TE WORLD BANK FAU9

FA U-09 Public Disclosure Authorized

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SECTORAL LIBRARY INTERNATIONAL BANK FOR RECONSTRUCTlON AND DEVELOPMENT FEB 12 1986 Public Disclosure Authorized *~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Public Disclosure Authorized Agro-Industry Proffles CORN Public Disclosure Authorized PROFILES IN THIS SERIES:

OILCROPS - OVERVIEW ...... FAU-01

OIL SEEDS ...... FAU-02

OIL PALM...... *e.o...... FAU-03

COCONUT. ... . * .e.***** e ***oFAU-04

SUGAR. sooe...... * .eo...... **o FAU-05

ETHANOLo...... e ee...... FAU-06

WHEATo...... o.o..*...... o....o . FAU-07

RICEo...... o..o.o.o.o...... FAU-08

CORN. . . oo ooo... .o.o.. .. o..FAU-09

CASSAVA ...... ooo...... oFAU-10

ANIMAL FEEDS ..o...... oFAU-11

FRUITS AND VEGETABLES...... FAU-12

RUBBER...... o..o ...oo. FAU-13

COFFEEo.....o.oo...... FAU-14

TEA ....oo.ooo.ooo...o.o.oo..o..FAU-15

COCOA. e.eoe...... oooooe geooege..o.FAU-16

COTTON...... o...... o...o ..*FAU-17

MEAT...... o.oo .....oo s o.FAU-18

SPICES AND ESSENTIAL OILSo....FAU-19

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ABSTRACT

The objective of this Profile is to provide processing a review of the corn industry. It outlines the corn industry from harvest and preparation the of raw material to the milling and marketing of the finished product. The Profile specifications provides of composition, yields and uses, a glossary words, and a bibliography of key of useful references. It traces the milling process and reviews marketing aspects, grade/quality, such as uses and characteristics. Environmental concerns, economies of scale, and corn by-products are Annexes also discussed. showing conversion factors, conversion (Metric/US) tables, and examples of investment and operating costs are included at the end of the Profile.

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I FOREWORD The nature of project and sector work in the World Bank is such that staff are often called upon to work fields outside their major of specialization, if only to make an initial the utility of further, judgement on often costly, investigation. Under these circumstances, up-to-date and authoritative essential. reference material is The profiles in this series are designed for use by staff with experience operational in the agricultural sector but who do not have a technical knowledge of the particular discussion. commodity under Their purpose is not to substitute for expertise but technical to provide a reliable inhouse reference which help Bank staff to determine will when and what expertise is needed in the detailed evaluation of investment proposals processing. in agro-

The conditions for any particular proposal are bound to be unique in a number of respects, and the use of project norms and general data in analyses could give rise to significant errors. other hand, by providing On the responsible staff with a guide to the issues on which appropriate expertise should profiles be sought, these can contribute to the overall quality of agro investment. Used processing with care, they should also facilitate broad pre-screening such as may occur during sector reconnaissance. work and

Questions, comments and further inquiries should be addressed to: Agro-Industries Adviser Finance and Agro Industry Unit Agriculture and Rural Development Department

The contribution of Ibberson International, Inc. in the review of this profile is gratefully acknowledged.

September 1985 i

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l Corn

CONTENTS

DATA SHEET ...... ------INTRODUCTION ...... 1 GLOSSARY ......

RAW MATERIALS...... 3 INTRODUCTION TO MILLING ...... 7 WET MILLING ...... 8 MARRKETING ASPECTS ...... 1 OTHER FACTORS ...... 15 BIBLIOGRAPHY ...... 17 ANNEX I INVESTMENT AND OPERATING COSTS

ANNEX II CONVERSION TABLES (METRIC/US)

ANNEX III CORN PRODUCT CONVERSION FACTORS

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Corn

DATA SHEET

Corn Yields (World Bank, 1982):

World Average (1979) - 3,270 kg/ha. Range - From a high of 6,700 kg/ha (the average OECD-country among principal producers) to 3,400 kg/ha (the average among principal producers in the planned centrally- economies) to 1,500 kg/ha (average among principal developing-country producers).

Six types of corn are of major commercial 1982): importance (Considine,

Dent - Hard grains, characterized by concavity of the kernel O resulting from shrinkage of the endosperm moisture; with the loss of the majority of U.S.-produced corn is Dent. Flint - Early-maturing, very hard grains (more so to the presence than Dent), due of a hard layer of starch beneath the endosperm; grown principally in Argentina and Africa. or Soft - Large, soft grains with friable endosperm, permitting easy grinding; grown largely in America. South and Central Sweet - Soft, sweet kernels which contain a greater sugar to ratio of starch than other corns; marketed fresh, canned, frozen for human consumption. or - Very hard, small, elongated grains, which are consumed in puffed-kernel form.

Kwax - Waxy-textured grains often used in of cornstarch. wet-milling production 0 Typical composition (Uhlig, 1979):

Bran - 6%, with a high fiber content; Germ - 12%, of which about 35% is oil; and Endosperm - 82%, of which about 86% is starch.

Dry milling yields are detailed in Table 1 below.

Particle size range Yield Product Mesh* mm (% by weight)

Flaking 3.5-6 5.8-3.4 12 Coarse grits 9-12 2.0-1.4 15 0 Medium grits 12-16 1.4-1.0 60% Fine grits 16-26 1.0-0.65 23 Coarse meal 26-48 0.65-0.3 10 Fine meal (coarse cones) 48-90 0.3-0.17 10 Corn flour through 80 below 0.17 5 Germ 6.7-0.5 14 feed --- 11

* Tyler Standard Screen Scale sizes

Table 1: Dry-Milled Product Yields Source: Kent (1983)

Wet Milling Yields (Considine, 1982):

A 56-lb (25.4 kg) bushel yields - 32 lb (14.5 kg) starch; - 14.5 lb (6.5 kg) feed and feed products; - 2 lb (0.9 kg) oil; and - water.

ii INTRODUCTION

(Note: This commodity is known as 'corn' among English-speakers of North America and as 'maize' among other English-speakers. The terms can be used interchangeably.)

