Digital Re-print - March | April 2013

Global Feed Markets: March - April 2013

www.gfmt.co.uk

Grain & Feed Milling Technology is published six times a year by Perendale Publishers Ltd of the United Kingdom.All data is published in good faith, based on information received, and while every care is taken to prevent inaccuracies, the publishers accept no liability for any errors or omissions or for the consequences of action taken on the basis of information published. ©Copyright 2013 Perendale Publishers Ltd. All rights reserved. No part of this publication may be reproduced in any form or by any means without prior permission of the copyright owner. Printed by Perendale Publishers Ltd. ISSN: 1466-3872

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GLOBAL GRAIN & FEED MARKETS

Every issue GFMT’s market analyst John Buckley reviews world trading conditions which are impacting the full range of

commodities used in food and feed production. His observations will inf luence your decision-making.

Some analysts

have forecast a 5%

decline in combined

Russian/Ukrainian

sunflowerseed

sowings with

Ukraine alone

down 7-10%, after

less land was freed

up for spring crops

by ‘winterkill’ of

autumn-sown grain

crops. Ukraine

farmers might also

have been deterred

by a 17% drop in

last year’s yields

due to lack of

timely rains.

HOPES of a major rebound from last season’s disappointing crop performance put wheat prices under further downward pressure for much

of the period since our last review and helped restrain frisky corn/soya prices too. On the leading Chicago futures market, the bellwether soft red winter wheat contract fell at one stage to as little as $247 per tonne for near delivery compared with last July’s peak of about $347.50. European soft milling wheat followed suit despite a weak euro and rapidly disappearing supplies from last year’s smaller than expected crop, at one stage reaching eight month lows of €232/tonne on old-crop months. Traded prices on world export markets also declined, soft milling wheats settling about $20 either side of the $300/tonne level on fob terms. For US soft red winter wheat that was about $60/80 cheaper than last summer’s peaks.

Two factors have driven wheat market weakness. One is the widespread idea that this year’s global crop might actually come close to the 2011 record 697m tonnes as output recovers in the former Soviet Union and Europe and increases in Canada and Australia. That total may be a bit optimistic, given the poor start to the US hard red winter wheat crop and a number of weather issues in western Europe and Russia. Still, a healthy addition to next season’s wheat supplies is nonetheless backed by bodies including the International Grains Council, the UN Food & Agriculture Organisation and the US Department of Agriculture (whose unofficial forecasts have been among the highest).

That said, the view seems to be gaining hold that next season’s world surplus stock of wheat will not increase much as demand increases too. But then, global stocks are hardly small to start with, having run close to the record 200m tonne level for the past three seasons and – even in his supposedly tighter year - still expected to finish at a comfortable 178m. This relatively small decline has been due to total wheat consumption falling this season by almost 25m tonnes. Although the US

raised its wheat use by 4m tonnes (to meet feed shortages after its small maize crop) consumption elsewhere fell far more steeply, mainly in the EU, Russia and Ukraine. Their combined decline, mainly in feed use, resulted in world total consumption in this sector dropping by almost 13m tonnes.

The other factor weighing on wheat prices has been export competition, which has been sustained for far longer than many had expected at the start of this season when it was becoming clear that ‘Black Sea’ harvests were going to disappoint again. In the event, Russian exportable supplies are thought to have collapsed by 11m tonnes while two other key exporters, Argentina and Australia are also expected to each ship 4m tonnes less than in the previous season. But on the other hand, Indian exports are seen increasing by 7m on-year to a new record 10m tonnes versus zero normally. Canada’s sales are also seen rising by 1m, Europe’s by 3m. At the same time, this season’s world import demand has dropped away by 12m tonnes, (after declines in Egypt, EU, Africa, Middle East), leaving exporters competing for shares of a smaller cake. Interestingly, this has occurred despite constant reports that wheat’s unusual discount to maize is pushing the coarse grain out of Asian feed markets.

Some analysts had expected wheat prices to firm up when Russian and Ukrainian supplies started to dry up at the turn of the year. However, India, burgeoning with record stocks and with another huge crop around the corner, then stepped up as the cheapest export offer - but quickly found itself still in a pricing (and quality) contest with US and European soft wheats too. Along with the continued presence of Canada and Australia and – even yet - small volumes of wheat still trickling out of Russia and Kazakhstan, there has been no apparent shortage for importers wanting to take advantage of the drop in wheat prices (up to 22%) from last summer’s highs.

