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1. Project Summary and Relationship to China's Agenda 21

This project aims to improve traditional grain processing technology and devices. The improvement will apply mechanics and electronic technologies to intensify, mass process, and rationally develop grain resources. The project will increase supply and demand efficiency and provide addition on value to the processed grain. In addition, it will comprehensively utilise the grain resource in China.

This project is based on programme area of 11B of China's Agenda 21, and is related to programme areas 7B and 4B.

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2. Background

Grain processing is a key step in the grain distribution system which includes purchasing, selling, allocation, processing and storage. It is a the mid-point between primary and secondary industries, for its products are the raw materials for industries. However, China is far behind in processing devices compare to developed nations. Its traditional processing technique has hindered China from fully utilising its grain resources.

The new technology of wheat debranning-milling under this project simplifies processing flow, saves equipment investment, decreases sewage drainage, increases the extraction rate by 2 - 5 % . This milling technology increases the content of various nutritious ingredients such as minerals and vitamins.

The annual output of paddy in China is the highest in the world; half of the population regards rice as its food staple. However, the main method of rice distribution is to ship paddy directly to towns and cities for storage and processing. This wastes 25% of barn storage capacity and 30% of distribution expenses compared with Japan and other developed countries where they dehull grain within the production area. Milling enterprises in China are managed below standards: they have low comprehensive utilisation rate of by-products and their production cannot meet market demand. The utilisation rate of processed corn in foreign countries is 99%, while that in China is only 83%. This project will develop modern processing devices, improve processing technology, comprehensively utilise grain resources, adjust the industrial structure, bring incentives to farmers, increase the employment rate and income in the countryside and promote sustainable development of the agricultural economy.

Grain processing has gained increasing attention from government. The State Council has put food processing, including grain processing, into China's Agenda 21 and worked out Essentials of Food Nutritional Structure of 2000 of China. Processing of agricultural products has been incorporated into the Ninth-Five Year Plan on Commodity Distribution and Long-term Targets for the year 2010 of Ministry of Domestic. Mass grain processing has become one of research items under the Ninth-Five Year Plan carried out by Ministry of Domestic Trade.

The technology of debranning-milling of wheat has been under studying since the 1950ís. The implementing agencies are quite familiar with this technology. At present, there is a breakthrough development of rebuilding about 100 small-scaled flour mills with capacity of 20 t/d, 30 t/d and 50 t/d. Moreover, the Ministry of Domestic Trade has sent experts to Japan several times to investigate paddy dehulling within the production area. Currently demonstration projects are needed so that this methodology can be promoted throughout the country.

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3. Objectives

3.1 Long-term Objective

The project seeks to develop new technology and equipment for prior processing and deep processing of grain resources according to local conditions. It would involve the promotion of wheat debranning-milling and dehulling paddy within the production area. This would intensify the mass processing of corn in the production area.

3.2 Immediate Objectives

• To establish modernized processing demonstration areas for paddy distribution at county level. This involves carrying out collective dehulling, so that crude rice or refined rice would become the main commodity in distribution instead of paddy.
• To develop debranning-milling technology for wheat and equipment for large-scale corn processing.
• To establish a system of evaluating grain quality. The item would develop monitoring methods and devices and instruments for grain. Unacceptable grain will be improved to final edible quality and grains will be classified for their best usage.

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4. Outputs and Activities

4.1 Developing technology and equipment for wheat debranning milling .

• To work out optimal technological parameters for wheat debranning and develop mills with a capacity of 100 t/d.
• To develop appropriate technology and equipment for wheat soakage, multi-grade milling of wheat and chemical mixer.
• To develop on-line monitoring techniques and devices for processing grain.
• To collect information on wheat quality standards from abroad, and to evaluate variable characteristics and baking quality of wheat flour. This would assist the agencies to develop method to classify grain quality.

Monitoring Indicators: accomplish a mating production line and a complete set of equipment for wheat debranning and milling; build a demonstration workshop with a capacity of 100t/d in Shandong province, with an increase of 2 to 5 percent in the extraction rate of refined flour; complete "Guide to Evaluation of Practical Quality of Wheat".

Implementing Agencies: Academy of Science and Technology of Ministry of Domestic Trade.

