Global Feed Markets - November | December 2009

Digital Re-print - November | December 2009 Feature title: Global feed markets

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 2009 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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COMMODITIES

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 influence your decision-making.

For maize and other coarse grains, the key restraint is slack US demand from the livestock sector, partly down to weaker meat export trade, partly due to the recession within the US itself. World import demand for maize has fallen right off at the higher prices, with buyers waiting for the full harvest flush to bring better bargains – or switching to still abundant and relatively cheap feed wheat.

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US feed harvests in race against weather

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FTER nail-biting delays to sowing in the late spring and early summer, the allimportant US feedgrain and soyabean crops were blessed with mostly favourable weather in August and September, even avoiding the hard, damaging frosts that often occur in October. Crop analysts began to prepare for record yields and output, some even talking of a possible supply glut which, at a time of lackluster demand from US and overseas livestock industries, might have pushed down prices of inputs across the feed sector. But in October, that incredible run of luck finally began to run out as the heavens opened and some of the major states found ripening harvests sitting under some of the wettest conditions on record for this time of year. Fortunately for consumers, crops so far have weathered the ‘Monsoon’ autumn remarkably well – possibly because the late start to sowing

had also put maturity in many of the affected areas at a record slow pace – so many crops were well off ‘harvest-ready’. Nonetheless, as this issue goes to press with less than half the soya crop gathered and three quarters of maize still in the field, the ultimate size and quality of the 2009 US feed crops still hangs in the balance. The US ‘weather market’ has had a dramatic effect on prices across the global grain and feed sector in the past month, hauling them up from the September lows – even dragging wheat value higher in the face of huge – and still growing supplies. The strength has spilled into European markets where farmers and their customers had been in a standoff for weeks amid differing views on grain value. However, this is no runaway bull market yet, not least because consumers are not yet chasing it up. For maize and other coarse grains, the key restraint is slack US demand from the livestock sector, partly down to weaker meat export trade, partly due to the recession within the US itself. World import demand for maize has fallen right off at the higher prices, with buyers waiting for the full harvest flush to bring better bargains – or switching to still abundant and relatively cheap feed wheat. Against that, the still relatively cheap price of maize and the rally in crude oil prices over the late summer months does now seem to be breathing fresh life into the ailing US

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corn ethanol industry, already tipped to take an extra 12.7m tonnes this season. Strong ethanol demand that could help push up the cost of maize is not welcomed by the main outlets in the feed sector. However, it will at least increase supplies of by-products, dried distillers’ grains, for the more traditional users. For soya the main anchor on prices is t h e p ro s p e c t of record Latin American crops, already being sown this autumn at a fast pace which, if the weather cooperates, could land an extra 30m tonnes on the market early next year. Who will take all the extra meal? China may be a voracious soya buyer but demand will need to pick up in Europe, Asia, Latin America and the US itself to prevent prices easing into first half 2010. Wheat, which relies on feed demand for about a sixth of its global consumption has been forced to follow the firmer price trend inspired by US weather threats to maize and soya. Prices at the top end of the milling wheat market are also being pushed up by less than stellar quality from much of this year’s North American hard winter and spring harvests, often carried out under damp conditions, by the collapse of Argentina’s breadwheat exports. Much of the export demand for wheat, especially in the US market, is also tending to focus on the hard and better quality wheats, helping to push prices up and widen quality premiums. That said, fundamentals offer no real support

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to the soft wheats that make up the largest share of world production. These are once again in huge supply – in the US, the EU and the former Soviet countries. Prices of feed and milling grains have also remained under the strong influence of ‘outside’ markets during the last quarter during which a constant barrage of conflicting economic news has driven equity and commodity markets both ways. A pivotal factor has been the weak dollar, running at its lowest level against other major currencies for well over a year and along with still relatively cheap freight rates offering consumers in most of the big wheat and feedgrain consumer countries a good deal at these prices. For the ‘macro markets’, the big question is whether US currency weakness (which could paradoxically increase as the US/ world economy recovers) and the huge US, European and Chinese fiscal spending programmes of recent months will ultimately translate into hyper-inflation down the road. Banks and investment houses are constantly touting this theme, many betting on higher

