Starch Italics 7th Edition
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Transcript of Starch Italics 7th Edition
GIRACT
Starch Industry Overview
October/November 2010
Starch Italics
www.giract.com
Starch Italics
Starch Industry Overview
Oct/Nov 2010
TABLE OF CONTENTS
June/July 2010 © GIRACT 2010
Crops and grains
p.1 How we are faring with cassava starch
production (Nigeria)
SRI-CSIR develops fertiliser for cassava
p.2 Food prices in the US expected to rise in
2011
p.3 Cassava exports decline by 18%
p.4 Japan grain trader joins battle for Asian
markets
Starch and derivatives p.4 China starts sugar sell-off early as prices
p.5 Starch, sucralose help Tate and Lyle to
strong H1
p.6 Cargill promotes Truvia sweetener with
multichannel marketing initiative
Company News
p.6 Tate & Lyle on track despite higher corn
costs
p.7 Tate & Lyle's strong earninderlying
growth momentum Starch producer launches "Gaialene"
polymer family / potential substitute for
polyolefins and ABS
p.8 Cargill profit surges 68% as volatile Grain
markets boost trading
p.9 Corn Products International (CPO) posts
mixed results
p.10 Government to revive Ayensu starch
factory
Solazyme and Roquette sign agreement to
create Global Nutritional Joint Venture
p.11 Tongaat Hulett expects higher interim
earnings
Bio-fuels
p.12 Corn ethanol‘s stock rises, as its stocks
rise p.13 Vietnam joins race for biofuel
p.14 OMCs‘ ethanol pacts not enough for
petrol plan
Bio-fuels (Contd)
p.14 Frontier wheat club offers biofuel benefits
p.15 Sorghum produces more ethanol, say
research findings
p.16 Brazil to build ethanol factory in Ghana
p.17 Biofuels blame game
p.18 Commodities buzz: US can meet ethanol
demand despite tight supplies; says
Deputy Ag Secretary
Busy time for ethanol producers
Agricultural waste to biofuel research
published in India
p.19 EPA announces renewable fuels standard
2011 requirements
p.20 Mater-Bi distribution agreement with
Thailand's Thantawan
Bio-Plastics
p.20 Potatoes to plastic
p.21 Researchers engineer genes of plants to
grow raw materials for green plastic
Nigeria's plastic bag dilemma
p.22 Wacker develops biodegradable plastics
p.23 NYU researchers find corn starch solution
can help shape solid materials
Cardia makes bags by blending CO2 with
starch
Others p.23 Southern Minnesota beet sugar
cooperative
Regional Language News
China
p.24 Strive to achieve the 3 mio t plant polyols
capacity
p.25 Output reduction is not the main factor of
the cassava starch price
p.26 Continuation of known environmental
needs of bio-plastics
(Table of contents continued on next page)
Starch Italics
Starch Industry Overview
Oct/Nov 2010
TABLE OF CONTENTS
June/July 2010 © GIRACT 2010
Regional Language News (Contd)
China
p.28 November 17, Dalian corn fell sharply
Price trend of the recent situation in Jilin
Maize
p.29 Bio-plastic manufacturers industrial R&D
Speed
Vietnam
p.30 The situation of production and
consumption of cassava in Vietnam and
the world
p.31 Increase cassava production for export:
Not necessarily happy
Brazil
p.32 Plastic of maize, sugar cane and seaweed
p.33 Brazil Oil and Novozymes join together to
develop cellulosic ethanol
Brazil's ethanol industry is driving in the
fast lane
Thailand
p.35 Rice harvest could be down 20%
First price index for rice industry launched
Taiwan
p.36 Researchers develop biodegradable
seedling pot
Czech Republic
p.37 Starch from genetically-modified potatoes
will be produced in the Czech Republic
South Korea p.37 South Korea has purchased 110kt of
maize
GLOSSARY
bio ‗000 000 000
cpd cases per day
crore ‗0 000 000
JV Joint Venture
k ‗000
kt ‗000 t
klpd kilo litres per day
lakh ‗00 000
lpd litres per day
mio ‗000 000
M&A Merger
&Acquisition
pa per annum
t t
tpa t per annum
tpd t per day
tph t per hour
tpm t per month
GIRACT Global Starch and Starch Derivatives
study
Giract has just published new multi-
client research into global starch
supply, examining in particular the
impact of the recent economic
downturn on the industry. Details on the following page.
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 73 million tons (expressed as primary starch with 12% moisture). For 30 years the starch industry has posted a remarkable average 4% annual growth and shown great flexibility to adapt to changes and opportunities, from raw material sources and changing trade regulations to new production technologies and end-use sector dynamics.
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 several end-uses
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.
Thus, the traditional patterns in starch production and demand have changed dramatically and so did the competitive landscape. The dominant position of Western players and markets is being eroded, both in terms of product portfolios and players and China has emerged as the largest country for supply and demand of starch. Cost-effectiveness and clean labelling have been driving changes in demand.
As these new patterns are emerging, it is the right time for every player and end-user in this field to take stock of new opportunities and threats before making any strategic decisions. This report provides the necessary comprehensive picture of actual global starch production and trade, by product and area, and explores which key factors are likely to influence the future to 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, published in autumn 2010, takes into account the various changes that have occurred across the world in the last few years, and thus acts 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 2015
REPORT Published September 2010
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For more info, contact GIRACT V. Krishnakumar, Jo Goossens
24, Pré-Colomb Tel: + 41 22 779 0500
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Primary Starch Production – Executive Summary - sample GIRACT
Impact of the Economic Downturn Starches and Derivatives Global Production and Supply 2009/10 - 2015 Executive Summary
Page 30
2. PRIMARY STARCH PRODUCTION BY REGION – EXECUTIVE SUMMARY
2.1. OVERVIEW
The table below summarises the distribution of primary starch make by raw material source and region in volume terms: mio tons
Maize Wheat Potato Tapioca Other Total
EU27
Other Europe
N. America
Other Americas
China
Other Asia
ROW
Total
% of total (as 88% dsb)
The above table excludes (to the extent feasible) starch production for gasohol.
The table below summarises the distribution of primary starch make by raw material source and region (% of starch per raw material)
Maize Wheat Potato Tapioca Other Total
EU27
Other Europe
N. America
Other Americas
China
Other Asia
ROW
Total
Note: a … entry represents a very small magnitude of starch make
It emphasises the predominance of maize as the world raw material, except in the special cases of tapioca in sub-tropical climates, wheat in Oceania and wheat/potatoes in the protected EU market.
Vol II – Starches & Derivatives-sample ©©GIRACT
Impact of the Economic Downturn Starches and Derivatives Global Production and Supply 2009/10 - 2015 Volume II – Starches and Derivatives
Page 74
Production of Starches and Derivatives, India, 2009/10
ktons
Native Starch 88%
Mod. Starch 88%
Glucose 78%
Iso-glucose
71% Dextrose Other dry hydrol. Polyols
Anil Starch Products
Bharat Starch Industries
Gayatri Bio-Organics
Gujarat Ambuja
Gulshan Polyols
Jayamurugan
Kashyap Sweetners
Maize Prod/Sayaji Mills
Riddhi Siddhi Gluco Biols
Sahayadri St. & Industries
Santhosh Maize Industries
Siddharth Starch PVT
Spac Group
Sukhjit Starch Products
Tirupathi Starch Products
Universal Starch Products
Varalaxmi Starch Ltd 3
Vijayanagar Biotech
Yashwant Sahakari Glucose
Others (all tapioca)
Total
*At the time of publication of this report, Gujarat Ambuja had stopped the production of sorbitol temporarily, and its reported #kt output has been removed from the above table
Producers
Anil Starch is one of the oldest starch manufacturers in India and is part of Lalbhai group. The company produces a varied range of starches from basic maize starch to modified and specialty starches and related downstream products - dextrose (monohydrate and anhydrous), corn syrup, etc. – for the textile, food, pharma, chemical and paper industries principally.
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Starch Italics Starch Industry Overview
Crops and grains
How we are faring with cassava starch production (Nigeria) Dele Ogundele, a chartered accountant, has
worked in multi-national companies like Unilever
and PZ Cussons Nigeria plc, before running
Matna Foods. He speaks with Siaka Momoh,
BusinessDay‘s Industry Editor, about how
Matna Foods Company Limited, cassava starch
production company, is faring in today‘s market.
An estimated 60 mio t of starch are extracted from
a wide range of cereal, root and tuber crops.
Interestingly, around 10% of that starch comes
from cassava roots, a crop better known as the
staple food of millions of low-income rural people
in Africa, Asia and Latin America. With world
cassava root production now standing at some
200 mio t a year, FAO says many developing
countries could strengthen their rural economies
and boost cassava farmers‘ incomes by converting
more of that relatively low-cost raw material into
high-value starches.
Company Nigeria is world largest producer of
cassava, producing about 40kt per annum.
Matna Foods Company Limited is therefore in
good business processing cassava tubers to starch.
But last year, it was as if Nigeria had stopped
from what it used to be because all of a sudden,
cassava disappeared from the market and around
Ogbese at the outskirts of Akure in Ondo State
where Matna has its plant. For a greater part of
last 2009, the company was not producing, but it
did not relent in its effort to develop the pace at
which it picks cassava.
Cassava circle Matna is a victim of what is called
in cassava processing parlance, ‗cassava circle‘.
This means alternating high and low level supply
of cassava tubers year-after-year. So, the efforts
Matna made last year were actually designed to
break that circle, so that the flow of cassava
would continue as much as possible.
(Continued in next column)
How we are faring with cassava starch production (Nigeria) (Contd)
However, to encourage farmers stay on farms,
Matna signed agreements with farmers around the
community, agreements guaranteeing the
purchase of their output. So, they had no fear of
recording unsold stocks.
Gas facility Matna does not have the luxury of
access to gas network like other plants in Lagos.
When they don‘t have power supply from the
national grid, they switch on to their generators,
powered with gas. It relies on diesel. Apart from
that it also uses black oil for operating its boiler
with which it generates the heat for drying starch.
The black oil is also a very scarce commodity.
Matna‘s installed capacity is about 150t of
cassava per day. But it has never produced up to
that level. (businessdayonline.com 11 October
2010)
SRI-CSIR develops fertiliser for cassava
The Soil Research Institute of the Council for
Scientific and Industrial Research (SRI-CSIR),
has successfully conducted trials on fertilisers that
can be used for increased cassava starch yield and
quality cassava. Dr Joseph Cobbina, a Technical
Specialist at the CSIR, made this known to
farmers and M.Phil. students from the Kwame
Nkrumah University of Science and Technology
(KNUST) who undertook a field trip to the
Kwadaso Agricultural College in Kumasi.
He said the research was still underway and that
results were expected to be shared by all member
states of the Economic Community of West
African States (ECOWAS). The research is under
the auspices of the West Africa Agricultural
Productivity Project (WAAPP) and is being
implemented in Ghana by the Ministry of Food
and Agriculture (MoFA).
(Continued on next page)
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Crops and grains
SRI-CSIR develops fertiliser for cassava (Contd)
DR Cobbina said WAAPP was being funded by
the World Bank to strengthen research institutions
in three countries — Ghana, Mali and Senegal —
to generate improved technologies to increase
agricultural productivity of important crops in line
with regional priorities. He said the aim of the
project was to fund demand-driven technologies,
generate and disseminate improved technologies
in priority sectors of the region and facilitate
regional collaboration and integration.
The field trip to the Kwadaso Agricultural
College formed part of efforts to enhance the
dissemination of increased cassava technologies,
as well as to offer a platform to showcase the
nature and efficiency of the new technologies for
cassava.
Under the WAAPP project, Mali is conducting
research into rice with Senegal researching into
cereals, while Ghana focuses on improving root
and tubers (cassava, yam, cocoyam and sweet
potato). Giving a background to the project,
Dr Cobbina said in 2003, it was realised that
although governments in West Africa were
supposed to devote 10% of their budgets to
agriculture, that was not being done.
He said the WAAPP was then developed with a
focus to improve the export competitiveness,
biodiversity, land administration and
management, technology diffusion, trade
facilitation and market access. He said in Ghana,
although various varieties of cassava had been
released by the CSIR, it was realised that lack of
improvement in soil fertility, made it difficult for
farmers to achieve the expected results.
(modernghana.com 20 November 2010)
Food prices in the US expected to rise in 2011
As commodity prices continue to rise to new
highs and US food producers see their profit
margins shrink to new lows, food prices in the US
are expected to rise again in 2011. US food
producers have refrained in 2009 and 2010 to pass
on the production cost to their consumers but may
not have a choice but to increase food prices
across the board to keep their profit margins from
falling any further.
Brand names like Kraft, Sara Lee and Dean Foods
all reported smaller than expected profit margins
throughout 2010 due to higher commodity prices
of grain and milk. The companies who are facing
stiff competition from white labeling products
have kept their prices steady to protect their
decreasing market share but that is about to
change soon.
The growth of wheat and soybeans in the US was
replaced with large amounts of corn crops which
ultimately found their way to ethanol production
facilities. This subsidized replacement has not
only interrupted the natural food chain by
redirecting agricultural food from beef farms but
has also reduced the reserve supply of wheat and
soybeans.
The US is a large exporter of grain products
throughout the world and had to fill in the gap
during the Russian wheat export embargo earlier
in the year. (Continued on next page)
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Starch Italics Starch Industry Overview
Crops and grains
Food prices in the US expected to rise in 2011 (Contd)
That has not only put extra pressure on the
internal supply but also on the commodities
markets given that demand has not decreased. US
food producers have no choice but to pass on the
extra cost to their consumers in the US and
abroad, and the price increases are expected to
match or exceed those of 2008. The US has
enjoyed a low inflation rate of 1% or less for the
past 2 years, but such may change very quickly
mid next year with hyperinflation following in
2012.
The CPI will not be driven by energy prices but
rather by food prices in general. The impact will
also be felt around the globe as the US may opt to
export less of its grain supply due to depleting
reserves that are needed locally. One can find a
rational solution for a trade or currency war but
should this crisis ultimately result in a food war
with high inflationary pressure then middle-class
America will become the first victim.
The solution would be to restore the natural food
supply chain and find a balance between valuable
crops instead of continuing to subsidize corn
farmers to supply the ethanol production plants
while diminishing wheat and soybean crops.
Middle-class America cannot absorb high food
prices in an economic climate that is hampered by
high unemployment and low spendable income.
The US economy cannot sustain a reduction of
exported agricultural products either when trade
balance sheets already run a deficit with
90 countries. A hyper-inflationary tsunami can
only be avoided by going back to basic economics
until global activity and international supply and
demand stabilize. (examiner.com 15 November
2010)
Cassava exports decline by 18% Viet Nam exported 70kt of cassava and
cassava-based products worth USD 30 mio in
September, according to a report published by the
General Statistics Office. Last month's figures
brought the country's total export value during the
first 9 months to USD 384 mio, a year-on-year
decrease of 18.1%.
