Wheat Milling

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Global Standard: Wheat Milling Business – Project & Background Considerations
Table of Contents
I. Scope and Application………………………………………………….……….……….…..1

II. Management Responsibilities………………………………………………….………….…1
III. References……………………….……………......................................................................1
IV. Definitions………………………………………………………………………….………..2
V. Global Industry Generalities .…………………………………………………..………..…..5
VI. The Wheat Milling Process………………………………………………………………….8
VII. Business Model…………………………………………………….…………………….....10
VIII. Key Success Factors……………………………………………………………………….10
IX. Looking Forward…………………………………………………………………………...11
X. Innovation and Functional Flours……………………………………………………………13
XI. Technical Standards………………………………………………………………………….15
Appendix I - Approval Spreadsheet……………………………………………………………..16
Appendix II - Milling Flowsheet……………………………………………………………..17/18
I. Scope and Application

This standard provides information and policies to explain the general background
requirements for the wheat milling business and an explanation of the basic process, and this
should be applied in any new projects (M&A, brownfield or greenfield) completed after the
date of this publication.
II. Management Responsibilities

The person who has the operational management role in each of the Bunge Operating
Companies (OpCo’s including: BBR, BSC, BNA, BEMEA, and BAS) has the responsibility
to lead, enforce and manage the standard implementation process. Each location will vary in
title and responsibility, but final authority rests with the Bunge Global Head of Supply Chain
& Operations based in White Plains.
III. References
Bunge Limited: Major Capital Projects Planning Policy
Bunge Limited Policies and Procedures Manual
BEMEA Project Management Manual
BAS Project Management Manual
BNA Construction Management Manual
Environmental Check-list for New Project Reviews
Environmental Requirements for New Projects in Bunge
Equipment Installation and Start-up Practices (ARROP Requirements)
Global Industrial Standards & Total Cost of Ownership
Procurement Check List for New Projects - v7
Project Management Community - Safety and Health Checklist for New Projects
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IV. Definitions and Acronyms