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prices of grains and other key commodities in later 2010/early 2011. They have the funds and the muscle to help bring about these prophecies themselves but not to hold markets up indefinitely if the supply/ demand fundamentals turn against them. Early pointers to supply for 2010 suggest world wheat area will – as we’ve indicated in recent issues - decline in the face of low prices. Maize sowings might lose out further to soyabeans, in the US and South America, as the price ratio between the two remains wider than usual. However, for the Northern Hemisphere producers, many of these potential shifts will not be decided until second quarter 2010, when sowing weather will be just as important as grain/oilseed price ratios in deciding wheat farmers grow.

Maize – will US harvest avoid a washout? The US grows over 40% of the world’s maize and accounts for 60-70% of exports, making up the largest component of global feed trade. Clearly, the size of the US crop is key to feed costs around the globe. Markets were reminded of that in October when incessant wet weather and delayed crop maturity kept farmers from harvesting what could have been the biggest US crop ever. Early in the month, many analysts felt USDA was under-estimating this at just under 2007’s record 331m tonnes. By end-October, however, estimates were starting to slide toward 325m or less. Wet crops, lack of

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COMMODITIES

drying facilities and ever-present threats of autumn freezes also raised questions about how much of the crop would grade adequate quality. With many analysts predicting the harvest, instead of wrapping up in October, will run well into November, possibly even the New Year in Northern states, an accurate picture of size and quality is clearly some way off. However, assuming that some promised drier weather in coming month does allow the bulk of harvest to complete, the US should be able to meet all the currently estimated domestic (276m) and export demand (54.5m tonnes) without dipping into the reasonably comfortable surplus stocks it carried into 2009/10 on September 1. Forward futures prices for maize point ‘North’ with a premium of about 40/45c/ bushel – about $17.50/tonne anticipating a slightly tighter market by latter 2010. Whether that happens depends also on how much maize the US plants next spring. Although the ethanol juggernaut is slowing down (compulsory requirements for the US fuel industry to use renewables will expand far more slowly from next season onward), feed demand might be expected to pick up from two flat years if the recession really is coming to an end – so more maize will be needed for 2010/11. Europe’s maize crop has, as expected earlier, taken a dip this season. Planted area was down by about 3% but yields fell by a much larger 7%, knocking about 5m tonnes off production at just under 58m. This should not, by itself, put too much upward pressure on prices as demand for maize in Europe is also seen down by about 4m tonnes while about 7m tonnes of stocks were carried in from 2008/09 compared with only 4.5m the previous year. Support is coming from the global maize market, however, driven in turn by the events

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in the USA. As we go to press, US No 3 yellow corn for export is quoting over $187/tonne compared with $150 in September but this is not a bad price compared with almost $195 earlier in the year and over $300 at the start of last year. Buyers are also getting a bonus from the weaker dollar which has knocked about 15% off the real cost for many importing countries in the past year – and from cheaper ocean freight rates over that period (although these appear to be hardening up in late October). Maize prices may also draw support from the lack of competition on world export markets this year. Argentina – the normal No 2 supplier – is facing its second poor crop in a row (harvested early 2010) and will cut exports accordingly. That is offset somewhat by continuing improvements in exports from Brazil where larger crops have been grown in recent years and stocks have built up enough to expand exports if needed in the year ahead. Brazil tends to discount the US price too. However, less competition will be coming from former Soviet countries, where crops are smaller. China, of ten a big ger export supplier than Argentina in the past, has seen drought trim about 10m tonnes of its crop this year and with growing domestic feed demand already taking up all the slack, is unlikely to figure much in exports this season. While exports may be down from other maize suppliers, the US still faces potentially stiff competition from feed wheat of which there is still a lot available on the world market – in CIS countries, Europe and North America.

