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BIOLUBRICANTS Growing green

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Plug Flow Plate/Tube Conditioner with heat recovery

IS

The technologies and processes developed, designed and commercialised by Desmet Ballestra are part of the intellectual property of Desmet Ballestra and are protected by intellectual rights through patents or exclusivity agreements.

PA

Leading edge technologies for preparation and extraction plants

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Desmet Ballestra delivers tailor-made engineering and procurement services covering each step of the Industry, from oilseed preparation, prepressing and extraction to oil processing plants including refining and fat modification processes, as well as oleochemicals and biodiesel technologies.

Desmet Ballestra masters the processing of 40 raw materials, including soyabean, sunflower seed, rapeseed/canola, palm oil, groundnut, cottonseed oil etc.

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Desmet Ballestra is highly regarded worldwide for its experience, innovation, outstanding project management, dedicated customer service and environmentally friendly processes.

Science behind Technology

THE B USI NE SS MAG AZ IN E FOR TH E OILS AN D FATS IN D UST RY

PHOTO: KADMY/ ADOBE STOCK

CONTENTS VOL. 32 NO. 6 JULY/AUGUST 2016 EDITORIAL:

FEATURES

Editor: Serena Lim Tel: +44 (0)1737 855066 E-mail: serenalim@quartzltd.com

RENEWABLE RESOURCES

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SALES: Sales Manager: Mark Winthrop-Wallace Tel: +44 (0)1737 855 114 E-mail: markww@quartzltd.com

Growing green biolubricants

TRANSPORT & SHIPPING

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22

Chinese Sales Executive: Erik Heath Tel: +44 (0)1737 855108 E-mail: erikheath@quartzltd.com

Gateway to the Middle East

OILSEEDS

PRODUCTION: Production Editor: Carol Baird E-mail: carolbaird@quartzltd.com

NEWS & EVENTS 2

CORPORATE:

Comment

The impact of Brexit

Managing Director: Steve Diprose Tel: +44 (0)1737 855164 E-mail: stevediprose@quartzltd.com

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A step forward in plant-based fish oil

INSTRUMENTATION

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NMR applications with palm oil

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Biotech News

EC temporarily extends glyphosate licence 10

Transport & Logistics News

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Renewable Materials News

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Nidera reports loss stemming from rogue biofuels trader

NUTRITION

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Bunge and Wilmar in Vietnam joint venture

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Kiwi means quality

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Diary of Events

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International Market Review

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Statistics

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Contents July.indd 1

21/07/2016 09:59

NEWS

COMMENT

The impact of Brexit T

here is much speculation about the UK’s future following its historic vote on 23 June to leave the EU. We know the country has a new Prime Minister and the British pound is some 11% lower against currencies like the US$ and Euro.

We also know that EU laws remain in force until the UK invokes Article 50 of the Treaty on European Union, giving notice it wishes to leave. It will then have two years to renegotiate its relationship with the EU. But issues such as future duties, tariffs and prices; investment; legislation; and the future of the EU itself are all open to speculation. Much will be determined by what sort of trade deal the UK strikes with the EU and other countries around the world.

The EU has 22 trade agreements with individual countries and five agreements covering multiple countries, says the BBC. To retain preferential access to 52 countries covered by these agreements, the UK will have to renegotiate trade deals with all of them.

Brexit advocates have argued that there is no incentive for other countries to disrupt current trading partnerships. But the EU has already said that there will be no special favours granted to the UK and US President Barack Obama had previously warned that Britain would move to the back of the queue when it comes to trade deals. In a post-Brexit world, the UK has several trading models it can follow: The Norway model: The least disruptive is joining the European Economic Area (EEA), which gives full access to the single European market, but with no say in EU politics. The UK would still need to pay into the EU budget and, crucially, allow free movement of labour from the EU, one of the reasons why many voted for Brexit in the first place.

The Switzerland model: The UK joins the European Free Trade Association (EFTA). Bilateral agreements give it access to the EU market and it pays less to the EU. It does not have to apply EU laws except for some regulations to enable trade, including free movement.

The Turkey model: A customs union with the EU, meaning no tariffs or quotas on industrial goods exported to EU countries but applying the EU's external tariff on goods imported from outside the EU. The free trade option: The UK applies no import or export tariffs, but this could hurt sectors where imported goods, such as food and steel, would be cheaper than producing them in the UK.

As for the impact on the UK oils and fats sector, the UK Seed Crushers and Oil Processors Association says that while the macro issues remain key, particularly the need for a clear regulatory framework and access to raw materials and markets for products both within the EU and third countries, “it is too early to speculate on Brexit’s effects without details of the country’s negotiation package”.

The UK produced 869,000 tonnes of edible oils in 2012, imported 1.06M tonnes and exported 254,000 tonnes. Most of its exports are to the EU. According to Statista, UK exports of vegetable fats and oils to the EU was worth about US$366M in 2014.

The lower value of the pound is likely to increase the costs of farm inputs such as seeds, crop protection products and fertilisers.

EU legislation such as limits on the growing of GM crops remain in place for now but may change in the future.

