GIRACT Starch Industry Overview Apprril /May 2011
Starch Italics
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Starch Italics Starch Industry Overview Apr/May 2011 TABLE OF CONTENTS
Crops & Grains
Bio-Fuels
p.1
p.14
p.2
S. Korea to set up global grain firm Demand for corn falls Cargill's Truvia Now no.2 Sugar Substitute
Starch & Derivatives p.3
p.4
p.5
p.6
p.7
p.8 p.9
Iowa companies named in ‗corn sugar‘ lawsuit Cargill plans to convert corn wet mill into bio-refinery campus China levy anti-subsidy duties on EU potato starch Vitamins may hitch a protected ride on corn starch Xylitol for Antimicrobial, Cosmetic Preservative Ethanol merits federal support Strategic Review of Corn Starch Industry &Markets-Starch Derivatives, Sweeteners & Co Products Potato research tackles starch content and pests Petrobras says gasoline, ethanol prices to fall Fungus process makes ethanol production more efficient Composite Technical Services Introduces Polycard XFN Bio-Based Polyols ADM expands South American operations
p.16 p.17 p.18 p.19 p.20
Bio-Plastics p.21
p.22
p.11 p.12 p.13
DSM, Roquette to build commercial-scale succinic acid project in Italy ADM Starts bio propylene glycol ADM to acquire Praire Pride Soy crush and bio diesel plants Tate and Lyle, Electrocomponents DuPont building up biotech
Bakery waste turned into alternative fuel source Bioplastics based on potato starch not necessarily compostable Plastics from algae not economic says analyst New Bioplastic Features Higher HDT, Impact
Regional Language News China p.24
Company News p.10
Cargill plans to convert corn wet mill into biorefinery campus China Set to Increase Use of Biofuels Biofuels can provide up to 27% of world ransportation fuel by 2050 Great Falls ethanol plant clears financing Hurdle Next generation of corn products Entering market Company eyes biofuel potential Luverne ethanol plant to highlight marketexpanding technology Renewable Energy In the Pond
p.25
Food control overweight corn for deep processing enterprises: "strictly limited" purchase Policy control: a rebound inhibition of deep processing of corn consumption Decrease of corn starch and potato starch market price: inflation continued to influence April 26, 2011 corn pice in Heze, Shandong
(Table of Contents Continued on next page)
Starch Italics Starch Industry Overview Apr/May 2011 TABLE OF CONTENTS
GLOSSARY
Regional Language News (Contd) p.28
Russia p.29 p.30 p.31
Bioethanol production in Kyrgyzstan Biofuels aggravates hunger Ukrainian distilleries stimulate the production of biofuels Russia starts production of ethanol in the next two years
Indonesia p.31
The Brazilian government wants Petrobras controls ethanol prices Ethanol demand falls for 1st time in 11 years Steady supply of corn price increases sufficient demand is not easy
Portuguese p.34
Minimum proportion of ethanol in gasoline falls
‗00 000 litres per day ‗000 000 Merger &Acquisition per annum tons tons per annum tons per day tons per hour tons per month
pa t tpa tpd tph tpm
PTPN X bioethanol plant operation schedule 2012
Spanish p.32
‗000 000 000 cases per day ‗0 000 000 Joint Venture ‗000 ‗000 tons kilo litres per
bio cpd crore JV k kt klpd day lakh lpd mio M&A
2010 Sugarcane, cassava, cocoon production ranked first in the country
GIRACT Global Starch and Starch Derivatives study Giract has just published new multiclient
research
into
global
starch
supply, examining in particular the impact
of
the
recent
economic
downturn on the industry. Details on the following page.
G IRACT
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
SUBSCRIPTION
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Crops & Grains
Starch Italics Starch Industry Overview
S. Korea to set up global grain firm South Korea will officially launch an international grain procurement company next week to ensure a steady supply of staple farm products, a state-run farm trade company said. The Korea Agro Fisheries Trade Corporation has been pushing for a new company to better insulate the country from sudden fluctuations in grain prices that can adversely affect domestic production and inflation. The public corporation said Samsung C&T Corp., Hanjin Shipping Co. and STX will join as partners and invest in the company on April 29. The company is to be set up with an initial capital of USD 2.5 mio. The agro-fisheries corporation will take charge of overall management of the procurement company to be set up in Chicago, with Samsung focusing on marketing. STX and Hanjin are to handle transportation of grain products. Company executives stressed that the new company does not plan to compete with such major grain handlers as Cargill and ADM, but wants to look for unexplored niche markets. For 2011, the envisioned company will try to import around 10kt of beans and corn, with the numbers to go up to 4 mio t or roughly 30% of the country's grain requirements by 2015, the state run firm said. South Korea needs an average of 20 mio t of grains, such as rice, wheat, corn and beans per year. It produces around 4-5 mio t of rice, which is sufficient to meet local demand, but must import most other products. (english.yonhapnews.co.kr April 22 2011)
Demand for corn falls The fast rise in food prices could begin to taper off later this year. The government‘s latest crop report estimates that the domestic supply of corn, which had been forecast to shrink, will grow in the months ahead The Department of Agriculture report suggested that the high price of corn is prompting ranchers and feed makers to use less and farmers to plant more. (Continued in next column)
Apr/May 2011
Demand for corn falls (Contd) Analysts expect these trends to push corn prices lower, and this could ultimately make everything from beef to cereal to soft drinks less expensive at the supermarket. Corn prices fell sharply last week as part of a broader sell-off in commodities They dropped 30 cents, the maximum allowed in one day, to USD 6.77/bushel. The USDA estimates corn exports will drop by about 50 mio bushels this summer. At the same time, farmers are planting more of it. By late August, when the harvest begins, the USDA expects the nation‘s corn supply to be 730 mio bushels, enough to satisfy demand for 20 days. That‘s an 8% increase from last month, when an 18-day supply was forecast by August. By 2012, the supply is forecast to grow to 900 mio bushels, enough for 24 days. A 30-day supply is the level considered healthy by most investors. The forecast doesn‘t guarantee an end to tight grain supplies. And it might not account for all the damage caused by a recent spate of extreme weather in South. Flooding along the Mississippi has already swamped more than 1.4 mio acres of corn, cotton, soybeans and rice in Tennessee and Arkansas alone, said a commodities analyst with Telvent DTN. Farmers will likely replant on the soggy soil, but they‘ll be behind their normal growing schedule. That could hurt yields. With Southern states bracing for yet more flooding the USDA projections for this year‘s crop could turn out to be too rosy, he said. Corn prices have more than doubled since last summer because demand from ethanol producers and overseas consumers has grown faster than supply and hit an all-time high of USD 7.76 on April 11. Prices have fallen steeply over the last week as investors sold off their contracts for commodities from oil to copper, worried that demand for metals, grains and fuel will stay weak (Continued on next page)
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Crops & Grains Starch & Derivatives
Starch Italics Starch Industry Overview
Demand for corn falls (Contd) The government report suggests the high prices are finally curbing demand, at least overseas. Corn exports are likely to decrease by about 3 mio bushels a week until August. The bulk of U.S. corn exports go to the overseas livestock industry, where it is used as a feed. With corn getting so expensive, ranchers and feed suppliers cut back their orders and are substituting cheaper wheat rations for corn. Corn is used to feed cattle, pigs and chickens and is a major ingredient in cereals and soft drinks. But it can take months for high crop prices to work their way to grocery-store shelves. That‘s because food processors and grocers are slow to pass on the savings to consumers after to food industry swallowed higher costs for months. (lubbockonline.com May 14 2011)
Cargill's Truvia Now no.2 Sugar Substitute Truvia, Cargill's no-calorie sweetener made from the stevia plant, recently surpassed Sweet 'N Low to become the no. 2 sugar substitute in the country, according to AC Nielsen. The two-year-old brand had a 12.8% share of tabletop sugar substitute sales in U.S. food/mass/drug retailers for the four weeks ending March 19, 2010 -- still small next to Splenda's approximately 60%, but growing by leaps and bounds. Truvia surpassed Equal's share of the substitutes market last year, and is now in more than 5 mio U.S. households, according to Nielsen.
Cargill's Truvia Now no.2 Sugar Substitute (Contd) The brand's tabletop sales grew by 79% last year, making it a USD 46 mio business, according to Zanna McFerson, assistant VP and business director for Truvia. Among natural sugar substitutes-a rapidly growing field of stevia-based sweeteners that includes PureVia made by a subsidiary of Equal parent Merisant (developed in partnership with PepsiCo) and Sun Crystals by Splenda maker McNeil Nutritionals, to name just two -- Truvia commands a 66% share, McFerson reports. Putting the market in perspective, Mintel International estimated that U.S. sales of stevia based sweeteners surpassed USD 95 mio in 2009, and could exceed USD 2 bio by the end of 2011. And the tabletop side of the balance sheet is the tip of the iceberg, compared with the market for sweeteners for prepackaged foods and beverages. A Freedonia Group sweetener analyst recently told Fast Company that market is worth trillions annually on a global basis. Cargill -- the USD 108 bio, privately held agri-giant that counts high-fructose corn syrup among its innumerable products and businesses - doesn't reveal its revenues from use of Truvia in foods and beverages. However, it reports that Truvia rebiana is now an ingredient in more than 30 food and beverage products, including Glaceau Vitaminwater Zero (2010 sales: USD 93 mio), Coca-Cola Sprite Green, YoCrunch 100 Calorie Packs, Kraft Crystal Light Pure (first-year sales for 2010: nearly USD 14 mio) and Minute Maid Pomegranate Tea. (mediapost.com April 04 2011)
(Continued in next column) Apr/May 2011
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Starch & Derivatives
Starch Italics Starch Industry Overview
Iowa companies named in ‘corn sugar’ lawsuit
Iowa companies named in ‘corn sugar’ lawsuit (Contd)
Several companies Integral to Iowa‘s agricultural economy have been named as defendants in a lawsuit brought by three sugar producers who are upset by a new marketing pitch for high-fructose corn syrup that labels the product as ―corn sugar.‖ Those companies named as defendants are Archer Daniels Midland Co. (ADM), Cargill Inc., Corn Products International Inc., Penford Products Co., Roquette America Inc., Tate & Lyle Ingredients Americas Inc. and the companies marketing and lobbying organization, the Corn Refiners Association Inc. The suit, which was filed in U.S. District Court in Los Angeles, was brought by the Western Sugar Cooperative, Michigan Sugar Co. and C&H Sugar Company Inc. and seeks to end the corn industry‘s marketing campaign, establish corrective marketing and collect damages for false advertising. The Corn Refiners Association petitioned the U.S. Food and Drug Administration to allow manufactures the option of using ―corn sugar‖ as an alternative name for high-fructose corn syrup — a moniker that has been tarnished in recent years as a link to obesity and other health complications. Independent research, according to the organization, indicated that despite the fact that high-fructose corn syrup and table sugar contain approximately the same amount of fructose, nearly 58% of respondents believed high-fructose corn syrup has more fructose than other table sugar. The term ‗corn sugar‘ succinctly and accurately describes what this natural ingredient is and where it comes from — corn,‖ said Audrae Erickson, president of the Corn Refiners Association, in a September 2010 press release about the government petition for the alternative name. (Continued in next column) Apr/May 2011
The Western Sugar Cooperative, which represents American sugar beet producers, argues that the stunt is false advertising and contends that if the public had a bad perception of the product, high fructose corn syrup, then the product should have been improved or benefits should have been better explained. But the battle over use of the word ―sugar‖ comes at a time when the general public is hearing the call of some nutritionists and health care experts who are warning that all such substances — beet and sugar cane sugar, both white and brown, and high-fructose corn syrup are ―toxins‖ or ―poisons.‖ But the controversy surrounding sugars has been ongoing for at least three decades, and is probably one of the primary reasons, other than manufacturers‘ cost, that high-fructose corn syrup became so prevalent. (iowaindependent.com May 03 2011)
