Starch Italics 5th Edition
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Transcript of Starch Italics 5th Edition
Starch Italics Table of Contents Starch Industry Overview June/July 2010
June/July 2010 © GIRACT 2010
Starch Industry Overview
Crops and grains
p.1 Record ethanol production boost, corn use
p.2 Cassava starch processing as a goldmine
Less corn will be available at close of 2009-10
marketing year
p.3 Maize rises on good spot demand
p.4 Chinese corn production, consumption and trade
Grains, beans turn on weather
p.5 Cassava exports drop as price rises
Nigeria - LG acquires 100 hectares to boost
cassava
p.6 Drought, bugs eat into cassava output
Rice/Cassava: Vietnamese, Chinese set to boost
production in Edo
Starch and derivatives
p.7 Sweet! Natural sweeteners give drink-makers
options
US soft drinks drifting back towards sugar
p.8 Corn syrup producers deal with sour U.S. sales
Bio-plastics
p.9 Bio-based plastics, environmental
considerations
Algae-based bio-plastics a fast-growing market
p.10 Cereplast Forecasts Shipment of 16 mio pounds
of bio-plastic this year (NASDAQ:C)
PTT plans green plastic venture
p.11 Bio-plastics consumption to reach 2 mio t by
2018
A new plastic bag made from sugar cane that
will prevent the emission of 78kt of CO2
Bio-fuels
p.12 Genencor launches new enzyme for ethanol
production
Ethanol fuel plan goes against the grain
Bio-fuels (Contd.)
p.13 Corn Plus to use Arisdyne cavitation technology
Growing ethanol capacity pushes corn use
higher
p.14 Commission Sets Up System for Certifying
Sustainable bio-fuels
Transformative Technology: SynGest
Cornucopia bio-refinery
p.15 Orange peels, newspapers may lead to cheaper,
cleaner ethanol fuel
Ethanol production from mixtures of wheat
straw and wheat meal
p.16 Key to alternative fuel could be winemaking
yeast
Feds dole out USD 24 mio for research to turn
algae into fuel
p.17 EBOOM CAPITAL: Big Companies Pursue
Different Next-Gen Bio-fuel Technologies
Company News
p.18 Cargill helps food and beverage manufacturers
optimize product formulation with EmulTru
starch
p.19 Roquette to build USD 27 mio feed house with
tax benefits
Corn Products to buy Akzo Nobel's National
Starch unit for USD 1.3 Bln – update
p.20 Cargill approved to build sugar refinery in
Egypt, Assal says
Sukhjit Starch & Chemicals plans INR 500 mn
capex
p.21 Corn Products Finally Acquires National
Starch- Will Bunge Move on Tate & Lyle?
p.22 Tate heralds exit from sugar with refineries sale
Bright food cuts formal offer for CSR‘s sugar
unit, review says
Tate & Lyle sells EU sugar business to US firm
p.23 AGRANA reports good start to 2010-11
financial year
(Table of contents continued on next page)
Starch Italics Table of Contents Starch Industry Overview June/July 2010
June/July 2010 © GIRACT 2010
GIRACT Global Starch and Starch Derivatives study
Giract has just launched new
multi-client research into global
starch supply, examining in
particular the impact of the
recent economic downturn on
the industry. Details in next
page.
Please do send us the email
address of your colleagues and
friends for whom you feel this
newsletter will be useful.
Company News (Contd.)
p.24 ADM christens new plant
Analyst upgrades Archer Daniels Midland on
higher pricing for high fructose corn syrup in
2011
p.25 Chudleigh Ventures announces acquisition of
Denver-Based Emerald forest sugar
Tongaat expects biggest SA maize crop in
almost three decades
DSM and Roquette to start bio-based succinic
acid joint venture
p.26 Tate & Lyle's sugar division to be sold for
GBP 200m
p.27 Singapore group buys up CSR sugar division
Corn Products posts profit in Q2; net sales up
10%; revises 2010 EPS forecast - quick fact
CSM buys up Cargill's shares in US lactic acid
plant
Others
p.28 China-ASEAN Free Trade Agreement leads to
new business opportunities
GLOSSARY
bio ‗000 000 000
cpd cases per day
crore ‗0 000 000
JV Joint Venture
k ‗000
kt ‗000 tons
klpd kilo litres per day
lakh ‗00 000
lpd litres per day
mio ‗000 000
M&A Merger
&Acquisition
pa per annum
t tons
tpa tons per annum
tpd tons per day
tph tons per hour
tpm tons per month
GIRACT
Starches and Derivatives
Impact of the economic downturn
Global Production and Supply 2009/10 – 2015
INTRODUCTION The starch industry is one of the world’s largest transformers of agricultural raw material, producing 62 mio tons (expressed as primary starch slurry with 12% moisture) when Giract published its earlier starch supply study in 2007. The many possible derivatives have long been driving the growth of the industry, allowing it to respond with great flexibility to changes and opportunities, be they global raw material availability, trade regulations, new technologies or end-use sector dynamics. The testimony is a remarkable average 4% annual growth over 30 years.
Since 2007, this dynamic has changed abruptly for several reasons:
High demand for agricultural raw materials by the fast growing Asian economies coincided with new competition from the bio-energy boom, especially in USA, leading to a record high in raw material cost
High ingredient costs forced the food industry to undertake a strong cost-cutting drive, and even though starch and their derivatives were earlier seen as ‘low-cost’ ingredients, they have now become a target for replacement in many foods and beverages
Starch production in Asia continued to expand, fuelled by strong local consumption especially in China, while European players were facing more blows from the ongoing CAP reform in the sugar and potato starch sectors
The economic recession affected starch demand as never before and in almost every end-use sector; e.g. the European paper industry saw a decline by 40% and with enough new mills in low wage countries, this demand in Europe may never be recovered.
While many agri-food industries posted record sales and profits when global food prices were exploding, major players such as Tate & Lyle decided to reduce their presence in this industry, a timely decision given that since then margins have eroded beyond historical lows. Other companies are also said to be exploring exit options.
Thus, the traditional patterns in starch production as well as the importance of Western players and markets are seriously affected, both in terms of product portfolios and players. As new supply patterns are starting to emerge, it is the right time to take stock of new opportunities and threats before making any new strategic decisions. This report thus attempts to provide a comprehensive picture of the actual global starch production and trade, by product and area, and explore which key factors are likely to influence the forecast for 2015.
Giract, the ingredients and technologies specialist and leader in market analysis of starches and their derivatives, published landmark studies in ’95, ’00, ’04 and ‘07 which pulled together starch supply by type of raw material and player across the world. These studies have been a reference for all players in the industry and for key end-users. The present update, to be published in autumn 2010, will take into account the various changes that have occurred across the world in the last few years, and will thus act as an important tool in your strategic planning.
OBJECTIVES • To identify starch and derivative production - by key country/region - by type of raw material - by type of starch and starch derivative - by key producer • To evaluate trade patterns of different types of starches and derivatives • To estimate availability of starches and derivatives by key country/ region and of starch by type of raw material • To forecast global trends in starches and derivatives to the year 2015
PRODUCTS Primary starch from different raw materials, including maize, wheat, potato and tapioca. Finished products as starches (native and modified) and starch derivatives (glucose syrup, high fructose syrup, dextrose, other hydrolysates and polyols)
MARKETS Global
TIMESCALE 2009/10 and forecast to 2015
REPORT September 2010
SUBSCRIPTION Conditions for a tailored subscription by area or by product may be requested
For more info, contact GIRACT V. Krishnakumar, Jo Goossens or Peter Brown
24, Pré-Colomb Tel: + 41 22 779 0500
1290 Versoix/Geneva Fax: + 41 22 779 0505
Switzerland [email protected]
02/10/2 www.giract.com
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Record ethanol production boost, corn use
Total U.S. corn use for 2009-10 is projected 135 mio
bushels higher to 13 190 mio bushels this month as
increased FSI use more than offsets a reduction in
expected feed and residual use. Corn use for ethanol is
raised 150 mio bushels to 4 550 mio, reflecting the
continued record pace of ethanol production and usage
through March based on the latest data from the U.S.
Energy Information Administration (EIA).
Corn use is raised 5 mio bushels each for starch and
glucose and dextrose, 240 mio and 250 mio bushels,
respectively, as the ongoing economic recovery spurs
production of these products. As a result of increased
corn used for ethanol production, feed and residual use
is lowered 25 mio bushels to 5 350 mio for 2009-10, as
more distillers‘ grains are expected to be available.
Corn exports remain unchanged this month at
1 950 mio bushels. Ending stocks for 2009-10 are
lowered 135 mio bushels to 1 603 mio, reflecting
increases in FSI use.
(Continued in next column)
Record ethanol production boost, corn use (Contd.)
Corn production in 2010-11 remains unchanged this
month at 13 370 mio bushels; however, beginning
stocks are lowered 135 mio bushels to 1 603 mio. This
lowers total supply for 2010-11 to 14 983 mio bushels,
which is still a record and up 190 mio bushels from
2009-10. According to the June 7 Crop Progress report,
corn emergence is at 94% in 18 major growing States as
of June 6. This compares with an average of 91% in the
previous 5 years and 85% last year.
(Continued on next page)
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Record ethanol production boost, corn use (Contd.)
Total corn use for 2010-11 is raised 110 mio bushels to
13 410 mio this month due to an increase in corn FSI
use. Corn used for ethanol production remains strong
into 2010-11 with a record 4 700 mio bushels projected
to be used, up 100 mio bushels from last month. Corn
used for glucose and dextrose is raised 5 mio bushels to
255 mio bushels this month. Corn used for starch was
also raised 5 mio bushels to 245 mio bushels this
month.
Corn used for starch was also raised 5 mio bushels to
245 mio this month, as economic recovery is projected
to continue and demand for these products rises. Feed
and residual use and exports remain unchanged at
5 350 mio and 2 000 mio bushels, respectively.
Projected ending stocks are lowered 245 mio bushels
this month to 1 573 mio for 2010-11.
The season-average farm price for corn is projected
higher this month for the 2010-11 marketing year, due
to higher expected use and tightening ending stocks.
The 2010-11 farm price is projected at USD 3.3 to
USD 3.9 per bushel, up 10 cents on both ends of the
range. If farmers have marketed their old crop corn at
the same rate as the average of the last 5 years, then
19% of the 2009/10 marketing year corn remains to be
sold through August. (cattlenetwork.com 14 June 2010)
Cassava starch processing as a goldmine
Starch is an important raw material that is widely used
in the food, textile, paper and pharmaceutical industries.
Interestingly, recent research by the Food and
Agricultural Organisation shows that almost all starch
varieties can be replaced with cassava starch.
(Continued in next column)
Cassava starch processing as a goldmine (Contd.)
