Grain Milling

Grain Milling

Brief Excerpt from Industry Overview Chapter:

Companies in this industry mill flour and rice, produce malt from grains (primarily barley), and mix prepared flour mixes and dough. Major companies include Archer Daniels Midland, Cargill, ConAgra, General Mills, and Riceland Foods (all based in the US), as well as China Agri-Industries (China), GrainCorp (Australia), Nisshin Seifun Group (Japan), and Wilmar International (Singapore).

COMPETITIVE LANDSCAPE

Demand is driven by population growth and consumer patterns in bread, whole grains, and rice consumption. The profitability of individual companies depends on managing grain prices and inventory effectively, and minimizing the risk of rodents, insects, and molds. Large companies have advantages in advanced milling technology and a diversified product line. Small operations can compete effectively by specializing in organic, non-genetically modified, or heirloom grains. The US industry is highly concentrated: the top 50 companies account for about 85% of industry revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include milled rice, grains and flour milled products, flour mixes, and malt, which all account for about 10% each. Other products include grain mill products (about 5%) and head rice.