Cargill plans to convert corn wet mill into bio-refinery campus After purchasing a corn wet mill facility outside of Fort Dodge in March, the Minneapolis-based company has since stated its hopes that the former Tate & Lyle facility shuttered two years ago can replicate a Cargill-owned bio-refinery campus in Blair. Now, after the Iowa Department of Economic Development has awarded Cargill with USD 2 mio in loans and incentives for the Fort Dodge facility that could produce up to 115 MM of ethanol, the state of Iowa should also be hopeful for some similarities. (Continued on next page)
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Starch & Derivatives
Starch Italics Starch Industry Overview
Cargill plans to convert corn wet mill into bio-refinery campus (Contd) Nicole Reichert, Senior Communications Counselor for Cargill Corn Milling North America said, ―The corn wet ethanol plant will provide the base load corn grind and we hope to grow additional bio-based businesses at the site in the coming years.‖ At the Blair facility, Cargill has partnered with a number of other industry leaders including Novozymes, Evonik and also a Cargill-owned bio-plastics facility, Natureworks LLC, to produce a wide range of products, from bio plastics to animal feed additives and catalysts. The ―over the fence‖ (OTF) experience Cargill has gained in Nebraska will also correlate to the success of the Fort Dodge facility, Reichert said. ―By providing a host of services, from starch or dextrose for the OTF fermentation carbohydrate source, to steam, to wastewater treatment,‖ she said, ―the OTF model has proven successful in allowing our plants to run more consistently at a larger scale and for the customer to enjoy the economies of scale, which come with being part of a shared manufacturing base.‖ The plan is to produce a wide range of products similar to those produced in Blair and Eddyville, but the new facility will not produce corn-based sweeteners or industrial starch. (ethanolproducer.com April 29 2011)
China levy anti-subsidy duties on EU potato starch EU Business reports that China would levy anti subsidy duties of up to 11.19% on imports of EU potato starch. The commerce ministry said that importers of potato starch will have to pay a deposit based on the alleged European Union subsidy rates of 7.7 to 11.19% of the import price. The statement also says that French starch producers Roquette and Avebe of the Netherlands are affected by the decision. (Continued in next column) Apr/May 2011
China levy anti-subsidy duties on EU potato starch (Contd) The taxes are to be imposed on top of anti dumping duties of 12.6 to 56.7% which the ministry started to levy from last month, remarks EU business. The European Commission announced its final ruling to impose countervailing tariffs, ranging from 4 to 12%, and anti-dumping duties of 8 to 35.1% on Chinese coated fine paper. The move "severely hurt the interests of Chinese enterprises," Chinese commerce ministry spokesman Yao Jian said. "China is strongly discontent with the EU's wrong decision and firmly opposes it", he said. EU-China trade has exploded in recent years, making the EU the top destination for Chinese exports, while China is the Europe's second biggest trade partner after the United States. (finchannel.com May 16 2011)
Vitamins may hitch a protected ride on corn starch Vitamins and medications may one day take rides on starch compounds, creating stable vitamin enriched ingredients and cheaper controlled-release drugs, according to Penn State food scientists. The technique may offer drug and food companies a less expensive, more eco-friendly alternative in creating, among other products, medications and food supplements. In a series of experiments, researchers formed pockets with corn starch and a fatty acid ester to carry oil soluble vitamins such as vitamin A and vitamin C, into the body, according to Gregory Ziegler, professor of food sciences. To form the pocket, the researchers, who released their findings in a recent issue of Carbohydrate Polymers, used a type of corn starch called high amylose maize starch. (Continued on next page)
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Starch & Derivatives
Starch Italics Starch Industry Overview
Vitamins may hitch a protected ride on corn starch (Contd)
Xylitol for Antimicrobial, Cosmetic Preservative (Contd)
When amylose comes into contact with fatty acids esters of vitamin A, for example, it creates a coil with an internal wall that repels water -hydrophobic -- and an exterior wall that attracts water -- hydrophilic. The oil-soluble molecules automatically move into the coil that encapsulates the medication or vitamin.
The amount of 1% of C-8 xylitol monoester was added to the lotion used in the challenge test, observing a rapid decline in the number of CFU/g in stages of evaluation after contamination of the product by all bacteria. The same occurs in relation to C. albicans, which showed a 90% reduction in the number of CFU/g. Regarding A.niger, a similar reduction was observed when pH value of the lotion was adjusted from 5.5 to 7.0. (insidecosmeceuticals.com May 11 2011)
The pharmaceutical industry uses other ingredients and techniques to create inclusion complexes, Ziegler, professor of food sciences, said. For example, cyclodextrin complexes -doughnuts of sugar molecules -- form in a similar way to deliver controlled-release substances, such as Ibuprofen. Ziegler said that because the cavity in starch is a different size than that of cyclodextrin, it can increase the size range of molecules that can be encapsulated (theindependent.com May 15 2011)
Xylitol for Antimicrobial, Cosmetic Preservative Xylitol—natural sugar alcohol derived from plants, fruits and vegetables—has antimicrobial activity and could be considered as an alternative preservative for cosmetic formulations. Researchers aimed to evaluate the antimicrobial effectiveness of C-8 xylitol monoester, for its use as a preservative in cosmetic formulations. The minimum inhibitory concentration (MIC) was determined by the broth macro dilution method, and the antimicrobial effectiveness of C-8 xylitol monoester was determined by using challenge test method The results obtained in the determination of MIC were between 1% and 1.25% for Staphylococcus aureus, Escherichia coli and Candida albicans and between 1% and 1.5% for Pseudomonas aeruginosa and Aspergillus niger. (Continued in next column) Apr/May 2011
Ethanol merits federal support Bob Vander Plaats, leader of an Iowa group that's pressing GOP presidential candidates to hew to conservative stands on social issues, was put on the spot on federal bio-fuel policy at a tea party news conference, after a leader of the movement took a swipe at ethanol subsidies. William Temple, who will be chairman of a tea party national convention this fall in Kansas City, Kan., said Congress was borrowing money in part to "buy up a third of the U.S. corn croporation for ethanol subsidies that spike food prices for the world's poor." He demanded that House Republicans force deep cuts in spending by resisting an increase in the debt limit. Vander Plaats said that the federal government should support all forms of domestic energy and that "ethanol is a piece of that."
The existing ethanol subsidy, 45 cents a gallon, is worth USD 1.7 bio to Iowa's industry at its current production capacity of 3.7 bio gallons/year. The state also benefits from the impact that subsidies and federal ethanol mandates on refiners have on corn and soybean prices. (desmoinesregister.com May 10 2011)
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Starch & Derivatives
Starch Italics Starch Industry Overview
Strategic Review of Corn Starch Industry & Markets - Starch Derivatives, Sweeteners & Co Products
Strategic Review of Corn Starch Industry&Markets Starch Derivatives, Sweeteners & Co-Products (Contd)
Several developed economies globally remain in recession and as the recession ends there will be great opportunities for starch processing industry especially to fulfill the demands of new developing economies in Asia, South America and Africa.
The rest of the world grows at 3-4%. Both the US and EU will have to compete for this growth in China, India, other regions the rest of the world grows at 3-4%. Both the US and EU will have to compete for this growth in China, India, other regions. There are only few starch processors left in the US and even ADM and Cargill are positioning themselves in EU and Asia.
During mid-2010, finally National Starch Food division found an acquirer in Corn Product International. National will be managed as an independent business unit. Recent demand on starch from ethanol has greatly enhanced the margins including HFCS. In the US, HFCS demands declined significantly in the past 3 years accounting for a drop of 11% due to concerns of obesity and glycemic trends among others. To compete, even the larger food processors are introducing new extensions to their lines claiming no fructose. From the company point of view with sugar shortage and historical high sugar prices, HFCS position will not erode further significantly as in the past 3 - 4 years. The total utilization of dried starch in the world in 2008 was 66.5 mio t (USDA, EU Commission). Companies estimate for 2010 is 68 mio t with annualized global growth of 2-3%. They previously estimated this would reach 70 mio t by 2010; they missed this mark by 2 mio t manly due to slowdown in US and EU.
National Starch remains a dominant specialty player in the US. Cassava in South East and South Asia and Central America will become more dominant starch commodity as more production technology is deployed. Cassava is 7.5 % of world starch. This figure will have been rising faster as China, India, South America and SE Asia continue to improve their production. Above values do not include corn utilization for dry corn ethanol which more than double of corn used for corn wet milled derivatives. US corn production for 2009 was 13.2 bio bushel a record vs. previous record of 13 bio bushels of 2007; it is due to increase demands for corn ethanol by the dry corn milling plants. Farmers planted 90 mio acres of corn compared to 79 mio acres during 2009. According to RFA (Renewable Fuel Association) and other reports, right now there are 178 corn ethanol plants in operations and 24 plants under construction and 10 expansions of current operations; these include 11 wet mill operations. (sbwire.com April 29 2011)
China had the biggest growth with 17.5 mio t production and has surpassed US with 13 mio t for dry starch and fermentation; not including sweeteners and alcohol. The US , EU and Japan has lower growth of 2% per year, EU at 2%, and Japan at 1-2%; in China and India the growth is strong as expected to be 4-5 % (Continued in next column) Apr/May 2011
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GIRACT 2nd Starch Forum Based on the success of our first Starch Forum, one of its kind in India, we propose to launch the 2nd Starch Forum to be held on October 3, 2011 in Mumbai. Details on the following page.
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FORUM, India (venue to be announced)
MUMBAI, OCTOBER 3, 2011 18h15 to 20h00
2 N D S TARCH F ORUM
I N D I A N S TA RC H & S TA RC H D E RI VA TI V E S I N DU S T RY
U NLEASHING
THE
P OT ENT IAL
The starch industry has faced numerous challenges and opportunities from other commodities like emulsifiers and fine chemicals. Based on the success of our first Starch Forum, one of its kind in India,
we aim to bring together a working group from the starch industry (end users, suppliers, distributors,
R&D institutions, Government organizations and analysts) with paper and pharma being one of the frontiers for growth in India, in order to:
offer an interactive forum for identifying common opportunities and threats in paper and pharma
discuss recent industry developments and their future, with particular focus on the potential for starch
obtain relevant views from eminent speakers from India and other major starch stake holders.
AGENDA 18h15
Registration/ Refreshments
18h25
Welcome and opening remarks R. Badrinath, Project Manager GIRACT Consultancies India Pvt Ltd
18h30
Introduction V. Krishnakumar, Managing Director GIRACT, Geneva, Switzerland
18h40
Sustainability in the supply of starch
19h05
Recent amendments in FSSAI on modified starch
19h30
Global trend in modified starch Industry
19h55
Summing up and Conclusion
20h00
Buffet dinner and Networking
Speaker from a leading Pharmaceutical/Paper company Speaker from FSSAI
Speaker from a leading European/Asian starch company
Note: It may be necessary for reasons beyond the control of the organisers to alter the content and/or timing of the agenda
GIRACT has more than 30 years experience in
conducting landmark studies for the global starch
and derivatives market and is recognized as a leading reference in this sector.
Its nine Starch Conferences held successfully in Geneva, Switzerland have brought together all the major companies in the industry.
GIRACT Geneva, Switzerland
Transnational Business Research & Consultancy
GIRACT CONSULTANCIES INDIA PRIVATE LIMITED
Tel: 91 422 420 4270
1420, Trichy Road, Coimbatore 641018
marketing@giract.com
Starch & Derivatives
Starch Italics Starch Industry Overview
Potato research tackles starch content and pests
Potato research tackles starch content and pests (Contd)
New research projects aim to modify potato starch content to improve nutritional benefits and to reduce the effect of the crop's major pathogenic threat, Sean Ottewell reports.