World import demand for maize has slackened off in October, helping to keep prices under control. This probably reflects buyers waiting for the US harvest picture to clear and, hopefully, prices to fall.

WHEAT – volatile prices but ... ... world crop keeps growing A large and growing supply surplus of on the world market has not prevented the value of wheat fluctuating over a wide range during the past two months. Traders blame several factors, most emanating from the influential Chicago soft red winter wheat futures market where ‘outside’ investors – mainly speculative funds – had sold the market heavily short, anticipating prices would keep dropping. As analysts began to see a bottom, even a potential bounce, some warned the selling had been overdone and the market began to anticipate heavy ‘short-covering’ by the funds to protect their exposure. This didn’t happen immediately, because of the sheer weight of supply from the recently harvested and approaching Northern Hemisphere wheat crops that make up the bulk of world wheat output – underlined by still growing estimates of final production from bodies like the International Grains Council and the US

Department of Agriculture. The funds and other short sellers also needed a catalyst to encourage a change from selling the buying. That eventually came from two factors. The over-riding influence was a slumping US dollar, raising the face value of grain exports and, paradoxically, providing evidence that the US economy was finally starting to come out of recession – a potentuial stimulus for

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consumer demand across the US and global grain and feed sector. The second factor was the record late US maize and soyabean harvest, threatening to raise the inherent value of these crops and, with them, wheat too. Allied to that, US farmers’ inability to get maize and soya crops out of the field was also holding up the sowing of winter wheat crops to be harvested next year on the same land, pointing to a likely shrinkage in area sown for these, especially the soft red types the form the basis for Chicago futures and, of course, make up the bulk of Europe’s wheat crop. However, while these factors did briefly drive the wheat price up by almost $20 a tonne in just one week of late October, the excitement appeared to be over by early November as fresh economic jitters surfaced, analysts downplayed the effect of a smaller US SRW crop and world production

estimates continued to edge higher. Among these there have been some exceptions, not least in Europe itself where the IGC has just cut its crop estimate by 2.4m to 136.6m tonnes (versus last year’s 151.2m), including 128.4m. (141.2m.) of soft wheat, following revisions for France, Germany, Romania, Spain and the UK. The good news is that this is still a big crop by any measure and the proportion of milling quality will be similar to last year’s at about 70%. Looking at the main players, Germany expects 25.1m tonnes (26.0m) with protein content slightly lower than last year but Hagberg values higher. France should produce 38.8m (39.5m.) with about 90% milling quality but proteins averaging 11.3% - slightly lower than last year as well as the five-year average of 11.9%. In the UK itself, lower area and lower yields caused a sharper fall in production to 14m from last year’s 17.3m tonnes. The IGC

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also notes that exceptionally good quality is reported in the Baltic States, with as much as 95% graded milling wheat in Lithuania. Further east, Russia, ideal weather aided the completion of the spring wheat harvest in Siberia with the total crop raised seen at 60m tonnes – just 3.7m tonnes short of last year’s bumper 63.7m output after higher than expected yields in Central regions/ Urals offset reductions in southern areas. Ukraine’s crop is estimated at 20m – about 5.9m less than last year but still way bigger than the average of recent years. Harvest was also completed under favourable weather in Kazakhstan where the crop forecast was raised to 14.5m compared with last year’s 13m. For the former Soviet Union as a whole, the harvest is expected to be around 8m less than last year. Bearing in mind that these countries have carried about 19m tonnes of stocks into the new season – almost double last year’s level, it seems clear that these prominent exporters will have plenty to sell to the world market. In recent weeks, prices coming out of these ‘Black Sea’ wheat exporters have been firmer than one might expect amid good harvests, narrowing the frequently large discounts that they tend to offer against EU and other mainly soft wheats. Although these countries normally tended to ‘front load’ their export sales campaigns, they are probably being a little less aggressive at this stage because of the unusually low world wheat price and because of one or two weather risks looming for next year’s crops, (chiefly dryness at sowing time in parts of Russia and Ukraine). However, even without the big discounts, Russia and Ukraine have still taken a lot of the ‘opportunity’ business going to countries like Egypt and other Near East/North African buyers, helping to keep world export values of wheat down. If their crops go in normally and avoid a severe winter, we can probably expect more competition from the east in world export markets, particularly those most heavily contested by Europe, the US,

