WG 2020 04 01 PDF
WG 2020 04 01 PDF
WG 2020 04 01 PDF
PANDEMIC
PROBLEMS
COVID-19 presents challenges
for grain, milling industries
www.World-Grain.com
TECHNOLOGY
commodity drying
throughout the world
features
24 COVID-19 impacts agriculture from farm to fork
Industry vows to keep producing equipment, commodities,
feed and food staples as pandemic sweeps the world.
departments
06 Editorial 52
08 Calendar
09 World Grain News 40
18 Grain Market Review: Rice
20 Country Focus: South Korea
60 Supplier News
68 Product Showcase
69 Archive
70 Advertiser Index
Grain’s importance
during crisis EDITORIAL STAFF
Editor
Managing Editor
Arvin Donley
Eric Schroeder
Associate Editor Susan Reidy
A
s much of the world grinds to UHWXUQWREXVLQHVVDVXVXDOWRRVRRQ Digital Media Associate Editor Holly Saddler
a halt to slow the transmission It’s still too early to precisely deter- European Correspondent Chris Lyddon
of the novel coronavirus (CO- mine how the pandemic will impact the China Consultant Fengcheng Wang
VID-19), on a trajectory to infect mil- JUDLQ ÀRXU PLOOLQJ DQG IHHG PLOOLQJ
PUBLISHING STAFF
lions and kill hundreds of thousands of LQGXVWULHV ,Q WKH ODVW JOREDO HFRQRPLF
SHRSOHÀRXUPLOOVLQPDQ\FRXQWULHVDUH UHFHVVLRQLQFRUQDQGVR\EHDQ Publisher Dan Flavin
International Sales Manager Adam Ungashick
grinding wheat at a furious pace. SULFHVSOXPPHWHGE\QHDUO\LQWKH Audience Development
7KRXJK ÀRXU GHPDQG KDV FROODSVHG ¿UVW IRXU ZHHNV RI WKDW FULVLV 7KH GH- Director Michael Barbee
in the foodservice industry, with restau- FOLQH RI VR\EHDQ DQG FRUQ SULFHV VLQFH Audience Development Analyst Dustin Pickman
rants shut down in the hardest hit coun- WKLV FULVLV EHJDQ KDV EHHQ DERXW Audience Database Specialist Lindsey Sheridan
WULHVKRPHÀRXUDQGRWKHUJUDLQEDVHG EXW IURP D ORZHU VWDUWLQJ SRLQW 2QH Audience Development Coordinator Carlea Schuler
Director of Digital Media Jon Hall
SURGXFWV KDYH EHHQ À\LQJ R൵ JURFHU\ parallel to the current crisis is that crude
Digital Advertising Manager Carrie Fluegge
shelves as consumers stock up on inex- RLOSULFHVGURSSHGWRSHUEDU- Advertising Manager Nora Wages
SHQVLYH QRQSHULVKDEOH LWHPV LQ FDVH rel in 2009. In late March of this year, Advertising Coordinator Kayley Kerns
this pandemic lasts months instead of WKH SULFH SHU EDUUHO KDG VOLSSHG HYHQ Design Services Manager Elisabeth Spillman
weeks. As a result, demand for wheat ORZHU WR SHU EDUUHO IURP D UHFHQW Design Services
Assistant Manager Ryan Alcantara
VRDUHGGXULQJWKHSDQGHPLF¶V¿UVWVHY- high of $63 at the end of 2019. This is
Graphic Designer Brian Peterman
eral weeks, lifting prices at the Chicago partially due to shelter-in-place orders Production Specialist Marj Potts
%RDUG RI7UDGH DQG (XURQH[W E\ PRUH in the United States, China and other Promotions Manager Jim White
than 15%. At least for the near term, major oil-consuming countries that have
CORPORATE
that was a positive development in an drastically reduced auto, train and plane
RWKHUZLVHEOHDNVLWXDWLRQWKDWLVKDYLQJ usage, leading to a crippling economic Chairman and CEO Charles Sosland
devastating health and economic conse- impact on fuel manufacturers, including President L. Joshua Sosland
Chief Financial and
quences for many countries. JUDLQEDVHGELRIXHOVSURGXFHUV Administrative Officer Staci Greco
7KHODVWJOREDOSDQGHPLFRQWKLVVFDOH $V IRU WKH JOREDO DQLPDO IHHG LQGXV- Chief Operating Officer
occurred more than 100 years ago, in try, it is still recovering from the Afri- and Executive Editor Meyer Sosland
ZKHQ DQ LQÀXHQ]D RXWEUHDN FDQVZLQHIHYHURXWEUHDNWKDWLPSDFWHG Chief Marketing Officer Jim Saladin
___________________________
killed 50 million people. It was a very hog herds in much of Asia and Europe
Morton I. Sosland 1925-2019
GL൵HUHQWOHVVJOREDOO\FRQQHFWHGZRUOG in 2019 and may slump further as de-
then, so today’s political and medical mand for meat typically declines during WORLD GRAIN (ISSN 0745-8991) Volume 38, issue 3,
is published monthly by Sosland Publishing Company,
leaders are not only making decisions severe economic downturns. 4801 Main Street, Suite 650, Kansas City, MO 64112 U.S.
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WRRORQJEXWWKHKLJKSUREDELOLW\RILQ- Arvin Donley or omissions or for the consequences of any action taken on the
basis of information published.
creased illness and death if they allow a Editor
No 814 *4399 kg
CALENDAR OF EVENTS
June 1-5
IGP-KSU Feed Manufacturing
Location: IGP Institute, Manhattan, Kansas, US For a 12-month listing of 2020 industry events, see the 2020 International Buyers’ Guide or visit
Contact: IGP Institute Tel: 1.785.532.4070 www.World-Grain.com. Send your event details to: worldgrain@sosland.com or fax 1.816.756.0494.
E-mail: igp@ksu.edu Internet: https://www.
grains.k-state.edu/igp/on-site-training/ We want to hear from you — Send comments and inquiries to worldgrain@sosland.com.
For reprints of WG articles, e-mail reprints@sosland.com.
June 8-11
2020 Feed Industry Institute
Location: Hyatt Regency, Milwaukee, Wisconsin, US
Contact: AFIA Tel: 1.703.524.0810
E-mail: afia@afia.org Internet: www.afia.org/
Two-day IGC Grains Conference to examine
June 9-10
reshaping globalization of commodities
IGC Grains Conference Based on popular demand, the International Grains Council’s Grain Conference 2020 will fea-
Location: Congress Centre, London, England ture two full days of programming from June 9-10 at the Congress Centre, London, England.
Contact: IGC Tel: 44 (0)20 7513 1122 This year’s event will focus on reshaping the globalization of the grains, oilseeds and
E-mail: igc@igc.int
Internet: www.igc.int/en/default.aspx
rice sectors. The IGC Grains Conference brings together more than 350 delegates from
across the grains value chain, including sellers, buyers and end-users of grains, rice and
June 10 oilseeds as well as policy makers, and the press, where industry and government figures
Gafta’s Annual Dinner provide their views on the key factors likely to shape the industry’s future development.
Location: London, England Contact: Gafta
Tel: 44 20 7814 9666 E-mail: events@gafta.com
A keynote and panel discussion will focus on globalization, looking at ways to over-
Fax: +44 20 7814 8383 Internet: www.gafta.com come the current turmoil in the global economy and how to promote the globalization of
the grains trade along with the main impact of a rollback in globalization. Other sessions
June 16-June 18 are planned on how to promote policies that promote globalization, and how it helps the
Global Grain Asia
Location: Grand Copthorne Waterfront Singapore,
sector cope with rising food demand. A panel discussion will examine tariffs, non-tariff
Singapore Contact: Global Grain measures, financial digitalization and more.