In terms of farming, the EU has no specific support measures or import tariffs for oilseeds. However, UK farmers receive almost €3.1bn in direct payments from the EU; there are measures for the dairy sector such as intervention buying and private storage aid for butter.

In the biofuels sector, UK transport minister Andre Jones has said the government is working on the basis that EU renewable energy targets “remain relevant and binding for the UK”.

There are many questions and few answers – it will take time for the full effects of Brexit to filter through on the country and our industry.

Bunge and Wilmar in Vietnam joint venture G

lobal agribusiness and food company Bunge Ltd and Singapore’s Wilmar International announced on 5 July that they are forming a joint venture in Vietnam to leverage both companies’ footprints in Asia.

Wilmar will buy a 45% share in Bunge’s crushing operations in Vietnam, and Quang Dong – a leading soya meal distributor in the country – will retain its existing 10% stake in the operations, creating a three-party joint venture, Reuters said.

“Bunge is excited to partner with Wilmar, the largest downstream edible oils player in Vietnam,” said Bunge CEO Soren Schroder. “The collaboration will create increased operating, marketing and logistics synergies across the Vietnam oils and soyabean meal value chains, and help us remain a low-cost operator with the highest efficiency possible.”

Wilmar chairman and CEO Kuok Khoon Hong said his company was a major buyer of soyabean oil in Vietnam, while Bunge was the largest producer of soyabean oil in the country.

“The soyabean meal distribution capabilities of the joint venture also complement Wilmar’s animal feed ingredients business in Vietnam, including rice bran, wheat bran, palm kernel expeller, copra expeller, canola

meal and feed oils.”

Vietnam is a growing market for oilseeds due to increased demand for meat and production of livestock, which are fed with soya meal, according to Reuters. The country is forecast to import 5.2M tonnes of soya meal in 2016/17, up from 2.291M tonnes a decade ago, data from the US Department of Agriculture says.

Bunge buys, sells, stores and transports oilseeds and grains worldwide; processes oilseeds to make protein meal for animal feed and edible oil products for commercial customers and consumers; produces sugar and ethanol from sugarcane; mills wheat, corn and rice to make ingredients used by food companies; and sells fertiliser in South America.

Wilmar is a leading agribusiness group with activities including oil palm cultivation, oilseed crushing, edible oils refining, sugar milling and refining, specialty fats, oleochemicals, biodiesel and fertiliser manufacturing as well as rice and flour milling.

It is partly owned by Bunge’s rival ADM, which raised its stake to 20% in Wilmar in March.

Quang Dong is a leading soyabean meal distributor in Vietnam and majority owner of Green Feed, a growing Vietnamese feed milling business.

Further stake in Glencore Agri sold

G

lencore Plc announced on 8 June that it had agreed to sell a 9.99% stake in its agriculture unit to Canada’s British Columbia Investment Management Corp (bcIMC) for US$624.9M. The move follows its sale of a 40% stake to Canada Pension Plan Investment Board for US$2.5bn two months ago in April (see News, OFI May 2016). This leaves Glencore with a majority 50.01% stake in Glencore Agri, valued at US$6.25bn.

The Swiss-based commodities and trading firm has been selling assets to cut debt, and has sold US$3.2bn of assets this year. Its target is to reduce debt to as low as US$17-18bn this year, compared with US$25.9bn at the end of 2015.

With a global network of more than 200 storage facilities and 23 ports, Glencore buys products from farmers, processors and other suppliers and sells to customers including local importers and government agencies. It handles wheat, corn, barley, biofuels, cotton and sugar.

“Our investment in Glencore Agri provides an excellent opportunity for bcIMC to increase and diversify our exposure within the agricultural space, a sector we view as critical to supporting rising levels of global prosperity,” Lincoln Webb, a senior vice-president at BCIMC said.

The pension fund has about C$124bn (US$98bn) in assets under management.

2 OFI – JULY/AUGUST 2016 www.oilsandfatsinternational.com

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NEWS

COFCO opens Canada office in further North America push W eeks after COFCO Agri announced it was establishing an ethanol trading desk in the USA, the Chinese state-owned agricultural trader says it is opening its first trade office in Canada as it continues its push into North America, Reuters reported on 10 June The Canadian office will be located in the centre of the country’s grain region in Winnipeg, joining other major grain traders including Cargill, Richardson International, Paterson Grain, and Parrish and Heimbecker.

Reuters said COFCO Agri was hiring three traders and an operations manager to oversee

Hershey rejects Mondelez bid

the growth of the group’s domestic and export trading activities.

COFCO has been focusing on global expansion. It completed its buy-out of the Noble Group’s agricultural unit in March (see OFI News, March/April 2016) to form COFCO Agri, which will trade and process a wide range of agricultural products including grains, oilseeds, sugar, cocoa, coffee and cotton. It also bought a 51% stake in Dutch trader Nidera in February 2015, which reported its first loss in five years due to a rouge biofuels trader (see Biofuel News, p6).

COFCO has confirmed it is currently pursuing deals that will gain it a presence in North America, the Reuters report said.

COFCO CEO, Matt Jansen said the company’s intention was to expand its footprint into its singular lacking region – North American grain origination – as it strived to achieve a truly global presence.