The FAO declares that global demand for cassava
starch will increase at an annual rate of 3.1%, while
regional growth rates are expected to rise by 4.2% in
Asia; 3.4% in Latin America; and 2.3% in Africa. The
market opportunity for cassava starch exists in every
country that is consuming more starch in various
industrial processes."
Currently, Nigeria is the world's largest producer of
cassava, with production capacity estimated at over
49 mio metric t per annum. The National President,
Cassava Produce Promoters and Exporters Association
of Nigeria, Mr. Markus Magaji, says small and medium
scale entrepreneurs are currently investing in various
cassava starch processing projects across the country
due to availability of raw materials, with prospects of
high returns on investment.
The main challenges, according to him include
insufficient land for cassava cultivation in commercial
quantity, limited funding sources and poor power
supply, which may raise its cost of production. He,
however, stresses that the choice of equipment, factory
location and supply of raw materials and scale of
production are critical factors that must be considered
before investing in the business. (odili.net 28 June
2010)
Less corn will be available at close of 2009-10 marketing year
Joe Victor, vice president of Allendale, Inc. is surprised
by the June World Supply and Demand Estimates
(WASDE) report. The USDA's ending stocks for the
2009 crop are lowered 135 mio bushels. The
Department of Agriculture now thinks the U.S. will
have 1.6 bio bushels of corn in storage ahead of the
2010 corn harvest.
(Continued on next page)
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Less corn will be available at close of 2009-10 marketing year (Contd.)
According to the USDA, U.S. corn use for 2009-10 is
135 mio bushels higher because corn food, seed and
industrial use is raised by 150 mio bushels. Corn use is
also raised 5 mio bushels for starch and 5 mio bushels
for glucose/dextrose production. Expected feed and
residual use is decreased 25 mio bushels for the
current marketing year. Part of the decrease is due to
the increased availability of distillers grains.
CN0
5-
min Chart
Symbol Last Chg
Corn 356-2 +2-4
Soybeans 957-6 +8-2
Wheat 461-2 +9-4
Spring Wheat 534-6 +2-4
Oats 270-0 -4-0
(Continued in next column)
Less corn will be available at close of 2009-10 marketing year (Contd.)
The USDA's weekly export report on June 10 reported
sales of 1.019 mio metric t (40 mio bushels),
considered a strong number. Old crop sales now have
to reach just 237kt (9.3 mio bushels) weekly to reach
the USDA's export forecast for 2009-10. If China
purchases 40-80 mio bushels of corn, and one or two
mio metric t of dried distillers grains with solubles.
Minnesota's corn crop was listed 92% good to
excellent as of June 6. (farmandranchguide.com 6 June
2010).
Maize rises on good spot demand
Maize futures maintained its positive trend during
Saturday on good demand in the physical market. The
active July contract traded on a positive note and made
a high of 1103 levels after making a low of 1090 levels
with a positive change of 1099 levels with a change of
0.73%.
Maize futures are expected to trade on a positive note
on account of strong demand from feed millers and
exporters. The spot prices of Maize in Nizamabad
markets have rose to 1045 per quintal, up INR 35
compared to last week. Maize prices went up in spot
market because of good demand from poultry feed and
starch manufacturers.
Stockiest are also releasing their stocks in lower
quantities hoping further price rise. India's maize
production in 2009-10 is expected to be almost
20 mio t, up from 19.37 mio t last year. According to
government officials According to latest reports of
Ministry of Agriculture, Kahriff coarse grain area so far
10.72 mio ha against 9.52 mio
Area under maize in Andhra Pradesh as on 16th June is
reported at 8945 hectares compared to 9764 hectares
during the same period last year.
(commodtyonlinie.com 19 July 2010)
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Chinese corn production, consumption and trade
Corn crops in the U.S. and China have entered the
critical pollination and ear filling stages. As the number
one and two corn producers and users in the world,
what happens in the next 60 days will determine world
corn supplies for the upcoming marketing year. Recent
purchases of U.S. corn by the Chinese have raised
issues about Chinese production, consumption and
trade in the immediate years ahead.
USDA recently estimated U.S. corn area to be
harvested for grain in 2010 at 81.0 mio acres
(32.8 mio hectares), up 1.4 mio acres (0.6 mio hectares)
from the 2009 crop. USDA used a simple linear trend
of the national average yield for 1990-2009 adjusted for
2010 planting progress to project a yield of
163.5 bushels per acre (10.3 metric t (MT) per hectare),
down slightly from the record large 2009 yield.
In early August USDA will release its first yield
estimate for 2010 based on actual field conditions as of
August 1. U.S. production for 2010 is now projected at
a record 13.25 bio bushels (336.6 mio metric t (MMT)).
The U.S. is expected to supply 55-60% of the 90 MMT
of corn traded internationally from the 2010 crop.
Corn consumption in China has been on a steady
uptrend for the past ten years with 2010-11
consumption expected to be a record large 159 MMT.
The majority of consumption continues to be for
livestock and poultry feed, but that growth has slowed
in recent years. In 2006-07 livestock and poultry feed
was 104 MMT and is projected to be 110 MMT in
2010-11, a 6 MMT increase. Total consumption is
expected to increase 14 MMT from 2006-07 and
non-feed uses, like starch, sweetener and ethanol, to
increase by 8 MMT.
(Continued in next column)
Chinese corn production, consumption and trade (Contd.)
Imported cassava, estimated at 6.1 MMT in calendar
year 2009, could take more of that market depending on
the price of corn. Imported distillers dried grains with
soluble, a high protein co-product of ethanol
production, increased to almost 0.7 MMT in calendar
year 2009 from almost zero in 2008. Imports are
expected to increase again in 2010.
Earlier this year, the Chinese government recommitted
to a long-term self-sufficiency objective in grains
through 2020 of over 95%. Grains include wheat, rice,
corn, barley, sorghum, potatoes and pulses. According
to the U.S. Agricultural Attaché in China, the National
Development and Reform Commission (NDRC) issued
a detailed plan in November 2009 to raise annual
national grain production capacity by 50 MMT by
2020, a 10% increase from the current annual goal.
NDRC estimates yields need to increase 0.9% per year.
Corn accounts for about 30% of total grain production.
(truthabouttrade.org 16 July 2010)
Grains, beans turn on weather
Corn: An improving weather scenario and a large
speculatively-owned market left the prices vulnerable to
decline on Monday. Funds, as of Friday afternoon, were
long 193 000 contracts. That is within 30 000 contracts
of a typical capacity position. Monitoring fund activity
this week will be key as an exciting of these positions
would press values quickly. Current prices reflect
~160bpa. Allendale yield studies still suggest yields
will meet or exceed 163 bpa.
Export inspections were good at 38.91 mil bu. Export
sales on Thursday are expected to show more sales
made to China and strong demand remains under the
market for new crop. However, the old crop demand is
highly volatile. (Continued on next page)
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Grains, beans turn on weather (Contd.)
Wheat: Fundamentally, it is supportive the United
States received 28.5% of Iraq‘s complete purchase of
350kt of wheat. Not supportive to U.S. wheat futures is
how U.S. wheat was 161 per bushel more expensive
than Russia wheat. Despite the 2010 drought, Russia
has not backed off of its grain export program. That is
confusing as its difficult to maintain grain stocks
usually it is the export demand which initially suffers
the consequences.
Present world stocks to use are 23.4% vs. the previous
five year average of 19.98%. We remain convinced
corn prices are subject to more of a starch sell-off than
the wheat. Spring wheat conditions came in at 87%
good to excellent vs. 91% for a five year average
(futuresmag.com 20 July 2010).
Cassava exports drop as price rises
Viet Nam exported only 1.2 mio t of cassava worth
USD 300 mio in the first six months of the year, down
52.4% in volume and 12.8% in value, compared to the
same period last year, according to the Statistics
Bureau.
Since the beginning of the year, many traders began
buying cassava and storing it, expecting to earn big
profits from exports as in previous years. However,
they had not researched the market well, and were
caught by surprise by the other countries' lower prices.
Traders purchased dried cassava slices from farmers for
VND 1.3-1.5 mio t during last year's harvest season, but
paid VND 2.5 mio t this year.
Because of the increase in price, exporters set prices too
high for the global market. Most cassava importers are
from China, which accounts for 90% of Viet Nam's
cassava exports.
(Continued in next column)
Cassava exports drop as price rises (Contd.)
Last year in Viet Nam, export revenue of cassava
reached VND 800 mio, double the export revenue of
pepper. The country has 508 000 ha of cassava under
cultivation, and output is estimated to reach about
8.5 mio t this year, according to the Ministry of
Agriculture and Rural Development. Of the output,
Vietnam needs to export 4.3 mio t of cassava after
meeting domestic demand, said the ministry. The
ministry targets keeping the area under cassava
cultivation at 450 000 ha, partly because it wants to
limit deforestation in the country.
Farmers in the Central Highland city of Kon Tum
process cassava for export. High prices caused exports
in the first half of the year to drop in volume and value
compared to the same period last year.
Nigeria - LG acquires 100 hectares to boost cassava
Cassava cultivation and production for its cassava
processing factory, the Isoko South Local Government
Council has acquired 100 hectares for farming. The
council Chairman, Chief Askia Ogieh, told the News
Agency of Nigeria (NAN) in Oleh, headquarters of the
council, that the land was acquired from Uro
community in the area.
(Continued on next page)
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Nigeria - LG acquires 100 hectares to boost cassava (Contd.)
Ogieh said that acquiring the vast land for cassava
cultivation would help the cassava processing factory
achieve its production capacity of 50 t of fresh cassava
tubers per day. He also said that the council would be
responsible for the financial burden of the project from
cassava cultivation to the processing stage at the
factory. He said that the plant would help stimulate
appropriate economic activities in the rural
communities and thus raise the level of productivity of
the people in the area.
He also said that it would help improve on the
employment opportunities at the rural communities, and
help in reducing crime in the society. Ogieh who is also
the Chairman of ALGON in Delta, said that the need to
enhance massive cassava production for food and
industrial purpose had become imperative. Ogieh also
said that observations by trade missions on cassava
export in some African countries showed that the
demand for the product in African countries was high.
(allafrica.com 6 July 2010)
Drought, bugs eat into cassava output
The invasion of mealy-bugs and severe drought are
expected to reduce Thailand's cassava output
substantially next year and lead to heavy competition
among industries for supplies. The government
estimates that the cassava from the 2010-11 harvest
starting in October will be only 19.99 mio t, down
significantly from earlier projection of 21.3 mio.
The pink cassava mealy-bug has damaged one mio rai
of cassava plantations, mainly in the Northeast, since
late 2008. As a result, the 2009-10 crops fell to 22 mio t
from 30 mio in the previous season. Deputy Prime
Minister Trairong Suwannakhiri, chairman of the
Tapioca Policy Committee, has cautioned industries
that use cassava and tapioca to prepare for shortages.