Tel: + 44 (0) 20 7779 7222 Additional sessions will look at new stock exchange services and the role of the stock
E-mail: registration@ggrain.com exchange in the current financial challenging market, the trends in the stock exchanges’
Internet: https://www.globalgrainevents.com
activities, mergers, and how new types of futures contracts could help to reinforce the role
of the futures market to develop the grains value chain.
JULY Presenters will discuss ethanol’s prospects and impact on the grains market, the growth
July 2-3 and challenges for the canola market, the potential for growth of vegetable proteins from
Women in Agribusiness Summit Europe
Location: Les Salons Hoche, Paris, France
pulses, the next steps for financialization of the rice market, climate change and integra-
Contact: HighQuest Partners Tel: 1.207.801.9274 tion into the grains market and an in-depth look at the grains sector in the MENA region.
E-mail: eventinfo@highquestgroup.com More information and registration is available at https://www.igc.int/en/conference/
Internet: http://www.womeninag.com/ confhome.aspx.
VIV MEA 3RVWSRQHG AFIA Purchasing & NAMA Spring Conference PIX/AMC
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&XUUHQWO\$XJ6HSW Conference 3UHYLRXVO\0DUFK 3UHYLRXVO\0D\
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Global Grain Asia 3UHYLRXVO\0DUFK IAOM Annual Conference
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Federation International Grain Conference
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GRAINMARKET REVIEW
World rice ending stocks
RICE
(in 1,000 tonnes)
200,000
150,000
Strong demand and tighter supplies have sent rice prices high-
HULQWKH¿UVWPRQWKVRIEXWDVZLWKRWKHUVHFWRUVWKH 0
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20*
FRURQDYLUXV&29,'SDQGHPLFDQGLWVH൵HFWRQFXUUHQF\
values, as well as fears that freight transport could be adverse-
O\D൵HFWHGKDYHVWDUWHGWRKDYHDQLPSDFWLQUHFHQWZHHNV
In its Grain: World Markets and Trade report of March 10, *Projected
Source: US Department of Agriculture
the US Department of Agriculture (USDA) said that since the
Feb. 11 World Agriculture Supply and Demand Estimates re-
port, “Thai 100B quotes once again rose to $451/tonne, re- reached in January, the FAO said.
ÀHFWLQJFRQFHUQVDERXWH[SRUWDEOHVXSSOLHVDPLGGURXJKW´ ³0DUNHW VHQWLPHQW DOVR UHPDLQHG ¿UP LQ WKH $PHULFDV
³9LHWQDPHVH SULFHV VWUHQJWKHQHG WR WRQQH UHÀHFWLQJ consistent with the generally poor outturn of 2019 crops in
harvest delays and strong demand from Southeast Asian buy- the continent,” the FAO said. “With attention turned to on-
ers,” the USDA said. “Meanwhile, Indian quotes were steady going 2020 harvests in the major South American suppliers,
at $363/tonne, while Pakistani quotes strengthened to $381/ currency depreciations kept February quotations in check in
tonne on steady exports to core African markets. US quotes the sub-region. This is while continued interest from Central
have risen to $615/tonne on tightening supplies. Uruguayan American buyers drove prices of US No. 2 4% long-grain to
quotes have remained at $516/tonne as South American har- their highest level since September 2014.”
vests are beginning.” The US Rice Producers Association, in its Rice Advocate
The Food and Agriculture Organization’s Rice Price Update publication for March 19, said that with the coronavirus and
of March 5 showed the UN organization’s Rice Price Index, its resulting market impacts paralyzing the world, the rice in-
which is based on 2002-04 being 100 points, up by 1.4% dur- dustry has remained fairly stable over the past week.
ing February 2020 to an average of 228 points. ³([SRUW ORDGLQJV ZHUH VLJQL¿FDQWO\ VWURQJHU DV ODUJH YRO-
“Higher and lower quality Indica prices drove the monthly umes of rice continue to ship against old sales in a bid to get
increase, raising their respective indices by around 2%, each,” in front of any border closures at this time,” the association
the FAO said. “The Japonica sub-index also edged up by 1.2% said. “The currency and exchange rate basket have confound-
month-on-month, whilst the Aromatic sub-index changed little.” HGH൵RUWVWRSUHFLSLWDWHQHZEXVLQHVVDQGWKHXQFHUWDLQW\VXU-
7KH )$2 VDLG LQWHUQDWLRQDO ULFH SULFHV LQ WKH ¿UVW WZR rounding long-term preventive measures against the virus has
months of 2020 were 2% above the levels in the same period compounded the problem. Nobody is willing to project where
in 2019, with the fragrant market the only segment to sustain the global trade will be in six months, and as a result very little
SULFHGHFOLQHVUHODWLYHWRWKH¿UVWWZRPRQWKVRI long-term trade is being accomplished. For an industry that
“Among the major Asian origins, Indica prices strength- is as dependent on trade as rice, this is not a great scenario.”
ened the most in Vietnam,” the FAO said. “February quota- The association reported an appreciation in Asian bench-
tions of Vietnamese 5% broken rice climbed 4.7% over Janu- mark pricing.
ary values to their highest level since December 2018. Strong “Key origins are beginning to strengthen in price and are
demand from Malaysian and Filipino buyers spurred the in- narrowing the spread with US milled rice,” US Rice said.
crease, coming at a time of tight availabilities as the 2020 win- “This will make the US rice more competitive on the interna-
ter-spring harvest was just getting started. Interest from East tional scene, but the ability to accomplish any of these trades
African buyers also extended the upward streak of Pakistani is hampered by the aforementioned issues.”
R൵HUVLQWRDWKLUGPRQWKZKLOHDVWURQJSDFHRIORFDOJRYHUQ-
ment procurement continued to underpin prices in India.” Chris Lyddon is World Grain’s European correspondent.
In Thailand, a depreciating Baht and buyers’ switch to al- He may be contacted at: chris.lyddon@ntlworld.com.
ternate suppliers exerted some downward pressure on prices,
EXWH[SHFWDWLRQVRIDVOXPSLQR൵VHDVRQRXWSXWSURYLGHGOLWWOH We want to hear from you — Send comments and inquiries to
room for Thai quotations to weaken from the 20-month highs worldgrain@sosland.com. For reprints of WG articles, e-mail reprints@sosland.com.
SOUTH KOREA
Religions: Protestant 19.7%, Buddhist 15.5%,
Catholic 7.9%, none 56.9% (2015 est.) note: many
people also carry on at least some Confucian tradi-
tions and practices.
Country remains highly Location: Eastern Asia, southern half of the Korean
Peninsula bordering the Sea of Japan and the Yellow
dependent on grain imports Sea.
Government: Presidential republic. Chief of state
and head of government: President Jae-in Moon
by Chris Lyddon (since May 10, 2017).
Economy: After emerging from the 1950-53 war
with North Korea, South Korea emerged as one of the
The Republic of Korea (South Korea) is a small-scale producer
20th century’s most remarkable economic success
of grains, except for rice, leaving it highly dependent on im- stories. In the 1960s, GDP per capita was comparable
ports for food as well as animal feed. with levels in the poorest countries in the world. In
In its Grain Market Report from the end of February, the 2004, South Korea’s GDP surpassed 1 trillion dollars.