The opening of the ethanol trading desk in the USA has been viewed as a means of entry to trade between the top two ethanol producers in the world – the USA and Brazil – as well as a way to meet growing demand from China.

ADM markets algae-based feed

H

ershey Co has rejected a US$23bn takeover offer from Mondelez in a deal that would have made them the largest confectionery company globally, reports BBC News.

“The board of directors unanimously rejected the indication of interest,” Hershey said in a statement on 30 June.

Mondelez – with its Oreo cookies and Cadbury chocolate brands – is the world’s second largest confectionery company, while Hershey – known for its famous chocolate bar – ranks number five.

Their merger would have given them 18% of the global confectionery market, according to research firm Euromonitor International, overtaking Mars with 13.3% of the market.

A deal would have combined Hershey’s strong US business with Mondelez’s global distribution footprint, BBC News said.

It would also have given Mondelez control over the production and distribution of Cadbury and Nestle’s Kit Kat chocolates in the USA, which Hershey currently holds the rights to.

THE AQUACULTURE MARKET SPENDS AROUND US$3BN ON OMEGA-3 INGREDIENTS.

A

DM’s animal nutrition division is targeting the aquaculture market with a new algae-derived source of Omega-3 fatty acid for use in aqua feed.

The company said its DHA Natur dried algae biomass comprised 17-20% docosahexaenoic acid (DHA), providing the aquaculture industry with a sustainable alternative to fish oil sourced from commercially-reared and wild captured fish.

“The market interest for an alternative source of DHA is significant and we are currently scaling up production to meet the increasing demand” said Peter Bergstrom, international business manager for ADM Animal Nutrition.

The algae biomass needed to produce DHA Natur was produced through a controlled fermentation process, allowing heterotrophic algae to be produced more efficiently than phototrophic algae, ADM said.

Bergstrom said DHA Natur was currently approved for use in Australia, Chile and the EU, and ADM was currently working on gaining approvals in Canada and the USA. The aquaculture market currently spends around US$3bn on Omega-3 ingredients. In May, TerraVia and Bunge also announced that they were launching a DHA speciality feed ingredient based on algae targeting this market (See ‘In Brief’ News, OFI June 2016).

Cargill sells ag-retail business in USA to Agrium

C

anada’s Agrium Inc announced on 6 July that it is buying Cargill’s US ag-retail business, with annual revenues of over US$150M. Agrium is North America’s largest retail seller of crop inputs such as seed, fertiliser and pesticides, according to Reuters.

The acquisition will include 18 ag-retail outlets across the northern US corn-belt region, in the states of Nebraska, South Dakota, Minnesota, Wisconsin, Michigan and Indiana.

“The locations are in regions where we currently have a limited presence,” said Agrium CEO Chuck Magro said.

The sale does not involve Cargill’s Canadian crop

input retail business.

Roger Watchorn, group leader of Cargill’s North American agricultural supply chain, said the company would “focus on being the world’s leading merchant of grain and oilseeds”.

The global agribusiness corporation had been refocusing its operations by exiting some lowermargin businesses and expanding into higher-margin areas such as food ingredients and aquaculture, Reuters said. In February, it announced it would stop providing crop inputs to farmers in Central and Eastern Europe (see News, OFI, March/April 2016).

The acquisition is expected to close by the end of this year’s third quarter.

IN BRIEF WORLD: Global olive oil output for 2015/2016 will increase by 790,500 tonnes this last season, according to the latest figures released by the International Olive Council (IOC).

This year’s total, estimated to exceed 3.225M tonnes, would come close to the record 3.271M tonnes produced in the 2014/2015 production season, Olive Oil Times reported.

“The world’s largest olive oil producers, Spain and Italy, have had a strong season with a 65% increase in production for Spain, and a 112% increase for Italy compared to the 2014/2015 season, which was the worst experienced by both countries in the past two decades,” the report said. “Greece has also seen a slight increase of 3% while Portugal is poised for a 65% rise in production.”

WORLD: Global trade of all grains & oilseeds (G&O) has grown by about 150M tonnes in the last five years, exceeding the growth of the previous five years by more than 50%, according to a recent Rabobank report.

However, the value of these flows had dropped by more than 15% in the same period, to nearly US$200bn in 2014/15, due to price falls.

Exports from emerging regions with weak currencies continued to boom including Brazil – which had overtaken the USA as the world’s largest soya exporter – as well as the Black Sea Region.

Global imports were dominated by Asia (43% of all imports), followed by the EU (12%), as well as North Africa, Sub-Saharan Africa, the Middle East, and South America and Central America, which each accounted for some 8%-11%.

3 OFI – JULY/AUGUST 2016 www.oilsandfatsinternational.com

Comment and News.indd 2

22/07/2016 09:07

NEWS

IN BRIEF DENMARK: Leading agricultural equipment manufacturer AGCO, USA, announced on 29 June that it had agreed to acquire Denmark’s Cimbria Holdings for US$340M from Silverfleet Capital, with the deal expected to close in the third quarter of this year. Cimbria supplies a range of oilseed processing and handling equipment.

