated and signed during the administration of former President George W. Bush. The deals have
stalled due to strong opposition from U.S. union groups and many
Democrats, especially to the South Korea and Colombia pacts.
USW President Alan Tracy said the most important agreement to be struck for U.S. wheat farmers is the one with Colombia, a market which the U.S. been the dominant wheat supplier
for many years. However, the Canadian parliament last year ratified a bilateral FTA with Colombia that will, when implemented, allow Canadian wheat to enter the country duty free. He

estimates that U.S. wheat producers could lose sales of up to


$100 million to Canada if the U.S. fails to reach an FTA with Colombia.
The Canadian FTA with Colombia has the potential to give
them a tariff advantage which would overcome the freight differential, said Tracy, referring to the greater shipping costs Canada
incurs in sending wheat to Colombia. Unless we get ours done,
we are going to face a serious loss. Once youve lost market
share, you dont win that back instantly.
He said that for the last four years, USW, the National Association
of Wheat Growers and many other agricultural organizations have
strongly advocated for this agreement. In that time, USW brought
influential Colombian millers to the United States who told government officials that if they had to pay duties on U.S. wheat and not on
Canadian wheat, U.S. sales and market share would fall dramatically.
USW also released a report on the impact of FTAs that showed U.S.
wheat exports would be 20 million bushels greater and the farm price
would be 10 per bushel higher under a ratified U.S.-Colombia FTA.
Tracy also noted that South Korea is an important market for us
long term. The potential comes from the greater economic growth in
Korea. Panama doesnt grow wheat and they have a zero tariff in place
at the moment, so it would be nice to get that zero tariff locked in.

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April 2011 / World Grain / www.World-Grain.com

FEATURE: WHEAT TRADE TO DOUBLE BY 2050

through improved yields would be the


development and commercialization
of biotech wheat. Recently, Monsanto
Co. announced a return to the wheat
business and plans to eventually introduce biotechnology attributes in wheat,
something that would likley be accepted in the United States but would
undoubtedly be a tougher sell in other
parts of the world, where consumers
have expressed concern about potential
adverse health affects, although a number of scientific studies have shown no
ill effects from consuming products derived from biotech crops.
Internationally its a little tougher
than with those other two crops (corn
and soybeans) because of the direct
food consumption of wheat, Tracy
said. But I think we can handle that.
Its simply a matter of having good
testing, having suitable tolerance levels in major importing countries, and
getting approvals in major importing
countries before products are commercialized there.
Tracy said the wheat industry will
have the opportunity to learn from the
corn and rice industries in that regard
and noted that the odds of cross-pollination in wheat are lower since wheat pollen doesnt travel as far as corn pollen.
Separation is going to be an easier issue to handle. In the long run, we are going to be able to supply both biotech and
non-biotech wheat, and there will be a
price opportunity for those willing to go
to the extra effort to grow and maintain
the separation of non-biotech wheat.
The U.S. sells a million tonnes of
non-biotech soybeans to Japan for
tofu, he noted. They are perhaps the
most sensitive single market with regard to biotech, yet we managed to
make it work and soybean growers get
substantial premiums for some of these
non-biotech light-colored hylum beans
for the Japanese market. It works because they have tolerances rather than a
market which demands zero tolerance,
which is not workable.
Although some see the development
and acceptance of biotech wheat be-

ing of critical importance to feeding


the world in the coming decades, Tracy
stops short of saying it will be necessary
to meet demand.
I think well have biotech wheat that
will be important initially for agronomic reasons and eventually have benefits
downstream for processors and consumers, he said. The commitment of the

USW and the National Association of


Wheat Growers is to help make it happen to benefit our farmers in order to be
able to help feed the world. Can we feed
the world without it? Perhaps a little less
well, but sure.
We want to hear from you Send comments and
inquiries to worldgrain@sosland.com. For reprints of
WG articles, e-mail reprints@sosland.com.

For more information, see Page 118.

www.World-Grain.com / World Grain / April 2011

37

FEATURE

influence continues to grow


T

he MERCOSUR region is one of the strongest agricultural commodities suppliers in the world. With Argentina and Brazil among the top soybean and soybean oil
exporters and Argentina as one of the major players in the
wheat market, theres no doubt about this regions potential
to grow in a global economy that is experiencing rising food
demand. The MERCOSUR custom union was established
in 1991 between Argentina, Brazil, Uruguay and Paraguay.
Since then, Bolivia, Chile and Venezuela have entered as associate members. The MERCOSUR GDP amounts to 1.3
billion, and it is growing to a rate of about 7% annually. Also,
it is an important agri-food producer and net exporting region.
This has not gone unnoticed by China, the second largest
economy in the world, which needs an increasing amount of
grain for its growing population.
It is not a minor detail that China and Brazil are linked as
part of the BRIC (an acronym that refers to the countries of
Brazil, Russia, India and China, which are all deemed to be at
a similar stage of newly advanced economic development),
and that this South American country has benefited the most
within the MERCOSUR by Chinas expanded demand. Soybean and soybean oil are among the main Brazilian exports
to China.
On the other hand, Argentinas exports to China grew by
57% in 2010 compared to the previous year, reporting sales
of over $5 billion. After Brazil and the U.S., Argentina is the
third largest agri-food supplier to China, with exports of over
$4 billion. According to the Argentine Agriculture, Cattle and
38

by Cristina Kroll

South American countries are


increasing grain and oilseed exports
to China and the E.U.
Fishing Ministry (MAGyP), Argentina exported over 10 million tonnes of soybeans and 1.8 million tonnes of soybean oil
to China in 2010.
Argentina and Brazil will try to jointly increase their sales
to China. The goal is to export in big volumes. According to
the Argentine chancellery, these two countries plan to carry
out over 200 commercial missions together in 2011 into various markets, including China.
In November 2010, an Argentine committee, led by Argentine President Cristina Fernndez de Kirchner, visited China
and reached an agreement to consolidate bilateral relations.
With this mutual agreement, both parties showed the importance they each have in their respective economic strategy.
As a result of this agreement, China on Jan. 28 opened its
market for Argentine barley imports, including it in the list of
countries allowed to export to China. It was officially announced
by the Argentine National Quality and Agrifood Health Service
(SENASA) on Feb. 9. China is the largest beer consumer in the
world and imports 1.6 million tonnes of barley a year, 50% of
April 2011 / World Grain / www.World-Grain.com

For more information, see Page 118.

FEATURE: MERCOSUR INFLUENCE CONTINUES TO GROW

MERCOSUR production
in million tonnes

Argentina
2009-10

Brazil
2009-10

Uruguay
2009-10

Paraguay
2010 estimates

Soybeans
Wheat
Corn
Barley

52.6
7.4
22.6
+2

68
5
51.3
0.20

1.7
1.8
0.52
0.46

7.3
1.4
3.07
-

Sources: SAGPyA, Diea, CONAB, ANEC, and CAPECO

which is currently supplied by Australia.


Argentina has an important opportunity
to position itself as an alternative supplier, providing between 400,000 and
500,000 tonnes a year.
Due to the drought China has recently
experienced, the wheat crop projections
in that country went from 114.5 million
tonnes to less than 100 million, which
may open the door for more exports
from MERCOSUR producers this year.
ONGOING NEGOTIATIONS WITH E.U.
There are also very strong commercial relations between the MERCOSUR
region and the European Union (E.U.).

The E.U. Trade Commissioner, Karel de


Gucht, visited Paraguay and Uruguay at
the beginning of February in relation to
the bilateral free trade negotiations that
the two sides have been engaged in since
May 2010. He mentioned through a press
release that a balanced and ambitious
free trade agreement between the E.U.
and MERCOSUR could bring substantial economic benefits to both sides and
contribute to the economic recovery.
In December 2010, the XIX Bi-Regional Negotiations Committee was held
in Brasilia, Brazil, where both parties reaffirmed their commitment to negotiate a
comprehensive, balanced and ambitious

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Association Agreement, said the European Parliament (EP). During the meeting, agreements progressed in regards to
market access, rules of origin, services,
investments, technical barriers, etc. The
next meeting between these two regional
blocks will be in Brussels, Belgium and
Asuncin, Paraguay in May.
The progress in these agreements has
not gone without opposition. In January,
the Agriculture Commission of the European Parliament as well as Primary Food
Processors five European trade associations representing manufacturers of
flour, starch, sugar, vegetable oil and proteins, among other products expressed
concerns about the negotiations with the
MERCOSUR due to the negative affect
they believe it may have on the European
agriculture and cattle industries.
MERCOSUR: FRIENDS WILL BE FRIENDS
During the last decade, MERCOSUR
gained renewed strength due to the role
played by Latin American presidents
Luiz Ignacio Lula Da Silva from Brazil,
the recently deceased former Argentine
President Nstor Kirchner, and Venezuelan President Hugo Chvez, who enrolled in the same political and ideological spectrum. A clear example of how
the MERCOSUR began to gain a life of
its own was the Summit of the Americas in Mar del Plata in 2005, where the
U.S. tried to form a free trade agreement
involving the whole American continent
only to see these South American Presidents block the attempt.
Despite this very relevant event, the
MERCOSUR still has plenty of room
for growth. The future appears optimistic as the new leaders of the MERCOSUR Argentine President Cristina Fernndez de Kirchner, the recently
elected Brazilian Dilma Rousseff, as
well as Chvez in Venezuela and Evo
Morales in Bolivia have said they
will continue to consolidate the alliance
of the MERCOSUR. A clear sign of this
was that at the end of January, when
Rousseff chose Argentina to be the first
country to visit as the new president of
Brazil. She said repeatedly during this

For more information, see Page 118.

40

April 2011 / World Grain / www.World-Grain.com

FEATURE: MERCOSUR INFLUENCE CONTINUES TO GROW

MERCOSUR commercial relations

Argentina

Brazil

Uruguay

Paraguay

Soybeans

One of the top world producers,


exclusively for exports to other
continents

One of the top world


producers, exclusively for
exports to othercontinents

Wheat

Big producer, exports


mainly to Brazil,
government restrict exports

One of the main


world importers

Production
for domestic
market and
exports to Brazil

Production for
domestic market
and exports to Brazil

Corn

Production for domestic market


and exports

Production for domestic


market and small amount
for exports

Production for
domestic market

Barley

Natural supplier for


the MERCOSUR

Rising importer

Sources: SAGPyA, Diea, CONAB, ANEC, and CAPECO

trip that the relation between the two


countries is strategic and fundamental
for the regions development.
The balance of trade between Argentina and Brazil showed a deficit of
$209 million for Argentina in January, according to the Brazilian Foreign
Trade Secretary. Wheat was one of the
main five products exported from Argentina to Brazil that month, according
to the private consultant Abeceb. Since
Brazil only covers 50% of its internal
wheat demand with domestic production of roughly 5 million tonnes per
year, Argentina, Uruguay and Paraguay

have become its top wheat suppliers.


The Brazilian Agriculture Fishing and
Cattle Ministry estimates that domestic
production of wheat will reach 7.89 million tonnes a year by 2018-19, while the
internal demand is projected at 12.25
million tonnes by that time. Therefore,
the internal supply will require wheat
imports during the next ten years, projected the Ministry.
According to the CONAB, an organization that is part of the Brazilian Ministry of Agriculture, Fishing and Cattle,
the MERCOSUR produces of 21 million
tonnes of wheat. Paraguay and Uruguay

Since 1855

have elevated production, and together


they exported over 1.6 million tonnes to
Brazil in 2010. Due to its small territory
and its geographical location, Uruguay
has traditionally had Argentina and Brazil as commercial partners.
Argentina, which is the largest wheat
producer in the region, exporting to
Peru, Colombia, Uruguay, Bolivia, Brazil, Africa and the Middle East, sold 3.3
million tonnes of wheat in 2010. For the
2010-11 wheat harvest, the Buenos Aires Cereal Exchange estimates production of more than 15 million tonnes.
Argentina has also been a key ex-

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www.World-Grain.com / World Grain / April 2011

41

FEATURE: MERCOSUR INFLUENCE CONTINUES TO GROW

porter of barley and is generally characterized as the natural supplier of the


MERCOSUR for this product. Argentina, which exported 505,452 tonnes of
barley in 2010, has benefited by the increasing demand from Brazil.
Because the MERCOSUR is a net
exporter of soybeans and soybean oil,
there is little local demand for these
products within the region. The augmented demand for these products
from countries such as China, as well
as the demand originated from the biofuels industry, has caused an increase
in export markets for this crop. In Argentina, this process has also been
boosted by the export restrictions set
for corn and wheat.
While Brazil and Argentina are the
leading soybean producers in the MERCOSUR, Paraguay has made progress
in soybean production. According to the
latest data published by the Paraguayan
Chamber of Exporters and Commercializers of Cereals and Oleaginous
(CAPECO), with an increase of only
6.1% in the cultivated area, Paraguay
produced 7.3 million tonnes of soybeans in 2010 after harvesting only 3.6
million tonnes in 2009. Of that 7.3 million tonnes, Paraguay exported about
5.6 million tonnes of soybeans last year.

The MERCOSUR region is also becoming a strong corn exporter. The National Association of Cereal Exporters
(ANEC) of Brazil estimated that corn
exports could grow in the 2010-11 campaign up to 11 million tonnes, a 40%
increase over the previous crop. The
Brazilian corn harvest is expected to
reach 51.3 million tonnes in 2011 due
to favorable climatic conditions and in
spite of a 9% drop in the cultivated area.
In addition, through a strong increase in
yields, the Argentine corn harvest went
from 12 million tonnes in 2008-09 to
over 22 million tonnes in the last campaign. Uruguay produces over 500,000
tonnes of corn a year, but only for the
domestic market.
EXPORT RESTRICTIONS IN ARGENTINA
Although Argentina consumes about
6.5 million tonnes of wheat and 8 million tonnes of corn a year, not all the
surplus is exported. Since 2006, the local government has restricted exports
in order to assure domestic supply. So
far, 5 million tonnes of corn and 7 million tonnes of wheat have been authorized for exports in the 2010-11 campaign. According to Victoria Jauregui,
a corn expert from Cargill Argentina,
the Argentine Cereals Exporters Cen-

ter divides that amount among trades,


according to each exporters market
share from the last three years. According to this distribution, the National Office of Agropecuary Commercial Control grants the export permits required
to sell the corn to foreign markets. In
addition, wheat pays in Argentina 23%
of export taxes while corn exports pay
20%. It is the only country in the MERCOSUR to apply these fees and restrictions to grain exports.
With the leading wheat producer in
the MERCOSUR limiting exports, the
region could lose market share. A recent
report on South American Wheat, released by Cargill during the last International Association of Operative Millers
Middle East and Africa District Conference, showed that this continent will
continue to become a smaller player in
the world export market pie.
The report also noted that the 2010-11
export wheat availability for destinations
outside the region is diminishing fast.
Cristina Kroll is a freelance writer based in
Buenos Aires, Argentina. She can be reached at:
ckroll@infovia.com.ar
We want to hear from you Send comments and
inquiries to worldgrain@sosland.com. For reprints of
WG articles, e-mail reprints@sosland.com.

For more information, see Page 118.

42

April 2011 / World Grain / www.World-Grain.com

Separating the good from the bad.

When you think

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For more information, see Page 118.

, think

FEATURE

Expanding the

family business
I

t has taken a little less than two decades for Tondo SA to


climb from the 12th ranking among flour milling companies
in the state of Rio Grande do Sul in Brazil to one of the biggest operators in the region.
Today, we have the leadership for homemade flour and
the second position in local cake mixes, said Rogerio Tondo,
president of Tondo SA. We are also second in terms of production and market share.
The companys ascension among the nations millers is
a great source of pride for Rogerio Tondo, a second-generation member of the family business that was launched
58 years ago. The company was founded by Rogerios
parents, Dalvino and Thereza Tondo, Italian descendents
whose family came to Brazil in the 1870s. The business
will eventually be passed to third-generation family mem-

(Above) Buhlers WinCos.r2 automation system is being installed in Tondo


SAs new flour mill in Caxias do Sul, Brazil. Photos courtesy of Buhler.
44

by Arvin Donley

Tondo SA, one of Brazils biggest


millers, is adding a flour mill at its
complex in Caxias do Sul
bers who are currently working with the company, Rogerio
Tondo said.
Tondo SA, which employs 440 people, is headquartered in
Caxias do Sul in southern Brazil. Rogerio Tondo said the companys strategic plan over the next two years is to consolidate
all of its recent investment in the milling and biscuit business.
We want to increase our EBITDA (earnings before interest, tax, depreciation and amortization expenses) next year,
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FEATURE: EXPANDING THE FAMILY BUSINESS

The new mill will feature Buhler Newtronic double and single roller mills, left, and Buhler flow balancer, right.

he said. After that, another cycle of expansion is already planned.


LATEST EXPANSION
In recent years, Tondo SA has undergone
numerous expansions in flour milling.

The companys latest expansion is


taking place in Caxias do Sul, in the
state of Rio Grande do Sul, Brazil,
where a new 400-tonne-per-day flour
mill is being constructed. Total investment in the project is $12 million and

Tondo expects the C mill to be operational by September 2011.


