Milling & Baking News - February 28, 2017 - 7

Editorial

Globalization not milling problem

ven flour millers on opposite sides of the world Providing flour that matches the requirements of
would be expected to have quite similar views whatever product is being made by bakers or other
regarding the important industry goals that customers long has been the pride of millers. Sure,
merit aggressive pursuit. After all, the flour milling there have been innovations in flour, but their sucprocess is nearly identical from country to country, at cesses have been limited to the point that this is not a
least among developed nations, and the main custom- broadly embraced goal.
ers are mostly engaged in much the same processes
The same may not be said of another of Mr. Cobb's
to produce bread and similar products. Except for target - differentiation. The problem here is that desub-tropical areas deficient in wheat production, mill- fining this term from milling's point of view is not the
ers for the most part have ready access currently to least bit easy. Each milling company strives to differlarge, if not record-setting, supplies of wheat grown entiate its products, its services and all the other steps
locally. While managerial knowledge and related defining relations with customers. That is a given
skills in operating flour mills
even though differentiating
vary considerably among
the products of flour milling
Providing flour that matches
countries, instances of milling
might prove a problematic
the requirements of whatever
executives moving from area
exercise, especially if this is
product is being made by bakers or
to area would affirm the cominterpreted to mean change.
other customers long has been the
monality of business agendas.
Observing the stress that ocpride of millers.
Having thus made the case
curs each year as the new
for why similar, if not identical, issues face millers in wheat crop replaces its predecessor, introducing all
different nations, let's look at a recent industry gath- the large and small adjustments in both milling and
ering in Australia where consideration was given to baking, leads to a belief that such differentiation is to
major industry issues. It was there that an Australian be avoided, not sought.
miller from one of his nation's oldest companies deRelevant to this observation as to how flour milling
clared that the success of Australian milling "depends bears resemblance among countries, no matter how
on continual innovation, differentiation and ensuring closely or distantly located, is to bring up attitudes
Australia's best is the world's best." Peter Cobb, who blamed on globalization. The latter, a reflection of
presented these remarks, added that milling's success international trade, has emerged as an issue in many
depends primarily on developing niche products, not countries, especially those where powerful elements
commoditized ones. In talking about product differ- take opposing points of view. Flour milling, a busientiation as a goal of flour milling, he said that suc- ness that is conducted internationally and a basic
cess and growth depend on whether a company can part of the food industry in many nations from their
develop products that meet the expectations of both founding, is barely touched by these issues because
low demanding and high demanding customers.
flour is not a commodity that moves long distances
Mr. Cobb did not amplify on what "continual in- in international trade. With few exceptions, it is difnovation" means for flour milling. Nor did he point ficult to cite a flour milling business anywhere that is
out that in most of the world product quality and touched in either a positive or negative way by gloconsistency, not innovation, have had the upper hand balization. One exception, of course, is where a mill
for some time. No one would dare to dismiss inno- seeks to innovate or to differentiate from how othvation as a desirable quality in any sort of company, ers operate. If this is advocated in Australia or other
making flour or much else. Indeed, it is product in- places, it creates something millers must worry about
novation that has gained the attention of wholesale like globalization upsetting what has worked well for
baking in America and in other developed nations. a long time. MBN
MORTON SOSLAND, EDITOR-IN-CHIEF
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