EUROPE: In mid-June, ownership of Desmet Ballestra changed hands from previous backer Equistone Partners to a lender-led ownership structure comprising European financier Kartesia and Bayside Capital, said Mergermarket Ltd. Desmet Ballestra is a major supplier of engineering, plant and equipment to the oils and fats industry. It was acquired

by Equistone Partners in 2007 and Kartesia first took out a stake in the company in 2012, progressively acquiring the company’s debt – provided by a pool of as many as 30 different banks – which had been reduced to two. Mergermarket said Kartesia and Bayside acquired a total of €100M in debt, the vast majority of which had been converted into equity.

A pool of some 10 investors led by Kartesia now owned Desmet Ballestra and €7M of new money had been injected to support further growth.

INDONESIA: Malaysia’s Genting Plantations’ indirect subsidiary, Palmindo, is buying the rights to develop 21,995ha of oil palm plantations in West Kalimantan for US$42.15M, reports The Star Online.

Palmindo would buy the entire equity interest in Cahaya Agro Abadi, whose subsidiary PT Agro Abadi Cemerlang had the rights to develop 8,095ha of land. It would also buy a 100% equity interest in Palm Capital Investment, whose subsidiary PT Palma Agro Lestari Jaya had the rights to develop 13,900ha of land into an oil palm plantation.

Genting said the two pieces of land were close to its other landbank in West Kalimantan and presented potential synergies. The acquisitions would increase its landbank in Malaysia and Indonesia by 21,995ha from the current 238,376ha.

Supply of certified sustainable palm oil to fall by 2.5M tonnes

G

lobal supply of certified sustainable palm oil (CSPO) will fall by 2.5M tonnes (18.5% of total available material) as a result of IOI’s suspension by the Roundtable on Sustainable Palm Oil (RSPO) and Felda’s voluntary withdrawal of its RSPO certification, GreenPalm said on 18 July.

Malaysia’s IOI Corporation Bhd was suspended by the RSPO on 1 April following allegations that it had failed to protect forests and peat areas. On 3 May, Felda Global Ventures Holdings (FGV) withdrew its 58 mills in Malaysia from RSPO certification. RSPO certificates of its palm kernel crushing plants and refineries remain unaffected.

FGV said it had withdrawn its mills because RSPO standards were sometimes difficult for its settlers and smallholders – who made up 30% of its supply base – to comply with. It denies its move is related to alleged labour breaches at one of its estates or allegations that it had cleared peatland in Sarawak.

GreenPalm has advised buyers to move fast to secure the CSPO or certificates they need before

supply is squeezed further.

Simon Chrismas, product manager of Book&Claim, which operates the GreenPalm trading platform, said: “Although Felda does not sell directly into Europe, it contributes to a large proportion of the certified sustainable palm product globally. The impact of IOI’s certification suspension will be felt throughout the European and US supply chains, particularly relating to certified sustainable palm kernel oil (PKO).”

Globally, buyers of sustainable palm oil (PO), PKO and palm kernel expeller (PKE) can use four methods: Identify Preserved (IP): Supplied by one specific certified producer; kept separate in the supply chain.

Segregated (SG): From several certified sources; kept segregated throughout the supply chain.

Mass balance (MB): A mix of certified and noncertified product.

GreenPalm/Book&Claim: Buyers of certificates are guaranteed that a tonnage of PO, PKO or PKE equivalent to the tonnage they use has been produced by certified sustainable sources.

Ruchi palm facilities approved

I

ndia’s Ruchi Soya has been given the go-ahead to set up new facilities including palm fruit and kernel processing units by the Karnataka state government, just-food reported in June.

The processing facilities in Dakshina Kannada will produce edible oil, palm kernel cake and palm kernel oil and solar power.

Ruchi Soya founder and managing director Dinesh Shahra said the approval marked a major step towards “reducing the dependency of the country on imports for its edible oil needs”.

Shahra said the new facilities would boost sales and the efficient handling of produce.

In addition, Ruchi would also establish a nursery that would

produce “high-yielding varieties of plant species”, the report said.

Ruchi had been encouraging farmers to expand domestic palm plantations and had procurement rights in palm planted areas including 4,000ha in Karnataka, just-food said.

In May, Ruchi reported a net loss of Rs 891.29 crore (US$13.35M) for the 2016 year ending on 31 March, compared with a Rs 60.93 crore profit (US$912M) in 2015.

“Performance was adversely impacted by sustained pressure in the global commodities market, a weak and erratic monsoon, foreign currency fluctuations and the overall economic downturn,” the company said.

Successful field trial of safflower

O

n 1 June, Arcadia Biosciences Inc and DuPont Pioneer announced the successful field trial validation of safflower plants producing high levels of arachidonic acid (ARA) oil, an Omega-6 fatty acid used as a functional ingredient in infant nutrition products for its role in neural and visual development.

The companies said Arcadia’s ARA safflower oil was in the late stages of product development and regulatory approval would be sought before commercialisation.

“The newly developed safflower oil could ultimately provide a renewable and sustainable source of this nutritionally important fatty acid,” said DuPont Pioneer.

Brazil’s soya moratorium renewed indefinitely

B

razil’s Soy Moratorium to prevent deforestation in the Amazon has been renewed indefinitely until it is no longer needed.