International Grains Council (IGC) puts South Korea’s total Beginning in the 1960s under President Park Chung-
hee, the government promoted the import of raw
grains imports in 2019-20 at 15.5 million tonnes, unchanged
materials and technology, encouraged saving and
from the previous estimate and up from 13.7 million in 2018- investment over consumption, kept wages low, and
19. Maize imports for 2019-20 are forecast at 11.3 million directed resources to export-oriented industries that
tonnes, unchanged from last month, with 2018-19 imports at remain important to the economy to this day. Growth
9.8 million tonnes. surged under these policies, and frequently reached
double digits in the 1960s and 1970s. Growth gradu-
The total includes 4.1 million tonnes of wheat, also an un-
ally moderated in the 1990s as the economy matured
changed forecast, up from 3.9 million the year before. but remained strong enough to propel South Korea
The IGC also expects South Korea to import 600,000 tonnes into the ranks of the advanced economies of the
of rice in 2019-20, up from an estimate made a month earlier of OECD by 1997. The Asian financial crisis of 1997-98
400,000 and also up on imports of 300,000 in 2018-19. hit South Korea’s companies hard because of their
excessive reliance on short-term borrowing, and
South Korea’s soybean imports are put at 1.5 million tonnes
GDP ultimately plunged by 7% in 1998. South Ko-
in 2019-20, unchanged from the earlier forecast, with the previ- rea tackled difficult economic reforms following the
ous year’s imports at 1.4 million. crisis, including restructuring some chaebols, increas-
,QDQ2FWXSGDWHWKH86'$DWWDFKpVDLGR൶FLDO ing labor market flexibility, and opening up to more
government data released at the end of June put wheat produc- foreign investment and imports. These steps led to a
relatively rapid economic recovery. In 2017, the elec-
tion in 2018 at 25,788 tonnes, based on a yield of 3.91 tonnes
tion of President Moon Jae-in brought a surge in con-
a hectare, down by about 3% from the year be- sumer confidence, in part, because of his successful
fore because of frequent rain during the efforts to increase wages and government spending.
growing season. The government said In 2018 and beyond, South Korea will contend with
at the end of July that the wheat gradually slowing economic growth not uncommon
for advanced economies. This could be partially off-
area for the 2019 crop was 3,736
set by efforts to address challenges arising from its
hectares, triggering a 46% cut rapidly aging population, inflexible labor market, con-
in the USDA’s estimate of tinued dominance of the chaebols, and heavy reliance
the South Korean crop to on exports rather than domestic consumption.
13,000 tonnes. GDP per capita: $39,500 (2017 est.); inflation:
1.9% (2017 est.); unemployment: 3.7% (2017 est.).
“The projected decrease
Currency: South Korean won (KRW): 1,247 won per
in production is due to the 1 US dollar (March 20, 2020).
lack of demand for locally Exports: $577.4 billion (2017 est.): semiconductors,
produced wheat, leading petrochemicals, automobile/auto parts, ships, wire-
farmers to plant less wheat less communication equipment, flat displays, steel,
electronics, plastics, computers.
as they double crop in rice
Imports: $457.5 billion (2017 est.): crude oil/pe-
paddy areas,” the attaché troleum products, semiconductors, natural gas, steel,
VDLG H[SODLQLQJ WKDW R൶FLDO computers, and wireless communication equipment.
production data will not be Agriculture: 2.2% (2017 est.) of GDP and 4.8% of
available until June 2020. the labor force.
Internet: Code: .kr; 44.153 million users.
For maize, the attaché gave a Source: CIA World Factbook
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22 April 2020 / World Grain / www.World-Grain.com
million of wheat to be imported in 2019-20 to be used for PLOOLRQWRQQHV7KHIDOOUHÀHFWHGORZHUDUHDDQG\LHOG
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Chris Lyddon is World Grain’s European correspondent.
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LATEST
TECHNOLOGY
FOR THE FOOD PROCESSING INDUSTRY
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s the coronavirus (COVID-19) pandemic sweeps some of the hardest hit areas of the world, were main-
across the world, every step along the agricul- WDLQLQJRSHUDWLRQVDVEHVWWKH\FRXOGZLWKUHGXFHGVWD൵
ture industry supply chain is stepping up to keep Across the board, the agriculture industry is con-
employees and consumers safe while still providing cerned about logistic issues, whether it’s moving raw
vital equipment, services, commodities, feed and food. materials across closed borders or having enough
The novel coronavirus that initiated in China near healthy employees to keep facilities operational and
the end of 2019 has now spread to nearly 200 coun- products moving.
tries with the number of new cases increasing hourly. Markets have responded to the pandemic with dras-
As World Grain went to press in early April, more than tic swings, most notably in the US S&P and crude oil
800,000 people had tested positive for the virus and prices. The ethanol industry is feeling the pinch as fuel
close to 40,000 had died, while more than 172,000 had usage plummets, causing some production facilities to
recovered, according to Worldometer. temporarily stop production.
In the United States, which has the most cases of in- “So much depends on how long these extreme re-
fection, the agriculture industry was labeled as critical, strictions need to be in place,” said Scott Irwin, a
allowing businesses to continue to operate as usual de- University of Illinois farmdoc economist.
spite current and potential restrictions enacted to stop
the spread of the virus. Major agribusinesses based in LOGISTICS
the United States with global operations said they have While the impacts from the virus are wide ranging, one
increased hygiene procedures and are taking steps to en- of the key concerns globally for the agriculture indus-
sure their facilities continue to operate. try is logistics.
Flour millers globally saw a rapid increase in demand “What if an entire slaughter plant gets infected and
as quarantine and shelter-in-place orders worldwide has to shut down? In addition, is the transportation bot-
SDQLFNHGFRQVXPHUVZKRVWDUWHGVWRFNSLOLQJÀRXUDQG tlenecks,” Irwin said. “We’re already seeing reports of
©Mike Fouque - stock.adobe.com
other grain-based foods. Millers around the world said a slowdown at ports in Argentina and Brazil because
WKH\DUHZRUNLQJRYHUWLPHWRSURGXFHHQRXJKÀRXUEXW of workers there not wanting to work due to infec-
are worried how border closings and quarantine mea- tion fears.”
sures could impact the supply of raw materials. Two major towns in Mato Grosso state in Brazil
Major agribusinesses vowed to keep facilities oper- were ordered to stop shipping grains in order to stop
ating while enacting stricter hygiene and sanitary mea- the spread of the virus. Grain traders, including Cargill,
sures. Equipment and service providers, even those in Louis Dreyfus and COFCO were working on an agree-
Keeping the vari- bound to lead to some shortages and hiccups, said Gary stand that they are all busy, as a result of consumers
ous modes of grain Schnitkey, professor with the University of Illinois’ building stocks in case they have to stay at home: bread
transportation Agricultural and Consumer Economics department. DQGUHWDLOÀRXUVDOHVKDYHLQFUHDVHG´
flowing will be a “Making that big of a switch is going to be some *HUPDQ\¶V ÀRXU PLOOHUV¶ DVVRFLDWLRQ 9*06
challenge during work for those in transportation and food industries,” (Verband der Getreide-, Mühlen- und Stärkewirtschaft)
the pandemic.
