Flour and Other Grain Mill Products

Extract


Flour and Other Grain Mill Products

SIC 2041

NAICS 311211

Manufacturers in this industry mill flour or meal from various raw grains, excluding rice. The products of flour mills may be sold plain or in the form of prepared mixes or dough for specific purposes.

INDUSTRY SNAPSHOT

This greatly diversified industry saw a general upward production trend in the late 1990s. For the flour market (the primary end use of wheat), fluctuating wheat production imposes the most critical global ramifications. As of the early 2000s more than 60 percent of the world's wheat supply was converted to flour for making breads, biscuits, cakes, and other dough products. On a consumer level, flour and grain products constitute a substantial part of the world's staple diet, since they are basic ingredients of practically every meal consumed by the world's 6.2 billion people. Fluctuating wheat production statistics largely portend the amount of food consumption and, in many parts of the world, the availability of food supply. In the United States, some 944.8 million bushels of wheat were ground for flour in 2000, but this number dropped steadily through the early 2000s, reaching 865.1 million bushels in 2004. This was the smallest amount in years, and represented the lowest per capita consumption since 1989.

A key factor affecting companies' survival in the flour industry is the ability to compete within the fluid conditions of wheat production and consumption. Companies must maintain the structural and financial stability to weather fluctuations in national currencies, weather-induced wheat shortages, and socioeconomic realities that figure so prominently in the industry. Many companies struggling to reinforce their market foothold attempt to ex...

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