The ban on not trading, acquiring and financing soyabeans produced on Amazon land deforested after July 2008 was established in July 2006 and has been renewed annually since 2008.

The indefinite renewal was announced on 9 May by the Brazilian Soy Task Force (GTS), a coalition of industry, NGOs and the government.

The GTS said that while the area occupied by soya in the Amazon grew from 1.8M ha to 3.6M ha since 2009, just 0.8% of that growth occurred in newly deforested areas, according to the most recent satellite mapping in the 2014-15 crop year.

This indicated that soya was not a relevant factor in

deforestation in the Amazon Biome.

According to the Brazilian Vegetable Oil Industries Association (ABIOVE), the soya moratorium would remain in place until it could be replaced by a monitoring system based on Rural Environmental Registration (CAR).

ABIOVE secretary general Fabio Trigueirinho explained in Progressive Farmer that the soya industry had planned to end the moratorium following the passing of a new Forestry Code governing farmers’ environmental obligations in 2012.

However, the government still had to create a system where soya purchasers could check they were buying from farms that conformed to the Forestry Code. Therefore, the industry chose to extend the moratorium indefinitely until it was no longer needed.

4 OFI – JULY/AUGUST 2016 www.oilsandfatsinternational.com

Comment and News.indd 3

22/07/2016 09:07

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BIOFUELS NEWS

IN BRIEF USA: The Environmental Protection Agency’s (EPA) comment period on its proposed rule to set 2017 renewable volume obligations (RVO) under the renewable fuel standard (RFS) ended on 11 July. The EPA released its proposed rules on 18 May, setting the 2017 RVO for cellulosic biofuel at 312 gallons, the advanced biofuel RVO at 4bn gallons and the RVO for total renewable fuel at 18.8bn gallons. The 2018 RVO for biomass-based diesel has been proposed at 21bn gallons.

The EPA is expected to publish a final version of the rule by November.

INDIA: Ethanol blending will rise marginally from 1.9% this year to 2% in 2017 but is still far below the Indian government’s target of 10%, according to a recent report from the US Department of Agriculture’s Foreign Agricultural Service.

As of the end of May, stateowned oil marketing companies had bought 509,000m3 of fuel-grade ethanol, which they must purchase only from domestic producers at a fixed price differential to the retail gasoline price. This figure was expected to rise to 600,000m3 by the end of this year, growing to 700,000m3 in 2017, when gasoline consumption was set to reach 34.9M m3.

EUROPE: EU laws requiring member states to use at least 10% of renewable energy in transport will be scrapped after 2020, according to EurActiv.

The European Commission (EC) would table a revision of the Renewable Energy Directive (RED) dropping the 10% target at the end of 2016, Marie Donnelly, director for renewables at the EC, was quoted as saying.

Therefore, a key question for the future was whether or not the EU would continue pushing biofuels in the form of an ‘incorporation obligation’ requiring minimum amounts of biofuels to be blended in automotive and aviation fuels.

The European Parliament (EP) has called for improved policies for biofuels post 2020 in its own report on the European Commission (EC)’s 2015 Renewable Energy Progress report, released in June.

Nidera reports loss stemming from rogue biofuels trader

D

utch trading firm Nidera BV reported its first loss in five years for 2015 due to a rouge biofuels trader losing nearly US$200M over three years, Bloomberg reported on 29 June.

Nidera is a division of state-owned China National Cereals, Oils and Foodstuffs Corporation (COFCO), which agreed to buy a 51% stake in it in February 2014.

Nidera accumulated a net loss of US$188M in biofuel trading in the three years to the end of 2015 or US$238M before taxes, Bloomberg said.

The main reason for the loss were “irregularities discovered in our biofuel trade business in Rotterdam, which led to a considerable overstatement of our stocks and forward book and to a substantial bad debt position,” Nidera said in its annual filing to the Dutch Chamber of Commerce.

“The responsible trader was dismissed and we stopped trading in the biofuels business,” Nidera said. “The matter was an isolated event in a noncore part of the business.”

Nidera restated accounts for 2014 and 2015

and changed its financial year. In the 15 months to the end of December, Nidera lost US$135M. That compared with profit of US$42.9M in the 12 months ending 30 September 2014, Bloomberg said.

According to the news agency, Dutch anti-fraud police have seized more than US$1.1M in real estate, cash in bank accounts, an equity portfolio and a car from a former trader who worked for a firm dealing in agricultural products and biofuels.

The Dutch prosecutor office said the man was suspected of “non-official corruption and forgery,” adding he earned approximately €1.2M between 2013 and May 2015 through gifts concealed to his employer.

The prosecutor did not disclose the identity of the trader and the case is ongoing.

Nidera said the case was related to its biofuel losses.

COFCO was expected to increase its stake in Nidera because the contract governing its 51% acquisition included a clause tying the stake to the Dutch trader’s performance, Bloomberg said.

Six airlines commended for sustainable biofuels

T

he US National Resource Defense Council (NRDC) released its 2016 Aviation Biofuel Sustainability Scorecard in June and found six airlines leading the field.