Director of the Information and Statistics Centre
under the Ministry of Agriculture and Rural
Development Nguyen Viet Chien attributed the
decline to waning Chinese consumption. China
consumes 90% of Viet Nam's cassava and
cassava-based exports products.
The national cassava export market last year was
hectic and it pushed up prices during the
beginning of this year, said Chien. According to a
ministry report, about 87 large and 300
small-sized manufacturers process cassava in
VietNam. Each year, the manufacturers produce
985kt of starch and 150kt of cassava.
In the past few years, cassava plantation shrank
because of the crop's low demand. However,
cassava demand has increased because the crop is
used to produce feed and ethanol. VietNam is the
second leading cassava exporter in the world. The
ministry wants to create national quality and
manufacturing standards to further develop the
cassava-export sector. Setting up a cassava
manufacturers' association should also be
launched, reported the ministry.
(vietnamnews.vnagency.com.vn 12 October 2010)
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Starch and derivatives
Japan grain trader joins battle for Asian markets Japanese grain trader Marubeni plans to take on
the world's largest agricultural commodity traders
in shipping to emerging Asian markets as demand
at home moderates, the Financial Times reported
Monday.
Presently the world's sixth largest grain trader by
volume, Marubeni expects to trade 20 mio t of
crops such as wheat, maize and soya beans this
year, of which only 6 mio will be sold in Japan,
the paper reported.
The company plans to ship 25 mio t to customers
by 2012 or 2013, said chief executive
Teruo Asada, increasingly making it a rival to the
likes of ADM, Bunge and Cargill in the United
States, France's Louis Dreyfus and Swiss-based
Glencore.
Japanese commodity traders have traditionally
concentrated on imports of products such as oil to
make up for sparse resources at home, but a
shrinking population and unimpressive economic
growth have led them to turn elsewhere, the report
noted.
"The grain majors are simply supplying corn, soy
and other grains to China. But we're using our
grain to get into related businesses like milling
and animal feed processing. That's the sort of
thing that only a general trading company can
do," Asada told the newspaper. (afp.com
29 November 2010)
China starts sugar sell-off early as prices
China is to start its programme of seasonal sugar
sales from state reserves this week, more than a
month earlier than last season, as the sweetener
joined the list of farm commodities to set a record
price high. The country's Ministry of Commerce
said that it would on Friday release 210kt of sugar
from state reserves, more than a month earlier
than sales started in 2009-10.
The kick-off so soon in the 2010-11 crop year,
which started this month, came as prices for white
sugar hit a record RMB 6 252 (USD 940) per t for
the Zhengzhou exchange's benchmark May
contract.
In London, white sugar for May closed down
0.5% at USD 648.5 per t. China also faces
near-record prices as of Monday for cotton, and of
corn for some contracts on the Dalian exchange,
where soyoil prices are near two-year highs, all
boosted by strong domestic demand which local
production is struggling to keep up with.
Indeed, sugar prices have been boosted by a
continuing production shortfall which the
US Department of Agriculture's Beijing bureau
has estimated at 2.4m t for 2010-11, signalling a
deficit even if the country imports all the quota of
1.95m t it allows at a tariff of 15%.
Additional imports attract a tariff of 50% and,
indeed, the country has never imported the
maximum since its regime was shaken up on
joining the World Trade Organisation 9 years
ago. Supply prospects have been further
weakened by the sell-off of much of the country's
stocks last year, after a slide in production which
reflected in part poor weather in cane producing
districts, and in part a slump in beet plantings as
farmers switched to grains following the 2008
price spike. (Continued on next page)
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China starts sugar sell-off early as prices (Contd)
Provincial authorities do not set a minimum price
for sugar beet, unlike cane, making it more
vulnerable to substitution with crops allowing
higher margins. China's government sold off
1.7m t of sugar from state reserves in 2010-11,
though 8 auctions which started last December,
with a floor price of RMB 4 000 per t.
China's sugar shortage is also underpinning sales
of alternative sweeteners, including saccharine, of
which the country produces 15 400 t, most for the
export market, and corn-based syrups. The
country's output of starch-based sweeteners
expected to jump by 30% to 9m t in calendar
2010, amid soaring demand from domestic sugar
producers, the USDA's Beijing office said in a
report earlier this month.
"High domestic natural sugar prices have made
starch sugar a competitive substitute," the briefing
said. London's benchmark December white sugar
contract closed down 0.1% at USD 695.30 per t,
with raw sugar for March up 1.4% at 27.44 cents
per pound in late deals in
NewYork. (agrimoney.com 18 October 2010)
Starch, sucralose help Tate and Lyle to strong H1
Tate & Lyle has now realised the full benefits of
bringing together its sucralose manufacturing
activities at one site, and despite lower selling
prices its specialty ingredients division has
reported volume gains and 27% higher operating
profits. The ingredients company has reported
sales of GBP 1348m for 6 months ended
30 September, compared to GBP 1298m in the
same period last year. Operating profit rose 60%
to GBP 138m. The company has been placing
increasing store by speciality ingredients as it has
gradually sold of its sugar assets.
(Continued in next column)
Starch, sucralose help Tate and Lyle to strong H1 (Contd) Last month it announced plans to establish a new
commercial and food innovation centre in
Chicago, while plans for a bulk ingredients
facility in Fort Dodge, Iowa, have been
mothballed. Meanwhile, the company sold its EU
sugar operations to American Sugar Refining, Inc
for GBP 212m at the end of September, and is on
track with the sales of remaining sugars
businesses, namely molasses and Vietnamese
sugar.
Tate & Lyle saw a 7% increase in volume sales of
specialty ingredients in the last 6 months, and a
3% increase in value (though flat in constant
currencies). The better volumes, combined with
improved product mix and the benefits of the
single sucralose site, led it to a 32% increase in
operating profit to GBP 108m. The ingredients
company has reported sales of GBP 1348m for
6 months ended 30 September, compared to
GBP 1298m in the same period last year.
Operating profit rose 60% to GBP 138m.
The company has been placing increasing store by
speciality ingredients as it has gradually sold of its
sugar assets. Last month it announced plans to
establish a new commercial and food innovation
centre in Chicago, while plans for a bulk
ingredients facility in Fort Dodge, Iowa, have
been mothballed.
Meanwhile, the company sold its EU sugar
operations to American Sugar Refining, Inc for
GBP 212m at the end of September, and is on
track with the sales of remaining sugars
businesses, namely molasses and Vietnamese
sugar.
Tate & Lyle saw a 7% increase in volume sales of
specialty ingredients in the last 6 months, and a
3% increase in value (though flat in constant
currencies).
(Continued on next page)
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Starch Italics Starch Industry Overview
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Company News
Starch, sucralose help Tate and Lyle to strong H1 (Contd)
Good growth was also seen in starch volume
sales. Produced at the company‘s sites in
Sagamoor in Indiana, and Koog in
The Netherlands, starch-based ingredients account
for around half the speciality ingredients division
by value. In July Tate & Lyle opened its new
polydextrose plant in Koog – said to be the first
for the bulking agent in Europe, which is expected
to shorten the lead time for European customers.
(foodanddrinkeurope.com 4 November 2010)
Cargill promotes Truvia sweetener with multichannel marketing initiative Cargill has announced it is launching a
multichannel marketing campaign for its natural
sweetener product, Truvia, in hopes of turning
previously generated awareness into an emotional
connection with prospective consumers. The
multichannel marketing initiative will extend
across national television, digital and social
media.
According to Ann Clark Tucker, Truvia's
marketing director, the creative illustrates
consumers' relationship with sweeteners in
humorous ways. Truvia was jointly discovered in
2008 by Cargill and Coca-Cola as a replacement
for artificial sweeteners commonly used in food
and soft drinks. The product is made from
Rebiana extracted from stevia plants.
Strategies such as Cargill's approach of designing
its marketing campaign with unique creativeness
are growing increasingly important for many
brands. According to a recent report,
well-executed creativeness accounts for 52% of
all sales changes. Meanwhile, media plan and
pricing and distribution only affect 13 and 35% of
sales, respectively. (ricg.com 6 October 2010)
Tate & Lyle on track despite higher corn costs Sugar and sweetener firm Tate & Lyle said today
that it expects its encouraging start to the year to
continue in spite of higher corn costs.
In the speciality food ingredients division, growth
in speciality sweeteners and starches has remained
steady, while sucralose volumes have been robust,
though at lower selling prices, the company said.
Corn sweetener volumes benefited from the
continuation of firm demand for high fructose
corn syrup (HFCS), a sweetener used in foods
such as cereal and in fizzy drinks, in Mexico and
good demand over summer in the US and Europe,
T&L said.
‗The encouraging start to the year has continued
in the second quarter, particularly within
Speciality Food Ingredients, with good
operational performance and solid demand in a
number of our markets,‘ said chief executive
Javed Ahmed. ‗This underpins our confidence
that we will make progress in the full financial
year.‘
T&L said that, while corn prices have been risen
in the US and Europe, it was able to offset this in
the US by lifting prices for its own products,
while itself benefiting from hedging. In Europe,
however, hedging options are more limited and
higher corn prices are expected to have a ‗modest‘
impact on profitability during the final quarter of
2010.
(Continued on next page)
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Starch Italics Starch Industry Overview
Company News
Tate & Lyle on track despite higher
corn costs (Contd)
Corn prices have been soaring recently, in line
with soft commodity markets generally, fuelled
by strong demand from the animal feed and the
biofuel industries. Industrial starch volumes in
both the Americas and Europe were ahead of last
year, although margins continued to be weak, the
company said. It added that ethanol margins
improved slightly in the second quarter, although
the market remained under pressure. Tate & Lyle
is today completing the sale of its EU sugar
refining operations for GBP 211, which will help
to reduce debt. (sharecast.com 30
September 2010)
Tate & Lyle's Strong Earninderlying Growth Momentum
British ingredients producer Tate & Lyle has
posted strong growth in profits for the first half of
its fiscal year thanks to stronger margins and
higher corn prices. For the 6 months to
September, Tate & Lyle's adjusted operating
profits increased by 13% in constant currency
terms, with the firm aided by shifting the
manufacture of its core sucralose brand to a single
plant in low-cost Singapore. However, despite the
favourable operating environment, sales for the
group were flat on a constant currency basis,
indicating that restoring top-line growth
momentum may be harder than increasing
profitability.
Tate & Lyle has generally been seen by investors
as a boring commodity play, which does well
when demand for its key commodities such as
sugar and starch is booming, but suffers when
demand wanes. The firm has made moves to alter
this perception - notably by focusing on value-
added ingredients and as part of this process it has
also been selling off its sugar refining operations.
(Continued in next column)
Tate & Lyle's Strong Earninderlying Growth Momentum (Contd)
In July 2010, it agreed to sell a large chunk of its
sugar business to American Sugar Refining for
GBP 211 mio. (foodanddrinkinsight.com 12
November 2010)
Starch producer launches
"Gaialene" polymer family /
Potential substitute for polyolefins
and ABS
Starch producer Roquette Frères has taken the
first step to becoming a biopolymer producer with
the launch of the "Gaialene" polymer family. The
materials, which are claimed to be based 50% on
starch, were developed together with Setup
Performance. Roquette currently produces the
polymers in a pilot plant in Lestrem with capacity
for several hundred t per year, but by Q1 2011 the
company intends to have installed an
industrial-scale plant at one of its French sites.
The capacity is expected to be "several 10kt a
year," general manager Michel Serpelloni told
Plasteurope.com.
The Roquette research team began working on the
development of plant-based thermoplastics in
2007 as part of the "Gaiahub" innovation project.
It is therefore to be expected that more polymers
will follow.
(Continued on next page)
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Starch Italics Starch Industry Overview
Company News
Starch producer launches
"Gaialene" polymer family /
Potential substitute for polyolefins
and ABS (Contd)
Roquette says Gaialene, which is apparently
similar to the thermoplastic starches and the
derived "eco plastic" compounds made by Plantic
Technologies, is intended for applications in
which polyolefins, ABS or engineering plastics
are otherwise used. The three Gaialene grades
currently available have high impact resistance
and a soft feel, and are also easy to colour and
compound, says Roquette. The polymers can be
processed using standard processes such as
injection moulding and extrusion blow moulding.
"The Gaialene range is not the result of a simple
mixing or compounding process, but a veritable
hemi-synthesis that gives the thermoplastics
completely new properties," explained
Jean-Bernard Leleu, Director General of
Roquette. Carbon-di-oxide emissions from the
recyclable Gaialene are said to be at least 40%
below those of oil-based plastics. It also has the
advantage that it can be processed at a
comparatively low temperature of 170°C,
additionally lowering the energy consumption.
(plasteurope.com 11 October 2010)
Cargill Profit Surges 68% Volatile Grain Markets Boost Trading
Cargill, Inc., today said quarterly profit surged
68%, to USD 883 mio, helped by volatile grain
markets that boosted trading revenue for one of
the world‘s largest agricultural companies.
Results in Cargill‘s origination and processing
business, which includes commodity trading, rose
―significantly‖ in the quarter, the
Minneapolis-based company said in a statement
today.
(Continued in next column)
Cargill Profit Surges 68% As Volatile
Grain Markets Boost Trading
(Contd)
That reflected ―renewed market volatility and
changes in trade flows (that) created opportunities
for trading and for serving customers' price risk
and raw material needs,‖ Cargill said.
Revenue during the 3 months ended August 31,
Cargill‘s fiscal 2011 first quarter, rose to
USD 27.8 bio, up 6% from the same period a year
earlier, the company said. Corn, wheat and
soybean prices rallied to multi-year highs this
year as drought slashed Russia‘s grain crop and
this autumn‘s U.S. harvest produced
weaker-than-expected results. At Chicago-based
CME Group, corn futures today rallied to a
two-year high for the third day in a row.
One of the largest grain and oilseed processors
and traders, Cargill is also a top supplier of food
and feed ingredients, fertilizer, beef and pork. In
CME‘s agricultural markets, Cargill is a major
player, accounting for 15 to 20% of a typical
day‘s trading volume in corn futures, according to
estimates from floor sources.
During the first 9 months of this year, an average
of 258 679 corn futures contracts - or almost
1.3 bio bushels - traded each day, up 28% from
the same period in 2009, according to CME.
Cargill spokeswoman Lisa Clemens said the
company doesn‘t discuss its trading activity or its
customers.
(Continued on next page)
Oct/Nov 2010 www.giract.com Page | 9
Starch Italics Starch Industry Overview
Company News
Cargill Profit Surges 68% As Volatile
Grain Markets Boost Trading
(Contd)
Quarterly results also benefitted from improved
earnings from Cargill‘s food ingredients and
animal protein businesses and from its majority
stake in Mosaic Co., a fertilizer maker, the
company said. The rally in corn and soybean
prices is raising costs for beef and pork producers
and other grain users.
