Digitized by Kansas Correctional Industries

Digitized by Kansas Correctional Industries

Leaves 58-60 folded. / Digitized by Kansas Correctional Industries

Vita. / Digitized by Kansas Correctional Industries

The Canadian grain trade is faced with the prospect of change. It is therefore important to analyze the system for current efficiency and for efficiency under alternative configurations of physical facilities, alternative methods of operating, and alternative regulations. This study is concerned with a somewhat narrow subject, that of grain movement from the farm to elevator. Total costs associated with the assembly of grain were estimated at six elevator points: for the current configuration of facilities, after changes in number and capacity of elevators, after changes in farm storage capacity, after changes in hauling distance and truck size, and after changes in elevator location. The technique of simulation was used, and a model was constructed to provide a simulator of the system. The model was by necessity, simple, incorporating data to represent crop production, farm storage cost, ground storage cost, hauling cost, elevator cost, and rail shipments. Each change necessitated an additional computer run to determine the costs resulting from the change. It was concluded that a model using the technique of simulation could be constructed for the entire grain marketing system to capture the essence of the interdependencies. Ten experiments were conducted to estimate the costs associated with alternative configurations. The resulting estimates indicated that the current configuration is inefficient and that lower costs would occur following: (1) reduction in the number of elevators at each point, (2) a reduction in the number of points, (3) a reduction in farm storage capacity, and (4) by an increase in farm truck size. The cost of assembling grain with the current configuration was estimated to be 24.38 cents per bushel. It is possible given the validity of the model to reduce these costs to 13.76 cents per bushel by decreasing the number of elevators at each point, reducing farm storage capacity, and increasing farm truck size. The complete response surface was not mapped because of the great number of potential permutations, hence only ten discrete experiments were completed. However, indications were that one of the more important ways to achieve a lower per bushel cost of assembly is to increase the volume of grain through a fixed capacity country elevator system. It is important to examine these results in terms of the limited scope of the study for not all costs were accounted. That is, there may be external costs to the rest of the economy due to interdependence. / Land and Food Systems, Faculty of / Graduate

Western Canada is in a post Canadian Wheat Board single-desk market, in which grain handlers face policy, allocation, and logistical changes to the transportation of grains. This research looks at the rails transportation problem for allocating wheat from Prairie to port position, offering a new allocation system that fits the evolving environment of Western Canada’s grain market. Optimization and analysis of the transport of wheat by railroads is performed using geographic information system software as well as spatial and historical data. The studied transportation problem searches to minimize the costs of time rather than look purely at locational costs or closest proximity to port. Through optimization three major bottlenecks are found to constrain the transportation problem; 1) an allocation preference towards Thunder Bay and Vancouver ports, 2) small capacity train inefficiency, and 3) a mismatched distribution of supply and demand between the Class 1 railway firms. Through analysis of counterfactual policies and a scaled sensitivity analysis of the transportation problem, the grains transport system of railroads is found to be dynamic and time efficient; specifically when utilizing larger train capacities, offering open access to rail, and under times of increased availability of supplies. Even under the current circumstances of reduced grain movement and inefficiencies, there are policies and logistics that can be implemented to offer grain handlers in Western Canada with the transportation needed to fulfill their export demands.

Grain is the single most important export commodity shipped through four important Canadian ports on the Pacific Coast. Recent rapid growth in these exports have strained present facilities close to capacity. Therefore the necessity has arisen to study the problem of future requirements for grain handling facilities in British Columbia. Furthermore the over-all development of British Columbia ports has been widely discussed in recent years and because grain is such an important export, the problem of port development requires specific study of grain handling facilities. Investigation of future grain handling requirements relied on both library and field sources. Field work, mainly in the form of interviews with people in port administration and grain handling and selling were especially useful in gaining first-hand knowledge of the actual problems of grain exporting. Facts and opinions gained from field work were also invaluable to interpretation of a large mass of statistics that were available from various library sources. The results of the research have led to several conclusions. The most important is that the Pacific Coast of Canada requires new grain handling facilities in the near future. In addition improvements in handling are possible within existing facilities and throughout the extensive system of grain gathering which begins on the farms, hundreds of miles from the export point. In addition to the above findings there are several important secondary conclusions. First, the markets for grain are likely to continue growing in the foreseeable future. Because the markets of greatest growth are near the Pacific Ocean, Canada's West Coast ports are well situated to serve them. Second, the United States Pacific ports are also well situated to provide direct competition with Canada. If and when this competition becomes more direct, Canada will require the best facilities to keep its customers. Third, Canadian ports have definite advantages to ship operators over the United States ports in the form of lower charges for port use, but maintenance of efficiency in Canadian ports is essential to maintaining this advantage. Finally, the main Canadian Pacific ports are physically suitable for the expansion of grain handling facilities. / Business, Sauder School of / Graduate

