World Grain - August 2009 - 51

GRAINOPERATIONS

transfers, divides that number by two, and multiplies the result
by .0005 (one-half of 1%). For example, in a typical month (at
harvest time) at one of the company's facilities, n bushels plus
shipments of 2.5 million and transfers of 1.5 million.
"In this example, we took a monthly handling shrink of
2,875 bushels," Marlow said. "In essence, we wrote off our
DPR (Daily Position Record) the 2,875 bushels and took a
financial hit based on the value of those (soybeans) at month's
end, in this case $28,750, as I used $10 per bushel. Is it totally
accurate and perfect? No, but it does attempt to account for
the shrinks associated with moving a commodity through our
facilities."
In addition to the "normal mechanical shrink," Marlow said
he factors in handling shrink when building and later reclaiming the outside piles. "At my three facilities, that amounts to
an additional 3,150 bushels (6.3 million bushels multiplied by
.0005)," he said. "While that may seem a little extreme, I have
found that is much easier than a write down."

Dryer shrinkage is a major cause of inventory reduction.

1

The perfect sifters
for cereal grains
from rice to rye ,

AERATION SHRINK
Aeration shrink can often be overlooked and in many cases
underestimated, Marlow said. When you cool grain and the
adjacent air spaces, you lose moisture, and that is weight.
The science of moisture removal via aeration is governed
greatly by the starting temperature, moisture, air flow rate,
relative humidity, fan time in hours, and can even be impacted
by the commodity being cooled.

"The simple fact remains that between the
time those bushels first hit your dump pit
until the time it leaves your outbound spout
and scale, there are some visible and invisible
losses."
- Bob Marlow, regional operations manager,
The Andersons, Inc.

::Greatz

Weste "rn,

`Manufacturin g
800-682-3121
www.gwmfg.wm

Marlow said the formula used by The Andersons to address
aeration shrinks involves taking the bushels under aeration
multiplied by the degree of temperature change times a factor
of .022 multiplied by .012.
"The .022 'factor' is a number we chose to use for the starting temperature correction," he said. "The .012 (1.2%) is a
rounding off of the mathematical shrink formula of 1.183%,
widely used in the industry. We use a simple spreadsheet to
track and calculate monthly aeration shrink.
"Here again, we take this shrink to our DPR on a monthly
basis, choosing to calculate the shrink based upon the beginning versus ending temperatures. Depending on the size of
the facility and the amount of grain under aeration, this can

For more information, see Page 74.

52

August 2009 / World Grain / www.World-Grain.com



http://www.gwmfg.wm http://www.World-Grain.com

World Grain - August 2009

Table of Contents for the Digital Edition of World Grain - August 2009

Contents
World Grain - August 2009 - 1
World Grain - August 2009 - 2
World Grain - August 2009 - 3
World Grain - August 2009 - Contents
World Grain - August 2009 - 5
World Grain - August 2009 - 6
World Grain - August 2009 - 7
World Grain - August 2009 - 8
World Grain - August 2009 - 9
World Grain - August 2009 - 10
World Grain - August 2009 - 11
World Grain - August 2009 - 12
World Grain - August 2009 - 13
World Grain - August 2009 - 14
World Grain - August 2009 - 15
World Grain - August 2009 - 16
World Grain - August 2009 - 17
World Grain - August 2009 - 18
World Grain - August 2009 - 19
World Grain - August 2009 - 20
World Grain - August 2009 - 21
World Grain - August 2009 - 22
World Grain - August 2009 - 23
World Grain - August 2009 - 24
World Grain - August 2009 - 25
World Grain - August 2009 - 26
World Grain - August 2009 - 27
World Grain - August 2009 - 28
World Grain - August 2009 - 29
World Grain - August 2009 - 30
World Grain - August 2009 - 31
World Grain - August 2009 - 32
World Grain - August 2009 - 33
World Grain - August 2009 - 34
World Grain - August 2009 - 35
World Grain - August 2009 - 36
World Grain - August 2009 - 37
World Grain - August 2009 - 38
World Grain - August 2009 - 39
World Grain - August 2009 - 40
World Grain - August 2009 - 41
World Grain - August 2009 - 42
World Grain - August 2009 - 43
World Grain - August 2009 - 44
World Grain - August 2009 - 45
World Grain - August 2009 - 46
World Grain - August 2009 - 47
World Grain - August 2009 - 48
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World Grain - August 2009 - 50
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World Grain - August 2009 - 75
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