KH VDLG ³7KH\ DUH ZRUNLQJ RYHUWLPH 2XU ¿UVW FRQ- moved on March 17 to reassure customers, insisting
cern is around workers and transportation, and keeping there was no need to hoard food. All the companies
those systems running. It seems likely that we’ll get in the grain, milling and starch sectors were working
COVID-19 infected workers in some sort of processing more than usual to meet strong demand, it said. There
plant. How we deal with that is going to be a concern.” ZHUH VX൶FLHQW VXSSOLHV RI UDZ PDWHULDOV DYDLODEOH
Agricultural groups in the United States asked the HYHQ ZLWK WKH H൵HFW RI VWRFNSLOLQJ +RZHYHU WKH DV-
Federal Motor Carrier Safety Administration to grant sociation warned against hoarding too much, too soon,
relief from federal drive time rules for all truck drivers which could mean some consumers facing empty su-
hauling agricultural goods. As trucking capacity and permarket shelves.
driver availability tightens because of COVID-19, surge Nabim has been making its case to the government
nor normal trucking capacity may be adequate to provide of the critical nature of the industry so that it can con-
just-in-time deliveries to animal feeding operations, food WLQXHWRRSHUDWHDWRUFORVHWRFDSDFLW\GHVSLWHVWD൵DE-
processing and manufacturing plants, distribution facili- sence related to illness or quarantine.
ties, export facilities and retail outlets, the groups said. “It is critical that all nations acknowledge the necessity
7KHJURXSVDOVRUHTXHVWHGWKDWWKH)0&6$DGGÀH[- of allowing food production to continue and the impor-
ibility to the process for obtaining new restricted agri- tance of trade in both grain and ancillary materials such as
cultural commercial driver’s licenses, assist in keeping packaging in the manufacture of food,” nabim said.
truck washouts open that are necessary for the sanitary European farm ministers were told during a meeting
transportation of many food products, and provide held by video conferencing on March 25 by the farm-
leadership in harmonizing the temporary increases in ers group Copa-Cogeca that the increase in demand for
truck weight limits that have been announced by sev- ZKHDWSURGXFWVVXFKDVEUHDGÀRXUDQGSDVWDLVD൵HFW-
eral states. ing demand from mills for raw materials.
Reports of problems supplying factories and mills in
FLOUR MILLING France, with processors trying to get supplies as quick-
©monticellllo - stock.adobe.com
95 Commander
28 Boulevard, Toronto, Ontario, Canada M1S 3S9 • (416) 291-5308 • FAX: (416)April
291-0305 • www.lelandindustries.com
2020 / World Grain / www.World-Grain.com
120517_12
We’re looking at some drastic cutbacks in the short run.
If we lose 50% of ethanol for a month, that might be
200 million bushels of corn across the country.
Scott Irwin, economist, University of Illinois
and soybeans from the beginning of the year, Irwin it had suspended corn buying at seven of its 27 bio-
said. In comparison, the S&P is down 30% from an all- fuel plants. When running at full capacity, the company
time high in January and the US crude oil market is purchases 5% of the nation’s corn and produces 2 bil-
down 65%, Irwin said. lion gallons of ethanol.
6WLOOWKHGURSLQFRUQDQGVR\EHDQSULFHVLVDVLJQL¿- The Andersons, Maumee, Ohio, US, also said it was
cant hit for producers’ bottom line. For instance, a drop halting production at its ELEMENT ethanol facility
in corn prices of about 50 cents is a loss of $40 to $50 in Colwich, Kansas, US, for an extended maintenance
per acre in expected revenue. and repair period. It also plans to take spring mainte-
“We were already looking at a poor income outlook nance shutdowns at four facilities owned by its joint
going into 2020,” Irwin said. “This means we have sig- venture with Marathon Petroleum Corp.
QL¿FDQWUHGLQNLQH[SHFWDWLRQV´ The company expects to produce ethanol and its co-
In the short term, the agriculture markets are most products at approximately 50% of capacity in April,
impacted in ethanol. With plummeting gas prices amid with a return to more normal production when demand
a usage drop, the question is how many bushels of corn improves.
won’t be going into ethanol production? Depending Looking ahead to planting of the US 2020 crop,
on how long shelter-in-place and quarantine measures COVID-19 could impact the rate of planting and what
last, Irwin said there could be a 25% to 50% drop in farmers decide to plant. There could be some marginal
ethanol production. movement toward soy, Irwin said, because it has a low
“We’re looking at some drastic cutbacks in the short intensity of inputs, which would be ideal if there were
run,” he said. “If we lose 50% of ethanol for a month, issues in getting things such as fertilizers applied.
that might be 200 million bushels of corn across the “All of the inputs are in place in the US to plant our
country.” crops,” Irwin said. “It’s a question of the logistics. Can
POET, a US ethanol producer, said on March 23 that all the inputs be delivered and applied by the input sup-
Brazil due to government mandated shutdowns and/or re- “They have been an inspiration to the rest of AGI as
gional requirements. we implement many of those same procedures across
The shutdowns are scheduled to last two to three weeks. our business to provide a safe environment for all of our
Interruptions in North America are possible over the com- teams,” Close said. “AGI’s products, services and tech-
ing weeks, AGI said. nologies have been declared an essential service in multi-
Engineering, design and quoting activity is continuing ple states and provinces; recognition of the critical nature
in each of these businesses, which will support resump- of the global food infrastructure that we supply.”
tion of operations. 4B Components, based in Morton, Illinois, US, is ex-
“We are utilizing vacation time, leave, and government empt from the state’s “stay-at-home” order as an essential
programs to mitigate the impact of these short suspen- business supplying products and services to the agricul-
sions,” the company said. “The impact on AGI would be ture industry. The company has implemented limited trav-
more pronounced should the duration extend.” el for all employees to business-critical only and select
The company said the safety of its people is the highest R൶FHHPSOR\HHVZLOOEHZRUNLQJIURPKRPH$FFHVVWR
priority. Tim Close, president and CEO at AGI, acknowl- facilities will be limited to employees and essential ven-
edged its team in northern Italy, which developed the poli- dors only.
cies and procedures to safely operate right up to the recent
We want to hear from you — Send comments and inquiries
mandatory suspension. In one of the hardest hit regions,
to worldgrain@sosland.com. For reprints of WG articles,
the facility did not have one positive COVID-19 case. e-mail reprints@sosland.com.
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The most efficient hygienic process for all feed types. KAHL expanders are available in different versions for all
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SHIPPING MARKETS
IN FLUX AMID
COVID-19 CHAOS
How the disease trends in key importing, exporting countries will be key
by Michael King
I
n time, it is likely we will divide the past into two full as usual. There are just small delays in deliveries be-
periods: before coronavirus and after coronavirus. cause of increased demand. The market was again and
At the start of April 2020, however, it is all about the again shaken by rumors that grain exports from Ukraine
here and now. And, as World Grain goes to press, the might be restricted, but they were free of any administra-
here and now is something of a dystopian nightmare. tive restrictions as of March 25.”
The spread of the coronavirus (COVID-19) initially
shut down huge areas of China through February and SHIPPING SMOOTHLY; FUTURE UNCLEAR
into March, killing thousands and shattering exports, On the high seas, dry bulk shipping freight rates fell ini-
imports and GDP growth. Since then, it has spread tially as China quarantined large parts of the country in
to most corners of the world. Heading into April, the February. However, shipping rates for vessels used in
death toll was pushing 36,000 worldwide, including grain transport (those below Capesize) recovered once
more than 10,000 in Italy, and infections had surpassed China got back on its feet. Exports out of the Black Sea
770,000, including 145,000 in the United States. and Brazil also helped support freight rates for smaller
As economic growth forecasts are downgraded almost EXONFDUULHUVWKURXJKWKH¿UVWWKUHHPRQWKVRI$V
GDLO\LWVHHPVWKDWLIWKHZRUOGVX൵HUV21/<DUHFHVVLRQ a result, the Baltic Dry Index (see chart, page 38) in this
in 2020, we will have cause to be thankful. Most analysts \HDU¶V¿UVWTXDUWHUORRNVVLPLODUWRWKHVDPHSHULRGRI
expect everything to get worse before it gets better. when a season lull dragged down the cost of shipping.