But Clemens noted that the U.S. corn crop this
year – estimated at 12.66 bio bushels by the U.S.
Department of Agriculture – is still expected to be
the third-largest ever.
December corn futures in Chicago today rose
23¼ cents to USD 5.79 a bushel, after climbing to
USD 5.84¼, the highest price for a
closest-to-expiration contract since August 2008.
Corn futures are up 64% from about USD 3.54 at
the end of June. Cargill owns a hedge fund, Black
River Asset Management LLC, which as of 2007
had about USD 6 bio under management,
according to news reports.
Additionally, Cargill operates eight U.S. cattle
slaughter plants with combined capacity to
process about 30 250 head a day and two hog
plants with total capacity of 38 500 head a day.
(cattlenetwork.com 12 November 2010)
Corn Products International (CPO) posts mixed results Corn Products International, Inc. (NYSE: CPO)
on Thursday morning released financial results
that barely beat Wall Street earnings expectations,
while just missing revenue estimates.
Corn Products International, Inc reported that its
3rd quarter net income dropped to USD 36.9 mio,
or 48 cents a share, down from USD 52.8 mio, or
70 cents, a year earlier. (Continued in next
column)
Corn Products International (CPO)
Posts Mixed Results (Contd)
Excluding special items, the company earned
81 cents per share. Revenue rose 5% to USD 1.02
bio, up from USD 971 mio a year earlier. A poll
of analysts conducted by Thomson Reuters
showed an average Wall Street estimate of
expected earnings of 79 cents per share, on
revenue of USD 1.03 bio.
Chairman, President, Chief Executive Officer
Ilene Gordon said, ―I am pleased to report a very
good quarter. We saw strong volume growth
across all our regions. In North America, we
continued to see strong demand from the beverage
industry in Mexico, as well as regional volume
improvements in processed foods, corrugating and
bakery. In South America, volume growth
resulted from broad customer demand across
multiple segments. In Asia/Africa, volume growth
continued to be led by customer demand for
sweeteners and starches in South Korea and
Pakistan.‖
Gordon continued, ―Given the strong performance
of the business to date, we are increasing our 2010
EPS outlook to a range of USD 2.75 to 2.85, from
our prior 2010 EPS outlook of USD 2.55 to 2.75.
This range excludes the impact associated with
the National Starch acquisition and the shutdown
of the Company's Chilean plant.‖
Corn Products International, Inc. (CPO) ended the
previous trading session at USD 41.10 per share.
Analysts covering the company's stock have a
consensus price target of USD 40.57 per share.
(benzinga.com 28 October 2010)
Oct/Nov 2010 www.giract.com Page | 10
Starch Italics Starch Industry Overview
Company News
Government To Revive Ayensu Starch Factory
The Minister for Trade and Industry,
Ms. Hanna Tetteh, has assured management and
workers of Ayensu starch limited of government‘s
readiness in revitalising the company.
She said, the government is in the process of
allocating funds towards the revamping of the
factory to create more employment in the region.
Ms. Tetteh said this when she paid a visit to the
Ayensu Starch Factory at Bawjiase in the Central
Region. She noted that the sector Ministry is
aware of the challenges management faces in the
daily activity of the factory and assured them of
her Ministry‘s assistance to facilitate the
continuous work of the factory.
The logistics co-ordinator of the factory,
Mr. Sampson Abbey Armah, in an address noted
that the factory was commissioned in
February 2004 under the Presidential Special
Initiative (PSI) on Cassava. It was also aimed to
create market for cassava growers, develop
cassava into starch and its allied products and
create job avenues for the youth.
As part of the revamping strategy, the factory has
achieved success in organising the cropping of
3 000 acres of cassava to feed the factory for
starch production. According to Mr. Armah, the
company‘s nucleus farm operations has offered
jobs to about 300 youths within the projects
catchment area and said that the number will
increase when production commence.
He announced that some prospective farmers have
expressed interest in joining the company in the
mobilisation of raw materials and are only waiting
to see the commencement of the factory
operations. (ghana.gov.gh 22 November 2010)
Solazyme and Roquette Sign
Agreement to Create Global
Nutritional Joint Venture
According to the press release, Solazyme, Inc. the
California-based leader in renewable oil and
bioproducts and Roquette Frères, the global starch
and starch-derivatives company headquartered in
France, today announced that they have signed a
joint venture (JV) agreement for the production,
commercialization and market development of
microalgae-derived food ingredients, subject to
regulatory approvals and notifications.
The JV is being formed to launch an entirely new
category of natural, healthy and functional
ingredients based on microalgae that provide
superior nutritional properties along with
outstanding taste and texture. Solazyme-Roquette
Nutritionals plans to launch a variety of oil,
protein and fiber based products aimed at
delivering improved performance with a vastly
superior health profile compared to ingredients in
the market today.
The JV, which will be 50% owned by each parent
company, will be named Solazyme-Roquette
Nutritionals, and will be operational by the
beginning of 2011. The JV‘s management team
and board of directors will be drawn from both
parent companies with Solazyme‘s CEO,
Jonathan Wolfson serving as the initial CEO of
the JV. Roquette will fund and build a JV-owned,
commercial-scale manufacturing plant with
capacity in the tens of thousands of tons of annual
production, sited at a Roquette corn wet mill.
(Continued on next page)
Oct/Nov 2010 www.giract.com Page | 11
Starch Italics Starch Industry Overview
Company News
Solazyme and Roquette Sign
Agreement to Create Global
Nutritional Joint Venture (Contd)
In addition, Roquette will provide upfront
licensing payments to Solazyme and working
capital to fund the JV until reaching profitability.
This JV combines Roquette‘s history and
capabilities as a global food ingredient supplier
with Solazyme‘s highly innovative
microalgae-based technology. Like Solazyme,
Roquette has been actively developing a
microalgal nutritional platform and runs the
Algohub® program while currently selling
algae-based nutritional products.
Roquette also possesses strong global
manufacturing assets, and access to carbohydrate
feedstock in multiple geographies through its
network of highly efficient mills. In addition, the
JV will leverage Roquette‘s large, global
nutritional sales force to stimulate rapid market
entry and provide access to major food companies
worldwide. The merger of Roquette‘s extensive
resources with Solazyme‘s revolutionary
microalgae-derived food ingredient technology,
which includes heart-healthy algal flours and oils,
will provide solutions that improve both product
functionality and nutritional profile in large
market food ingredient applications.
―Solazyme and Roquette share a very
clearly-defined vision that microalgae will
provide a major new class of food ingredients and
we enter this JV very enthusiastic about the
future‖ says Guy Talbourdet, CEO of Roquette.
Marc Roquette, Chairman of Roquette continued,
―We believe that along with Roquette, Solazyme
possesses the most innovative microalgal food
ingredient technology in the world, and we look
forward to using our extensive skills and assets to
help bring this technology to market.‖
(gsjournal.com 10 November 2010)
Tongaat Hulett expects higher interim earnings
JSE-listed agro-processor Tongaat Hulett expects
to report higher headline earnings when it releases
its half-year results next week, the company stated
on Monday. The group expects a 12% increase in
headline earnings to R507-mio for the half-year
ended September 30, compared with the
R452-mio earned in the same period last year.
The improved earnings outlook comes despite
sugar production in South Africa being affected
by "the most severe drought since the mid-1990s".
Headline earnings a share were also expected to
increase by 10% to R4,82 a share.
The group said that while European and world
sugar prices were favourable during the period, it
also started to benefit from the targeted sugar
production growth in Mozambique and
Zimbabwe. However, Tongaat Hulett said that
local sugar prices in Mozambique had not kept
pace with the weakening of the local currency unit
and that exchange rates had been less favourable
than in the corresponding period in 2009.
Meanwhile, profit from operations for the
half-year to September 30, 2010, was expected to
increase by 10% to R963-mio from the R873-mio
earned in the comparative 6 months to
September 30, 2009.
This included profit from the Mozambique sugar
operations of R163-mio, the Zimbabwe sugar
operations of R303-mio, and the South African
agriculture, milling and refining operations of
R47-mio, as well as the different other sugar and
downstream activities of R155-mio. Profit from
the starch operations amounted to R125-mio and
profit from the land conversion and development
operations was R97-mio. The group planned to
release its results on November 15.
(engineeringnews.co.za 8 November 2010)
Oct/Nov 2010 www.giract.com Page | 12
Starch Italics Starch Industry Overview
Company News
Bio-Fuels
Corn ethanol’s stock rises, as its stocks rise The Biofuels Digest Index underperformed the
S&P earlier this year, when the BP Gulf Oil leak
weighed on prices, but has sharply rebounded and
now leads the S&P by 5% for the year.
Conventional wisdom holds that first-generation
ethanol is dead as a door-nail in terms of
attracting viable investment, but events in recent
months suggest that the conventional wisdom is
off by some margin.
The Sacramento Business Journal reported
yesterday that ―shares of Pacific Ethanol Inc.
climbed 3% in trading Thursday, after the
ethanol-producer raised USD 53.5 mio in cash —
a combination of selling USD 35 million in senior
convertible notes and its minority interest in Front
Range Energy LLC for USD 18.5 mio.‖ Consider
the anguish and noise that surrounded Amyris‘s
multi-month effort to raise USD 80 mio via its
NASDAQ IPO.
Barron‘s recently opinioned that ―As world
populations grow, they will require more food and
fuel. With its portfolio of food ingredients,
livestock feed and biofuels, Archer Daniels
Midland may well be the company supplying
them.‖ ADM had a good showing through the
summer. Other ethanol players have been doing
notably well on the public exchanges this year,
with BioFuel Energy trading sharply up this
month compared to three months ago, closing
yesterday at USD 2.91 compared to USD 1.20 just
3 months ago.
(Continued in next column)
Corn ethanol’s stock rises, as its stocks rise (Contd) Not to mention the appearance of players like
Valero, Sunoco and Murphy Oil on the scene,
buying up stranded assets from VeraSun and
Panda Ethanol among others. In one recent
quarter the ethanol division of Valero was among
the brightest financial stars in that company‘s
constellation of assets, and with the profits being
generated by the until, the company may well pay
off that investment over the next few years and
find itself simply calculating the dimension of its
ROI.
Further, though the advance has been most
strongly felt in first-generation biofuels, the
Biofuels Digest Index has outperformed the
S&P 500 by 5% this year, and is up 10.3% for the
year to date, reflecting a broad rise in renewables
(especially considering the dragging effect that
BP has had on the Index since April).
What seems to be happening, instead, is a
solidifying of balance sheets (though many
companies have far to go in repairing damages
suffered during the debacle of 2008), and a return
of confidence among investors that, whatever the
fate of corn ethanol, for the time present it is here
to stay, courtesy of the Renewable Fuel Standard
and the absence of substitutes for corn in the
feedstock mix.
Ethanol futures through 2013 are trading in a
narrow USD 1.93 to USD 1.98 range on the
Chicago Board of Trade, and with 15 bio gallons
of corn ethanol likely to be produced and
distributed under the RFS (excluding the potential
for exports), that creates a relatively stable
USD 29 bio annual market for ethanol in the US.
(biofuelsdigest.com 8 November 2010)
Oct/Nov 2010 www.giract.com Page | 13
Starch Italics Starch Industry Overview
Bio-Fuels
Vietnam joins race for biofuel
Vietnam said it has intensified efforts to promote
biofuel production in the country under the plan
on biofuel development to 2015 with a vision to
2025. According to country‘s energy ministry,
Vietnam is focussing on production of ‗green
gasoline‘ from cassava, coconut, sesame, peanut,
flax and jatropha, and from animal products such
as catfish fat. The government has instructed
ministries to give incentives for the production
and use of biofuel, defined as fuel made from
these raw materials.
Under the plan on biofuel development to 2015
with a vision to 2025, Vietnam will produce
1.8 mio t of ethanol and vegetable oils for use as
fuel annually, meeting 5% of domestic petrol and
diesel demand in the next 15 years. Many
countries already manufacture large amounts of
biofuels, especially in the US and Brazil. Once a
big importer of oil, Brazil has substantially
reduced its requirement thanks to biofuel
development. Some Asian countries are strongly
investing in biofuels, among them Thailand,
China and India. By the end of 2011, Vietnam
will have five biofuels plants with a total capital
of 365kt of ethanol, which, mixed with gasoline,
will yield 7.3 mio t of E5 petrol.
Biofuel has been designated a key industry and
biofuel production projects enjoy the highest level
of investment incentives. According to
Government planners, from 2007 to 2010,
Vietnam will finalise a legal framework to
encourage the production and use of biofuel,
design the roadmap for using biofuels in Vietnam,
learning biofuel technologies, training human
resources for this industry, zoning and developing
material areas for biofuel, build biofuel plants to
meet 0.4% of the country‘s need for petrol by
2010. This start-up work is basically on schedule.
(Continued in next column)
Vietnam joins race for biofuel
(Contd)
From 2011-2015, according to planners, Vietnam
will begin to produce additives, enzymes and
other materials for biofuels and expand their
production, develop new varieties of high
productivity, and expand biofuel plant capacity to
satisfy 1% of the country‘s need for petrol by
2015. From 2016 to 2025, Vietnam will build an
advanced biofuel industry that will produce 100%
of the national requirement for E5 and B5 fuels,
i.e., will provide 5% of the fuel needed to run the
nation‘s motor fleets.
A United Nations Environment Programme report
showed biofuels accounted for 1.8% of transport
fuel. Ethanol production tripled between 2000-07
and biodiesel production rose 11-fold. The UNEP
report also said mandates to blend biofuel into
fossil fuels for vehicles had been enacted in
17 countries by 2006, most requiring blending
with 10-15% ethanol or 2-5% biodiesel. Brazil
exported 5 bio litres of ethanol in 2008. Its
investment in biofuels rose to USD 4 bio in 2007
and had most likely risen substantially since then.
OMCs’ ethanol pacts not enough for petrol plan
Oil marketing companies (OMCs) have issued
letters of intent for only 70% of the ethanol
supply offers made by the sugar industry and
standalone distillers for the petrol blending
programme. Of the 1 000 mio litres (ml) of offers
made by the industry, around 30% have been
disqualified for technical reasons, for inability to
show that the molasses used in producing ethanol
were indigenous. The tender issued by the OMCs
said the ethanol for blending should be produced
from indigenous biomass such as sugarcane or
starch-containing material such as corn and
cassava or cellulosic material such as bagasse,
wood waste, and indigenous molasses.
(Continued on next page)
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Starch Italics Starch Industry Overview
Bio-Fuels
OMCs’ ethanol pacts not enough for
petrol plan
―Those who have been disqualified are primarily
the standalone distillers, mainly in Maharashtra,
who purchase rectified spirit from sugar mills
(who do not have ethanol facility) and process it
to make ethanol. Such units are unable to show
the sourcing of molasses,‖ said a sugar industry
executive.
