Milling & Baking News - August 2, 2016 - 7

Editorial

Exports key to status of milling

uccessive years of new records in world trade growth in population as well as from increased conin wheat flour provide the basis for a positive sumer demand. In light of export uncertainties, U.S.
assessment of the milling industry in those and E.U. millers have reason to welcome their situcountries leading export trade. Yet, the data on ations.
flour exports and imports compiled by the InterYet, those countries that lead flour exporting
national Grains Council also provide significant in- have basis for hailing milling as evidence of returns
sights into the state of milling in many nations that available from a surge in shipments. The most strikdo not have a major role at this time in flour trade, ing example is Turkey, which has held the export
including the United States. Thanks to quarterly as- lead for the past several years. This came after it
sessments of flour exports provided by the I.G.C. competed with Kazakhstan in a period when the
as part of its Grain Market Report millers around two countries alternated as global leader.
the world have up-to-date information that may be
According to the I.G.C., Turkey in 2016-17 will exstudied as helpful in gaining understanding of how port 4,650,000 tonnes of flour in wheat equivalent,
milling is faring in many nations. That is especially representing 31% of the record. Considering that
the case in combining the export information with Turkey in the last years of the 20th century was exthe annual estimates of flour
porting only about 200,000 to
production, which also are
Much of the present-day record
300,000 tonnes of wheat flour,
compiled by the I.G.C.
the current total reflects masin global flour exporting reflects
One of the most telling
sive expansion of the milldemand from the countries in Near
examples of information deing industry as well as the
East Asia that are besieged by
rived from these two data internal conflicts of varying intensity companion enlargement of
sets is the European Union.
companies supplying locally
and length.
All 28 member countries are
and then internationally the
forecast to export 1 million tonnes of flour in wheat equipment needed for efficient flour milling. It seems
equivalent in 2016-17, putting it in third place as hardly possible to move that quantity of flour to fora flour exporter. Yet, the E.U. as recently as 1996- eign destinations when its milling industry is shown
97 shipped 6,249,000 tonnes. The current 1 million producing slightly more than 8 million tonnes.
tonnes would be 7% of this crop year's trade, conA similar record in milling growth has occurred
trasted with 56% two decades ago, thus underscor- in Kazakhstan, once a part of the Former Soviet
ing the fall in exports that could have negatively af- Union, which is expected to ship 2,850,000 tonnes
fected European milling. Yet, five leading countries in 2016-17. That is nothing short of amazing for
of the E.U. have maintained annual flour output an industry that is producing only about 4 million
near 19 million tonnes, offsetting the export loss.
tonnes annually.
The flour supply-demand situation in the UnitMuch of the present-day record in global flour exed States is even more revealing. Recent American porting reflects demand from the countries in Near
flour exports have been only 400,000 tonnes, which East Asia that are besieged by internal conflicts of
is barely 3% of global trade. That contrasts with varying intensity and length. It is very similar to the
America's earlier role as the leading flour exporter. way wars and internal fighting have exerted great
It shipped 2 million tonnes in 1984-85, which was influence on flour demand at different times and
a quarter of trade. Rather than having a negative in different geographies in the period since World
effect, that drop in exports is countered by a rise War II. These influences replace the earlier impacts
in domestic demand as shown by production rising provided by decisions to build or not to develop
from 14 million tonnes in the mid-1980s to above domestic industries that seek to keep pace with the
19 million currently. American millers benefit from growing popularity of flour-based foods. MBN
MORTON SOSLAND, EDITOR-IN-CHIEF
WE'RE EAGER TO GET YOUR FEEDBACK: E-mail editor@sosland.com or write to us at
Milling & Baking News, 4801 Main Street, Suite 650, Kansas City, Mo, 64112
EDITORIAL STAFF
Editor-in-chief
Morton I. Sosland
Executive editor, markets
Neil N. Sosland
Editor
L. Joshua Sosland
Managing editor
Eric J. Schroeder
Associate editor
Jeff Gelski

Senior editors, markets
Jay S. Sjerven
Ron Sterk
Assistant editor, markets
Laura Lloyd
Senior editor, digital content
Monica Watrous
Internet editor
Rebekah Schouten
Graphic designer, market
graphics, data
Christina Sullivan

7bakingbusiness.com
/ March 13, 2007 X
/ world-grain.com
Milling & Baking News

PUBLISHING STAFF
Chairman and C.E.O.
Charles S. Sosland
President
L. Joshua Sosland
Publisher
G. Michael Gude
Chief financial officer
Staci Greco
Audience development director
Michael Barbee

Director of e-business
Jon Hall
Director of on-line
advertising and promotions
Carrie Fluegge
Advertising manager
Nora Wages
Director of design services
Sadowna Conarroe
Associate design services manager
Ryan Alcantara

Circulation manager
Whitney Hartman
Digital systems analyst
Marj Potts
Manager of advertising design
Becky White
Promotions marketing manager
Jim White

Milling & Baking
bakingbusiness.com
News XAugust/ world-grain.com
2, 2016 / 7

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - August 2, 2016

Table of Contents for the Digital Edition of Milling & Baking News - August 2, 2016