Tondo SA has hired Buhler AG, Uzwil, Switzerland, to design the mill and
supply equipment to the facility.
When the project is completed, Tondo

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46

April 2011 / World Grain / www.World-Grain.com

FEATURE: EXPANDING THE FAMILY BUSINESS

said it will have a milling facility that is


energy efficient and features a sanitary
design, production flexibility and lower
total production and distribution costs.
The mill is specially designed to fulfill the growing emphasis on food safety,
which is extremely important to its industrial customers, Rogerio Tondo said.
The cleaning system is equipped with a
Buhler Combinator MTCD, which is designed to reduce the risk of mycotoxins.
The mill also features a Sortex Z+ color
sorter with InGaAS infrared technology
that helps reduce mycotoxin content. A
light peeling system is used in the second
cleaning with the main objective being
the reduction of heavy metal content as
well as microbiological contamination.
Buhlers WinCos.r2 automation sys-

ucts, we can control the quality much


better and develop tailor-made solutions
to our industrial clients.
All of Tondos flour is transported by
truck with about 60% of it packaged in
50-, 25-, 5- and 1-kilogram bags. Tondo
said about 25% is packaged in larger bags
and 15% of the flour is delivered in bulk.
We invested in a new bagging system

(from Haver & Boecker), with a bag discharger that is able to produce 900 25-kilogram bags per hour, Tondo said. It is
fully automated with the valve bag and
a safety seal, either on paper or plastic.
For the domestic bags (5 and 1 kg),
the machine used is manufactured by
Italpack, an Italian supplier, he said,
adding that all of the packaging ma-

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Today, we have the leadership for homemade flour and
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market share.
Rogerio Tondo,
president, Tondo SA
tem, which features total product traceability, is being installed.
The C mill will be equipped with
Buhlers all-stainless steel SIRIUS
Plansifters, which feature NOVAPUR
synthetic sieves designed for easy maintenance and shorter downtime.
The entire building is being modified
to be pressurized with filtered air, which
will help ventilate the facility and help
prevent dust and insect contamination.
Rogerio Tondo said about 60% of its
flour production is used to make its own
products, which are sold under the companys Orquidea brand.
We produce home flour, bakery flour
and mixes, cake mixes, dried pasta and
biscuits, Tondo said. The other 40
percent is dedicated to our industrial
bakery, pasta and biscuit clients. Since
we produced the finished-good prod-

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www.World-Grain.com / World Grain / April 2011

47

FEATURE: EXPANDING THE FAMILY BUSINESS

chines are integrated with robotization


and palletization system design by another Italian company, TMG.
At the same site of the C mill, Tondo
built a plant five years ago that produces long, short and nest pasta. The products at the plant, which has a monthly
capacity of 3,000 tonnes, are made primarily from a blend of soft and hard
wheat, and a very small percentage
from durum wheat.
This year we started our new biscuit
plant with a line bought from Imaforni,
a well recognized Italian manufacture,
Rogerio Tondo said. The total project is
for four lines, and we plan to be done by
2013. We will have a production capacity
of 3,000 tonnes of cookies per month.
This integrated project flour mill,
pasta and cookies facility is the first
one in southeast and south of Brazil.
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48

April 2011 / World Grain / www.World-Grain.com

FEATURE: EXPANDING THE FAMILY BUSINESS

efficiencies and distribution, and mainly to support and grow


the Orquidea brand line.
Consumption of wheat/flour products in Brazil is stable in
southeast and southern Brazil, following trends in population
growth, Rogerio Tondo said, but in the countrys north and
northeastern region, growth in per capita wheat/flour consumption is trending higher. He said there is growing demand
in all parts of the country for more whole grain products.
RAW MATERIAL CHALLENGES
Brazils tropical climate is not very suitable for growing wheat,
and this problem is reflected in the fact that two of the countrys
less tropical states, Parana and Rio Grande do Sul, account for

This integrated project flour mill, pasta and


cookies facility is the first one in southeast
and south of Brazil.
Rogerio Tondo, president, Tondo SA

over 90% of wheat production. Despite the domestic production,


Brazil only meets about half of its wheat needs and therefore has
to import around 6.5 million tonnes of wheat every year.
Rio Grande do Sul, where Tondo is located, is the second
largest wheat-producing state, but since most of the local crop
is soft wheat, Rogerio Tondo said the company must import
most of its hard wheat from Argentina, Uruguay and Paraguay.
The current situation is contrary to the governments stated
goal of becoming self-sufficient in wheat production. Wheat
is the only major food item that must be imported into Brazil and the government set the minimum price for wheat at
a high level to encourage increased production. Due to the
strong Brazilian currency, imported wheat is priced below the
minimum price, so millers are shipping in imported wheat.
Farmers do not want to sell into the domestic market at prices
below the governments minimum, so the only way to get that
minimum price is to sell to the government. As a result, farmers are petitioning the government to set up a series of auctions at which farmers can sell their wheat to the government
just like they did for safrinha corn produced in central Brazil.
Between January and November 2010, 5.8 million tonnes
of wheat were imported into Brazil. During the August-November period, wheat imports were 29% higher than during
the same period in 2009.
Rogerio Tondo said the explosion of domestic wheat prices
in recent months is having a major impact on the local milling
industry.
This will impact the price of flour for all of the first semester of 2011, he said.
We want to hear from you Send comments and inquiries to worldgrain@
sosland.com. For reprints of WG articles, e-mail reprints@sosland.com.
For more information, see Page 118.

www.World-Grain.com / World Grain / April 2011

49

FEATURE

Whole grains
revolution
W

hile whole grains may be becoming the new norm


in the United States, the international market remains
an untapped frontier with promising growth prospects.
That was a key take-away point from two presentations at the
recent Whole Grains the New Norm conference held Jan. 31Feb. 2. The event, produced by the Whole Grains Council and
Oldways, was held at The Nines Hotel in Portland, Oregon, U.S.
In Latin America, Grupo Bimbo S.A.B. de C.V. is making
headway incorporating whole grains into its global health
and nutrition strategy, said Alejandra Inclan, manager of research and development, corporate, at Grupo Bimbo. Specifically, Bimbo operates its health and nutrition strategy under
five main platforms: reformulation and development of new
products; nutritional information to consumers; responsible
advertising and marketing; promotion of physical activity and
healthy lifestyles; and strategic alliances.
Inclan said Bimbo has had a campaign in place to promote
consumption of whole grains since 2005 by offering products with whole grains and using the Whole Grains Council
(WGC) stamp.
Currently we have more than 250 products, such as breads,
bars, cookies, cakes, tortillas and snacks, she said. All are
sold in more than 15 countries under several brands. And all
of them are using the Whole Grains Council stamp in different
languages.
50

by Eric Shroeder

Latin America, China among next


frontiers for whole grains growth
MANY CHALLENGES IN LATIN AMERICA
Inclan said Grupo Bimbo has helped to launch the WGC
stamp in Spanish, Mandarin and Portuguese, but stressed that
the effort to promote whole grains in Latin America has not
been easy.
The whole grain culture in Latin America is complex, and
the development and marketing of products has been a challenge due to several factors, she said. First, consumers may
be confused about the whole grain definition and how to identify them on a nutrition label.
In many cases weve also found that consumers may get
confused with enriched or added fiber claims. Many consumers may not readily identify that whole grains are a
source of fiber.
Local legislation, language and terminology were other barriers cited by Inclan. The term whole grain is relatively new
in Latin America and its definition is still not present in many
April 2011 / World Grain / www.World-Grain.com

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FEATURE: WHOLE GRAINS REVOLUTION

Whole grains forum set for April in China


The Whole Grains Council, the Grains for Health Foundation
and the Center for Public Nutrition and Development of the National Development and Reform Commission of China are partnering to organize a two-day whole grains forum in Beijing April
20-21. The forum will be part of the Third International Nutrition
& Healthy Industry Expo.
Speakers at the forum will cover a range of topics, including:
Definitions and labeling rules for whole grains in China,
the United States and other parts of the world;
Nutrition recommendations for daily whole grain intake in
China, the United States and other countries;
regulations, so there is no global standard for whole grain ingredients such as
whole wheat flour.
Another issue is the supply chain.
One of the major challenges we faced
was to ensure the supply of whole grain
flour that meets the highest technical
standards and quality in all countries,
she said. In many countries in Latin

The latest research on the health benefits of whole grains;


Market potential for whole grain ingredients and foods
in China;
Whole grains, local foods and cultural traditions.
According to the Grains for Health Foundation, Dr. Hua Sun,
a U.S.-educated food engineer and the North American liaison
for the forum will manage Chinese visas, provide free Chinese
translation for companies display banners, and arrange low-cost
translation services for other company marketing materials.
For more information, visit the Grains for Health Foundation
website at www.grainsforhealth.org.

America you can only find one or two


big milling companies, so we have to
work to develop global specification for
whole grain wheat flour that will meet
the highest global standard of identity.
Regarding manufacturing and product
development, Inclan said reformulations
and process changes have been implemented in operation lines to ensure man-

ufacturing of products with the highest


quality, taste and consumer preference.
Also standing in the way of greater
widespread whole grains consumption
in Latin America is communication, Inclan said.
Whole grains, we think, will continue to be a major trend for baking products, but we think more simple and eas-

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52

April 2011 / World Grain / www.World-Grain.com

FEATURE: WHOLE GRAINS REVOLUTION

ier communication needs to be done for


promoting the benefits of cereal grains
in consumers, especially in Latin America, she said. On the other hand, there
are still big gaps in local legislations
that need to be reviewed regarding standardization of whole grain ingredients,
products and recommended values, especially in South American countries.
She said the whole grain project will
continue to be a main strategy for Grupo
Bimbo for years to come.
CHINA: A NEW MARKET?
Another groundswell is taking place
in China, where Xiaodong Yu, general
director of the Center for Public Nutrition and Development of National Development and Reform Commission of
China, is aiming to make whole grains
mainstream. The reason is simple: Having reached a higher living standard,
Yu said Chinese people are seeking
health, beauty and longevity areas
in which whole grains may be able to
play a key role.
In China, whole grain foods are just
beginning, so we have a lot to learn, Yu
said through Gary Hou, technical manager of the Wheat Marketing Center in
Portland and an interpreter at the conference. He said blogging, marketing,
advertising, media, etc., have not taken
hold of whole grains in China yet, opening the door for extensive growth.
Also painting a positive picture for
whole grains potential in China is the
economic state of the country. In 2009,
the gross domestic product in China
reached $3,777 per capita, and once the
GDP exceeds $3,000, nutritional and
health food consumption increases rapidly, Yu said. With this in mind, Chinese
consumers now can afford to consume
more whole grain foods, he said.
But before China can capitalize on the
immense potential of whole grains, several barriers must be overcome, not the
least of which is the fact traditionally
Chinese people prefer refined foods.
The Chinese like bright noodles, Yu
said. They feel like refined foods are
much better than whole foods.

Yu identified four challenges to promoting whole grain foods in China: recognition, habits, environment and scientific research.
The insufficient recognition and
awareness in China stems from several factors, Yu said, including lack of
basic education about public nutrition
and health. He said public agencies

have not exerted their full functions


yet, and the whole grain industry,
while in its infancy in China, has limited social influence.
Another barrier to increasing whole
grain consumption in China is bad eating habits. Yu said consumers tend to eat
based solely on personal preference, and
many are consuming fewer grain foods

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www.World-Grain.com / World Grain / April 2011

53

FEATURE: WHOLE GRAINS REVOLUTION

Grupo Bimbo wins global award


Grupo Bimbo S.A.B. de C.V. was awarded the Whole Grains Councils (WGC) 2011
Global Award for the companys pioneering work in bringing more whole grains to
Central and South America and now to China.
According to the WGC, Grupo Bimbo has met with regulators and health authorities
from Guatemala to Argentina to explain the importance of whole grain and to tailor
their products to local tastes and regulations.
From our perspective in the U.S., where whole grains are rapidly becoming the new
norm, its difficult to imagine the full extent of the challenges Grupo Bimbo has overcome in their march from country to country, the WGC said. In many Latin American
countries, their efforts were the first to introduce the concept of whole grain and the
Whole Grain stamp locally. Thats what earned the company the 2011 Global Award.
for fear of becoming overweight.
Yu said China needs to rapidly develop
a macro-environment to promote product
development, production, marketing, advertising, regulations, standards, strategic plans and policies to speed up the development of the whole grains industry.
Finally, in terms of scientific research,
more funding is needed, he said. Spe-

cifically, funding is needed to promote


whole grain foods, explore the health
benefits of whole grain foods, create
diverse products to meet consumers
needs, and to establish and improve a
system of laws, regulations and standards for the whole grain industry.
Yu said the groundwork has been set
to establish a national organization on

Grain cooling

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whole grains foods with backup from different sectors, and the Center for Public
Nutrition and Development of National
Development & Reform Commissions of
China is partnering with the Whole Grains
Council and the Grains for Health Foundation on a conference later this spring.
In China, the variety of grain-based
products is very similar to other countries,
such as the U.S., but we dont see many
whole grain-based foods, Yu said. Companies that issue whole grain foods in the
U.S. dont have similar versions in China.
He continued, Its not because they
dont like whole grain foods. Its just
there are no options available.
Eric Schroeder is managing editor of Milling &
Baking News, sister publication of World Grain.
He can be reached at eschroeder@sosland.com.
We want to hear from you Send comments and
inquiries to worldgrain@sosland.com. For reprints of
WG articles, e-mail reprints@sosland.com.

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54

For more information, see Page 118.

April 2011 / World Grain / www.World-Grain.com

For more information, see Page 118.

FEATURE

GEAPS EXCHANGE
D

espite the cloudy and rainy conditions at the 2011 Grain


Elevator and Processing Societys (GEAPS) Exchange
in Portland, Oregon, U.S., the positive mood of the
thriving global grain industry shined through. The 82nd annual Exchange 2011, held Feb. 27 through March 1 at the Oregon Convention Center, attracted 2,065 attendees from 26
nations.
Participants at this years Exchange chose from 19 educational
sessions on a broad range of topics affecting the grain industry.
The events educational programming covered issues such as
mycotoxins, environmental responsibilities, and various safety
and efficiency issues.
Sessions related to safety and efficiency included information
on Preventing and Responding to Grain Dryer Fires, Asset
Management of Steel Storage Structures, Fall Protection Systems and Rescue, and Optimize and Regulate Electric Motors
with Variable Frequency Drives.
One presentation that was particularly well received was
made by Cargills Nick Friant. The presentation was entitled:
Food and Feed Safety: What Grain Operators Need to Know.
The presentation covered a variety of topics including current
and pending legislation pertaining to the U.S. Food and Drug
Administrations regulations on the food and feed industry.
THE CENTER
During their speeches at the GEAPS meeting, outgoing GEAPS
International President Rick Krier and incoming GEAPS International President Mark Fedje discussed an industry initiative to
establish an International Center for Grain Industry Operations.
They announced that a collection of representatives from 17 grain
industry trade associations, professional societies, academic and
research institutions would attend a grain industry stakeholders
summit March 30 to discuss the establishment of the Center as
a shared resource with a common vision.
GEAPS strategic goal our envisioned future is to
be the knowledge resource for the world of grain handling
industry operations, and each year we get closer to making
that vision a reality, Fedje said. In the coming year, GEAPS
will further develop the areas of professional development
and continuing education including, but not limited to, a grain
56

by Meyer Sosland

Education and safety are the


focus at the 82nd annual event in
Portland, Oregon
operations management credentialing program, expanding the
distance education program, and further developing our collaboration with Kansas State University (KSU), which will include advancing the development of the International Center
for Grain Industry Operations.
He further highlighted the expansion of the distance education program that GEAPS and KSU produce together.
This year, GEAPS and K-State have added four new
courses to the academic calendar for a total of 12 courses, and
companies can request a distance education course for employees on demand at any time, with one company already
taking advantage of this great opportunity.
The development of the next generation of grain industry
professionals is at the forefront of GEAPS leaderships strategic planning.
We have been working with K-State to develop the firstever academic degree program for grain handling operations
professionals a standalone minor in grain operations management, Krier told attendees. This comprehensive curriculum program will be available to any person who is working
toward a four-year degree or has obtained a four-year degree.
Although the minor degree will be from K-State, you can attend another institution and still obtain this minor.
NEW LEADERS
During the Exchange, 2010-11 Board Chair Mark Buzz
Tourangeau announced the newest GEAPS member leaders
as one of his final acts as board chair.
Each year, GEAPS members nominate and select directors and officers to represent them on the International Board
of Directors. GEAPS members elected Slav Waplak, Viterra
April 2011 / World Grain / www.World-Grain.com

For more information, see Page 118.