While there has been no real justification to push prices up, US wheat futures markets have gone firmer again in the past month. This is partly

Crop hopes should keep raw material costs in check

Grain&feed millinG technoloGy44 | march - april 2013

COMMODITIES

due to US exports f inally picking up and even starting to approach the needed pace for the (recently reduced) official forecast for the season. At the same time, maize has extended its unusual price premium to wheat on both the US futures and physical markets, leading to a steady surge in wheat orders from domestic feeders and even from the US ethanol industry (despite wheat’s lower value in terms of starch/fuel production canceling out much of the advantage of its price discount v maize). However, possibly some of those substituting wheat in this and other sectors may be using it as a bargaining tool to keep their maize costs under control.

Along with the higher exports this picture of improving US wheat demand (although not yet proven in the official seasonal forecasts for US wheat usage) has begun to unsettle the speculative community. For some time, funds and other ‘outside’ investors had built up record large short (sold) positions on the futures markets, effectively betting on wheat prices falling further rather than rising. As these operators have been forced to cover their exposure, that has injected a self-fuelling element into the rally on the Chicago markets. In recent weeks, along with strong EU exports and a weak euro, the US trend has also spilled some strength into the European wheat market and into international wheat export prices to a lesser extent (Paris milling wheat futures recently at six-week highs).

However, this latest mini-rally would not have been possible without some help from a relatively f irm maize market, the latter underpinned by an ever tightening supply after last year’s short US crop. As the IGC reminded markets this past month, it is not only US stocks of maize that will finish 2012/13 at unusually low levels. World stocks are also expected to fall to a 16-year low. However, if all goes well with the coming US and other world crops of maize, that inventory could be back to an eight-year high by September 2014.

All this, of course, has implications for wheat demand and value. If maize prices do shift, as futures promise, from their current modest premium over wheat to a steep 24% discount

by the end of the calendar year, wheat demand a n d p r i c i n g will clearly be affected.

Like wheat , maize is also see ing lower world demand – a 6.7% fall in this season’s exports on the back of a 10% drop in consumption. A big US maize crop this summer will – provided world supplies keep at least steady too - result in a lot more maize and less wheat being fed t he r e . Cheaper prices should a l so boos t overall feedgrain use (The IGC sees barley output up 6% too).

At this stage – a US maize crop rebound is expected of at least 30% from this year’s unusually low 274m tonnes to a r ound 360/370m tonnes. Thatv will not only boost demand but replenish US s tock s , he lp i ng to keep forward maize prices down through the coming season. However, we

must also remember, the US crop has only just begun sowing and, as recent wet conditions have reminded traders, there remain a world

Grain&feed millinG technoloGy march - april 2013 | 45

medium of the digestive tract and sulphates are attributed to a higher value than oxides. A product with very low solubility, for example, copper oxide, therefore should not be used (any longer) in feeding livestock.

The good solubility of sulphates, however, provides us with the disadvantage that for example dissociated copper ions are very reactive (strong pro-oxidant that initiate and speed up oxidation) and therefore promote adverse reactions with feed components

(degradation and damage of sensitive ingre-dients such as vitamins or fat as well as forming harmful free radicals and peroxides and reducing palatability of feed) (Miles et al. 1998; Lu et al. 2010; Pang and Applegate

2006; Shurson et al. 2011).In contrast to inorganic, organically bound

trace elements (trace element chelates) are stable in the diet and absorption by the animal is improved due to their chemical structure. Their advantage is thus superior

in isolation from the solubility of inorganic trace elements, but also in reducing the absorption-inhibitory responses in the diges-tive tract. These are mostly antagonistic interactions with feed components that

compete for the same absorption capabili-ties. The positive effects of organically bound to inorganic trace elements were confirmed in numerous scientific studies (Kincaid et al. 1997, Nockels et al. 1993, Wedekind et al. 1992). Nevertheless, an adequate assess-

Graph 1: Impact of various copper sources on the concentration of vitamin E in feed (Lu et al. 2010)

Graph 2: Impact of increasing dosages of various copper sources on the phytate phosphorus hydrolysis by phytase

(Pang and Applegate 2006)

Grain&feed millinG technoloGy march - april 2013 | 41

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8-10 APRIL, 2014Bangkok International Trade & Exhibition Centre (BITEC)

CONFERENCE

Conference patron:

Conference delegates should pre-register on the VICTAM or GRAPAS websites (available from December 1, 2013 onwards)

GRAPAS_Advert_210x297+3.indd 1 10/04/2013 11:33

Are you social?Keep up to date with us in-between issues by following us on any of our social platforms

Take a look at our newly re-vamped Facebook page, that now covers updates from GFMT as well as all of the very best of The Global Miller’s newshttp://www.facebook.com/GrainFeedMillingTechnology

See our previous editions online for free

www.gfmt.co.uk/archive.php

A subscription magazine for the global flour & feed milling industries - first published in 1891