Against a tender requirement of 1 050 ml, the
ethanol producers had made supply offers of
1 000 ml last month. This was more than the
860 ml required for 5% petrol blending. An
Indian Oil official said OMCs have issued letters
of intent to only 70% of the offers. So, the
blending programme cannot be nationally
implemented for the whole year, unless more
quantities are tendered. A sugar industry official
said the industry might offer more if a fresh
tender is brought in, as they now have a more
reliable estimate of sugarcane output.
Ethanol blending with petrol at 5% continued for
about 2 years before coming to a halt in October
last year, due to low supply on account of dip in
sugarcane output. Against a demand of 1 800 ml
for the period of 2006 to 2009, the sugar industry
supplied only 585 ml. Consequently, in the latest
round, the OMCs have insisted on stringent
penalty clauses for non-supply or default by sugar
companies. Ethanol is considered a ‗green‘ fuel
and blending will also help reduce India‘s heavy
dependence on crude oil imports. Some OMCs
also have plans to start ethanol production
themselves. Hindustan Petroleum Corporation, for
instance, bought two sick sugar mills in Bihar in
2008 to produce ethanol. These mills will start
producing ethanol from this December.
(commodityonline.com 28 October 2010)
Frontier wheat club offers biofuel benefits
Frontier has revealed details of its farmer contract
to supply wheat to the Vivergo bioethanol plant,
being built on Humberside. The factory will use
1.1 mio t of wheat per year and is due to start
production in mid 2011, with the demand for
about 100kt per month.
"We want to make this the most attractive home
in the country for wheat," said Frontier's grain
procurement manager Andrew Flux. "The pricing
level in the area is going to go up and we are very
keen to buy wheat every day of the year." Details
of Frontier's Humber Gold club for growers were
unveiled on 11 November, promising competitive
prices and other incentives for those who signed
up to supply a minimum of 120t of wheat.
Farmers will be able to send wheat to the plant at
up to 17% moisture, with any penalties promised
at less than it would cost growers to dry grain to
the contract standard of 15%, said Mr Flux. Other
standard contract terms are a specific weight of
72 kg per hl and 2% admixture, with payment on
21-day terms. Shorter payment terms of 14 and
7 days will be available in some cases to
encourage commitment and boost supplies at
certain times. Contracts can be on a priced,
unpriced or pool basis.
All soft wheat varieties will be accepted, but for
harvest 2012 there could be incentives, including
delayed payment terms on seed, for growing
high-starch varieties which produce better ethanol
yields, said Mr Flux. The more grain a farmers
commits through the Humber Gold club, the
greater the benefits, said Mr Flux.
Frontier's Manchester Gold club, which supplies
wheat for the Cargill starch plant near
Manchester, includes a similar feature and it was
this benefit that proved most popular with
farmers, said Mr Flux.
(Continued on next page)
Oct/Nov 2010 www.giract.com Page | 15
Starch Italics Starch Industry Overview
Bio-Fuels
Frontier wheat club offers biofuel benefits (Contd)
The Vivergo plant will have flexible opening
hours, allowing farmers to arrange loading to suit
their schedule. Quality analysis will also be
available within 30 minutes of a load being tipped
at the plant. Part of the service for Humber Gold
growers will be a tool to evaluate the carbon score
of their crop production, which would help them
reduce their environmental impact, said Mr Flux.
The Vivergo bioethanol factory is a joint venture
between BP, British Sugar and DuPont. (fwi.co.uk
24 November 2010)
Sorghum Produces More Ethanol, Say Research Findings
Recent findings by Ben Goff, a researcher from
the Iowa State University, indicate that sorghum
grown as a single crop produces more ethanol.
The university studied 12 different varieties of
sorghum grass grown both in single and double
cropping methods. The research also wanted to
probe into the long-term ecological benefits such
as reduced soil erosion in following the double
cropping method. (Continued in next column)
Sorghum Produces More Ethanol, Say Research Findings (Contd)
The research was aimed at finding ethanol
production efficiency of the sorghum grass
produced under double cropping system to
improve biofuel production yield. The report
indicates that ethanol production from corn or
other starch-based varieties will meet only 15 to
25% of the clean energy requirements and
indicates that the ethanol produced from
cellulose-based materials remain more effective
than the starch-based biofuels.
According to the findings, though certain types of
sorghum developed in double cropping method
produced the same amount of ethanol like that of
a single cropped yield, only sorghum product that
is developed in single crop yield constantly
produced higher levels of ethanol. The research
suggests further trials in double-cropping system
by incorporating methods such as in the growing
of crops during various seasons and planting the
crop very close to its optimal date to improve the
quality of biomass during the major portion of its
growing season and others. (azocleantech.com 24
November 2010)
Oct/Nov 2010 www.giract.com Page | 16
Starch Italics Starch Industry Overview
Bio-Fuels
Brazil To Build Ethanol Factory In Ghana
The Brazilian government is to establish a
USD 300 mio sugar cane plantation to produce
over 100 000 cu. m. of ethanol at Makango, near
Salaga in the Northern region. Ethanol is expected
to become Ghana‘s fourth major export after
cocoa, gold and timber. The factory would
generate 42 Megawatts (MW) of energy from
Bagasse, which is the fibrous matter that remains
after the sugar cane is crushed to extract the juice.
The factory would use seven MW and sell
35 MW to other power generating companies.
This was disclosed by the Brazilian Ambassador
to Ghana, His Excellency, Luis Fernando Serra in
an exclusive interview with City & Business
Guide.
Asked why Makango was chosen for the project,
the envoy indicated that the soil for the proposed
2700-hectare plantation was good and had enough
water from the Volta Lake to do good business.
Commenting on the election of Madam Dilma
Rousseff, the first female President of Brazil,
Ambassador Serra pointed out that the results
mean continuity and also showed the support
given to her by the Lula administration. ―The
people of Brazil had recognized President Luiz
Inacio Lula da Silva‘s achievements, the country
is having USD 280 bio in international reserve,‖
he stated.
He continued: ―Brazil is now the number one
producer and exporter of green coffee, orange
juice and sugar in the world. ―She is number 2 in
beef and soya bean. Number 3 in chicken and then
number 4 in corn or maize.‖ Ambassador Serra
revealed that in 2009, Brazil exported
USD 64.7 bio in agricultural products and
imported only USD 9.8 bio worth of goods.
(Continued in next column)
Brazil To Build Ethanol Factory In Ghana (Contd)
He also stated that Brazil recovered from the
world economic crisis faster than the rest of the
world because it has a very huge internal market
that consumes what the country was not able to
export.
Serra again disclosed that measures were in put in
place in 1994 to control inflation and attract
foreign investors, explaining that an open market
policy was also adopted. ―Another policy that was
vigorously adopted was food security by which
Brazil went into intensive and extensive
agriculture development with intensive scientific
research in all fields of agriculture,‖ he stressed.
The country ‗s scientific researchers, the Brazilian
envoy revealed, are seriously trying to develop a
new type of wheat that could be cultivated in the
tropical regions so as to help developing
countries, especially those in Africa to save a lot
of foreign exchange. ―The African continent is
dear to Brazil as we see it as our mirror and it
showed clearly in the foreign policy of the
out-going administration,‖ Serra said, adding that
15 African Embassies were opened during his
tenure with 11 African trips to 25 countries.‖
He noted that Brazil owed a great debt to the
African continent, revealing that slaves taken
from Africa helped to enrich the Southern
American countries in terms of what they did in
the mines and sugar plantations. ―Brazil will
continue to support the campaign for an African
country to become a permanent member of the
United Nations,‖ he stated. Ambassador Serra
advised that Ghana should continue its campaign
on intensive agriculture to feed the people and
acquire surplus for export.
(business.peacefmonline.com 11 November 2010)
Oct/Nov 2010 www.giract.com Page | 17
Starch Italics Starch Industry Overview
Bio-Fuels
Biofuels Blame Game
Every time the biofuels industry thinks it has
successfully battled back the food vs. fuel
argument, it crops up again. The tired old
argument resurfaced after an October 8 USDA
report forecast dramatic decreases in world coarse
grain supplies, including corn. In the following
days corn futures prices shot up to a high of
USD 5.79, prompting some to predict food prices
would soar.
The American Meat Institute, for example,
quickly predicted that increased corn costs would
mean increased prices for beef, pork and poultry
and producers would pass on higher feed costs to
consumers. AMI and other ethanol critics met
with the White House October 21 to oppose the
extension of ethanol tax credits. However AMI
ignores the one-third of the corn that goes into an
ethanol plant that comes out as distillers grains. In
fact, in 2009, the ethanol industry produced the
equivalent amount of distillers grains as was fed
to cattle at U.S. feedlots last year, says
Bob Dinneen, President and CEO of the
Renewable Fuels Association.
Another item that gets filed in the short term
memory bank is the World Bank report that came
out this summer. Authors John Baffes and Tassos
Haniotis conclude that biofuels had a much
smaller impact on food prices during the
commodity price boom of 2006-08 than initially
reported. It‘s clear, the report says, that U.S. corn-
based ethanol production and, to a lesser extent,
EU biodiesel production, affected market balances
and land use.
Worldwide biofuels only account for about 1.5%
of the area planted with grain and oilseeds,
however. ―This raises serious doubts about claims
that biofuels account for a big shift in global
demand,‖ the report says. It also points out that
corn prices didn‘t change much at all as U.S.
ethanol production first started increasing.
(Continued in next column)
Biofuels Blame Game (Contd)
Notably, prices actually spiked when ethanol use
was decreasing in the U.S. The report says that
demand by developing countries probably didn‘t
put upward pressure on the prices of food
commodities. It may have, however, put some
upward pressure indirectly through energy prices.
It also says the investment funds‘ use of
commodities, or the ―so-called financialization of
commodities,‖ may have been partly responsible
for the food price spike in 2007-08.
Oil prices were a big factor, too. ―A stronger link
between energy and non-energy commodity
prices is likely to be the dominant influence on
developments in commodity, and especially food,
markets,‖ the paper says.
Many in the ethanol industry say they have been
vindicated. ―This report should finally silence
those that have blamed the biofuel producers for
food shortages, food price increases and for
committing a ‗crime against humanity,‘‖ says
Rob Vierhout, secretary general of ePURE, the
Producers Union of Renewable Ethanol, formerly
eBio. ―It is about time these people recognize the
facts.‖ Tom Buis, CEO of Growth Energy, says
the report would dispel myths and lies of food vs.
fuel. ―I applaud the World Bank for admitting the
error of their ways and setting the record
straight.‖ (ethanolproducer.com 22 October 2010)
GIRACT
9th
Starch & Derivatives Conference, Geneva
Giract has pleasure in announcing this important
event to take place in Geneva, Switzerland on
February 25, 2011. The theme of this 9th
conference will be ‘Sustainability Issues for the
Starch Industry’. It is designed to be an
interactive seminar and ideal networking
opportunity for a limited number of high-level
participants. Full details are to be found on the
following pages. Please do not hesitate to
contact us at [email protected] if you have any
questions.
AAAAN N N N IIIINTERNATIONAL NTERNATIONAL NTERNATIONAL NTERNATIONAL SSSSEMINAREMINAREMINAREMINAR
9999thththth
Starch &Starch &Starch &Starch &
Derivatives Derivatives Derivatives Derivatives
ConferenceConferenceConferenceConference Sustainability Issues for Sustainability Issues for Sustainability Issues for Sustainability Issues for
the Starch Industry the Starch Industry the Starch Industry the Starch Industry
---- an Interactive Seminar an Interactive Seminar an Interactive Seminar an Interactive Seminar
February 25, 2011February 25, 2011February 25, 2011February 25, 2011
Geneva, SwitzerlandGeneva, SwitzerlandGeneva, SwitzerlandGeneva, Switzerland
Organised byOrganised byOrganised byOrganised by
GGGGIRACTIRACTIRACTIRACT 24 Pré Colomb
CH-1290 Versoix-Geneva
Tel: +41 22 779 0500
Fax: +41 22 779 0505
www.giract.com
BBBBACKGROUNDACKGROUNDACKGROUNDACKGROUND
The Starch Industry continues to evolve
rapidly. The global shift in production and
demand, raw materials issues and changing
consumer demands are reflecting the growing
importance of the sustainability question for
the industry. This will be the main theme of
the 9th Starch & Derivatives Conference which
will focus on the opportunities for the
European starch sector.
It may be necessary for reasons beyond the control of the
organizers to alter the content and/or timing of the programme
PPPPROGRAMMEROGRAMMEROGRAMMEROGRAMME This 9th seminar will aim to:
• offer an interactive forum for identifying common
opportunities and threats
• present and discuss recent industry developments
• obtain and analyse relevant external views
PPPPROVISIONAL ROVISIONAL ROVISIONAL ROVISIONAL AAAAGENDAGENDAGENDAGENDA
� WWWWORLDORLDORLDORLD TTTTRADE IN RADE IN RADE IN RADE IN AAAAGRICULTURAL GRICULTURAL GRICULTURAL GRICULTURAL CCCCOMMODITOMMODITOMMODITOMMODITIES IES IES IES
–––– CCCCEREALS VERSUS EREALS VERSUS EREALS VERSUS EREALS VERSUS TTTTUBERSUBERSUBERSUBERS
Alastair Dickie - CFM (UK) Ltd
� SSSSTARCH IN TARCH IN TARCH IN TARCH IN TTTTHE HE HE HE EEEEUROPEAN UROPEAN UROPEAN UROPEAN PPPPAPER APER APER APER IIIINDUSTRYNDUSTRYNDUSTRYNDUSTRY ---- A A A A
CCCCHANGING HANGING HANGING HANGING GGGGLOBAL LOBAL LOBAL LOBAL PPPPERSPECTIVEERSPECTIVEERSPECTIVEERSPECTIVE
Detlef Glittenberg – Cargill
� OOOOPPORTUNITIES FOR PPORTUNITIES FOR PPORTUNITIES FOR PPORTUNITIES FOR TTTTAPIOCA IN APIOCA IN APIOCA IN APIOCA IN IIIINDIANDIANDIANDIA
Speaker to be announced
� SSSSUSTAINABLE USTAINABLE USTAINABLE USTAINABLE FFFFOOD OOD OOD OOD PPPPRODUCTION AND RODUCTION AND RODUCTION AND RODUCTION AND
IIIIMPLICATIONSMPLICATIONSMPLICATIONSMPLICATIONS FOR FOR FOR FOR SSSSTARCH TARCH TARCH TARCH SSSSUPPLIERSUPPLIERSUPPLIERSUPPLIERS
Holger Toschka - Unilever
� OOOOPPORTUNITIES AND CHAPPORTUNITIES AND CHAPPORTUNITIES AND CHAPPORTUNITIES AND CHALLENGES FROM AN LLENGES FROM AN LLENGES FROM AN LLENGES FROM AN
EEEEQUIPMENT QUIPMENT QUIPMENT QUIPMENT SSSSUPPLIERUPPLIERUPPLIERUPPLIER’’’’S S S S PPPPOINT OF OINT OF OINT OF OINT OF VVVVIEWIEWIEWIEW
Speaker to be announced
� NNNNEED FOR EED FOR EED FOR EED FOR OOOOPEN PEN PEN PEN IIIINNOVATION IN THE NNOVATION IN THE NNOVATION IN THE NNOVATION IN THE SSSSTARCH TARCH TARCH TARCH
IIIINDUSTRY NDUSTRY NDUSTRY NDUSTRY
Jo Goossens – Giract
GGGGIRACT IRACT IRACT IRACT CCCCOMPETENCEOMPETENCEOMPETENCEOMPETENCE Giract is the leading ingredient and additive market
research specialist with over 30 years experience.