FEATURE: GEAPS EXCHANGE 2011

and member of the Canadian Prairies


Chapter, to the office of International
2011-12 second vice-president. This
puts him in line to become GEAPS International president in 2014.
It was also announced that succeeding to the office of first vice-president is
Bill Lyster, Ag Partners LLC, and member of the Greater Iowa Chapter. Lyster
will become international president at
next years Exchange in Minneapolis,
Minnesota, U.S.
International 2010-11 First Vice-President Mark Fedje, General Mills Inc.
and member of the Minneapolis Chapter, assumed the office of International
2011-12 president. International 201011 President Rick Krier, Western Iowa
Cooperative, Siouxland Chapter, succeeded to the office of 2011-12 International board chair.
Elected to terms as 2011-14 International directors were:

Chad Cook, Desert Grain Storage,


Intermountain Chapter;
Matthew Kerrigan, Bunge North
America, Great River Chapter; and
Stephen Tillery, Tri-State Chapter.
During the Associates board meeting, 2010-11 Associates Vice-President
Gary Vaughn, Union Iron Works and
member of the Greater Iowa Chapter,
succeeded to the position of 2011-12
president. Also at the meeting, Associates Board 2011-12 Secretary Deborah
Good, Brock Grain Systems and member of the Cornbelt Chapter, succeeded
to the office of 2011-12 vice-president.
At their meeting on Feb. 28, the
GEAPS Associates Board met to announce and ratify the results of last
months Associates Board election. The
Associates board elected Scott Chant,
Safe-Grain/Maxi-Tronic, Inc. and Seaway Chapter member, as Associates
2011-12 secretary. As Associates board

secretary, Chant will succeed to the offices of Associates 2012-13 vice-president and 2013-14 president.
The following four Associate members were named as 2011-14 Associates
Board directors:
Jeany Hesse, Integra Plastics, Inc.
and member of the Siouxland Chapter;
Brend King, Intersystems and member of the Kansas City Chapter;
Colin McClure, PMI Nebraska, LLC
and member of the Greater Nebraska
Chapter; and
Jeffrey Roumph, W.D. Patterson
Co. Inc. and member of the Kansas City
Chapter.
INTERNATIONAL MEMBER
OF DISTINCTION
Kevin Danner, corporate environmental, health and safety manager at West
Central Cooperative in Ralson, Iowa,
U.S., was given the International Mem-

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58

April 2011 / World Grain / www.World-Grain.com

FEATURE: GEAPS EXCHANGE 2011

ber of Distinction award GEAPS


highest leadership service recognition
award during the Presidents Banquet on March 1. The award is presented by the International board to honor
members who have made extraordinary
contributions to advancing GEAPS core
purpose and values.
During the course of his 22 years as a
GEAPS member, Danner has held many
different leadership positions at both
the chapter and International levels. At
the International level, he served as a
member and chair of GEAPS Safety and
Health Committee and later the GEAPS/
NGFA Safety, Health and Environment
Committee. While serving GEAPS in
that role, he also served as an International board director and executive officer including leadership service as International 2005-06 president and 2006-07
board chair. And while serving in those
leadership roles, he also simultaneously
served as a member of the Executive
Committee, Marketing Oversight Committee, and the Host Advisory Council
for the 2008 GEAPS Exchange.
It is clear that this member of distinction has always been engaged and
willing to lead, said GEAPS 2011-12
International President Mark Fedje, who
presented the award to Danner. The
amount of time and energy that he has
expended on behalf of GEAPS is both
remarkable and extremely admirable.
We are truly honored to have had such
an influential industry professional give
so much of himself to GEAPS.

processing industries.
Fedje said Maier has enjoyed a very
successful and distinguished career during
which he has demonstrated great integrity
and dedication.
A GEAPS member since 1992, Maier
has served the industry by developing and
launching initiatives for attracting and developing future leaders.

When he was Purdue Universitys


Associate Head of Extension Agriculture Engineering, Maier helped GEAPS
form the Distance Education Program
Oversight Committee (DEPOC) to assist in the development of GEAPS first
distance education courses. Fedje noted
that since its beginning in 2005, the dis(Continued on page 67)

MAIER NAMED INDUSTRY LEADER


Dirk Maier, head of the department
of grain science and industry at Kansas State University and member of
the Great Plains Chapter, at the Presidents Banquet received the GEAPS
Industry Leader Award, which is
given to individuals, members and
non-members who have made extraordinary contributions to the advancement of operations safety, health, environmental responsibility, efficiency
and stored-grain quality preservation
excellence in the grain handling and
For more information, see Page 118.

www.World-Grain.com / World Grain / April 2011

59

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FEATURE: GEAPS EXCHANGE 2011

Johnny Wheat, center, of 4B Components Ltd demonstrates a piece of


equipment to a group of visitors.

Adam Tietyen, left, and Jason Quackenbush are part of the team representing Rexnord during the expo.

From left to right: Per Larsson of Tornum AB, Dave Crompton OPIsystems
Inc-Integris USA, and Jan Hellemar of Tornum AB visit during the Expo.

Mike Spillum, center, of Hi Roller talks about the companys equipment


with Geoffrey Johnson - FWS Construction, left, and Brent Boeckmann ADM Grain.

Representing Chief at the Expo are, from left, Dick Remmenga, Travys
Woodside and Ross Carlson.

From left, Tapcos Carl Swisher, Brennan Radmer, Jimi Davidson and
Jim Cunningham.

62

April 2011 / World Grain / www.World-Grain.com

FEATURE: GEAPS EXCHANGE 2011

From left, Kepler Webers Everson del Fabbro, Oliver Colas, Joo Tadeu
Vino and Andr Windmoller.

Kirk Nelson, right, of Behlen visits with Andrey Kurichyev.

Buhlers Mark Larson, center, and a colleague work with a client on the
show floor of the GEAPS Expo 2011.

Mark Olson, left, of Gamet Manufacturing talks with a visitor at


Gamets booth.

Ricardo Reggeti, center, of Mega Dryers reviews the companys products


with GEAPS Expo attendees.

Representing Maxilift at the show are from left: Bo Fisher, Sonya Fisher
and Vic Sahm.

www.World-Grain.com / World Grain / April 2011

63

FEATURE: GEAPS EXCHANGE 2011

Michael Larson, left, and Jeremy Kemp represented Mathews Company


at the Exchange.

Westeels Shawn Murfitt addresses customer questions at the GEAPS


Expo 2011.

Russ Barragree of Vortex Valves North America awaits Expo attendees.

Spiro Harlaftis, left, and Emmanuel Koulinos of Matrix Group.

Kevin Miles (left) of Rolfes@Boone visits with GEAPS Lifetime Member


Alan Geiken.

Tim Schmitz, left, of Tramco and Joel Headings of Bunge North America.

64

April 2011 / World Grain / www.World-Grain.com

FEATURE: GEAPS EXCHANGE 2011

From left: Jon Tormo, Regan Heaton and Les Garcia represented
SCAFCO at the Expo.

Mitchel Golleher of GSI Group takes a call during the GEAPS Expo.

Representing the Essmueller Company are from left: Bill McLean, Matthew McLean and Harold Mauck.

John Tuttle, left, and Roger Frederick, right, in their white Brock shirts
consult with customers on the show floor.

David Wernsing, left, of Union Iron and Joerg Zimmermann ,right,


of Ag Growth International visit during a break in the expo.

Andrey Kurichyev, left, talks with Intersystems Ukranian representative


Polina Lytvyenko.

www.World-Grain.com / World Grain / April 2011

65

FEATURE: GEAPS EXCHANGE 2011

2010 Safety Awards announced at GEAPS Exchange 2011


At the Grain Elevator and Processing
Society (GEAPS) Exchange 2011, during the General Session, GEAPS honored 29 companies and 425 facilities
as part of the 2010 Safety Awards Program. These companies and facilities
completed 2010 without any lost-time
injury or illness.
The following list indicates companies
and the number of their facilities that did
not record a work-related lost-time injury
or illness in 2010:
Agrex Inc, 2 facilities;
Alabama Farmers Coop, 1 facility;
The Andersons, Inc., 12 facilities;
Arizona Grain, Inc., 3 facilities;
Attebury Grain, LLC, 12 facilities;
Bunge North America, 72 facilities;
Cargill AgHorizons, 93 facilities;
Cargill Canada, 59 facilities;
Cargill Grain & Oilseeds, 3 facilities;
CHS Inc., 2 facilities;

Consolidated Grain and Barge,


2 facilities;
Control Stuff, 1 facility;
The DeLong Company, 3 facilities;
Farmers Cooperative Company, 6 facilities
Farmers Grain Terminal, 8 facilities;
Gavilon Grain LLC, 18 facilities;
General Mills Inc., 5 facilities;
Latty Grain Ltd., 1 facility;
Mennel Milling Company, 2 facilities;
MillerCoors LLC, 7 facilities;
North Central Farmers Elevator, 1 facility
PACMA, 5 facilities;
Peavey Co, 1 facility;
Perdue AgriBusiness, 31 facilities;
Riceland Foods Inc., 21 facilities;
SCAFCO Grain Systems Company,
1 facility;
The Scoular Co., 40 facilities;
South Dakota Wheat Growers,
3 facilities;
Structural Restoration Inc., 1 facility;

Tate and Lyle Grain, 1 facility;


Wear Concepts Inc, 1 facility;
West Central, 7 facilities;
GEAPS also honored companies and facilities with extended records of achievement in safety. These awards went to
the top five facilities, measured through
the years in terms of cumulative hours
without lost-time injury or illness.
Winners honored at the Exchange were:
First place: Bunge North Americas Morristown, Indiana facility
(1,189,456 hours);
Second place: Farmers Grain Terminal Greenville, Mississippi facility
(1,031,456 hours);
Third place: Cargill Grain & Oilseeds
Houston Export Elevator, Texas facility
(980,502 hours);
Fourth place: The Andersons, Inc.,
Champaign, Illinois facility (871,736
hours); and

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66

For more information, see Page 118.

April 2011 / World Grain / www.World-Grain.com

FEATURE: GEAPS EXCHANGE 2011

Fifth place: Cargill AgHorizons Morristown, Indiana facility (871,459 hours).


Honors in another category the
top five facilities in terms of consecutive years theyve received a GEAPS
Safety Award went to:
First place: Bunge North Americas
facility in DeSoto Landing, Arkansas
(32 years);
Second place: the Bunge North America Fountain Bluff facility in Grand
Tower, Illinois (28 years);
Third place: Cargill AgHorizons facility in Tipton, Indiana (25 years);
Fourth place: Bunge North America
facilities in Huffman, Arkansas; Hickman, Kentucky; LaGrange, Missouri;
and Yazoo City, Mississippi (24 years);
Fifth place: The Scoular Companys facility in Sidney, Nebraska;
and Bunge North Americas Newport, Arkansas, facility (22 years).
(Continued from page 59)
tance education program has grown to
12 courses per year and has had over
1,000 students.
CORBETT AWARD
Van Buchanan, grain sales manager at
RBH Mill & Elevator, Wichita, Kansas,
U.S., received the Corbett Award at the
Presidents Banquet.
The GEAPS Associates Board bestows the Corbett Award in recognition
of Associate members who, through individual initiative and volunteer leadership service, have made extraordinary
contributions to advancing GEAPS
core purpose on behalf of all GEAPS
members.
Buchanan, a GEAPS member since
1974, was described by Associates
Board President Gary Vaughn as someone who recognizes the importance of
service.
In addition to serving at the chapter
level, he played an instrumental role as
co-chair of the Host Advisory Committee
(HAC) for GEAPS Exchange 2010 and
serves as his chapters unofficial historian.

At the GEAPS International level,


Buchanan served as an Associates
board director for six years and as a
member of the Chapter Resources Committee (CRC).
Vaughn said that Buchanan has always been very outgoing and dedicated
when it comes to promoting members
and the success of GEAPS.

He always believed that the success of GEAPS starts at the chapter


level with quality professional development programs and networking opportunities, and he led by example,
he said.
We want to hear from you Send comments and
inquiries to worldgrain@sosland.com. For reprints of
WG articles, e-mail reprints@sosland.com.

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www.World-Grain.com / World Grain / April 2011

67

FEATURE

Conference
B

ritish millers want farmers to grow milling wheat, delegates at a conference aimed at every part of the milling
supply chain were told recently. All the same, they got
a reminder of the vital importance of the U.S. to the world
grain supply.
The Home Grown Cereals Authority/National Association
of British and Irish Millers (HGCA/nabim) Milling Wheat
Conference, held March 1 at the Cambridge Belfry in Camborne, England, also included information about the importance
of agrochemicals to maintaining high yields in the maritime
British climate.
The proportion of home-grown wheat used by millers
has continued to rise, said Alex Waugh, director general of
nabim. We continue to want to use U.K. wheat. Its a good
source for us.
He recognized that farmers had to make money. As a milling industry, were interested in you making a profit from supplying wheat to the milling industry.
Theres certainly no shortage of challenges in the milling
wheat sector, said Rebecca Geraghty, who is sector head for
the HGCA under its umbrella organization, the Agricultural
and Horticultural Development Board. Responding to prices
and managing market volatility are understandably at the forefront. More has got to be done to reduce waste in production,
storage and distribution of our food. More has got to be done
with less.
Jack Watts, senior analyst, AHDB Market Intelligence Cereals and Oilseeds, warned that volatility would also affect
farmers costs.
Expect more volatility in 2011, but not just volatility in
grain prices, he said. We are also seeing huge volatility in
cost of production. The margins are there, but volatility can
quickly eradicate those margins.
We need a broad minded approach to risk management.
We can expect to see further volatility in 2011.
68

by Chris Lyddon

British millers remind growers


theres demand for domestic wheat
Watts had warm words for the sectors performance in dealing with price movements. Id like to congratulate really the
whole supply chain on your efforts in combating the volatility
over the last six months, he said.
He took the view that the U.S. wheat market was relatively
well stocked, with a stocks-to-use ratio of over 30%. There
were also stocks available in the key exporters.
There is some wheat left in the back of the global barn,
Watts said. The U.S. remains an important fallback position,
an insurance policy if you like, against the failure of cheaper
supplies.
China and India bring political uncertainty, in Wattss view.
Their main objective is to protect their residents from
food price inflation, he said. We are unlikely to see Chinas wheat stocks seeing the world market, but they will
act as a buffer.
For 2011-12, Watts predicted an increase in harvested wheat
area. World farmers are quite rational people who like anyone else will respond to price, he said.
He also foresaw the potential for more Chinese involvement in the world market. I dont think China, as a quality
wheat giant, is going to be fully awake in 2011-12, but it will
be stirring, he said.
In the U.S., he expected to see an increase in winter wheat
area of around 5%, but its from a low base.
To the U.S. farmer, its becoming more attractive to grow
more maize and more soybeans, he said. There is an arguApril 2011 / World Grain / www.World-Grain.com

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FEATURE: HGCA/NABIM CONFERENCE

ment that there is a GM driver in there.


Average to good weather across North
America could lead to a surplus. However, it isnt going to take very many
weather issues to spike this market
again, he said. It could go either way.

The proportion of homegrown wheat used by millers has


continued to rise. We continue
to want to use U.K. wheat. Its a
good source for us.
Alex Waugh,
director general, nabim

nabim Director General Alex Waugh speaks during the HGCA/nabim Conference on March 1 in Camborne, England. Photos by Chris Lyddon.

Watts predicted a partial recovery, to


86 million tonnes from 61 million in
2010, in Russias total grain production.
Russia is going to be a key player
and be a bit of a wild card, he said.

For more information, see Page 118.

70

April 2011 / World Grain / www.World-Grain.com

FEATURE: HGCA/NABIM CONFERENCE

Its really the improved demand from the main exporter


markets that has been key this season, he said. Weve seen
competitive pricing in the first half of 2010-11 against our
main rivals, the French.

Agronomist Bill Clark talks about crop inputs during the conference.

We are not expecting to see any assessment of the export ban


until spring or summer, he said. If we manage to achieve an
86-million-tonne Russian grain crop, Id expect to see Russian exports of seven to ten million tonnes.
In the European Union (E.U.), wheat area for 2011-12 had
risen by 1.5% and production was expected to reach 135 million tonnes, compared to E.U. grain trade body COCERALs
figure of 128.1 million for 2010. That could mean a stock recovery and an ambitious export target of 20 million tonnes.
Watts also called for the coming reform of E.U. farm policy
to make sure there is a reserve of land available.
The market needs to maintain access to that land that at
100 a tonne probably isnt profitable but at 150 a tonne
helps increase supply, he said.
U.K. EXPORTS FAST
From a British perspective, the main feature of this year
has been fast exports at levels not apparently justified by the
balance sheet.
By the end of December, the U.K. had exported 1.89 million tonnes of wheat, he said. Its above the indication for
the total season which is 1.3 million. We need to see further
change in supply and demand.
He suggested that grain might come into Europe from outside to make up the difference. It may well be that we see
some Australian grains imported into Europe, even into the
U.K., Watts said.
High prices could cut demand from the level originally
foreseen, while the balance sheet might also be made to balance by taking U.K. wheat stocks down to a record low.

HIGH PESTICIDE USE


British farmers produce high wheat yields, but they do it by
using high levels of inputs. We have the highest pesticide use
of any country in Europe, noted top agronomist Bill Clark,
director of the research centre Brooms Barn. He reckoned that
producing milling wheat required a different mindset to producing large quantities of feed wheat.
He identified septoria and the rusts as the main problems,
which could affect quality and yield. He also expressed concern about Fusarium, or at least about some farmers failure to
prevent the most obvious risks. No sensible grower of milling
wheat should be growing maize in the rotation, he said.
He criticized the use of strips of maize for cover for game
birds. If youre going to put game cover, put something else,
he said.
However, Clark reminded delegates that some types of Fusarium have few or no symptoms.
People talk up Fusarium, he said. It looks much dif-

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www.World-Grain.com / World Grain / April 2011

71

FEATURE: HGCA/NABIM CONFERENCE

World wheat supply and demand 2010-11


- degradation in quality exportable wheat stocks
in million
tonnes
World
U.S.
Canada
E.U.-27
Russia
Ukraine
Australia
Argentina
China
India

Opening
197.6
26.6
7.8
15.9
11.9
2.4
4.1
1.4
54.3
16.1

Production
645.4
60.1
23.2
136.5
41.5
16.9
25.0
14.0
114.5
80.7

Domestic
665.2
32.0
8.2
122.0
47.5
11.6
8.5
5.9
108.8
82.4

Exports
125.3
35.4
17.5
21.5
4.0
5.5
13.5
8.5
1.0
0.2

Closing
177.8
22.3
5.7
13.4
3.9
2.2
7.2
1.0
60.0
14.5

STU %
27%
33%
22%
9%
8%
13%
33%
7%
55%
18%

Source: U.S. Department of Agriculture

ferent if you just look at the ones that


are serious mycotoxin producers. If
you look at the levels of mycotoxin,
instead of talking about Fusarium, we
should be talking about the high quality of grain we have in the U.K., probably the lowest mycotoxin levels in
the world, he said.
He questioned the need for an ear
spray. We now have this new group of
fungicides the SDHIs, he explained.
You can have very long-lasting protection. It then asks the question: Why are
you putting an ear spray on?
According to Clark, the average farmer is not using enough fungicide. Fungicide inputs are a key input to yield
protection and yield building, he said.
With prices where they are, its much
easier to get farmers to put realistic levels of fungicide on.