AJH: Authorities Having Jurisdiction: Refers to governmental entities whether local,
regional or federal that may have laws, codes or other regulations that specify compliance
requirements for building design, equipment design/installation/testing/operation,
construction, safety, environmental performance, etc.
ARROP: Asset Reliability and Reporting Optimization Program: This is the name for
Bunge’s total reliability program.
Business Units: Within the different operating companies of Bunge, this is one of the terms
used that refers to business entities that may be essentially the same. Similar business
entities within the operating companies may also be referred to as segments, countries or
profit and loss centers.
CAPEX: Capital Expenditure
CPC: CAPEX Project Committee: A Bunge Limited Committee for CAPEX Project review
and approval that consists of the Bunge Limited Chief Executive Officer, Chief Financial
Officer, Chief Development Officer and Segment Industrial Leadership.
CPM: Critical Path Method: A method of scheduling the various activities of a project
such that they are sequenced in the order in which they must be performed, where the start
of an activity depends on the completion of its predecessor, thus sifting out activities that
are independent and can be performed simultaneously. The string of dependent activities
that produce the longest overall time to complete is known as the critical path. While this
can be created manually, most computer scheduling software programs can identify the
critical path.
DCF: Discounted Cash Flow: The value of the anticipated revenue stream from an
investment at any given date using a specified discount rate. Bunge has standard DCF
models for use on CAPEX projects with the economic variables specified for the OpCo.
EHS: Environment, Health, and Safety
EMR: Experience Modification Rate: The rating assigned by an insurance company based
on the contractor firm’s injury experience (and associated cost) relative to other comparable
contractors with similar exposure. A rating of 1.0 is average. Below 1.0 is better than
average.
EPC: Engineer, Procure and Construct: One of the options for pursuing third party
contracting of the key CAPEX project steps of engineering, equipment procurement and
project construction.
FEL: Front-End Loading: A method of project development utilizing a predetermined
percentage of resources (time, personnel, and expenditures) as required to achieve a desired
level of confidence for the overall success of the project with respect to budget, schedule,
performance and expected returns.
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Functions: Bunge Functions are departments responsible for defining Policies based on
corporate strategy and coordinating and contributing to their implementation. They are also
responsible for steering or supporting functional performance and any performance
improvement programs;
HAZAN: Hazards Analysis: A term that is often used interchangeably with HAZOP. While
HAZOP typically focuses on the process and operations under normal conditions, HAZAN
expands the study to factors not directly related to the equipment and routine operations
such as extreme weather conditions, power outages, impact of capacity reduction due to
availability of products, commercial reasons, etc.
HAZCON: Hazards in Construction: Is a systematic approach to identify hazards
throughout the life of the project, so as to enable the "design team" to initiate principles of
prevention at the design stage and identify both cost savings and safe working practices.
HAZDEM: Hazards in Demolition: An analysis to determine how and when demolition
works is to be done and is especially critical when extremely hazardous conditions or
unique circumstances are present.
HAZOP: Hazard and Operability Study: Is a structured and systematic examination of a
planned or existing process or operation in order to identify and evaluate problems that may
represent risks to personnel or equipment, or prevent efficient operation.
HPEs: High Potential Exposures: Exposures that in Bunge have resulted in fatality and
serious life altering injuries. These include: Work at Height, Hazardous Energy, Mobile
Equipment, Confined Spaces and Hoisted Loads.
Operating Company (“OpCo”): Bunge is comprised of multiple operating companies that
are responsible for the day-to-day operations;
P&IDs: Piping and Instrumentation Diagrams: The next level of diagrams beyond the
Process Flow Diagrams, containing and identifying all the instruments, their locations,
normal operating temperatures, pressures, piping diameters, pump sizes with horsepower,
etc. Materials of construction such as stainless or carbon steel and insulation are also
typically indicated.
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PFDs: Process Flow Diagrams: The simplest form of process flow showing only the flow
of the products through the process. Typically the flow rate defined such as MTH (metric
tons per hour). The simplest form of PFD is a block flow diagram showing only the major
pieces of equipment with arrows indicating the direction and sequence of flow.
Policy Owner: Position/Title with responsibility for developing, implementing and/or
monitoring a Policy;
Policy Statement: Outline of requirements and guiding principles in relation to specific
subject, including reason for the Policy;
Policy: A documented set of principles and guidelines, formulated after an analysis of all
internal and external factors that can affect a firm's objectives, operations, and plans. It also
determines the formulation and implementation of strategy, and directs and restricts the
plans, decisions, and actions of the firm's officers in achievement of its objectives;
PPE: Personal Protective Equipment: Equipment that workers use as means to prevent
injury such as: Hard hat, eye protection, hearing protection, steel-toed boots, full body
harness/lanyard, respiratory protection, etc.
PQSE: Productivity, Quality, Safety, & Environmental: As part of an effort to improve
Bunge’s performance worldwide, the PQSE Initiative is focused on achieving continuous
improvement in productivity, quality, safety, and the reduction of environmental impacts
Procedure: A step by step detail regarding the process to implement a Policy. It is written
in sequential order at a relatively high level and assigns responsibilities. They generally
refer to the process rather than the result;
QA/QC: Quality Assurance/Quality Control
ROI: Return on Investment: Measures the amount of return on an investment relative to
the investment’s cost.
Segment: A reportable Bunge Segment for financial reporting to the United States
Securities and Exchange Commission (“SEC”);
SHE: Safety, Health, Environment
Standards: A set of specific requirements which is aimed at meeting one or more of the
principles and objectives of a Policy.
TCO: Total Cost of Ownership: A type of calculation designed to help consumers like
procurement and project managers to assess both direct and indirect costs and benefits
related to the purchase of any component. The intention is to arrive at a final figure that will
reflect the effective cost of purchase, including several aspects besides the purchase price.
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V. Global Industry Generalities