As for the international trade in grains and soybeans, :KDWKDSSHQVQH[WLVGL൶FXOWWRGLVFHUQJLYHQWKHZLGH
well, it is a mixed picture. Physical and future pricing has number of variables in play as a result of COVID-19, not
been highly volatile and currency markets have been in least the longer-term implications for production and con-
YLROHQWÀX[3UHVVXUHVRQSURGXFWLRQDQGVXSSO\FKDLQV sumption. As the International Grains Council’s (IGC)
have been tightening due to social distancing and self- March market report made clear, making forward predic-
isolation measures. And, in many countries, governments tions is fraught with danger and uncertainty.
are prioritizing domestic markets over exports as shop- “While some commodities have seen a sharp upturn in
pers stockpile staple goods and borders are locked down. near-term demand, especially for rice and wheat-based
However, thus far at least, although the nature of de- foods, weakening economic conditions could dampen us-
mand has changed, the physical movement of grains and age in the longer term, particularly for industrial products
soybeans between buyers and sellers has continued rela- such as maize-based ethanol and starch,” the IGC noted.
tively smoothly in terms of logistics and shipping. Mostly “Although import buying of some commodities has accel-
this is because the transportation of commodities has, so erated in recent weeks, logistical challenges are being re-
far, been excluded from COVID-19-related restrictions ported as movement constraints and quarantine measures
©Denys - stock.adobe.com
3,000
2,000
1,000
Baltic Exchange
0
-1,000
Dec 2018
Feb 2019
Dec 2019
Feb 2020
Mar 2019
Mar 2020
May 2018
Nov 2018
Nov 2019
May 2019
Sep 2019
Oct 2018
Oct 2019
Jan 2020
Sep 2018
Jun 2019
Apr 2018
Aug 2018
Apr 2019
Aug 2019
Jan 2019
Jun 2018
Jul 2018
Jul 2019
REGULATORY UNCERTAINTY AND FEAR demanding a suspension of all operations due to virus-
IGC economist Alexander Karavaytsev told World related risks and other personal safety precautions were
Grain the behavior of market participants was increas- also slowing shipments.
ingly volatile. “Personnel and travel constraints have generally slowed
“With an upsurge in domestic demand due to panic the completion of paperwork at ports,” Karavaytsev said.
buying, some exporters are now reportedly considering “Additionally, in Brazil, which heavily relies on road
capping or banning shipments of certain grains/oilseeds, transport to deliver supplies to ports, older truckers report-
although domestic availabilities mostly appear to be ad- edly refuse to work due to risks, while some accept only
equate,” he said, adding that there had been rumors that short trips as road infrastructure closures — cafes, tire
Russia and Vietnam had already curbed sales of rice. VKRSVHWF²PDNHORQJKDXOMRXUQH\VGL൶FXOW,WVKRXOG
Karavaytsev continued: “Fears of export bans prompt be noted that these disruptions are coming at a time when
stockpiling by importers and drive commodity prices up many importers rely on the region for supplies — US and
even though estimates suggest global stocks are ample. At Black Sea grain/oilseed harvests are months ahead.”
the same time, farmers start to hold back supplies in ex- Despite the disruption, Brazil’s soybean dispatches
pectation of higher prices. This has been the case for soy- totaled 5.1 million tonnes in February, only margin-
beans and maize in Argentina, where grower sales have re- ally lower year-on-year, with shipping line-ups in-
ceded despite progressing harvests of both commodities.” dicating March volumes could be the largest ever
Much attention — especially in shipping markets — for that particular month, according to the IGC.
will be focused on Chinese demand and the level of ex-
ports out of South America in the coming months. BLACK SEA SUPPLY CHAINS
“As we enter the Latin American grains export season, In the Black Sea region, thus far exports from Ukraine
long haul soybean shipments from Brazil to China will have continued unabated. Indeed, they accelerated 15%
drive an uptick in Panamax bulker demand,” predicts month-over-month in March as supply chains from
shipping analyst MSI. farm to port continued to function as normal, although
terminals and silos in Ukraine have now imposed quar-
SOUTH AMERICA SEES DISRUPTION antine measures and health checks for employees, and
Understandably then, the temporary disruption to soy- seafarers are prohibited from disembarking vessels.
bean deliveries to ports and crushers in Argentina and “Over March 1-25, their volume included 985,000
Brazil as local authorities blocked movement in some tonnes of wheat, 2.66 million tonnes of corn and 183,000
areas in a bid to stop the spread of COVID-19 during tonnes of barley,” Kharchenko said. “A total 44.7 million
March caused consternation among traders and shippers. tonnes of grains have been exported this season.”
The issue seemed to have been resolved toward the end UkrAgroConsult’s forecast for 2019-20 grain exports
of the month, although port workers in Argentina were from Ukraine remains unchanged at 52 million tonnes,
meaning the export potential of Ukraine for the rest of the VLJQL¿FDQWVOLSSDJHVVKRXOGEHH[SHFWHGWKURXJK
marketing year amounts to 7.3 million tonnes. ³7KH FXUUHQW HFRQRPLF WXUPRLO R൵HUV WKH \DUGV D
“As Ukrainian wheat stocks continue to run out, the chance to re-organize the delivery schedule to help ad-
presence of Ukraine in the world wheat market will dress an emerging problem — the orderbook is heavily
decrease,” Kharchenko said. “Therefore, the share of front-loaded and dry bulk shipbuilding activity in China
Russian wheat, whose 2019-20 exports are 15% behind ZLOOGURSR൵DFOL൵LQXQOHVVWKHVFKHGXOHLVH൵HF-
last year, is to expand. Our forecast for the further pace tively managed,” the analyst said.
of Russian wheat exports is optimistic: the crude oil In terms of dry bulk demand, the rate of infections re-
price decline is pressuring the ruble, consequently push- porteldy slowing in China and government policies de-
LQJ XS GRPHVWLF SULFHV 7KHUHIRUH LW PDNHV ¿QDQFLDO signed to boost economic activity are positives although
sense for Russian farmers to accelerate grain sales in the WKLVLVEHLQJR൵VHWE\ORFNGRZQVHOVHZKHUH*UDLQLVVHW
near term. As of today (March 27), the Russian govern- to be a major contributor to bulk carrier demand if supply
ment has imposed no export restrictions either.” chains are kept open.
“The shutdowns have (so far) not resulted in major
US-CHINA TRADE disruptions to supply chains, while the existing issues are
The phase one trade deal between the United States and seemingly being resolved,” Karavaytsev said. “However,
China earlier this year was supposed to support higher the overall uncertainty surrounding the duration and se-
US exports of soybeans and other agricultural products as verity of the pandemic has seen both exporters and im-
China ramped up its purchases. However, that trend has SRUWHUV IRFXV RQ QDWLRQDO IRRG VHFXULW\:KLOH WKLV PD\
not materialized. limit exports from some countries in the short term, a
³(DUOLHULQWKHFXUUHQWPRQWK0DUFKWDUL൵ZDLYHUV higher level of stocks in importing countries as a precau-
were issued to Chinese processors for the purchase of tion may become a new normal after the pandemic.”