Corn ranks third in world tonnage of grains produced, wheat behind and rice . The majority is consumed as an energy supplement in livestock and poultry feed where its advantages are ease of digestion, high energy content, and price. South In parts of and Central America and Africa, however, it is human consumption. a staple of While is palatable to humans in its fresh state, it comprises only a small portion of the total corn human consumption of products. Other corn varieties, the sugar content is much of which lower, require processing prior to human consumption. Milling enhances the water absorption properties thereby of maize starch, expanding food preparation possibilities. It also facilitates the addition of supplemental vitamins and proteins to .Scompensate for corn's nutritional deficiencies in these respects. Additional information on corn milling processes is available in Kent (1983), Technology of Cereals.

GLOSSARY

Amioca Starch obtained from wet-milling of waxy maize; makes a non-gelling paste character- ized by its clarity, fluidity, and adhesive properties. Thin outer coat of the kernel with a high fiber content.

,.~~~~~~~~~~~~~ Corn Flour Fine, pulverized endosperm particles pro- duced by dry milling.

Decortication Removal of outer layers of bran from the grain.

Degerminated Meal Highly refined meal from which bran and germ have been almost completely removed; particle size and uniformity are controlled. Has less than 1.2% fiber and less than 2.25% fat content on a moisture-free basis.

Dextrose A sweetener which is about 75% as sweet as (Glucose) sucrose (sugar); formed when is completely hydrolyzed; the main source of body energy.

Dextrose A measurement of the degree of conversion of Equivalent starch, expressed as the ratio of the reduc- (DE) ing power of the syrup to that of pure dextrose.

Endosperm The starch and protein component of a corn kernel, contained within the bran walls. Germ The embryo or sprouting section of the seed, distinguished by its high oil content. HFCS High fructose , an enzyme-converted syrup that is sweeter than traditional acid- converted syrups.

Hominy/Grits Degerminated coarsely-milled endosperm with bran removed; particle size ranges from 5.8-0.65 mm; a product of dry-milling. Hybrid The first generation of a cross that involves two or more inbred lines; incor- porating a variety of desireable character- istics.

Instant Starch Pre-gelatinized starch obtained from heated and dried maize starch/water slurries; thick- ens when mixed with cold water. Maltodextrins Solutions having a DE of less than 20.

2 Meal Ground endosperm, classified as coarse and fine, with particle size ranging from 0.65- 0.17 mm. Semi-Sifted Meal Meal from which part of the (Bolted bran and germ Meal) has been removed, and in which particle size and uniformity have been partially controlled. Max: 1.25% ash on a moisture- free basis. Sweet Corn Soft grain corn characterized by a relatively high glucose content; eaten as a vegetable, either fresh, canned, or frozen. Syrups Solutions of starch and water (in which the starch is broken down chemically by hydroly- sis) having a DE of 20 or more. Whole Meal Milled product containing all parts of the grain, i.e., germ and bran as well as endosperm.

RAW MATERIALS

Corn is a warm weather plant grown in both temperate and tropical climates, in high and low rainfall areas, and and short in zones with long summers. It is a hardy plant, known to withstand extreme heat. even The ideal temperature for germination is 86 degrees F (30 C); slower germination rates temperatures. result under lower Relatively warm day and night temperatures are required during the growing season, which traditional is about 140 days for varieties, 90 to 200 for hybrids. A precipitation level of 25-50 inches (63-127 cm) is preferred (Considine, 1982). Corn is an annual plant belonging to the grass in height family. It ranges from less than 3 feet (0.9 m.) for dwarf varieties more than 15 feet to (4.5 m.) for giant varieties (Ibid.). The stem is coarse, solid, and erect; narrow leaves length. alternate along its Rows of grain develop on an elongated, enclosed Grain color ranges ear. from white to dark brown, purple, and red.

3 Grain shape and size vary according to specie. , for example, is smooth, broad, and rounded while is narrow, long, and marked by a 'dent' formed during ripening as its soft starch shrinks.

Hybrid corn is the result of a cross between inbreds. Inbreeding can improve corn yields, pest and disease resistance, content lysine (and therefore protein quality), stress tolerance, and resistance of lodging, but inbreds are characterized by their lack of vigor. Crossing of inbreds, resulting in hybrids, restores previous levels of vigor. With the commercial introduction of hybrids in the early 1900s and their improvement in the years which followed, corn yield potentials have increased substantially.

The kernel is composed of (1) endosperm, the starchy portion contained within the bran envelope; (2) germ, which is unusually large in corn, comprising 10-12% of the weight of the kernel and 30% of its volume; amd (3) the hull (bran), a thin outer kernel coating with'a high fiber content (ILO/JASPA, 1981).

Starch is the primary component of the corn kernel, making up about 72% of its dry weight. The protein content is 10%; oil, 4.5%; fiber, 3.5%; and miscellaneous, 10%. (Spaeth, 1982) protein Corn is of relatively poor quality due to its deficiency of the essential amino acids, tryptophan and lysine. Use of corn flour for bread baking is limited by the lack of gluten-forming proteins.

Harvest and Preparation

Corn is harvested when accumulation of starch and protein in the grains is complete. A dark spot on the grain opposite the germ and a moisture content of 30-40% are signals of maturity (FAO, 1981). When corn is harvested too early drying costs are higher; when harvested too late, the risk of damage by insects and adverse weather conditions increases. Manual harvesting results in fewer losses and a cleaner raw material, but mechanical harvesting is the norm, except in small-scale agriculture.. Several steps are involved in the post-harvest, pre-milling preparation of corn: drying, husking, shelling, and storage (optional).