Roger Sylvester-Bradley, principal


research scientist at advisers ADAS,
looked at the problem of why yield
gains in trials were not being repeated

Expect more volatility in


2011, but not just volatility in
grain prices. We are also seeing huge volatility in cost of
production.
Jack Watts,
senior analyst, AHDB
on farms. The problem is when you
look at the national statistics we dont
see the yield increases, he said. Somewhere we have lost a tonne.
Peter Riley, senior partner, Prime Agri-

culture, stressed the need for consistency.


It is my experience that when we
look at growing consistent quality, we
get higher yields, he said. The two go
together.
Large blocks of identically treated
crop are a good way of getting quality,
he said.
It might be worth investing more.
There is still a tendency for farms to
have the complement of labor and machines that was relevant to lower commodity prices.
He stressed the need for field drainage. You cant grow good consistent
crops on wet soil, he said. Mole plowing takes the water to the drains.
Growers would have to invest in inputs to get the best contribution from
the crop. Nitrogen was vital to yield
and getting bread-making quality.
There was an increased requirement
for sulphur.
Emissions through the winter that
we used to rely on to fertilize the crop
are simply not there any longer, he
said. Certainly on lighter lands at the
moment we are looking at not one application of sulphur but sequential
applications of sulphur to maintain a
good crop.
Chris Lyddon is World Grains European editor. He
may be contacted at: chris.lyddon@ntlworld.com.
We want to hear from you Send comments and
inquiries to worldgrain@sosland.com. For reprints of
WG articles, e-mail reprints@sosland.com.

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April 2011 / World Grain / www.World-Grain.com

For more information, see Page 118.

GRAINOPERATIONS

Early spoilage
detection
Carbon dioxide monitoring of grain
has the potential to save both
money and lives
by Arvin Donley

It has been established in laboratory and field trials that


spoiling grain produces high carbon dioxide (CO2) levels compared to good quality grain, so it is important to
monitor stored grain for elevated levels of CO2 to minimize
spoilage.
Why is this so important? During his presentation, Monitoring CO2 in Grain Bins: Putting the Research to Work, at
the 2011 GEAPS Exchange in Portland, Oregon, U.S., Bob
Marlow, regional operations manager of The Andersons, said
it is estimated that that over $1 billion is lost worldwide each
year due to grain spoilage.
In the U.S. alone, there is well over 20 billion bushels
of grain stored each year, so maintaining grain quality is
essential, said Marlow, who oversees three grain facilities in Indiana with nearly 19 million bushels of storage
capacity.
Elevated levels of carbon dioxide (CO2) in localized pockets of a grain mass are attributed to a combination of factors
such as moisture content, presence of molds, insect infestation
and temperature.
He said, in general, safe grain storage conditions are
found at relative CO2 concentrations between 400 and 500
parts per million (ppm). Levels that are consistently around
1,000 ppm means a problem could be occurring and readings of 3,000 ppm or greater means that spoilage is certainly occurring.
We cant tell how many bushels are affected, but that
something is going on in the way of spoilage, he said. Research is now being done to see if we can correlate the amount
of spoilage to a certain level in parts per million.
Marlow said detecting and monitoring CO2 levels in the
headspace of a storage structure or at the aeration fan outlets
can give an early warning about grain spoilage which may
74

A large pile of barley located in southern Saskatchewan Canada suffered


damage from heating that was caused by damp kochia weed seeds in the
grain. Photo by 4loops.
April 2011 / World Grain / www.World-Grain.com

For more information, see Page 118.

GRAINOPERATIONS

otherwise go undetected with conventional temperature cables. These hot


spots may occur away from temperature cables, making early detection of
spoilage difficult.
Temperature cables have been used
for years and will continue to be used for

past has been overcome through technological advances, which have made
accurate and durable CO2 sensors available at a reasonable cost.
Handheld and fixed CO2 sensors
are now used in order to get an early
warning about spoilage conditions in a

In the U.S. alone, there is well over 15 billion bushels of grain


stored each year, so maintaining grain quality is essential.
Bob Marlow, regional operations manager, The Andersons

years, Marlow said. Temperature cables are a valuable tool in our business.
The problem, Marlow said, is that
temperature cables can detect heat, but
only if they are located at relatively
close range to the hot spots.
Grain is an excellent insulator so it
can take a long time for heat to transfer
through the grain where the temperature
cables can detect it, he said.
While CO2 monitoring is not a
brand new technology, its application
in grain facilities is a relatively recent
phenomenon.
Marlow noted that the major constraint of expensive, inaccurate and
cumbersome CO2 sensors from years

grain mass so that stored grain managers can take corrective actions such as
aerating, turning, fumigating or selling grain.
HANDHELD VERSUS FIXED SYSTEMS
If a grain facility chooses to implement CO2 monitoring as a quality control measure, it then must decide whether to use handheld or fixed monitoring
systems.
The initial cost of handheld units is
much lower, but they do require some
training of personnel and standards
should be established on how to use
them. Marlow noted that the accuracy of
handheld units can be affected by wide

temperature swings and, in particular,


extremely low temperatures.
Perhaps the biggest disadvantage of
using the handheld versions is that they
are more time consuming than using
fixed sensors.
One thing about using handheld sensors is it requires that you record a lot of
data over a long period of time, he said.
Fixed sensors are typically mounted
in the headspace of bins and on discharge fans.
The biggest advantage in using fixed
systems is their convenience, Marlow
said. They are typically monitored by an
outside source and the potential for human error is eliminated.
You dont have to worry about
somebody forgetting to take the readings, Marlow said. They are continuously gathering data for you. The
initial cost is significantly more than
a handheld sensor, but they give you
more flexibility.
FIELD TRIAL
A paper entitled, Monitoring Carbon Dioxide Levels for Early Detection of Spoilage and Pests in Stored
Grain, authored by researchers at
Purdue University, outlines the results
of a field trial conducted at The Ander-

For more information, see Page 118.

76

April 2011 / World Grain / www.World-Grain.com

GRAINOPERATIONS

sons facility in Delphi, Indiana, U.S.


The trial was conducted from April
through September 2005 in three of
the facilitys five large steel storage
tanks that contained corn (maize), and
from January through May 2006 in two
ground piles.
In the steel tanks, CO2 sensors were
placed in the headspace and in the fan
exhaust air stream of each tank. Four
sensors were installed in the headspace
through the four roof vents and another
four sensors were installed on the grating of the exhaust air outlet. One additional sensor was installed at the eave of
one of the tanks to monitor the ambient
CO2 level.
For the oblong pile of grain, four
sensors were installed at the fan exhaust air streams. Each pile had two
sensors on two fans monitoring the exhaust air on a continuous basis. For the

Quantity/Quality of yellow maize


Location

Quantity stored
(tonnes)

Grade of maize

Moisture content

Damage

11,250
11,250
11,250
42,500
35,000

YC-2
YC-2
YC-2
YC-2
YC-2

15.50%
15.70%
15.70%
15.90%
16.30%

17%
3%
17%
2.90%
3.20%

Tank 52
Tank 54
Tank 55
Round pile
Oblong pile
Source: Purdue University

the grain surface nearer to Sensor 2


than the other two sensors.
Compared to the other two tanks,
the corn in this storage unit was of better initial quality with only 3% damage compared to 17% for the other two
tanks. Researchers said the increased
CO2 levels in this tank compared to the
other two tanks could not be satisfactorily explained.
The CO2 sensors at the air outlets at
the bottom of the tank showed a peak

of 2,000 ppm in the second week of


May, but after aeration was started
May 11, the levels dropped to the 400
to 600 ppm range for several weeks
before starting to climb and reaching a peak of 4,200 ppm the second
week of June. Similar spikes in CO2
were observed throughout the rest of
the summer but were reduced through
aeration.
Based on data collected from January
to May 2006 for the round pile, CO2 lev-

If a grain facility chooses to


implement CO2 monitoring as
a quality control measure, it
then must decide whether to
use handheld or fixed monitoring systems.

round pile, CO2 sensors were installed


at the exhaust air outlet of four lowspeed fans and four high-speed fans.
One additional sensor was installed
near the radio to monitor the ambient
CO2 level.
The data collected in one of the
storage tanks (Tank 54) showed the
benefit of using CO2 sensors for early
detection of spoilage. The CO2 levels
in the headspace of this tank steadily
climbed from 500 ppm to 5,000 ppm
by the second week of June, while the
headspace temperature increased to 70
degrees F. One of the sensors showed
an early peak of 3,500 ppm in the first
week of May while the other two sensors indicated about 1,000 ppm. This
was probably due to increased spoilage activity at a localized spot below
For more information, see Page 118.

www.World-Grain.com / World Grain / April 2011

77

GRAINOPERATIONS

Monthly CO2 levels

At four locations of the oblong pile between January


and March 2005 CO2 concentration level (ppm)

1,500
1,200
900

the pile). CO2 levels measured monthly at Fan 3 showed a


slight increase from about 1,000 ppm to over 1,200 ppm,
while CO2 levels at the other three fans remained steady,
between 500 to 850 ppm. Upon unloading of the grain,
quality analysis confirmed higher levels of damaged grain
located near Fan 3.
The trial showed that temperature cables alone might not be
a reliable indicator of grain conditions in storage structures.

600
300
0

January
Fan 2

February
Fan 3

Fan 8

March
Fan 9

Source: Purdue University

els did not increase noticeably at most locations that CO2 sensors were installed. CO2 levels of 350 to 500 ppm measured at
the eight locations of the round pile were almost the same as
the ambient CO2 levels from January to May.
CO2 levels measured from the oblong pile indicated high
concentrations at one location (Fan 3 on the west end of

The CO2 monitoring technology was confirmed as a viable alternative to temperature-only monitoring for early warning
of grain spoilage, especially in outdoor ground piles where
temperature monitoring is not an option.
Our results also showed that CO2 levels correlated with
growth of fungi species known to cause visible mold damage
on grain kernels, the Purdue researchers wrote. Thus, increasing CO2 levels can give operations managers important
information for making better decisions to protect grain quality and prevent early spoilage.
POTENTIAL LIFE SAVER
I think its really important to take a hard look at this new
technology, Marlow said. Its one of the best things to come
along for monitoring grain conditions. Keep in mind that it
wont replace what youve been doing before. It doesnt mean
you should get rid of temperature cable systems, but rather
you should use it to supplement those systems. Its another
thing in your tool box that you can use on the grain quality
management side.
Besides reducing grain spoilage, Marlow said CO2 monitoring technology can also keep employees from entering storage
tanks, which ultimately saves lives. He recalled how years ago
it was standard practice to walk on the surface of grain to try
to detect spoilage problems.
Unfortunately, despite intensive educational efforts by the
industry, these types of dangerous practices are still taking
place. In the United States in 2010, there were 51 grain entrapments resulting in 26 deaths.
When theres an indication of trouble, you have the ability to react earlier than you would with traditional methods,
before the temperature cable reacts, he said. If you do that
you save a trip inside the bin. That means you or someone you
could avoid becoming a statistic.

TECHNOLOGIY
ENGINEERING
SERVICE

Benefit through Technology

Detecting and monitoring CO2 levels can give


an early warning about grain spoilage which
may otherwise go undetected with conventional temperature cables.

www.petkus.de
We want to hear from you Send comments and inquiries to worldgrain@
sosland.com. For reprints of WG articles, e-mail reprints@sosland.com.

For more information, see Page 118.

78

April 2011 / World Grain / www.World-Grain.com

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For more information, see Page 118.

FEATURE

Japan coping
with disaster

onsidering the immensity of the earthquake and tsunami that hit Japan on March 11, the countrys basic
food processing infrastructure sustained little damage.
The exception, of course, centered in the northeast section of
the country where the damage from the twin natural disasters,
along with severe damage to a nuclear power plant, have either
shut down or severely interrupted operations at several plants in
an area of Japan that is not heavily populated.
Most of Japans food industry infrastructure, including
flour mills and baking plants, is located to serve the Tokyo
Bay area as well as the southern part of the nation where
population is heaviest.
Operating difficulties in areas not directly affected by the
earthquake and severe flooding were primarily the result of
periodic power interruptions. Due to the breakdown at the Fukushima Daiichi nuclear power plant, electrical supplies were
being rationed through rolling blackout.
The rolling blackout disrupted transportation in a country
that heavily counts on rail services to move people. Commuting problems have been severe in many areas, but the major
food companies assert that they have had little or no production interruptions because employees could not reach plants.
As a nation that relies primarily on imported wheat to supply its flour mills, assuring an adequate supply for milling received high priority.
(Above) Nisshins flour mill in Higashinada, Japan was not affected by the
earthquake and Tsunami that hit the country in March. Photos courtesy
of Nisshin.
80

by Josh Sosland

Food sector, including milling,


damaged little by quake, tsunami
A number of the nations largest flour mills are located adjoining port grain elevators equipped to unload ocean-going
vessels that deliver wheat. Except for the port elevators in
the northeast coastal area that were directly impacted by the
earthquake and tsunami, delivery of wheat to mills has proceeded without interruption.
While flour and food products are mainly delivered by truck,
and thus are not affected by the erratic train service, shortages
of gasoline caused delays and difficulties. This was a problem
greatly accentuated by the surge in demand for grain-based
foods like bread and instant noodles that reflected the surge
in demand by consumers anxious to establish home supplies.
This rapid expansion in business came unexpectedly and has
eased only a bit in response to governmental reassurances.
In an exchange with the headquarters of the Nisshin Seifun
Group, which is Japans largest flour milling company with
10 flour mills, Milling & Baking News, sister publication of
World Grain, learned that none of the companys employees
were lost or injured in the massive disaster. Crediting the companys Business Continuity Plan, Nisshin said it organized a
April 2011 / World Grain / www.World-Grain.com

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FEATURE: JAPAN COPING WITH DISASTER

Nisshin Seifun Group headquarters in Tokyo, Japan. Nisshin officials said only
one of its 10 flour mills, the facility located in Hakodate, Hokkaido, stopped
its operations due to floods by the tsunami which hit Japan on March 11.

task force charged with emergency disaster control right after


the earthquake struck.
With regard to our production facilities, our flour mill in
Hakodate, Hokkaido (northwest of Sendai), stopped its operations due to floods by the tsunami, and we are putting our
repair efforts to resuming its operation as early as possible,
Nisshin said.
The company indicated that some other factories were
slightly damaged and stopped their operations temporarily,
but they have recovered already.
The Nisshin mills where production temporarily was halted by the earthquake were Tsurumi, Chiba and Tatebayshi.
All resumed full-scale operations in a short period of time.
Overall, Nisshin mills have daily capacity to produce about
130,000 cwts of flour.
A Showa Sangyo flour mill in the region hardest hit by the
disaster was not operating. Several area port elevators also
were closed, but this was not seen as a major source of imported wheat.
Nisshin said that all of its plants have continued shipments
without interruption. At the same time, it acknowledged difficulties in supplying product to meet the unexpected demands
not only in the area damaged by the earthquake and tsunami,

For more information, see Page 118.

82

April 2011 / World Grain / www.World-Grain.com

FEATURE: JAPAN COPING WITH DISASTER

but also in the Tokyo metropolitan area.


The company has a sales office in Sendai, described as the social and economic
center of northern Japan and a city hard
hit by the earthquake and subsequent
flooding. A Nisshin sales office was damaged and the companys main distribution center in Sendai was damaged.
We are taking necessary steps for
restoration and we are trying our best
to supply products to the market, the
company said.
In view of the widespread media attention focused on the nuclear plant
problems, the Food and Agriculture
Organization of the United Nations issued a report saying that there is no
evidence of food safety risks because of
imports from Japan.
The FAO added that food safety
concerns are restricted to food from the
affected zone around the Fukushima
Daiichi nuclear power plant. It added,
Given the reported safety measures, it
would be unlikely that food production
or harvesting is taking place in the evacuated area.
On March 28 it was learned that farmers in Fukushima prefecture, Japans
fourth-biggest rice producer, may not
plant the grain this year after tainted soil
was discovered near a crippled nuclear
plant leaking radiation. Rice production
in Fukushima and neighboring Ibaraki
and Miyagi prefectures amounted to
1.22 million tonnes last year, representing 15% of Japans total output.
The main growing regions are in
the northern island of Hokkaido, away
from the affected area on the main island of Honshu, followed by Niigata
prefecture in the northwest and Akita
prefecture, which shares a border with
Fukushima.

Its too early to tell how this will


unfold, said Thomas Hammond,
president of Columbia Grain Co.,
Portland, Oregon, U.S. Columbia
Grain is a subsidiary of Tokyo-based
Marubeni Corp.
Hammond said the largest dislocations were around flour, feed and fuel
distribution.