Its clients are worldwide in both ingredients supply
and food processing industries.
It has been working closely with the starch industry
- both at the producer and user levels – for a
number of years and thus understands the real
requirements of this sector:
� it is an independent company with an
unblemished reputation of strict neutrality and
confidentiality
� its senior members are already known to many
key personnel in this industry
� its range of work in the starch and related
sectors – both individual and multiclient – over
a number of years has given it a clear
understanding of the sector and its problems
and opportunities.
CCCCONFERENCE ONFERENCE ONFERENCE ONFERENCE BBBBOOKING OOKING OOKING OOKING FFFFORMORMORMORM We wish to register the following delegate(s):
Title (Mr/Ms/Mrs/Dr) _____ First Name ________________________ Family Name __________________________________
Position ________________________________________________________________________________________________________
Email _________________________________________________________________________________________________________
Title (Mr/Ms/Mrs/Dr) _____ First Name ________________________ Family Name __________________________________
Position ________________________________________________________________________________________________________
Email __________________________________________________________________________________________________________
Company _________________________________________________________________________________________________
Address _________________________________________________________________________________________________
Telephone _____________________________________ Fax ___________________________________________________
RRRREGISTRATION EGISTRATION EGISTRATION EGISTRATION FFFFEESEESEESEES
First delegate: EUR 1950 EUR ____________
Additional delegate(s): EUR 1550 per delegate EUR ____________
Dinner, February 24, 2011: EUR 85 per delegate EUR ____________
Total EUR ____________
HHHHOTEL OTEL OTEL OTEL CCCCHOICEHOICEHOICEHOICE
HotelHotelHotelHotel ______________________________ Please note that all hotel charges are to be settled directly by the client
No of rooms: _____ No of nights: _______ Date(s): ___________________________________________________________
DDDDATEATEATEATE Friday, Friday, Friday, Friday, February 25, 2011February 25, 2011February 25, 2011February 25, 2011: 09h00: 09h00: 09h00: 09h00----16h0016h0016h0016h00
VVVVENUEENUEENUEENUE Swissôtel Metropole
Quai Général Guisan 34
1204 Geneva
Tel: +41 22 318 3200
www.swissotel.com/geneva
Situated on the lakeside in downtown Geneva
HHHHOTEL OTEL OTEL OTEL AAAACCOMMODATIONCCOMMODATIONCCOMMODATIONCCOMMODATION Hotel accommodation and travel are not included in
the registration fee.
Rooms have been retained for delegates at the
following hotels, each with special conference rates.
Please indicate your choice as soon as possible as
room availability at these hotels is limited
SwissSwissSwissSwissôôôôtel Metropoletel Metropoletel Metropoletel Metropole CHF 450/night conference venue (incl. breakfast)
HotelHotelHotelHotel New Midi New Midi New Midi New Midi CHF 290/night 10 minute walk from conference venue (excl. breakfast)
HotelHotelHotelHotel Churchill Churchill Churchill Churchill CHF 155/night 5 minute walk from conference venue (incl. breakfast)
CCCCONFERENCE ONFERENCE ONFERENCE ONFERENCE RRRREGISTRATION EGISTRATION EGISTRATION EGISTRATION FFFFEEEEEEEE First participant: EUR 1950 Additional delegates: EUR 1550 per delegate
For registrations received after February 4, 2011, fees will be:
First participant: EUR 2150 Additional delegates: EUR 1700 per delegate
HHHHOW TO OW TO OW TO OW TO RRRREGISTEREGISTEREGISTEREGISTER - Online at www.giract.com/reservations using the
event code stc9
- By completing and returning the booking form to:
GGGGIRACTIRACTIRACTIRACT 24 Pré Colomb
CH-1290 Versoix/Genève, Switzerland
Tel: +41 22 779 0500 Fax: +41 22 779 0505
DDDDINNER INNER INNER INNER FOR FOR FOR FOR DDDDELEGATESELEGATESELEGATESELEGATES,,,, FFFFEBRUARY EBRUARY EBRUARY EBRUARY 24,24,24,24, 2011201120112011 Giract is organising a dinner for delegates on
Thursday evening, February 24. This is an
important networking opportunity and we
encourage all delegates to participate.
Contribution is EUR 85 per delegate.
PPPPAYMENTAYMENTAYMENTAYMENT - By bank transfer to:
UBS - Union de Banques Suisses
1211 Genève 2 Depôt
IBAN: CH540024024042182971X
- With Visa/Mastercard via online registration
CCCCANCELLATIONANCELLATIONANCELLATIONANCELLATION Written cancellations received before February 4,
2011 will be fully refunded; those received between
February 4 - February 18, 2011 will be subject to
an administrative charge of EUR 160. Thereafter, it
is regretted that the full conference subscription
fee will be due. However, a copy of the conference
proceedings will be provided. Substitute delegates
are permitted if notified in advance.
9999THTHTHTH SSSSTARCH TARCH TARCH TARCH &&&& DDDDERIVATIVES ERIVATIVES ERIVATIVES ERIVATIVES CCCCONFERENCEONFERENCEONFERENCEONFERENCE GGGGENEVAENEVAENEVAENEVA,,,, FFFFEBRUARYEBRUARYEBRUARYEBRUARY 25,25,25,25, 2011201120112011
Oct/Nov 2010 www.giract.com Page | 18
Starch Italics Starch Industry Overview
Bio-Fuels
Commodities Buzz: US Can Meet Ethanol Demand Despite Tight Supplies; Says Deputy Secretary Soaring corn prices and tightening supplies will
not shake the government's support for ethanol, a
top U.S. Department of Agriculture official.
Despite new government estimates projecting
corn supplies next year will reach their lowest
level in 14 years, USDA deputy secretary
Kathleen Merrigan noted that historically, we're
looking at a very strong corn crop.‖ The USDA
estimates the corn crop is about 4% smaller than
last year's record.
Merrigan added that there is no way U.S. will
meet federal mandates calling for 36 mio gallons
of renewable fuel production by 2022 without
relying on corn-based ethanol. I don't think we're
at the point of pitting various interests against
each other, she said at a conference on agriculture
and rural development at the Chicago Federal
Reserve. The livestock and poultry industries
have fiercely opposed government support for
ethanol, claiming it drives up the cost of feed, and
food costs generally.
Chicago Board of Trade corn prices climbed
above USD 6 a bushel to a 27-month high this
week before falling back. Almost 40% of the
2010 U.S. crop will be used for ethanol, according
to USDA. (indiainfoline.com 11 November 2010)
Busy Time for Ethanol Producers
Mason City - It's out of the field and making its
way to elevators around the area. This year's corn
crop is one of the better harvests for both north
Iowa and southern Minnesota, and that's causing
big business for those marketing the crop. The
corn is starting to make its way to ethanol
producers across the state.
(Continued in next column)
Busy Time for Ethanol Producers (Contd)
About one acre of corn can produce more than
300 gallons of ethanol, and producers in north
Iowa are keeping busy with all those kernels.
"As a nation almost a third of the crop gets turned
into ethanol," said Scott Gudbaur, commodities
manager. "We grind between 115 and 120 000
bushels of corn per day so that means we've got to
take in about 160 000 average in the 5 day work
week," said Gudbaur. He also said, "This plant
opened as a 40 mio gallon plant and it was
doubled 2 years ago so it's an 80 mio gallon plant
that we're running like 110 mio gallons from,".
The National Corn Growers Association says for
every barrel of ethanol produced, 1.2 barrels of
petroleum are displaced. At the beginning of this
year there were 189 ethanol plants in operation in
the United States. (kimt.com 11 October 2010)
Agricultural Waste to Biofuel Research Published in India Two scientists from Sri Paramakalyani Centre of
Excellence in Environmental Sciences
(SPKCEES) - affiliated to Manonmaniam
Sundaranar University - have extracted fuel from
agro-waste.
(Continued on next page)
Oct/Nov 2010 www.giract.com Page | 19
Starch Italics Starch Industry Overview
Bio-Fuels
Agricultural Waste to Biofuel Research Published in India (Contd)
C. Sathesh Prabhu, a post-doctoral researcher of
the centre, who is working on advanced research
on bio-ethanol production from lignocellulosic
agro-waste along with A.G. Murugesan,
Professor, SPKCEES, says production of ethanol
as an alternative fuel through cost-effective
methods has become imperative due to global oil
shortage and demand. Currently ethanol accounts
for about 86% of total bio-fuel production and
demand for ethanol as bio-fuel has steadily
increased during this decade.
However, the production of ethanol from sugar or
starch from sugarcane and cereals respectively,
impacts negatively on the economics of the
process, thus making ethanol more expensive
when compared to fossil fuels.
Currently, agricultural waste in India is generally
burnt at the field itself. The scientists claims that
using more of the agro-waste for bio-ethanol
production will not only suffice the fuel
requirement, but will also boost the economy of
the country, the researchers say. The production
methods of ethanol from agricultural waste like
corn cob, corn stalk and sorghum stover have
been successfully standardised at the centre.
(Continued in next column)
Agricultural Waste to Biofuel Research Published in India (Contd)
Dr. Sathesh Prabhu has demonstrated simple
pre-treatment methods to break down the complex
agricultural wastes (carbohydrate sources) into a
simple form, so as to enable the ethanologenic
microorganisms to ferment them and produce
ethanol. He states that about 250 - 270 litres of
ethanol can be produced from 1 t of agricultural
waste such as corn stover, rice straw and sorghum
stover.
Prabhu's study highlights dual benefits in terms of
managing the agro-residues and producing green
and clean energy, thus decreasing the amount of
greenhouse gases emitted into the atmosphere.
(waste-management-world.com 26 November
2010)
EPA Announces Renewable Fuels Standard 2011 Requirements The Environmental Protection Agency (EPA)
today announced its Renewable Fuels Standard
(RFS2) requirements for 2011. The final
requirements fall in line with the agency‘s
proposed rule from earlier in the year. The total
RFS2 requirement for 2011 will remain at
13.95 bio gallons. Of this amount,
12.6 bio gallons will be starch-based ethanol.
The remaining 1.35 bio gallons will be a
combination of biodiesel and other advanced
biofuels, including a 6.6 mio gallon requirement
specifically for cellulosic biofuels, which is lower
than original targets established when the RFS2
became law. In response to the standard,
Renewable Fuels Association (RFA) President
and CEO Bob Dinneen issued the following
statement:
(Continued on next page)
Oct/Nov 2010 www.giract.com Page | 20
Starch Italics Starch Industry Overview
Bio-Fuels
Bio-Plastics
EPA Announces Renewable Fuels Standard 2011 Requirements (Contd)
―The RFS was designed in part to ensure the
evolution of America‘s biofuels industry is
successful. By reducing the standard for cellulosic
biofuels, EPA is accurately reflecting the
difficulties cellulosic biofuel technologies have
encountered in obtaining the capital needed to
fully commercialize. However, being aware of
this fact, EPA should have been and must be
careful to keep cellulosic biofuel targets ambitious
so as to stimulate the kind of investment these
technologies need to finish commercialization.‖
In its comments on EPA‘s proposed rule, the RFA
urged EPA to keep the overall RFS target at
13.95 bio gallons and allow other renewable fuels
as defined by the RFS to make up the cellulosic
biofuel shortfall in 2011.
(cornandsoybeandigest.com 29 November 2010)
Mater-Bi distribution agreement with Thailand's Thantawan
Italian bioplastics manufacturer Novamont
(Novara) signed an agreement with Thai bag and
flexible straw manufacturer Thantawan Industry
(Bangkok) for the distribution of Mater-Bi in
Thailand.
Pointing to the advantages of producing
bioplastics in Thailand, Novamont‘s new
Business Development Director Stefano Facco
did not dismiss the option that pending good sales
of Mater-Bi, the Italian company could in future
establish a plant in Thailand to produce Mater-Bi
from cassava starch. (plasteurope.com 28
September 2010)
Potatoes To Plastic A Carberry-based company continues to research
new applications for potato-based bioplastic.
Solanyl Biopolymers holds the license to
technology that uses potato starch from the food
processing industry to create a starch-based
bioplastic that can be turned into semi-durable
and disposable products.
"If you look around and see how much plastic is
around, there's lots of opportunity and lots of
ways to use our material," says marketing
manager Mavis McCrae.
So far, the company has used its bioplastic to
make products such as office supplies and
biodegradable greenhouse pots. "Anything that is
semi-durable or disposable is a great application
for the bioplastic," says McCrae.
The starch is reclaimed from the waste water at
potato processing facilities. It is then converted
into a resin that can be heated and shaped through
traditional injection molding. Solanyl was
recognized earlier this month as the Emerging
Agribusiness Life Science Company of the Year
by the Life Science Association of Manitoba.
(portageonline.com 22 November 2010)
Oct/Nov 2010 www.giract.com Page | 21
Starch Italics Starch Industry Overview
Bio-Plastics
Researchers engineer genes of plants to grow raw materials for green plastic
Till date most plastic that we use in our day-to-
day lives either comes from petroleum or coal.
Recent advancements in technology have enabled
manufacturers to come up with greener
alternatives in the form of bioplastics that are
made from polyester derived from corn, starch or
sugar cane byproducts. Researchers at the
Brookhaven National Laboratory and
Dow AgroSciences have now come up with a new
technology that can help produce green plastic
without tapping into the food supply.
The research team has engineered a relative of
cabbage to grow the raw materials for producing
eco-friendly plastic. The biologists wanted to
make plants that can produce high levels of
omega-7 fatty acids that can be used to make
compounds needed in plastic production.
The team experimented with genes from plants
that are known to produce these acids in their
seeds. After experimenting with a variety of
plants including milkweed and cat‘s claw vine,
the researchers had to engineer an entirely new
metabolic pathway creating artificial enzymes to
create seeds with high level of omega-7 fatty
acids. These genetically modified seeds can be
used as a renewable source of chemicals that can
then be used to make greener plastics.