(Continued in next column)
Drought, bugs eat into cassava output (Contd.)
Representatives of the Thai Tapioca Trade Association
have asked for the government assistance for the
industry that is worth about 170 bio baht - 70 bio from
starch and tapioca chips, and about 100 bio from food
and other industries such as paper and ethanol. They
have also urged the government to sell 74kt of tapioca
from government stocks.
This month only about 300kt of cassava have been
harvested, compared with 1.2 mio in July 2009,
according to Adul Vinaiphat, vice-president of the Thai
Tapioca Development Institute. The falling supplies
have pushed up prices across the board. Fresh cassava
is nearly four baht a kg, up from 2.50 baht last year, and
the export prices of native starch have shot up to
USD 600 per t from USD 250.
The institute is also researching new bug-resistant
strains to protect the crop that is grown by about
400 000 farm households. The government would
gradually open bids to sell its 900kt of tapioca products
in its stockpile to exporters at appropriate prices.
(bangkokpost.com 26 July 2010)
Rice/Cassava: Vietnamese, Chinese set to boost production in Edo
The Edo State Government‘s effort to achieve
sustainable food production and create employment in
agriculture has received a boost as Vietnam and China
are set to invest millions of Dollars in the sector.
Also coming to the state are Israeli farmers who will
invest in livestock development and fruits production.
Tunde Lakoju, the Edo State Commissioner of
Agriculture disclosed this today (Monday, July 5) in
Auchi, Edo and said that necessary arrangements for
the arrival of the investors had been made.
(Continued on next page)
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Rice/Cassava: Vietnamese, Chinese set to boost production in Edo (Contd.)
Lakoju said that the Vietnamese and Chinese investors
would cultivate 10 000 acres and 15 000 acres of land
for rice and cassava, respectively, adding that
processing factories for the products would also be sited
in the state. He spoke to the News Agency of Nigeria
(NAN). He added that the state had already signed a
Memorandum of Understanding (MoU) with the
investors and said that all the state had to invest in the
whole arrangement was land.
He added that products like ethanol, industrial starch,
noodles would be derived from the rice and cassava
production and said that such items would be further
processed for export. (businessdayonline.com 5 July
2010)
Sweet! Natural sweeteners give drink-makers options
High fructose corn syrup and sugar are still the main
sweeteners used in full-calorie drinks, and aspartame
remains the popular choice for sweetening diet drinks.
But in recent years, Coca-Cola, PepsiCo and other
companies have been trying to develop what might be
considered the holy grail: an all-natural sweetener that
has the taste of sugar, yet few or none of the calories.
The first natural diet sweetener to gain FDA approval
was rebaudioside A, which is derived from the sweetest
part of the South American stevia herb.
SoBe Lifewater contains Reb-A.
(Continued in next column)
Sweet! Natural sweeteners give drink-makers options (Contd.)
Reb-A, as it's called in the industry, is about 200 to 300
times sweeter than sugar. Since it was approved in
2008, beverage companies have rolled out a small but
growing number of products containing the calorie-free
sweetener, such as PepsiCo's SoBe Lifewater and
Coke's Sprite Green.
The hope is that reb-A and other natural sweeteners in
the works will appeal to consumers looking for low-
calorie beverage options with fewer artificial
ingredients.
Experts say the search for new natural sweeteners isn't
motivated by safety concerns about existing sugar
substitutes. Despite years of controversy, there's no
credible evidence that aspartame, sucralose (also known
as Splenda) or other artificial sweeteners are unsafe
when used in moderation.
Reb-A is challenging to use in some drinks, because it
can leave a bitter aftertaste. Other sweeteners derived
from the stevia leaf are also being developed. And
beverage companies are working on ways to enhance
the sweetness of sugar and high fructose corn syrup, so
that less of it is needed, lowering the calorie count.
(suntimes.com 14 June 2010)
US soft drinks drifting back towards sugar
Soft drinks in the United States are trending back
towards sugar, with the recent announcement by The
Dr Pepper Snapple Group that it will switch Dr Pepper
back to sugar from high-fructose corn syrup, for a
limited time as part of its 125th anniversary
celebrations. The reformulated product will also bear
nostalgic Dr Pepper slogans and can designs. PepsiCo‘s
Sierra Mist product is also rumored to be about to
reformulate into Sierra Mist Natural, with sugar instead
of HFCS. (Continued on next page)
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US soft drinks drifting back towards sugar (Contd.)
Other sugar-based soft drinks, including kosher and
Mexican-made versions of Coca-Cola, fetch a premium
in the US. A nostalgic real-sugar campaign by Pepsi,
‗Throwback‘, was also extremely successful.
HFCS was introduced in the 1970s as a cheaper
alternative to sugar in the US, but is widely believed to
be less healthy, particularly in regard to weight gain.
Research on the product‘s effects has been
inconclusive.
‗Nostalgia‘ campaigns provide an ideal testing ground
for soft-drink manufacturers, allowing them to test the
market for sugar-sweetened soft drinks without
admitting that their HFCS products are inferior or less
healthy. (ausfoodnews.com.au 6 July 2010)
Corn syrup producers deal with sour U.S. sales
Fans of natural foods have tried for years to push the
ubiquitous sweetener high fructose corn syrup off
Americans' dinner tables and out of their restaurants
and grocery stores. U.S. use of the sweetener found in
most soft drinks, cereals and a range of other products
dropped 11% between 2003 and 2008, the most recent
year figures were available. A number of companies
also have stopped using corn syrup in some or all
products, including Hunt's ketchup, Snapple, Gatorade
and Starbucks' baked goods. (Continued in next
column)
Corn syrup producers deal with sour U.S. sales (Contd.)
Producers blame the decline on a campaign that argues
corn syrup is behind rising obesity in the U.S. They also
accuse the sugar industry of pushing a campaign that
has helped sugar refining increase about 7% from 2003
to 2008. As of 2008, high fructose corn syrup makers
produced an average of 53.1 pounds a year for every
American, compared with 65.7 pounds of sugar
produced for use in the U.S., according to the U.S.
Department of Agriculture. The agency doesn't track
consumption.
High fructose corn syrup was first developed in the
1950s but didn't come into widespread use until the
1970s and 1980s. It's made from corn starch, which is
processed into corn syrup that is high in glucose. Added
enzymes turn the glucose into fructose, a sugar found in
some sweet fruits and honey. Quotas and tariffs
imposed on imported sugar in the late 1970s prompted
food manufacturers to begin relying more on corn
syrup. Coca Cola and Pepsi both switched from sugar to
high fructose corn syrup in the 1980s.
Producers don't welcome the trend away from corn
syrup, but seem positioned to handle it. Companies
such as Archer Daniels Midland Co., Cargill Inc. and
Corn Products International sell dozens of corn and
grain-derived products, and although U.S. sales are
dropping, they're selling more in some other countries,
especially Mexico. That's not likely to change unless
sugar prices drop so low they can't resist.
(pantagraph.com 5 June 2010)
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Bio-based plastics, environmental considerations
Most commercially available bio-based resins are
produced from sugar or starch derived from food crops
such as corn and sugarcane. Over the past few years,
the use of food crops to produce bio-fuels has become
highly controversial; the same may happen with
bio-based resins. However, this is only if the scale of
bio-based polymer production grows.
According to Telles VP Findlen, ―If the bio-plastics
industry grows to be 10% of the traditional plastics
industry, then around 100 bio pounds of starch will be
necessary, and there is no question that that will have
an effect on agricultural commodities.‖
Unfortunately, this cannot be done sustainably because,
according to the Living Planet Report, our current
demand for the Earth‘s resources is 1.25 times what the
planet can sustain. Put another way, on September 25th
of this year our resource use surpassed what is
sustainable. What this would mean as a financial issue
is that we are living off our principle.
(greenerpackage.com 14 June 2010)
Algae-based bio-plastics a fast-growing market
Food crops are commonly being used as raw materials
for plastics, but researchers are now looking out to sea
for future feed-stocks. An increasing number of
researchers are looking to get plastics from the sea - not
by fishing out discarded bottles, but by using marine
life forms as a raw material to make polymers.
(Continued in next column)
Algae-based bio-plastics a fast-growing market (Contd.)
It is already widely used as a raw material for bio-fuels,
but this is increasingly extending to plastics. US-
headquartered Cereplast, which already makes plastics
from starch, expects to start producing algae-based
polymers by the end of this year.
A number of established products already exist: Ingeo,
from US group Nature Works, is the company's trade
name for polylactic acid (PLA), a polymer derived from
corn; MaterBi is a starch-derived polymer from Italian
research group Novamont; and US chemical giant
DuPont has produced a nylon that is derived in part
from castor bean oil. It is also worth noting that one of
the earliest polymers to be commercialized, Cellophane,
is made from cellulose.
The company has already begun to look at alternative
feedstocks last year, it launched biopolymer grades
based on biomass, wood chips and flax. But it believes
that algae could eventually become a more important
feedstock than starch. Scheer says that, in five years,
agricultural feedstocks could account for just 30% of
Cereplast's business; a further 30-40% might be algae,
with up to 30% coming from "other" sources. The
Cereplast factory usually smells like a bakery, rather
than a plastics factory; with algae, the smell is closer to
a fish processing factory.
Cereplast expects to have two algae-based grades ready
by the end of this year: one for injection molding, and
one for thermoforming. Its Biopropylene, for example,
is derived equally from petroleum and starch -
producing a polymer that has "similar physical
characteristics" to traditional polypropylene (PP).
(icis.com 18 June 2010)
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Cereplast forecasts shipment of 16 mio pounds of bio-plastic this year (NASDAQ:CERP)
Topping our market movers list this morning, Cereplast
(NASDAQ:CERP) announced today that it is expecting
to ship 16 mio pounds of bio-plastic resins to customers
in 2010, representing a 400% increase in shipments
compared to the same period last year. It was noted that
the company has recently entered into distribution
agreements with Ashland Inc and Bunge Alimentaris
(Brazil).
For those unfamiliar with Cereplast‘s product offerings,
the company makes compostable resins as a substitute
for petroleum based plastics. The company has also
recently moved from its home in Southern California to
Seymour Indiana. Although the move incurred some
moving and closing costs, overall it will reduce real
estate and utility costs moving ahead.
With rising demand for green products as an alternative
to petroleum sourced material and significant revenue
traction, CERP is very happy with their current position
in the market. The simple metric of shipments is a great
way to understand the current status of a company,
continued performance and international sales are sure
to help any firm turn profits.
Currently CERP is trading at USD 3.5 up .48 or 15% on
a volume of 37 upon release of the news. The company
has been declining in equity price in 2010 and has been
as high as USD 6.73 in the past year. It will be
interesting to watch how the company‘s stock price
reacts to the new news in the upcoming weeks.
