Roots June 2021

Roots IOWA CORN

A LOOK INSIDE: RESEARCH

Market Demand and Research Continues for Corn Plastic

EDUCATION

Iowa Corn Supports Local Schools

MARKET DEVELOPMENT

Global Demand for Protein on the Rise

ICPB SPECIAL EDITION June 2021

iowa corn .org Roots • 2021 | 1

RESEARCH

II O O W W A A

MARKET DEMAND AND RESEARCH CONTINUES FOR CORN PLASTIC

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armer leaders on the Research and Business Development Committee (RBD) at Iowa Corn have set out to identify new markets for corn. Their research has led them to a monopoly many would not expect: the plastic industry.

Plastic is as diverse as corn. As farmers, you can stop at saying you grow corn, or you could go further to describe it as field/sweet/pop/ white corn, explain the type of hybrid, soil-type, production practices, and so on — plastic can be equally as complex. All of the plastic we use in our everyday lives was designed for its specific purpose, for example you wouldn’t grow sweet corn to send to the ethanol plant; the properties and economics just aren’t right.

It’s no secret, corn plastic is already utilized today. The Iowa Corn Promotion Board (ICPB) was one of the original investors of the research that led to the most common corn plastic, polylactic acid, more widely referred to as PLA. PLA is a type of plastic that is both plant-based and compostable, and it is used mainly in cutlery, cups, medical devices and 3D printing.

But like some types of corn aren’t suited for specific purposes, PLA is not ideal for every plastic use. Surprisingly, many consumer brands are more interested in recyclable plastic instead of compostable plastic.

The ICPB has been funding research to meet the demand of consumer brands for plant-based, recyclable plastic since 2014. The chemical monoethylene glycol (MEG) was selected as the most promising of over 100 products considered. MEG is traditionally made from petroleum and used to make the antifreeze in your vehicle, the soda bottle in your tractor, and even the polyester in your clothes.

Developing any new product, in this case plant-based MEG for plastic, is challenging. There’s technology risk in research to ensure the product performs as intended, there’s application risk with finding the right place for the product, and there’s market risk in meeting the consumer’s needs. By funding research to displace the conventional MEG with plant-based MEG, ICPB found a product with an existing market in plastic packaging, textiles and cars and identified a consumer base of brands looking for plant-based, fully recyclable plastics. ICPB assembled a team of leading scientists and engineers to tackle the technology risk and design the chemical process. To lower the market risk, ICPB decided to take ownership of the technology and patent it worldwide. To date, ICPB has been granted eight patents and four more patent applications in 15 countries.

You might be wondering: Why would ICPB patent the technology?

Wouldn’t it be better to publish the technology and make it available to everyone? The truth is when designing a new process to make a chemical or plastic, the customer we are trying to reach is a chemical

THE CHEMISTRY OF BIODEGRADABLE PLASTICS A Common Bioplastic Polylactic Acid (PLA) is made by fermenting sugars from plants such as corn, sugarcane and sugar beets.

Conditions for Biodegrading Moisture

Oxygen

Uses of PLA Microorganisms Paper coffee cups remain compostable by lining them with PLA. The PLA also makes them waterproof.

PLA is used to make clear cups, films and other food containers. PLA has the largest production volume of any 100% plant-based polymer.

PLA is also used to make compostable forks, knives and spoons.

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manufacturer, an engineering company, or a corn wet miller. These customers are looking to lower their market risk by ensuring they are making a solid investment. This practice is comparable to farm ground; you wouldn’t start farming land unless you had a rental agreement or the deed. The patents owned by ICPB ensure the technology has a greater chance at commercialization, instead of a free-for-everyone published science article. After all, ICPB is working on the Iowa corn farmers’ behalf to generate new demand for corn, and patents are a better investment to increase the likelihood of success.

The demand for MEG consistently grows year-over-year, like most products in today’s world. The demand for MEG grows at about

Plastic bottles and containers are among the most recycled plastics at around 30% every year, and they are found in many consumer-brand packaging. Plant-based MEG could deliver on the demands we see today when it is turned into a plant-based, fully-recyclable plastic and, perhaps more importantly, a plastic that brands and consumers already use.