4 Drying can take place before or after husking. storage When long-term is the objective, drying prior to husking is preferable, since the helps protect the grain from However, insects and breakage. the drying time involved is considerably longer than without. with The moisture content of corn should be reduced to 13% or less for storage in bags bulk and 12% or less for storage (ILO/UNIDO, 1984). At these levels germination, micro-organism proliferation, and insect infestation minimized. are

Choice of drying method depends on resource post-harvest availability, weather, production levels, and intended use. Most common in developing countries is sun drying. mechanical A description of driers (batch and continuous) and a comparison with sun drying are provided in this series' Rice Profile. Husking removes the leaf sheaths which surround It the ears of corn. can be done mechanically or manually. Manual husking performed either is bare-handed or with a specially-designed husking hook attatched to a glove. Shelling removes the individual grains from the cobs. take place It should as near as possible to the harvest site so as to minimize transport costs. A moisture content of for shelling 13-14% is best in order to avoid grain damage and high power consumption costs which result when the grain (Ibid.) is too damp.

The ILO (1984) lists and describes five types of (1) hand-held corn shellers: devices; (2) small rotary hand shellers; (3) free-standing hand shellers; (4) small-powered/large hand-operated shellers with cleaning and grading (5) large-powered facilities; and shellers with loading, cleaning, grading, and bagging facilities. Shelled corn output ranges hand-held from 15 kg/hr for devices to 4 tons/hr for large-scale shellers. General problems of grain storage are discussed Profile. in the Rice

Quality

Corn grain quality is measured in terms of: either (1) color, which is white, yellow, or mixed; (2) variety, where different varietal characteristics are demanded by different test weight end-users; (3) per bushel; (4) moisture; and (5) amount and nature of damage and non-corn impurities (Matz, 1969).

5 Other factors are of interest to users with specific needs. For example, protein content is important when corn is to be used for animal feed; starch type and content is critical when the corn is to be wet-milled; and lack of off-flavors is necessary for breakfast cereal production.

Factors upon which grain quality depends are discussed at length in Matz (1969), Cereal Science.

6 INTRODUCTION TO MILLING

Corn milling is of two types: Dry milling and wet milling. The objectives of dry milling are threefold: (1) to maximize yield of the grits while minimizing its impurity content; (2) to maximize the grit (as opposed to flour) yield; maximize and (3) to germ recovery in large-particle form, so as to minimize oil losses. (Kent, 1983)

Dry millinq involves the following operations: cleaning conditioning and of the grain; degerming to remove germ and hulls, use of rolls to remove attached hulls and flatten attached use of germ, sifters to scalp flattened germ fraction and grade ground endosperm into grits, meal, cones and flour; use of aspirators to remove loose hulls from grits and dryers for finished moisture product specifications. This process is very similar to wheat dry that of milling, as described in detail in the Profile on Wheat. (See Kent [1983] for more information.) wheat It differs from dry milling in that the preferred final product for grits while corn is that for wheat is flour. Wet cleaning is still used in some cornmills to separate impurities. Dry-milled corn products include grits (flaking, coarse, medium, and fine); meals (coarse and fine); and flour. Oil-containing germ is the most important by-product. Most dry-milling products can be consumed without further processing.

Wet millinq is a combination of physical and chemical which separate operations corn into its major components: starch, gluten, fiber, and germ. The principal products are starch, a source of glucose, and germ, a source of .

Wet milling involves: cleaning and steeping; degerminating; separation; germ grinding; screening; and starch separation, washing, and drying, as illustrated in Flowchart 1. These operations wet-milling are discussed in the remainder of this section.

7 1Onnstw|stt"owwtr,;

Gr Cconcentrat s

I~~~~~~~~~~~~~~~ gir.ndingr Oil xta.Cd@rift trf ai c o ldd glucose

Str msingt l

Clenin and Steeping nO I Dextrn Corn syrup Corn syrup Iotfgn solids (liquid glue Solid glueas

(Adspted frolm Anom. FeiA 1958, 7- 291; Com ix /dny,5dl edido, Ca 1ndusis Resxus: Funatio Inc., New Yodi; and S.A. Ma (EdL) OGm TrZboi Avn Publ. CAL Inc. WestpM on;Gn., U.S.A., 1970.)

Flowchart 1: Corn Wet-Milling Process Impurities~~l9fondiconae Source: siiaKent (1983)Glto ths n ric andwet

WET MILLING

Cleaning and Steeping

Impurities found in corn are similar to those in rice and wheat. They are removed by the same cleaning processes with one exception (as mentioned above): wet cleaning is still used in some mills, but in most cases impurities are removed with a combination of vibrating sieves or oscillating sieves and aspirators.

Steeping is a conditioning operation whereby cleaned, shelled corn kernels are softened. This is accomplished by soaking the corn in a large tank filled with a warm (122 degrees F, or 50 degrees C), circulating solution of water and 0.02-0.03% sulphur dioxide for 28-48 hours, until the moisture level of the kernel reaches 43-45% (Kent, 1983).

The objective of steeping is to (1) remove some of the solubles; (2) toughen the germ; and (3) soften the protein matrix which binds the starch granules in the endosperm. The weak sulphuric

8 acid solution formed by the sulphur dioxide and water control fermentation helps to and break down the protein matrix, thereby facilitating its separation from the starch. Steeping water contains approximately 6% solids, which is protein some 35-45% of (Ibid). The high-protein solids are settled of the solution, dried, out and used as gluten for animal feed; the steep water can then be re-used.