(worldmarketmedia.com 8 June 2010)
PTT plans green plastic venture
Thailand's national oil flagship PTT has joined with
Mitsubishi Chemical Corp (MCC) to build the first
biodegradable plastics plant to serve the rising global
trend, says Prajya Phinyawat, PTT's chief operating
officer for downstream petroleum business. The two
companies are studying the possibility of investing first
in downstream biodegradable products, including
polylactic acid (PLA) and polybutylene succinate
(PBS).
Dr Prajya said that while the size of the investment had
yet to be determined, the production capacity should be
at least 30kt yearly to achieve economies of scale.
There is no local production for PLA in the country but
US-based Natureworks has planned to begin such an
operation in 2013. She said the two types of
downstream biodegradable plastics were in high
demand amid the rising awareness of climate change.
As one of the world's major producers of cassava and
sugar, Thailand has abundant supplies of the raw
materials for bio-plastics production, making it a
competitive, low-cost location for production.
PTT and MMC, its key bio-plastics partner, will co-
invest in two plants, a downstream biodegradable resin
plant and an upstream plant, said Hiroaki Ishizuka,
managing executive officer for supervision
petrochemicals. Thailand was picked due to its plentiful
tapioca starch and sugar resources and full government
support.
The two companies yesterday also signed a
memorandum of understanding with the National
Innovation Agency and the Ministry of Environment
and Natural Resources to build a 5-mio-baht organic
fertiliser factory from organic waste on Koh Samet,
Rayong. Ranked among the top garbage-producing
areas, the resort island generates 6t of waste daily.
(bangkokpost.com 23 July 2010)
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Bio-plastics consumption to reach 2 mio t by 2018
Bio-plastics, with consumption of only just above 225kt
in 2008 will reach a level of about 900kt by 2013.
Global demand for bio-plastics, which include plastic
resins that are biodegradable or derived from plant-
based sources, will rise more than fourfold to 890kt in
2013, as per Freedonia. This extraordinary growth will
be fueled by a number of factors, including consumer
demand for more environmentally-sustainable products,
the development of bio-based feedstocks for
commodity plastic resins and increasing restrictions on
the use of plastic products, particularly plastic bags.
Looking ahead to 2018, world bio-plastics demand is
forecast to reach nearly 2 mio t, with a market value of
over USD 5 bio.
Biodegradable plastics, such as starch based resins,
polylactic acid and degradable polyesters, accounted for
the vast majority (nearly 90%) of bio-plastics demand
in 2008. In the next few years, Dow Chemical and
Braskem are each planning to open plants in Brazil that
will produce polyethylene from bio-based ethanol.
Other firms are expected to open bio-based polyvinyl
chloride and polypropylene facilities. As a result,
demand for non-biodegradable plant-based plastics will
increase from just 23kt in 2008 to nearly 600kt in 2013.
Western Europe was the largest regional market for
bio-plastics in 2008, accounting for about 40% of world
demand. Currently, world bio-plastics production is
heavily concentrated in the developed countries of
North America, Western Europe and Japan. This will
change dramatically by 2013, as China is expected to
open over 100kt of new bio-plastics capacity.
Furthermore, once the planned bio-based polyethylene
and polyvinyl chloride plants come online, Brazil will
become the world‘s leading producer of bio-plastics in
2018. (plastemart.com 14 July 2010)
A new plastic bag made from sugarcane that will prevent the emission of 78kt of CO2
In particular it is made with ethanol from sugarcane and
for certain applications, too, with potato starch. A new
plastic bag made from sugar cane that will prevent the
emission of 78kt of CO2. The industrial plastics group
Sphere has developed a new plastic bag made of
polyethylene from bio-plastic to prevent the emission of
78kt of carbon dioxide (CO2) into the atmosphere.
According to estimates provided by the company,
between 15kt and 20kt of polyethylene bags can reduce
plant pollution figures. Regarding fossil fuels, the
polyethylene bag (the traditional plastic bags) in an
amount equivalent to a car that emits 125g of
CO2 per km for 15 600 times around the world.
Polyethylene Plant is the first bio-plastic in industrial
production to absorb carbon, which presents a potential
for reducing greenhouse gases. Potato starch gives
elasticity, opacity and texture, while sugar cane can get
the same mechanical properties as an ordinary
polythene bag. (bangkokpost.com 23 July 2010)
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A new plastic bag made from sugar cane that will prevent the emission of 78 000 t of CO2 (Contd.)
In addition, sugar cane is a natural carbon source which
contributes to further reduce CO2 in the growth phase
than other ethanol production plants, and has a yield of
2t per hectare, about 5-10 times more than other plants
that produce ethanol.
Sphere said that this material is adapted to "all its
current uses," such as garbage bags, freezing or
transparent film, and maintains the same technical
properties equivalent to fossil carbon polyethylene,
such as transparency, opacity, brightness or colours and
is suitable for food. Finally, the company says that in
January 2011 it expects to replace all fossil
polyethylene products with polyethylene plant for all its
national brands in Europe.
Genencor launches new enzyme for ethanol production
Genencor, a division of Danisco A/S, today launched
SPEZYME® Robust Starch Liquefaction (RSL) at the
2010 Fuel Ethanol Workshop and Expo (FEW) in St.
Louis, Mo.
The latest in the company's liquefaction product line,
the enzyme more efficiently liquefies dry ground corn
or milo, significantly reducing costs and increasing
yields for ethanol producers. This" is liquefaction
without compromise," said Troy Wilson, Genencor's
vice president of grain processing.
(Continued in next column)
Genencor launches new enzyme for ethanol production (Contd.)
Unlike the conventional liquefaction enzymes,
SPEZYME® RSL breaks down starch efficiently across
a range pH levels, substantially reducing the amount of
sulfuric acid that is required to complete the
liquefaction process. In addition, while the current
practice typically requires two pH adjustments and two
enzyme doses, SPEZYME® RSL is effective with just
one dose and no pH adjustment. Actual cost savings
will vary depending on the production facility;
however, many ethanol producers can expect to see a
25 to 50% reduction in sulfuric acid usage with
SPEZYME® RSL. (digitaljournal.com 14 June 2010)
Ethanol fuel plan goes against the grain
The Against Ethanol Mandates Alliance, a body which
has the backing of the RACQ and the Motor Trades
Association, has warned that the use of edible wheat
stocks to produce ethanol would lead to higher food
bills and urged governments to look at alternative
sources. The mandate is in place in NSW where more
than 50% of ethanol is produced from edible grain
stocks and the remainder from a wheat starch by-
product. The same applies to Queensland with very
little coming from sugar cane. But the State
Government has denied production would place undue
pressure on grain prices.
Mr Cudmore, president of the Australian Lot Feeders'
Association, said 80% of Australia's grain harvest was
consumed on the east coast in feedlots and food
production. He also said the alliance was examining the
fairness of ethanol fuel prices, which he said were too
high considering ethanol blends were less fuel efficient
than regular unleaded.
But Mr Nielsen denied this, as well as accusations that
the Government was using ethanol as a token
environmental gesture. Mr Nielsen said that ethanol
could be 'an important component of the state's
alternative energy consumption'. (goldcoast.com.au
16 June 2010)
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Corn Plus to use Arisdyne cavitation technology
The Corn Plus Board of Directors voted to license and
acquire Arisdyne‘s patented cavitation system, which
will enable the plant to increase ethanol production by
4% or more over the yield produced previously on the
same volume of corn consumed. Cavitation‘s intense
power assists ethanol plants with converting higher
percentages of available starch from a bushel of corn
without making investments in new capital, consuming
large amounts of power, or degrading process
capacities.
Arisdyne and Corn Plus have been working together to
install a retrofit system at the Winnebago plant, which
conducted a test at full capacity over a period of two
months without any interruption. ―The cooperation and
team work of this project enabled us to install and start
up the system in a week,‖ noted Fred Clarke, executive
vice president of Arisdyne. Corn Plus has been a
respected pioneer in adopting new technologies over
the past decade, which led the Arisdyne team to seek
their cooperation in this test initiative.
Dr. Reimers, president and CEO of Arisdyne expained
―Since today‘s plants cannot expand their capacities for
economies of scale, yield improvements must be
implemented to improve margins. Making more starch
available for fermentation is the first step. The second
step will be to simultaneously convert cellulose from
corn fiber to ethanol. Accomplishing both steps
concurrently with the same equipment demonstrates the
advance fuel potential for current corn-based plants
within the existing infrastructure.‖
(ethanolproducer.com 15 June 2010)
Growing ethanol capacity pushes corn use higher
The U.S. Department of Agriculture's World
Agricultural Supply and Demand Estimates (WASDE),
released earlier this week, projected U.S. feed grain
production for 2010-11 is unchanged, but said that a
smaller carry-in for corn, sorghum and barley is
expected to reduce domestic feed grain supplies.
According to the WASDE report, corn for food, seed
and industrial (FSI) use is projected 110 mio bushels
higher for 2010-11, mostly in line with higher projected
corn use for ethanol, sweeteners and starch for 2009-10.
The higher use of corn, combined with lower beginning
stocks and drops projected in 2010-11 corn ending
stocks - 245 mio bushels to 1 573 mio, is estimated to
increase average farm price for corn by 10 cents, along
with other feed grains, the WASDE report said.
The report said that U.S. corn use for 2009-10 is
projected 135 mio bushels higher as increased FSI use
more than offsets a reduction in expected feed and
residual use. Corn use for ethanol, the report said, is
increased by 150 mio bushels, reflecting the continued
record pace of ethanol production and usage through
March based on the latest data from the Energy
Information Administration (EIA).
According to Matt Hartwig of the Renewable Fuels
Association, for the week ending June 4, the EIA is
reporting ethanol production averaged 839 000 barrels
per day (b/d), figuring out to more than 35 mio gallons
daily.(Continued on next page)
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Growing ethanol capacity pushes corn use higher (Contd.)
The WASDE report said corn use is increased by
5 mio bushels each for starch and glucose/dextrose as
the gradual economic recovery spurs production of
these products. Feed and residual use was lowered
25 mio bushels with increased availability of distiller‘s
grain, which is a byproduct of ethanol production. The
WASDE report said that U.S. corn ending stocks for
2009-10 are projected to be 135 mio bushels lower. At
1 603 mio bushels, this year's ending stocks would be
down 70 mio bushels from 2008-09, according to the
report. (theindependent.com 13 June 2010)
Commission Sets Up System for Certifying Sustainable Bio-fuels
The Commission has decided to encourage industry,
governments and NGOs to set up certification schemes
for all types of bio-fuels, including those imported into
the EU. It laid down what the schemes must do to be
recognized by the Commission. This will help
implement the EU's requirements that bio-fuels must
deliver substantial reductions in greenhouse gas
emissions and should not come from forests, wetlands
and nature protection areas. Novozymes welcomed the
European Commission plans to promote sustainable
bio-fuels by setting up a quality-certification process
for biodiesel and ethanol.