The worldwide Edible Grains market is large; and the opportunity for Bunge is significant.
Bunge’s Global Food & Ingredients business has integrated food operations in all regions
of the world.
The global food consumption of Wheat, Corn and Rice is over 1.0 Billion tons and worth
over US$400 Billion annually. Bunge sold ~5 million tons or less than 1.0% of the
world’s food consumption annually over the past few years.
A potentially attractive platform to support strategies to deliver growth is underway as

well as simplification and harmonization. The Bunge F&I team is committed to being the
#1 global grain miller by creating a world class Edible Grains processing business.
Preferably this segment is driven by global industrial (B2B) customers/brand owners and
it is differentiated by its best practice capabilities for value chain integration. Also,
innovation plus incorporating customer, food safety and quality and cost management
strategies are the keys.
Wheat milling embodies the transformation of the grain kernel endosperm into flour via a
continuous mechanical process that involves roller mills that grind the kernel, sifters that
size and separate the different particles, and purifiers that produce a homogenous grist
blend via air; all of which work in tandem to produce a value-added flour product typically
for baking. The major by-product of wheat milling is millfeed which, given primarily
contains bran and germ content, is used as an important source of energy, protein, vitamins
and minerals in animal feed.
The fundamental production of wheat flour has remained generally the same over the years,
leading companies to apply technological improvements and seek expansion in scale as one
way to reduce the overall cost structure. Also, given the commodity nature of the business,
strategies to improve margins have focused on lowering the procurement, supply chain and
delivery costs of the raw material (wheat) and/or delivering a product with increased added
value.
Most of the dynamics in wheat milling is currently being driven by shifts in flour
consumption. In recent years, consumers have opted for a higher consumption of pasta
(which requires a specific wheat variety), shifted to a lower intake of carbohydrates, and
more recently, increased their demand for whole grain based foods, which has been aided
in part by changes in the food pyramid. Consumers have also varied in terms of where
and what they eat, driving growth in the importance of the food service sector in overall
food distribution.
In response and through a trend initiated by smaller milling companies, wheat milling has
become a more relationship driven and customer-centric business. These shifts in
consumer preferences have led flour milling customers to become more exacting in terms
of their quality specifications
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In light of this, some wheat millers have increased their manufacture of premixes
(including basic blends) and even par-baked products for delivery to bakeries, food
retailers and food service companies (see Figure 1). It is fair to say that most wheat millers
today, large and small, are or will be considering delivering premixes in some form to
their customers.
Figure 1: Wheat Milling Value Chain
Par-baking Food Retail

Procurement
Blending, End
cleaning, Premixes Food Service
conditioning Milling Packaging consumers
classification
& tempering - Retail
& storage
- Bulk
Bakeries
Separation
of bran, Becoming less
endosperm Feed important in
Denotes newer stages or light of whole
distribution formats and germ
grains tren
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Global Standard: Wheat Milling Business – Background Considerations
Bulk wheat flour trade has shown a strong declining trend over the years, and is slowly being
replaced by trade in bulk grain. In addition, there has been a growing regionalization of the
remaining international wheat flour shipments. Major wheat flour trade flows currently include
those between the EU and Africa (which accounts for about 20 percent of global trade and over 70
percent of EU wheat flour shipments), Turkey shipments into Asia, the Near East and Africa, and
Argentina’s shipments into Brazil, Bolivia and Chile.
Increased cost of logistics, preferential market access for grain (rather than flour) and the
establishment of wheat milling operations at the destination points have driven these trends. As a
result, the current milling sector faces a shrinking market for wheat flour exports in volume terms
and in the case of wheat producing countries such as the U.S., as millers are competing with traders
in the sourcing of quality wheat.
The relocation of milling facilities from production regions to consumption centers illustrates a
broader trend in the milling sector. As advances were made in bulk transportation, it became
evident that it was more efficient to transport the raw materials than the product (grains instead
of flour). As a result, milling companies have made an effort to locate facilities closer to the
major consumption areas. Most Bunge wheat milling locations in Brazil and Mexico are
destination milling facilities rather than origination based facilities.
Those facilities that have remained close to the origination areas have been forced to optimize their
logistics systems for transporting flour and premixes in order to remain competitive. Additionally,
in some cases, facilities have become dedicated in milling a certain type of grain (i.e. durum
wheat). The current shift toward whole grains will enhance this relocation trend as there will be a
diminishing need to transport by-products to supply the animal feed sector.
Compared to other grains and oilseeds based activities, the internationalization of wheat milling
companies is rather limited. For instance, of the U.S. wheat milling companies, ADM, Bunge
and Cargill have an active presence in other markets. ADM is the largest wheat miller in
Canada and one of the leaders in the U.K. after its acquisition of four mills from Tomkins and
six mills from Allied Mills. ADM is also the largest miller in the Caribbean. Meanwhile,
Cargill holds a leading position in Australia via its joint venture with GrainCorp. Although not
present in the U.S., Bunge is the largest wheat miller in Brazil and the second largest player in
Mexico, and was previously a key player in Argentina.
The declining role of international wheat flour trade and the relatively strong position of local wheat
millers, that in some cases leverage on different tax schedules together (i.e. Argentina, Brazil,
Turkey) coupled with the relatively high importance of wheat flour (and bread) as staple foods in
most developed countries, help to explain this lack of internationalization
© 2012 Bunge Limited. All rights reserved. Contains confidential, proprietary and trade secret information of Bunge. For
internal use only. Do not distribute or provide to non-Bunge personnel.
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VI. The Wheat Milling Process