"By leading research on managing late blight, we will help protect the productivity of potato farmers worldwide."
World production of potatoes stands at about 320 mio t/year, but late blight remains an ongoing challenge. Caused by a fungus-like microbe, this disease is difficult and economically challenging to eradicate. It was largely responsible for the Irish potato famine of the mid-19th century. Today the cost of the disease is estimated at more than EUR 5 bio/year, easily enough to drive farmers out of business and increase food prices. Howard Judelson at the University of California, Riverside, has received a USD 9 mio (EUR 6.2 mio), five-year grant from the United States Department of Agriculture, National Institute of Food and Agriculture USDA-NIFA to research late blight and ensure a sustainable and long-term control of this devastating disease. "More than 40% of current crop production among the top ten food crops is lost to pests and diseases annually and that is a huge loss for farmers," said Cathie Woteki, USDA under secretary for research, education and economics. "USDA is funding this project to help agricultural producers win the future by ensuring our country can keep producing the food needed to meet rising global demand in a sustainable way." "This grant to Dr Judelson builds on historic UC Riverside strengths in research on this pathogen and is one more acknowledgement that UC Riverside is a leader in agricultural research," said Donald Cooksey, divisional dean for agriculture and natural resources in UCR's College of Natural and Agricultural Sciences. (Continued in next column) Apr/May 2011
The research project will focus on providing growers with better tools for managing the disease. (scientistlive.com May 25 2011)
Petrobras says gasoline, ethanol prices to fall Ethanol and gasoline prices in Brazil are likely to continue falling as the sugar harvest gets underway, a senior executive at the government run oil company, Petroleo Brasileiro SA (PBR, PETR4.BR), or Petrobras, said. Brazil's government mandates that one quarter of gasoline sold at the pump is ethanol, so declining prices for the cane-based product alleviate all fuel prices, said Jose Lima de Andrade Neto, head of Petrobras' distribution unit, BR Distribuidora. "Ethanol prices continue to fall and therefore the prospect is for gasoline prices to fall further," Lima said. Ethanol costs have fallen to between 1.25 and 1.30 Brazilian reais (USD 0.77 and USD 0.80)/liter, having peaked at BRL 2.70 in recent months, Lima told reporters on the sidelines of a conference He denied that prices had been cut because of any ministerial decision. Petrobras seeks to keep gasoline prices steady by ironing out international oil price volatility, absorbing losses when the price is high and making more money when global oil prices fall. (Continued on next page)
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Starch & Derivatives
Starch Italics Starch Industry Overview
Petrobras says gasoline, ethanol prices to fall (Contd)
Fungus process makes ethanol production more efficient
But the surge in ethanol prices is harder to control, and had pushed up overall gasoline prices because of the mix.
Hans van Leeuwen of Iowa State University is leading a research team that has developed a process that uses a fungus to make a high-protein animal feed from the leftovers of ethanol production.
Government ministers had vowed to force Petrobras to bring down prices, but Lima said they came down naturally as the sugar-cane crushing season got underway in April. Meanwhile, fuel consumption continues growing in Brazil. In the first quarter, fuel consumption rose 5%-6% over the first quarter 2010, a faster pace than overall economic growth, he said. More consumers are moving into the middle class, which means more are buying cars and travelling by airplane, he said. Aviation fuel consumption grew 14% to 15% in 2010 over 2009, he said. (marketwatch.com May 19 2011)
Growing Rhizopus oligosporus fungus also cleans the water used in the ethanol production process so that it can be recycled back into fuel production. The process, called MycoMeal, could one day produce a low-cost nutritional supplement for people. For every gallon of ethanol produced, there are about 5 gallons of leftovers known as stillage. The stillage contains solids and other organic material. Most of the solids are removed by centrifugation and blended with dried distillers grains that are sold as livestock feed, primarily for cattle. (theengineer.co.uk May 23 2011)
Apr/May 2011
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Starch & Derivatives
Starch Italics Starch Industry Overview
Composite Technical Services Introduces Polycard XFN Bio-Based Polyols Composite Technical Services (CTS) has introduced Polycard XFN, a new class of bio based polyols designed to improve the physical properties of applications like bio-based rigid spray foams, sandwich panels and pour in place insulation systems CTS say that Polycard‘s polyols exhibit high thermal stability and have also demonstrated the capability to enhance compressive strength, increase fire retardancy and improve dimensional stability. Polycard permits manufacturers to increase the amount of renewable content in end products like foams.
CTS developed Polycard with Italian partner Cimteclab to meet the demand for a low-cost renewable resource-based raw material without the supply restraints of conventional polyols or the environmental issues associated with petroleum-based organic compounds. Polycard is made from cashew nutshell liquid (CNSL) using solvent-free technology. CNSL, an abundant agricultural by-product, is considered an industrial waste stream making the material less sensitive to changes in food and oil prices. The flexibility of Polycard‘s chemical structure allows the material to be modified into other polyol structures suited to the polyurethane and composite industries. (netcomposites.com May 20 2011)
ADM expands South American operations Archer Daniels Midland Co. is building a new port terminal in Uruguay to export corn, soybeans, wheat and soybean meal from South America to markets in Europe and elsewhere. The agribusiness conglomerate said the port terminal will be located at Nueva Palmira and will export crops to Asia, Latin America and Africa as well as European markets. "ADM continues to invest in South America as we expand the size and reach of our processing and transportation operations in the world's key agricultural regions," Domingo Lastra, president of Archer Daniels Midland South, said in a statement. The company said construction will begin immediately on the port terminal, which should be completed in about two years. Global supplies of corn, wheat and soybeans remain at historically low levels because growing demand is outstripping supplies. Prices for all three grains have risen this year, nearly doubling in the case of corn and wheat. Archer Daniels Midland and other companies have been beefing up their operations in South America, where land is relatively cheap and crop production is on the rise. The company's new port will be able to store 180kt of crops. It is expected to handle 2.8 mio t of grain and soybeans in its first year of operation, and will employ about 100 people. Shares of Archer Daniels Midland fell 27 cents, or nearly 1%, to close at USD 31.49. (chicagobusiness.com May 20 2011) GIRACT Sweeteners & Starch Price Monitoring Giract provides quarterly prices of white sugar, key starches and their principal derivatives used in the food industry across major regions.
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Starch & Derivatives Company News
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DSM, Roquette to build commercial scale succinic acid project in Italy
DSM, Roquette to build commercial scale succinic acid project in Italy (Contd)
The so-called fossil-age will make a shift to the bio-based-economy. In two or three centuries from now, people will look back on our civilization as a merely brief moment in history where we in a period of just about 250 years shifted our total economy to coal, oil and gas. To make the shift back to living with, and especially off, nature, we need to start this shift now. We are at a turning point towards a next green industrial revolution to secure our feed and fuel needs in the future.‖
Early 2010 DSM and Roquette opened a demonstration plant in Lestrem (France), which has been running at full capacity. In 2010 DSM and Roquette also announced their intention to establish a joint venture (which will be carrying out business under the name Reverdia) for their cooperation, subject to regulatory approval.
With those words, Feike Sijbesma, CEO of DSM, accepted the George Washington Carver award for innovation in biotechnology at the BIO World Congress on Industrial Biotechnology, as he announced that DSM and Roquette Frères will build a commercial scale plant for the production of bio-based succinic acid. With a capacity of about 10kt/year, the plant will be Europe‘s largest bio-based succinic acid facility. It is expected to come on stream in H2 2012 and will be built on the premises of Roquette in Cassano Spinola (Italy). Financial details of the investment will not be disclosed Succinic acid is a chemical building block used in the manufacture of polymers, resins, food and pharmaceuticals among other products. Bio-based succinic acid, a renewable and versatile chemical building block, is an alternative to petroleum derived chemical building blocks such as adipic acid and 1.4- butanediol. As a result of price competiveness and its renewable nature, bio based succinic acid is addressing a larger market than fossil feedstock based succinic acid. The commercial scale bio-based succinic acid plant is another important step in the successful cooperation between DSM and Roquette that started in 2008. (Continued in next column)
Apr/May 2011
The new commercial production facility in Italy will be producing fermentation based bio-succinic acid. The proprietary yeast-based fermentation process, which operates at a much lower pH than competing processes, allows succinic acid to be produced with a significantly higher energy efficiency compared to the traditional method. It is also one of the first bio-based processes that sequesters carbon dioxide in the production process. The new production facility will for the time being use starch derivatives as feedstock. In the longer term the aspiration is to switch to second generation feedstock (cellulosic biomass.(biofuelsdigest.com May 10 2011)
ADM starts bio-propylene glycol unit Archer Daniels Midland Co. has opened a facility for bio-based propylene glycol in Decatur. The facility started operations in late March, according to ADM, and is now producing industrial-grade propylene glycol. The company hopes to increase the plant‘s capacity over the next few months, adding the production of propylene glycol, which meets USP (US Pharmacopeia) specifications. (Continued on next page)
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Company News
Starch Italics Starch Industry Overview
ADM starts bio propylene glycol unit (Contd)
ADM to acquire Prairie Pride soy crush and biodiesel plants (Contd)
Paul Bloom, business director of Industrial Chemicals, said, ―Company will be piloted with the necessary design modifications, reviewed and updated our operational safety program and then implemented the improvements at scale to bring the facility online in late March, because ADM is committed to safely producing high-quality, biobased propylene glycol, we took time to ensure our facility was getting the right results, the right way.‖ The facility has also produced certified kosher glycerin, which meets USP specifications since April 2009. (plasticsnews.com April 21 2011)
ADM to acquire Prairie Pride soy crush and biodiesel plants Decatur, Ill.-based agribusiness firm, Archer Daniels Midland Co. has agreed to acquire a soybean crushing facility and 30 MMgy biodiesel production plant from Prairie Pride Inc. in Deerfield, Mo. ADM will also form a partnership with PPI for the biodiesel portion of the business.
PPI responded to ADM‘s acquisition of its soy crushing and biodiesel production assets, stating ―Earlier this year, in conjunction with a division of General Electric, we worked to find partners and potential purchasers of the crush and biodiesel facilities. After a bidding process conducted by GE, ADM has agreed to purchase the debt held by GE and will become our primary creditor. (Continued in next column)
Apr/May 2011
Not only has ADM offered to infuse more capital into the crush and biodiesel facilities, they also have requested that Prairie Pride participate alongside ADM in the future of the biodiesel facility.‖ Al Decker, treasurer of PPI‘s board of directors, told Biodiesel Magazine that the biodiesel plant ceased production in February last year and has sat idle prior to ADM‘s stepping in with the acquisition. Decker said the company had spent over a year working for a solution to resume operations, but the company became financially distressed, citing the lapsed tax credit as the primary culprit behind the decision to halt production The Deerfield biodiesel plant broke ground for construction in 2006 and began producing biodiesel in 2007. For ADM, the acquisition of PPI‘s soy crush and biodiesel production assets was attractive because it further highlights the company‘s growth strategy in the U.S. and internationally ―ADM‘s growth strategy involves expanding the volume and diversity of crops that we source and process; expanding the reach of our origination, transportation and processing assets and expanding our value-added product portfolio,‖ ADM said in an email correspondence. ―The Prairie Pride facility will increase our North American crush capacity and it fits well within ADM‘s integrated business model.‖ Alan Willits, president of Cargill Corn Milling North America, said the company believes the facility will fit well into its bio-product portfolio when the acquisition was announced, and Iowa Governor Terry Branstad praised Cargill‘s investment in the state, noting the 100-plus jobs the new facility is expected to create. (ethanolproducer.com April 29 2011)
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Company News
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Tate and Lyle, Electrocomponents We have become used to companies grumbling about rising raw material prices, but those grumbles are often music to the ears of food ingredients firm Tate & Lyle. In a trading update at the end of March the company said that operating performance over the company‘s full year had been in line with market expectations, save for the company receiving a late boost to co-product income from the rise in corn prices. That sent investment analysts scurrying to revise their earnings estimates, and market consensus is now for profit before tax of GBP 247.7m on sales of GBP 2.6bn. Credit Suisse thinks those estimates might still undervalue the corn price boost; the Swiss bank is forecasting profit before tax of GBP 255m. ―With another 2 months trading behind us [since the March update], we believe the outlook for 2011/12 is probably a bit better now as well. US starch volumes are robust, by-product credits remain strong, exports to Mexico continue to offset US HFCS declines and European sweetener prices are rising with the EU sugar price,‖ Credit Suisse said. Broker Charles Stanley is expecting Tate & Lyle‘s Bulk Ingredients business, which accounts for around 70% of group sales, to have had a strong year but thinks the market might be more interested in what new boss Javed Ahmed has to say regarding the outlook for the Speciality Food Ingredients business; the division only accounts for 30% or so of group sales but 555 of EBIT. ―We look for robust volume growth across divisional product categories and will be interested in what Tate has to say regarding prospects for operating margins both on fixed and multi-year contracts. (Continued in next column)
Apr/May 2011
Tate and Lyle, Electrocomponents (Contd) These results should provide investors with an update on the ‗Focus, Fix, Grow‘ strategy and perhaps greater clarity regarding the way forward in Speciality Foods,‖ the broker said. Electronics and maintenance products supplier Electrocompo nents upped full-year profits guidance at the beginning of April, but Singer Capital Markets thinks profits might still come in ahead of expectations. Market consensus is for pre-tax profit of GBP 113.5 mio on sales of GBP 1.17 bio.