(ecofriend.org 11 November 2010)
Nigeria's Plastic Bag Dilemma
Across Africa, plastic bags blemish rural and
urban scenery, damage ground water and soils,
and choke livestock and fish, entangle birds and
threaten animals in general. The UN Environment
Program, UNEP, estimates that some 4 or 5
trillion plastic bags are manufactured worldwide
every year, with only 1% being recycled.
(Continued in next column)
Nigeria's Plastic Bag Dilemma (Contd)
The work is being done at the Biotechnology
Advanced Laboratory in Abuja, a part of the
government‘s Sheda Science and Technology
Complex.
Researchers are working to embed biodegradable
starch in polymers, which are used to make
plastics. Next, they identify microbes that would
feed on the starch and cause it to break down
completely into organic material, which would
then be assimilated back into the soil.
Prof Godwin Ogbadu is director of the
Abuja-based Biotechnology Advanced Laboratory
In South Africa, experts are developing plastic
bags that dissolve into water and carbon dioxide
in prolonged exposure to sunlight.In Mali, experts
are working using them to make paving stones.
Some governments are passing laws to ban or
curb the use of plastic bags. Several economists
argue that restrictions will lead to unemployment
and revenue loss, while others say it will save
millions of barrels of oil used in producing plastic
bags. Dr. Shola Odusanya is deputy director on
the Biotechnology and Genetic Engineering
Laboratory, part of the Sheda Science and
Technology Complex. He and his colleagues are
working to reduce the amount of plastic waste
with a process that breaks it down into powder.
(Continued on next page)
Oct/Nov 2010 www.giract.com Page | 22
Starch Italics Starch Industry Overview
Bio-Plastics
Nigeria's Plastic Bag Dilemma (Contd)
The Nigerian scientist says, Odusanya says the
project will become marketable and will create
new jobs. Litter bins for plastic waste will be set
up nationwide, and people will be recruited to
search through the dumps for plastics.
In some countries, like Cameroon, waste
management systems are inadequate and
environmental laws rarely enforced. In those
cases, the approach is different. An eco-friendly
artist, Nereus Patrick Cheo, has recruited an army
of street children.
Together they rake through foul-smelling refuse
dumps for plastics, which Cheo transforms into
flower jars, beads, statues and muralsFor now, the
bulging heaps of abandoned waste, especially
plastics, remain. And so environmentalists are
hoping Dr. Odusanya‘s project will be successful
and can be used by scientists in other parts of
Africa. (voanews.com 5 October 2010)
Wacker develops biodegradable plastics
The Wacker Chemie AG has, in collaboration
with customers, developed biodegradable plastic
products made from powder binders and either
starch or flour – as announced on the 8th of
November 2010. In combination with renewable
raw materials, Vinnex® polymeric binding agents
make it possible to create polymer blends that –
like commercially available thermoplastics – can
be processed by injection molding, extrusion,
vacuum forming or thermoforming.
As a result, Wacker is now able to combine starch
or flour with Vinnex® to create polymer blends
that will biodegrade entirely under industrial
composting conditions and that still can be
processed in the same way as petroleum-based
plastics. (Continued in next column)
Wacker develops biodegradable
plastics (Contd)
Suitable uses for these new polymer blends
include materials for packaging, catering
products, gardening and landscaping. The
Vinnex® vinyl acetate-based polymeric binder
system can be combined with renewable raw
materials such as starch, polylactic acid (PLA)
and polyhydroxyalkanoates (PHA) to create
polymer blends with adjustable properties which
can be modified to correspond to a variety of
synthetic polymers.
Like commercially available thermoplastics,
biopolymers obtained in this way and containing
between 5 and 30% Vinnex® can easily be
processed by injection molding, extrusion,
vacuum forming, thermoforming and calendering.
In addition, the formulations of these polymer
blends can be adjusted so that they are
processable with standard (unmodified)
thermoplastic equipment, making additional
investment unnecessary.
The greatest advantage of these innovative new
polymers, however, is their biodegradability:
composting studies have shown that blends
containing Vinnex® break down within 180 days
under industrial composting conditions, as
stipulated by DIN EN 13432. The option of using
flour as the primary constituent is yet another
advantage of these new polymers: flour can be
obtained in fewer processing steps than starch,
and that translates into less energy and a
significantly more sustainable carbon footprint.
Wacker already possesses patents for modified
starch polymers.
Because they are biodegradable, these new
polymer blends are especially suitable for use as
food packaging materials, disposable dishes,
shopping bags and trash bags, as well as for
injection-molded agricultural products such as
tomato clips and flower pots. (jeccomposites.com
11 November 2010)
Oct/Nov 2010 www.giract.com Page | 23
Starch Italics Starch Industry Overview
Bio-Plastics
Others
NYU researchers find corn starch solution can help shape solid materials
New York University researchers have developed
a method to shape solid materials using a corn
starch solution. The process, devised by
researchers in NYU's Courant Institute of
Mathematical Sciences and Department of
Physics, offers a potential technique for material
cutting and manufacturing processes. Their work
is described in the journal Physical Review
Letters.
Manufacturers use a variety of methods for
shaping solid materials, ranging from laser cutting
to high-speed jets of water. While altering the
shape of such materials, such as glass, metal, or
stone, is relatively straightforward, doing so with
precision often proves challenging. With this in
mind, the NYU researchers sought to create an
alternative, but rudimentary, method to shape
solid materials in a precise fashion. To do so, they
considered a process involving a corn starch
solution.
They submerged a motor-powered, plastic sphere
through the cornstarch solution toward a
containing wall made of modeling clay, stopping
just short of the wall. Using the force of the
sphere to harden the cornstarch solution, the
researchers were able to make indentations in the
wall of modeling clay.
In addition, they were able to do so with a degree
of precision by taking into account speed, force,
and geometry.
By moving the sphere at fast speeds through the
solution, they created large depressions in the
clay; by slowing it down, they created smaller
depressions. (eurekalert.org 4 Nov 2010)
Cardia makes bags by blending CO2
with starch a rdia makes bags by
blending C2 with starch
Melbourne packaging technology company
Cardia Bioplastics has developed a biodegradable
plastic bag created from a blend of CO2 emissions
and starch. Chairman Pat Volpe said the company
has successfully completed a first production run
of the carrier bags, known as CO2S – or, carbon
dioxide plus a starch based renewable resource.
―This is the first time CO2 emissions have been
transformed in this way and the development has
the potential to revolutionise the production of
bioplastics around the globe,‖ he said.
According to the company, CO2 emissions are
captured prior to being released into the
atmosphere, transformed into a polypropylene
carbonate (PPC) polymer and blended with a
renewable resource (starch) to produce the Cardia
Bioplastics CO2S resin. This product is then used
to produce a completely biodegradable carrier
bag.
Volpe said this development promises to offer
packaging alternatives globally, with the company
now in discussion with several parties interested
in the technology.―Our new patent pending
blending technology used to manufacture CO2S
compostable product will complement the
existing Cardia Bioplastics portfolio,‖ Volpe said.
(prw.com 26 October 2010)
Southern Minnesota Beet sugar cooperative Minnesota is using a specialty crop, like
sugarbeets. It takes unique and expensive
equipment to harvest the beets, which would have
no use or value in producing other crops. That
means a well-organized harvest among individual
growers and a coordinated sugar processing
season are in every sugarbeet farmer's best
interest. (Continued on next page)
Oct/Nov 2010 www.giract.com Page | 24
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Others
Regional Language News
Southern Minnesota Beet sugar cooperative (Contd)
Meanwhile, the huge sugarbeet processing plant
at Renville would be too costly for any individual
farmer or even a small group of farmers to build
and operate on their own. The only alternative
would be an enormous, vertically integrated
farming operation that would not be consistent
with Minnesota's family farm business model.
Farms are individually and family-owned
enterprises in Minnesota.
Through cooperation, these farms can engage in
value-added business activities that increases rural
wealth, provides jobs, and retains a higher portion
of the consumer food dollar at home.
Specialty nut, fruit and vegetable crop producers
in other parts of the United States operate in much
the same way as Minnesota and North Dakota
sugarbeet farmers. The uniqueness of the costly
sugarbeet equipment, however, makes our sugar
industry more like a special potato starch
cooperative in northern Holland and adjacent
areas of Germany. These farmers grow potatoes,
but not the kind you buy in stores.
The world's pharmaceutical companies buy the
starch this crop produces because it's a
highly-digestible material used in making
medicine capsules. Land costs in the Netherlands
would make growing potatoes for the retail
market nearly impossible.
The innovation and business savvy of the Dutch
starch cooperative, however, make the Dutch and
German potato farmers among the most successful in the world by producing extreme
value-added products. (tcdailyplanet.net 23
November 2010)
These are the news derived from regional
publications, translated using online tools,
hence the medium quality of translation.
China
Strive to achieve the 3 mio t Plant Polyols Capacity
Dacheng Group is the largest corn intensive
processing group in China, the annual corn
processing capacity is 4 mio t, with more than
200 sorts of products, which are sold both at home
and abroad. 75% of the product is feeding stuff
and feeding additives, which can sell back to the
agriculture as well as support the rapid
development of animal husbandry; another 20% is
food stuff, which includes amylose and corn oil.
The Polyols Plant takes up 5% of the product,
which take the place of the oil chemical products.
During the 13 years, Dacheng Group has two
items ranking first in the world, one is the lysine
production capacity and technology, the other is
the innovative technology and production as well
as the sales of the plant chemical Polyols, and all
of the techniques are intellectual property rights.
In 2009, the global lysine sales was not more than
1 mio t, Dacheng Group make up for 60%, with
570kt sales; the group use the botanical
glycosides as raw materials of the Polyol plant,
they produce the chemical materials that can
replace oil, by using the hydro cracking
technology. The products are widely developed
and applicated by the customers at home and
abroad. The sales are 3kt to the USA and 1kt to
the Europe every month.
Last year, Dacheng Group successed in the
technique to produce Polyols by using the
diversification of non-food plant sugars as raw
materials and take corn as material to produce
polyols plants.
(Continued on next page)
Oct/Nov 2010 www.giract.com Page | 25
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Strive to achieve the 3 mio t Plant Polyols Capacity (Contd)
This year, Dacheng Group strives to develop the
straw sugar, reduce or stop using the corn as the
material in producing Polyols. By the end of the
year, Dacheng group will build an annual output
of 20kt corn straw sugar-producing model plant.
In 2011, five 100kt production plants will be set
up in Changchun area; and in the year 2012, there
will be another 5.
The 5 carbon sugars and the 6 carbon sugars
making out of the corn straw are of high
utilization and low cost, meanwhile, the
production process is clean green and energy.
For the time being, 1 t sugar can be made out of
2.5 t corn straw in Dacheng group, which can
make a 67% farmer income increase, and turning
the waste into treasure. The straw is
CNY 600 per t ;and the corn is CNY 1500 per t.
Dacheng group not only successes in making the
inexhaustible straw resources a replacement of the
oil resources, but also solves the problem of
handling the straw, fit in with the green and low-
carbon economy, as well as ensuring the farmer‘s
increase income, supporting the agriculture
development.
Dacheng group has future plans of building the
3 mio t Polyol plant project and 3.5 mio t Straw
Sugar project. The group is committed to make
good use of the plant resources, strive to develop
the biological manufacturing, and make a
significant contribution to the industrial structure
adjustment of Jilin province.
(jlrbszb.chinajilin.com.cn 16 October 2010)
Output Reduction is not the Main Factor of the Cassava Starch Price Since the fresh potato enter the market, the rate of
cassava production cut is 20-30% in some areas in
Guangxi, some places even up to 50%. Since the
fresh potato of 2009-10 season launched a heavy
volume on the market in Guangxi, the prices
continue to go higher, the flour containing rate is
26-27%, purchase price of the headland fresh
cassava is CNY 560-580 per t. Correspondingly,
the cassava starch prices also follow higher.
Thailand's cassava has kept the issue of
production cut signal, the expected 2009-10
season cassava production in Thailand was only
22.21 mio t, far lower than the pre-production of
the 27.76 mio t before the pests‘ out breaking.
Therefore, cassava starch price is not bearish but
bullish, the overall market to maintain the shock
upstream.
The whole planting area of cassava in Vietnam
remain stable about 45 mio hectares , strive to
achieve the average 23-24 t cassava per hectare
yield of planting area by 2015, and to succeed by
using enhanced growing techniques, quality
seeds, plant protection to support the development
and investment. Vietnam cassava has switched
into a value-added crop. Vietnam Ministry of
Trade and Industry has been identified cassava
products as the Vietnamese agricultural export
pillar products.
In recent years, the domestic market has the
increasing demand for the imports of cassava
products, domestic cassava starch mitigation on
the domestic market supply and demand gap is
just drop in the bucket, and 60% of the cassava
starch demand has to be made up by the import.
China is a country that demands for cassava
products in a great quantity. Every year China
imports more than 600 t dried cassava chips and
cassava starch.
(Continued on next page)
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Output Reduction is not the Main Factor of the Cassava Starch Price (Contd)
At present, China is the main export market of
various cassava products of Vietnam and
Thailand, accounting for more than 90% of the
cassava exports total amount. Many countries in
Asia, Indonesia, Cambodia, have gradually
participated in the cassava product competition.
Thai deputy spokesman W Lak poor in prime
minister's office disclosed that the Cabinet agreed
to sale 14 mio t flour to the China Marine
Shipping Agency Lianyungang company through
the official form (G2G), commensurate with the
price of 10 660 baht per t, for its price is higher
than other companies.
This sale of tapioca flour is to reduce the risk of
deterioration of goods, piece goods by the Bay
has reached 16 months. According to regulations,
the shipment should reach the destination after
signing the contract within 2 months. Therefore,
these goods should be in shipment before July.
We all know that these powders have been stored
for 16 months, and there will be certainly some
problems in quality, only the enterprises that are
in less demanding on the quality will accept the
powder. In Nanning, the cassava starch price is
currently maintained at CNY 3700-3750 per t (tax
included), there are gaps in the price, but there
are also great advantages in the quality.
In the big situation of prices up-going, it is very
difficult to expect these powders to be sold at a
low price. Learned form Sun, the Secretary of
China Starch Association, the domestic demand
for cassava starch is in exponential growth. The
domestic cassava starch is failed to meet the
shortfall to a large extent. Overall, output
reduction is not the biggest factor of the cassava
starch price; the demands are the main cause of
the high price. (frbiz.com 12 November 2010)
Continuation of known environmental needs of bio-plastics
At present, the production of Bio-plastic is
mainly concentrated in North America, Western
Europe, Japan and other developed countries and
regions. Freedonia Group predicts that production
capacity of China's bio-plastic products will
exceed 10 mio t each year by 2013. Brazil will
become the world's major producer of bio-plastics
by 2018. By 2025, Asia will be the leader in bio-
plastics market, will cover at least 32% of
worldwide market, then Europe by 31%, America
by 28%. Domestic corporation will be forced to
work for overseas company.
