An apparatus and method for dry treatment of grain comprises a grain peeler for mechanically treating pre-cleaned grain to remove flour bran and coarse bran to a peeling depth of about 4% to 9% with simultaneous separating of the flour bran; an aspiration separator separating coarse bran based on particle velocity and size; a grain mill; and sieve separator separating the husk bran of between 2%-3% of the grain kernel mass from endosperm flour by differences in particle size. An apparatus and method for mash preparation from the endosperm flour comprises mixing tank for mixing endosperm flour with water, enzymes, etc; a colloid mill for processing the batch using mechano-activation with oscillation frequencies between 1 and 200 kHz and with impulse duration of between 0.05 and 1.0 seconds and for 2 to 20 processing cycles, coarse particle sifter for separation of the coarse batch particles form the mash.