Degerming/Germ Separation

In degerming, the bran is loosened and the the germ is separated from endosperm with minimal crushing as the softened gently broken kernels are open. The objective is to remove the germ without breaking it. Since the germ contains a high its proportion of oil, removal reduces the risk of rancidity in storage. A Fuss mill is often used in the degermination 1983). process (Kent, It consists of a chamber containing two plates, one upright metal of which rotates while the other remains stationary; each Eis covered with extruding metal teeth. mixture A water and maize is introduced into the chamber, where the grain cracked open and is coarsely ground. The germ is released in the process. The density of the corn/water solution to the is then adjusted point where the germ floats while grits and hulls Separating troughs sink. are used to settle the hulls and grits while the germ is drawn off the surface. In modern hydrocyclones corn mills replace flotation equipment in separating These are less the germ. bulky, less costly to maintain, and more efficient in removing the germ. Upon its removal, the corn germ is washed to remove any remaining starch. Following water expulsion and drying oil of the germ, the is extracted and purified. (See Profile on more information Oilseeds for on this process.) The germ cake from which the oil has been removed is used for cattle feed.

Grinding/Screening

The solution of coarsely-ground, degermed endosperm, water hull, and passes through a series of impact mills or attrition These finely grind mills. the endosperm, which remains suspended in a

9 water slurry. Larger particles of hull and fiber are screened out, while fine fiber particles are filtered out by means of gyrating 'shakers' covered with finely-woven nylon cloth.

Starch Separation/Washing/Drying

The difference in specific gravity between the heavier starch and the lighter gluten contained in the slurry makes it possible to separate the two by centrifuging. First the density must be adjusted by dewatering (filtering) of the solution. Then the solution is pumped into a continuous, high-speed centrifuge, which extracts the gluten. Re-centrifuging in hydrocyclones removes any gluten protein that remains. Often the starch is also washed to remove any residual solubles.

Starch to be used in industrial applications is then dried to a moisture content of 10-12% in kilns, or in tunnel or flash driers (Ibid). The moisture content is further reduced (5-7% in the U.S.; 1-2% in the U.K.) by vacuum drying.

The remaining starch is used for conversion into a variety of products, such as glucose syrups, dextrose, and high fructose corn syrups (HFCS). It can also be used as a feedstock in the production of ethyl alcohol by a fermentation and distillation process.

The gluten is dried and will yield up to 60% protein. It is marketed as gluten meal (60% protein), or it is used as an ingredient in corn gluten feed (at 21% protein). Further separation of the gluten, by means of solvent extraction and precipatation, produces zein, an alcohol-soluble protein used as a protective coating for confections, grains, and nuts. It is also used as a binding agent in the manufacture of pharmaceutical tablets and for other industrial purposes.

10 0

MARKETING ASPECTS

Grade/Quality

Because most corn is traded in whole grain, rather than in milled form, accepted international standards are lacking. Of importance, major however, is the nutritional value of milled corn, especially in the developing countries of Africa and Latin America, where corn is an important element in the diet of populations. the Three main types of corn meal are consumed in developing countries: whole meal, from which the germ been has not removed; bolted meal or partly de-germed meal; and de-germed or super-sifted meal, which contains little or no germ. The nutrient composition of each is estimated in Table 2. caloric While the content of the three is essentially the same, whole meal is preferred when nutritional concerns dominate. Furthermore, whole meal extraction rates, at 97-99%, are substantially higher than those of either bolted meal (80-96%) or sifted meal (60-75%) (ILO/UNIDO, 1984). This must be weighed against the relatively . shorter shelf life of whole meal and, in general, consumer preference for sifted meals.

Uses

The products of dry processing and their uses include: Grits, used in the production of ready-to-eat cereals, brewing as a adjunct, and consumed directly as porridge. Industrial applications include wallpaper paste and the manufacture of sweeteners by direct hydrolysis.

Meal, used in bakeries as a raw material, in infant cereals. foods, and in Industrial applications include use as a dusting agent, in soaps, and in floor wax. Flour, used in making bread, infant foods, and cereals; and as a filler in meat products.

0 11 Product/ Whole meal Bolted meal De-germed meal Nutrient (partly de-germed) (super-sifted)

Moisture.(percentage) 12-13 12-13 12-13 Calories per 100 gr 353-356 360 363 Protein (percentage) 9.3-9.5 9.3 7.9-8.4 Fat (percentage) 3.8-4.5 Variable 02) 1.2-2.0 Carbohydrates (percentage) 73.4 Variable (74) 78.4 Fibre (percentage) 1.9-3.0 0.7-1.0 0.6-0.7 Ash (percentage) 1.3 n.a. 0.5 Calcium (mg per 100 gr) 7-17 6 5-6 Iron (mg per 100 gr) 2.3-4.2 1.8 1.1-1.2 Thiamine (mg per 100 gr) 0.3-0.45 0.35 0.14-1.18 Niacin (mg per 100 gr) 1.8-2.0 1.3 0.6-1.0 Riboflavin (mg per 100 gr) 0.11 0.09 0.08

Note:Variations in data according to sources may be explained by variations in the raw materials analysed and/or variations in the quality of meal.

Sources: Schlage (1968); FAQ (1968); FAQ (1953); FAQ (1954); Uhlig and Bhat (1979).

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Table 2: Nutrient Composition of Different Types of Corn Meal Source: ILO/UNIDO (1984)

12 Uses of starch produced in wet milling include: Dry Starch (unmodified), with industrial applications manufacture in the of paper, textiles, adhesives, and packaged foods. Sweeteners, i.e., corn syrups, such as HFCS, dextrose, fructose, and used in the production of processed foods. Ethyl Alcohol, produced by fermentation and distillation using corn starch as a base.

