Adoption of the Continuous Mix Process in Bread Baking: Some Effects on Firms and the Industry

Excerpts from the report: A continuous mix machine that allows a more nearly automatic and continuous process of bread baking was introduced in 1953. In 1955 preparations of various bread mixes were developed. Together these two technological developments incorporated the previously existing techniques of mixing, developing, dividing, shaping, and panning the bread dough continuously. In many plants this process has replaced the previous batch process which required 6 to 12 stages in the conventional production line, namely, flour scaling units, batch mixers, fermentation room, dough troughs and hoists, dividers, rounders, intermediate proofer, and molder-panners. Comparisons of standard and continuous mix plants (for first-generation continuous mix equipment) showed short-run average total costs for continuous mix plants to be lower, and to have steeper slopes. This report presents data on baking establishments which show (1) the impact of technological change (particularly continuous mix) upon the structure of both individual firms and markets composing the baking industry; (2) such measures as plant activity, industry structure, wages, capital expenditures, crude value added, and changes in the number of establishments; (3) input-output data before and after installation of continuous mix equipment; and (4) comparisons of establishments having continuous mix equipment with the total baking industry.