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Canada and Australia in North Africa, the Middle East and further afield. Among the other major wheat suppliers, Canada has experienced some problems with below-normal temperatures, rain and snow delaying the last 10% or so of its spring wheat harvest, the slowest pace in five years. Yields have been better than expected but concerns have been mounting about the quality of unharvested crops resulting in the export price of these hard milling wheats rising from a low of $257 two months ago to $292/ tonne recently (CWRS 13.5% protein fob St Lawrence). To some extent this rise has also followed the US market for hard milling wheats which is being influenced by some mixed results on the quality front there too. Most of the spring wheat harvest managed to escape the worst of the weather but protein content and falling numbers are seen lower than last year’s – although test weights are higher. However, due to better than expected yields, the production forecast has been raised for both spring bread and durum wheats. As in Canada, US hard wheat prices have risen recently with Dark Northern Spring (14% protein, fob Gulf) quoting $280 as we go to press compared with a low of $257 in September and Hard Red Winter wheat at $207 ($190). Rain in Argentina has recently boosted prospects a little for Argentina’s crop which got off to a poor start for the second year running amid dry conditions. Because area sown is again well down, the crop will again be unusually small with exports not likely to get much beyond 1.5m tonnes - a very poor result for a country that normally supplies the world with 10m to 12m tonnes of most good quality bread wheat.

Forward supply outlook Planting of winter wheat in the northern hemisphere mostly progressed well, despite dry conditions in parts of Europe, the Black Sea region and Near East Asia although falling prices since mid-2009 prompted some growers, especially in the US, to reduce sowings, according to a recent IGC review. The Council expects global area in 2010 to end up smaller than this year’s but stresses that much depends on spring wheat planting decisions as well as the subsequent southern hemisphere sowing season. In the EU, rain generally favoured winter planting and

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COMMODITIES establishment but dry conditions continued in Hungary and much of Romania, delaying planting. Lower profitability may result in a slight reduction in the total EU wheat area, in favour of oilseeds but nt everywhere, with the UK expected to rebound amid good planting weather and a shift from cheaper barley. In Russia, beneficial rains supported winter grain crops. However, south-eastern regions remained dry and rains were needed soon to ensure adequate plant establishment. Planting progressed at a good pace in Ukraine but, despite mid-month rain, soil moisture remained very low in central/southern regions, making crops more vulnerable to winter frosts. Plantings of winter wheat (about 90% of Ukraine’s production) are expected to be lower than last year because of the dry conditions. Wet weather in Canada meanwhile delayed oilseed harvests and will probably lead to reduced winter wheat plantings. In the United States, farmers are expected to reduce sowings due to the sharp fall in prices and, as mentioned above, late harvest of maize and soyabeans. Elsewhere among the big wheat producers, dry weather in the North China Plain helped planting of winter cereals with underlying soil moisture levels mostly adequate. In India, producers were expecting support prices to rise, possibly raising area with recent heavy rains improving soil moisture in north/east areas but the southern wheat belt remaining dry. Among the influential importing coutjnries, North African weather has been favourable for planting, with good soil moisture reserves while Egypt’s government is planning to stimulate larger crops.

