A nutrient rich food-grade defatted corn germ flour derived from a dry-milled corn germ fraction is provided. The flour produced contains high levels of protein, dietary fiber, and amino acids and is low in fat. Furthermore, a method for preparing the flour by forming collets and removing oil from the dry-milled corn germ fraction is provided. The method includes: providing a dry-milled corn germ fraction; conditioning the fraction; flaking the fraction to increase surface area; adding water and steam to the flaked fraction; forming the flaked fraction into collets; removing oil from the collets by solvent-extraction; drying the collets; and processing the collets in a food-grade flourmill to obtain food-grade defatted corn germ flour with a desired consistency. The solvent-extraction process produces a miscella, a mixture of corn oil, hydrocarbon solvent, and water. The miscella may be processed through a distillation system to recover crude food-grade corn oil.
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