Wheat milling involves the transformation of the wheat kernel into flour via a continuous
mechanical process that involves a series of grinding and separation stages. In simplest
terms, flour is produced by isolating the endosperm found in the wheat kernel from the
bran and germ and grinding it into a fine powder. Wheat grains are first conditioned
(cleaning and tempering) and then milled (See Figure 3).
The basic stages in the wheat milling process include:
- Cleaning: After wheat from the local storage facility is weighed, sampled, and
sorted, the wheat kernel enters into the cleaning process to remove non-wheat
particles. Three separate cleaning mechanisms serve to remove unwanted
materials by size (sifting and separating), specific gravity (destoner/gravity
separator) and shape (indented cylinder). At the end of this process, a frictional
cleaner scrubs the surface of the kernel, removing dirt and the outermost layers of
bran.
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− Tempering: The kernel receives a light spray of water to toughen the coat and
mellow the endosperm to allow for easier separation.
− Milling: The kernel then goes through "first break". In this stage, a series of roller
mills work to expose the endosperm by removing the rest of the bran from the kernel.
Purifiers and sifters remove excess materials throughout this process. From there the
endosperm is sent to reducing rolls, which slowly grind the endosperm into flour.
− Enriching: The enriching process restores the vitamins and minerals lost during the
milling process (basically with the elimination of the bran and germ).3 The
enrichment of flour has no effect on the baking performance or caloric value of
flour. Enriching has a relatively low cost, and contributes strongly to flour
differentiation. As a result, this process has been implemented by all wheat millers.
− Bleaching: When freshly milled, flour is slightly yellow. To whiten it, manufacturers
either let the flour age naturally or speed up the process by adding chemicals that
bleach it. While this process gives the flour more gluten- producing potential,
naturally aged flours develop more gluten as well.
− Premixing: After these processes are complete, the flour is then blended and
transformed into a higher value product by adding ingredients to facilitate its end
utilization by either bakeries or pizza parlors (larger size bags), consumers
(smaller size bags) or processors through bulk shipments via trucks or rail cars.
Bunge has a preference to blend flour post milling in most cases, but there are
some isolated instances where pre-blending is needed to meet customer
specifications on a consistent basis.
The economic performance of individual mills can be linked to efficiency in the
production process, which to some extent can be linked to the quality of the raw
material. It has historically been the case that larger kernels (thus containing more
endosperm and higher protein) are preferred as they embody a higher milling yield (less
weight to obtain a hundredweight of flour). Consequently, high quality
genetics and good growing conditions can lead to better economic performance. This
makes the classification stage crucial in determining the performance of a wheat mill.
Standard efficiency parameters in wheat milling include flour yield (extraction rate) and
capacity utilization. The flour yield refers to the amount of wheat (measured using
bushels or percent) necessary to produce a given amount (e.g. 100 lbs) of flour and is
related to the test weight (weight of one bushel of wheat that in turn, is directly associated
with its protein content). A standard extraction rate (separating the endosperm from the
bran and germ) for a mill producing standard flour is about 75 percent depending upon
quality parameters. Capacity utilization reflects the actual/potential output ratio. Most
modern mills are operated on a 24 hour basis roughly 312 days/year (52 weeks at 6 days
per week). Furthermore, it is increasingly being the case that the newer mills operate 160
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hours per week, embodying a down time of about 8 hs/week, a more sustainable working
model embodies 6.5 days and 12 hrs downtime.
VII. Business Model