OILMEALS – surplus & lower prices ahead? Big crops of rapeseed and sunflowerseed are being produced across the northern hemisphere for the second year running,

not least in Europe itself. However, oilseed meal costs have remained fairly firm in the past month or two as the market fretted over the rain-delayed US soyabean harvest. Costs of raw soyabeans have been higher than expected with crushers scrambling for the last old-crop supplies and any new crop offers, preventing the normal seasonal flush of supply lowering soya meal prices. Demand for US soya products in Europe has, in any event been slower, partly due to the larger domestic oilseed crops of this year and last and partly to buyers avoiding consignments that might be contain traces of genetically modified maize strains not allowed for consumption within the EU. At the end of October, however, the EU Commission recommended allowing in three GM maize varieties which should help resolve this issue. Analysts have been mixed in their views on the outlook for soya meal prices. The supply situation is rather fluid with les than half the US crop harvested as we go to press, compared with twice that normally. Wet, cold weather has also resulted in high moisture content of soyabeans and crushers having difficulty getting hold of decent beans to produce an acceptable meal quality, most of which is probably being snapped up by domestic buyers first. That said, most of our US sources suggest yields will more or less hold up and that a near record crop will still come through – about 8m up from last year’s and equal to an extra 6.5m tonnes of soyabean meal. If this proves correct, this market is likely to head into more significant surplus as we move deeper into the new season (which started on October 1), thanks to events in South America. Following the steep price rises in soya and other oilseeds and their products in the past two years, huge crops are planned in this region which now

Global Milling Industry | Company Profiles 2009 - 2010 Consergra s.l

accounts for the lion’s share of soya supply. Our latest data from Brazil, Argentina and various trade and industry sources suggests that their joint production could jump by an unprecedented 30m tonnes – perhaps even more – equal to an additional 24m tonnes of soyabean meal. Of course, weather could spoil these plans. However, so far, the planting season down south has so far got off to a roaring start with good weather allowing producers to sow promptly in hopes of an early harvest (arriving around late-February onwards). To put this in the context of user industries, the world is only expected to need about 7.5m tonnes more oilseed meal in total in the year ahead than in 2008/09. Soya meal should thus be abundant enough to act as an a global anchor across the protein sector. Sunflower meal supply prospects are also better than in the summer months too, with a large world crop of about 32m tonnes estimated for a second year running verus the 27/30m of recent years. EU supply will benefit from carryover stocks of sunflowerseed from last year as well as imports, adequately meeting consumption of about 3.2m tonnes (unchanged from last year). The world also has a large rapeseed crop again – at 57m tonnes, similar to last year’s and about 10m tonnes higher than in 2007. European production alone is up by about 1.7m tonnes, outweighing smaller crops in Canada and the Ukraine. A bigger Chinese crop this year may cut demand from this, the world’s largest rapeseed importer, helping to keep world prices restrained. With fairly good supplies too of groundnut, cottonseed, palm kernel and copra meals, world oilseed meal production should be comfortable in the season ahead with no real justification for price rises – provided Latin America continues to get normal weather.

Spain

Company Information: CONSERGRA, S.L. is a specialist in grain conservation, and manufactures the CONSERFRÍO® grain chiller. It’s a modern, highly energy-efficiency cooler which helps to conserve a wide variety of grains, seeds, oily and granulated perishable items stored in silos and warehouses. Its use, independently of climatic conditions, prevents shrinkages of weight, rotting, insects damage and toxin build up. The conservation with the CONSERFRÍO® is natural and highly cost-effective, the pay-back on the investment is extremely fast. Our units, installed all over the world preserve millions of tons of grain every season. Our product range covers from 40 up to 500 ton per day, per machine. CONSERGRA, S.L. puts their 40 years experience at your service!

www.consergra.com

DMN-WESTINGHOUSE United Kingdom

Company Information: DMN UK supplies DMN-WESTINGHOUSE Rotary Valves, Diverter Valves and other related components for the bulk solids handling industry. Besides an extensive range of standard versions, we supply components that are conforming to USDA requirements, pressure shock resistant to 10 bar, flame proof, ATEX compliant to Directive 94/9/EC, etc. Reflections for 2009: While the last year has been hard on most of us within the bulk handling industry sector, our overall market share has stayed the same with some large orders from end users, especially in the food sector. Aggregates industry is still very quiet, along with Chemical and Pharmaceutical. We have seen a rise in repair and re work of existing valves to ATEX. Also a large increase in the sales for Morris Clamp Couplings, this may be due to our extra large stock holding which was implemented at the end of 2008. 2010: There are signs of growth for 2010, while this won’t be on the same scale as previous years. We are hopeful that some of the projects which have been deferred for 2009 will now become live. As always pricing will be a major issue in winning any order, so costs will need to be keep under control.