Doctor of Philosophy / Department of Biological & Agricultural Engineering / Mark E. Casada / Ronaldo G. Maghirang / The United States grain handling infrastructure is facing major challenges to meet worldwide customer demands for wholesome, quality, and safe grains and oilseeds for food and feed. Several challenges are maintaining grain quality during handling; reducing dust emissions for safety and health issues; growing shift from commodity-based to specialty (trait-specific) markets; proliferation of genetically modified crops for food, feed, fuel, pharmaceutical, and industrial uses; and threats from biological and chemical attacks. This study was conducted to characterize the quality of grain and feed during bucket elevator handling to meet customer demand for high quality and safe products. Specific objectives were to (1) determine the effect of repeated handling on the quality of feed pellets and corn; (2) characterize the dust generated during corn and wheat handling; (3) develop and evaluate particle models for simulating the flow of grain during elevator handling; and (4) accurately simulate grain commingling in elevator boots with discrete element method (DEM). Experiments were conducted at the research elevator of the USDA-ARS Center for Grain and Animal Health Research (CGAHR) to determine the effect of repeated handling on the quality of corn-based feed pellets and corn. Repeated handling did not significantly influence the durability indices of feed pellets and corn. The feed pellets, however, had significantly greater breakage (3.83% per transfer) than the corn (0.382% per transfer). The mass of particulate matter < 125 μm was less for feed pellets than for corn. These corn-based feed pellets can be an alternative to corn in view of their handling characteristics. Another series of experiments was conducted in the same elevator to characterize the dust generated during corn and wheat handling. Dust samples were collected from the lower and upper ducts upstream of the cyclones in the elevator. Handling corn produced more than twice as much total dust than handling wheat (185 g/t vs. 64.6 g/t). Analysis of dust samples with a laser diffraction analyzer showed that the corn samples produced smaller dust particles, and a greater proportion of small particles, than the wheat samples. Published data on material and interaction properties of selected grains and oilseeds that are relevant to DEM modeling were reviewed. Using these material and interaction properties and soybeans as the test material, the DEM fundamentals were validated by modeling the flow of soybean during handling with a commercial software package (EDEM). Soybean kernels were simulated with single- and multi-sphere particle shapes. A single-sphere particle model best simulated soybean kernels in the bulk property tests. The best particle model had a particle coefficient of restitution of 0.6; particle static friction of 0.45 for soybean-soybean contact (0.30 for soybean-steel interaction); particle rolling friction of 0.05; normal particle size distribution with standard deviation factor of 0.4; and particle shear modulus of 1.04 MPa. The single-sphere particle model for soybeans was implemented in EDEM to simulate grain commingling in a pilot-scale bucket elevator boot using 3D and quasi-2D models. Pilot-scale boot experiments of soybean commingling were performed to validate these models. Commingling was initially simulated with a full 3D model. Of the four quasi-2D boot models with reduced control volumes (4d, 5d, 6d, and 7d; i.e., control volume widths from 4 to 7 times the mean particle diameter) considered, the quasi-2D (6d) model predictions best matched those of the initial 3D model. Introduction of realistic vibration motion during the onset of clear soybeans improved the prediction capability of the quasi-2D (6d) model. The physics of the model was refined by accounting for the initial surge of particles and reducing the gap between the bucket cups and the boot wall. Inclusion of the particle surge flow and reduced gap gave the best predictions of commingling of all the tested models. This study showed that grain commingling in a bucket elevator boot system can be simulated in 3D and quasi-2D DEM models and gave results that generally agreed with experimental data. The quasi-2D (6d) models reduced simulation run time by 29% compared to the 3D model. Results of this study will be used to accurately predict impurity levels and improve grain handling, which can help farmers and grain handlers reduce costs during transport and export of grains and make the U.S. grain more competitive in the world market.