―For the full year to March 2011, we are anticipating revenue of GBP 1 151 mio, up 18.4% on 2010, gross profit of GBP 539 mio up 15%, with operating profit of GBP 120.4 mio, up 52%, highlighting the operational gearing implicit in distributors. We are anticipating a gross margin of 46.8% for the year, in line with the first half, as it appears that the company has finally arrested the constantly declining margin that was a feature of the company for a number of years,‖ Singer said. As for profit before tax, ―we are forecasting growth of 54% to GBP 114.4 mio, vs a consensus of GBP 113.5 mio and a narrow range of GBP 110.6 mio to GBP 115.4 mio. We expect EPS [earnings per share] to grow 53% to 17.9p, with a maintained DPS [dividend per share] of 11p. Full year net debt should be around GBP 147.9 mio, down from GBP 172.1 mio a year ago,‖ the broker added. Charles Stanley, however, thinks market consensus is a little on the optimistic side and predicts profit before tax of GBP 113 mio, EPS of 18p and a full-year divi of 11p. (Continued on next page)
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Company News
Starch Italics Starch Industry Overview
Tate and Lyle, Electrocomponents (Contd) Charles Stanley also downplays the effect of the Japanese earthquake. ―The business in Japan (3% of group sales) was not directly affected by the earthquake and current sales are running at similar levels to last year,‖ the broker said. ―Products sourced from Japan for sale around the rest of the group account for another 3% of sales. Any disruption should not have any material impact on the group as it sources products from some 2 500 global suppliers,‖ Charles Stanley noted. (sharecast.com May 27 2011)
DuPont building up biotech Wilmington's DuPont biotechnology last USD 6.4 bio bid for Danisco and beginning the two companies.
DuPont building up biotech (Contd) Danisco, which makes food ingredients and additives, also markedly strengthens DuPont's food business. Its addition will create a standalone USD 3 bio nutrition and health segment. "We would call this a strategic acquisition," said Craig F. Binetti, a DuPont president who will lead the newly created nutrition and health business. DuPont completed its purchase of Danisco after a five-month-long public negotiation with holdout shareholders. According to company statements in January, when DuPont launched its bid, the deal will be financed with debt plus USD 3 bio in existing cash.
Co. doubled down on week, completing its Danish enzymes firm the process of combining
With the Danisco purchase, DuPont moves yet further away from its storied history in explosives and commodity chemicals and further into what may be considered a third era for the 209-year-old Delaware company -- this one defined by biotechnology. DuPont is already a force in agricultural biotech through its ownership of Pioneer Hi-Bred International, a USD 5.3 bio Iowa firm that sells genetically altered soybean seeds. DuPont purchased Pioneer for USD 7.7 bio in 1999, in its last major acquisition. Architects of the Danisco deal say the addition of the Copenhagen-based company makes DuPont a major player in industrial biotechnology and will bolster efforts to produce materials from renewable sources like corn starch and soy.
DuPont expects it could cost 45 cents/share in 2011 earnings but add to earnings by next year. Jefferies & Co. analyst Laurence Alexander, who follows DuPont, expects Danisco to add 20 cents/share in 2012. Alexander said the DuPont purchase values the company at USD 6.89 bio. Alexander expects integration "should run fairly well due to the close partnerships over the past decade." The companies currently partner on a project to produce ethanol from corn cobs and switchgrass (delawareonline.com 22 May 2011)
(Continued in next column)
Apr/May 2011
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Company News Bio Fuels
Starch Italics Starch Industry Overview
Cargill plans to convert corn wet mill into biorefinery campus
Cargill plans to convert corn wet mill into biorefinery campus (Contd)
Fort Dodge, Iowa, may be nearly 150 miles away from Blair, Neb., but Agriculture giant Cargill Inc. might hope the two areas are close in some ways. After purchasing a corn wet mill facility outside of Fort Dodge in March, the Minneapolis based company has since stated its hopes that the former Tate & Lyle facility shuttered two years ago can replicate a Cargill owned biorefinery campus in Blair. Now, after the Iowa Department of Economic Development has awarded Cargill with USD 2 mio in loans and incentives for the Fort Dodge facility that could produce up to 115 MMgy of ethanol, the state of Iowa should also be hopeful for some similarities
While she did not give specifics on what Cargill has planned for the facility in Fort Dodge, she did say that the company will work to increase the efficiency of the facility. And, she said, ―Cargill anticipates making a series of additional investments to develop this facility into a biorefinery complex.‖ The plan is to produce a wide range of products similar to those produced in Blair and Eddyville, but the new facility will not produce corn-based sweeteners or industrial starch.
China Set to Increase Use of Biofuels
―We see an opportunity in Fort Dodge to replicate the success we have had at our Blair, Neb., and Eddyville, Iowa, biorefinery campuses,‖ said Nicole Reichert, senior communications counselor for Cargill Corn Milling North America. ―The corn wet mill ethanol plant will provide the base load corn grind for the facility, and we hope to grow additional biobased businesses at the site in the coming years.‖ At the Blair facility, Cargill has partnered with a number of other industry leaders including Novozymes, Evonik and also a Cargill-owned bioplastics facility, Natureworks LLC, to produce a wide range of products, from bioplastics to animal feed additives and catalysts The ―over the fence‖ (OTF) experience Cargill has gained in Nebraska will also correlate to the success of the Fort Dodge facility, Reichert said. ―The OTF model has proven successful in allowing our plants to run more consistently at a larger scale and for the customer to enjoy the economies of scale, which come with being part of a shared manufacturing base.‖ (Continued in next column)
Apr/May 2011
China can become a leader in the production of second generation (2G) biofuels, made from agricultural waste instead of foodstuffs, such as sugar, starch and vegetable oils said a senior executive from one of the industries' leading companies. That's as the nation attempts to improve energy efficiency and reduce reliance on fossil fuels. "The United States is the biggest producer of first-generation (1G) biofuels. Regarding 2G production, no other country has shown leadership, so maybe China will move faster on this because it has been put on the political agenda," said Michael Christiansen, President of Novozymes (China) Investment Co Ltd, referring to the nation's 12th Five-Year Plan (2011-2015). Christiansen made the remarks in an exclusive interview with China Daily on April 15 at Boao, a small town on the east coast of Hainan province, where he was attending the annual "Forum for Asia" conference. (Continued on next page)
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Bio Fuels
Starch Italics Starch Industry Overview
China Set to Increase Use of Biofuels (Contd)
China Set to Increase Use of Biofuels (Contd)
The Denmark-based Novozymes is the largest provider of industrial enzymes and market leader in enzyme technology for biofuels. Christiansen said Novozymes has a market share of about 50% in China in 1G biofuel production, but more opportunities will be created as the nation's new Five-Year Plan places a heavy focus on 2G production, although detailed plans are not yet available. Global biofuel consumption will increase from the current level of 55 mio t of oil equivalent - the amount of energy obtained by burning one standard barrel of oil - to 750 mio t in 2050.
In addition, 2G biofuel production could benefit the economy with less effect on food supply and prices. "1G biofuel has become very popular, but we worry that if it becomes too popular, too much food goes into the production of biofuels. Production of the fuel from agricultural waste will have a lower effect on food prices."
Meanwhile, over the same period, the proportion of biofuel used in the transportation-fuel market will rise from 2% to 26%, with 2G biofuels accounting for roughly 90% of all biofuels used, according to a report by the International Energy Agency.
In May 2010, Novozymes, China National Cereals, Oils and Foodstuffs Corporation, and China Petrochemical Corporation announced the construction of a 10kt-capacity demonstration plant for commercial-scale production of advanced biofuels from corn stover - the leaves and stalks of maize plants - which will begin this year. "By the end of 2011, we plan to take the next step moving from a pilot scale, which is 20 times bigger than what we have today. Then by 2013, we will move to a commercial size, which will be somewhere between 50 and 100kt," said Christiansen.
By developing 2G technology, China can reduce the import volume of crude oil, and reduce CO2 emissions by 90% from current levels, he said. `
"It fits perfectly with China's next Five-Year Plan to reduce inefficiency." The nation has announced plans to reduce CO2 emissions by 40 to 45% by 2020. It's expected that energy consumption of non-fossil fuels could account for more than 11% of the country's total energy consumption by 2015. Christiansen suggested that between 2.4 and 2.8% of China's total energy consumption could be produced from biomass (organic material) by that date. "That's a big increase compared with the existing situation five, seven or even 10 times more." Currently, Chinese annual biofuel production stands at 2 mio t, he estimated.
Food security concerns have led the government to restrict grain-based ethanol production and to promote non-grain-based fuel ethanol production instead, according to a report by the World Economic Forum (WEF) in June 2010.
In common with other companies in the industry, Novozymes is also eyeing China's biochemical market, he said. In April 2010, Novozymes and Dacheng Group, a leading corn processer located in Jilin province, made an agreement to make plastics from agricultural waste. The companies have agreed to expand their cooperation in developing biochemicals derived from biomass and to promote production of plant based glycol. Now the two are evaluating different production methods.