Coming soon to the IMD website Global feed market reports

www.dmnwestinghouse.co.uk

www.internationalmilling.com

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Global Milling Industry | Company Profiles 2009 - 2010

Global Milling Industry | Company Profiles 2009 - 2010

Agromatic

Chief Industries

Switzerland

Agromatic AG

Final Chief adverts:Final Chief adverts

Agromatic is a Swiss manufacturer of safety equipment, established in world-wide export of temperature monitoring in mills, silos, compound feed plants and food processing industry. Agromatic manufactures temperature monitoring systems with different suspension possibilities for large silos up to 95m height, special cables for storage halls, all kinds of full and empty indicators, continuous level monitoring height, safety monitoring for elevators, conveying belts etc. Combined units for speed and/or alignment control, also for plastic buckets. Spark detection and spark extinguishment devices for food compound plants, metal detectors and separators as well as dryer monitoring systems are also supplied by this Swiss manufacturer. The range of the laboratory equipment (4 roller flour mill/sampler/laboratory sieves/ sieve shakers) have been completed by a high precision small quick moisture indicator (Agro Combi). For the operation in mills among throughput systems for the raw grainblending also dampening systems and associated units are being produced. In 1979 Agromatic was the first manufacturer introducing an automatically regulating dampening system. Agromatic works with the slogan:

Fields of grain? Or fields of gold? Both. We know exactly how valuable grain is to you and your business. Which is why we never underestimate the importance of how it is handled. If you need a partner with the expertise, technology and manufacturing methods to ensure that your storage plant is second-to-none in terms of quality and processes, then look no further.

You can trust in Chief.

An investment in top quality for a long lifespan.

Beckingham Business Park, Tolleshunt Major Maldon, Essex CM9 8LZ, UK

Tel +44 (0)1621 868944 Email [email protected] www.chief.co.uk

www.agromatic.com

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Company Information: Chief Industries UK Ltd, and its subsidiary Phénix Rousies Industries in France, are part of the Chief Industries Inc. Group based in Nebraska, USA. Together, the Chief companies manufacture a comprehensive range of top quality grain storage silos, conveyors and ventilation systems for worldwide distribution. Chief Industries has over 50 years experience in grain storage systems, incorporating stateof-the-art design and manufacturing, supplying flat floor silos with capacities ranging from 30 to 30,000 ton, and hopper bins with capacities ranging from 2.5 to 1,400 ton. By designing complexes of a number of silos the grain storage possibilities are endless. Manufactured from high quality galvanized steel, Chief ’s storage installations last for many years. Market activity has seen a further increase in 2009 with continuing worldwide demand for storage facilities, and turnover has again exceeded that of previous years. In addition, a major port storage project in Pakistan has added further to the company profile. With it’s modern manufacturing facilities Chief has continued to take advantage of the market conditions. That, together with the company’s reputation as a trusted, no-nonsense, technically competent supplier, has placed Chief UK in a healthy position to look forward to a further increase in sales during 2010.

www.chief.co.uk

Feed Management Systems

Brabender® GmbH & Co. KG

USA

Duisburg - Germany

Feed Management Systems® Inc. a leader in providing integrated software solutions for the feed manufacturing industry to manage their nutrition, feed formulation and production needs. Ensure the safety, quality and affordability of your feed supply by integrating your data and managing costs.