JAPAN GRAIN INDUSTRY


ASSESSING IMPACT
While imports of grain into Japan
appear to have been curtailed by infrastructure disruptions in the wake of
the natural and nuclear power disasters
there, the full impact on the countrys
grain industry is still difficult to assess.

In some cases, poultry and hog operations were desperately awaiting


feed shipments.
Japan is a major outlet for grain
shipped by Columbia, and Hammond
said the company ships to ports throughout the country.
The port where major damage was sustained in the northeast is a relatively minor

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of Flour
A Compendium of Flour Improvement

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Future of Flour contains information on topics ranging from the
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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.

Contents

Questions and Flour Problems


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

The Role of Gluten Elasticity


in the Baking Quality of Wheat
Rye Flour
Composite Flours
Flour Fort cation
Flour Treatment
Premixes and Complete Mixes
Wheat Flour Products in North America
Chinese Steamed Bread
Production of Baked Goods from
Wheat and Rye Flours - Methods and
Analysis of Faults
Noodles and Pasta
Future Trends
Conversion Tables and Abbreviations
Keyword Index

Order on the Web at


For more information, see Page 118.

www.World-Grain.com / World Grain / April 2011


FoF_1-2isl_i.indd 1

83
1/23/2009 3:13:02 PM

FEATURE: JAPAN COPING WITH DISASTER

port, but its still important, he said. The


largest ports are Tokyo and south.
Imports of wheat into Japan are handled through government purchases
based on quotas for individual companies. Hammond said it was unlikely the
nations consumption patterns would
change because of the earthquake.
If anything, it could cause the Japanese government to be more conservative in maintaining inventories of food
and feed grains, he said. They take
food security very seriously.
He said Marubeni employees have
been accounted for and are safe.
Because public transportation was
down after the earthquake, many employees slept at Marubeni headquarters
in a 20-story building in Tokyo after the
earthquake.
YAMAZAKI IN MAJOR HUMANITARIAN
RELIEF EFFORT IN WAKE OF DISASTER
Even as the company contends with

numerous obstacles in its efforts to operate, Yamazaki Baking Co. is diverting production of nearly half its baking
plants to help with the massive humanitarian relief under way in Japan.
Working closely with the Japanese
government, Yamazaki began producing about 500,000 baked products daily (bread and sweet goods) for shipment principally to emergency shelters in areas most severely affected by
the earthquake.
The Japanese government wants
us producing as much as we can as
quickly as we can, Conner said. He
said Yamazaki gradually has increased
production through the week to more
than 500,000 units per day for the relief effort.
Yamazaki has diverted production
of about 14 plants in the eastern half
of Japan to the humanitarian efforts,
at the request of the Japanese government. The company bakes a range of

products in Japan, including bread,


sweet buns, confectionery products,
side dishes and desserts.
Weve scaled down production to
a couple hundred s.k.u.s (stock-keeping units) we can do quickly, he said.
Were focusing on items with little
proofing time to aid the humanitarian
efforts and get product to market.
The simpler product line also helps
deal with the rolling power outages, he
said. Yamazakis 17 remaining plants
in western Japan are dedicating production to their traditional markets in
addition to supplying outlets normally
served by the companys eastern baking plants.
Josh Sosland is editor of Milling & Baking News,
World Grains sister publication. He may be
reached at jsosland@sosland.com.
We want to hear from you Send comments and
inquiries to worldgrain@sosland.com. For reprints of
WG articles, e-mail reprints@sosland.com.

Japan feed industry working hard to recover


The Japanese grain industry has been making significant
strides and should regain its normal feed mill production capacity
within the next few months, the U.S. Grains Council reported on
March 24.
Assuming significant escalation of the nuclear power plant
issues will not arise and in spite of the horrendous losses suffered
in Japan, the council believes the consumer demand in Japan
will remain strong and will drive continued imports of U.S. coarse
grains, said Tommy Hamamoto, USGC director in Japan. In the
short-term, logistical issues will continue to be a problem, but
the Japanese feed industry is working hard to recover from the
damage. By April or May, the council is hopeful Japan will recover
and return to a somewhat normalcy.
Four of Japans major importing facilities and attached feed
mills were severely damaged by the earthquake and subsequent
tsunami that struck Japan on March 11. These four facilities account for approximately 3.66 million tonnes of compound feed
production per year around 15% of Japans total annual compound feed production of 25 million tonnes. Another mill, which
accounts for an additional 15%, suffered some damage but compound feed production has already partially resumed.
Japan is prepared to cover the feed loss by facilities coming
back online and increased production in unaffected mills. These
(unaffected) mills are sending feed supplies in small vessels to
affected areas, Hamamoto said. There are currently bottlenecks: the capacity of unaffected ports to unload redirected
84

shipments and storage limitations; impeded passage of ships


through channels caused by debris in shipping lanes; increased
transportation costs, fuel supplies and shortage of trucks and
ships; and power needed for production and processing. The
council hopes those serious bottlenecks will be short-term setbacks in the recovery efforts.
The council has heard reports of limited loss of animal herds
or flocks.
Since the majority of livestock and poultry farms are located
near Japans mountain side (west side of Japan), minimal animal
loss is expected from the tsunami. However, logistics of fuels, feed
and products continue to be a problem for those farms, said Hiroko
Sakashita, USGC associate director in Japan, adding the council anticipates knowing the total impact in a few weeks. In addition, some
animal production was affected as facilities had to be evacuated due
to elevated radiation levels. This market may further be affected by
negative perceptions and false information on their products.
Exposure to radiation will remain a longer term concern. Japans Ministry of Agriculture Forestry and Fisheries released a
notice alerting livestock farmers to be cautious and not to feed
radioactive-material-contaminated hay, roughage, silage and
water to livestock. It recommends that farmers keep their animals indoors if possible. According to council sources, feed millers in Hokkaido, Chukyo, Kansai and Kyushu have been working
around the clock to ensure that sufficient supply of animal feed is
available in the damaged area.
April 2011 / World Grain / www.World-Grain.com

For more information, see Page 118.

BIOFUELS QUARTERLY

Biofuels

market outlook
S

purred by government policies and market mandates,


global biofuels demand could grow by 133% by 2020,
causing supply to fall short by more than 32 billion liters.
Ethanol will dominate with a 73% share of total biofuels
production, said Tammy Klein, assistant vice-president, Hart
Energy Consulting and a study leader for Global Biofuels
Outlook, 2010-2020: Projecting Market Demand by Country,
Region and Globally. Biodiesel will account for a smaller
share with little new production expected. Rather, demand
will be met by restarting production at existing facilities that
are currently idled.
The ethanol pool is going to grow pretty substantially, and
to a lesser extent for biodiesel, Klein said. Growth for both
is driven by policies that are being set around the world. There
are 30 or so countries that are looking to mandate the use of
biofuels. Some have volumetric requirements and other countries are moving toward a target greenhouse gas (GHG) emissions reduction.
Total ethanol production is estimated at 162 billion liters by
2020, with demand at 181 billion liters, leading to a 19-billionliter shortfall. Biodiesel production is estimated at 50 billion
liters with demand at 63 liters for a 13-billion-liter shortfall.
The deficit, Klein said, appears as soon as 2015.
Countries adopting biofuels policies are doing so for two
main reasons: reducing GHG as in the case of Canada, the
E.U. and Japan; or providing additional revenue and income to farmers, such as in the U.S. and particularly developing nations.
The countries that are setting these programs are going
to be the bulk that are going to do it, Klein said. Programs that have been successful are those that have a domestic agriculture component or a strong GHG emission
reduction incentive. There are a lot of countries for which
neither apply.
ETHANOL GROWTH AREAS
The strongest growth in ethanol production will continue in
the western hemisphere, Klein said, with the U.S. and Brazil
leading the way. The two nations will represent 80% of the pro86

by Susan Reidy

Production expected to grow


significantly in next 10 years,
outstripping supply by 32 billion liters
duction and consumption of ethanol by 2020.
Utilization rates in the U.S. will stay at or above 90% through
2020, with total demand reaching 84 billion liters in 2020 and
supply hitting 79 billion liters. Blends of 15% (E15) ethanol
could represent 30% market penetration by 2015, Klein said,
with E10 reaching 100% penetration.
The total ethanol supply in Latin America is expected to
reach 65.35 billion liters by 2020, while demand will reach
50 billion liters. Growth potential is strong since the region
has significant land available for expansion of feedstock production. Brazil will continue to lead the region in supply and
demand, Klein said.
Internal demand is growing in Brazil, and the demand for
its ethanol globally will grow, she said. Its the only advanced biofuel out there that can deliver the GHG emission
reductions. The question will be: Can Brazil keep up with the
pace and add capacity?
One surprise growth area for ethanol, Klein said, is the E.U.,
which has traditionally been more of a diesel/biodiesel market. Countries such as Germany, which has the largest biodiesel market in the world, plans on using sugarcane ethanol.
Two directives the Fuel Quality Directive and the Renewable Energy Directive (RED) are driving the biofuels
market in the E.U. The RED includes a renewable energy in
transport mandate for 2020, sustainability criteria and a GHG
reduction target for fossil fuels.
Ethanol demand is projected to grow faster than biodiesel
and reach 43% of total demand volumes in 2020, Klein said.
Utilization rates are currently around 50% of capacity, but will
increase to 69% in the next nine years. Total E.U. demand is
April 2011 / World Grain / www.World-Grain.com

For more information, see Page 118.

BIOFUELS QUARTERLY: BIOFUELS MARKET OUTLOOK

Ethanol growth by region, 2010-2020


Global demand to grow assuming no policy rollbacks
(in million liters)

90,000
80,000
70,000

Asia Pacific
E.U. 27

Latin America
North America

60,000
50,000
40,000
30,000
20,000
10,000
0
Supply

Demand

2010

Supply

Demand

Supply

2015

Demand

2020

Biodiesel growth by region, 2010-2020


Massive overcapacity/oversupply remains
(in million liters)

30,000
25,000

Asia Pacific
E.U. 27

Latin America
North America

20,000
15,000
10,000
5,000
0
Supply

Demand

2010

Supply

Demand

2015

Supply

Demand

2020

Source: Hart Energys Global Biofuels Center, September 2010; data taken from GBCs Global
Biofuels Supply & Demand Outlook 2010-2020

estimated at 13.3 billion liters in 2020 with a supply of 7 billion liters.


Thats not even close to North America at 80 billion liters
or Latin America at 60 billion liters, but considering right now
the E.U. market is not even 2 or 3 billion liters, it is substantial
for a region that is a big biodiesel user, Klein said.
Developing nations overall are expected to see substantial supply and demand growth by 2015. In 2009, developing nations
accounted for 40% of ethanol demand and 43% of supply. That
could increase to 48.5% demand and 57.7% supply by 2015.
Biodiesel is expected to see even more of an increase with
17% of the demand and 49.8% of the supply in 2009, growing
to 42.6% demand and 59.2% supply by 2015.
In Asia-Pacific, 90% of the demand in this region last year
came from developing countries; thats expected to drop to
88

78% by 2015. The supply is currently constrained in the region, but could triple in the next four years.
Total ethanol demand was estimated to represent 1.8% of
the total gasoline demand in 2010 and is expected to grow to
5.5% in 2015 and 8.2% in 2020.
Klein said Thailand has excess sugar and is using it for ethanol production, and Indonesia is also looking at some kind of
ethanol program.
While several countries in Africa are looking at biofuels programs, the continent will not really be a significant player in the
next several years. About 24 countries have started projects, with
feedstocks such as sugarcane, jatropha, cassava and palm oil.
Africa is not in the mix right now. The dynamics are kind
of dicey, Klein said. Theyre dealing with fundamental issues like having a stable regulatory environment, enforceable
laws and property rights.
BIODIESEL UTILIZATION
Overcapacity is a major issue for the biodiesel industry
across the globe, particularly in the U.S., the E.U., Asia and to
a lesser extent Latin America, Klein said. Utilization of production capacity is about 40% globally.
Its been really dreadful for the industry. We expect that to
improve as countries get programs going and the tax credit is
reinstated in the U.S., Klein said. Were seeing things moving forward this year and into the future.
It is unlikely new facilities will be built, but rather there will
be utilization of the existing capacity, she said.
Feedstock is a real problem globally, Klein said. The
prices are volatile for soy, palm and rapeseed.
The E.U. will remain the largest consumer of biodiesel with
a 44% share, with Asia-Pacific a close second at 39% by 2015.
In Latin America, countries such as Brazil and Colombia will
increase blending limits to absorb supply internally.
Currently, the E.U. is blending biodiesel at levels ranging
from 5% to 7%. Capacity utilization is about 57% right now,
but is expected to increase to 66% by 2020. Total demand in
the region is estimated at 27.1 billion liters, with a supply of
17.6 billion liters.
In Asia-Pacific, total biodiesel demand was estimated at
1.6% of the total automotive diesel fuel demand last year, and
is expected to grow to 4.7% in 2020. Supply is expected to
meet demand until 2020 due to lower blending requirements
and overcapacity.
Excess supply will be absorbed with higher blend levels or usage in off-road vehicles and sectors, or export, Klein said.
Latin Americas biodiesel supply is expected to reach 15.34
billion liters by 2020, with demand growing to 12.56 billion
gallons. Individual nations such as Colombia and Argentina
will increase their biodiesel blend levels as supplies allow,
eventually reaching B20.
We want to hear from you Send comments and inquiries to worldgrain@
sosland.com. For reprints of WG articles, e-mail reprints@sosland.com.

April 2011 / World Grain / www.World-Grain.com

For more information, see Page 118.

BIOFUELS QUARTERLY

Biofuels
News Review
Brazilian joint venture to create
ethanol logistics system
SO PAULO, BRAZIL Petrobras announced on March 1 the
creation of Logum Logstica S.A., which will be responsible for
deploying a multimodal logistics system for the transportation and
storage of ethanol.
The private limited company will include ordinary registered
shares with no face value distributed to the following shareholders:
Petrobras, 20%; Copersucar S.A., 20%; Cosan S.A. Indstria e Comrcio, 20%; Odebrecht Transport Participaes S.A., 20%; Camargo Correa leo e Gs S.A., 10%; Uniduto Logstica S.A., 10%. The
new companys capital will initially be set at R$100 million.
Logum Logstica S.A. will be responsible for constructing, developing and operating the system (logistics, loading, unloading, trans-

port and storage, and operation of ports and waterways terminals),


which will comprise multi-pipeline networks, waterways, highways
and coastal shipping.
With investments of R$6 billion, the Multimodal Ethanol Logistics System will extend over 1,300 kilometers and pass through 45
municipalities, linking the main ethanol-producing regions in the
states of So Paulo, Minas Gerais, Gois and Mato Grosso to the
Paulnia Refinery in So Paulo.
Part of this integrated system will consist of a long-distance pipeline
between Jata and Paulnia. Work on the first section between Ribeiro
Preto and Paulnia started last November. This section will be integrated
into the existing waterways transport system in the Tiet-Paran basin.

Global ethanol production to reach 88.7 billion liters


TORONTO, ONTARIO, CANADA The Global Renewable Fuels
Alliance (GRFA) in cooperation with F.O. Licht released on Feb.
14 its global annual ethanol production forecast. The GRFA forecasts ethanol production to hit 88.7 billion liters in 2011, replacing
the need for 1 million barrels of crude oil per day worldwide. This
highlights the growing impact that ethanol production is having on
reducing the worlds reliance on crude oil.
The GRFA predicts a growth of over 3% in global production in
2011, up from 85.8 billion liters in 2010. Global production has now
surpassed 550 million barrels of ethanol per year according to data
compiled by F.O. Licht.
The U.S. continues to be the largest ethanol producer in the
world with production levels expected to reach over 51 billion

liters (13.5 gallons) in 2011.


The African continent has tremendous potential for biofuels
production. However, production levels remain very low despite
recent efforts by some countries to kick-start biofuel programs.
The African continent is forecast to produce 170 million liters
of ethanol in 2011, despite sub-Saharan Africa having 1 billion
hectares of rain-fed, crop-producing land that could be producing
biomass for ethanol, according to the United Nations Food and
Agriculture Organization.
This year will be critical for Europe as member countries ramp
up their production and use of ethanol to meet the E.U.s Renewable
Energy Directive. Europe is expected to produce 5.4 billion liters of
ethanol this year, which is a 15% increase over 2010.

ITOCHU invests in U.S. biodiesel venture


TOKYO, JAPAN ITOCHU Corp. announced March 1 that it has
purchased shares in Benefuel, Inc., headquartered in Illinois, U.S.
ITOCHU now has a stake of more than 4% in Benefuel. ITOCHU
is looking to develop businesses for manufacturing biodiesel fuel efficiently and at low cost, using a new Benefuel catalyst, in Asia.
In the conventional technology for manufacturing biodiesel fuel, fat
and oil cannot be used as a material unless fatty acids are removed.
Low-quality fat and oil with high fatty acid content, such as residues
from food factories or oil plants, are therefore difficult to use.
90

The new catalyst of Benefuel, which is called bifunctional solid


catalyst, is a breakthrough catalyst that can convert fat and oil
and fatty acids to biodiesel fuel at the same time. The production
process is simplified, and biodiesel fuel can be manufactured at
low costs.
ITOCHU started demonstration experiments in a pilot plant
for using the bifunctional solid catalyst jointly with Daiki Axis
Co., Ltd., Matsuyama, Ehime, Japan, a leading manufacturer of
biodiesel.
April 2011 / World Grain / www.World-Grain.com

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For more information, see Page 118.