Meanwhile Novozymes announced the launch of a new
enzyme that makes it possible to produce more ethanol
from the same amount of corn. (Continued in next
column)
Commission Sets Up System for Certifying Sustainable Bio-fuels
The product, Spirizyme Excel, converts more starch in
corn, wheat, and other feedstocks into sugars which can
be fermented to ethanol, thereby allowing producers to
increase yields by more than 1%. Compared to other
available solutions, a typical ethanol plant can gain
USD 1 mio or more per year using the enzyme.
Today, an average acre of corn will yield roughly
440 gallons of ethanol. Corn yields have improved by
70% per acre and ethanol plants can get 50% more
ethanol out of the corn compared to 1977. In 2009, the
US produced 10.8 bio gallons of ethanol, which
supported nearly 400 000 jobs, contributed
USD 53.3 bio to GDP, and displaced the need for
364 mio barrels of oil. US legislation mandates
production of 12 bio gallons of ethanol in 2010.
(foodingredientsfirst.com 11 June 2010)
Transformative technology: SynGest Cornucopia Bio-Refinery
Today, when we make ethanol from corn, we are not
actually making corn starch ethanol but really whole
ground corn ethanol. It may seem subtle, but there is an
enormous difference between fuels produced from just
corn starch vs. whole ground corn.
Cornucopia is mainly a re-design of existing systems
while deploying some new key technologies that are
critical to unlocking the bigger opportunity which is
removing the food vs. fuel issue and simultaneously
making food, fertilizer and fuel. The key new
technology that unlocks the opportunity to do this is
SynGest‘s oxy-blown gasification technology.
(Continued on next page)
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Transformative technology: SynGest Cornucopia Bio-Refinery (Contd.)
It is used to produce high yield, low cost syngas for the
production of downstream bio-fuels, bio-products and
fertilizers. There are five technologies that unlock the
opportunity for Cornucopia which include ―Slipstream‖
biomass harvesting, dry fractionation, fermentation,
gasification and food-grade oil extraction
The input is 245 000 acres of corn and the quantity of
fuel produced is 132 mio gallons of fuel. A typical
110 mio GPY ethanol plant, when retrofit to ferment
starch vs. whole corn, will produce 20% more fuel per
year for a total of 132 mio GPY. 71 mio Lbs of food
grade corn oil and 74kt of high grade protein is
produced.
A 132 mio GPY plant as noted above will use approx.
245 000 acres of corn (200 bushels per acre). From that
corn, 71 mio Lbs of food grade corn oil will be
produced and 74kt of high grade protein. For
production of fertilizer, 500 000 acres of corn is used.
Of the bran and cobs, 50kt of anhydrous ammonia
(nitrogen fertilizer) will be produced.
The Cornucopia Bio-Refinery shows us that a re-design
of the system that allows us to produce food, fertilizer
and fuel is in fact a better way forward. Also, rather
than assume that we can and should unlock the sugars
bound up in cellulose and ferment them, Cornucopia
Bio-Refinery shows us that using that cellulose to drive
down the GHG footprint via gasification and
production of fertilizer, and then using existing highly
efficient fermentation technologies is a better way.
(biofuelsdigest.com 16 June 2010)
Orange Peels, Newspapers May Lead To Cheaper, Cleaner Ethanol Fuel
University of Central Florida professor Henry Daniell
has developed a groundbreaking way to produce
ethanol from waste products such as orange peels and
newspapers. (Continued in next column)
Orange Peels, Newspapers May Lead To Cheaper, Cleaner Ethanol Fuel (Contd.) Daniell‘s technique -- developed with U.S. Department
of Agriculture funding -- uses plant-derived enzyme
cocktails to break down orange peels and other waste
materials into sugar, which is then fermented into
ethanol.
Corn starch now is fermented and converted into
ethanol. But ethanol derived from corn produces more
greenhouse gas emissions than gasoline does. Ethanol
created using Daniell‘s approach produces much lower
greenhouse gas emissions than gasoline or electricity.
There‘s also an abundance of waste products that could
be used without reducing the world‘s food supply or
driving up food prices. In Florida alone, discarded
orange peels could create about 200 mio gallons of
ethanol each year, Daniell said.
Daniell said no company in the world can produce
cellulosic ethanol -- ethanol that comes from wood or
the non-edible parts of plants.
Depending on the waste product used, a specific
combination or ―cocktail‖ of more than 10 enzymes is
needed to change the biomass into sugar and eventually
ethanol. Orange peels need more of the pectinase
enzyme, while wood waste requires more of the
xylanase enzyme. All of the enzymes Daniell‘s team
uses are found in nature, created by a range of
microbial species, including bacteria and fungi.
(independentngonline.com 24 June 2010)
Ethanol production from mixtures of wheat straw and wheat meal
Bio-ethanol can be produced from sugar-rich, starch-
rich (first generation; 1G) or lingo-cellulosic (second
generation; 2G) raw materials. Integration of 2G
ethanol with 1G could facilitate the introduction of the
2G technology. (Continued on next page)
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Ethanol production from mixtures of wheat straw and wheat meal (Contd.)
The capital cost per t of fuel produced would be
diminished and better utilization of the biomass can be
achieved. It would, furthermore, decrease the energy
demand of 2G ethanol production and also provide both
1G and 2G plants with heat and electricity. In the
current study, steam-pretreated wheat straw (SPWS)
was mixed with pre-saccharified wheat meal (PWM)
and converted to ethanol in simultaneous
saccharification and fermentation (SSF).
Both the ethanol concentration and the ethanol yield
increased with increasing amounts of PWM in mixtures
with SPWS. The maximum ethanol yield (99% of the
theoretical yield, based on the available C6 sugars) was
obtained with a mixture of SPWS containing 2.5%
water-insoluble solids (WIS) and PWM containing
2.5% WIS, resulting in an ethanol concentration of
56.5 g/L.
This yield was higher than those obtained with SSF of
either SPWS (68%) or PWM alone (91%). Mixing
wheat straw with wheat meal would be beneficial for
both 1G and 2G ethanol production. However,
increasing the proportion of WIS as wheat straw and
the possibility of consuming the xylose fraction with
pentose-fermenting yeast should be further investigated
Key to Alternative Fuel Could Be Winemaking Yeast
Researchers looking for alternatives to fossil fuels say
they may have found an unlikely ally in certain strains
of wine yeast. Their discovery could lead to clean
energy sources that make economic sense. Scientists
have been exploring bio-fuels for decades now, hoping
to find a replacement for gasoline. The problem has
often been developing a bio-fuel that is price
competitive with good old unleaded producer, the
United States; starch is harvested from corn for
bio-ethanol. (Continued in next column)
Key to Alternative Fuel Could Be Winemaking Yeast (Contd.)
For example, in Brazil, which produces a third of the
world's bio-ethanol, glucose is obtained from sugar
cane and fermented into ethanol. The United States, the
world's largest bioethanol producer, starch is harvested
from corn for bioethanol. The problem is that both are
popular crops for food. Corn-based ethanol is not
economically efficient and only survives thanks to
government subsidies. And one famous study showed
that the amount of emissions produced by corn and
sugar cane ethanol production were similar to those
produced by oil.
An alternative to corn, sugar cane and other crops are
wild grasses and inedible plant parts, like switch grass
and corn stover. But a great deal of the sugar in such
plants comes in the form of xylose, and there is
currently no known strain of yeast found that can
convert xylose to ethanol efficiently enough to compete
with corn and sugar.
Scientists at the department of genetics at Stanford
University published a study in June in the Public
Library of Science periodical Genetics that focused on
finding an efficient yeast to break down xylose into a
usable bio-fuel. According to one of the scientists
working on the project, Gavin Sherlock, the team was
able to identify 38 strains of yeast that can convert
xylose into ethanol. All 38 are strains of yeast for
winemaking. (winespectator.com 20 July 2010)
Feds dole out USD 24 mio for research to turn algae into fuel
Algae has attracted a lot of attention in the bio-fuel
world because some species have high oil content. In
fact, some algal fuel companies are using these
organisms to develop not only transportation fuel but
also edible oils – think salad dressing – and cosmetics
ingredients.
(Continued on next page)
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Feds dole out USD 24 mio for research
to turn algae into fuel (Contd.)
The government is eager to replace fossil fuels with
more renewable sources, which include corn ethanol
and a variety of other fuels made from plants, microbes
and simple organisms like algae. Legislation passed in
2007 requires the country's refineries to blend 36 bio
gallons of renewable transportation fuels into the U.S.
fuel supply per year by 2022, and only 15 bio of them
may come from ethanol made of corn starch.
Agriculture Secretary Tom Vilsack released a report
outlining the government's efforts to reach the 2022
goal. The United States produced 10.75 bio gallons of
ethanol (mostly out of corn starch) in 2009, and the
government expects the output to reach 12 bio gallons
this year, according to the report. Except for biodiesel,
all other types of alternative fuels remain in early stages
of commercialization.
Large oil companies also have shown a keen interest in
the potential of algae. BP, for one, struck a USD 10 mio
deal with Martek Biosciences to figure out ways to
grow the organisms on a large scale. ExxonMobil
(XOM) has said it would invest USD 600 mio to
commercialize algae fuel production, a process its
executives say they expect to take at least five or 10
years. (dailyfinance.com 29 June 2010)
EBOOM CAPITAL: Big companies pursue different next-gen bio-fuel technologies
While the ethanol subsidy debate rages in Washington,
D.C., the big oil and chemical companies continue their
small experiments into next-generation bio-fuels.
EBOOM CAPITAL reviewed what the ―Bigs‖ are
doing and which technologies they are pursuing. The
results make it clear that investors won‘t be buying
shares of these companies for their next-gen bio-fuel
prospects. (Continued in next column)
EBOOM CAPITAL: Big companies pursue different next-gen bio-fuel technologies (Contd.)
Here‘s the score in the early innings:
BP plc (NYSE: BP) (Q1 2010 revenue/profit: USD 74.4
bio/USD 6.2 bio) will become the second largest next-
gen bio-fuels producer in the U.S. in 2012 with its USD
98 mio acquisition on July 15 of the cellulosic bio-fuel
business of Verenium Corporation (NASDAQ:
VRNM). The company has planned for other next-gen
activities namely a joint venture with DuPont, called
Butamax Advanced Bio-fuels to develop and
commercialize bio-butanol, a USD 500 mio investment
over 10 years in the U.S. in the Energy Biosciences
Institute, collaborations with Martek Biosciences
Corporation (conversion of sugars to biodiesel) and
Mendel Biotechnology (feedstock development).