Company Information: For 86 years, Brabender® GmbH & Co. KG has been the leading company tor the development, manufacture, and distribution of instruments and equipment tor testing material quality and physical characteristics in all fields of research, development, and industrial production in the chemical and food industries all over the world. Brabender® test methods became the basis of many international standards. Reflection of 2009: A new stand alone extruder was introduced which processes small material samples. The alre ady well k nown extruder model range was updated to state-of-art technology. The successful presentation of new developments was made during the IBA in Düsseldorf. Thoughts for 2010 : Within the 4th Farinograph® generation the Brabender® Farinograph®-AT will set standards for the rheological measurement of flour and dough. Due to an automatic and tempered water dosing system, the tests will be facilitated and become even more reproducible. The extended software offers additionally many advantages. For the rapid analysis of grain and flour the Kernelyzer-F will be available for NIR-measurements.

Food Quality Testing with Brabender® Instruments

www.brabender.com Anz_58x90_Print.indd 1

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16.11.2009 12:16:00 Uhr

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Global Milling Industry | Company Profiles 2009 - 2010 Perry of Oakley United Kingdom

Quality that lasts, at a price you’ll remember

The ultimate solution in grain equipment www.perryengineering.com Dunkeswell Airfield, Honiton, Devon, EX14 4LF Email: [email protected] Tel: 01404 891400 Fax: 01404 891402

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Milling November Global - December 09

Industry | Company Profiles 2009 - 2010

Sense Enterprise Solutions Ltd Trade assurance schemes now a key feature of food and feedchains United Kingdom

Perry of Oakley Ltd is a family owned designer and manufacturer of grain driers and materials handling equipment. All equipment is manufactured in the UK at our purpose built factory. Our grain driers are suitable for the drying of all cereal crops including Maize, wheat, Barley, Oats and oil seed rape. The driers have a capacity up to 150 tph and are in use worldwide. The PERRY range of handling equipment offers specifications and capacities to suit on farm use to heavy duty commercial grain store applications. Our handling equipment range includes chain and flight conveyors, Belt and Bucket elevators, Belt conveyors, Mechanical intake pits and screw conveyors. 2009 in the UK saw an increase in the number of smaller capacity grain driers ordered. I think this reflected the number of farmers with very small driers who had struggled in the wet harvest of 2008. These farmers wanted to remain independent of the central grain stores and maintain there own drying facility but they did not need large capacity driers because of the relatively small amount of cereals they grow. For 2010 enquiry levels and orders placed to date are good with an even mix of small and medium to large capacity driers being ordered. Our investment in fully automated punching and forming equipment as well as increasing the size of our stores facility should see PERRY well placed to deal with forthcoming orders both in the UK and worldwide

www.perryengineering.com

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i t h m e m b e r s hi p of the assurance schemes operated by the Agricultural Industries Confederation approaching 3,000, the schemes are now a key feature of agricultural and feed ingredient supply chains, says AIC technical manager Garr y Rudd.

Company information: Sense developed FeedAX in 2003 after we were selected by I’Anson Brothers to implement a Microsoft Dynamics AX solution for their feed manufacturing business.

Tothat date,TASCC all of our is clients the benefits replacing old,which disjointed systems “It is clear nowhave an recognised integral part of theofgrain chain helps benefited from streamlined processes, increased efficiency and profitability. hauliers, and merchants, stores and testing facilities meet legislative and customer requirements.