(Continued in next column) (Continued on next page)
Apr/May 2011
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Bio Fuels
Starch Italics Starch Industry Overview
China Set to Increase Use of Biofuels (Contd) Christiansen predicted the company will maintain an annual growth rate of around 20% in the biofuel and biochemical business in China over the next five years. "That's a lot of fantastic benefits in this. We are in the starting phase of creating a new industry. The new ways of producing chemical and fuels will take time. In five years, we will see a more mature industry." According to the WEF report, the conversion of biomass into fuel, energy and chemicals has the potential to generate upwards of USD 230 bio for the global economy by 2020. China's use of biofuel ethanol will reach 12.7 bio liters by 2020, while automotive ethanol gasoline usage will be 100%, and annual consumption of biodiesel will reach 2.3 bio liters, according to the targets set by the National Development and Reform Commission (english.cri.cn April 27 2011)
Biofuels can provide up to 27% of world transportation fuel by 2050 A new report from the International Energy Agency (IEA) says that the widespread deployment of biofuels can play an important role in reducing CO2 emissions in the transport sector and enhancing energy security, when produced sustainably. Most conventional biofuels (produced mainly from starch, sugar and oilseed crops) must therefore be improved in terms of conversion- and land-use efficiency to achieve considerable greenhouse-gas reductions. In addition, advanced biofuel technologies currently at the demonstration stage (produced mainly from lignocellulosic biomass such as wood and straw), need to be commercially deployed within the next ten years and will provide the major share of biofuels in 2050. (Continued in next column) Apr/May 2011
Biofuels can provide up to 27% of world transportation fuel by 2050 (Contd) In total, the report assesses the expenditure on biofuels required to meet the roadmap targets between USD 11 trillion to USD 13 trillion over the next 40 years, depending on the actual production costs. ―This figure may seem large, but in fact even in the worst case biofuels would only increase the total costs of transport fuels by around 1% over the next 40 years, and could in fact lead to cost reductions over the same period.‖ ―With world population growing by more than 30% to 9 bio people in 2050, and food demand increasing approximately 70% according to estimates by the Food and Agriculture Organization of the United Nations, competition of biofuel production for land with food, fodder, as well as fiber production needs to be carefully addressed to avoid negative impacts from biofuel expansion on food security,‖ said Mr. Diczfalusy There is a great potential for using low-risk sources that require limited land expansion, and should not compete with food production, to provide feedstock for the expanding biofuel industry. The report says the use of residues and high yielding energy crops as feedstocks, and the efficient use of biomass, for instance through integrating biofuel and bio-material production (so-called biorefineries), will be vital to reduce land competition. In addition, sustainability certification of biofuels, following internationally agreed sustainability criteria, will be an important step towards ensuring that biofuel production and use have a positive environmental, social and economic impact. Around 3 bio t of biomass per year will be needed in 2050 to produce the amount of biofuels envisioned in the IEA roadmap. (Continued on next page)
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Bio Fuels
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Biofuels can provide up to 27% of world transportation fuel by 2050 (Contd) The report assesses that 1 bio t of biomass residues and wastes would be needed, and this would need to be supplemented by production from around 100 mio hectares of land - around 2% of total agricultural land. This would be a three-fold increase compared with today, but the yield of biofuels could increase by a factor of 10 through the use of wastes and residues and through the use of more productive crops and processes. (bioenergy.checkbiotech.org April 26 2011)
Great Falls ethanol plant clears financing hurdle A USD 400 mio ethanol plant proposed for Great Falls has cleared a key hurdle required to qualify for a loan guarantee from the U.S. Department of Energy, an official said late this week. Although the project still is not assured of receiving the federal loan guarantee, "we have successfully met" Part II criteria of the program, Gary Hebener, President of Montana Advanced Biofuels, announced late this week. "We have moved to the final due diligence phase of the process," Hebener said. "While this is expected to take a number of months as the Department of Energy brings in additional market consultants and engineers for a final review, we are very optimistic."
Great Falls ethanol plant clears financing hurdle (Contd) The plant, which would be located near Malmstrom Air Force Base, would provide about 100 manufacturing jobs, and provide hundreds of temporary jobs during the construction phase, officials said. Montana Advanced Biofuels applied for an air quality permit from the state of Montana April 20. Hebener said the plant will produce no odors. Hebener has been working to bring an ethanol plant to Great Falls for more than 20 years. The plant would use grain from the region's farmers to create ethanol for vehicles, gluten and wheat bran for human consumption, and grain feed for livestock.(greatfallstribune.com April 30 2011)
Corn ethanol is inefficient and drives food prices higher The United States loves corn. We use it for everything, from Coca-Cola sweetener to cow feed to ―plastic‖ cup base. And we grow a lot of it: about 730 bio pounds in 2010 On par with America‘s love for corn is its oil addiction—and over the past 10 years we have combined these two great infatuations in the form of ethanol, a biofuel that can be mixed with gasoline to power cars and trucks. While the process of making corn ethanol involves simple fermentation and distillation—not unlike making whisky or vodka—the impacts of moving nearly 126 bio pounds of corn off the table and into the tank are enormous, and infinitely more complex. Corn, like any plant, needs sunlight, soil and water to grow.
(Continued on next page) (Continued in next column) Apr/May 2011
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Bio Fuels
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Corn ethanol is inefficient and drives food prices higher (Contd)
Corn ethanol is inefficient and drives food prices higher (Contd)
In the United States, it gets myriad additional inputs: in 2005, farmers applied 10 bio pounds of nitrogen fertilizer to our nation‘s corn, irrigated more than 80% of the cropland and sprayed about 170 mio pounds of herbicides and that‘s while the plants were still in the field.
Even characters in fables are susceptible to economic incentives, evidently. With the help of decades of farm subsidies keeping inputs cheap, a tariff on foreign ethanol, 40% of production costs being covered by tax dollars, and government mandates for production, sending corn to the tank earns famers a lot more money. Is that really our primary goal from an alternative fuel source? Almost certainly not, so lets look elsewhere for fuel and leave the corn for the cola and cows. (peninsulapress.com April 26 2011)
And unfortunately, that‘s the lowest energy ratio out there for biofuels. For comparison, Brazil— the world‘s second largest biofuels producer after the United States—gets an output ratio of 2 from their sugar cane ethanol. Also, studies on net energy output of biofuels are convoluted and often hard to sift through: while some say it takes more energy to produce biofuels than the fuel provides, others say just the opposite. We‘ll attempt to clarify the situation in the Nitty Gritty. While energy ratios give a valuable metric for comparison, judging the impacts of biofuels—and their ultimate value as a sustainable fuel source— is more complex than comparing energy outputs or piecing together lifecycle analyses. Corn ethanol has environmental, economic and social impacts that reach far beyond the gas tank. And by almost any analysis, those impacts make it a poor choice for fuel in the United States. One such negative impact is diverting corn from food to fuel: the 14 mio acres of corn we used for biofuels in 2008 could have fed 26 mio cows to maturity, or have sustained as many as 100 mio people for a year. Further, choosing to use that corn for fuel decreased the amount available as food on the international market and may have contributed to skyrocketing food prices and increasing deforestation rates in the Amazon. (Continued in next column)
Apr/May 2011
Next generation of corn products entering market This year, the dedicated efforts of agribusiness, farmers, biotechnology advocates and others, including the National Corn Growers Association, are producing results as a new generation of corn technologies are set to enter the market. Now, farmers can look forward to specialty products intended for specific markets and corn capable of better coping with climate-based stressors. ―Fifteen years of biotechnology advocacy and support for science-based regulation created the conditions for approval of these exciting new products,‖ said the NCGA Trade Policy and Biotechnology Action Team‘s Chad Blindauer. ―We applaud the release of products that provide growers with options that allow them to diversify or improve their operations. At the same time, this success renews our dedication to grower access to technology. I strongly urge farmers to consider the power that grassroots activism has as demonstrated by these events.‖ Earlier this year, the Animal and Plant Health Inspection Service deregulated corn engineered to produce a common enzyme called alpha-amylase that breaks down starch into sugar, thereby facilitating a vital step in ethanol production. (Continued on next page)
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Next generation of corn products entering market (Contd)
Company eyes biofuel potential (Contd)
This represents a major change in the types of corn traits available to growers. Until the deregulation of corn amylase, traited corn products protected yield and reduced stress from biotic factors such as insects or weeds. This reduced inputs needed to protect the crop and maintain yields. Corn amylase opens new options as the first output trait approved and commercialized.
The company developed an interest in the northwest when it built a connection with a Burns Lake business group with access for wood.
Now, APHIS is in the final stages of consideration for deregulation of the first biotech corn variety that targets abiotic stress, drought. This will be the first variety available that reduces stress from a purely climatic factor. In the future, further abiotic traits better suiting corn for cooler weather and other climate-based stressors are expected. ―APHIS deregulation of corn amylase represented a major triumph for science-based regulations,‖ said Blindauer. ―The introduction of additional options continue to allow growers to produce the corn needed for food, feed, fuel and fiber in a rapidly growing world.‖ (southwestfarmpress.com May 23 2011)
Company eyes biofuel potential CORE BioFuel Inc. is holding an information session May 27 to provide more details ―We think there‘s an opportunity in Terrace. There are locations and there‘s fibre,‖ says Toronto-based CORE BioFuel official Doug Sheppard. One possible location is the city‘s airport industrial lands, the Skeena Industrial Development Park. ―We‘ve had discussions with members of your town council and also several of your lumbermen,‖ Sheppard said. CORE BioFuel is also holding a session in Smithers and one in Houston where it has already been spending time and effort on selecting a plant site. (Continued in next column)
Apr/May 2011
―We now have investors throughout the area,‖ said Sheppard. The decision to hold information meetings follows the signing of a memorandum of understanding with so-far unnamed project developer to develop as many as four plants. ―For now they don‘t want their name known, but they will be at the Houston meeting and possibly the others,‖ said Sheppard. He stressed that CORE is not the inventor of the wood-into-gas method, but is working on developing it as a commercial process Intense heat is used to convert primarily waste wood into 92 octane gas. ―We wouldn‘t own the plant. We would license the technology,‖ Sheppard said. Each plant would cost USD 100 mio and require 220kt of fibre a year to produce 67 mio litres of gas. ―And we‘d be profitable without a subsidy, but we won‘t turn down any help if offered,‖ said Sheppard. ―We‘ll take help where we can get it. ―We believe we‘re the leading edge biofuel company in the world,‖ he added. In addition to 40-50 inside workers, a plant capacity of the size proposed by CORE BioFuel would required approximately 150 outside workers to provide the wood. (bclocalnews.com May 25 2011)
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Bio Fuels
Starch Italics Starch Industry Overview
Luverne ethanol plant to highlight market-expanding technology
Renewable Energy In the Pond Ethanol has traditionally been produced using corn. The problem with using corn for ethanol is that corn is a food staple for humans and the removal of corn from the food cycle is seen by some as anti-human.
Gevo Inc., an Englewood, Colo., company, has bought the Agri-Energy ethanol plant in Luverne, Minn., and will retrofit it with new technology it hopes will be a game-changer in the ethanol industry. By the middle next year, Gevo plans to make commercial quantities of iso-butanol which can be used as liquid fuel, like ethanol. But the additional carbon in its structure makes it burn with more energy than ethanol Because it repels water, like gasoline, isobutanol can be transported in existing oil pipelines and shipped directly to gasoline refineries for fuel blending. Also, isobutanol can be used as a building block to make the ubiquitous plastic polymers that until now were made only with isobutanol refined from oil. That has the potential to open the enormous plastics, synthetic fiber and rubber and chemical solvents markets to what is now the renewable fuels industry. Jack Huttner, Gevo's executive vice president for corporate development, "Our conception is isobutanol as a fermentation alcohol can be a bridge between the agricultural supply chain and the petrochemical and refining supply chain". Calculated on the spread between the price of oil and the cost of growing corn, "we have very favorable market conditions," Huttner said. And as cellulose-based ethanol technology comes to the commercial market, it also can be adapted by Gevo to make isobutanol. This opens a whole new range of potential feed stocks that are cheaper than oil. (argusleader.com May 23 2011)
Apr/May 2011
The theory is that by using corn as the basis of an energy source, we are taking a potential life saving food source from the mouths of those in need. Because of this â&#x20AC;&#x2022;corn is food, not fuelâ&#x20AC;&#x2013; perception, corn-based ethanol has struggled to gain the widespread footing needed to rise as a major player in the world of alternative energy sources. Duckweed is a food source for ducks and other water-based birds, and has been used as a food source by some residents in the countries of Vietnam, Korea and others in that area. However, Duckweed is not a major source of food for these people and the use of Duckweed in ethanol production is widely accepted as a sustainable practice. North Carolina State University researchers discovered that Duckweed has an appetite for animal waste, quickly converting it to leafy starch that can then be converted into ethanol. The really exciting thing for those that are purely interested in the power of the plant as a fuel, and less concerned about its environmentally friendly characteristics, is that the researchers found Duckweed produced four to six times the starch that corn could produce. Corn also uses a tremendous amount of water and chemicals to grow, something Duckweed does not need. What I like about Duckweed is that instead of taking pesticides and water to produce corn for ethanol production, we can actually use a plant that absorbs toxins and works with water, eliminating the two major environmental barriers to corn-based ethanolâ&#x20AC;&#x2DC;s claim of being a green alternative fuel source. (Continued on next page)
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Bio Fuels Bio Plastics
Starch Italics Starch Industry Overview
Renewable Energy In the Pond (Contd)
Bakery waste turned into alternative fuel source (Contd)
The term that is most commonly used for this fuel source is Aquatic Biofuel. To date, Aquatic Biofuels have been identified as either fish waste to produce bio-diesel, micro-algae to produce crude oil for diesel production, and micro-algae to produce bio gas. But the finding that Duckweed can be used for ethanol is a major breakthrough.
