What causes the structural changes in terms of number and size of flour mills in the US flour milling industry, and will the US wheat flower supply be adequate in the year 2000? Simulation results indicate that rising disposable income and declining wheat prices are the primary reasons for changes in the size and distribution of larger flour mills, while automation in production and higher disposable income are important factors for smaller mills. This study also projects that domestic wheat flour supply will be sufficient to meet increasing domestic demand by the year 2000, even though the number of US wheat flour mills is projected to decline to 160 from the current 203.


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