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BIOFUELS QUARTERLY: BIOFUELS NEWS REVIEW

U.S. ethanol production sets record in 2010


WASHINGTON, D.C., U.S. The U.S. ethanol industry produced
an average of 863,000 barrels of ethanol per day (b/d), amounting to
a record-breaking 13.23 billion gallons of production in 2010, according to data released on Feb. 28 by the U.S. Energy Information
Administration (EIA).
Production in 2009 was 10.75 billion gallons.
Imports for 2010 stood at slightly more than 9.7 million gallons,
down from 193 million gallons in 2009.
As the Renewable Fuels Association (RFA) previously noted, exports of U.S. ethanol reached all-time highs in 2010. According to
government data compiled by RFA, total ethanol exports ended the
year at 397 million gallons, marking a nearly four-fold increase over
2009. Exports are not eligible for the Volumetric Ethanol Excise Tax

Credit (VEETC), also called the blenders credit.


A record volume of distillers grains (DDGs), the livestock feed coproduct of ethanol production, was also exported in 2010. Nine million tonnes of this high-value livestock feed were exported in 2010.
The yearly data was compiled via the final monthly ethanol production report for 2010 released by EIA. According to that data, December 2010 was a bigger than expected month for ethanol production. The industry produced nearly 918,000 b/d, down slightly from
924,000 b/d in November 2010. December daily production on an
annualized basis would be 14 billion gallons.
Demand for ethanol, according to RFA calculations, rose to
918,000 b/d, up from 900,000 b/d in November 2010. RFA calculations for 2010 ethanol demand stand just shy of 860,000 b/d.

E10 concerns in Germany unfounded


BRUSSELS, BELGIUM Recently, Germany became the latest
E.U. country to introduce the E10 fuel ethanol blend at petrol stations across the country. However, the introduction has created confusion among motorists at the petrol pumps, due to concerns over the
compatibility of their vehicles with this new E10 fuel, said ePURE,
which represents E.U. ethanol producers, on March 8.
The launch of E10 in Germany is a positive move and is extremely welcomed, said Rob Vierhout, ePUREs secretary general. But
this uncertainty is not good for everyone. I understand that people
may be confused but the E10 product is perfectly safe and it has been
introduced in several major countries without any problems.

E10 is a fuel mixture containing 10% ethanol and 90% gasoline


and is a standardized product under E.U. law.
E10 has already been used in the U.S. for a number of years. In
fact, only recently the U.S. authorities increased U.S. fuel blend from
E10 to E15 due to the clear success of E10. In the E.U., France has
been successfully using E10 for two years and Finland also launched
E10 at the beginning of 2011 with no problems. Sweden has also
used E10 for several years.
About 93% of motorcars on the German market are compatible
with the E10 biofuel, with 99% of cars manufactured in Germany
being E10 compatible.

Canadian canola, soybean growers support biodiesel


CALGARY, ALBERTA, CANADA A new survey conducted by
AgCall Inc. of active Canadian canola and soybean growers in Alberta, Saskatchewan, Manitoba and Ontario shows overwhelming
support for the production and promotion of biodiesel in Canada,
AgCall said on Feb. 28.
The survey of over 300 canola and soybean growers was conducted
from Feb.10-17 and respondents were selected randomly to maintain
statistical validity. AgCall TeleSpecialists allowed respondents to answer questions unaided but further defined questions when requested.
Survey results:
66% of respondents indicated that they are aware of the 2%

renewable fuel standard for biodiesel in Canada.


87% of respondents support using Canadian grown canola/soybeans in the production of biodiesel.
90% of respondents agree that increased demand for canola/
soybeans created by biodiesel production would benefit growers.
81% of respondents support a federal renewable strategy that
would promote the use of canola/soybeans in the production of
biodiesel.
The AgCall Survey was conducted on behalf of the Canadian
Canola Growers Association and the Canadian Renewable Fuels
Association.

Scoular purchases ethanol plant, shuttle facility


OMAHA, NEBRASKA, U.S. The Scoular Company announced on
Feb. 15 its acquisition of the assets of Gateway Plant LLC. Scoulars acquisition includes a 55-million-gallon-per-year ethanol plant and adjoining 1.8-million-bushel shuttle train facility in Pratt, Kansas, U.S. Terms
of the transaction were not announced.
Located on the Union Pacific Railroad, the newly acquired Pratt facility is capable of loading 100-car shuttle trains of grain, dried distillers
grains (DDG), and ethanol.
Scoular is pleased to have taken yet another step to serve grain producers and end-users in this area as well as to further expand our presence in the renewable fuels market, said Chuck Elsea, Scoulars chief
executive officer.
Elsea said Scoular anticipates that by April 1 the grain-handling portion of the facility will be ready to receive grain. Scoular is hopeful the
92

ethanol plant will be operational late third or early fourth quarter of


2011, following extensive plant renovation, according to Elsea.
It is economically feasible to run this plant, and thats what we want
to do, said Elsea. He added that Scoular presently is in discussions with
companies interested in operating the plant in partnership with Scoular.
In addition to owning the Pratt plant, Scoular is a minority investor
in other ethanol plants as well as a service provider of risk management, grain origination, logistics and transportation, and distillers
grains marketing.
The Pratt facility will be incorporated into Scoulars North American
grain marketing network, a portion of which includes strategic investment in the state of Kansas. The Pratt acquisition brings the number of
Scoulars Kansas facilities to eight, including shuttle train loading facilities at Coolidge, Downs, Salina, and Wellington.
April 2011 / World Grain / www.World-Grain.com

For more information, see Page 118.

FEATURE

Stoppingthestowaways
Y

ou probably dont worry about stowaways when you


travel, but have you thought about them jumping on
board as your grain travels through the supply chain?
Stored-product pests are insects which can infest your grain at
any time in the supply chain process. Once at your facility, the
abundance of grain product makes processing environments a
target for these little stowaways as well.
Stored-product pests include multiple flying and crawling
insects and can greatly impact grain production each year
by eating not only whole grain, but also flour, feed and other
milled products. Though small in size, these pests can damage
much more than they eat. An infestation that begins with one
product can quickly spread and damage product throughout
the facility, severely harming your inventory and leading to
problematic regulatory action.
Not only can stored-product pests affect your bottom line with
ruined commodities, they can also compromise food quality and
safety. To keep these pests from hitching a ride with your grain,
you can reduce chances of infestation by working with your pest
management professional to employ an Integrated Pest Management (IPM) program and send stored-product pests packing.
SET YOUR ITINERARY
Just as you would plan a trip in advance, IPM programs
help you plan ahead with proactive techniques that can prevent pest infestations before they happen. Most stored-product pest problems occur as pests arrive in product shipments.
However, inadequate sanitation practices in a facility can
cause them to breed and multiply, so consider the following
tips when making your itinerary:
Carefully inspect all incoming materials that enter the
facility, looking for signs of infestation, which can include
webbing, damaged ingredients or packaging, insect larvae
or insects themselves. Always check the packaging date
to ensure freshness. If you do see signs of stored-product
pests on incoming materials, refuse to accept the shipment

Pheromone traps can help evaluate pest activity and determine the timing
for treatment. Photo courtesy of Orkin.
94

by Greg Baumann

Use Integrated Pest Management


System to send stored-product
pests packing
and notify your supplier immediately.
Continue to monitor shipments once youve stored them
away by regularly inspecting the storage area and the product.
Label and rotate products on a first-in, first-out basis,
which can help prevent products from sitting undisturbed and
becoming more vulnerable to pest activity.
Store products at least 18 inches away from the wall and
six inches off the floor to help prevent products from deteriorating and serving as prime breeding spots for pests. This also
creates easier access for inspection and cleaning.
Regularly monitor storage conditions, eliminating sources of moisture and keeping storage areas cool and well-ventilated to reduce chances of the product becoming vulnerable to
pests. Most stored-product pests cannot thrive in temperatures
cooler than 65 degrees F, so if it will not damage your product,
keep your storage area at or below this temperature.
Use pest-monitoring devices like pheromone traps to
monitor for stored-product pests. Pheromone traps use a synthetic mimic of pheromones chemical secretions insects use
to communicate. These traps will collect stored-product pests,
and they can help evaluate pest activity and determine the timing for treatment. Your pest management professional can assist with acquiring traps and explaining how to use them.
Train your staff to look out for stored-product pests and
immediately report any pest sightings to your pest management
professional. Non-emergency sightings can be entered into the
Pest Sighting Log which the pest management technician will
review on the next visit. In addition, teach your staff to alert you
to any conditions that could cause an infestation, such as product residues in machinery, open packaging or spilled product.
Then work to resolve these conditions immediately.
IDENTIFY THE ROADBLOCKS
If you do find yourself with a stored-product pest problem,
work with a licensed pest management professional to identify the pest and determine the appropriate treatment. Storedproduct pests are classified into four groups based on their eatApril 2011 / World Grain / www.World-Grain.com

For more information, see Page 118.

FEATURE: STOPPING THE STOWAWAYS

ing habits and biology: internal infesting


insects, external infesting insects, external scavengers and external secondary
insects.
Internal infesting insects lay their
eggs inside grain kernels, where the larvae can then feed before emerging as
adults. This group is normally found in
grains such as wheat, corn and rice, and
includes the granary or rice weevil and
Angoumois grain moth. External infesting insects, such as the Indianmeal moth
and cigarette beetle, eat from the outside
of the grain into the kernel and often eat
milled products such as flour and cornmeal. Note that for many types of insects, the adults do not cause significant
damage; rather the larva is the stage that
causes the most damage.
External scavengers feed on grain damaged by other insects and include the confused flour beetle and sawtoothed grain
beetle. External secondary insects, like the

spider beetle and fungus beetle, eat damp


and moldy products from the outside.
FIND AN ALTERNATE ROUTE
After identifying which stored-product
pest youre dealing with, look for solutions right away. Stored-product pests reproduce quickly, so its critical to address
infestations before they have time to multiply and contaminate additional product.
Work with your pest management professional to implement the following steps:
Isolate and, where possible, dispose of all contaminated product immediately and quarantine the area for
detailed inspection.
Inspect all product near the infestation for signs of damage and dispose of
any product that could also be affected.
Look for any maintenance issues contributing to the infestation such as cracks
in the wall or floor where pests can hide,
broken drains providing access to water,

or hard-to-see places around equipment.


Identify the cause of the infestation, take steps to remedy the problem,
and select the appropriate treatment.
Working closely with your pest management professional and maintaining an
ongoing IPM program can significantly
deter stored-product pests from hitching a ride with your grain. By preparing
for challenges ahead of time, identifying
them and moving quickly to find pest
management solutions, youll be sure to
send stored-product pests packing.
Greg Baumann is director of technical
services for Orkin. A degreed chemist and
licensed pest management professional, his
global pest management experience spans
30 years. For more information, contact
him at: gbaumann@rollins.com or visit
OrkinCommercial.com.
We want to hear from you Send comments and
inquiries to worldgrain@sosland.com. For reprints of
WG articles, e-mail reprints@sosland.com.

For more information, see Page 118.

96

April 2011 / World Grain / www.World-Grain.com

For more information, see Page 118.

Victam

International 2011
T

he 2011 Victam International exhibition will be held


May 3-5 in Cologne, Germany. New trade shows and
conferences FIAAP and GRAPAS have been added to the event, which is held every four years, and the venue
has changed with this years show being held at the Cologne
Exhibition Centre in Germanys fourth largest city.
The Victam, FIAAP and GRAPAS trade shows will target
specific industries. The Victam expo will feature the latest
technology and equipment that is utilized in the manufacture
and production of animal feeds, dry petfood and aquafeed.
The FIAAP expo will showcase the latest technology and
equipment devoted to the feed ingredients and additives segment of the industry. The GRAPAS expo will feature the latest equipment and additives used in flour milling, the pro-

cessing, handling, storage and distribution of grain and rice,


as well as the specialist technology used for the production
of pasta and noodles.
Approximately 300 companies from 28 countries will exhibit their products and services at the three trade shows,
which will be co-located in the same expo hall.
The FIAAP Conference will be held May 4 and the GRAPAS
Conference on May 5. Other conferences to be held during the
three-day event are: Aquafeed Horizons and IFF Feed Processing on May 3; Petfood Forum Europe and Feed Safety
Assurance in a Globalizing Industry on May 4; and Pellets for
Bioenergy on May 5.
We want to hear from you Send comments and inquiries to worldgrain@
sosland.com. For reprints of WG articles, e-mail reprints@sosland.com.

VICTAM PRODUCTSHOWCASE

Buhlers new
hammer mill Granulex
The hammer mill Granulex is the new dynamic
grinding machine from Buhler. Designed for ultimate power, Buhler said Granulex delivers high
capacity grinding up to 75 tph. The company
said its Swiss-made reliability and supreme ease
of maintenance minimize downtime, so you can
make maximum use of this productivity. Buhler
says it is an investment in quality that is sure
to show a rapid return and deliver a hammer
blow to your operating costs. Stand #D-E039,
D-E041

98

Storage silos

Sweeping augers

From individual silos to complete storage and


handling facilities, FRAME one of Europes
largest manufacturers of storage silos provides total solutions for your storage requirements, with flat-bottom silos up to 18,000 cubic meters and hopper-bottom silos with up to
4,300 cubic meters capacity and a full range of
accessories to suit. For more information, visit:
www.framespa.com. Stand #G035

Since 1855, DENIS has created and developed a


large equipment range for mechanical handling
and cleaning of grain, powders and miscellaneous granulates suitable for agricultural production, milling and animal feed production
at flow rates up to 300 tph.
DENIS sweeping augers are high-performing and
reliable unloading devices that discharge totally
the residual cone, with zero entry in the bin.
Intermediate outlets and set parking position of
the screw are not required. Stand #F053

April 2011 / World Grain / www.World-Grain.com

For more information, see Page 118.

VICTAM PRODUCTSHOWCASE

Drum pre-cleaners
Lambton Conveyor Limiteds single-deck
and double deck drum pre-cleaners are mainly
used for preliminary clean-up of coarse impurities in grain such as rice and wheat straw, hemp
rope, paper sheet, earth block, corn leaf, corn
stick and other impurities. The structure of inner
sieving and outer brush cleaning is adopted. The
impurities are discharged at outlet through a
screw guide inside of the drum and are cleaned
automatically and reliably. The drum pre-cleaners
capacities range from 1 tph to 200 tph. For more
information on this or other Lambton products,
visit www.lambtonconveyor.com. Stand #E052

Norway countersunk head


elevator bolts
Tapco Inc. has added IFI Grade 5 No. 1 Norway
Flat Countersunk Head elevator bolts to its existing product line. The Grade 5 elevator bolts have
greater proof load, minimum yield strength and
minimum tensile strength than traditional Grade
1 or Grade 2 bolts allowing them to better
withstand the additional forces exerted on elevator belt lap splices or other heavy-duty applications. Bolts are supplied with a distinguishing
yellow zinc-plated (CR3) coating and SAE grade
marking, in 14 sizes ranging from -20 x -inch
to 3/8-16 x 2 inches. Stand #G032

PTM elevators and conveyors


The Italian company PTM offers a wide range of
quality products, including chain conveyors with
capacities up to 800 tph, bucket elevators, belt
conveyors up to 1,200 tph, automatic samplers,
slides, valves and filters. PTM said its customers
can always count on the assistance, offered by its
engineering staff, in the layout design and equipment selection. PTM said for experience and the
most up-to-date automation technology in the
manufacturing, it can offer the optimum solutions
for industrial and agricultural applications. Stand
#GO38

Soliba high level detector

CLEANMAX

DA 7300 Online NIR analyzer

ATMIs Soliba tilt level switch has been designed for high point level detection of bulk
solids in multiple storage tanks and all types
of belt conveyors. Typical applications include
but are not limited to grains, cereals, powders,
animal feed, birdfeed, petfood, pellets, sawdust, stones and minerals. Standard and ATEX
certified versions are available. Models suitable
for EX Gas Zones 0, 1 & 2 and Dust Zones 20,
21 & 22. The Soliba level detector can also be
installed as high level alarm and serves as an
ideal complement to rotating paddles, vibrating
forks, capacitive probes, ultrasonic sensors, etc.

UGURs Cleanmax separator features air suction from the backside and an advantage from
height. It also has cleans with high air aspiration
once at the product inlet and also at the product
outlet. It can be cleaned in short time without
dismantling sifter frames thanks to the covers
opening to the sides. It is has a high efficiency/
high capacity air canal and a multi-leveled
screening system. Stand #A050

The DA 7300 Online NIR analyzer from Perten


Instruments measures moisture, protein, fat,
ash and more continuously in your process. The
measurement results are communicated directly
to your control system for automated process
control. Over 100 instruments are installed
worldwide in a range of applications including
flour milling, feed production, oilseed crushing,
biofuels and more. Powders, pellets, grains, etc
are accurately measured, allowing you to optimize your process. Stand #C043

100

April 2011 / World Grain / www.World-Grain.com

COMPLETE
GRAIN HANDLING
SOLUTIONS

GET THE COMPLETE PICTURE


Design | Manufacture | Installation
T: +44 (0)1480 216618
E: info@bricebaker.co.uk
W: www.bricebaker.co.uk
For more information, see Page 118.