The savory products, which contain between 25% and 30% oil and fat, are sourced from bakery manufacturers and the oil is extracted by East Yorkshire-based Brocklesby. It is then purified by Greenergy and converted into biodiesel, which is blended into the diesel supplied to petrol stations
A company called Ceres is working on a duckweed production process that can yield one megawatt of power from a single acre of duckweed pond production. Many others have tried to do similar projects, but have run into issues when the harvesting of the Duckweed comes into play. Ceres believes they can overcome these obstacles and make Duckweed viable.( reston.patch.com May 28 2011)
Bakery waste turned into alternative fuel source Fats and oils from waste pies, sausages rolls and pastries are being extracted to make bio-diesel in a project that is expected to be rolled out across the UK. Road fuel supplier Greenergy has teamed up with Brocklesby, a specialist in recycling edible oil, to convert into biofuel misshapen and out-of-date bakery products that would have gone to landfill or compost.
(Continued in next column) Apr/May 2011
Any food solids left after processing are dried and then composted or used to produce energy through anaerobic digestion, but could be used to make biomass fuel pellets. A Greenergy spokesperson said the company was keen to hear from bakers interested in supplying waste products. Greenergy is also a major shareholder in a firm called Scarab, which produces bioethanol from starch-rich foods such as bread and cakes. Greenergy already uses more than 20 mio litres of biodiesel a month from used cooking oil. Andrew Owens, Greenergy chief executive, said: "As oil prices continue to rise, it's important to develop alternative sources of fuel. The quantities of biodiesel we currently produce from solid food waste are small, but we're expecting to scale up, so that this soon becomes a significant proportion of our biodiesel."(bakeryinfo.co.uk May 25 2011)
Bioplastics based on potato starch not necessarily compostable Itâ&#x20AC;&#x2DC;s a general assumption that bioplastics made from potato starch can be composted. However, that is not necessarily the case. In the picture you see a supposedly biodegradable fork and spoon after 60-90 days in San Francisco's commercial composting operation. Taterware, the manufacturer of the items in the picture, states that its utensils are made from GMO free potato sources. But while the material used is purportedly a green one, Taterware itself doesnâ&#x20AC;&#x2DC;t claim all its products are compostable. (Continued on next page)
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Bio Plastics
Starch Italics Starch Industry Overview
Bioplastics based on potato starch not necessarily compostable (Contd)
Plastics from algae not economic says analyst (Cont’d)
They do make an ASTM D6400 compliant line, but these are visually almost indistinguishable from their non biodegradable varieties. As such, it‘s easy to see why commercial composters may be compelled to remove all utensils from the compost stream, because even when they are made from the same material, it‘s no guarantee they are equally designed to break down. This identifies the other key problem, that too many non-biodegradable items are mis-sorted by consumers which commercial composters cannot recognize.( potatopro.com May 19 2011)
―The issue, as with any biomass, is you need to convert the monomer, regardless of its source, whether it is cellulosic or not,‖ he explained. ―Now with algae, that conversion first requires cultivation. The cultivation is hard to do as it is cost-intensive. You need lots of water and lots of space and you also need lots of capital to pump the water. ―Then, because the algae are very dilute, you might achieve 1g of material from 1 litre of water.‖ (prw.com May 23 2011)
Plastics from algae not economic says analyst Using algae to create bioplastics is attracting increased attention according to a report in the journal Bioplastics World, although the publication points out that a number of firms in the arena ―are sticking with starch-based futures‖. Mark Bunger, lead analyst at Lux Research, told the publication: ―Generally, algae are used as a fuel source – their composition contains a lot of oil and therefore that can be a positive from that perspective. In terms of packaging there are people looking at doing this, but there are issues and I‘m not aware of companies that haven‘t encountered issues.‖
New Bioplastic Features Higher HDT, Impact A Rhode Island compounder says it has improved impact strength and heat deflection temperatures for a major bioplastic. As a result, the material, polylactic acid (PLA), may become a candidate for injection-molded, semi-durable and durable applications. The bioplastic is also now better suited for high-end disposable food service items such as cutlery, coffee lids and containers for microwavable products.
According to Bioplastics World, Bunger is unsure as to why companies would want to go down the path of developing packaging from algae. From his perspective, there are many easier ways to make packaging and, given the nature of how algae work, the alternatives are potentially more valuable from a commercial sense. (Continued in next column)
(Continued on next page)
Apr/May 2011
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Bio Plastics
Starch Italics Starch Industry Overview
New Bioplastic Features Higher HDT, Impact (Contd)
New Bioplastic Features Higher HDT, Impact (Contd)
Teknor Apex says it has overcome an inverse relationship between heat distortion temperature (HDT) and Izod impact strength in PLA, creating a new series of compounds, Terraloy BP-34001, that provide up to two times the HDT and up to six times the impact strength of standard PLA resins.
By comparison, approximate values for standard PLA are 65C and 33 J/m.
Previous work to enhance PLA performance beyond standard levels had generated resins with either higher HDT or greater impact strength - but not both in the same grade, according to the Bioplastics Div. of Teknor Apex. There are other benefits to the newly developed PLA compound. In comparison with previous enhanced performance PLA resins, the new Terraloy compounds process faster - cycle times are 28 to 30% shorter. Another benefit: The compounds incorporate a larger percentage of renewably resourced content, about 10 to 30% more. Nearly all of the new Terraloy compounds are said to comply with FDA requirements for food-contact applications. "Terraloy BP-34001 Series compounds dramatically improve the heat and impact resistance of PLA while largely retaining the environmental benefit of this polymer as a bioplastic," says Edwin Tam, manager of new strategic initiatives. "These innovative formulations promise to expand the applicability of PLA, making possible new uses in higher-heat food service items as well as consumer goods."
The new compound complies with FDA 21 CFR requirements and has a renewable content of 78%. The base polymers for Terraloy BP-34001 products are Ingeo resins supplied by NatureWorks. "Teknor Apex built upon research by NatureWorks to develop higher-performance PLA compounds," says Gregory J. Anderson, Teknor Apex technical manager. "By discovering alternative formulations and compounding techniques, we succeeded in eliminating a chronic property trade-off between heat resistance and impact resistance, while improving processability and reducing the petrochemical content." Tam says that the price for the PLA compound will be greater than for standard PLA. No specific data was available. The Bioplastics Division of Teknor Apex is a custom compounder of plastics derived from renewable resources. Product families include: hybrids that combine thermoplastic starch (TPS) with standard petrochemical-based polymers such as polyolefins or polystyrene; biodegradable or compostable blends of bioplastics; recycledcontent hybrids that combine post-industrial or post-consumer polyolefins with TPS; and PLA based masterbatches that incorporate additives such as impact modifier or melt strength enhancers. (designnews.com may 10 2011)
In property tests, a typical grade in the new series, Terraloy BP-34001D, exhibits a heat distortion temperature of 112C and Izod impact strength of 135 J/m. (Continued in next column)
Apr/May 2011
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Regional Language News
Starch Italics Starch Industry Overview These are the news derived from regional publications,
translated
using
online
tools,
hence the medium quality of translation.
China Food control overweight corn for deep processing enterprises: "strictly limited" purchase April 21st, the reporter got the information from a deep-processing enterprise at Weifang, Shandong, that they purchased standard corn at RMB 2260/t. It rose by RMB 30/t as compare to last week. In Harbin, Heilongjiang province the price of corn is RMB 1960 ~ 4980/t, rose by RMB 20/t than last week. The manager of Nongken North & South Trade Company told the Daily Economic News reporter that they have suspended acquisitions of corn. Due to poor storage, at the end of January, related ministries requested processing enterprises in Northeast Chian and Jilin Province stop buying corn. Food Bureau in Heilongjiang also asked the processing enterprise and 70 qualified traders to suspend the purchase. Insiders of Jilin Changchun Dacheng company said that they also informed to stop purchase of corn from farmers in order to ensure that the takeover of corn reservoir, and the tax deduction policy. An anonymous general manager of the food processing group said that national policy strictly limits the development of corn processing enterprise. Relevant statistics show that the expected requirements of annual domestic industrial corn demand in 2010-11 will be increased from 11% to 29%. Also the quantity of corn in processing will reach 5kt. Industry analysts pointed out that as domestic demand for food is decreasing it is necessary to restrict this energy intensive, low output and polluting enterprise. (feedtrade.com.cn April 22 2011)
Apr/May 2011
Policy control: a rebound inhibition of deep processing of corn consumption After the Spring Festival, there is a drastic change in domestic corn futures market. The price of spot corn rose sharply, The purchase price of corn in February increased from RMB 1920-30 to 2090-2100/t, the growth rate being 8.83%. And in northeast, the purchase price rose to a maximum of RMB 2000/t. The author thinks that, drop in the price of futures market is limited, with the strong influence of intense demand in the international market During this year, the bank raised deposit reserve rate at four times which resulted in short supply of capital for the purchase and storage of corn processing enterprises. Moreover, National Development and Revolution Committee requested the bank to stop providing loan to the buyer, and urged the borrowers to sell and return the loans. On April 20th, Department of Finance have withdrawn the VAT deduction policy for corn purchase and deep processing enterprises. So from Apr 20th to June 30th, the buyer could not issue invoices for the purchase of corn from farmer. There is no doubt that this is the key reason to inhibit the deep process development and long-term adjustment in corn market. In addition, the guys let futures market price to adjust the pressure. (feedtrade.com.cn April 22 2011)
Decrease of corn starch and potato starch market price: inflation continued to influence The price of corn starch is rising slightly. In the north east and northwest area, the price is around RMB 3150 to 3200/t, while in southern, the main price is 3450-3600/t. (Continued on next page)
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Regional Language News
Starch Italics Starch Industry Overview
Decrease of corn starch and potato starch market price: inflation continued to influence (Contd)
Decrease of corn starch and potato starch market price: inflation continued to influence (Contd)
But until now, they still cannot purchase the corn starch. Also some of the down-stream products followed the price rise. Most of the distributors show that there is a possibility to increase the price, but need to take the down-stream cooperator into consideration. In North of China and Shandong province, the price is stable. Different food enterprises have different points, some of them need to sell their stock first and no need to purchase any more as to the price of corn without obvious change.