The Saskatchewan Wheat Pool went from being the largest grain handler in western Canada in the mid 1990s to undertaking a $405 million debt restructuring in January 2003. Provincial grain handling market share had been over 60 percent for two decades prior to the Pool becoming publicly traded in 1996. With the share conversion, the Pool began a capital expenditure program in an effort to adapt to industry deregulation and to compete with the multinationals that were entering western Canada. This program was not successful. SWPs long-term debt increased five fold over the period 19961999 and consecutive multi-million dollar net losses were incurred followed by the debt restructuring.<p>This thesis uses dominant logic theory and the principal-agent problem to analyze what went wrong at SWP. Theory suggests organizations faced with major industry change may have difficulty revising their dominant logic, which leads to organizational failure. Not only is there a tendency to hold on to established beliefs, but the creation of new beliefs is prone to error because of bounded rationality. The existence of a principal-agent problem can worsen an organizations ability to revise its dominant logic. Information asymmetry and the principals trust of the agent can lead to inaccurate beliefs and ineffective strategies being approved. <p>The results of personal interviews with twenty-one past management and elected Saskatchewan Wheat Pool personnel and grain industry affiliates are presented and analyzed in a case study format. The results suggest that deregulation of the grain handling industry and the anticipated arrival of multinational competitors pressured the Pool to respond quickly to major industry change. The Pool had difficulty revising its dominant logic; it retained outdated beliefs and accepted inaccurate new beliefs. Interviewees described how some investments were built on erroneous beliefs and lacked complete due diligence. Evidence suggests the principal-agent problem was also at play. The need for confidentiality after the share conversion increased information asymmetry, and management took advantage of the boards lack of experience as investments extended beyond the farm gate. The principal-agent problem in conjunction with an inaccurate revised dominant logic is a reasonable explanation for the Pools failure.

The Saskatchewan Wheat Pool went from being the largest grain handler in western Canada in the mid 1990s to undertaking a $405 million debt restructuring in January 2003. Provincial grain handling market share had been over 60 percent for two decades prior to the Pool becoming publicly traded in 1996. With the share conversion, the Pool began a capital expenditure program in an effort to adapt to industry deregulation and to compete with the multinationals that were entering western Canada. This program was not successful. SWPs long-term debt increased five fold over the period 19961999 and consecutive multi-million dollar net losses were incurred followed by the debt restructuring.<p>This thesis uses dominant logic theory and the principal-agent problem to analyze what went wrong at SWP. Theory suggests organizations faced with major industry change may have difficulty revising their dominant logic, which leads to organizational failure. Not only is there a tendency to hold on to established beliefs, but the creation of new beliefs is prone to error because of bounded rationality. The existence of a principal-agent problem can worsen an organizations ability to revise its dominant logic. Information asymmetry and the principals trust of the agent can lead to inaccurate beliefs and ineffective strategies being approved. <p>The results of personal interviews with twenty-one past management and elected Saskatchewan Wheat Pool personnel and grain industry affiliates are presented and analyzed in a case study format. The results suggest that deregulation of the grain handling industry and the anticipated arrival of multinational competitors pressured the Pool to respond quickly to major industry change. The Pool had difficulty revising its dominant logic; it retained outdated beliefs and accepted inaccurate new beliefs. Interviewees described how some investments were built on erroneous beliefs and lacked complete due diligence. Evidence suggests the principal-agent problem was also at play. The need for confidentiality after the share conversion increased information asymmetry, and management took advantage of the boards lack of experience as investments extended beyond the farm gate. The principal-agent problem in conjunction with an inaccurate revised dominant logic is a reasonable explanation for the Pools failure.