The purpose of a Medieval Granary is the same as that of its predecessor the 'Crude Granary': to convert wheat into flour. Unlike the Crude Granary, the Medieval Granary has a chute, to deliver it's converted wheat straight to the resource bin, which has an increased capacity. To convert the 'Wheat' to 'Flour', put the 'Wheat' into the slot on the tower.
This recipe is simple, yet unlike other building-types.
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