In this issue:

• NIR in practice

• Rice and contract terms

• New weighing software for UK co-operative

May - June 2012

• LC-MS/MS:The New Reference Method for Mycotoxin Analysis

• Fast, reliable and flexible:

the world of modern bulk weighing

• Mould controlin grain and feed preservation

GFMT12.03.indd 1 22/06/2012 08:48

A subscription magazine for the global flour & feed milling industries - first published in 1891

In this issue:

• Improving supply from farm to fork

• Victam Asia Product Showcase

• Global grain & feed markets

March - April 2012

• Assessing cereal quality parameters

• Controlling Insects with heat

• Grinding by a proven concept makes your choice simple

GFMT12.02.indd 1 17/04/2012 13:05

A subscription magazine for the global flour & feed milling industries - first published in 1891

In this issue:

• Increasing storage capacity

• Digital microwave moisture measurement

• Global grain & feed markets

January - February 2012

• Bulk storage & handling

• Preservatives Preservatives are a recurring

topic in public discussions

• EfficiencyEnergy saving in flour milling

GFMT12.01.indd 1 02/02/2012 10:12

A subscription magazine for the global flour & feed milling industries - first published in 1891

In this issue:

• Mycotoxins an overview

• Database for animal diet formulation techniques: A glance to last decade

• Food safetyin the grain milling industry

• Recent advances in rapid grain testing

November - December 2011

• African advances

Animal feed milling is one of the most buoyant activities in the agri related field

• Optical sorting Optical sorting has come of

age and should be considered as a serious option for inclusion in any modern wheat cleaning plant

• Get in lineProcess analysis solutions open new opportunities for improved profit and quality

GFMT11.06.indd 1 30/11/2011 17:28

A subscription magazine for the global flour & feed milling industries - first published in 1891

In this issue:

• Sample preparation of feeds and forage for NIR analysis

• 15-Year Celebration: Fortifying with folic acid prevents 22,000 birth defects annually

• Global Feed Markets:Wheat supply grows and grows as corn crop shrinks

October 2011

• Producing Flaked breakfast Cereals

• Direct Cold Plasma: The innovative answer to odour control in the food and feed industry

• Milling Technology Redefined

GFMT11.05.indd 1 05/10/2011 09:49

FEATURE

COMMODITIES

due to US exports f inally picking up and even starting to approach the needed pace for the (recently reduced) official forecast for the season. At the same time, maize has extended its unusual price premium to wheat on both the US futures and physical markets, leading to a steady surge in wheat orders from domestic feeders and even from the US ethanol industry (despite wheat’s lower value in terms of starch/fuel production canceling out much of the advantage of its price discount v maize). However, possibly some of those substituting wheat in this and other sectors may be using it as a bargaining tool to keep their maize costs under control.

Along with the higher exports this picture of improving US wheat demand (although not yet proven in the official seasonal forecasts for US wheat usage) has begun to unsettle the speculative community. For some time, funds and other ‘outside’ investors had built up record large short (sold) positions on the futures markets, effectively betting on wheat prices falling further rather than rising. As these operators have been forced to cover their exposure, that has injected a self-fuelling element into the rally on the Chicago markets. In recent weeks, along with strong EU exports and a weak euro, the US trend has also spilled some strength into the European wheat market and into international wheat export prices to a lesser extent (Paris milling wheat futures recently at six-week highs).

However, this latest mini-rally would not have been possible without some help from a relatively f irm maize market, the latter underpinned by an ever tightening supply after last year’s short US crop. As the IGC reminded markets this past month, it is not only US stocks of maize that will finish 2012/13 at unusually low levels. World stocks are also expected to fall to a 16-year low. However, if all goes well with the coming US and other world crops of maize, that inventory could be back to an eight-year high by September 2014.

All this, of course, has implications for wheat demand and value. If maize prices do shift, as futures promise, from their current modest premium over wheat to a steep 24% discount

by the end of the calendar year, wheat demand a n d p r i c i n g will clearly be affected.

Like wheat , maize is also see ing lower world demand – a 6.7% fall in this season’s exports on the back of a 10% drop in consumption. A big US maize crop this summer will – provided world supplies keep at least steady too - result in a lot more maize and less wheat being fed t he r e . Cheaper prices should a l so boos t overall feedgrain use (The IGC sees barley output up 6% too).