Royal Dutch Shell plc (NYSE: RDS:A) (Q1 2010
revenue/profit: USD 88 bio/USD 5.56 bio) claims it
distributes 9 bio liters (2.37 bio U.S. gallons) of bio-
fuels annually, making it the world‘s largest bio-fuels
distributor. The company obscures the fact that this is
conventional crop-based ethanol, not to be confused
with next-generation bio-fuel made from non-crop
sources.
(Continued on next page)
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EBOOM CAPITAL: Big companies pursue different next-gen bio-fuel technologies (Contd.)
Shell‘s next-gen bio-fuel activities include a 50%
equity interest in Logen Energy, a Canadian company
which has been producing cellulosic ethanol from
wheat straw at a demonstration plant since 2004 (2010
production: 200 000 U.S. gallons); an unspecified
equity interest in Virent Energy Systems, Inc. of
Madison, Wisconsin, which opened a demonstration
plant in 2010 converting plant sugars into gasoline as
well as a joint venture, called Cellana, with HR
Bio-Petroleum of La Jolla, California, to build a pilot
plant in Hawaii to grow marine algai and produce
vegetable oil for conversion into bio-fuel.
E.I. du Pont de Nemours & Company (NYSE: DD)
(Q1 2010 revenue/profit: USD 8.84 bio/USD 1.13 bio)
has a bio-fuels collaboration with Danish food and
enzyme company Danisco called DuPont Danisco
Cellulosic Ethanol LLC (DDCE). DDCE has a
250 000-gallon-per-year demonstration-scale refinery in
Tennessee, will announce plans this year for a
commercial-scale plant producing cellulosic ethanol
from corn stover, and intends to build a second
commercial cellulosic ethanol plant using switchgrass
as feedstock.
ExxonMobil Corporation (NYSE:XOM) (Q1 2010
revenue/profit: USD 90 bio/USD 6.3 bio) is focusing its
next-gen bio-fuel activities on a USD 600-mio 10-year
collaboration with Synthetic Genomics, Inc (SGI) of La
Jolla, California, that began in July of 2009 to develop
algae bio-fuels.
Valero Energy Corporation (NYSE: VLO) (Q1 2010
revenue/profit: USD 19.64 bio/-USD 0.13 bio), North
America‘s largest independent oil refiner and marketer,
had revenue and operating income of USD 570 mio and
USD 57 mio from the 10 conventional ethanol plants it
acquired last year from bankrupt Verasun. (Continued
in next column)
EBOOM CAPITAL: Big companies pursue different next-gen bio-fuel technologies (Contd.)
Valero also has interests in next-gen startups Qteros
(Massachusetts-based company working on converting
woody biomass and fast-growing grasses to cellulosic
ethanol), ZeaChem (Oregon-based plant working on
converting poplar trees to cellulosic ethanol), Terrabon
(Texas-based company working on converting sorghum
to petroluem-equivalent fuel) and Solix (Colorado-
based company working on growing algae for
conversion to bio-fuels).
Archer Daniels Midland Company (NYSE: ADM)
(Q ending March 31, 2010 revenue/profit:
USD 15 bio/USD 425 mio) will have conventional
ethanol production capacity of 1.8 bio gallons per year
by the end of 2010, eclipsing POET as the largest
producer in the U.S. ADM also produces 450 mio
gallon of biodiesel, mostly refineries outside the U.S.
ADM has collaborations with Deere & Company
(NYSE: DE), Monsanto Company (NYSE: MON) and
ConocoPhillips (NYSE: COP) on research to turn crop
residues into feed and bioenergy products.
(energyboom.com 21 July 2010)
Cargill helps food and beverage manufacturers optimize product formulation with EmulTru starch
EmulTru starch, an emulsifying starch made from waxy
corn, provides food and beverage makers the same
functionality in products as gum arabic does, while
delivering a potential costs savings of 25%.
(Continued on next page)
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Cargill helps food and beverage manufacturers optimize product formulation with EmulTru starch (Contd.)
EmulTru starch outperforms other starches targeted at
replacing gum arabic, and addresses a very real concern
that customers have about cost, supply and performance
consistency.
Gum arabic is an emulsifier that gives beverages
consistent flavor and appearance features, such as
cloudiness or coloration. The largest supplier of gum
arabic is Sudan, where drought, locust infestations and
conflict have affected the price and supply of Sudanese
production. Industry experts say that prices will be up
and supply down in 2010 and beyond. In addition, gum
arabic also can perform inconsistently due to
challenging growing conditions in that country.
"The beverage industry is fiercely competitive, and the
instability in the gum arabic market is a serious
challenge for many of our customers," said Shieh. "At
Cargill, our challenge is to help our customers find a
way to mitigate those risks, which we're doing with
EmulTru starch." (finchannel.com 16 June 2010)
Roquette to build USD 27 mio feed house with tax benefits
Roquette America, Inc. will build a USD 27 mio feed
house, an upgrade of its corn gluten feed operation at
the Keokuk plant site. The project will support the 48
jobs that depend upon the feed operation, improve the
energy efficiency of the plant and significantly reduce
emissions of regulated air pollutants.
Roquette, based in Lestrem, France, manufactures corn
starches, starch derivatives and other products of the
corn wet milling process, including corn syrup, food-
and pharmaceutical-grade dextrose, animal feed and
other products. (Continued in next column)
Roquette to build USD 27 mio feed house with tax benefits (Contd.) The announcement of the upgrade comes five months
after the corn processor was court-ordered to pay a
USD 1 mio penalty for air pollution-related violations
related to wet milling corn. The judge also ordered
Roquette to build a new feed-house that would have
more efficient equipment and better air pollution
controls.
Snyder said the local match for the project is USD 3.8
mio, ―which the City of Keokuk will be financing with
the construction of a water tower. It is estimated that
Roquette America will utilize 70% of the capacity of
this new water tower.‖ (dailygate.com 11 June 2010)
Corn Products to buy Akzo Nobel's National Starch unit for USD 1.3 bio – update
Agriculturally derived ingredients provider Corn
Products International, Inc (CPO: News ) said Monday
that it has entered into a. definitive agreement to
acquire specialty starch business National Starch from
the Netherlands-based coatings and specialty chemicals
company Akzo Nobel NV (AKZOY.PK:News ) for
USD 1.3 bio in cash. The deal is expected to close in
the third quarter of 2010, subject to regulatory
approvals.
Meanwhile, Akzo Nobel noted that the buyer will also
assume certain pension and employee benefit liabilities.
The acquisition, which has been approved by the
Boards of both Corn Products and Akzo Nobel, would
create an ingredient solutions leader with nearly
USD 5 bio in revenues. Westchester, Illinois-based
Corn Products expects the deal to also gives it access to
new markets such as Europe and Asia-Pacific.
(Continued on next page)
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Corn Products to buy Akzo Nobel's
National Starch unit for USD 1.3 bio – update (Contd.)
National Starch, a New Jersey-based specialty starches
provider, was taken over by Akzo Nobel as part of its
acquisition of Imperial Chemical Industries Plc, or ICI,
in January 2008. With 2 250 employees, National
Starch operates 11 plants in eight countries, including
United Kingdom, Germany, Australia, and New
Zealand, which are new geographies for Corn Products.
Akzo Nobel decided to sell the unit after its Board
concluded that National Starch did not offer sufficient
opportunity to create value within the company's
transformed coatings and specialty chemicals portfolio.
While announcing the first quarter results in April
2010, Akzo Nobel had said that it received renewed
expressions of interest in National Starch, which had
accordingly been reclassified as a discontinued
operation.
In the year 2009, National Starch generated revenues of
USD 1.2 bio from sales of specialty starches to
customers in the food, papermaking, consumer and
industrial segments. Corn Products, a corn refiner and
supplier of high-quality food ingredients and industrial
products, reported net sales of USD 3.67 bio in the year
2009. The company has 8 000 employees and
operations in 13 countries at 28 plants. According to
Corn Products, specialty and modified starches, two
ingredient solutions the company has identified as
important to its ongoing growth, have been developed
by National Starch. Corn Products expects that its
offerings would be broadened by National Starch's
ingredient solutions, such as texturants, blends and
environmentally "green" solutions.
The company expects to finance the deal through cash,
debt and new equity, and projects significant production
efficiencies and cost synergies from the deal. On a cash
basis, the acquisition is expected to be accretive to Corn
Products by the end of 2011.
(rttnews.com 21 June 2010)
Cargill approved to build sugar refinery in Egypt, Assal says
Cargill Inc., the largest U.S. agricultural company, won
approval to build a sugar refinery in Egypt, the
country‘s Industrial Development Authority said. The
facility will have an initial investment cost of 400 mio
Egyptian pounds (USD 70.5 mio) and is scheduled to
start operations in 2012, Amr Assal, Chairman of the
agency, said yesterday in an interview in Cairo.
The state-run Food Industries Holding Co. and
Al Nouran Holding Co., a private sugar refiner in
Egypt, have applied for licenses to set up plants in the
North African country, Assal said. Consumption of
sugar in Egypt, the Arab world‘s most populous
country, is between 2.8 mio and 2.9 mio t per year,
according to the largest state importer, Sugar and
Integrated Industries Co. Local farmers supply between
1.8 mio and 1.9 mio t annually and the rest is imported
(businessweek.com 22 June 2010)
Sukhjit Starch & Chemicals plans INR 500 mio capex
Sukhjit Starch & Chemicals announced that it has
reviewed and reconsidered the expansion plan at Malda.
The capital expenditure (capex) of expansion has been
estimated at INR 500 mio.
(Continued on next page)
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Sukhjit Starch & Chemicals plans INR 500 mio capex (Contd.)
It has been decided to set up a separate / additional unit
with a maize grinding capacity of 300 TPD, dextrose
plant with a capacity of 50 TPD & high malto syrup
plant with 30 TPD in the existing premises of the Malda
unit of the company situated in the state of West
Bengal.
The capex plan of INR 500 mio is proposed to be
financed partly by way of term loan / ECB of
INR 320 mio and balance INR 180 mio from internal
accruals of the company.
Shares of the company gained INR 2.8, or 1.76%, to
settle at INR 162.25. The total volume of shares traded
was 17 801 at the BSE (Friday). (myiris.com
27 June 2010)
Corn Products finally acquires National Starch- will Bunge move on Tate & Lyle?
Corn Products International has announced it is
acquiring National Starch from Akzo Nobel for
USD 1.3 bio. Bunge had attempted to acquire Bunge
with stock 2 years ago but the deal fell through as
shares collapsed.
Corn Products International (CPO) was nearly acquired
by Bunge two years ago in a stock deal. The deal fell
apart as Bunge and all agribusiness stocks (ADM,
Monsanto, John Deere, etc.) collapsed from record
highs with the recession. Ilene Gordon, the new CEO
for CPO who came in with the mandate to grow, was
given a golden opportunity when Akzo Nobel said it
was seeking to sell National Starch which it had
acquired as part of ICI in 2008. (Continued in next
column)
Corn Products finally acquires National
Starch- will Bunge move on Tate & Lyle? (Contd.)