VICTAM PRODUCTSHOWCASE

Digital data registration with


combined radio transmission

Ag Growth International

The Crown Expander

Ag Growth International (AGI) is a leading


manufacturer of grain handling, storage and
conditioning equipment supplying farmers, inland
grain terminals, port and processing facilities with
a full range of products and services. To promote
global expansion, AGI has been growing its
international team to assist with system design,
product integration, logistics, marketing/sales,
product support and construction supervision.
AGIs international team is fluent in more than 13
languages. For more information on AGI and its
divisions, please visit www.aggrowth.com.
Stand #F069

Amandus Kahls engineers have equipped their


Crown Expander outlet with an annular die similar to that of a pelleting pressa die without
pan grinder rollers to be more precise. Another
advantage lies in the fact that the finer particles
are agglomerated during expansion and thus are
transformed into coarse structures. A rotating
cutter was designed, meant to cut the product
strands, leaving the die to uniform pellet lengths.
Thus the pelleting process is easy to control by
simply varying the cone position. Stand #D011

Brock Grain Systems

Infraneo junior

Multiport M600

Brock Grain Systems, marketed worldwide


by Chore-Time Brock International, is a leading
manufacturer and marketer of grain handling,
conditioning, drying and storage systems.
Brock offers grain storage silos with single
silo maximum capacities up to 34,000 tonnes,
single-pass silo sweeps providing true zerobin-entry sweep operation and unloading up
to 500 tph, plus a variety of centrifugal fans up
to 37 kW for grain aeration. For more information, contact Chore-Time Brock International at
1.574.658.9323; Fax: 1.574.658.9296; E-mail:
world@ctbworld.com Internet: www.ctbworld.
com VICTAM Hall 6 - Stand #E052

The new NIR Powders and whole grain infrared


analyzer from Chopin Technologies has a new
generation monochromatic in transmittance,
ensuring a great repeatability and stability over
time. It is a versatile device for whole grain and
flours, bran, midlings and semolina in few seconds. For more information or a quote, contact
Chopin by e-mail (export@chopin.fr.), mailing
address (CHOPIN Technologies, 20 avenue Marcellin Berthelot, 92390 Villeneuve-la-Garenne,
FRANCE), or website (www.chopin.fr.).
Stand #F055

Neueros ship unloader type Multiport M600


is the ideal capacity for Handymax to Cape
size ships. It features high capacity through all
unloading phases, inclusive clean-up operation.
The M600s new BDD blower direct drive
development saves energy, needs less parts
for maintenance and full control. Solid German
equipment quality and engineering grant for
availability at heavy duty work. Neuero said the
ship unloaders price-to-capacity ratio gives it a
strong return of investment. Stand #C033

102

In several years of processing, Agromatic has


developed a completely new system for the
registration of temperatures in silos and grain
storages. This new purely digital working system
features reliability, accuracy, speed of the data
collection and the easy transmission that are
real technical achievements. The combination
of the two-wire technology with radio transmission substantially reduces the mounting effort.
New silo buildings are equipped with two wire
technology with serial data collection and digital
transfer. Single stand-alone steel silos are connected to the system by means of radio transmission. Stand #D001

April 2011 / World Grain / www.World-Grain.com

We carry this concept of safety to our silos.

For more information, see Page 118.

VICTAM PRODUCTSHOWCASE

Bulk material handling

RMX roller mill

Feed pellet mill

STIF specializes in the manufacturer of components for the bulk material handling industry. The
French company has an international presence
across Europe, Asia (Singapore and China) and
soon in Central America. The companys main
products are pressed steel and plastic elevator
buckets, rubber elevator belts, compression coupling (for pneumatic handling), slide-valve and
diverter valve (grain handling), safety valve and
manholes. Its new product range includes the
Explosion Vent Panel VIGILEX. At Victam 2011,
the company will be exhibiting its new plastic
Atex approved elevator buckets, FDA & Atex
ISO340 approved elevator belts. Stand #B029

Ocrims RMX roller mill was specifically designed to satisfy the third millenniums market.
Specific attention to detail and sanitation are the
key features of the machine as stainless steel is
used throughout the product contact areas. The
design and the construction of each part of the
frame ensure the complete absence of mold and
bacteria. All the operations of the RMX are controlled by an electronic unit, which drives rolls
gaps, feeding, current absorption by means of
touch screen panel. Stand #C058

ZCMEs livestock and poultry feed pellet mill


features a compact structure, fine appearance,
convenient installation, operation and maintenance and reliable performance. This machine
adopts a system of conversion speed-adjustable
feeding and axial steam spraying and a cleaning method of LL conditioner big opening. It
also features systems of external discharging,
strong magnetic safety and overload protection. Additionally, it has clamp-type die, fully
imported bearings in gearbox and power
transmission through S-shaped spring coupling.
Stand #A043

NIR analysis of grains

The end of temper time

Storage silos

Pfeuffers Granolyser is a diode array-based NIR


analyser. It measures the NIR spectrum from 950
to 1,550 nm with high resolution and therefore
provides the best basis for precise and expressive results of parameters like moisture, protein,
oil, sedi and gluten. Fill in the sample, select
grain type and push start. Granolyser feeds the
sample, takes 1,500 single scans, displays and
prints results in less than 40 seconds. The Granolyser has an integrated network adapter and an
USB interface for extensions like data transfer,
bar code scanner, keyboard or memory sticks.
Stand #C078

vibronets patented vibration dampening


technology has been redesigned for maximum
profit and exceptional performance. The reduced built-in height fits even in the smallest
spaces and available capacities range from 1 to
40 tph. Optimized vibration energy utilization
allows adding up to 12% dampening liquid
in one single pass. The vertical Clean-Design
dampener drastically reduces temper time,
making use of only 0.2 kW/tph. The product
range includes exact automatic moisture controllers, water dosage units, precise inline flow
metering and specific weight control systems
as well as intensive powder hydration mixers.
Stand #G024

Symaga is a Spanish-based company specialized in the design, manufacture and supply of


storage silos for the agriculture, agri-industry,
biofuels and biomass industries. In 2011, Symaga, S.A. invested around 12 million in modern
and efficient machinery. It has acquired a
150-tonne-per-day profile machine for the 14-76
silo wave. It has automated the new factory with
the incorporation of 15 new robots, making, on
a whole, 25 robots, allowing a fully-automated
production. Moreover, it has also acquired a new
6 mm-thickness punching machine for 6-meterwide sheets with long-cross and cross shears.
Stand #G010

104

April 2011 / World Grain / www.World-Grain.com

For more information, see Page 118.

VICTAM PRODUCTSHOWCASE

Muyang Group

Chilled rolls

With its headquarters in the historic city of


Yangzhou, Muyang Group has since its
founding in 1967 grown into a well-known
group corporation, whose activities cover
research & development, project design, feed
machinery manufacturing, installation and engineering, storage engineering, grain machinery
and engineering, biomass engineering, environmental protection system, conveying equipment, automatic control system as well as steel
structure. Stand #E021, #F021, #F020

Fundiciones Balaguer, S.A. strives to produce


chilled cast iron rolls to satisfy each millers
needs. In previous years, the company reached
its maximum production level of 10,500 chilled
rolls that were exported to more than 80 countries. Balaguer recently completed construction
of its new fluting and roll maintenance workshop, equipped with the latest in fluting technology. Stand #A025

Compact plansifter

Titan grain bin


The Chief Titan bin now combines Chiefs leading
stiffener design with its newest feature: a fully
galvanized, 30-degree structured roof for unmatched strength and design flexibility in all commercial Chief bins. Chief Agri/Industrial specializes
in the design and manufacture of complete grain
storage systems, hopper tanks, grain handling and
conditioning equipment, under Chief, Caldwell
brand names. Stand #F065

106

Rueters highly efficient and compact plansifter


is capable of generating outputs of 200-kg
per hour to 120 tph for a variety of powered
products of 30 microns to 12 millimeters diameter. Rueter said the self-balancing cross-yoke
plansifter design ensures minimum structural
stress to the installation site, and its modular
design allows it to be accommodated in tightly
constrained spaces. Its star-shaped sieve cleaners
have been adopted industry wide. Other leadingedge innovations include the light-weight aluminum sieve stack housing, the customizable sieve
stack and the unique drive. Stand #B051

Model G conveyor
Exceptional quality and lasting performance are
characteristics of Tramcos Model G heavy-duty
conveyor, which is designed to handle the most
severe applications for many years of troublefree service. Robot-welded, jig-fitted parts combined with totally bolted construction ensures a
precise fit and interchangeability of components.
Stand #F069

April 2011 / World Grain / www.World-Grain.com

SYNTHESISSY09
GOLFETTO SANGATI SpA

Via F.lli Bandiera 3


31055 Quinto di Treviso (TV) Italy
Ph: +39 0422 476700 Fax: +39 0422 476800
Web: www.golfettosangati.com - E-mail: info@golfettosangati.com
Visit us at 115th Annual Conference & Expo
San Antonio USA 2-5 May 2011
booths 232, 234, 236, 133, 135, 137

For more information, see Page 118.

VICTAM PRODUCTSHOWCASE

Agricultural elevator buckets

Ship unloading and loading

Maxi-Lift Inc. is the worlds premier manufacturer of plastic and metal elevator buckets for industrial and agricultural applications. Maxi-Lifts
elevator buckets are known around the world by
their names: CC-Max, Dura-Buket, Maxi-Tuff, Tiger-Tuff, HD-Max and DI-Max. Related conveying
products include elevator bolts, hardware, belt
splices, screw conveyor hanger bearings, drag
conveyor flights and UHMW sheeting products.
Maxi-Lift produces modern designs for modern
applications. Stand #D053

VIGAN Engineering offers highly reliable


mechanical and pneumatic ship or barge unloaders or loaders from 100 to 1,800 tph for bulk
handling of most materials such as grains, animal
feedstuffs, oilseeds, chemicals, fertilizers, and also
slightly compacted products. VIGAN said its equipment is suitable for all types of vessels and with
most economical running costs. Engineering services include turn-key projects for port equipment
and storage systems for agribulks and fertilizers.
For more than 1,100 references from all over the
world, visit www.vigan.com. Stand #B038

Milleral Extraction Scale


Imas, supplier of turn-key flour milling systems,
has introduced a newly designed extraction
scale with significant changes. It is made in a
round shape for more convenient use and also
features improved technical capabilities, such
as using three load cells to weigh more accurately than the older versions that have just
two. Its software offers easy and quick access
to entire production data. Stand #B067

Cooling unit

Grain storage, conveying

FrigorTec GmbH produces and distributes


cooling units and refrigeration plants for industrial and food applications. A prominent part of
the companys product range is the Granifrigor
cooling unit, which is designed specifically for
grain and rice preservation. It is used in numerous applications worldwide. For countries in
the tropic zone, FrigorTec offers the Granifrigor
Tropic series. Stand #C041

OBIAL manufactures high-strength galvanized


steel silos for grain storage. Sizes range from 5
to 15,000 tonnes of grain capacity. OBIAL has
developed a new heavy-duty chain conveyor and
elevator, which allows non-stop usage of grain
transporting equipment. OBIAL says it offers
quality equipment for reasonable prices. Moreover, OBIAL offers a 10-year limited warranty
terms. Stand #G020

108

April 2011 / World Grain / www.World-Grain.com

VICTAM PRODUCTSHOWCASE

Grain handling management

International search
and placement

TORNUM AB has many years of experience in


manufacturing and supplying complete grain
handling systems for the grain industry. Tornum
offers solutions for drying, storage and conditioning of grain. Its product line includes: grain
coolers, batch dryers, continuous flow dryers
with capacities up to 100 tph, storage bins and
the dual-function KanalSystem, which provides
both aeration and unloading in storage bins.
Stand #F073

JCB Consulting, Ltd. sources the highest caliber


candidates through its extensive contact networks
around the world. If you have a job vacancy or are
looking for a career change, submit job vacancy or
cv (resume) via the JCB website. JCB can source
operational and finance managers, head millers,
feed millers, project managers, pasta plant and
bakery managers, electrical and mechanical supervisors, maintenance managers and engineers,
cereal chemists and commodity traders. For more
information, visit www.jcb-consulting.com.

Grain dryers
The Mathews Company, grain dryer specialists
for nearly 60 years, continues the company tradition of providing state-of-the-art dryers that can
deliver optimum performance in any grain operation. The M-C Model 3180 NG modular dryer,
pictured above, is located in Kherson oblast ,
Ukraine. The natural gas dryer can dry soybeans
at a rate of 60 tph. Stand #G046

GRAIN PUMP

Silvernox Sifter

Hutchinson is the manufacturer of the original


GRAIN PUMP loop system. For farm or commercial applications, Hutchison said the GRAIN
PUMP is the most economical solution for your
grain facility. Contact them to learn more about
the system or request a quotation. Hutchinson
is a division of Global Industries, Inc., a leading
manufacturer of grain storage, conditioning and
handling products, and is based in Grand Island,
Nebraska, U.S. For more information, send e-mail
to internationalsales@globalindinc.com.
Stand #G055

In its Slivernox Sifter, Selis Makina uses framesifter construction in which there is no metal
structure on the passage walls, therefore heat
transfer is abrogated and condensation is prevented. Stainless steel execution on the passage
walls provides hygiene at the maximum level. By
means of another developed method, with the
usage of special sealing in the sifter, dead areas
are minimized and maximum imperviousness
and sanitation are secured. The machine is being
manufactured meticulously with high production
quality of Selis.

www.World-Grain.com / World Grain / April 2011

109

VICTAM PRODUCTSHOWCASE

Semolina-HP unit/
Synthesis roller mill SY09

Silo manufacturer
Brice-Baker, established in 1970, is a leading
U.K. manufacturer of galvanized steel silos. The
company designs, manufactures, supplies and
installs grain storage equipment providing clients
with complete solutions throughout Europe
and beyond. Brice-Baker says its experienced
team of structural and design engineers deliver
innovative designs and cost-effective solutions
using the latest 3D design software. Manufacturing is carried out using advanced production
technology in our own factory and installation
and commissioning is completed by skilled and
experienced professionals. Stand #E068

GOLFETTO SANGATI S.p.A. will be exhibiting


the Semolina-HP, a next generation semolina
purification machine dedicated to purifying durum
wheat flour and wheat semolina, and the next
generation Synthesis SY09 roller mill. The SEMOLINA-HPs Fly-Back feature evenly distributes
product in the machine. Classification of the product takes place in a traditional way: four sieves in
series with three total decks. The next generation
Synthesis includes an internal double wall with a
cavity for thermal (condensation) prevention and
acoustic insulation. The internal structure is made
of electrically welded stainless steel.
Stand #E072

Tradition all around seed

Kleen-Drag Conveyor
Intersystems said its self-cleaning Kleen-Drag
Conveyor offers the advantage of en-masse
capacity and improved cleanout over the typical
round-bottom or screw conveyor. The bottom and
sides can be lined with abrasive resistant steel
for longer wear life. If intermediate discharges
are required, the gates incorporate a truly flush
mount design, which eliminates pockets of material at the discharge openings. Visit www.intersystems.net for more information. Stand #C065

110

PETKUS Continuous Flow Dryers are based


on roof column design for drying processes of
various types of cereals: grain, maize, oil seed
and feed grain. The PETKUS Dryer is designed
in completely modular construction to ensure
a wide range of models and capacities (from
5 to 60 tph, based on wheat) by the different
assembly possibilities of the main components.
The working principle of the dryer type WU
(Wrmetauscher-Umluft) is based on indirect
heating and recirculation of the air. Aspiration
systems or filter systems are not necessary.
Stand #D063

Behlens latest silo


Behlen Mfg. Co. has added a new model
to its Big Bin Series. Behlen now offers a
M48 (157-foot diameter) silo with a storage
capacity of over 51,000 cubic meters (1.5 million bushels). Behlen said the Big Bin Series is
designed for the larger and heavier equipment
required to meet the demand of todays storage
facilities. The addition of the M48 comes after
the addition of the M40, which has been constructed in numerous locations. For more information, visit www.behlengrainsystems.com or
e-mail Behlen@behlenmfg.com. Stand #C065

April 2011 / World Grain / www.World-Grain.com

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Canary Wharf, London E14 5AE, England
Telephone: +44 (0)20 7513 1122 Fax: +44 (0)20 7513 0630
Email: conf@igc.int Website: www.igc.int

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For more information, see Page 118.

VICTAM PRODUCTSHOWCASE

Adjustable depth bearing temperature sensors

Structural catwalks and support towers

4Bs adjustable depth bearing (ADB) temperature sensors have been


designed to allow the depth of the probe to be adjustable depending on
the application. The ADB sensors are available with three standard probe
lengths of 2, 4 or 8 inches (50, 100 and 200 mm), and screw directly into a
bearing housing through the existing grease zerk thread. There is no need
to remove the sensor for bearing lubrication since each sensor is fitted with
its own grease zerk. The ADB series have NTC type thermistors which allow
for continuous temperature monitoring, and they can be connected to a
PLC or to a hazard monitoring system, such as 4Bs T500 Hotbus Elite or
Watchdog Elite. The ADB Series of bearing temperature sensors have been
approved for use in hazardous areas according to ATEX, CSA and IECEx.
Stand #B040

SCAFCO Grain Systems engineers have extensive field and design


experience in galvanized steel support towers, catwalks and bridges for
applications at large port facilities, flour and feed mills, feed lots, breweries
and distilleries, and the ethanol industry. These structures are designed for
shipment by over-the-road trailers or by ocean shipping containers for local
assembly at grain storage and handling sites around the world. SCAFCO
Grain Systems knowledge in climatic and seismic design ensures accurate
engineering for local conditions anywhere.
Stand #A015

For more information, see Page 118.