Wheat is the primary input in wheat milling. On average, it is estimated that it accounts
for up to 75 to 80 percent of flour production costs (ex-mill). Thus, any improvement in
grain purchasing, milling yield (extraction rate) or logistics, will have a significant impact
on the mill’s profitability.
Ignoring grain costs, a basic analysis of a representative mill shows labor and
administration costs (not directly related to the mill’s operation) account for over 70
percent of the costs of inputs, with energy being the third category.
The major by-products in wheat milling include millfeed as well as wheat germ, which
are mostly used as animal feed and food supplement, respectively. Small amounts of
wheat germ are also used as feed additives. Pricing of millfeed (bulk middling) is driven
by the feed market and is more visible, while pricing of the wheat germ is less
transparent. By-products contribute to about 5-8 percent of the mill’s sales volume
although this incidence is declining as the importance of premixes and service by wheat
miller increases. Given the high incidence of the endosperm in the wheat kernel, the
overall profitability of the wheat milling operation is mostly driven by the relative prices
between wheat grains and wheat flour.
VIII. Key Success Factors

Key success factors in the wheat milling industry currently include access to proper
logistics (location and wheat sourcing), optimizing scale, achieving high capacity use,
milling rates, and differentiation via developing a closer relationship to the end customers
to facilitate meeting their required needs.
− Logistics. This category is becoming increasingly crucial for both grain origination
and product delivery. Players with proven capabilities are more likely to be long term
players and lead the (further) consolidation play in the sector. National footprint is
more likely to be an increasing trend that will also match the increasing coverage of
food manufacturers and food retailers.
− Location. Mills should ideally be located within a 150/200 miles radius from a large
consumption center (destination mills). Optimal distance has been declining with
time. Alternative location can be a nearby origination center (origin mills),
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but not “in-between” (intermediate mills). Logistics for each type of mill varies
with destination mills having a wider range of sources and a narrower range of
destinations.
− Sourcing. Access to quality wheat coupled with price is becoming increasingly crucial
and is closely associated with the mill’s performance. Origin mills are more
susceptible to issues related to grain origination.
− Scale. Larger volumes are needed to compensate for higher labor and
administration costs. Increased availability of automated processes allows for
larger volumes to be processed in a cost efficient way.
− Milling extraction rate (rate of grind). The sourcing of high quality wheat (favored by
appropriate climate) and proper mixing of wheat kernels to maximize the protein
content of the resulting flour is essential.
− Supply of premixes. There is an increased need for collaboration and coordination
between wheat millers and their customers. Value-added activities such as
premixing are being pushed further down the supply chain. These are tightly
associated with increasing needs for research and development.
− Differentiation. Increasingly demanding food manufacturers (including bakeries),
food retailers and food service providers require constant adjustment of the product
formulation. Coordination with customers is a necessary condition for achieving the
fine adjustments in the properties of the premixes.
IX. Looking Forward