The NRDC surveyed 29 airlines that had indicated a commitment to adopting aviation biofuels, describing them as Leading, Advancing or Basic.

Air France/Royal Dutch Airlines (KLM); British Airways; Cathay Pacific Airlines; Scandinavian Airlines; South African Airways and United Airlines were found to be ‘leading’, characterised by broad involvement in creating

sustainable fuel supply chains, with solid commitments to use and purchase sustainable fuels and monitor and disclose performance.

Nine ‘advancing’ airlines had actively engaged in advancing supply chain development but most had not established firm use or purchase commitments.

They were Air New Zealand, Alaska Airlines, Etihad Airways, GOL Airlines, Japan Airlines, Qantas Airways, Thomson Airways, Virgin Atlantic and Virgin Australia Airlines.

Four ‘basic’ airlines were engaged in sustainable fuels

development but had not made the same level of commitments These were Aeromexico, Finnair, JetBlue Airways and Singapore Airlines. Nine did not respond to the survey.

The NRDC said the aviation industry now accounted for 2% of human-produced carbon dioxide.

“By 2050, this share is projected to grow to 3% – the fastest increase of any transportation sector.”

The industry had committed to carbon-neutral growth starting in 2020, and to reducing emissions by 50% from 2005 levels by 2050.

Fediol challenges palm oil biodiesel analysis by T&E

F

EDIOL, the EU vegetable oil and protein meal industry association, has called into question a recent analysis by green group Transport & Environment (T&E), which referred to data obtained from FEDIOL showing that 45% of all the palm oil used in Europe in 2014 was utilised as biodiesel (see Biofuel News, OFI June 2016).

“While the data shown by T&E were meant to be rough estimates for internal purposes, they were never published nor validated by FEDIOL,” the EU association said. “It is also worth noting that the basis for such figures is Oil World annual statistics.

Oil World provides figures on the different feedstocks used for biodiesel production on a five-year time span: in its latest available data, it found that biodiesel produced from palm oil rose from 1.45M tonnes in 2010 to 3.22M tonnes in 2014, a far lower increase compared to the figures mentioned by T&E.

“Moreover, the actual absolute quantity of palm oil going into biodiesel production is still relatively low if compared to other feedstocks: more than 60% of biofuels used in Europe come from European feedstocks – mainly rapeseed.”

FEDIOL said only certified sustainable palm oil could be used to produce biodiesel because the EU’s sustainability criteria prevented feedstocks for biofuels from being grown on deforested land, peat lands, or in areas with a high biodiversity value.

“Therefore, palm oil used for biodiesel [in the EU] cannot be linked to deforestation.”

FEDIOL said that if sustainable vegetable oils, including palm oil, were not allowed for biofuels production after 2020 (see Brief, left), this would only lead to more fossil fuel use in transport, since first-generation biofuels were the only sustainable mainstream alternative for fossil fuels in transport.

6 OFI – JULY/AUGUST 2016 www.oilsandfatsinternational.com

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BIOFUELS NEWS

Abengoa agrees to sell Rotterdam and four US plants roubled Spanish renewable energy firm Abengoa SA has agreed to sell its Rotterdam ethanol plant and four firstgeneration ethanol facilities in the USA as part of its restructuring to avoid bankruptcy.

Brussels-based ethanol production and trading company Alcogroup and its partners confirmed on 17 June that they had signed an agreement to buy Abengoa’s Rotterdam plant, which is currently closed.

“The Rotterdam plant is one of the largest European biorefineries with an annual production capacity of 480M litres of ethanol for fuel use and 360,000 tonnes of DDGS (Dried Distilled Grain with Solubles),” Alcogroup

Malaysia delays start of B10 biodiesel mandate

M

alaysia is delaying the start of its higher B10 biodiesel mandate by a month to July, and is aiming to complete full implementation

by August, Reuters reported on 20 June.

The government was in talks with petroleum companies about delaying the start to take into account the time needed for oil companies to reset blending ratios and procure enough palm methyl ester (PME), the Ministry of Plantation Industries and Commodities said in an e-mail to Reuters.

Malaysia had earlier said it would raise the country’s biodiesel mandate to 10% from the current 7% for the transport sector and to 7% for the industrial sector.

Reuters said blending to the new standards was expected to consume 709,000 tonnes/ year of palm oil against 500,000 tonnes under the current biodiesel mandate.

“The implementation of both B10 and B7 programmes requires coordination and cooperation from all petroleum companies, including Petronas, Shell, Chevron, Petron and BHP,” said the ministry in its e-mail.

Malaysia had 18 biodiesel plants in operation with 2.3M tonnes/year of capacity, the ministry said.

According to the Reuters report, palm oil traders, plantation companies and analysts had earlier questioned the feasibility of the government’s B10 programme, citing low crude oil prices and weak implementation policies as barriers to the mandate’s effectiveness.

said, adding that it aimed to restart the plant this year.

“Both the Rotterdam plant and our Alco Bio Fuel facility in Ghent, Belgium, can achieve significant greenhouse gas savings.”