According to the introduction of one Secretary
General, Wong yunxuan, from the China Plastic
Association degradation committee, there are two
reasons for the status of working for foreign
corporations: First, Developed countries have
strict regulation for recycling and treatment for
abandoned traditional plastic. Under the influence
of environmental awareness and lawful sense
more consumers were willing to accept bio-green
plastic, so the market is growing, enterprises have
more profit. Second, because the high cost for
most of bio-plastic products, high price, lack of
promotion under China's policy environment, It is
difficult to promote Bio-plastic in China. Due to
the differences between international and
domestic markets, domestic companies are
willing to product on aboard.
Another important factor is that only a few
companies such as Nature Works in America,
BASF in Germany besides China can
industrialized product bio-plastics. At present,
Although some foreign companies are planning to
increase the capacity of new production, but in the
past few years, production in Occident and Japan
increased very slowly. Also there is only a single
species in most countries, Such as the United
States, Germany, Japan, Italy etc.
(Continued on next page)
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Continuation of known environmental needs of bio-plastics (Contd)
Contrast against developed countries from the
new century, China's domestic bio-plastics
industry has developed rapidly. By 2007,
production of bio-plastic reached 80kt; by 2009
surge to 150kt, nearly doubled in two years. Total
output of bio-plastics reached 250kt in 2010.
Currently, there are more than 20 enterprises
could product on large-scale in China. the
production on the scale increase from a few
thousand tons to million tons.
Also more than twenty universities and institutes
specialized in researching and developing in this
field. Meanwhile, china could product most
Bio-plastic species in the worldwide, some
species, such as glycolic acid acid copolyesters
(PHBV), poly butylene succinate (PBS),
carbon-dioxide, propylene oxide copolymer
(PPC) and are unique in China. Due to above
reasons, all of the Bio-plastic were produced into
finished good directly, and then almost all of the
product were exported to other countries.
The demand of the low cost petroleum-based
plastic has become the key to develop the
reproducible material. Many reproducible
chemicals company indicated that the cost of
reproducible chemicals, especially Bio-plastic,
must low than traditional plastic in order to
survive in market in Bio-chemicals eastern
summit,which held in Boston in Massachusetts of
the United States in September, The official of
Europe Bio-plastics Association said the
petroleum-based plastics are still relatively cheap,
but the bio-plastic products will be applied in
more fields in the next few years. The price of
bio-plastics will catch up with the conventional
plastics.
(Continued in next column)
Continuation of known environmental needs of bio-plastics (Contd)
Bio-plastics have been achieved extraordinary
effects in some special applications field. The
demand is increasing for bio-plastics based on the
demand of reproducible and the Eco-friendly
goods. Meanwhile, due to the price of crude oil
and natural gas continued to rise, bio-plastics
become more competitive than petroleum based
resins. the polylactic acid (PLA), starch-based
polymer and polyhydroxy alkanoate (PHAs) are 3
main kinds of bio-plastic products.
In the nature, abundant bio-based raw materials
such as glucose, fructose, xylose, arabinose,
lactose, sucrose, starch etc, can produce
Bio-plastic, such as PLA, PHA and so on.
Because the source of bio-plastics is from plants
rather than fossil fuels, it saves a lot of energy, in
addition, the entire production process reduced
CO2 emissions.
Western Europe is the world's largest regional,
which has the most demand for bio-plastics, the
demand in 2008 cover around 40% of the
worldwide. Strong demand growth of Japan, the
Asia-Pacific region will become the world's
fastest-growing region, it will share the market
with Western Europe by 2013, the other region of
the world, such as Latin America and Eastern
Europe the demand of bio-plastics will continue
to grow.
At present, most of bio-plastic products were
exported to other countries, more than 90% of the
raw materials and products are exported to
overseas markets. A few were sold in the
domestic market, it is estimated that in 2009
domestic consumption of bio-plastics is less than
1 mio t. Domestic bio-plastics corporation were
forced to work abroad. (3158.com 11 November
2010)
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November 17, Dalian corn fell sharply Wednesday, subjecting to suppress from the
policy side and the financing side, and dragged by
the surrounding market, the price of Dalian corn
fell sharply, the main 1109 contracts closed at
CNY 2,288 in the limit, down CNY 74. For the
traders worried about the sluggish demand, the
price of CBOT corn future contract in December
is 525.75 cents per bushel, down 0.75 cents.
In the spot market, traders‘ purchase price of corn
in Jilin Yumu is CNY 1480 per t, with water 30%.
In rural areas of Heilongjiang, purchase price is
CNY 1380 per t, with water 30%. In Zaozhuang
of Shandong, purchase price of new corn is
CNY 1960 per t, with water 15%.
In Linyi of Shandong, eel feed manufacturers‘
purchase price of wind sifting corn CNY 2,120
per t, with water 15%. In Jing County, Hebei,
traders‘ purchase price of new corn is CNY 1920
per t, with water 15%. In Ningbo, of, the site price
of new corn from Northeastern China is
CNY 2240 per t, with water 15%, up CNY 20
per t. In Henan Anyang, listed purchase price of
new corn (net pay) is CNY 2 000 per t, with 15%
water.
In Chengdu, the sale price of new corn from
Northeastern China is CNY 2260 per t, with water
15%. In Hefei, site price of corn from
Heilongjiang is CNY 2200 per t, with water 15%,
up CNY 40 per t. In Dalian, price of corn
trimming is CNY 2080-2100 per t. In Guangdong
Harbour, the price of high-quality aged corn is
CNY 2220-2240 per t. In Qingdao, eel feed
manufacturers‘ purchase price of new corn is
CNY 2080-2090 per t. In Shanghai, the latest
arrival price of the new corn from Northeastern
China is about CNY 2180 per t or above, keeping
unchanged.
(Continued in next column)
November 17, Dalian corn fell sharply (Contd)
Operating Suggestions: Due to the continuous
decline of the surrounding market, the price
control measures on agricultural products to be
released by the government and the severe
punishment on the speculation and hoarding
behavior of agricultural products (especially
cotton and maize), the market panic appears again
and price of Dalian corn will further slide.
Right now, the price in the spot market continues
to rise, which will limit the downward adjustment
of corn in Dalian. In medium and long term, corn
market fundamentals remain strong. But in
short-term, dragging by the surrounding
environment, along with changes in policy, the
market may oscillate to lower. The proposed
operation is to sell when the market rallies in
short-term, and pay attention to the downside
2250 line support. (82158.com 18 November
2010)
Price trend of the recent situation in Jilin Maize In Jilin Province, the climatic changes has
resulted in fluctuations in maize price. Huanglong
and COFCO Biochemical Gongzhuling company
listing price of corn is still CNY 1 800 per t, only
to maintain the volume on the acquisition of
hundreds of tons. In Jilin area, corn prices are
rising. The local price of corn deep processing
enterprises are as follows: Medium CNY 0.76 per
kg, about 30% water, the theoretical calculation of
the normal parity dry off the cost of CNY 1920
per t, the acquisition of the amount of less than
normal.
Jilin Dehui region's new corn prices remain
strong, the local price of corn deep processing
enterprises to medium CNY 0.91-0.93 per kg,
between about 14% water, the purchase price
remained firm, the acquisition of the amount of
less than normal. (Continued on next page)
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Price trend of the recent situation in Jilin Maize (Contd)
Jilin Nongan Maize offer stable. Offer individual
traders in the CNY 0.75-0.76 per kg, between
25-27% moisture, farmers reluctant sellers
psychological presence, coupled with the recent
rain and snow weather and transportation, the
acquisition of less. In this case, the new season of
maize in Jilin is expected to continue to delay the
market. (82158.com 17 November 2010)
Bio-plastic manufacturers industrial R&D Speed News of the new network in the world states that
the use of bio-plastics is still accounted for only
1% of 230 mio t. But with regard to raw materials
for renewable bio-chemicals, new plastics will
soon be universal. Some biodegradable plastics
such as polyethylene lactic acid (PLA), poly-
hydroxy alkyl esters (PHA) and starch-based
blends are used by consumer goods, packaging
and food service industry for more applications.
Analysts pointed out that the demand is increasing
for consumer goods on bio-based plastic products,
these new demands are prompting manufacturers
to develop the existing production from renewable
raw materials, plastic or some new technology.
Some renewable chemicals company has targeted
up to 1.3 trillion dollars (about 933 bio euros) in
the global polymer market and raw materials to be
used are succinic acid, acrylic acid, levulinic acid,
sorbitol, ethylene, ethylene glycol, butanediol,
adipic acid, furan, propylene glycol and glycerol.
Netherlands-based specialty chemicals company
DSM and starch derivatives producer Roquette of
France has planned to set up various joint venture
owned 50% of Reverdia company, from the PBS
production of bio-based succinic acid derivatives.
(Continued in next column)
Bio-plastic manufacturers industrial R&D Speed(Contd) Lower cost of petroleum-based plastic substitutes,
demand has become the key to the development
of renewable raw materials. Many renewable
chemicals company in the United States in
September, held in Boston, Massachusetts,
bio-based chemicals that the eastern summit, to
survive in the market, renewable chemicals,
particularly in the cost of plastic must be less than
traditional plastic.
European Bioplastics Association, said the
conventional petroleum based plastics are still
relatively cheap, but the bio-plastics in the next
few years will be applied to more sectors. In the
field of consumer electronics and automotive,
bio-plastics huge potential applications, if some of
the bottlenecks can be a breakthrough product is
the price of bioplastics and conventional plastics
can be achieved a considerable level.
Durable plastic downstream users are waiting for
the new industrialization of renewable-based
plastic. After years of development, the cost of
biodegradable plastics industry is constantly
reduced. U.S. manufacturer NatureWorks PLA
resin production company Ingeo has already
reached a certain size, cost and performance can
be comparable with petroleum-based plastics.
(ccin.com.cn 3 November 2010)
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Vietnam The situation of production and consumption of cassava in Vietnam and the world
In Vietnam, cassava has quickly shifted from food
crops to cash crops with high yield and cassava
production increased rapidly. In 2008, China had
produced a million tonnes of ethanol and
imported cassava from neighboring countries.
In Thailand, many ethanol plants using cassava
was built in 2008. Indonesia plans to use cassava
to produce ethanol mixed into gasoline at the rate
of 5% mandatory starting in 2010. Countries such
as Laos, Papua New Guinea, the island Phigi,
Nigeria, Colombia and Uganda are also working
on testing for ethanol production.
Area, yield and production of cassava in the world
has steadily increased from 1995 to present. In
2008, world cassava production reached
238.45 mio t of fresh compared to 223.75 mio t in
2007 and 161.79 mio t in 1995. Most cassava
producing countries are Nigeria, followed by
Thailand and Indonesia. Countries with the
highest yield of cassava India (31.43 t per ha),
followed by Thailand (21.09 t per ha), Vietnam
ranks tenth on cassava production in the world
(9.38 mio t).
In Vietnam, cassava is cultivated in most
provinces of the agro-ecological zones. Most
cassava area in the northern and central coast
(168.8 thousand hectares). Highlands is the largest
cassava producing areas of the country Monday.
In 2008, the floor area of the Highlands to reach
150 thousand ha, average yield of 15.7 t per
hectare production of 2.35 mio t, lower than the
South East (23.74 t per ha and to some 69 mio t).
(Continued in next column)
The situation of production and
consumption of cassava in Vietnam
and the world (Contd)
Seven months of the year, the country exported
2.66 mio t of dried cassava (manioc alcohol) and
starch turnover reached 406 mio, up 4.4 times in
volume, 2.8 times the turnover over the same
period last year. With the above results, the
Ministry of Industry and Commerce has ranked
cassava in major export commodities in 2009.
When the State program operated NLSH, ethanol
plants will consume a huge amount of cassava.
Expected in 2012, ethanol production will
consume 16% of cassava production in 2015
accounted for 35%, 41% in 2020, up 48% in
2025.
The calculations are based on projected gasoline
demand by 8.5% per annum in 2012 to apply E5,
E10 application in 2015, cassava production
increased 5% per year. The formation and
development of the industry structure changed
NLSH market of Vietnam in ways that are
beneficial to agriculture and rural aspects:
With more than 50% of production is exported,
they are put into ethanol production, then put
petrol, oil consumption in the domestic market,
cassava will be the input and the first stage of the
value chain NLSH market, exist parallel to the gas
market, oil for domestic needs. In the value chain
to new markets, the cassava is used as raw
materials for ethanol processing plants, which are
then mixed, and retail distribution to consumers in
the country.
Thus, cassava products will no longer depend on
supply and demand and price fluctuations of
foreign markets. Instead of agricultural products
will enter the market of domestic energy
consumption and steady growth every year.
(Continued on next page)
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The situation of production and
consumption of cassava in Vietnam
and the world (Contd)
The governments of Thailand and the Philippines
impact on agricultural production through the
operating cost formula NLSH (Biofuels) market
petroleum to stabilize the prices of raw materials
from agriculture (sugar cane price and cassava).
This will be an important tool and easy to
implement State policies to support agriculture
and rural farmers.
NLSH development will increase investment in
regional and remote areas of rural Vietnam.
Dependence on raw materials from plants NLSH
will motivate building close links between
factories and farmers, promoting the interests of
both parties.
While implementing the ethanol project, the
National Oil and Gas Corporation of Vietnam has
advocated the development of stable material on
the basis of support for farmers to ensure stable
income.
Ministry of Agriculture and Rural Development
Conference sustainable development of cassava
(July 12-2009) has also implemented the model
direct link between factories and farmers NLSH
have the support of governments and scientists
agricultural education.
Thus, ethanol can see the program as an
opportunity to realize the objectives of
agricultural development, rural livelihood and
rural poor, improve the added value of
agricultural products and strengthen links Union
workers and farmers. (cropsforbiofuel.ning.com
12 November 2010)
Increase cassava production for export: Not necessarily happy
Sources from the Ministry of Trade and Industry
said that exports of cassava and cassava starch to
the water market in 10 months of 2010 reached
418 mio dollars to 65kt, up 78% on prices
compared with the same period last year.
However, these types of cassava exports fell 53%.
Director of import and export, said Phan Van
Chinh, now the price of Vietnam's cassava exports
depend heavily on fluctuations of world market
prices. Therefore the growth due to price
fluctuations as in the recent past is not the
direction of sustainable development.
In 2009, Vietnam has exported 3.3 mio t, worth
574 mio dollars. Ten months of this year wearing
the export situation is also achieved 418 mio with
65kt. In which more than 90% of production is
exported to China, with export value is
completely dependent on foreign countries. This
result is because the Chinese market is gradually
restored. This is a very significant figure in the
context of difficult market today.