For Akzo Nobel it frees up some cash and allows them
to concentrate on more core covering and chemicals
and away from starches. For CPO it is the access to
more value added ingredients that it has not been able
to generate since shutting down the majority of its
internal research and development over a decade ago.
National Starch also will return CPO to Europe and
Australia/New Zealand, continents it was forced to
leave when it went public.
Bunge was rumored to be looking at Tate & Lyle earlier
this month, which helped push T&L stock price up. It
seemed a natural fit as Bunge has been making a major
move into sugar and ethanol production from sugar in
Brazil and at the same time was sitting on USD 3.8 bio
in cash from the sale of their fertilizer assets to Vale.
Since then Bunge has announced a USD 700 mio share
buyback and T&L stock has once again declined.
T&L may still be acquired, with Danisco and
Associated British Foods reported to have been
interested in National Starch. T&L is suffering from the
weak HFCS market in the US and their lack luster retail
sugar business.
T&L needs someone to help it reorient itself further
into the ingredient business and to find the next product
to replacing their sagging Spenda artificial sweetener.
(glgroup.com 24 June 2010)
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Tate heralds exit from sugar with refineries sale
Tate & Lyle heralded its exit from the sugar sector on
which the GBP 2 bio group was built, agreeing to sell
its European refineries and brands, and putting the rest
of its interests in the sweetener up for sale.
The sweeteners and starch company has shaken hands
on the sale to American Sugar Refining of a sugar plant
in Lisbon, and the London cane sugar refinery and
Golden Syrup refineries which merged in 1921 to create
Tate & Lyle. It also unveiled a quest to find buyers for
its remaining sugar business, the molasses unit and its
Vietnamese division.
The disposals followed months of speculation that
efforts by new chief executive Javed Ahmed to shake
up the group, long criticised for reaping a poor return
on its capital investments, would mean an exit from
sugar. Mr. Ahmed last month unveiled a strategy to
develop the group in emerging markets and in high
margin ingredients.
Indeed, Tate's European peers, such as Sudzucker,
Nordsucker, or Associated British Foods, had been seen
by many analysts as more likely buyers for the sugar
business. American Sugar Refining, while North
America's biggest cane sugar refinery, mainly thanks to
buying Tate refineries in Canada and the US over the
past decade, has not historically operated in Europe on
any significant scale.
'Sugar is global': American Sugar, said that the Tate
deal made "perfect sense" and was "consistent" with its
"strategic vision for expansion in the sugar refining
sector". Sugar is a global business," Antonio Contreras,
the group's co-president, said. "The European
acquisition in many ways mirrors our North American
operations and will complement our company."The
group currently runs four refineries in the US, one in
Mexico and one in Canada, the country's largest, which
was bought from Tate & Lyle in 2007. (agrimoney.com
1 July 2010)
Bright Food cuts formal offer for CSR’s sugar unit, review says
Bright Food Group Co. is the biggest food company in
Shanghai, trimmed its offer for CSR Ltd.‘s sugar unit to
between AUSD 1.65 bio (USD 1.39 bio) and
AUSD 1.7 bio, the Australian Financial Review
reported. The Chinese company cut the price from its
April 1 indicative offer of AUSD 1.75 bio after the
price of sugar declined, the newspaper cited
unidentified people close to the deal as saying.
CSR directors are considering the bid that was received
July 2 and will update the market today, according to
the Review. CSR spokesman Martin Cole didn‘t
immediately respond to phone messages seeking
comment. Bright Food would gain mills that produce
45% of Australia‘s raw sugar and account for about 4%
of international trade by buying CSR‘s Sucrogen unit.
CSR is also considering separating the sugar business
from its building material and aluminum operations.
CSR rose 1.5% to AUSD 1.695 when last traded on
July 2. The company‘s sugar division may also be a
target for companies such as Bunge Ltd. and
Cargill Inc., RBS Equities (Australia) Ltd. said in a
report in January. (businessweek.com 4 July 2010)
Tate & Lyle sells EU sugar business to US firm
Tate & Lyle PLC said Thursday it is selling its
European sugar refining business to American Sugar
Refining Inc. for 211 mio pounds (USD 314 mio) in
cash as it focuses on producing ingredients for industry.
American Sugar Refining, based in Yonkers, New
York, is buying cane sugar refineries in London and
Lisbon, the Lyle's Golden Syrup factory in London, the
associated sugar and syrup brands, and the Tate & Lyle
Process Technology consulting business.
(Continued on next page)
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Tate & Lyle sells EU sugar business to US firm
These businesses had external sales of 689 mio pounds
in the year ending March 31, making an adjusted
operating profit of 14 mio pounds and had gross assets
of 374 mio pounds, Tate & Lyle said.
Jones said Tate & Lyle's sugar refining business wasn't
expected to be profitam Jonable this year, discounting
for 17 mio pounds in European Union transitional aid.
Tate & Lyle also announced that it intended to sell the
rest of its sugars business, including the molasses
business and operations in Vietnam. American Sugar
Refining previously bought Tate & Lyle North
American Sugars Inc. and its three refineries in 2001,
and Tate & Lyle Canada Ltd. in 2007.
American Sugar Refining markets its products under
the Domino, C&H and Redpath brands. It owns and
operates six cane sugar refineries in Yonkers,
Baltimore, Toronto, Crockett, California, and Veracruz,
Mexico. The company is owned by Florida Crystals
Corp. and the Sugar Cane Growers Cooperative of
Belle Glade, Florida.
Those two divisions make products for industry, not
consumer goods. The Bulk Ingredients division is
essentially a corn-based business, making high-fructose
sweeteners, ethanol and industrial starches for
packagings. Speciality Ingredients makes sucrose and
food starches. (lasvegassun.com 5 July 2010)
AGRANA reports good start to 2010-11 financial year
The business of the sugar, starch and fruit group
AGRANA continued to prosper in the first quarter of
2010 to 2011. Amid the macroeconomic recovery,
demand grew in all three business segments. The
increases in sales volumes made up for the
simultaneous slight easing in prices. (Continued in next
column)
AGRANA reports good start to 2010-11 financial year (Contd.)
Driven by the better market environment, the Group‘s
revenue grew by 6.8% from the prior year‘s first
quarter, to EUR 540.5 mio.
AGRANA‘s largest revenue gain occurred in the Fruit
segment, as a result of volume growth both in fruit
preparations and fruit juice concentrates. With help also
from the growing earnings in Sugar and Starch, our
Group used the gradually stabilising environment
(despite some lower product prices) to generate a good
operating profit, says AGRANA Chief Executive
Officer Johann Marihart.
Revenue in the Sugar segment increased by 3.2% in the
first quarter to EUR 181.2 mio on higher sales
quantities. Quota sugar prices were lower than one year
earlier, but in exports of non-quota sugar AGRANA
benefited from the higher world market prices. Thanks
to cost relief, the segment was able to expand its
margins on quota and non-quota sugar from its own
production; this made itself felt in a 56% improvement
in pre-exceptional operating profit to EUR 6.1 mio.
The revenue growth in the first quarter of 2010-11 from
EUR 125.6 mio to EUR 135.4 mio was attributable
mainly to higher sales volumes in all core product
groups and in by-products. The rise of 37.8% in
operating profit was driven by volume growth and by
savings in raw materials and energy costs. The
operating profit margin improved from 8.8% to 11.3%.
(Continued on next page)
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AGRANA reports good start to 2010-11
financial year (Contd.)
The higher margin reflects the stronger Austrian
bio-ethanol business and an earnings improvement in
the Hungarian joint-venture activities. The operating
profit improvement in the Sugar and Fruit segments
should lead to an increase in the AGRANA Group‘s
operating profit before exceptional items and lift the
Group operating margin above that of the 2009-10
financial year.
In the Sugar segment, 2010 to 2011 will be the first
financial year where the regulatory environment created
by the EU sugar regime reform will apply in the form
that is effective until 2015.
For the bio-ethanol activities, revenue growth is
forecast as a result of the volume of production and
sales. Local market conditions will determine
bio-ethanol prices in Europe, as demand depends on the
national political measures concerning bio-fuel blend
requirements. (foodingredientsfirst.com 14 July 2010)
ADM christens new plant
In Columbus, Nebraska, US, ethanol producer Archer
Daniels Midland Company (ADM) has inaugurated its
recently constructed dry milling plant and ethanol
production facility. The christening took place on 9 July
this year after the facility opened in November last
year. The project was originally announced in February
2006.
The dry mill has the capacity the produce 300 mio
gallons of ethanol annually, employing 150 full-time
workers. During the construction phase over 1,400
contractors were employed.
In Nebraska alone ADM owns facilities in Cozad,
Grand Island, South Siouk City, Fremont and Lincoln.
The company has a total of seven corn mills, utilising a
total of 2 mio bushels of corn per day. (biofuels-
news.com 14 July 2010)
Analyst upgrades Archer Daniels Midland on higher pricing for high fructose corn syrup in 2011
Archer Daniels Midland Inc. may benefit from higher
prices for high fructose corn syrup in 2011, an analyst
said Friday as he boosted his investment rating on the
food and crop company's shares. Credit Suisse analyst
Robert Moskow lifted his rating on the stock to
"Outperform" from "Neutral" and raised his estimates
for 2011 above the average expectation of Wall Street
analysts. He also boosted his target share price to
USD 34 from USD 30.
Moskow said the changes are based purely on the
company's corn sweetener business. He said investors
don't like it because of the possible link between the
sweetener and obesity. But he said he believes this
concern is overdone.
Sales of high fructose corn syrup have soured in recent
years. Producers blame the decline on a campaign that
argues corn syrup is behind rising obesity in the U.S.
and that favors sugar over the refined product, although
most nutritionists find little difference between the two.
While some U.S. manufacturers are decreasing their use
of the sweetener, exports to Mexico have increased,
Moskow said. He said ADM's sweeteners business —
20% of the company's profits — should be strong in the
quarter ending in June. In the U.S., demand for the
product is increasing as soft drink sales improve
because of price cuts made by grocers.
He now expects the company, based in Decatur, Ill., to
earn USD 2.95 a share in fiscal 2011, up from his prior
estimate of USD 2.65. Analysts expect the company to
earn USD 2.87 per share in 2011, according to
Thomson Reuters. Shares rose 33 cents in premarket
trading Friday to USD 27.20. (canadianbusiness.com
16 July 2010)
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Chudleigh Ventures Announces Acquisition of Denver-Based Emerald Forest Sugar
Chudleigh Ventures Inc. ("Chudleigh", or the
"Company")(TSX VENTURE: XYL) is pleased to
announce that it has entered into a memorandum of
agreement to acquire certain assets and trademarks of
Emerald Forest Sugar Inc., a Denver, Colorado-based
producer and marketer of Xylitol based products.
