IntroductionFinancial HighlightsLetter to ShareholdersOperationsFinancial ReviewCorporate Information
Penford Corporation 1998 Annual Report Operations
Carbohydrate Chemistry
Operations Review
Penford Products Co.
Penford Food Ingredients Co.

Carbohydrate Chemistry
Carbohydrate chemistry makes good products better

for papermakers
Starch-based foods have been a staple of mankind's diet since humans first walked the earth. Around 4000 B.C., starch-based flours were being used to make paper. In 312 A.D., the Chinese began using a modified "high-fluidity starch" to size writing paper and resist ink penetration. By the time Gutenberg invented movable type in 1450, revolutionizing the printing process, starch was an important component of paper for both sizing and coating. One could say that carbohydrate chemistry helped change the world.

for textile makers
Penford's roots in carbohydrate science go back over 100 years. We, too, help to change the world as seen through the eyes of our customers. By modifying basic starch characteristics we are constantly inventing new ways to enhance the products of our paper, food and textile customers. Our focus is to manage R&D as an applied science, directing the basic science towards meeting the specific market needs of our customers.

Carbohydrates form when three elements combine: carbon, hydrogen and oxygen. The simplest form of carbohydrates are sugars, such as glucose and fructose. Sugars, in turn, link together to form the building blocks of more complex carbohydrate polymers -- starches, cellulose and natural gums -- which possess an array of exploitable properties.

and for food makers
Penford's expertise is in starches extracted from corn, potato and tapioca. By generating various chemical reactions, including oxidation and cross-linking, Penford creates new modified starches with particular properties that enhance their performance in customer applications. In essence, we take unmodified starches and improve their properties in unique ways to make our customers' products better.

carbohydrate industry
For instance, one basic use of starch is it's film forming property. Across our business, we have taken this property and developed a variety of products. At Penford Food Ingredients Co., we have developed a modified potato starch that creates a brittle film coating that results in a crispier french fry. Another example, at Penford Products Co., is our development of a unique line of starch copolymer products whose film forming attributes improve production runs, opacity and the finish of coated and uncoated papers.

From the industry standard Penford Gums product line, to our new, innovative starch copolymers and food coating technology, Penford Corporation continues to leverage its core competency to continually create new, value-added applications and growth opportunities.