At this stage – a US maize crop rebound is expected of at least 30% from this year’s unusually low 274m tonnes to a r ound 360/370m tonnes. Thatv will not only boost demand but replenish US s tock s , he lp i ng to keep forward maize prices down through the coming season. However, we

must also remember, the US crop has only just begun sowing and, as recent wet conditions have reminded traders, there remain a world

Grain&feed millinG technoloGy march - april 2013 | 45

US wheat market currently look too high – especially against maize which is now heavily discounted for last quarter 2013 against the spot market and at a huge discount to forward wheat prices too. European wheat markets in contrast, are heavily discounted on new crop, Paris milling wheat futures 10% to 12% below current crop prices, mainly on the assumption that domestic wheat crops will increase this summer.

In conclusion, amid higher global output, increased export competition, limited import recovery prospects and less pressure to feed wheat instead of maize, the European market’s prospect of cheaper wheat

costs ahead starts to look more realistic than the picture painted by US futures.

KEY FACTORS IN THE MONTHS AHEAD – WHEAT • The extent of European and Black Sea crop

rebounds from last year’s disappointing levels

• Spring, summer and harvest weather in the northern hemisphere

• The extent to which wheat use in feeds is reduced if maize crops recover as planned

Maize –season of plenty ahead?

Crosscurrents have continued to tug at maize prices, restraining the price advance to about 6.5% compared with the near 10% added to wheat’s February lows. The main factor on the upside has been that spectre of low end-season stocks, especially after USDA recently added 2.5m tonnes to its US feed use forecast. There have also been reports of recovering demand from the US corn ethanol sector (40% of US maize disappearance). This has all made farmers cautious about parting with their remaining old crop stocks, expecting to get higher prices for as these as supplies dwindle in last quarter 2012/13 (Jun/Aug). This strategy is not without risk, though, as the US futures markets say maize will be cheaper by well over $1/bushel (about $47/tonne or 16.6%) from July to September, dropping by another 5% by December.

At the same time, competition for maize import business on international markets is heating up to an almost unprecedented degree.

figure could go up too. Kazakhstan should also see some comeback in wheat output after drought cut last year’s crop from 22.7m to 9.8m tonnes and exports from 11m to 6.5m.

If the Black Sea crops do come back as planned, they will be up against more competition for world import trade – from India (maybe another 10m tonnes of unusual exports) and from expected bigger EU, Canadian and Australian crops, with the usual caveat of normal weather permitting across the board. The main exception is the world’s largest wheat exporter, the USA, where drought has diminished prospects for its hard red winter crop – its biggest (and therefore the world’s) single country export component. However, even that crop is improving with recent rain and snow. With old crop HRW exports running lower on lack of demand and comfortable stocks of this class and wheat in total likely to be carried into 2012/13, the US should still be able to export freely.

Will world wheat trade recover from this season’s 12m tonne drop? There are no obvious contenders yet to boost the figure in the import side and the top buyer Egypt has run out of trade finance and is cutting back sharply on purchases. Will as much wheat be fed to livestock in the US, Asia feed markets etc? Probably not, if corn production rebounds as much as forecast, returning to its usual discount versus wheat. However, countries which normally use a lot of wheat in feeds – but had to cut use during the past tight/expensive season (especially Europe and the CIS) may use more as supplies rebound and prices come down.

Overall, the outlook is for adequate wheat supplies. Barring several severe weather upsets (realistically there are always one or two), the forward new crop prices quoted on the

of weather possibilities to get through yet.

Wheat – export competition may keep prices down

The biggest single factor affecting medium/long-term wheat costs in the months ahead will by the success or otherwise of ‘Black Sea’ (CIS) attempts to recover production from last year’s d isappoint ing , drought-hit levels. Russia has had one or two problems with winterkill and dryness in its key southern (export supply catchment) area and officials are currently talking a wide crop range of 40/50m tonnes (probably near the median 45m) compared with last year’s 37.7m and 2011’s bumper 56.2m tones. A few years earlier, Russia was producing over 60m so this year’s crop would hardly be a banner one. Russian stocks will also be very low by the end of this season and officials have talked about giving priority to rebuilding these before embarking on any aggressive export campaign. Even so, some Russian exporters have already started selling some of the new crop forward as cheaply as $265/275/tonne fob terms – a massive discount to domestic old crop costs. This strategy may also risk exporters have to compete with the government when they come to source the sold grain as officials want to prioritise rebuilding depleted intervention stocks and are reportedly also planning to offer prices equivalent to $250/290/tonne. That said, the Russians have historically gone for the early season import trade and they have a ‘reliable supplier’ reputation to rebuild for their future trade expansion plans (see GFMT’s passim) so their early, active presence can’t be ruled out. Last year’s Russian exports more than halved to 10.5m tonnes but the coming season could see a rebound to maybe 14-15m tonnes. There have been a few 20m forecasts which, given perfect summer weather, can’t be ruled out.