Characteristics of the Market

Corn ranks third in world tonnage of grains wheat produced, behind and rice. The U.S. is the leading producer, supplying nearly half of the world's total. The developing group, countries as a led by Brazil, Argentina, Mexico, and South Africa, produce about 1/4 of the total; and the centrally economies, planned led by China, produce about 1/6 (Considine, 1982). Principal . corn utilization categories include human food, industrial applications, animal feed, and seed. Table 3 shows the domestic proportions of these categories for countries. selected

Table 3: Domestic Utilization of Corn in Certain Countries Source: Kent (1983)

Total Percentage of totaldomestic usage domestc Source usage Human Animal Country Year of (thousand t) food Industrial' feed Seed data EEC: Bel/Lux '79/80 1184 2 30 68 - I France '79/80 7294 1 8 89 2 1 Germany, FR '79/80 3003 10 13 76 1 1 Italy '79/80 9580 3 1 96 - I Netherlands '79/80 2577 2 10 88 - I U.K. '79/80 3133 10 50 40 - 1,2 Australia '78 155 39 - 61 < 1 3 Austria '78 1270 1 7 91 < 1 3 Canada '78 4476 18 - 81 1 3 Japan '78 10,483 3 16 81 Portugal - 3 '77 1770 15 < 1 83 Spain 1 3 '78 5493 - 8 92 U.S.A. < 1 3 '78 111,891 8 3 88 <1 Yugoslavia 3 '78 9955 5 26t 68 1 3 lIncluding wate tlncluding 23% waste.

13 Unlike trade in wheat and rice, trade in corn is generally in unprocessed, whole kernel form (Uhlig, 1979). This is because (1) most exports of corn go to industrialized countries to be used as animal feeds (animals are typically fed whole meals, which do not store well when milled); and (2) it is easier to handle and transport corn in bulk form. It is estimated that some two-thirds of all corn produced is consumed as animal feed (Ibid).

The export market for corn is dominated by the U.S., which supplies almost three-fourths of the total (Ibid). Consequently, U.S. domestic supply and demand fluctuations substantially impact world prices.

Retail prices of sifted meals are generally greater than those of whole meals at the domestic level, although they vary both inter- and intra-nationally. This difference reflects (1) the lower extraction rate for sifted flour production; (2) the higher packaging cost of sifted flour, which is generally available in one- or two-pound bags; (3) the added operating costs and profit margins of intermediaries; (4) advertising; and (5) higher transport costs (sifted are often transported greater distances due to their better storage ability) (ILO/UNIDO, 1984). Global consumption of corn has been growing by about 3.5% (per annum) since 1961 (World Bank, 1982). The U.S. alone accounts for about half of total world consumption.

The U.S. is one of the few countries in the world in which corn syrup sweeteners play a significant role; this is due to (1) the high support price for sugar; (2) the relative abundance and low price of corn in the U.S.; and (3) the high investment costs and high technology operations involved in its production. While corn syrup sweeteners have been produced for over a century, it wasn't until the early 1970s that demand began to increase rapidly. Two factors contributed to this boom: First, a process was developed whereby glucose, the principal ingredient of conventional corn-syrup sweeteners, is converted to fructose, which is considerably sweeter. This led to the development of HFCS, which now dominates the corn sweetener market. Second, and equally important, were the high international sugar prices of 1974 (MacNally, et al, 1984). Whereas starch-based sweeteners comprised 5% of total world sweetener consumption in 1970, by 1980 this share had risen to 9% (Ibid). By 1990 this figure is projected to increase to 11%.

14 Aspartame, a synthetic, non-nutritive sweetener which is 150-200 times as sweet as sucrose (Stegink and Filer, to make 1984), is expected important inroads in the world sweetener market years. Its in coming advantages over HFCS include (MacNally, et al, (1) it is cheaper 1984): to produce; (2) it is easier to handle; and (3) it can be used by households as well as industries available since it is in both dry and liquid forms. Unlike other non-nutritive, low-calorie sweeteners such saccharin, as cyclamates and there is no evidence of adverse health effects no unpleasant aftertaste. and no

OTHER FACTORS

Storage

Factors affecting storage potential of milled corn and moisture include fat content, the presence of contaminants, and storage conditions, including packaging material, air temperature, and level of humidity. Because the fat content of whole high (3-4%, meal is so or 2-3 times that of sifted meal), its storage potential is significantly limited. Although great experience varies a deal, periods of four to eight weeks for whole meal months to two years and six for sifted meal can be used as indicative for storage under good conditions.

Environmental Concerns

Unlike wheat milling, corn dry milling produces very little due to the larger dust product granulation and the fat content of the products. Due to the extensive use of aspirators, constantly fine dust is removed and collected into filters (cyclones).

Economies of Scale Uhlig (1979) illustrates the potential impact of economies scale in corn of dry-milling with the following example: A 120-ton per day (tpd), modern mill produces 2.4 times tpd mill, the output of a 50 at only 1.4 times the cost. Economies of scale are even greater in wet milling.

15 By-Products

Principal by-products of wet-milled corn include:

Corn Oil, a high quality cooking oil extracted from the germ. It is characterized by a golden color, delicate flavor, the presence of polyunsaturated fatty acids, and high caloric and nutritional value.

Corn Oil Cake, the residue from the germ once its oil has been extracted. Because of its relatively high protein content (20%), it is a key ingredient in livestock feeds and pet foods.

Corn gluten, a residual of the wet milling process. It contains some 60-70% protein and consequently is valuable as an animal feed ingredient. It is also an important source of energy, vitamins, minerals, and fiber. Corn gluten feed is frequently fed to dairy cows and poultry. Corn gluten is also used as a corkbinding agent, an additive for printing dyes, and in the manufacture of pharmaceuticals.

Zein, an alcohol-soluble protein which can be removed from the gluten. It is used as a binder in tablet making and as a protective coating for confections and nuts.

Bran, which has a high fiber content, as well as about 9% protein. It is used in combination with gluten in the formation of corn gluten feeds.

Steepwater, the high-protein, dry solids portion of which is settled out, dried, and used in the production of animal feeds. The liquid which is not recycled (i.e., used for steeping) is concentrated and used as a culture medium.

Corn Cobs, which are used in a variety of ways, e.g., as litter for animals, mulch, an ingredient in animal feeds, fillers for explosives, plastics, glues, and tires; in abrasives for soaps; in cleaning and polishing; and in the production of insecticides and pesticides.

