Milling & Baking News - June 11, 2013 - 24

International 

Recovery seen for global ﬂour exports
in 2013-14; still short of 2011-12 record
LONDON — World trade in wheat
flour, as projected by the International
Grains Council, will increase by 7% in
the 2013-14 crop year. That represents
a partial recovery from the 16% drop
in the year ending this June 30, and
would bring global flour exports to
the second largest total of record.
The I.G.C. projected global flour trade
in 2013-14 at 13,060,000 tonnes of grain
equivalent (209 million cwts in terms
of flour), compared with the revised
estimate of 12,220,000 for 2012-13 and
the all-time record of 14,560,000 tonnes
in 2011-12. It was not until 1995-96 that
world flour exports first exceeded 10
million tonnes of grain equivalent.
The I.G.C. slashed its earlier estimate
of 2012-13 flour exports by 650,000
tonnes, from 12,879,000 to 12,220,000,
largely due to import restrictions imposed in the year by the government
of Indonesia. That country originally
was expected to import 900,000 tonnes
of flour in wheat equivalent, but the
total was cut to 500,000 as the Jakarta
government responded to complaints
about flour dumping. Its response primarily took the form of raising the import tariff to 20% ad valorem, from 5%,
and providing that the higher levy took
effect last Dec. 5 and would remain on
flour “from major origins” for 200 days.
Another decrease from an earlier
estimate was in Uzbekistan’s flour
imports in 2012-13. The total was seen
falling short by 200,000 tonnes.
Kazakhstan and Turkey, the leading shippers, also were the countries
that felt the impact of the reduction in
2012-13 volume. Kazakhstan’s exports
in the season just now drawing to a
close were reduced 500,000 tonnes to
2.3 million, while Turkey was cut back
by 300,000 tonnes to 2.5 million. As

compared with 2011-12, when Kazakhstan exported a record 3,652,000 tonnes
of wheat flour in grain equivalent, the
revised estimate for 2012-13 was down
37%. In Turkey’s case, the reduction
was 17% from 3,013,000 in 2011-12.
The exports in the latter year for both
countries set new records, and Kazakhstan’s shipments, at the equal of nearly
60 million cwts, were among the
largest ever by a single nation.
In the wake of the reductions, both nations were seen
as likely to post increases in
the new year. Both gains were
attributed to larger domestic
wheat crops. Kazakhstan exports
in 2013-14 were forecast at 3 million
tonnes, up 30% from 2.3 million in 201213, while Turkey’s flour shipments in
2013-14 were projected at 2.6 million
tonnes, up 4% from the prior crop year.
Other leading exporters are Argentina and the European Union, each
projected to ship 1.2 million tonnes of
flour in wheat equivalent in 2013-14.
The E.U. total was unchanged from
the preceding year, while Argentina’s
exports, mainly to Brazil, showed a
100,000-tonne gain.
The United Arab Emirates was the
only other likely shipper of 1 million
tonnes or more of wheat flour, which
has been its pace for some years.
The United States, China and Russia
were in the same band of likely flour
exports, each projected at near 400,000
tonnes in 2013-14.
A rebound in 2013-14 of flour imports by both Indonesia and Afghanistan accounted for the outgo increase in
prospect for the new 2013-14 season. In
turn, this underscored the expanding
importance of the Far East as a destination for flour shipments. According

Cargill to sell Swiss ﬂour business
LUCENS, SWITZERLAND — Groupe
Minoteries S.A., a Swiss-based flour milling company, has agreed to acquire the
Penthalaz, Switzerland-based flour business of Provimi Kliba S.A. Provimi Kliba
is Cargill’s animal nutrition business in
Switzerland. Financial terms of the transaction, which is expected to close in early
August, were not disclosed.
The acquisition includes the land, buildings, and machinery involved in the flour
milling, grain origination and feed production facilities located at sites in Penthalaz
and Orbe, Switzerland.
24 / June 11, 2013 Milling & Baking News

With the acquisition, a new company
will be established under the name Grands
Moulins de Cossonay Sarl à Penthalaz. Forty-one of Cargill’s employees will be transferred to the new company.
“The sale of our flour business in Penthalaz and decision to invest in the Kaiseraugst and Lucens feed facilities is part
of our overall strategy to position our animal nutrition business in Switzerland for
growth,” said Richard Sinclair, managing
director for Provimi Kliba and Protector
S.A. “This sale allows us to exit our non-core
flour business and more effectively capitalize

to the I.G.C., the countries of the Far
East will import a collective total of
3,710,000 tonnes of flour in wheat
equivalent in 2013-14, up 27% from the
previous crop year and slightly above
the area’s record imports of 3,610,000
in 2011-12. Afghanistan flour imports
in 2013-14 were projected at 1.3 million tonnes, against 1 million in the
year just ending. The Council also said
that Indonesia’s imports will recover to
900,000 tonnes, from 500,000 in the preceding year, as long as the government stays with its penalty
import quota timing.
Commenting on these matters, the I.G.C. said, “Given
low shipments to date, expected purchases by Uzbekistan have been reduced by 200,000
tonnes. Kazakhstan’s exports are also
revised down, with Afghan traders expected to be sourcing flour from Pakistan where availability is better.”
Uzbekistan once again will be the
leading importer of flour in the 2013-14
season. Its takings were projected by
the I.G.C. at 1.5 million tonnes in wheat
equivalent, up 15% from the prior
year’s 1.3 million but well short of the
peak of 1,939,000 tonnes in 2011-12.
Afghanistan remained in second
place with likely imports of 1.3 million
tonnes, against 1 million in 2012-13.
Iraq was projected to take 1.2 million tonnes in 2013-14, unchanged
from the previous year, but down
from 1,359,000 in 2011-12.
Brazil and Indonesia were the two
flour importers projected to take
900,000 tonnes in the new season.
As has been the case for several years,
the I.G.C. does not include durum semolina shipments in flour exports. It forecasts shipments of this flour in 2013-14
at 350,000 tonnes of wheat equivalent,
unchanged from 2012-13 and off from
360,000 in 2011-12. MBN

on growth opportunities within our animal
nutrition business to bring more value to
our customers and our employees.”
After the sale is complete, Cargill said
it plans to lease the feed production facilities at the Penthalaz plant from Groupe
Minoteries S.A. Feed production volumes
as well as most positions from Penthalaz
will be transitioned to the company’s Kaiseraugst facility and to the Protector S.A.
facility in Lucens over the next 18 months.
In addition, the company is investing up
to $12 million to expand the capacity and
efficiency of these facilities to accommodate the increased volume resulting from
the transition. MBN
bakingbusiness.com / world-grain.com

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Milling & Baking News - June 11, 2013

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