US supplies, but still — aside from reports that some Karavaytsev predicted that new layers of bureaucracy
cargoes were taken recently for April shipment from the and additional safety and quarantine procedures also will
3DFL¿F1RUWK:HVWWRQQHVZDVUHSRUWHGKHDY\ continue to impede grain logistics in the coming months.
volumes have not been secured,” said Darren Cooper, “Apart from a slowdown in paperwork, delivery peri-
HFRQRPLVWDWWKH,*&³:HVDZELJSXUFKDVHVE\&KLQD ods tend to be increasing due to quarantine measures at
through to mid-December as trade negotiations with the ports,” he added. “Many countries have introduced addi-
US progressed, but there has been very little since.” tional screening and mandatory 14-day quarantine rules
Outstanding sales on the US book are especially small for vessels coming from certain countries. This may in-
DQG LW ZRXOG QHHG D VLJQL¿FDQW UDPSLQJ XS RI H[SRUW crease the cost of shipment in some cases because of more
VDOHVLQWKHFRPLQJPRQWKVIRUWKHR൶FLDOIRUHFDVWRID time charter-chargeable days.”
small year-on-year increase in US total shipments to be MSI expects shipping costs over the next six months
achieved, said Cooper. to be determined by whether the pace of daily infections
“Almost certainly given the volumes we are talking in China continues to decline, and whether commod-
about, this would require large purchases by China,” he LW\ SURGXFHUV LQ NH\ H[SRUWLQJ FRXQWULHV VXFK DV %UD]LO
added. “However, as things stand, even with the removal and Australia continue to escape the worst ravages of
RIWDUL൵VDVSHUWKHZDLYHU%UD]LOLDQVXSSOLHVDUHVWLOOYHU\ COVID-19. If these conditions prevail, MSI expects a
FRPSHWLWLYHJLYHQWKDWDIDLUO\ELJFURSLV¿OOLQJPDUNHWLQJ government-led stimulus in China to prevent the collapse
channels and the weakness of the exchange rate.” of bulk carrier pricing.
W
hile trade opportunities exist for Canadian ag- economy, said Ailish Campbell, chief trade commis-
riculture and agri-food products, the predict- sioner of Canada and assistant deputy minister, Global
DELOLW\RIWKHSDVWLVJRQHDVQRQWDUL൵EDUULHUV $൵DLUV&DQDGD7KHJRYHUQPHQWKDVVHWWKHDPELWLRXV
persist, market uncertainty grows and consumer prefer- target of growing agri-food exports to $75 billion by
ences shift. 2025.
The nation is well placed for expanding its exports, “Trade continues to be essential even as it presents
but it faces an unpredictable global market, said speak- challenges for all of us,” she said. “The sector faces
ers at the Canadian Crops Convention this March in market challenges around the world. Market access is-
Vancouver, British Columbia, Canada. This was the sues are always top of mind for me and my team. Key
second year the Canola Council of Canada and Canada QRQWDUL൵EDUULHUVDUHDVLPSRUWDQWWRDGGUHVVDVWDUL൵V´
Grains Council (CGC) joined forces for the event, In recent years, Canada has been bombarded with
which focused on “Charting the Course.” market access issues for oilseeds in China, pulses in
“There’s going to be more disruptions, the markets India and grains in the EU.
are going to change,” said Fred Gorrell, assistant depu- ³)UHHWUDGHDJUHHPHQWVDUHNLFNLQJLQDQGWDUL൵VDUH
ty minister, Agriculture and Agri-Food Canada (AAFC) going down as we speak,” said Gord Kurbis, vice presi-
©Everyone - stock.adobe.com
and Canadian Food Inspection Agency (CFIA). “The dent of trade policy and crop protection at the CGC.
business climate is very much uncertain but at the same ³7KH QRQWDUL൵ EDUULHUV DUH JRLQJ XS LQ ORFN VWHS ,
time our reputation and our products are very good. We don’t remember a time before when we’ve seen a major
need to up our game a little bit. We have a great op- QRQWDUL൵EDUULHUKLWHDFKPDMRUFURSDWWKHVDPHWLPH´
portunity, but I think people have to be aware that the
world we’re working in is not the same as in the past.” OPPORTUNITIES, CHALLENGES
&DQDGDLVWKHZRUOG¶V¿IWKODUJHVWDJULIRRGH[SRUWHU It’s obvious that there has been a rise in protectionism
importer, and trade forms the backbone of the nation’s and trade tensions between certain countries, notably
Canada is falling behind our trading partners, where CGC over the past few years, to try to bring greater
there are clearer rules about the pre-market regulatory clarity and predictability.”
environment for these products.” The CGC has worked with the government to devel-
For example, the United States has had closed-loop op some options for better guidance about when exact-
production of high oleic soybeans derived through ly new plant varieties require pre-market approval and
gene editing for the last three years. what that looks like. Thomas said she hopes that work
“We aren’t seeing opportunities like this in Canada, will soon be made available for a wider consultation.
in part due to the shadow cast by the uncertainty of our The international landscape is important as well,
regulatory environment for novel feed, food and plants so the CGC also is looking at how the global regu-
with novel traits,” she said. “This has been a focus for latory environment is changing and trying to influ-
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aggrowth.com | sales@aggrowth.com
www.World-Grain.com / World Grain / April 2020 Global, Trusted and Growing.
49
I went to Uzwil (Bühler’s headquarters) and we looked
at what was possible with today’s technology to
produce the desired product.
Albert Biemer, Biemer Mühle
“It is very rare that we go farther outside that radius,” Bologna,” he said. “The big cities there are the focal
he said. “Only if we don’t get the quality we need in the point of the wholesalers.”
area do we have to buy outside of there.” Albert Biemer appreciates the direct contact with his
Biemer Mühle’s wheat storage capacity is around small Asian shopkeepers in Germany, which is why
2,000 tonnes. KH VWLOO OLNHV WR GHOLYHU WKH FKDSDWL ÀRXU WR PDQ\ RI
³:HGRQ¶WDFWXDOO\KDYHYHU\ODUJHÀRXUVWRUDJHEXW them personally.
WKDW¶VQRWDSUREOHPEHFDXVHWKHÀRXUZHSURGXFHDO- Biemer Mühle also is targeting a growing market of
ways goes out quickly,” Albert Biemer said. “We have refugees from Afghanistan and other Islamic countries
ÀRXUVWRUDJHVKHUHIURPDERXWWRQQHVWRDERXW who have migrated to Europe.
WRQQHV7KHFKDSDWLÀRXULVDOOSDFNDJHGLQ “We want to take care of these people,” Albert Biemer
and 25-kilogram bags.” said. “We want to take care of people from countries
The packaging takes place automatically via a fully like Afghanistan, India, Pakistan and Sri Lanka. That
automated packaging station with a palletizing robot, is our goal.
he said. “I think we have the best product on the market in
(XURSHLQWKLVVHJPHQW,WKLQNZHPDNHWKHEHVWÀRXU
SERVING THE REFUGEE POPULATION for chapati bread.”
Biemer Mühle is currently exporting about 28% of its
production volume, mostly to European cities. We want to hear from you — Send comments and inquiries
³0RVW RI RXU ÀRXU JRHV WR WKH ELJ FLWLHV VXFK DV to worldgrain@sosland.com. For reprints of WG articles,
e-mail reprints@sosland.com.