16 BIBLIOGRAPHY

* 01. Baron, C.G. (1980) Technology, Employment, and Basic Needs Food Processing in Developing Countries. Oxford: Pergamon Press. 02. Berger, J. (1962) Maize Production and the Manuring Maize. of Geneva: Centre D'Etude de L'Azote. 03. Christensen, C.M. (1982-3rd Edition) Storage of Cereal Grains and their Products. St. Paul: American Association of Cereal Chemists, Inc. 04. Considine, D.M. (1982) Foods and Food Production Encyclo- pedia. New York: Van Nostrand Reinhold Company. 05. FAO (1981) Cereal and Grain-Legume Seed Processing: Tech- nical Guidelines. Rome: FAO.

06. Horwitz, . D. L. and J.K. Bauer-Hehrling (1983) Can Aspar- tame Meet Our Expectations? Journal of the American Dietetic Assn, 83 (2):142-146. 07. ILO/JASPA (1981) Appropriate Technologies in Cereal Milling and Fruit Processing Industries. Addis Ababa: JASPA.

08. ILO/UNIDO (1984) Small Scale Maize Milling. Geneva: ILO Office.

09. Kent, N.L. (1983-3rd Edition) Technology of Cereals. Oxford: Pergamon Press. 10. Leiva, J. Plant for the Combined Production of Wheat and Flour Precooked (Maizemeal). Diagram No. 68, September, 1979.

11. Matz, S.A. (1969) Cereal Science. Westport: The Avi Publishing Company, Inc. 12. MacNally, W., W. David, and D. Flood (1984) Sugar Study. Washington: World Bank

17 13. Pyke, M. (1981-4th Edition) Food Science and Technology. London: John Murray (Publishers) Ltd. 14. Roncaglia OPR (no date) From Maize/Corn to Flour. Modena (It): Officine Roncaglia.

15. Spaeth, R.W. (1982) Corn Wet Milling Processing and Products in The China Encounter: Technical Papers from the First Grain Milling and Baking International Symposium. Kansas City: Sosland Co., Inc.

16. Stegink, L.D. and L.J. Filer (1984) Aspartame: Physiology and Biochemistry. New York and Basel: Marcel Dekker, Inc.

17. Uhlig, S.J. and B.A. Bhat (1979) Choice of Technique in Maize Milling. Edinburgh: Scottish Academic Press.

18. USDA (1979) Conversion Factors and Weights and Measures for Agricultural Commodities and their Products. Washington: USDA.

19. World Bank, Commodities and Export Projections Division (1981) Sugar Handbook. Washington: World Bank.

20. World Bank, Commodities and Export Projections Division (1982) Grains Handbook Washington: World Bank.

21. World Bank, East Asia and the Pacific Projects Dept. (1976) Philippines: Appraisal of the 2nd Grain Processing Prolect. Washington: World Bank.

22. Wyss, Ed. Development of Corn (Maize) Processing. Buhler Diagram No. 58, November, 1974.

18 .

ANNEX I:

EXAMPLES OF INVESTMENT AND OPERATING COSTS

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i CORN MILLING EXAMPLE 1 Page 1 of 2 Representative Investment and Operating Costs

CORN (MAIZE) MILLING ______

Establishment of a mill to process dried corn (maize) into flour.

COUNTRY: Kenya

NOTE: These data are intended as indicative only and are unique to the time, circumstance, and country of the identified investment. Their applicability to other situations may vary considerably. Annual Production at Full Development (in '000 tons): 672.00

.2 Capacity Utilization at Full Development: 80.00%

US$ '000 mid 1982 prices I. Investment Costs: Total

Land & Building Machinery 1.36 hammer mill & accessories other 10.00 Sub-Total Machinery 0.53 Transport 10.53 Installation 0.32 0.27 Pre-Operational Expenses 0.84 Total Investment Costs 13.32

- CORN MILLING EXAMPLE 1 Page 2 of 2

Representative Investment and Operating Costs

NOTE: These data are intended as indicative only and are unique to the time, circumstance, and country of the identified investment. Their applicability to other situations may vary considerably.

US$ 'ooo mid 1982 prices Total II. Annual Operating Costs at Full Development: (excluding raw materials) ------Variable Costs wages 2.91 fuels 1.82 consumables 0.33 Sub-Total Variable Costs 5.05 Fixed Costs administration & overhead 2.77 maintenance & repair 0.14 insurance 0.91 depreciation buildings 0.14 machinery 1.46 Sub-Total Fixed Costs 5.41

Total Operating Costs 10.47

NOTES: Exchange rate - Kenya Shillings 11.00 US$ 1.00 Detailed breakdown on local and foreign costs is not available. Details on raw material costs are not available. Depreciation at 10% on buildings and 12.5% for machinery & equipment. Full development production is achieved in the second year of the project. Data are net of contingencies. CORN MILLING EXAMPLE 2 Page 1 of 2

Representative Investment and Operating Costs …------

CORN (MAIZE) MILLING

Establishment of a dry maize milling plant to produce maize flour and maize bran and maize germ from by-products.

COUNTRY: Uganda (M/S Arocha Millers Ltd.) NOTE: These data are intended as indicative only and to the are unique time, circumstances, and country of the identified investment. Their applicability to other situations may vary considerably.

Annual Full Development Production (in ------tons): maize flour 1600.00 maize bran 220.00 maize germ 180.00

Capacity Utilization at Full Development: 100.00%

…-----…US$ '000 … early 1984 prices Local Foreign I. Investment: Total ______Land Acquisition/Development 1.00 1.00 Building Construction 50.00 Machinery 50.00 imported 6.67 350.00 356.67 local procurement 3.33 51.33 54.67 Sub-Total Machinery 10.00 401.33 411.33 Import Duties 16.00 16.00 Utility Upgrade 5.00 Pre-Operating 5.00 Costs 97.13 97.13 Total Investment Costs 179.13 401.33 580.47

-~~~~~~~~~~~------CORN MILLING EXAMPLE 2 Page 2 of 2

Representative Investment and Operating Costs

NOTE: These data are intended as indicative only and are unique to the time, circumstances, and country of the identified investment. Their applciability to other situations may vary considerably.