Algogroup’s partners in the deal are commodity trader and distributor Groep Vanden Avenne Commodities and Vandema. Alco Bio Fuel is one of Belgium’s major biorefineries, processing grain (mostly corn and wheat) into bio-ethanol, DDGS, electricity, liquid CO2, and a number of other by-products, such as corn oil.

In the USA, Abengoa Bioenergy US Holdings and certain of its direct and indirect subsidiaries filed papers on 12 June at the US

Bankruptcy Court in St Louis for permission to auction four of its Midwestern ethanol plants in August for at least US$350M. Green Plains Inc has offered US$200M for Abengoa’s Mount Vernon, Indiana, and Madison, Illinois plants.

An affiliate of KAAPA Inc bid US$115M for Abengoa’s Ravenna plant in Nebraska; and BioUrja Trading has offered US$35M for its York, Nebraska plant.

Abengoa started insolvency proceedings in November last year and is selling its non-core assets, including all its first-generation biofuel plants, as part of a restructuring to avoid bankruptcy.

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myris announced that on 29 May, Cathay Pacific started a two-year programme of flights using its renewable jet fuel, reports Biofuels Digest.

A new Airbus A350-900 was flown from Airbus’ facility in Toulouse, France to Hong Kong using a 10% biofuel jet blend provided by Amyris, with industrial support from Total SA. “The 12-hour flight was the longest flight using a renewable jet fuel to date,” Amyris said, adding that all of Cathay’s upcoming A350900 aircraft deliveries over the next two years would use the Amyris/Total bio-jet fuel.

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BIOTECH NEWS

EC temporarily extends glyphosate licence

O

n 29 June, the European Commission (EC) temporarily extended EU authorisation of the controversial weedkiller glyphosate for 18 months, until the end of 2017.

Glyphosate is said to be the most widely applied herbicide around the world and is used with GM crops such as soyabeans, as well as with rapeseed in the EU. The licence for glyphosate-based herbicides in the EU was expiring on 30 June and was due to be extended for up to 15 years.

However, the EC’s Standing Committee on Plants, Animals, Food and Feed failed to produce a qualified majority for action and, in a compromise move, the EC temporarily

IN BRIEF INDIA: On 7 April, the Ministry of Environment, Forest and Climate Change agreed to exempt oilseeds and their products from the Biodiversity Act, which aims to preserve biological diversity in the country. Oilseed crushers and processors have opposed their crops being included in the act, as they may have had to pay charges ranging from 0.1-2% of their turnover for using any biological resources for commercial purposes.

BRAZIL: Monsanto announced on 27 June that it had signed a licensing agreement in which DuPont Pioneer will receive a royalty-bearing license for its Intacta RR2 PRO insect technology in Brazil. DuPont said it aimed to bring the technology to Brazilian growers as early as the 2017 selling season.

Intacta RR2 PRO soyabeans have become one of the cornerstone products in Monsanto’s next-generation soya platform and have been genetically engineered to resist pests and glyphosate.

extended the licence.

When making proposals for another vote, the EC said it would take into account the “extremely thorough scientific assessment of the active substance by the European Food Safety Authority (EFSA) and national agencies”.

The 18-month extension would also give it time to assess a report commissioned from the European Chemicals Agency to examine evidence on whether glyphosate caused cancer, the EC said.

In March 2015 the World Health Organization’s International Agency for Research on Cancer classified glyphosate as “probably carcinogenic in humans”.

However, in November 2015, the EFSA published an updated assessment report on glyphosate, concluding that “the substance is unlikely to be genotoxic or to pose a carcinogenic threat to humans”.

Glyphosate was first marketed by Monsanto in 1974 under the trade name Roundup.

GM herbicide-tolerant crops now account for about 56% of global glyphosate use, according to the report, ‘Trends in glyphosate herbicide use in the United States and globally’, published in Environmental Sciences Europe in February 2016. Since 1974 in the USA, over 1.6bn kg of glyphosate had been applied, or 19% of the estimated 8.6bn kg used globally.

Land O’Lakes to acquire Ceres for US$17.2M

L

eading US agribusiness and food company Land O’ Lakes Inc will be acquiring biotech firm Ceres Inc for US$17.2M, the companies announced on 17 June.

The acquisition is scheduled for completion in the third quarter of this year, upon which Ceres will become a wholly-owned subsidiary of Land O’Lakes.

Ceres had been repositioning itself to focus on food and forage opportunities and biotech traits

for sugarcane and other crops due to the economic challenges faced by the Brazilian ethanol industry, said Biofuels Digest.

“Our shift away from bioenergy and Brazil and into forages has been highly successful to date, and is culminating in this merger with a preeminent leader in forage crops,” said Ceres CEO and president Richard Hamilton.

“Land O’Lakes is interested in providing a holistic forage offering to our customers,

including alfalfa, corn silage and forage sorghum,” said Land O’Lakes president and CEO Chris Policinski. “This acquisition adds new advanced plant breeding and biotechnology to our Forage Genetics International (FGI) subsidiary and accelerates the process of bringing new forage solutions to existing and new markets.”

Land O’Lakes is one of the USA’s largest cooperatives with 2015 annual sales of US$13bn.