“The people and companies I talk to want a better solution to conventional plastics,” said Alex Buck Ph.D., Iowa Corn Industrial Innovation Manager. “They are excited when I tell them about ICPB’s research into plant-based MEG and how corn farmers are ensuring a sustainable crop.”

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4% year-over-year, making it equivalent to new demand of 100 million bushels of corn per year. Plant-based MEG research through ICPB is a product managed by farmers, for farmers with the goal to continue to find new uses for corn and grow your bottom dollar.

“ICPB’s research is on the cutting edge,” said Pete Brecht, a farmer from Linn County and chair of the Iowa Corn Research and Business Development Committee. “We will continue to innovate new ways to convert corn into diverse products to increase corn demand. The vision for research at ICPB is still an innovative way for checkoff research to be done, and we have been doing it since 2001.”

PLANT-BASED

Bioplastics

Bioplastics

e.g. biobased, PE and PET

e.g. PLA, PHA, PBS, starch blends

Soda bottles

Cellophane

Carpet

Some cups and cutlery

Plastic bags

Starch blends

NON-BIODEGRADABLE

BIODEGRADABLE

Conventional plastics

Bioplastics

Plastic bags

Yogurt cups

Soda bottles

Nylon

Some foams and plasticizers

e.g. PE, PP, PET

Polyester fabric Spandex

e.g. PBAT, PCL

Some cling wrap and gardening bags

FOSSIL- BASED Iowa Corn created this modified illustration using facts and creative inspiration from a European Bioplastics illustration.

European Bioplastics. (n.d.). Bioplastic materials [Illustration]. https://www.european-bioplastics.org. https://www.european-bioplastics.org/bioplastics/materials/

EDUCATION

IOWA CORN SUPPORTS LOCAL SCHOOLS

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ere at Iowa Corn, we know the importance of connecting with consumers. That is why the Iowa Corn Promotion Board (ICPB) dedicates 27% of checkoff dollars to support consumer education to better bridge the gap between farmers and Iowa consumers.

As part of the Stronger Together campaign we shared with Iowans that they can trust the drinking water from the tap because Iowa farmers take extreme measures to keep our water supply safe.

Within our efforts to convey Iowa farmers care about the water we share, Iowa Corn set out to support local Iowa schools by giving away a water bottle filling station in each crop reporting district.

2020 impacted all of us in many ways, and we know that drinking fountains have likely changed for the long-term. This hybrid water fountain not only offers a touchless option to fill up water bottles but also utilizes safe water from the tap.

Beginning this April, Iowa Corn encouraged local communities to nominate schools for a chance to win one of the nine water filling stations being given away. One water bottle filling station per district/community from each Iowa crop reporting district will

be installed in nine Iowa schools ranging from elementary to high school this summer.

Not only will a water bottle filling station be awarded to a school in each district, Iowa Corn will also be part of the first week of school by donating Iowa Corn reusable water bottles and signage for each water bottle filling station. Iowa Corn will also work with the winning schools to organize a day for the Iowa Corn Mobile Education Center to visit and educate students about all things corn.

Throughout the course of this initiative, over 200 Iowa schools were nominated to win a water bottle filling station. Congratulations go out to the following nine recipient schools:

• Sioux Central, Sioux Rapids • Hancock Elementary, Britt • Union Community Schools, La Porte City • West Monona, Onawa • Morris Elementary, Bondurant

• North Scott, Eldridge • Tri-Center, Neola • Lincoln Center, Albia • Cardinal Middle School, Eldon Roots • 2021 | 3

MARKET DEVELOPMENT

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GLOBAL DEMAND FOR PROTEIN ON THE RISE

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he Iowa Corn Promotion Board® (ICPB) values our customers and partners, especially those in the livestock industry. When ICPB leaders approached pork producers to find the best ways to support them, the answer was to invest in our export markets and the U.S. Meat Export Federation (USMEF).