US$ '000 early 1984 prices Total

II. Annual Full Development Operating Costs: ------Variable Costs raw materials 233.33 packing materials 36.67 factory chemicals 2.67 production labor 3.57 electricity/water/fuel 22.93 Sub-Total Variable Costs 299.17 Fixed Costs overhead salaries 5.37 administration 21.47 depreciation 109.20 maintenance 6.57 Sub-Total Fixed Costs 142.60

Total Operating Costs 441.77

NOTES: Exchange rate Ugandan Shillings 300 = US $ 1.00 Details on foreign exchange component of operating costs not available. Full development is approximately four years after project start-up. Data are net of contingencies. CORN MILLING EXAMPLE 3 Page 1 of 3 Representative Investment and Operating Costs

MAIZE MILLING ______Establishment of a processing facility to produce grits and other products from maize flour.

COUNTRY: Yugoslavia

NOTE: These data are intended as indicative only and are unique to the time, circumstance, and country of the identified investment. Their applicability to other situations may vary considerably.

Annual Full Development Production (tons): ------maize grits 1575.00 brewery grits 13875.00 maize flour 150.00 corn meal 700.00 550.00 maize gen 1250.00 livestock feed 12840.00 Capacity Utilization at Full Development: 100.00%

------US$ 000------end 1980 prices Local Foreign Total I. Investment Costs: ______Civil Works silos 2595.19 1112.22 3707.41 silo preparation 215.63 47.33 262.96 workshop 125.00 41.67 407.41 warehouse 305.56 101.85 129.63 sewage system 105.00 24.63 37.04 water system 30.00 7.04 318.52 electric system 222.96 95.56 318.52 processing plant 2307.41 988.89 3296.30 Sub-Total Civil Works 5906.74 2419.19 8477.78

S CORN MILLING EXAMPLE 3 Page 2 of 3

Representative Investment and Operating Costs ------

NOTE: These data are intended as indicative only and are unique to the time, circumstance, and country of the identified investment. Their applicability to other situations may vary considerably.

------US$ 000------end 1980 prices Local Foreign Total Investment Costs (cont'd) ______Equipment & Machinery processing (domestic) 432.44 288.30 720.74 processing (foreign) 1604.63 1604.63 grain dryer 254.81 382.22 637.04 boiler (coal) 299.15 365.67 664.81 mechanical/electrical (silo) 971.22 827.37 1798.59 installation 192.59 48.15 240.74 transportation 116.67 12.96 129.63 insurance 22.22 22.22 Sub-Total Equipment & Machinery 2289.11 3529.30 5818.41 Engineering & Design 420.22 74.15 494.37 Supervision & Start-Up 232.15 232.15 Training 51.85 22.22 74.07 Customs & Duties 529.52 529.52

Total Investment Costs 9429.59 6044.85 15626.30 ______------______------CORN MILLING EXAMPLE 3 Page 3 of 3 Representative Investment and Operating Costs

NOTE: These data are intended as indicative only and are unique to the time, circumstance, and country of the identified investment. Their applicability to other situations may vary considerably.

US$ '000 end 1980 prices Total Cost II. Full Development Annual Operating Costs: ------Variable Costs raw materials utilities 5967.22 502.37 packing materials production 356.67 labor 165.19 Sub-Total Variable Costs 6991.44 * Fixed Costs maintenance insurance 38.74 management 59.48 staff 43.56 common consumption Sub-Total Fixed 85.63 Costs 227.41 Total Operating Costs 7218.85

DATA SOURCE: Adapted from World Bank project appraisal report for the Kosovo Agro-industries and Agricultural Development Project, (3286-YU), Volume II, Working Paper WP-3.10, Maize Processing Plant. NOTES: Exchange rate - Dinar 27.00 = US $ 1.00 Full production is approximately year five following start-up. project Details on foreign/local cost breakdowns for operating costs are not available. Data do not include contingencies. I~~~~~~~~~~~~~~~~~~~~~

ri~~~~~~~~~~~~~~~~~~~~~~~~ * CORN MILLING EXAMPLE 4 Page 1 of 2

Representative Investment and Operating Costs

CORN (MAIZE) MILLING Establishment of a corn (maize) milling facility that will produce corn starch, corn syrup, corn flour, and fructose. COUNTRY: Korea (Doosan Grain Co., Ltd.) NOTE: Data are intended as representative only and are unique to the time, country, and circumstance of the identified investment. Their applicability to other situations may vary considerably.

ANNUAL PRODUCTION AT FULL DEVELOPMENT ('000 tons): corn starch 66.00 (64,000 tons will be used for products listed below) corn syrup 19.80 corn grits/flour 33.00 O fructose 8.20 high fructose 21.50 _~~ PER CENT OF FULL CAPACITY UTILIZATION: corn starch 40% in 2nd year of project, rising at 10%/p.a. corn syrup 50% in 2nd year of project, rising at 10%/p.a. corn grits/flour 35% in 2nd year of project, rising fructose/ at 5%/p.a. 60% in 2nd year of project, rising at 10%/p.a. high fructose

------US$ '000------mid-1981 prices Local Foreign Total Investment Costs: ______land 877.19 877.19 building 4334.80 4334.80 . structures 1331.87 equipment 1331.87 domestic 5043.86 5043.86 imported 4750.00 sub-total 4750.00 5043.86 4750.00 9793.86 CORN MILLING EXAMPLE 4 Page 2 of 2

Representative Investment and Operating Costs

NOTE: Data are intended as representative only and are unique to the time, country, and circumstance of the identified investment. Their applicability to other situations may vary considerably.