Berlin, Hamburg, Warsaw, Copenhagen, Paris and
N
on-food use of grains is up this year, with ethanol recent quarantining of millions of residents in their homes
production surging on demand for fuel and other in a number of states in an attempt to contain the corona-
products. Replacing products based on mineral oil YLUXV&29,'SDQGHPLFLVUHVXOWLQJLQVLJQL¿FDQWO\
remains a valuable way to make production more sustain- less demand for gasoline in the United States.
able and reduce emissions.
Industrial use of grains for ethanol is set to rise to 372.1 GRAIN-BASED HAND SANITIZER
million tonnes in 2019-20, up from 365.9 million in 2018- One use of ethanol produced from grain has become much
19, according to the International Grains Council (IGC). more important because of the COVID-19 pandemic. The
,Q D 4XDUWHUO\ 8SGDWH WKH ,*& UDLVHG LWV ¿JXUH IRU WKH 86&RUQ5H¿QHUV$VVRFLDWLRQPRYHGWRR൵HUUHDVVXUDQFH
current year by around 2 million tonnes, mainly because in a March 19 statement.
of strong growth in the use of maize for ethanol in Brazil. ³$PHULFD¶V FRUQ UH¿QHUV DUH SURGXFLQJ WUDLQORDGV RI
World use of grain for ethanol is forecast at 192.8 mil- industrial alcohol on a daily basis,” said John Bode, presi-
lion tonnes in 2019-20, of which 173 million is for fuel. GHQWDQGFKLHIH[HFXWLYHR൶FHURIWKH&5$³7KHUHKDV
7KHSUHYLRXV\HDU¶V¿JXUHZDVPLOOLRQWRQQHVZLWK been no shortfall in meeting alcohol orders for production
169.3 million for fuel. of hand sanitizers or other health-related sanitizing prod-
The IGC said the United States remains by far the larg- ucts. The distribution system is quickly catching up with
est processor of grain for ethanol, at 139.5 million tonnes the surge in demand for these products.”
LQDOWKRXJKWKH¿JXUHLVEURDGO\XQFKDQJHGIURP Bode called on consumers to avoid hoarding and lo-
the previous year. The IGC quoted the US Renewable cal and state governments to “ensure that their well-in-
Fuels Association as saying that the approval of E15 tentioned policies not limit work of critical infrastructure
gasoline for year-round use led to record sales in 2019. personnel in the production and distribution of health and
©Metthapaul - stock.adobe.com
It also points out that exports have become increasingly food products.”
important for the US industry, although they dropped in According to the association, “toiletries and cosmetics,
2019, with trade between January and November down which include hand sanitizer, account for almost a quarter
around 15% from the same period a year earlier, because of US end markets for industrial alcohol.”
of reduced volume shipped to Brazil and China. In the United Kingdom, Scotch whisky distilleries have
Whether the IGC’s 2019-20 ethanol production and moved to supply sanitizer. Jamie Stone, Liberal Democrat
consumption forecast is realized remains to be seen as the Member of Parliament for Caithness, Sutherland and
Corn-based Easter Ross, the northernmost constituency in the main- “It’s going to be interesting to see if they raise ambi-
ethanol use in land of Britain, lobbied the tax authorities to allow the pro-
tions for emissions reduction and renewables, how they’re
Brazil is on duction of hand sanitizer to the World Health Organization going to handle the cap on certain biofuels,” he said. “If
the rise. formula, following a request from Phil Thompson, owner they need things that are going to deliver immediate emis-
of Dornoch Distillery. sions reduction, they might have to lift that cap. There
“What the distilleries have achieved in my constituency are also targets for second-generation biofuels, which are
shows that if you don’t ask, you don’t get,” Stone said. from agricultural waste.”
³7KH\SXWWKHLUFRPPXQLW\¿UVWDQGLQVXFFHVVIXOO\ORE- Cellulosic ethanol is happening, but on a small scale.
bying HMRC with me, we have made it easier to produce “It will be interesting to see whether there will be the
hand sanitizer safely, cheaply and quickly. I hope distill- uptake necessary to meet the targets for that under the
eries across the UK follow suit and help make hand sani- Renewable Energy Directive,” he said. “At the moment
tizer available to those who need it.” it’s very small. There are producers in Europe who are
GRLQJLWEXWLW¶VWLQ\FRPSDUHGWRWKH¿UVWJHQHUDWLRQ:H
GREEN DEAL IMPACT have producers of both in our membership, so we don’t
Craig Winneker, director of communications at ePURE, favor one or the other. We’re just trying to dispel the no-
the Brussels, Belgium-based organization that represents WLRQWKDWDOO¿UVWJHQHUDWLRQELRIXHOVDUHEDG
the interests of European renewable ethanol producers, “In the case of European ethanol, it actually meets the
told World Grain that the sector produces animal feed, sustainability criteria set up by the EU. Among our mem-
captures carbon dioxide as well as ethanol, which goes bers, the average greenhouse gas reduction compared to
mostly for fuel, but also for industrial and beverage uses. fossil is 71% and getting better every year. Some produc-
It is not yet clear where ethanol and other non-food uses ers are even higher than that.”
RIJUDLQ¿WLQZLWKWKH(XURSHDQ*UHHQ'HDOWKH(XURSHDQ With the EU talking about more ambitious targets for
Commission’s new plan to make the continent sustainable. emissions reduction, ePure was making the point that
“That’s what we’re waiting to see,” Winneker said. “you’re going to need all these tools.”
³8QGHUWKH*UHHQ'HDOWKH\¶UHJRLQJWREHUHYLVLWLQJWKH “You can’t just rely on advanced second-generation
OHJLVODWLRQRQUHQHZDEOHVLQDORWRIGL൵HUHQWDUHDV´ cellulosic ethanol,” Winneker said. “We’re going to need
He explained that EU renewable energy policy for ¿UVWDQGVHFRQGDQGLQPDQ\FDVHVLW¶VREYLRXVWKH\ZRUN
2020-30 allows the use of ethanol for transport, but the together because you have residues coming from crops
©Maridav - stock.adobe.com
ASIAN
SUPPLIER PROFILES
This special advertising section is devoted to grain and milling technology offered by Asian-based suppliers to the international market. Use this index to find the
company profiles that discuss service range, product technologies and research and production developments for each Asian-based advertiser in this issue.
Zhengzhou Golden Grain equipment Engi- America, South America and Africa. Flour mill engi-
neering Co. Ltd (GG) provides integrated solutions neering, with typical plant capacities ranging from 80
for grain processing sectors, especially flour milling. to 600 tpd, have been favored due to its capability to
The comprehensive solutions include designing, produce more competitive finished products, thanks
equipment, electrical control system, installation, to GG‘s design and equipment performance. Golden
commissioning, training and after-sales services. Grain said it is devoted to being a company that is
With decades of engineering experience, Golden close to its customers, providing tailormade solutions
Zhengzhou Golden Grain Grain has completed more than 500 projects in Chi- for each of them, supplying more added value and
Equipment Engineering Co., Ltd. na and dozens of projects in Malaysia, Thailand, In- promoting their competitiveness.
Guodian Industrial Park donesia, Vietnam, Myanmar, the Philippines, Central
Xinzheng city, Henan Province, China
Tel: +86 371 68631358
Fax: 86 371 68631328
E-mail: info@g-grain.com
Internet: www.g-grain.com
Satake released REACH 3.0 in addition to existing is two weeks compared to the usual three to four
REACH 7.0. The product lineup consists of semi-as- months. For regions where they experience two to
sembled rice processing plants in different process- three harvest times annually, this will allow rice mill
ing capacities. Its sales promotion began targeting owners to start up a production line before the next
small- and middle-size processors in Southeast Asia harvest season.
and Africa. The REACH product line comprises a 3- and 7-tph
The REACH product is a semi-assembled rice rice mill, which is best suited for small- and medium-
Satake milling plant incorporating receiving, pre-cleaning, size rice milling facilities.