According to estimates by the Ministry of Trade
and Industry, with a total area of about
510 000 ha, average yield of 18.7 t per hectare,
this year's total national cassava production is
estimated at about 8.1 to 8.6 mio t.
(Continued on next page)
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Increase cassava production for export: Not necessarily happy (Contd)
Currently, Vietnam is ranked tenth in the world
for production of cassava (7.71 mio t). According
to Nguyen Tri Ngoc, Director of Crop Production
Ministry of Agriculture and Rural Development
said: Cassava is a crop that agriculture was not an
encouraging development, but the cassava
growing area for several years now increasing at
an alarming rate.
In 2005, the cassava growing area of the country
at 270 000 ha, has now soared to nearly 2 times –
510 000 ha. Calculated, to exceed 135 000 ha.
compared with cassava development planning. In
particular, the highest increase with 16 000 ha
Gia Lai, Dak Lak near 6 000 ha, Kon Tum on
5 000 ha. In essence, this growth is not
encouraging.
Vietnam now has about 60 processing plants
cassava industrial scale (capacity 3.8 mio t of
fresh cassava tubers). Each year, Vietnam now
produces about 800 to 1 200kt of cassava, of
which over 70% of exports and nearly 30% of
domestic consumption.
Cassava export products of Vietnam are mainly
starch, cassava and cassava flour. The main
markets are China, Taiwan, Japan, Singapore,
South Korea. Investment processing plant bio-
ethanol is a large potential user. (tamnhin.net 4
November 2010)
Brazil Plastic of maize, sugar cane and seaweed
The demand for biodegradable plastics is
growming in brazil. The country imports 500 t per
year of PLA- an extracted polyester of the starch
of the maize that serves of base for the production
of the bioplastics. It is considered as world-wide
giants of the sector.
The Cereplast, that has headquarters in the United
States and produces 48kt of PLA per year, studies
to install a plant in Brazil, of eye in the increasing
demand for the product, that is used to make
packings, staple fibres of clothes and carpetings
and dismissable material, among others
applications. The PLA emits 1.3 kilo of carbonic
gas for each kilo of produced plastic, against
3.2 kilos produced for the plastic of PET bottles,
according to studies carried through in the
exterior.
Reinaldo Azevedo, representative of the Cereplast
in the Country, guarantees that the company is
intent to the Brazilian demand and to the maize
production, sugar cane-of-sugar, and soy of the
Country and also is talking with seaweed
producers of Ubatuba, for possible use of this raw
material. (biopol.free.fr 10 November 2010)
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Brazil Oil and Novozymes Join Together to Develop Cellulosic Ethanol Petrobras and Novozymes today reached an
agreement to jointly develop a new technology
path of producing cellulosic ethanol based on
bagasse. The agreement includes the exploitation
of enzymes and enzymatic
hydrolysis of bagasse cellulose ethanol production
process.
Brazil's sugar cane cultivation and processing is
well developed, with rich bagasse resources,
which provides a sufficient supply of raw
materials for the development of cellulosic
ethanol industry. As the world's largest sugarcane
producer, Brazil produced 600 mio t molasses per
year from sugar cane, can be converted to
27 bio liters of ethanol (the equivalent of
70 mio gallons). It is predicted that the maturation
of cellulosic ethanol industry will enable Brazil to
increase 40% ethanol yield without adding the
sugarcane planting area.
Novozymes has been engaged in the enzymatic
hydrolysis of bagasse-based ethanol. Enzyme can
break down plant fibers, including corn stalks,
wheat straw, wood chips, bagasse, etc., the sugar
broken down can be fermented into ethanol. As
the world's largest enzymes manufacturer,
Novozymes R&D for the production of cellulosic
ethanol enzyme products since the year 2 000, has
twice obtained the total amount of up to
2 930 mio in project development assistance of
U.S. Department of Energy.
On the strength of the technology reserves in the
field of enzyme developing, Novozymes
successfully decreased the cost of the required
enzyme of producing cellulosic ethanol by about
80% for in the past 2 years, to the current 50 cents
per gallon.
(Continued in next column)
Brazil Oil and Novozymes Join Together to Develop Cellulosic Ethanol (Contd)
Novozymes is now cooperating with the world
biofuels industry leaders to accelerate the process
of cellulosic ethanol production technology
development and implementation, and to make a
further reduction of the cost of enzymes. Since
2006, Petrobras began to investigate the process
integration of ethanol out of bagasse based on the
biochemical methods. (finance.ifeng.com 15
october 2010)
Brazil's ethanol industry is driving in the fast lane
This year, because of the climate change, the
sugar price is rising. As well as the number of
flexible fuel vehicles (FFV) in which the high
percentage of ethanol blended fuels can be used
continues to increase, Brazil's ethanol industry,
the world's largest ethanol exporter, is walking out
of the shadow of the financial crisis and
accelerating the pace of cooperation and
acquisitions. A number of alcohol as raw
materials to produce green polyethylene project is
also underway.
Analysts said because of the boost in sugar price,
the price of ethanol is becoming higher and
higher. Earlier this year, it hit a 30-year high. The
profits of ethanol refinery factories rebounded
sharply. This year, the abnormal dry weather
continued in the main producing areas of
sugarcane in southern Brazil, which caused
serious damage to the production of sugar cane.
Therefore, the price of ethanol is rising.
According to data from the Brazilian Sugarcane
Industry Association (UNICA), from April to the
middle of September this year, the sugar export
revenues of Brazil reached USD 6.8 bio, an
increase of 64% comparing with that of previous
year.
(Continued on next page)
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Brazil's ethanol industry is driving in the fast lane (Contd)
Cosan, the largest sugar and ethanol producer in
Brazil, estimates that the global surplus of sugar
from 2010 to 2011 is 4 mio t, well below 7 mio t
forecasted by the company in the beginning of
this year. Cosan claims that, because supply is
tight, the international sugar prices will remain
high, to be higher than the 30 cents per pound.
According to UNICA's latest statistics, due to
high sugar prices and growing ethanol demand,
the demand for Brazilian ethanol kept some
growth in the stability this year. From April to
mid-September, the demand for ethanol reached
11 bio liters- 2 bio liters per month, increased by
25% comparing with 1.6 mio liters per month in
2008. The profits of the companies have increased
significantly.
Accelerating the pace of integration
Market participants pointed out that, influenced
by the financial crisis before, a lot of small and
medium-sized enterprises in ethanol production
and distribution in Brazil closed down. After this
round of rising prices, the reshuffle pace of
Brazil's ethanol industry will be accelerated. In
the coming years, the business model of Brazil's
ethanol industry will be changed from the family
group into a multinational-holding corporation.
According to the incomplete statistics from the
information research firm Global Futures FO
Licht, in 2009 alone, there were 60 restructuring
in Brazilian ethanol companies, involving 100
sugarcane processing plants.
Pliny, the president of Brazil's ethanol and sugar
consulting firm Datagro, estimates that in the next
5 years, the top 10 domestic ethanol groups in
Brazil's will hold 45% of 600 mio t of sugarcane
market.
(Continued in next column)
Brazil's ethanol industry is driving in the fast lane (Contd)
Itau BBA, a investment bank in Brazil, also
forecasted earlier this year that, by 2015, the top 5
will account for 40% of the national total
production. While in 2005 and 2010, the top 5
ethanol groups in Brazil only held 12% and 27%
market share. After taking over Santelisa, which
is a native company of Brazil, the French trade
giant Louis Dreyfus became Brazil's
second-largest ethanol group. While the largest
one is the energy and chemical giant Shell, after
announcing earlier this year, financing
USD 12 bio to cooperate with Cosan. French
sugar group Tereos as well as Bunge, a leading
enterprise from U.S, are also the ranks of large-
scale ethanol producers in Brazil.
Petrobras also seized the opportunities to
accelerate the expansion in the bio-ethanol
industry. In December 2009, the company spent
84 million USD to acquire 40.4% of the share of
Total Agroindustria Canavieira. Most recently, it
signed a cooperation agreement with another
ethanol company.
Currently, the ethanol production capacity of
Petrobras is close to 900 million liters per year. In
addition, Petrobras is planning to cooperate with
the Japanese companies Mitsui Group and
Brazilian Calmage Correa group, to spend
USD 1.1 bio to build an ethanol transportation
pipeline system, which is 542 km long, with the
transportation capacity reaching 129 bio liters of
ethanol per year. According to the latest
investment plan, Petrobras also plans to invest
3.5 bio in the next four years in the field of
bio-fuels. By 2014, its ethanol production
capacity will be tripled, to become the main
exporters of ethanol in Brazil.
47% of Brazil's energy comes from renewable
energy sources, of which 18% is from ethanol
produced by sugarcane.
(Continued on next page)
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Brazil's ethanol industry is driving in the fast lane (Contd)
Major petrochemical companies are producing
polyolefins by using ethanol from sugarcane as
raw material. In the end of September 2010, the
green ethylene plant of Brazil's largest
petrochemical company Braskem put into
production, which produces 200kt per year and is
the world's first ethylene production unit using
ethanol from sugarcane as the raw material.
Braskem has also decided to build a
polypropylene unit with the production capacity
of 10 mio t per year by using ethanol from
sugarcane, which will be put into operation in
2013.
Dow Chemical Company, Solvay in Belgium and
Brazil Unigel have expressed their interest in
Brazilian green chemical projects using ethanol as
an alternative raw materials. Solvay plans to use
ethanol as raw materials to produce polyvinyl
chloride, and Dow Chemical plans to build a
green polyethylene plant with the production
capacity 350kt per year. (ccin.com.cn 12
November 2010)
Thailand Rice harvest could be down 20%
This year's rice production is expected to drop by
about 20% due to the massive flooding in the
country, Thai Farmers Association president
Prasit Boonchoey said on Thursday. Mr Prasit
said the country usually produces about 10 mio t
of rice paddy per year. The extensive flood
damage to rice fields is likely to cut the crop by
about 20%.
The drop in production would not cause shortages
of rice, either for domestic consumption or export,
because the country still has a considerable
amount of rice in stock. (Continued in next
column)
Rice harvest could be down 20% (Contd)
Mr Prasit said rice prices are still in a favourable
direction. The price of paddy is currently
9 000 baht per t, up from 8 500 baht, due to
concerns over production both inside the country
and abroad, since other rice-producing countries
including Vietnam, India and Pakistan have also
been hit by natural disasters.
Therefore, the price may rise to as much as
10 000 baht per t, but not as high as 15 000 baht
as some people may hope, he said.
Mr Prasit said the government's plan to provide
financial relief for flood-hit farmers at the rate of
2,098 baht per rai was good, but authorities
should watch out for people trying to make
dishonest gains from this measure.
(thairiceexporters.or.th 11 November 2010)
First price index for rice industry launched
Kasikorn Research Centre has launched the
country‘s first rice index to reflect prevailing
market conditions. The KR Price Index: Rice is a
weighted calculation based on rice varieties,
incorporating prices through the entire supply
chain including growers, mills and exports, and
comparative prices among rivals, including
Vietnam and the United States.
KResearch manager Paka-on Tipayatanadaja said
yesterday that 2005 was the index‘s base year.
Clearer world and domestic rice situations
through these indices will allow the government
to formulate its rice stock policy better, and
millers and farmers to have clearer pictures of
business and planting conditions, said Wiwan
Tharahirunchote, KResearch‘s Executive
Chairman.
(Continued on next page)
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First price index for rice industry launched (Contd)
The indices for the selling price of growers and
exports were at 193.55 and 143.79 in October, up
28% and 12.5%, respectively, from the same
period last year. The rises came from limited
world rice supplies and rising demand for rice
after crop damages, due to volatile weather
conditions, in the world‘s two major rice
producers, Pakistan and China, Paka-on said. The
index for the wholesale price at mills also rose
12.4% to 171.22 in October, because of higher
purchases by exporters.
In October, Vietnam‘s rice was priced higher than
Thailand‘s after it increased minimum export
prices by three times this year, Paka-on said.
The world and domestic rice prices could rise
further during the rest of this year thanks to rising
global demand and falling world production, due
to fluctuating weather conditions, she said.
Prices of the country‘s fragrant and glutinous rice
could enjoy their upward trend throughout next
year, while the white-rice price could continue to
rise only in the first quarter, she said.
(thairiceexporters.or.th 11 November 2010)
Taiwan
Researchers develop biodegradable seedling pot
A Tatung University research team in partnership
with local Grace Biotech Corp. has developed a
seedling pot made out of 100% biodegradable
plastic that breaks down completely within six
months of being buried in the ground. The
biodegradable plastic material made primarily out
of corn starch has already received environmental
certification in the European Union, Japan and the
United States.
(Continued in next column)
Researchers develop biodegradable seedling pot (Contd)
Bags made with the plastic material, developed by
a team led by bioengineering professor C. Will
Chen, have already been sold abroad for the past 5
years.
A notable feature of the biodegradable seedling
pot is that the material leaves behind no toxic
residue and provides nutrients to the seedling
when it breaks down, thereby increasing the
germination rate. Furthermore, the pots can be
tailor made to match the growth period of specific
plants. Patents applications for the pot have been
filed in several countries, including the
United States and Japan, and sales to Europe
began in September.
The biodegradable pot is priced at 1.5 times that
of conventional seedling pots, but costs are saved
as seedlings do not have to be transplanted into
new pots as with conventional pots. Also, the pots
are planted in the ground with the seedlings,
thereby cutting manpower costs and reducing the
chance of damage to the seedlings. (SB)
(taiwantoday.tw 24 November 2010)
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Czech Republic
Starch from genetically-modified potatoes will be produced in the Czech Republic
According to Czech Radio, Czech Republic was
the first in the world which started to produce
genetically-modified starch. Starch factory in the
Czech Godishkove is the the world's first
company to produce starch from genetically
modified potatoes.
Such starches are not allowed in food, but perhaps
its use in the manufacture of glue, paper and
construction, says the radio station. The European
Commission in March 2010, allowed to grow
genetically modified potatoes in the EU. Prior to
this, in Europe, only corn was allowed of all
genetically modified foods. (news.rambler.ru 26
November 2010).
South Korea South Korea has purchased 110kt of maize
According to market operators, a leading
manufacturer of feed from the South Korean
company Nonghyup Feed, the last tender
contracted to import 110kt of corn arbitrary origin
with delivery between 20 and 31 March 2011.
The first 55 t of goods to the importer has
purchased the company ADM costs USD 1.95 per
bushel for the March futures on the CBOT.
An equivalent batch of goods worth USD 1.94
per bushel for the March futures on the CBOT
provided STX Corp. Recall that NOFI also
planned to purchase a lot of grain to supply up to
5 April, but all proposals for this tender was
rejected. (apk-inform.com 8 November 2010)