The purchase price will be satisfied by a cash payment
of USD 475 000, the issuance of a maximum of
1 600 000 common shares at an issue price of USD 0.25
per share and the assumption of USD 195 000 of debt
bearing interest of 7.5% annually.
The number of shares issued will be subject to
adjustment should the value of inventory at the time of
closing be lower than a pre-determined threshold. The
Company will satisfy the cash portion of the purchase
price from a portion of the proceeds of its recent
financing, and the shares issued will be subject to a
statutory four month hold period.
Emerald is led by Doug Stauffer, PhD., who founded
the business in 2002. Doug will remain with the
business and draw on his considerable experience in the
Xylitol market to lead the Company's growth strategy
for packaged Xylitol products in the United States. In
2009, Emerald Forest had sales of approximately
USD 1.0 mio and is on track to achieve sales of
USD 1.5 mio in the current year. The transaction is
expected to close prior to the end of the third quarter of
2010. (marketwatch.com 19 July 2010)
Tongaat expects biggest SA maize crop in almost three decades
JSE-listed agro-processor Tongaat Hulett projected on
Tuesday that South Africa would produce its largest
maize crop in 29 years for the 2010 season at about
13 mio t. (Continued in next column)
Tongaat expects biggest SA maize crop in almost three decades
Tongaat Hulett CEO Peter Staude said in a statement
after the company's yearly meeting that the price of
maize in South Africa, which would be trading close to
the world price through to July next year, would further
contribute significantly to the competitiveness of the
company's starch operation.
Meanwhile, Tongaat Hulett said that it would focus on
increasing its sugar production from the 957kt milled in
the 2009-10 season to the installed sugar milling
capacity of 19 mio t a year.
Staude said that the company already anticipated an
increase in production for its operations in Zimbabwe
and Mozambique for the 2010-11 seasons. In
Zimbabwe, sugar production for the 2010-11 was
expected to be between 330kt and 350kt, from 259kt
last year and production in Mozambique was also
expected to swell from 134kt the previous year to
between 230kt and 250kt this year.
However, he believed that Tongaat Hulett remained
well positioned to benefit from the favourable global
fundamentals of increasing demand for agricultural
products, food, renewable energy and also land usage.
DSM and Roquette to start bio-based succinic acid joint venture
At the 7th annual World Congress on Industrial
Biotechnology, taking place this week in Washington
D.C. (United States), DSM and Roquette will elaborate
on a recent technical breakthrough and proprietary
process for the manufacture of bio-based succinic acid
that will contribute to overall superior economics and
an improved environmental footprint. (Continued on
next page)
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DSM and Roquette to start bio-based succinic acid joint venture (Contd.)
DSM and Roquette believe that fermentation based
succinic acid will be able to replace existing fossil
based succinic acid as well as open new applications,
while at the same time delivering a better
environmental performance. This innovative
technology to produce bio-based succinic acid from
starch is unique in the world.
This new production route delivers a reduction in
greenhouse gas emissions, as it sequesters carbon
dioxide (CO2), and the proprietary process does not
produce any salts as waste. Bio-based succinic acid will
thus enable customers to produce products with
substantially lower environmental footprints.
Many companies have already sampled and tested
bio-based succinic acid from the demonstration plant of
Roquette produced pursuant to the JDA and intends to
take shipments from the joint venture upon its
formation. The joint venture between DSM and
Roquette, which is subject to regulatory and other
customary approvals and notifications, plans to focus
on applications such as 1,4 butanediol (BDO),
polyurethane resins, and biopolymers such as
polybutylene succinate (PBS) into applications among
others in paints and coatings, automotive and textiles.
DSM and Roquette will be marketing bio-based
succinic acid via the joint venture Reverdia and are also
working together to further expand their joint capacity.
(yourpetrochemicalnews.com 29 June 2010)
Tate & Lyle's sugar division to be sold for GBP 200m
Lyle's golden syrup, the world's oldest brand, is
expected to change hands in a GBP 200m deal.
The world's oldest brand – Lyle's Golden Syrup – is to
change hands tomorrow when Tate & Lyle announces
the sale of its historic sugar business to American Sugar
Refining for about GBP 200 mio. The deal is likely to
raise fears of job losses at Tate & Lyle's refinery in
Silvertown, in the East End of London, which has been
operating for more than 130 years.
Abram Lyle, a Scottish ship-owner, was also a
Victorian entrepreneur. Having transported sugar for
years, he expanded into sugar refining in 1875 and by
1885 he was turning out Lyle's Golden Syrup – a waste
product from sugar refining. The two companies
merged in 1921 and at that time they refined half the
country's sugar. The merged business was one of the
original constituents of the FTSE-30 index created in
1935, and only two still exist.
By the 1980s it had moved into the soft drinks market
in the US, buying AE Staley, which manufactures high-
fructose corn syrup – a common ingredient in processed
foods and drinks. However, in recent years the
company has run into problems in the sugar business.
Tate has also mothballed a factory in Alabama and
shifted all its production of the artificial sweetener to
Singapore. (guardian.co.uk 30 June 2010)
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Singapore group buys up CSR sugar division
CSR‘s sugar division, Sucrogen, not only refines and
sells sugar, but has also expanded into renewable
energy, such as ethanol production, and the sale is
expected to generate USD 1.6 bio for the Australian
group after expenses and tax liabilities are removed.
Bright Foods had reportedly lowering its conditional
bid of USD 1.75 bio for the unit.
Recent acquisitions in the sugar industry would suggest
growing consolidation in the sector with American
Sugar Refining taking over the refining operations of
the UK group Tate & Lyle, last week, and US
agribusiness conglomerate Bunge recently acquiring a
series of Brazilian mills. Jonathan Thomas, principal
market analyst at market research group, Leatherhead
International, told this publication that the divesture of
the cane sugar division of the UK sector veteran comes
as no great surprise, as its much publicized current
strategy is a focus upon value-added sectors.
According to market analysts, although reform of the
EU sugar regime has proved painful, it has been
ultimately successful in that EU quotas have fallen from
around 18.6 mio t to around 13.3 mio t. EU
consumption is fairly stable at around 16.5 mio t, with
the shortfall made up by imports
(confectionerynews.com 5 Jul 2010)
Corn Products posts profit in Q2; net sales up 10%; revises 2010 EPS forecast - quick fact
Corn Products International Inc. (CPO: News ) reported
2010 second-quarter net income attributable to
company of USD 36.8 mio, or USD 0.48 per share,
compared to a net loss of USD 84.8 mio, or USD 1.13
per share in the same period last year.
(Continued in next column)
Corn Products posts profit In Q2; net sales up 10%; revises 2010 EPS forecast - quick fact (Contd.)
The company's second-quarter 2010 results include an
USD 18 mio charge, or USD 0.23 per share, from the
impairment of plant in Llay-Llay, Chile, and an after-
tax charge of USD 3 mio, or USD 0.04 per share,
related to the pending National Starch acquisition. The
second-quarter 2009 results include after-tax
impairment and restructuring charges of USD 110 mio,
with a negative per share impact of USD 1.47.
Excluding National Starch acquisition costs and
impairment and restructuring charges, second-quarter
2010 adjusted per share was USD 0.75, a 121%
improvement over the second-quarter 2009 adjusted
earnings per share of USD 0.34.
Analysts polled by Thomson Reuters expected the
company to report earnings of USD 0.59 per share.
Analysts' estimates typically exclude special items.
(rttnews.com 27 July 2010)
CSM buys up Cargill's shares in US lactic acid plant
Global bakery ingredients supplier CSM said that it has
acquired the remaining 50% of the shares its US lactic
acid production plant from its joint venture partner
Cargill. The Nebraska based facility has been a joint
venture between CSM's subsidiary Purac and Cargill‘s
North American Corn Milling Division since 1997.
The plant produces natural L-Lactic acid trough a
carbohydrate fermentation process for pH regulation
along with shelf life extension and texture and taste
enhancement for baked goods and other food
categories. The production process employed at the US
plant was jointly developed and patented by Purac and
Cargill, with the global commodities giant being
supplied with lactic acid for use in its polylactic acid
(PLA) based polymers. (Continued on next page)
Starch Italics Company News Starch Industry Overview Others
June/July 2010 © GIRACT 2010 P a g e | 2 8
CSM buys up Cargill's shares in US lactic acid plant (Contd.)
The Netherlands based CSM said that as the total
output of the lactic acid plant was already fully
dedicated to Purac, the transaction would not impact the
ingredient‘s market position, and the Dutch group
added that the deal would have a slightly positive effect
on its EBITA.
Purac is currently building a lactides manufacturing
unit in Thailand to produce monomers for production of
PLA based bioplastics. The company is investing
EUR 45m in the new facility, which will have the
capacity to produce 75 kt of lactides a year. CEO of the
Dutch company, Gerard Hoetmer, said that it expects to
set up more lactides facilities in the coming years to
cater to increasing demand for bioplastics, a market for
which he expects growth of 40% within the next
10 years.
According to Purac, which undertook a recent market
analysis study, the PLA market is estimated to reach
3 mio t with a market value of USD 6 bio by 2020.
Hoetmer said factors such as consumer and retailer
demand, environmental concerns in reducing carbon
dioxide emissions, and lower crude oil supplies were
driving the market. (bakeryandsnacks.com 22 July
2010)
China-ASEAN Free Trade Agreement leads
to new business opportunities
With the establishment of the China-ASEAN Free
Trade Area, there will be a new tide of investment in
ASEAN countries, said Gu Xiaosong, vice president of
the Guangxi Academy of Social Sciences. After the
establishment of the China-ASEAN Free Trade Area in
January 2010, 90% of trade products now enjoy
zero tariffs.
(Continued in next column)
China-ASEAN Free Trade Agreement leads to new business opportunities (Contd.)
In the first half of this year, the total value of China-
ASEAN two-way trade reached USD 136.5 bio,
growing by nearly 55% compared with the same period
last year. Exports to ASEAN countries reached
USD 64.6 bio, up by more 45%, and imports from
ASEAN countries reaching nearly USD 72 bio, up by
64%.
Guangxi State Farms will also invest nearly
360 mio yuan to establish a cassava starch processing
base in Qui Nhon, Vietnam. It will also establish a
high-quality sisal base and cassava production base in
the northern part of Myanmar with an area of
100 sq.km and a primary total investment of
USD 13.8 mio.
Furthermore, it will also establish a 10 sq. km cassava
raw materials base in Mindanao, Philippines. In the
future, Guangxi State Farms will invest in building
projects such as processing cassava starch and ethanol.
(english.peopledaily.com.cn 26 June 2010)