Ukraine has had an exceptionally kind winter with little frost damage and most of its wheat crop is in good condition. There has even been talk of the total (winter abnd spring) crop reaching a record 21m tonnes versus last year’s 15.5m and the 2011 record 18.8m. Ukraine has also got off to a flying start with its spring plantings and looks likely to have another huge maize crop which will reduce wheat feeding and leave more for export. At this stage, traders are talking 8m to 9m tonnes of exports versus this year’s 6.,5/7m but that

Grain&feed millinG technoloGy46 | march - april 2013

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COMMODITIESweather. The Commissions crop forecasting unit MARS recently forecast yields rebounding by almost 17% which would add at least 9m tonnes to this year’s production.

KEY FACTORS IN THE MONTHS AHEAD – MAIZE • US maize planted area and growing weather

will decide if US/world stocks return to ‘normal’ levels, prices fall as futures forecast

• Rising global export competition for the USA from Latin America, CIS countries and India may contribute to cheaper maize costs ahead

• Will Europe’s own maize crop rebound, easing supplies here?

• US corn consumption for ethanol seems to be picking up again and could be a mildly bullish factor for prices

• China’s growing feed demand and its maize deficit – will it stabilize or expand in 2013/14, demanding more from the world market?

• Speculators’ enthusiasm to buy into any crop weather problemsProteins/oilmeals - demand to mop up

extra soya?The oilmeal sector also remains promising

for cheaper costs ahead. Improved weather is

corn as usual in 2012, is now expected export in 2012/13 close to last season’s record 15m tonnes exports. The competition has been undercutting US maize by as much as $20/30 per tonne, resulting in constant downgrades to USDA’s seasonal export forecast for this grain. At 22.5m tonnes this will be the lowest on modern record – less than a quarter of world maize trade against well over half normally. With the full brunt of Lat-Am harvests yet to be marketed, their dominance is likely to remain – at least until the next US crop proves its forecast recovery and can then be offered at those much cheaper prices

indicated by the futures markets. Even then, the US could be facing yet

another year of increased competition from the Ukraine which expects to harvest about 21m tonnes again this year. The EU’s own maize crop – which fell 11.5m tonnes last year – could also rise sharply with more normal

Thanks to a vast improvement in weather over first quarter 2013, Latin American maize crops are now expected to reach record levels. Argentina’s is up from 21m to 25/26m, Brazil’s from 73m to perhaps 76m. Between them they could export 45/47m tonnes compared with 15/25m normally. Ukraine, which for the second year running, produced twice as much

Grain&feed millinG technoloGy march - april 2013 | 47

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Assessing prospects, addressing challenges

World grain and oilseed prices have retreated from their highs, but supplies remain tight following last year’s poor harvests in key exporting countries. While South American crops look set to break new records this season, drought conditions in the US remain a concern, and a recovery in demand will keep supplies under pressure.

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is sensitive machinery, motors or anything electric and adversely affected by water.

The technology, which is the first of its kind in the UK, uses a continuous flow heating coil system to heat water to such a high degree that it becomes extremely hot vapour. The emitted dry steam contains minimal moisture and efficient cleaning capa-bility is produced from the steam pressure made on the surface area.

Is all steam cleaning the same?So steam is simply steam? Well actually,

no. Steam can be produced in a range of different grades, each matching dif-ferent industry applications. Picking the cleaning method best suited to your operation depends upon a number of options including the nature of the sur-face to be cleaned and the type of material or residue found on crushing or milling appa-ratus, conveyors and elevator pits and silos.

To date, conventional CIP systems have tended to rely on traditional boiler systems which are only required to heat the water to a maximum of 75 degrees and rely on high water flow and minimal pressure, using a lot of water in the process.

Most food related sites use hot water that comes off the boiler through hoses, using foamers, liquid chemicals and other sanitation agents. They can use between 200-1,000 litres of water per hour to blast a surface clean. They can also have the nega-tive side effect of sending dangerous bacteria airborne, spreading them through the plant without killing them. This ‘wet steam’ system does not use a vapour process.

Benefits of dry steam cleaning Efficient cleaning capacity is produced

from the steam pressure made on the surface to be cleaned and the solvent power of micro drops at a high temperature, with minimal moisture present.

The continuous steam system provides constant steam quality which can be adjusted by volume and dryness. Water flow and heating power can be controlled and adapt-ed by an electronic control system.

The amount of water saved depends upon the flow rate of the water system and the pressure employed, but it can save up to 90 percent of water used. OspreyDeepclean’s dry steam technology will typically use between 10-30 litres of water per hour, whereas a conventional system will use between 200-1,000 litres per hour.

Conventional cleaning leaves the risk of potentially dangerous residues contaminating food and raw materials. Then you also have the issue of getting into difficult spaces, such as tight crevices in storage areas or complex shaped equipment.