112

For more information, see Page 118.

April 2011 / World Grain / www.World-Grain.com

SUPPLIERNEWS

Ocrim updates facility in Cameroon

Cremona, Italy-based Ocrim will increase the capacity at SGMCs flour mill
in Cameroon to 600 tonnes per 24 hours. Photo courtesy of Ocrim.
PORT OF DOULA, CAMEROON Ocrim has been contracted to
update a facility in Cameroon for the SOMDIAA Groups subsidiary
SGMC in two phases.
The first phase foresees the total arrangement of the warehouse,

storage and shipment of finished products, the installation of the new


milling section and the installation of the machines necessitated by
the increase of the capacity of the existing mill. The facilitys present
capacity of 280 tonnes per 24 hours will be increased to 600 tonnes
per 24 hours after the installation of a new milling line with a capacity of 200 tonnes per 24 hours and the increase in the capacity of the
existing mill from 280 to 400 tonnes per 24 hours. Ocrim noted that
the increase of the milling capacity of the existing section will be
carried out with minimum stoppage of production.
The mills automation software will be Ocrims management@
mill that allows the management of the cleaning section, wheat milling, storage and shipment of the finished products and also of the
scheduled maintenance and spare parts warehouse.
Ocrim noted that SOMDIAA is an important group in the food
and agriculture sector in Africa. The group owns various branches in
Cameroon, Gabon, Congo and Ile de la Runion. Its activities cover
a variety of sectors such as sugarcane production and processing, the
production of flour and animal feed, and the selling of cotton fibers.

Brock Grain Systems M SERIES bins receive award


MILFORD, INDIANA, U.S. Brock
Grain Systems M SERIES Commercial
Grain Storage Bins were recently honored
as one of 50 recipients of the 2011 AE50
Awards, presented by the American Society
of Agricultural and Biological Engineers
(ASABE). The annual award recognizes the
worlds best technology innovations introduced the previous year for the agricultural,
food and biological systems industries.
Brock Grain Systems noted that it was
one of many companies from around the
world to submit an entry to the annual AE50
competition, where up to 50 of the top prod-

ucts are chosen by a panel of international


engineering experts. The judges select
products that will best advance engineering for the food and agriculture industries
and emphasize the role of new products and
systems in bringing advanced technology to
the marketplace.
Being recognized with this honor means
that all of the time, work and dedication
our engineers and employees provide to
our customers and the agricultural industry
is truly valued as our product innovations
continue to move the industry forward,
said Doug Niemeyer, vice-president and

general manager for Brock Grain Systems.


We look forward to continuing to do our
part in 2011 to offer the best, most innovative solutions to the grain storage industry.

OPI-integris, CMC Industrial Electronics form alliance


PORTLAND, OREGON, U.S. OPI-integris, a world leader for
Advanced Grain Management solutions and CMC Industrial Electronics Ltd., a leader for HazMon technology, on Feb. 27 announced
their Digital Alliance at a reception held at the Portland Convention
Center following day one of the 2011 Grain Elevator and Processing
Society (GEAPS) Exchange.
In a speech delivered by CMC Chief Executive Officer (CEO)
Doug Forst and OPI-integris CEO Dave Crompton, they explained
how their new alliance will bring the digital revolution to the grain
processing industry.
Both of our systems will now work together on an integrated platform, Forst said. What this means is that our hazard monitoring
can operate seamlessly with OPI-integris Advanced Grain Management grain monitoring software to provide the grain industry with a
single, elegant, hazardous location-approved solution.
Crompton further elaborated, saying, Our alliance represents
a new digital standard that will change the way grain facilities are
managed, starting now and for decades to come.
One of the key points Forst and Crompton addressed dealt
114

with legacy-related concerns, by reassuring grain processors


that their new digital platform would allow for the integration of
current Thermocouple cables, while providing a digital solution
over time.
For those Thermocouple cables at, or approaching, end of life,
you now have the ability to change up to digital technology for improved accuracy, reliability and capability as your budget allows, and
without having to make a wholesale change-over of your entire system, Crompton said.
Another key offering of the Digital Alliance is the ability to seamlessly and easily tie into the balance of Plant Control systems, which
Forst says will simplify plant information operations.
Its a single point of display for all plant information management needs, Forst said. Imagine, only one PC on the control room
desk displaying plant operations, performing hazards functions and
managing grain quality.
For more information about OPI-integris and CMC Industrial
Electronics Ltd. and their new Digital Alliance, visit their websites at
www.advancedgrainmanagement.com and www.cmciel.com.
April 2011 / World Grain / www.World-Grain.com

115th Annual IAOM


Conference & Expo
May 2-6, 2011 | San Antonio, Texas
Hyatt Regency Hotel & Henry B. Gonzaleze Convention Center
Senior-level executives and milling operatives wont want to miss
the 115th Annual IAOM Conference & Expo. The conference
will keep you ahead of the game with sessions in:

technical operations | employee management


product protection | faciility management
Discover best practices in brake extractions, micro-monitoring
and safety risk assessments, and learn more about safety valves,
sanitary design and the changing landscape of power quality.
KEYNOTE ADDRESSES

THE FUTURE OF FLOUR MILLING


Bill Stoufer, ConAgra Mills

GENERATION TO GENERATION:
CREATING CONNECTIONS FOR A PRODUCTIVE WORKPLACE
Becca Aronow, LPC, CEAP
Discover the latest technologies and
business solutions at the IAOM Expo!
Come prepared to support the
International Milling
Education Foundations
Inaugural Silent and Live Auctions!*
*Auctioneers: Blue Fox Benet Auctions | Rick (16220) and Cindy (16458)
Stroud www.bluefoxauctions.com

Register Early to Save!

www.iaom.info
To exhibit or request a brochure, call
+---.
Nonmembers who register for the
conference receive a complimentary
one-year IAOM membership.

For more information, see Page 118.

SUPPLIERNEWS

Eurofins signs agreement to acquire Lancaster Laboratories, Inc.


PARIS, FRANCE Eurofins Scientific SE announced Feb. 24 that it
has signed a definitive agreement to acquire Lancaster Laboratories,
Inc. from Thermo Fisher Scientific, Inc., Waltham, Massachusetts, U.S.,
for approximately $200 million, subject to post-closing adjustments.
With approximately 1,100 employees in the U.S. and Ireland, Lancaster, Pennsylvania, U.S.-based Lancaster is a leading provider of
pharmaceutical product-testing services and GMP Quality Control
(QC) in North America. In addition, it operates one of the leading environmental testing laboratories in the U.S. Lancaster has been growing rapidly over the last 50 years and generated sales of approximately
$115 million in 2010.
With this bolt on acquisition, the Eurofins Group becomes a global
leader in this very stable and recurring business and significantly enlarges its North American footprint. The company said it is a further
expression of Eurofins commitment to serve the pharmaceutical and
biotechnology industries with laboratory services of the highest quality and reliability. The Eurofins Group said the acquisition reinforces
its leadership in terms of scale and quality of service on a wide range

of laboratory activities for the pharmaceutical and biopharmaceutical


industries in North America, Europe and Asia.
The Eurofins Group noted that Lancaster is also one of the oldest,
largest and most reputable environmental testing laboratories in the
U.S., and it has a solid reputation for excellence in service quality and
reliability and enjoys long standing relationships with many Fortune
500 clients. The company said Lancasters strong position and reputation for top quality service in environmental testing in the U.S. fits well
with Eurofins strategy of being a global market leader with a focus on
providing high quality services to large global corporations.
The Eurofins Group said that completion of the transaction is
expected by the end of May and is subject to applicable regulatory
approvals and customary closing conditions. Implied EV/EBITDA
multiple is in line with levels previously communicated for transactions of this size and Eurofins value-creation objectives. Given
that Lancaster is already a single-site laboratory in the U.S., no site
consolidations or restructuring costs are foreseen as a result of this
acquisition.

Intersystems launches line of distributors, new belt conveyor model


OMAHA, NEBRASKA, U.S. Intersystems announced on Feb.
25 that it has launched two new products to its already extensive
bulk material handling line: distributors and triple idler enclosed belt
conveyors. Intersystems said the addition of these products expands
its commitment as a full-line supplier of heavy duty bulk material
handling equipment. Both the triple idler conveyor and the distributors are key products to the grain and feed industries. Intersytems
said its customers will be able to easily integrate these products with
Intersystems existing line of bulk material handling equipment.
The triple idler conveyor, named the RollerFLO 3i enclosed belt conveyor, features side idler support brackets with easy two-bolt removal,
external flange bearings, heavy duty idlers, two-way head discharges,

reloading tail with a quick clamped hinged tail shroud and a selfcleaning spiral wing tail pulley. Results of thorough testing and temperature readings ensure reliable performance. The 3i joins the companys
original RollerFLO to meet a variety of enclosed belt conveying needs.
The distributors initial product offering consists of spout sizes
ranging from 10 to 30 inches and 4-hole to 20-hole in full round or
flat back models with swing valve available as well. Intersystems
also noted that other features included are: an electric direct drive
rotary encoder for ease of maintenance and installation; a thrust bearing used to take the load of the distributor spout and live load; bidirectional rotation; rotary position sensor; a seal plate; and weatherproof and dust-tight construction.

Craig Jones joins Intersystems as sales manager


OMAHA, NEBRASKA, U.S. Intersystems announced on Feb.
23 the addition of Craig Jones as sales manager. Jones will be responsible for marketing the companys line of bulk material handling
equipment to the feed, grain, pet food, ethanol and other related in-

dustries in his southwest United States territory.


With 20 years in the industry, Jones has served as a plant manager
for Cargills Animal Nutrition division and a sales representative for
Borton, LLC. Most recently, he was a sales manager for Tramco, Inc.

... Follow the leader in bulk goods handling, dust-extraction and ventilation plants
The QUICK CONNECT pull-ring makes the acclaimed
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layouts user-friendly system installation
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Powder coated steel or hot-dipped galvanised steel
Phone +49 (0)571 95580
www.jacob-pipesystems.eu
as well as stainless steel.
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Shock-explosion certified pipes and components available.
Up to 400 mm normally dispatched immediately from stock.

EUROPES NO. 1 IN MODULAR PIPEWORK SYSTEMS Used in all industrial sectors


For more information, see Page 118.

116

April 2011 / World Grain / www.World-Grain.com

SUPPLIERNEWS

Sweet Manufacturing introduces new multilingual website


SPRINGFIELD, OHIO, U.S. Sweet
Manufacturing Company on March 1 announced that it recently introduced a new
website (www.sweetmfg.com) that was
developed to enhance and simplify the experience for all visitors. Sweet said the site
features include new drop-down menus,
more impressive product/installation photos, easy-to-identify industry icons and
enhanced search functionality. All of these
features were incorporated into the new
website to improve site navigation and to
enable the visitor to more easily and quickly locate the products that they are looking
for on www.sweetmfg.com.
The site is available in both English and
Spanish, and the companys product overview brochure is accessible on the new websites home page in five different languages.
The multilingual brochure is available in
Russian, Romanian, Portuguese, Italian and
Spanish. The new website also includes all
of the companys product brochures and
installation and operating instruction manuals. Sweet said the website was designed to
provide easily accessible material-handling
product information in multiple languages
to make it a useful resource for existing and
potential customers from all over the world.
We are very pleased and excited with our
new site. Our website is a key marketing tool
for us, and we want to ensure that our site

reflects our commitment to quality products


and superior customer service, Mike Gannon, Sweets vice-president of market strategy and planning, said. We feel that www.
sweetmfg.com will be a desired site for visitors from all over the world to learn more
about the quality material handling products

that are available from Sweet. We are focusing on making the visit to our site an experience worthy of many return visits. We want
the visitor to quickly be able to determine
that we have the products they are looking
for and that we are a company they want to
do business with now and into the future.

Sweet Manufacturing hires PE as new engineering manager


SPRINGFIELD, OHIO, U.S. Sweet Manufacturing Company announced on Feb. 23 that Roy Mead, professional engineer (PE), has
joined the company as the engineering manager.
Mead brings a vast engineering background
which includes structural design, machine design, electrical controls, and robotics.
Mead will be responsible for leading the Sweet
Engineering team, and he will also work closely
with both internal and external customers to provide appropriate equipment and project design
and layout recommendations that will ultimately
Mead
satisfy customer material handling requirements.

Mead has an extensive background in engineering, having previously served as a project engineer, senior engineer and company
chief engineer.
His previous experience includes design and development of
material handling, conveying and lifting equipment utilized in
other industries including the machine tooling sector. Mead has
also received multiple design patents.
Sweet said Meads previous experience coupled with his education and professional certification will be extremely beneficial to the
company as it continues to work toward accomplishing its goals and
mission: To provide innovative quality solutions that create an extraordinary customer experience.

For more information, see Page 118.

www.World-Grain.com / World Grain / April 2011

117

ADVERTISERINDEX

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 Mark Cornwell. We will immediately forward your request.

Advertiser(s)

Your Name
Your Title
Your Company Name
Type of Business
Address
City

State/Province

Country

Zip/Postal Code

Telephone (include country code)


Fax
E-mail

Fax to World Grain in the U.S. at 1.816.968.2878, attn: Mark Cornwell, or e-mail at MCornwell@sosland.com.
Check the following advertisers for more information
4B Components Ltd. ................................85
IMAS Integrated Machinery Systems .........19
PTM Technology .......................................48
Agromatic................................................96
International Association
Reinhard Rueter
Alapala ....................................................57
of Operative Millers................................115
Maschinenbau e.Kfm. ..............................32
Amandus Kahl GmbH & Co. KG ................72
International Grains Council ...................111
Research Products Co. .............................25
ATMI .......................................................53
Intersystems.......................................26, 97
Satake .....................................................43
Bastak Gida Makine Medikal..................112
Jacob Sohne GmbH & Co. ......................116
SCAFCO Corp. .......................................120
Behlen Mfg. Co. ......................................39
JCB Consulting Ltd. .................................32
SEA s.r.l. ..................................................37
Brice-Baker ............................................101
Kay Jay Chill Rolls Pvt. Ltd. ......................42
Seaboard .................................................27
Buhler AG ...........................................60-61
Kepler Weber .........................................105
Sefar Filtration .........................................45
CETEC Cereal Technologies, Inc. ...............46
Lambton Conveyor ...................................73
Selis Ltd. Str. ............................................93
Chief Industries, Inc. ..................................3
Leonhard Breitenbach GmbH....................66
Shanghai Zhengchang International
Chopin Technologies ................................34
Louis Dreyfus Corp. ...................................9
Machinery & Engineering Co. Ltd. ............70
Chore-Time Brock International ................51
Mathews Co. ..........................................54
F. H. Schule Mhlenbau GmbH .................71
CHS Inc. ..................................................11
Maxi-Lift, Inc. ..........................................21
Silos Cordoba ..........................................18
CII Laboratory Services .............................30
Mhlenchemie GmbH ......................29, 117
STIF .........................................................49
Consergra S.L. .......................................112
Muyang Group.........................................87
Suncue Co Ltd. ........................................82
MYSILO Grain Storage Systems Co. ........103
DAEWON GSI Co. Ltd. .............................99
Symaga ...................................................16
Nabim .....................................................24
Damas A/S ...............................................40
Tapco, Inc. .................................................7
Norvell Company, Inc. .............................31
Denis .......................................................41
Techmach Technology (Pty) Ltd .................66
OBIAL ......................................................76
The Essmueller Co. ................................119
Tornum AB...............................................36
Ocrim S.p.A. ............................................23
Filip .........................................................47
Tramco, Inc. ...............................................2
Omas Srl ..................................................91
Frame ......................................................58
Ugur Machine Industry .............................89
OPI Systems .............................................79
FrigorTec ..................................................54
Vibronet ..................................................52
Perten Instruments AB ..............................67
Fundiciones Balaguer S.A. ........................12
Vigan Engineering S.A. ..............................4
Petkus Technologie GmbH ........................78
Future of Flour .........................................83
Vortex Valves North America ....................77
Pfeuffer GmbH .........................................13
Gamet Manufacturing ..............................15
Westeel ...................................................69
Polen Gida ...............................................17
Genc Degirmen ........................................55
World Grain ...........................................113
Prive S.A. ................................................14
Global Industries, Inc. ..............................75
Yenar .......................................................59
Golfetto Sangati SpA .............................107
Grapas.....................................................35
Great Western Mfg. Co., Inc. ....................33
More information about these advertisers can be found on www.World-Grain.com. Go to the
The GSI Group Inc. ..................................81
Buyers Guide, then search by company name and click on go. This will bring up contact
Hebei Pingle Flour
details for that company, including active links to its email address and company web site.
Machinery Group Co. Ltd. China ...............95
Clicking on the companys Products & Services link will take you to a list of the companys
products and also includes a description of the companys services and activities.
Hi-Roller ..................................................13
This index of advertisers is provided as a service to readers. The publisher does not assume any liability for errors or omissions.

on the web

118

April 2011 / World Grain / www.World-Grain.com

Delivering customer satisfaction and


uncompromising quality for over 130 years!

sConveyors

sTurn Head Distributors

sBucket Elevators

sScrew Feeders

Manufacturing grain handling equipment since 1878

P.O. Box 1966 / 334 Avenue "A", Airbase / Laurel, Mississippi 39440, USA
Phone 601-649-2400
Toll Free 800-325-7175
Fax 601-649-4320 E-Mail essmueller@essmueller.com
For more information, see Page 118.

For more information, see Page 118.