USMEF has proven to be a positive investment as they are represented in over 80 countries and work through three primary areas: marketing, trade promotion and market access. With global demand for U.S. meat on the rise, ICPB proudly invests in USMEF year over year alongside other in-state investors, including the Iowa Pork Producers Association and the Iowa Beef Industry Council with the goal to increase value and profitability while building demand for U.S. red meat around the world. Recently ICPB approved the proposed additional investments within USMEF for the China Meat Traders Club for U.S. pork and beef, U.S. pork promotion activities in Colombia, and for the U.S. pork promotion activities in Mexico.

The China Meat Traders Club is an informal association of executives from U.S. red meat exporting, importing, distribution, retailing and food service companies. Their annual meeting gathers nearly 900 individuals to discuss views on pork trade from the U.S. and is the region’s largest U.S. red meat industry activity. ICPB found value in bringing in guest chefs Liu Nan Nan and Du Wen Cai to offer demonstrations and samplings of quality U.S. meat, update USMEF members on promotional activities, and connect traders with other industry representatives. We are optimistic about market access improvements within the Phase 1 agreement between the U.S. and China and USMEF is looking forward to positive trends in meat exports to China going forward. USMEF is looking forward to the positive trend in meat exports to China going forward.

In Colombia, U.S. pork exports declined due to COVID-19. ICPB and USMEF sought an opportunity to help expand this red meat market by intensifying and extending marketing outreach to targeted trade accounts and through recent meal delivery trends that saw growth through the pandemic. Colombia is the leading destination for all U.S. pork in the South American region and is actively importing at least 1,000 metric tons of U.S. pork per year. ICPB’s investment in USMEF pork promotional activities will also capitalize on the supply gap of

Mexico’s 65% self-sufficiency on pork by developing new products, evolving sales to more value-added products, and expanding geographical coverage to secondary regional markets and channels that have not yet been activated. The USMEF staff in Mexico will develop new social media strategies to elevate U.S. pork’s brand awareness and work with industry allies to cross promote.

2020 was tough on the agriculture world, and the pork industry was no exception. However, pork exports have recovered in the beginning of 2021 with record numbers. After a slow month-over-month increase starting in August 2020, international pork demand saw a record high of exports at the end of 2020. According to USMEF, pork exports shattered records with $7.71 billion in value, up 11% from the year before. In total, an impressive 6.57 billion pounds of pork were exported in volume. The surge came mostly due to large purchases

by China and Hong Kong, selling nearly 2.3 billion pounds, but other strong pork markets include Mexico, Japan, Canada and South Korea.

All exported pork accounted for 29.3% of total U.S. pork production in 2020, up from 26.9% in the year prior. In the current 2021-year, January and February saw pork exports in the amount of $1.27 billion equaling 1.08 billion pounds. With over 95% of the global population living outside of the U.S., the growing global middle class will continue to demand and request high-quality protein diets. Together, Iowa Corn and Iowa Pork will continue to work with USMEF to grow the portion of U.S. pork on the world’s plate.

On the USMEF board, I proudly represent Iowa as a corn grower and pork and beef producer, I understand the importance of investing in export markets to benefit farmer’s bottom line,” said Dean Meyer, ICGA director, USMEF vice chair and Iowa farmer.

“Having our products globally positioned will increase value and build demand. I expect my checkoff dollars to benefit my grain operation but see Iowa Corns investment in other agriculture industries as an added bounce to help my farm’s bottom dollar.

Iowa’s corn farmers and livestock producers are stronger when they work together. ICPB finds true value in investing and supporting corn customers right here in Iowa and around the world as we work to unlock the potential of corn in a sustainable manner to meet the global need for food and energy.

IOWA CORN PROMOTION BOARD DIRECTOR ELECTIONS are quickly approaching. Crop reporting districts 4, 8 and 9 are up for election. To request a petition or learn more about the election process, please contact Iowa Corn: 5505 NW 88th Street, Johnston, Iowa 50131 or at 515-225-9242. Visit iowacorn.org for further details and more information.

ICPB ELECTION TIMELINE: June 22: Deadline for requesting absentee ballots.

July 13: Elections held at local county extension offices.

Absentee ballots must be postmarked on or before July 13th.

FOR MORE INFORMATION, CONTACT: Iowa Corn | 5505 Northwest 88th Street | Johnston, Iowa 50131 | 515-225-9242 | iowacorn.org | corninfo@iowacorn.org

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