Dry steam sanitises surfaces, penetrating cracks, crevices and other hard-to-reach areas where manual and traditional cleaning methods, which mainly rely on potentially hazardous chemicals, fail to achieve the required standards.

As well as being applicable to a wide range of work settings, steam can be used to undertake innumerable cleaning tasks. The system can be used on feeding, mixing and blending vessels, machinery, conveyor belts, rollers, pipelines and also general floor areas, storage spaces and much more. As it is applied to the surface, dry steam leaves very little residue and can almost touch dry, especially when compared

to any other clean-ing method.

No additional ingredients are required in the steam to improve cleaning power, as efficient cleaning capacity is produced from the steam pressure made on the surface to be cleaned and the solvent power of micro drops at a high temperature, with minimal moisture present. However, where specific tasks or loca-tions demand it, ingredients can be added to improve the solidifica-tion of specific substances, for instance within liquid fat appli-cation devices which could congeal with-out the use of additional ingre-dients.

Dry steam machines for different applications

The tech-nology Osprey Deepclean has developed is available in a range of dry steam machines for different applications, based on many years’ experi-ence of creating bespoke steam solutions. This

includes the fully auditable dry steam belt sanitation unit (BSU) which cleans conveyor belts to allergen level, saving up to 3 million litres of water per annum.

The organisation has also developed a central steam system for food production and packaging areas. This is much like a central vacuum, which facilitates cleaning by simply plugging the steam hoses into central steam pipes without the need for handling cleaning machines. The sophisti-

cated equipment can be used for the cleaning of heavy parts and for plastic parts cleaning. The machines start from a 3kW single phase unit and

reach up to 144kW units avail-able in electric, oil or

gas heated coils.

Grain&feed millinG technoloGy march - april 2013 | 11

FEATURE

To reduce insect infestation, a common practice is the use of fumigation. The chemi-cal products used have to expertly and care-fully managed, for safety reasons. And do not decrease grain temperature.

The Conserfrio® system The Conserfrio® system can be used

independently of ambient weather con-ditions. Even under rain or fog there’s no risk of rewetting the grain. Our system is based on the making of con-stant conditions under which the grain storage is easy, natural, safe and profit earning.

Practices like turning the grain to cool it have weak success and waste lots of energy, also breaking some percentage of grains.

There are many direct savings and ben-efits related to a correct chilled conservation. The most important are:

• Avoiding fumigation means cost savings • Less weight loss, in other words higher

product output at the end of storage time

• Higher product quality means a higher selling price

• Higher head grains after the milling process. This point is especially important in the rice industry

• Energy savings in the drying process. It is possible and safe to store product with a higher moisture content if grain temperature is low. A drying-cooling combination achieves relevant energy savings.

All of these benefits give a very quick payback of the capital investment in the chillers, typically achieved in one or two years.

Our system is suitable to be used in silos (made of metal or concrete, flat bottom or conical bottom) and warehouses, not need-ing additional civil works. The cooling units need only electrical energy.

The chiller replaces the fan. The chilled, dry air is introduced into the silo through existing ducts.

In warehouses, the chilled air may be introduced through ducts placed under or over floor. In both cases a ducting system must be previously installed.

ConclusionThe system

has demon-strated to be the most natural and cost-effec-tive to preserve grains, seeds and perishable granulates dur-ing storage. A low storing tem-perature not only reduces the product vital metabolic activ-ity but also most of the troubles of a storing without control.

Typical users of chilled aera-tion are from small farms with as little as 100 ton storage up to large plants with storing capacities of around 100,000, 500,000 or even 1,000,000 mt.

Rice mills, flour mills, feed mills, malting plants, oilseed crushing plants

and grain storage facilities can all benefit of our technology.

Consergra is pioneer in the applica-tion of chilled aeration in many products. Throughout the years, we have gained lots of experience in the bulk preserva-tion of products such as paddy rice in all its varieties and lengths, cargo rice, milled rice, maize, wheat, barley, sunflower seeds, cotton seeds, beans, soybeans and green coffee beans to name but a few.

In benefit of the human and animal health and of the environment as well, grains and seeds must be responsibly treated as food.

More inforMation:Website: www.consergra.com

A low temperature is key point for a good storage

Refrigeration of a hopper silo

Grain chilling in a concrete silo

Warehouse grain chilling

Grain chilling in a flat-bottom metal silo

Grain&feed millinG technoloGy march - april 2013 | 37

FEATURE

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Bent_CCHD_A4march2011 2/17/11 10:51 AM Page 1

yield a record crop on the planned area. Down under, Australian rapeseed output was recently forecast to increase from last year’s 3.64m to about 3.5/3.7m tonnes, some estimates even approaching 4m which would be welcomed by importers. With world stocks at a nine-year low, bigger rapeseed crops are needed this year to avoid short supplies towards the close of next season although rapeseed meal, as noted above, will have to continue pricing at a discount to what it is hoped will be relatively abyndant soya meal.