2-30, Saijo Nishihonmachi, Higashi-hiroshima-shi, husking, milling, optical sorting, and packing stage
739-8602 Japan equipment. It can be customized upon request. It
Tel: +81-82-420-8539 is designed to maximize the installation efficiency
versus cost performance by utilizing components
Fax: +81-82-420-0865
manufactured in Satake’s Thailand production facility.
Email: international@satake-japan.co.jp
Satake offers a complete plant so there’s no need to
Internet: www.satake-reach.com
consult multiple vendors. As a result, installation time
Billions of people come into contact with Bühler machinery. Our motto is creating ‘innovations for a
technologies to cover their basic needs for food and better world.”
mobility every day. Two billion people each day enjoy
foods produced on Bühler equipment; and 1 billion
people travel in vehicles manufactured with parts
produced with its machinery. Countless people wear
eye glasses, use smart phones, and read newspapers
Bühler and magazines, all of which depend on Bühler pro-
Wuxi, China cess technologies and solutions. Having this global
Tel: +86 510 8528 2888 relevance, the company is in a unique position to turn
Fax: +86 510 8528 2889 today’s global challenges into sustainable business.
“We want every human being to have access
E-mail: buhler.china@buhlergroup.com
to healthy food. We want to do our part to protect
Internet: www.buhlergroup.com
the climate with energy-efficient cars, buildings, and
Hebei Pingle Flour Machinery Group Co., Ltd. is ing equipment, flour milling machines, flour pro-
a Chinese manufacturer committed to the devel- cessing equipment, maize processing equipment
opment, production, distribution, installation and and conveying equipment.
testing of flour milling machines. Its main products Turnkey flour milling plants are available ranging
include roller mills, square plansifters, purifiers, from 100 to 1,000 tonnes. The market for Pingle flour
multi-story flour milling plants and steel struc- machinery covers almost all the main wheat planting
ture flour milling plants. The company can provide areas in China, and products also have been exported
Hebei Pingle Flour Machinery stand-alone machines in the 9- to 1,000-tonne to more than 32 countries, including Egypt, India,
Group Co., Ltd. range that include grain pre-cleaners, grain clean- Ethiopia, Brazil and Australia.
Zhengding, Shijiazhuang, Hebei, China
Tel: +86-311-88268111
Fax: +86-311-88268777
E-mail: pingle@pingle.cn
Internet: http://en.pingle.cn/
Kay Jay Chill Rolls Pvt Ltd has supplied rolls for
• Shorter rest period of roller mills.
various industries since 1979, with German technol-
• Uniform product quality.
ogy. Its German partners have more than 200 years
of experience in roll manufacturing. All the machin- Kay Jay’s roll grinding and fluting machines have
ery, equipment and raw materials are imported from a complete cast iron machine bed, which is better
Germany to manufacture the rolls in India. The com- than steel because it offers more strength, stability
pany’s research and development in Germany has and quality. The company also has introduced new
Kay Jay Chill Rolls Pvt Ltd developed the OCE 630 rolls for break passages. software and hardware on its roll grinding and flut-
Advantages include: ing machines to make them faster, more reliable
27 Industrial Area Phase – 2
• Up to 50% longer life of flutes, hence less main- and accurate.
Panchkula – 134113, India
tenance costs. It also is offering a new design sand blasting ma-
Tel: +91 987 800 0859
• Reduction of energy costs up to 9%. chine or frosting machine for uniform surface of the
Fax: +91 172 256 8156
• Better hardness along with toughness and wear smooth rolls. Kay Jay is supplying some general spare
E-mail: sales@kjrolls.com
resistance of rolls. parts for the mills.
Internet: www.kjrolls.com
• Better and efficient cracking behavior.
Grain dryers
Suncue Company Ltd., established in 1966, bodia, Philippines, India, Indonesia, Vietnam, and
is one of the largest manufacturers of circulating other Asian, European and Latin American countries.
grain dryers and biomass furnaces. Its main office Its product line includes ventilating and circu-
is in Taiwan. lating type grain dryers, biomass furnaces, grain
For more than 50 years, Suncue has exported to cleaners, grain moisture meters, and other periph-
more than 50 countries, including Japan, Korea, Cam- eral equipment.
Suncue Company Ltd.
No. 396, Minsheng Rd., Wufeng Dist.
Taichung City 413, Taiwan (R.O.C.)
Tel: 886-4-2339-7171
Fax: 886-4-2330-2939
E-mail: sales@suncue.com
Internet: www.suncue.com
ON NEWS,
companies are doing to
address universal challenges.
A
J G JAG Services, Inc.
"Training, Service, Process Management Programs, Consulting"
J G s
s
Without chemical treatment
SPL-200 laser level sensor KUB reusable rupture disc In-line flow meter
Mount and power level sensors on silos with- REMBE’s KUB reusable rupture disc uses a Henry Simon’s In-line Flow Meter (HSIFM) is
out the complexity or the expense of wiring leak-tight, metal-on-metal seal that allows the a device that is used to recognize any change
with BinMaster’s SPL-200 battery-powered rupture disc to be reinstalled after inspection. of material and machine conditions in milling
laser. The SPL-200 measures solids in silos up Installation is simple and quick, requiring no processes. The device is used for monitoring
to 98 feet tall in low or no-dust environments. special tools. Longer service life of the rupture the flow rate of material in spouting, and de-
This single point laser allows use of level sen- disc reduces the costs associated with produc- tecting any fluctuation due to clogging, leak-
sors on silos or in remote locations where in- tion downtime, maintenance and replacement ing, etc or machine operating conditions. Nu-
ventory monitoring has not been feasible. It discs. It is an ideal solution for industrial pro- merous devices can be used together in order
can be programmed to take interval readings cesses with low to high operating pressures to collect and analyze the data from different
from once an hour to once a day. The laser uses or vacuum. The KUB has a two-layer design: a places in the mill.
an integrated wireless LoRa long range trans- smooth surface of the sealing membrane that
ceiver to send data to a gateway that connects faces the process and the buckling pin ele-
via cellular or ethernet to the BinView web ap- ment, which defines the burst pressure, faces
plication or Binventory LAN-based software for away from the process so it does not come into
data access from a PC, smartphone, or tablet. contact with the medium.
AGI ...........................................................2, 49 Golden Grain Equipment Co. Ltd .................53 Pozitif Fuarcilik A.S. .....................................51
www.aggrowth.com www.g-grain.com www.milltechistanbul.com
Bühler AG .....................................................72
www.buhlergroup.com Highquest Partners LLC ...............................45 Suncue Co Ltd. .............................................37
www.ongforum.com www.suncue.com
Denis ............................................................13
www.denis.fr JAG Services Inc. ..........................................67 Vigan Engineering S.A. ..................................4
www.vigan.com
More information about these advertisers can be found on www.World-Grain.com. Go to the Buyer’s Guide, then search by company name and click
on “go.” This will bring up contact details for that company, including active links to its email address and company web site. Clicking on the company’s
“Products & Services” link will take you to a list of the company’s products and also includes a description of the company’s services and activities.
on the web This index of advertisers is provided as a service to readers. The publisher does not assume any liability for errors or omissions.
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