…------…US$ '000 … mid-1981 prices Local Foreign Total

transport & installation 1346.49 1346.49 equipment operation training 200.00 200.00 utility upgrade 2141.81 2141.81 pre-operational expenses 1418.13 1418.13

Total Investment Costs 16494.15 4950.00 21444.15

II. Full Development Annual Operating Costs (excluding raw materials) ------Fixed Costs Administration & Overheads 2271.94 Depreciation 1725.89 Sub-Total Fixed Costs 3997.83 Variable Costs Labor 1286.64 Other 1514.62 Sub-Total Variable Costs 2801.26

Total Operating Costs 6799.09

NOTES: 1. Exchange rate - Korean Won 684 = US$ 1.00. 2. Data are net of contingencies. 3. Full development is year 4 after project start-up. 4. Local/foreign cost breakdown for operating costs is not available. -

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ANNEX II:

CONVERSION TABLES

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I WEIGHTS AND MEASURES avoirdupois

Ton: short ton 20 short hundredweight, 2000 pounds; 0.907 metric tons;

long ton 20 long hundredweight, 2240 pounds; 1.016 metric tons. Hundredweight cwt; short hundredweight 100 pounds, 0.05 short tons; 45.359 kilograms; long hundred weight 112 pounds, 0.05 long tons; 50.802 kilograms. Pound lb or lb av; also $; 16 ounces, 7000 grains; 0.453 kilograms. Ounce oz or oz av; 16 drams, 437.5 grains; 28.349 grams. Dram dr or dr av; 27.343 grains, 0.0625 ounces; 1.771 grams. Grain gr; 0.036 drams, 0.002285 ounces; 0.0648 grams.

Troy Pound lb t; 12 ounces, 240 pennyweight, 5760 grains; 0.373 kilograms. Ounce oz t; 20 pennyweight, 480 grains; 31.103 grams. Pennyweight dwt also pwt; 24 grains, 0.05 ounces; 1.555 grams. Grain gr; 0.042 pennyweight, 0.002083 ounces; 0.0648 grams. METRIC SYSTEM

Square kilometer sq km or km2 ; 1,000,000 square meters; 0.3861 square mile. Hectare ha; 10,000 square meters; 2.47 acres. Hectoliter hl; 100 liters; 3.53 cubic feet; 2.84 bushels; Liter 1; 1 liter; 61.02 cubic inches; 0.908 quart (dry); 1.057 quarts (liquid). Deciliter dl; 0.10 liters; 6.1 cubic inchs; 0.18 pint (dry); 0.21 pint (liquid). Centiliter cl; 0.01 liters; 0.6 cubic inch; 0.338 fluidounce. Metric ton MT or t; 1,000,000 grams; 1.1 US tons. Quintal q; 100,000 grams; 220.46 US pounds. Kilogram kg; 1,000 grams; 2.2046 US pounds. Gram g or gm; 1 gram; 0.035 ounce. 0-

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ANNEX III:

CORN PRODUCT CONVERSION FACTORS

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is I Annex III

Conversion Factors for Corn and Corn Products Source: USDA (1979)

Faccors for converting-- :Bushels of:Pounds of :Pounds of :Pounds of Product : corn to : product : corn to : product :pounds of :to bushels:pounds of :to pounds Droduct of corn : product of corn

Corn, shelled 2/ ; 56.0 0.0179 1.00 1.00

Corn meal, degermed ; 31.6 .0316 .564 1.77 Corn meal, nondegermed, regular : 50.0 .0200 .893 1.12 Corn flour : 33.0 .0303 .589 1.70 Corn grits or hominy grits : 29.0 .0345 .518 1.93 Hominy, canned 145.0 .0069 2.589 .39 Hominy, dry 27.3 .0366 .488 2.05

Cornstarch, 10 percent moisture 3/ 34.4 .0291 .614 1.63 Cornstarch, pearl, 12 percent moisture or laundry starch 3/ 35.2 .0284 .629 1.59 Corn sugar: Dextrose, hydrate, 8 percent moisture : 30.0 .0333 .536 1.87 Dextrose, anhydrous, moisture free 4/ 27.5 .0364 .491 2.04 Corn sirup, 43° Baume, 19.73 percent moisture, 42 percent dextrose equivalent 3/ 37.6 .0266 .672 1.49

Corn flakes or corn cereal 21.5 .0465 .384 2.60 Corn-soya cereal 5/ 33.6 .0297 .60 1.66

Precooked infant-type mixed cereal 500.0 .0020 8.929 .11 Premixed cereal : 101.8 .0098 1.818 .55 Pancake mix 330.0 .0030 5.882 .17 Pudding powder, 33 percent cornstarch 103.8 .0096 1.854 .54 Chocolate pudding powder, 18 percent cornstarch 186.6 .0054 3.333 .30 Corn snacks : 67.5 .0148 .830 .1205 Corn oil: Refined 1.6 .625 .0286 35.0 S Crude 1.8 .556 .0321 31.1 Corn feeds, gluten feed, gluten meal, and corn oil meal or cake 6/ : 14.9 .0671 .266 3.76 Hominy feed : 20.0 .050 .357 2.30

1/ All factors are based on 56 pounds of shelled corn per bushel. Product spectrum varies with corn milled and product mix sought. Factors presented are based on maxi- mum yield of product. 2/ Five bushels of shelled corn - 1 barrel; 10 bushels of ear corn - 1 barrel; 70 pounds of ear corn - 1 bushel of shelled corn. 3/ From 17-percent moisture corn. 4/ Based on continued reprocessing of uncrystallized dextrose liquors. 5/ Corn-soya cereal contains approxima.ely 34 percent sova flour. 6/ Conversion factors cover all corn feeds combined. Data are not available to show separate components of corn feeds, though gluten feed is generally about 55-60 percent of total corn feeds, gluten meal around 40 percent, and corn oil meal only about 2 percent.