KEY FACTORS IN THE MONTHS AHEAD – OILMEALS/PROTEINS • US spring soyabean planting and growing

weather• South America’s delayed marketing of a

record crop – more competition ahead for the USA’s peak, post-harvest marketing period and further downward pressure on soya costs?

• Chinese demand for soya meal – is it starting to peak or just pausing for breath?

• EU/CIS rapeseed & sunflowerseed and Canadian canola plantings - and their crop weather

deterred by a 17% drop in last year’s yields due to lack of timely rains. EU sunflower output is meanwhile forecast by French analyst Strategie Grains to rise by over 11% to 7.8m tonnes but stocks of sunflowerseed in EU and global terms will be unusually low at the start of next season, so domestic supplies may still need a bigger top up than this from imports.

European rapeseed crop prospects are mixed as northwest France and the UK had far too much rain, waterlogging, intermittent mild weather and freezing blasts. Some reports suggest 20% or more UK winter sowings could fail. However, Germany, Denmark and some eastern states are looking better than last year with less frost damage, so the total EU figure could yet increase within a range of 18.5/20.5m tonnes. Like sunflowerseed, rapeseed has drawn stocks to very low levels in EU and global terms so supplies are unlikely to be loose next season. On the bright side, Ukrainian crop prospects are much better than last year’s so more could be exported from this frequent EU supplier. The largest exporter, Canada expects to sow less canola as farmers shift to wheat but, providing this year’s slow snow melt doesn’t hold up sowing, a return from last year’s weather-hit yields (they fell 20%!) to normal levels could yet

helping record Latin American crop forecast materialize and, if the US sows as much as most analysts expect – and gets more normal weather/yields this year – supplies will be more than adequate in 2013/14.

Some question marks remain over 2013 crops of other key oilseeds like sunflowers and rapeseed. However, the sheer size of the increase in soya supplies should be enough to push up world total oilseed production by some 26m tonnes or about 6% . All these alternative oilmeals, of course, cannot divorce their pricing from the market leader soya meal – accounting for 55% of total meal output and with its higher protein content, the most valuable meal too. Currently the futures markets are predicting US soya meal prices will be over 15% cheaper by last quarter 2013 although, if all the US production comes through, that may considerably understate the potential decline in costs in this sector.

Sunflower/rapeseed prospects Some analysts have forecast a 5% decline in

combined Russian/Ukrainian sunflowerseed sowings with Ukraine alone down 7-10%, after less land was freed up for spring crops by ‘winterkill’ of autumn-sown grain crops. Ukraine farmers might also have been

Grain&feed millinG technoloGy48 | march - april 2013

http://www.gfmt.co.uk/millingnewsTo fi nd out more about our news services visit:

WANT NEWS?Grain & Feed Milling Technology magazine has two new options for you - online and up to the minute!

The Global Miller blog is an online offshoot of Grain & Feed Milling Technology magazine. While the bi-monthly magazine covers mill-ing issues in-depth, the Global Miller takes a lighter approach. The columnists dig out the best daily industry stories, show and event

news and highlights from the print magazine and bring them to you ever day ...

The Global Milling News service is a new development from the Perendale Publishers Limited family of grain, feed and fl our milling publications. The site scours the web to fi nd relevant stories from around the globe. The information is then ranked and orgnaised by topic, making it easy to fi nd information. If you’re searching for a specifi c topic, you’ll

fi nd it at Global Milling News.

THE GlobalMiller

GO MOBILEAll of our services are also available for your smart

phone. Visit http://www.gfmt.co.uk/pplapp for a demo version of our app - or use the QR code to get the app

FREE on your mobile.

yield a record crop on the planned area. Down under, Australian rapeseed output was recently forecast to increase from last year’s 3.64m to about 3.5/3.7m tonnes, some estimates even approaching 4m which would be welcomed by importers. With world stocks at a nine-year low, bigger rapeseed crops are needed this year to avoid short supplies towards the close of next season although rapeseed meal, as noted above, will have to continue pricing at a discount to what it is hoped will be relatively abyndant soya meal.

KEY FACTORS IN THE MONTHS AHEAD – OILMEALS/PROTEINS • US spring soyabean planting and growing

weather• South America’s delayed marketing of a

record crop – more competition ahead for the USA’s peak, post-harvest marketing period and further downward pressure on soya costs?

