World Grain - July 2014 - (Page 72)

FEATURE Positioning mills for success S pecializing in the standardization, processing and fortification of flour, Mühlenchemie, headquartered in Ahrensburg, Germany, recently celebrated its 90th anniversary. In a recent interview with World Grain, Managing Director Lennart Kutschinski explained how mills can position themselves successfully even in times of fierce competition, what services Mühlenchemie offers the industry and why it is advisable always to have a "Plan B" up one's sleeve in view of the volatile raw material markets. WG: You have been following developments in the international milling industry from the supplier's side for about 20 years. What structural changes have affected the industry most? Kutschinski: Above all, the process of concentration: what milling capacity must I have in order to survive? Size and location are factors relevant to competition. Mills that process less than 600 tonnes a day and are not in a seaport or close to a large sales market such as a metropolitan region, or both, are likely to find it hard in the future to hold their own in this high-volume business. The transportation and Ahrensburg, Germany-based Mühlenchemie is celebrating its 90th anniversary this year. Photos courtesy of Mühlenchemie. 72 by Arvin Donley Mühlenchemie managing director talks with World Grain about key factors in milling such as efficiency, innovation and diversification warehousing costs are just too high. The market will become more and more consolidated in the next few years, and the pressure on prices will increase. WG: What course will companies have to follow in order to meet this development? Kutschinski: Milling is a single-process technology. It involves only one step: from wheat to flour. Of course, that makes it difficult for mills to create a unique selling proposition. You can offer higher quality, optimize the milling process with better equipment or reduce the procurement and production costs with larger quantities. But basically, all measures are directed towards one goal: to reconcile economy with quality. July 2014 / World Grain /

Table of Contents for the Digital Edition of World Grain - July 2014

World Grain - July 2014
Table of Contents
From the Editor-in-chief - E.U.’s fate has role in milling’s future
Calendar of Events
GAFTA Trade & Trends Conference
News Review - Trimex buying Gruma wheat milling business
Cargill expands wheat processing plant in Russia
ACCC reduces regulation at GrainCorp terminal
New rice mill planned for Arkansas
CWB moves to acquire two terminals in June
Australia issues draft code of conduct for ports
ADM announces appointments in Asia-Pacific
ADM completes Toepfer acquisition
Olam, Mitsubishi partner on Australian grain business
Richardson reopens Thunder Bay terminal, doubles capacity
FEFAC calls for policy shift toward innovation
China’s DDG cancellations not GMO related, analysts say
Groups in wheat producing nations support GM wheat
AFIA seeks FDA exemption for animal food
Grain Market Review - Wheat
Country Focus - Canada
Feature - Shifting horizons for global trade
Feature - Seeking Balance
Feature - 2014 Conference & Expo
Next year: Palm Springs
Milling Operations - The complexities of durum milling
Feature - Flour exports forecast to rise
IGC: Record industrial use of grain projected in 2014-15
World Grain Weather Report - Dryness a concern in India
Feature - Keeping Your Facility Odor Free
Feature - Positioning mills for success
North American Supplier Profiles
Supplier News
World Grain Archive
Ad Index/Reader Information Form International Faxback Program

World Grain - July 2014