Like in any commodity business, logistics will increase in importance. The ability to
optimize the sourcing and delivery of raw materials to the plant as well as from the
delivery of products to the end-user will create significant advantages for companies in
this sector, especially in light of recent increases in transportation costs. It is fair to say
that the drive to improve logistics will drive further rationalization of mill locations.
While the existence of marketing niches will always provide opportunities for regional, less
efficient milling companies; food manufacturers, food retailers and food service companies
are continuing to get larger. As a result, their requirements will exceed the delivery
capabilities from the smaller/regional players, creating a demand for companies that have
the scale to supply them in both a timely and cost-effective manner on a nationwide basis.
From a technical standpoint, there have been minimal changes in the overall wheat
milling process, but the introduction of improved technological advances and real time
data collection has been a plus. In an effort to innovate and meet customer demands,
companies have moved backward and forward through the value chain. Although still not
as intense as already observed in the other food sectors, wheat milling companies are
specializing. This move means concentrating in either manufacturing (including the
associated logistics aspects) or value-added products.
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The work being done by the respective working groups within Bunge does provide
technology options to drive efficiencies and best practices. These are being captured in
the document standards published and presented on an ongoing basis. The end goal is
consistent milling practices with a strong focus on maximum employee and plant safety,
food safety and security, nutritional solutions, low maintenance requirements and
measureable sustainability efforts.
Growth in the trend toward the consumption of whole grain flour will eventually bring the
milling extraction rate to 100 percent. While this trend might be stronger today in the U.S.
than in other developed countries, it will most likely be adopted by consumers in other
countries due to the health benefits of whole grain flour as well as increasing concerns
related to food intake. The immediate impact will be an adjustment in the overall need for
wheat, as whole grain flour is, by definition, 25 percent heavier than flour obtained solely
from the endosperm as it contains the original bran and germ. Thus, there are no by-
products and reduced enrichment required. As a result, some further adjustments in milling
capacity will be needed.
On the delivery side of the business, providing higher value-added (via either presentation,
composition or both) products will become increasingly important. Furthermore, as the
traditional milling business is driven more and more toward the manufacture of premixes
that have an increasingly larger array of applications (and thus, requirements), the need for
research and development at the company level has been fostered to even become a
differentiating factor. The growing trend toward the supply of par-baked/frozen products
and food solutions will require significant investments by wheat millers that decide to lead
the consolidation and vertical integration play.
The actual composition of each premix is different and requires a large amount of
flexibility by the wheat miller. The mill has to combine the proper origination of a variety
with various characteristics (humidity/moisture level and protein content) as well as with
the supply of an array of premixes that vary in their flour and ingredient composition.
Moreover, not all premixes are necessarily based on flour and yet, they are all expected to
be included in the products offered by wheat milling companies.
The wheat value chain has not been (directly) affected by the developments involving the
applications of genetically modified (GM) traits. The relatively close nature between the
wheat kernel and the flour together with the emphasis on production gains (rather than
applications) associated with available GM traits have been certainly a deterrent. While
GM corn and GM soy products are used in animal feed and only a small percentage
consumed by humans, GM wheat has humans as first destination.
As a result, crops other than wheat have benefited from GM applications that have lowered
production costs or risks, differentiated the seed, or led to an expansion in the cultivated
area with resulting dynamism throughout the value chain. Current projects among the lead
suppliers of GM traits could further compromise the profitability of wheat production.
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These projects involve, among others, the incorporation of a drought gene in corn (thus,
corn can compete in the more arid areas with wheat), the production of higher oleic
soybeans (that will directly compete with wheat production in double crop regions like
Argentina), and special traits for canola. Thus, while the lack of GM trait introduction in
wheat is providing the necessary conditions to appease consumers, longer-term, as more
attractive options for wheat farmers are developed, acreage devoted to wheat will decline
and may eventually result in a higher cost structure. This decline is likely to put further
pressure on the logistics associated with the operation of an origin mill located in a region
that replaces wheat for more attractive crops.
X. Innovation and Functional Flours