FeedAX extends the standard functionality of Microsoft Dynamics AX to provide for the specific requirements of feed mills, including: Contracting, Sales, Transport, Formulations, r e x a mand p l e Process , w e Control a r e nIntegration. from point of manufacture to “ F oReporting on conformances seen Weighbridge, Compliance the farmgate,” said Mr Rudd. currently working on the during the annual audit are FeedAX enables yourn business one totally integrated system e w TA to S Cbe C operated c o d e s through f o r decreasing, it is clear that Increasingly providing the schemes are efficiencies and instant key performance reports. There is a conoperational 2010 /11. One of the issues standards in the supply chain gaining recognition beyond firmed product roadmap beyond 2020 and Dynamics integrates being debated is the use ofAX are rising,”seamlessly concludedwith Mr other Rudd. U K s h o r e Microsoft s . “ Re c iproducts p r o c a l and technologies. This makes FeedAX a sound long term investment second hand and hire trailers, stand out from the crowd with Speaking at UK Grain, Mr Rudd agreements for yourassurance business. which is really important to More inforMation: pointed out that participation in schemes operating to the hauliers who comprise a onher 2009:the 2009 was a pivotal year for FeedAX with 4Rudd new major projects for A new in business software s ame st andReflection ards in ot the fourstandard AIC-operated schemes Garry major membership of many of feed mills in theup’ UK and Ireland. for Feed Mills ‘joined had incre ase signif ic antly countries deliver the schemes,” said Mr Rudd. Technical Manager, AIC reduce cost and for 2010: Many feed mills are reviewing over the past seven years. assurance and Confederation Industry outlook the role ofHouse their business FeedAX is an ERP system specially designed “It is clearcompetitive that TASCC is nowWithEast bureaucracy,” said Mr Rudd. increasingly for the needs of Animal Manufacturers Showground, systems in today’s market. thisofinEngland mind we believe that “Between them, theFeed schemes an of integral part ofanthe grain standard and Distributors. Peterborough, PE2 6XE FeedAXparticipants offers the best both worlds; industry market leading Microsoft now provide assurance on the Input from scheme chain which helps hauliers, United Kingdom Dynamics AX solution, developed and delivered by people with real world feed manufacsafety of combinable crops, andAXrepresentatives of the supply 01159 646 646 merchants, stores and testing turing experience. feedinfo ingredients and feedstuffs chains ensures that the schemes Tel: +44 1733 385230 @feedax.com facilities meet legislative and for the food and feed industries; are up-to-date, relevant, remain up Fax: +44 1733 385270 www.feedax.com customer requirements. Email: [email protected] as well as delivering security to date in terms of regulations, but Web: www.agindustries.org.uk to the fertiliser supply chain remains practical to implement. Given that the number of

www.feedax.com

Perstorp Performance Additives The Netherlands/Sweden

We pride ourselves in implementing the latest technological improvements We strive for the highest quality & confidence in our products & services

Company information: For nearly fifty years Perstorp has been involved with developing a range of highly effective feed additives to improve the performance of farm animals. Perstorp’s outstanding product range is complemented with a competence mix that makes the difference in helping you become more profitable. Product innovation and R&D activities lead to feed additives that improve the nutritional value of feed and protect animal health. We take care of our customers by giving them personal attention, good technical support and a rapid response in satisfying their needs. And we make sure that our long experience in the feed industry is used to your benefit.

Our goal is complete customer satisfaction in the production of our flour milling machines

> Turnkey installations > Cleaning equipment > Milling equipment > Transfer equipment > Extraction Control > Packaging > Complementary machines

Reflection of 2009: The credit crunch and turbulent propionic and formic acid prices have impacted our markets in 2009. Despite this we have remained a healthy and reliable business par tner for all our customers and we have created some innovative new products. Thoughts for 2010: At the end of 2008 everybody knew that we were heading into a turbulent year. This year forecasts are more optimistic. A more stable market situation will allow us to focus on innovations and find new markets and applications. For more information visit our website at:

www.perstorpfeed.com

Konya Organize Sanayi Bölgesi 7 Sokak UNION OF ZOOBUSINESS No: 3 Konya/TÜRKİYE ENTERPRISES T: +90 332 239 1016 (pbx) F: +90 332 239 1348 E: [email protected]

www.unormak.com.tr 40 | november-december 2009

&feed millinG technoloGy

Grain

&feed millinG technoloGy &

Grain 1 feed millinG technoloGy Unormak.indd Grain

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This digital Re-print is part of the November | December 2009 edition of Grain & Feed Milling Technology magazine. Content from the magazine is available to view free-of-charge, both as a full online magazine on our website, and as an archive of individual features on the docstoc website. Please click here to view our other publications on www.docstoc.com.

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Company profiles 2009-10

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