Some merchant at the support of corn starch, never provide price and waiting for the cassava starch can result in some profit. However, the news show that some of the vermicelli is used by ink and paraffin, what have impacted the cassava starch market seriously. Moreover the food quality issue always happened in difference place, and the related department pays much attention to do food safe quality. The cassava starch market is not good due to less business. In Zhuochang's opinion, as so many negative impact, this week, the cassava starch market will be same as before, some merchant with the pessimistic attitude for the current market. (futures.jrj.com.cn April 24 2011)
The potato starch market is still not good, some of the enterprises just expect the price to be stable and the market can be better. As to the notice of stop the VAT deduction policy from Finance Department on April 19, the price of corn starch rose which made the starch market energetic. According to the Zhuochuang News, the production capacity of potato starch will be about 25kt in Spring season. After the bad market, the potato starch will have the new market two weeks later as the down-stream need buy more. Those days, the potato market is not good, there are two reasons, firstly, the excessive production too much than market demand, also some factory down regulation as to panic. Secondly, as to the impact of bank credit-funds, some buyers have not enough money to purchase, also the factory sales the potato starch at small profit to get money return. The down-stream buyer still carry out the food safe inspection which is influence the market accordingly. At the points of Zhuochuang, the potato market will be better as the buyer will have much demand. The notice of stop the VAT deduction policy from Finance Department on April 19, what make the corn starch market unrest and result in the bad potato starch market followed hope. (Continued in next column) Apr/May 2011
April 26, 2011 corn pice in Heze, Shandong April 26th 2011, the price of corn in Heze, Shandong : At the beginning of this week, the price of corn in Linqing Shandong is rebounded slightly. Following is the market details: 1. Local food grain storage listing price RMB 2.08/kg, down RMB 0.01 from last week/kg, bulk density is more than 700 2. Dezhou, Shandong, the price of corn is RMB 2090/t, the products with 15% moisture 3. Local corn purchase price is around RMB 1840-1850/t, and the corn with 15 to 16% moisture, the feed factory buy the corn with the price of RMB 1900/t, which with 14% moisture. Although the policy issued to control the process enterprises last week, in fact, there is no function in Shandong, followed is the example: (Continued on next page)
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Regional Language News
Starch Italics Starch Industry Overview
April 26, 2011 corn pice in Heze, Shandong (Contd) Country
Amount (RMB/kg)
Heze,Shandong
2.08
Heze,Shandong
2.09
Heze,Shandong
1.84
Shouguang jin Corn
2.4
Co.,ltd Xinfeng Starch Co.,ltd
2.4
April 26, 2011 corn pice in Heze, Shandong (Contd) From the weekend, the price of corn rise slightly, what is wrong with the market. At present, the feed factory in Guangdong purchase more corn, but the followed production capacity is less, so the price will be rise. While in northern region, the market is stable. With the new policy come, lots of food process factory with difference purchase plan last weekend with up and down price as followed ďź&#x161; Country
Amount RMB/kg)
2.23
Shouguang jin Corn
Binzhoujinhui Co.,ltd
2.17
Xinfeng Starch Co.,ltd
Runsheng Starch
2.23
Zhuchengxingmao Co.,ltd
2.23
2.26
Binzhoujinhui Co.,ltd
2.17
Runsheng Starch Co.,ltd
2.23
Yingxuan Alcohol Co.,ltd
2.26
Shouguangzhonghui
2.20
Zhuchengxingmao Co.,ltd
2.4
Co.,ltd 2.4
Co.,ltd Yingxuan Alcohol Co.,ltd Shouguangzhonghui
2.20
Co.,ltd Boxinxiangchi Co.,ltd
2.17
Xiwang Group Co.,ltd
2.19
Zoupinghuayi Co.,ltd
2.26
Shengtai Medicine
2.24
Co.,ltd Dezhoufuyuan Co.,ltd
2.16
Zhonggu Starch Sugar
2.12
Co., ltd Yangkou Wine Co.,ltd
(Continued in next column) Apr/May 2011
2.18
Co.,ltd Boxinxiangchi Co.,ltd
2.17
Xiwang Group Co.,ltd
2.19
Shengtai Medicine Co.,ltd
2.24
Dezhoufuyuan Co.,ltd
2.16
Zhonggu Starch Sugar Co
2.12
Yangkou Wine Co.,ltd
2.18
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Regional Language News
Starch Italics Starch Industry Overview
April 26, 2011 corn pice in Heze, Shandong (Contd)
April 26, 2011 corn pice in Heze, Shandong (Contd)
From March to April, the corn price in future market is not stable, pure events and farmer concentrated sales the grain make the market with big pressure. In the same time, followed the policy which is prevent the price from rising. With time going, the short-term factors will be disappeared, as the corn with the long term shortage cannot be changed, and the price of corn will be up.
With the high price situation, the corn acreage will be increased in USA and China, the weather will have a big difference in the production capacity. So the weather will be the key factors for the future market of corn after the second season. Regulation policy issued, in the short team will be pressure for the future market price.
Continue the situation of demand much than supply
In order to fight inflation, avoid excessive rising commodity prices, national policy measures to control for commodity prices, recently the typical behavior is "interview" communicate each industry association to stabilize prices. Of course, and monetary policy levels of measures, such as China's central bank has raised interest rates twice within four times, 'reserve-requirement ratio, all is for the recovery of excess liquidity, to avoid the occurrence of the vicious inflation.
With the increase of the global economic, the demand of corn will be increased. According to the Agriculture Department of USA, latest report, in 2010 to 2011, the global demand of corn will be increased from 22.63 mio t to 838.32 mio. However the production capacity just increased 2.51 mio t, it cannot meet the request market demand, which will make the global corn stock will down to 122.43 mio t, which is 14.6% of the sales quantity. While in domestic markets, although the corn production capacity is increased in several years, it still cannot meet the market demand, so there is no choice but import corn from foreign country to meet the market demand. In 2010-11, will import 200kt to 1.5 mio t corn from foreigners. Moreover, as to the price competition in 2009-10 when sales, we have not any stock now, also the nation regulations for the corn price will be weakness. With the strain situation of supply and demand of corn market, the corn harvest will very important. At present, during the Northern hemisphere sowing period, the market about planting area and the weather changes theme hype or futures market price trends will be dominated. (Continued in next column)
Apr/May 2011
Frequent introduction of control policies, short-term price pressure that period
For corn industry, also have the corresponding policies. The latest "a seven-item corn market regulation measures" limits the corn downstream processing industry, including the corn consumption this year shall not exceed the amount of corn processing industry in 2009, speed up and improve the productivity of eliminate backward processing industry value-added tax rate, etc. April 19, the state administration of taxation suspended some corn processing enterprise purchase corn VAT deduction for policy of 70 days, period. A series of policies are to control prices rise considerably, also make corn price pressure. However, adjustment and control policies enacted or just short-term behavior, long-term or difficult to change the upward trend of corn prices. (Continued on next page)
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Regional Language News
Starch Italics Starch Industry Overview
April 26, 2011 corn pice in Heze, Shandong (Contd) Downstream breeding to restore the corn consumption as the largest feed raw materials, corn prices by feed industry and breeding industry with the influence of vigorous downturn. Early in "lean meat fine events" under the influence of the consumption of corn pig industry formed certain dozen strike, but the impact of these factors have in the past. According to understand, since mid-April, most feed enterprise pig feeding early sales are growing by 10-15%. Because of this, the future 1-2 months time, the consumption demand will be great support factors of corn future market price. Summary, although the regulation policy issued frequently, the supply demand factors give much support on the corn market for a long time, also with the limited down in short-term. The weather impact factors and demand of breeding may result in the corn price rise again. (nfinv.com April 26 2011)
2010 Sugarcane, cassava, cocoon production ranked first in the country Statistics from the Guangxi Zhuang Autonomous Region in 2010, held a news conference to understand the economic operation, Guangxi's sugar cane, cassava, silkworm cocoon output ranks first in the country, while a variety of agricultural production in the forefront of the country.
2010 Sugarcane, cassava, cocoon production ranked first in the country (Contd) According to statistics, the 2010 production of 71 196kt sugarcane, cassava yield 1.732 mio t, cocoon production of 27 mio t, accounting for 60% of national output, 70% and 33%, and ranked first in the country. In addition, wood, high quality rice, bananas, oranges, longan, mango, litchi, vegetables, edible mushrooms, herbal medicines and other agricultural production ranked the country. In recent years, through the full implementation of agricultural taxes, grain, seeds, farm machinery purchase, home appliances and a series of subsidies and increase investment policy of benefiting the agriculture, agricultural production capacity in Guangxi significantly improve the rural economy to achieve new development. Guangxi 4 consecutive years of grain yield high, stable output of 1400 t or more; "shopping basket" steady growth products, meat, aquatic products ranked first in the country for 4 years 8. According to reports, "Twelve Five" period, Guangxi will actively develop high-yield, high quality, efficient, ecological and safe modern agriculture. Implementation of new food production capacity planning in the construction of grain production in 15 countries and 35 autonomous counties base counties grain resources, the implementation of standards for grain construction, land improvement, soil engineering, plant protection projects, and strive to grain production capacity by 2015 up to 1500 t. (Continued on next page)
(Continued in next column) Apr/May 2011
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Regional Language News
Starch Italics Starch Industry Overview
2010 Sugarcane, cassava, cocoon production ranked first in the country (Contd) It will also build vegetables, fruit, livestock, aquatic products and construction of production bases across the Taiwan Strait (Yulin) agricultural cooperation experimental zones and other agricultural park, build 5 over RMB 5 bio sales income and 20 bio over 10 leading agricultural enterprises. (cncassava.com May 27 2011)
Russian Bioethanol production in Kyrgyzstan The Ministry of Economic Regulation (IEG) of the Kyrgyz Republic held its first meeting of the interdepartmental working group on introduction of technology of bioethanol production in Kyrgyzstan, created by the decree of the Government of the Kyrgyz Republic. As the press service of Ministry of Economic Development of Kyrgyzstan, at a meeting of Working Group Chair A. Aidaraliev a presentation of global development Bioetanolovoy technology. Following the meeting, members of the working group was mandated before May 1 of this year to submit their proposals for a pilot project "Development and introduction of obtaining ethanol in conditions of Kyrgyzstan." (kabar.kg/index.php April 27 2011)
Biofuels aggravates hunger Year by year an increasing share of world agricultural products - corn, sugar, palm oil, cassava - diverted to produce biofuels. Developed countries to adopt legal regulations to expand the share of non-fossil fuel resources, while developing giants such as China, are seeking new sources of energy for its industries and transport, writes the business portal with reference to the publication in the New York Times. But in a sharp rise in food prices in recent months, many experts urge States to limit the activity of the development of "green" fuels, because due to the ambitious plans in this industry and poor harvests in key crop ultimately increases the number of hungry people. In February, the Food and Agriculture Organization (FAO) has fixed the maximum value of the food price index for 20 odd years of its existence. True, in a recent report for the March 2011 report on the first eight months of the index decline by 2.9%. But previously only from October to January prices rose by 15%, resulting in another 44 million people in low and middle income below the poverty line, according to the World Bank. Rise in prices of products was one of the causes of political turmoil in some countries with low incomes, including in Algeria, Egypt, and Bangladesh, where, in particular, palm oil, used in the production of biofuels is an important food ingredient. In the second half of 2010 dramatically increased the price of corn - its rise in the U.S. reached 73%, such a jump, according to UN World Food Programme, partly associated with increased turnover of maize in the production of bioethanol. The U.S. Congress decided that the use of biofuels by 2022 should reach 36 bio gallons a year (more than 160 bio liters). (Continued on next page)
Apr/May 2011
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Regional Language News
Starch Italics Starch Industry Overview
Biofuels aggravates hunger (Contd)
Biofuels aggravates hunger (Contd)
In the EU, stipulates that by 2020, 10% of transport fuel should come from renewable sources. Trust regulations on the use of biofuels have also been established by China, India, Indonesia, Thailand and other countries.
Nevertheless, there may be some indirect effects. Since cassava is also used as a forage crop, demand from the biofuel industry could affect the availability and cost of meat products.