The functional flours market has been driven by the rise in consumption of processed and
packaged foods in developed and developing countries. The increase in demand for
premium food products coupled with the growth in consumption of convenience and
healthy foods, plus the intensification of global trade of functional flours are the factors
driving the increase in demand. In 2015 the ready-to-eat products segment accounted for
the largest share in the functional flours market in terms of value and volume, and is
projected to grow at a competitive CAGR of more than 8.0% from 2016 to 2022.
Functional flours are typically defined as pre-cooked flour, fortified flour, and/or specialty
flour – which include gluten-free, pre-gelatinized, enzyme-treated, extruded and partially
transformed flour. On the basis of raw material source, the functional flour market is
segmented into cereals and legumes. As a result both legumes and cereal flours have gained
importance in the global functional flour market.
The legume based flours have different content levels of starch and protein to meet a variety
of food manufacturers needs such as soups and sauces in different applications. The cereal
based flours are primarily used to produce foods such as breakfast cereals, snacks, pasta
products, ready-to-eat meals, and nutritional bars.
The functional flour market is also segmented on the categories of: types of flours, food
applications, raw material sources, and geographical regions. The functional flour industry
is restrained by strict food labeling legislations and seasonal variations in the supply of raw
materials. Key players are ADM (US), Associated British Foods (UK), Bunge Limited
(US), Cargill (US), General Mills (US), and SunOpta (Canada); and they are in the planning
of reviewing investment and expansions as their key developmental strategy to explore new
and untapped markets or constructing a new customer base for long-term client
relationships.
The optimization of technical processes in the production of functional flours and their use
is important. The methods used to manufacture functional flours can impact the customer
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application in terms of the raw material, time to process and capacity throughput.
Innovation methods can enhance these functional flours including extrusion, thin layer
drying and roller drying. The specialty flours obtained with these technologies are
characterized by their functional properties adapted to the specific application. The
modifications are also related to solubility parameters and viscosity profile, depending upon
the customer’s requirements.
For example, functional flour can be labeled and used as thickening systems in foods.
Products can be produced from milled cereal grains such as ancient grains, wheat, corn, rice
or rye. Thickening systems are typically produced with physical processes, and the flours
are stabilized by thermal or hydro-thermal processing that comply with high food industry
standards. These functional flours can provide excellent sensory properties including a
creamy, full bodied texture, natural opacity and/or stable viscosities.
XI. Technical Standards page 15 out of 18
Bunge technical standard considerations will play a major role in the development of any newly acquired
(M&A) facilities or greenfield projects. These considerations should include but not be limited to:
A. Process Data and Measurement

B. Control and Instrumentation
C. Design Consideration / Construction Material

D. Maintenance/Reliability Considerations
E. Safety/Environmental Considerations
F. Regional Special Requirements
This would depend upon wheat classifications unique to the wheat growing and milling area, if necessary.
G. Total Cost of Ownership Information
The purchase within Bunge must be made using Total Cost of Ownership instead of just investment cost
comparison.
H. Minimum Engineering Documentation
Sellers and suppliers have the responsibility to provide all technical documentation regarding plant and
their operations, however, there are some minimum requirements that need to be delivered, and they are listed
below:
• Preliminary Layout
• Process & Instrument Diagrams
• Drawing of Floors
• Drawing of supporting steelwork including dynamic and static loads.
• Technical Documentations
• Sifter flow sheets
• Operating Manuals
• Codes and Standards to be adopted
Appendix 1 – Approval Spreadsheet
Consensus Team
Page 16 out of 18
PARTICIPANT: OPERATING COMPANY A B C D DATA

Mauro Cerati Bunge White Plains X
William Syers Bunge Asia X
Dean Hughes Bunge US X
Ricardo Lopes Bunge Brazil X
Roger Mizushima Bunge Brazil X
Miguel Montalban Bunge Mexico X
Bill Gross Bunge White Plains X
Agustin Mengo Bunge SC X
Legend:
A – Approved B – Approved with suggestions C – Disapproved D – Abstention
Reviewed by Bill Gross, and written by Bill Gross
CHANGES DISCRIPTION
Appendix II – Kansas State University page 17 of 18, and 18 of 18

Wheat Milling

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Wheat Milling

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APPROVED: DRAFT

I. Scope and Application………………………………………………….……….……….…..1

I. Scope and Application

II. Management Responsibilities

IV. Definitions and Acronyms

V. Global Industry Generalities

A potentially attractive platform to support strategies to deliver growth is underway as

Figure 1: Wheat Milling Value Chain

Par-baking Food Retail

VI. The Wheat Milling Process

The basic stages in the wheat milling process include:

VII. Business Model

VIII. Key Success Factors

IX. Looking Forward

X. Innovation and Functional Flours

A. Process Data and Measurement

C. Design Consideration / Construction Material

F. Regional Special Requirements

G. Total Cost of Ownership Information

H. Minimum Engineering Documentation

PARTICIPANT: OPERATING COMPANY A B C D DATA

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