Time Schedule: January 1997 - December 1997

4.2 Demonstration project of dehulling paddy within the production area

• To carry out the technical and economic analysis of rational processing and distribution of paddy resources.
• To develop appropriate techniques and equipment for dehulling paddy in the field and separation of crude rice.
• To develop new power generation technology using rice hulls. The project focuses on the technical development of tar oil removal from hull vapour and chemical production using ash of paddy hulls.
• To study the mechanism of ageing and refreshment of crude rice and develop its storage technology at sub-normal low temperature with high humidity (15%).

Monitoring Indicators: construct a demonstration area of dehulling of paddy with a capacity of 50,000 t/year; accomplish a set of electricity generation device of 150 kW by using paddy hulls; adopt "storage at sub-normal low temperature" in 10 storehouse of grain.

Implementing Agency: Grain Bureau of Hunan province

Time Schedule: January 1997 - December 1999

4.3 Demonstration project for rice fine processing and comprehensive utilisation of rice bran

• To develop key techniques and equipment for polishing, color selection and light control during the Multi-machine lightly-husking process. This item also aims to develop special types of rice such as aromatic rice, nutritious rice and refined rice.
• To develop a new technique of producing oil from rice bran. The item involves constructing a demonstration plant for extracting and refining rice oil with a capacity of 10t/d.
• To produce a series of chemicals from rice bran. The item involves building a demonstration plant for health food production, such as inosite (50y/year), oryzanol (1t/year) and activated polyose, etc.
• To establish the chemical structure dominating rice flavour. The item also aims to establish an evaluation method for rice edible quality, and to develop technology and instruments for monitoring.

Monitoring Indicators: accomplish a demonstration workshop for refined rice processing with a capacity of 100t/d and workshop for extracting and refining rice oil and producing inosite, oryzanol and other by-products; set up a chemical model of flavour and a system of quality evaluation.

Implementing Agency: Grain Bureau of Hunan province.

Time Schedule: March 1997- December 1999

4.4 Demonstration project of corn in-depth processing

• To promote the closed-loop technique of multi-grade corn wet-processing. The item plans to enlarge a corn starch plant from 20000t/year to 50000t/yr. The project also aims to develop technique and equipment for large-scale starch processing.
• To develop technology for in-depth processing of starch, which include malt dextrin and soluble starch production, denaturation with acidification, pre-dextrinatation, oxidation, cross-linkage and action starch.
• To develop a recovery technique for corn protein from by-products, and to produce and refine oil from corn malt.

Monitoring Indicators: Accomplish two plants for corn starch processing and modified starch production; develop nine kinds of products by deep utilisation of starch.

Implementing Agency: Grain Bureau of Henan province.

Time Schedule: January 1997 - December 1999

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5. Inputs

5.1 Chinese Inputs

Chinese inputs will be used for expenses for primary preparation and investigation and research, expenses for expert design and corresponding personnel training, expenses for management and office facilities of its staff, and expenses for testing and trial operation, basic construction cost and operating capital.

5.2 International Inputs

International inputs are mainly used for consulting foreign experts, part of basic construction, key devices and instruments and staff training.

5.3 Budget

The total capital needed for this project is US$ 19.4 million. The Chinese participants will raise US$ 9.8 million from domestic source, while foreign aid and investment will cover the other US$ 9.6 million.

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Table 1. Budget by item (in million US dollars)

Table 2. Budget by output (in million US dollars)

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6. Benefits

This project would increase grain value and comprehensively use the scarce grain resources in China, where per capita grain production is less than 380 kg. The direct beneficiaries are grain processing enterprises in the demonstration areas. This project will yield notable economic benefit with a annual income of 5 million US dollars. The project will save 25% in paddy bark storage expenses and 30% of distribution expenses. Moreover, it increases the extraction rate of refined rice by 3% to 5%, added-value of crude rice by 5 times, and the corn utilisation rate to 95%.

The demonstration project will provide the processing techniques and a model for replication in the rest of the country. It will also provide experience and models for other developing countries.

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7. Risks

These demonstration projects are limited to applying several new technologies within the demonstration area. Promotion for the whole country would require enormous capital and technical inputs. In addition, domestic capital can only be used for the preparation of the task. Further development of this work requires technology and investment from the international community.

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