It is difficult to predict how the demand from the biofuel sector will affect the supply and food prices. In some cases, for example, cassava and maize, the increase in commodity prices is triggered by direct competition of its customers. In other situations, there is scarcity and price increase. China has learned that almost ten years ago when we began to produce ethanol from corn, and as a result of this program has caused a terrible shortage and price hike of food. In 2007 the government banned the use of cereals in the production of biofuels. Then the Chinese scientists were to develop technology making ethanol from cassava, root crops with good energy efficiency. As a result, several years ago opened its first plant for its commercial production. Now this direction is actively developed. Cultivating cassava on its territory, China buys raw materials in addition to Cambodia, Laos and Thailand. Cassava, which recently has become widely used for biofuel, is a valuable cash crop. Lands are limited, so the more their allocated for biofuel production, the less food. In the Asian diet, it is not a key product, such as in Africa, although in China, it played an important role as a food reserve in recent years. Therefore, China decided that the production of biofuel from the raw material will not exert a direct effect on food inflation or provoke a deficit, at least on the domestic market. As a result, the proportion of cassava used as ethanol feedstock has increased from 10% in 2008 to 52% in 2010. (Continued in next column) Apr/May 2011
Thanks to the generous Chinese purchases of cassava in South-East Asia, it could become the main crop, which farmers would be actively cultivated at the expense of, for example, rice or vegetables. In developed countries, the development of biofuels is already having a noticeable effect on prices and crop structure. Thanks to government subsidies in the U.S., this industry is actively developing, diverting nearly 40% of corn grown in the country. Prices for this growing, and there is reason to talk about the correlation between the quotations on the Chicago Mercantile Exchange, which rose by 73% and, for example, prices in Rwanda, where the corn last year increased by 19%. And if, for Americans it means a few extra cents for a pack of cereal for breakfast, then for the poor in other countries may not be available the most important products of the diet.( newsru.com April 13 2011)
Ukrainian distilleries stimulate the production of biofuels Ministry of Agricultural Policy and Food plans to increase biofuel production in the Ukrainian distillery in connection with the trend of rising oil prices.
(Continued on next page)
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Ukrainian distilleries stimulate the production of biofuels (Contd)
Russia starts production of ethanol in the next two years (Contd)
According to head of the ministry Prisyajnyuk Nicholas said, when the price of oil above USD 93 a barrel, biofuel production will be economically attractive and profitable.
In turn, the presidential envoy in the Southern Federal District Dmitry Kozak said that in the Krasnodar Territory is planned to build a plant for processing rapeseed as raw material for biofuel production. The project cost is estimated at 15 mio euros. In addition, he said, Volgograd region will have a plant for the production of bioethanol, the total capacity of 300kt in the project and will invest EUR 380 mio. Raw materials will be low-grade grain. (24auto.ru May 16 2011)
The Minister said that currently 80 plants exist in Ukraine are producing alcohol and only 25 of them produce alcohol for beverage purposes, and the food industry. From about 60 ideal factories, we analyze which of them can be derived from excise under control and, given that rising demand for biofuels, we begin this work N. Prisyajnyuk said that the two plants are already running pilot projects and a further four-mounted unit for production of biofuels. The minister also stressed that biofuels will contribute to increase of sugar beet.( news.infocar.ua April 13 2011)
Russia starts production of ethanol in the next two years Russia in the next two years will start producing ethanol, stated by Russian Agriculture Minister Alexey Gordeev, the German-Russian Forum "Biomass energy", held in AGROFORUM EastWest ", ITAR-TASS."Currently, in the south and in Siberia there are several major projects to produce bio-fuels. Through a year or two, we will begin to produce the first 10000 t of bioethanol." Minister of Agriculture said that the issue of energy security is relevant not only for Russian agriculture, but in general for the European economy. "In Europe the emphasis is on the production of biodiesel in this regard, Russia is ready to become a producer of rapeseed as raw material for biodiesel." He added , 窶標e are waiting for new technologies and investments from western companies in Russia and are willing to negotiate with them". (Continued in next column)
Apr/May 2011
Indonesian PTPN X bioethanol plant operation schedule 2012 President Director of PT Perkebunan Nusantara (PTPN) X, Subiyono states, it soon operate a bioethanol plant in 2012. The plant is the result of government cooperation Indonesia and Japan through the New Energy and Industrial Technology Development Organization (NEDO). "Construction of the plant will begin in mid May and is expected to be completed by February 2012. In sugarcane milling season of 2012, molasses (sugar industry waste) can be processed into bioethanol," said Subiyono, the Ministry of Industry, Jakarta. Bioethanol factory is projected to be able to process 100kt from 250kt of molasses produced every year by the company to become the alternative fuel. "Bioethanol is produced is estimated at 100 thousand liters per day or equivalent to 30 thousand kl of fuel-grade ethanol per year. Estimated production figures that if the ethanol plant can produce over 300 days per year," said Subiyono. That bioethanol factory will be built in an integrated way with Sugar Factory Gempolkrep Mojokerto, East Java, owned by PTPN X. (primaironline.com April 27 2011)
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Ethanol demand falls for 1st time in 11 years
Spanish The Brazilian government wants Petrobras controls ethanol prices Brazilian state oil company Petrobras is expanding its role in ethanol production, said the government, comes as the country tries to prevent the rise in fuel prices accelerated inflation. The Mines and Energy Minister Edison Lobao said Petrobras would raise its stake in ethanol producer to 15% of total production in Brazil over the next four years, from 5% The country currently produces 29 000 mio liters per year of biofuel. An increase in ethanol prices this year prompted the authorities to work on measures to regulate the biofuel market, in an attempt to have more control over production and supply
Ethanol consumption in South-Central region of Brazil in 2011 should be 24.839 bio gallons, down 4.1% from the 25.895 bio gallons last year, according to Bioagência, one of the major traders in the fuel Country Retreat is the first since 2000, when there was no flex fuel vehicles, and occurs because the supply of ethanol is stable against a backdrop of growing fleet of cars. The vehicles use more gasoline consumption in 2011 and derived from oil will jump 10.4% in the country between 2010 and this year, according to Bioagência. Gasoline C, sold in the ranks, must have a demand of 26.211 bio gallons this year from 23.747 bio liters in the previous one. The use of gas will supply, thus the bottleneck created by the collapse of ethanol, since the total demand of fuels in vehicles powered by gasoline and alcohol, will reach 37.536 bio gallons, up 6.5% compared to 2010. According Tarcilo Rodrigues, director of Bioagência, demand for ethanol will be controlled by changing the use of hydrated by gasoline in flex fuel vehicles. This occurs when the fuel price of cane sugar is 70% charged by the gasoline at stations, which makes use fuel oil more economically advantageous. "For the first time since 2000 the industry [sugarcane] is stagnant and the supply of cane will be limited, the adjustment of consumption must occur at the price of fuel," said Rodrigues (brasilagro.com May 04 2011)
In April, the government extended the minimum of the range that can be set mandatory blending of ethanol in gasoline and determined that the National Agency of Petroleum, Natural Gas and Biofuels (ANP) supervise the industry. (minutoaminuto.com May 09 2011)
Apr/May 2011
Steady supply of corn price increases sufficient demand is not easy Since late March, the domestic spot price of corn market is basically stable, somewhat lower price in some areas. The author believes that the current supply and demand is relatively relaxed, corn prices unlikely to rise sharply again. (Continued on next page)
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Steady supply of corn price increases sufficient demand is not easy (Contd) April is expected to stabilize the domestic price of corn based, small correction could not be ruled out. Northeast corn price range for the RMB 1950-2050/t the price of corn in North China in RMB 2050-2200/t. High corn prices stabilized in Northeast. Due to recent frequent rainfall in Northeast China, corn production has decreased However, due to difficulties in maize exports, traders purchasing enthusiasm reduction, stop rising market prices have been mostly stabilized. Heilongjiang Harbin current first-class enterprise purchase price the RMB 1980-2020 corn feed/t, Jiamusi first-class corn deep processing enterprises purchase price for the RMB 1980-2020/t Jilin Changchun First corn deep processing enterprises purchase price for the RMB 2060-2080/t, Siping region RMB 2040-2080/t; Liaoning Jinzhou first-class corn deep processing enterprises purchase price for the RMB 2120-2160/t, flat. Maize prices in North China highs Huanghuai countries have started to feed enterprise auction sales imperfect grain wheat, feed corn farming enterprises purchase high-priced slow progress, corn procurement requirements of the market decreased. Early April, Hebei Shijiazhuang First corn deep processing enterprises purchase price for the RMB 2080/t, Qinhuangdao is RMB 2060-2080/t; Henan Zhengzhou, first-class corn into ex-factory RMB 2020-2060/t, Anyang area first-class purchase price for the corn traders is RMB 2000-20/t; with basically the same as in late March. Shandong Weifang in first-class price for the corn deep processing enterprises RMB 2140 to 2180/t, Texas, area purchase price for the first-class corn traders is RMB 1980-2040/t, in late March were down RMB 20/t. North Port periodic pressure corn prices. (Continued in next column)
Apr/May 2011
Steady supply of corn price increases sufficient demand is not easy (Contd) Dalian Port First the current purchase price for the RMB 2110-2130/t corn trade, down the middle of March RMB 20-3/t; Dalian and Jinzhou Port are first-class price of corn trimming RMB 2180-2190/t, In mid-March fell more than RMB 10 to 20/t. Shekou Port in Shenzhen First current board distribution of corn price RMB 2250-2260/t, was essentially flat, but prices fall than in mid March RMB 40-50/t, the current ship from Dalian to Shenzhen Shekou, Hong Kong 70 per freight/t to RMB 2 180 dalian/t trimming prices, the cost of corn-to-port RMB 2250/t, considering the wear and tear and other costs, North Port is still upside down corn prices. Expected corn price is difficult to rise in April. Recently, the domestic corn market supply increased, while the procurement requirements remained stable, the market buying and selling both the short term bullish corn market is expected to weaken, prices of maize are expected in April unlikely. From the supply point of view, the amount of corn market will continue to increase. Especially for the northeast region, the temperature rises, increasing the difficulty of keeping corn, common corn farmers and small traders to sell the enthusiasm will continue to increase. Huang-Huai Region in North China, as a result of narrowing the spread between the corn, Hebei, Henan, reduce the number of corn for export, making the local high corn prices fall, some traders will increase sales of corn. From the demand point of view, short-term needs cannot effectively enlarged. First, demand for corn feed livestock and poultry industry is still in the recovery process, the enterprise is relatively adequate corn stocks, and some companies have already signed the purchase contract there, so no hurry to fill Yongliangqiye library. (Continued on next page)
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Steady supply of corn price increases sufficient demand is not easy (Contd) In addition, the state enterprises on the auction sales imperfect feed wheat, wheat instead of corn to some extent, feed corn farming enterprises purchase high-priced slow progress, market purchases of corn demand has decreased. Second, the domestic prices of downstream products of deep processing industry down, corn processing gains reduce the number of industrial consumption of corn to maintain previous levels. In late March, the domestic starch prices down again, most of the starch producing factory price fall than early March RMB 50 to 100/t range, mid-fall more than RMB 2 100 to 200/t.
Minimum proportion of ethanol in gasoline falls (Contd) Break, ethanol is no longer an agricultural product, also according to the MP, to officially be a fuel, and now under the regulatory responsibility of the National Petroleum Agency (ANP). With this, the body is in charge of marketing, pricing, storage and export of the product. How is an interim measure, the ordinance shall only last 90 days. (allthecars.wordpress.com May 03 2011)
April seasonal domestic starch consumption in the off-season, a corresponding reduction in market demand, prices continued to rise does not support the starch.(sinobcm.com May 04 2011)
Portugese Minimum proportion of ethanol in gasoline falls The President of the Republic, Roussef, signed an interim measure on the proportion of ethanol in gasoline. The MP reduces the minimum amount to 18% against 20% previously required. The maximum remains at 25%. The main objective of the measure is to reduce fuel prices. With lower insertion into gasoline, ethanol does not increase both the value of the derivative of petroleum. In the bargain, there is a greater supply of alcohol at stations, which also helps reduce the figures tabulated for the product made from sugar cane. (Continued in next column)
Apr/May 2011
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