• Chinese demand for soya meal – is it starting to peak or just pausing for breath?

• EU/CIS rapeseed & sunflowerseed and Canadian canola plantings - and their crop weather

deterred by a 17% drop in last year’s yields due to lack of timely rains. EU sunflower output is meanwhile forecast by French analyst Strategie Grains to rise by over 11% to 7.8m tonnes but stocks of sunflowerseed in EU and global terms will be unusually low at the start of next season, so domestic supplies may still need a bigger top up than this from imports.

European rapeseed crop prospects are mixed as northwest France and the UK had far too much rain, waterlogging, intermittent mild weather and freezing blasts. Some reports suggest 20% or more UK winter sowings could fail. However, Germany, Denmark and some eastern states are looking better than last year with less frost damage, so the total EU figure could yet increase within a range of 18.5/20.5m tonnes. Like sunflowerseed, rapeseed has drawn stocks to very low levels in EU and global terms so supplies are unlikely to be loose next season. On the bright side, Ukrainian crop prospects are much better than last year’s so more could be exported from this frequent EU supplier. The largest exporter, Canada expects to sow less canola as farmers shift to wheat but, providing this year’s slow snow melt doesn’t hold up sowing, a return from last year’s weather-hit yields (they fell 20%!) to normal levels could yet

helping record Latin American crop forecast materialize and, if the US sows as much as most analysts expect – and gets more normal weather/yields this year – supplies will be more than adequate in 2013/14.

Some question marks remain over 2013 crops of other key oilseeds like sunflowers and rapeseed. However, the sheer size of the increase in soya supplies should be enough to push up world total oilseed production by some 26m tonnes or about 6% . All these alternative oilmeals, of course, cannot divorce their pricing from the market leader soya meal – accounting for 55% of total meal output and with its higher protein content, the most valuable meal too. Currently the futures markets are predicting US soya meal prices will be over 15% cheaper by last quarter 2013 although, if all the US production comes through, that may considerably understate the potential decline in costs in this sector.

Sunflower/rapeseed prospects Some analysts have forecast a 5% decline in

combined Russian/Ukrainian sunflowerseed sowings with Ukraine alone down 7-10%, after less land was freed up for spring crops by ‘winterkill’ of autumn-sown grain crops. Ukraine farmers might also have been

Grain&feed millinG technoloGy48 | march - april 2013

http://www.gfmt.co.uk/millingnewsTo fi nd out more about our news services visit:

WANT NEWS?Grain & Feed Milling Technology magazine has two new options for you - online and up to the minute!

The Global Miller blog is an online offshoot of Grain & Feed Milling Technology magazine. While the bi-monthly magazine covers mill-ing issues in-depth, the Global Miller takes a lighter approach. The columnists dig out the best daily industry stories, show and event

news and highlights from the print magazine and bring them to you ever day ...

The Global Milling News service is a new development from the Perendale Publishers Limited family of grain, feed and fl our milling publications. The site scours the web to fi nd relevant stories from around the globe. The information is then ranked and orgnaised by topic, making it easy to fi nd information. If you’re searching for a specifi c topic, you’ll

fi nd it at Global Milling News.

THE GlobalMiller

GO MOBILEAll of our services are also available for your smart

phone. Visit http://www.gfmt.co.uk/pplapp for a demo version of our app - or use the QR code to get the app

FREE on your mobile. Innovations for a better world.

Leave nothing to chance. With WinCos Care, the Service Management System

of Bühler, you will put your maintenance work in order. The system, which is

customized by Bühler to precisely fit the specific needs of your production system,

takes charge of the entire planning and administration of all your maintenance

jobs. This ensures efficient processes and maximum plant uptime.

WinCos Care Service

Management System –

Unrivaled Efficiency.

Maximum uptime:

Prefabricated job cards are based

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Extensive documentation, among

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Bühler AG, Grain Processing Customer Service, CH-9240 Uzwil, Switzerland,

T +41 71 955 30 40, service.gp@buhlergroup.com, www.buhlergroup.com

www.gfmt.co.uk

LINKS• Seethefullissue• VisittheGFMTwebsite

• ContacttheGFMTTeam

• SubscribetoGFMT

A subscription magazine for the global flour & feed milling industries - first published in 1891INCORPORATING PORTS, DISTRIBUTION AND FORMULATION

In this issue:

• Measures for increasing the energy efficiency of UFA feed mills in Switzerland

• Importance of trace minerals for nutrient stability in feed

• Managing mill maintenance - Maintenance options and challenges

• Super chilled grains

Mar

ch -

April

201

3

• Fine grinding and BS3 Xylanase improve productivity in weaners

• Additives for flour standardisation Part I: Enzymes

first published in 1891

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