Monsanto sells US sorghum production business

M

onsanto Company announced on 16 June that it is selling its US sorghum production assets to a subsidiary of Remington Holding Company, its first spin-off of an entire crop segment since the sale of its sunflowerseeds unit to Syngenta in 2009.

It will also take its sorghum breeding business into a joint venture with Remington, a seed production provider. Monsanto will own a 40% stake in the venture, called Innovative Seed Solutions, and Remington the remaining 60%.

The companies have valued these transactions at approximately US$169.5M with a total cash payment of US$110.5M by Remington.

“We recognise that our sorghum business has

great potential to expand and grow both domestically and internationally,” said Mike Frank, vice president and CEO of Monsanto. “We believe by partnering with Remington in the joint venture, we can bring an increased level of focus into this crop space.”

Sorghum is one of the top five cereal crops in the world and can be grown as a grain, forage or sweet crop. Sweet sorghum has potential use as an ethanol feedstock and the USA is the world’s largest producer of grain sorghum, producing 597M bushels in 2015.

Monsanto said it would continue to sell sorghum seeds via its Asgrow, Dekalb and Channel seed brands and through regional seed dealer networks.

US Senate passes bill to create nationwide GM labelling standard

T

he US House of Representatives approved a bill on 14 July to create a national standard on labelling food made with GMOs, just a week after the US Senate passed the bill on 7 July.

The bill now needs to be signed into law by US President Barack Obama.

The bill would block states from issuing their own labelling laws and gives food manufacturers three options on how to inform consumers of the presence of GMOs in their products, said science.mag.org.

They can print their own labels; provide a label including a US Department of Agriculture symbol; or use a scannable code, such as a

smartphone-readable Quick Response (QR) code.

Gary Hirshberg, chairman of the Just Label It campaign, had earlier said he was pleased the plan would create a national, mandatory labelling system but disappointed that consumers may have to rely on smartphones to learn about their food.

“This proposal falls short of what consumers rightly expect – a simple at-a-glance disclosure on the package,” he said in a NPR News report.

Critics also said firms could avoid labelling foods containing oils and sweeteners made from GM crops because the bill required

labelling of foods containing genetic material modified by DNA techniques, and processing removed evidence of modifications, science. mag.org said.

Major food companies, such as Campbell Soup Co, Kellogg’s and General Mills, had already begun labelling some of their products ahead of Vermont state’s compulsory GM labelling law, which took effect on 1 July. The bill would over-ride Vermont’s legislation once it is signed into law.

Estimates from the Center for Food Safety showed roughly 75% of processed foods in the USA contained GM ingredients, NPR News said.

8 OFI – JULY/AUGUST 2016 www.oilsandfatsinternational.com

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EXTRACTION

OLEOCHEMICALS

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28/06/2016 20:17

TRANSPORT & LOGISTICS NEWS

IN BRIEF MOZAMBIQUE: The Mozambique government has approved a US$55M plan to restructure the state-owned Matola Silos and Grain Terminal Company (STEMA) – increasing its storage capacity from 45,000 to 110,000 tonnes, and setting up a new grain terminal in the northern port of Nacala with the capacity to store up to 100,000 tonnes of grain, reports allAfrica on 1 June.

STEAMA offers ship, rail and truck loading/unloading, grain cleaning, silo storage and fumigation for commodities including rice, soyabeans, soya flour, corn and wheat.

The Nacala grain terminal would also become a “strategic partner” of the Pro-Savana programme, a cooperative programme between Mozambique, Brazil and Japan to develop agricultural production in the north of the country.

The expansion of the STEMA storage facilities was being carried out alongside the dredging of the Maputo port access channel, from the current depth of 11m to 14.2m, allowing ships of up to 80,000 tonnes to enter the port, the report said.

CANADA: G3 Canada Ltd announced the official opening of two new high efficiency grain terminals in Pasqua, Saskatchewan, and Glenlea, Manitoba on 9 June.

Construction of both facilities began in 2014 and was completed earlier this year.

“Like all of G3’s new facilities on the Prairies, both G3 Pasqua and G3 Glenlea feature 134-car loop tracks capable of loading a full unit train while in continuous motion,” G3 said.

US soyabeans set to gain from newly expanded Panama Canal T

he newly expanded Panama Canal was officially opened on 26 June, marking the largest expansion to the canal since it was built in 1914.

The US$5.4bn project, which took some nine years to complete, includes new locks and a second lane along the canal, effectively doubling capacity between the Pacific and Atlantic oceans.

The Panama Canal Authority estimated that sailing times between Atlantic Ocean ports and Asia would be reduced by up to 16 days for ships that previously could not fit through the canal, and tonnage volumes would increase by an average 3%/year, up from 341M tonnes in 2015,

reported Reuters Anticipated growth in traffic had triggered a multibillion dollar dredging and building binge at ports in the USA, Caribbean and South America, said Bloomberg.

Gas and crude oil producers, container shippers and US soyabean farmers are some of the expected beneficiaries of the canal’s expansion.

The US Soy Transportation Coalition said moving to ships carrying up to 100,000 deadweight tonnes (dwt) of soyabeans from the current 76,000 dwt limit would add up to US$8M in value per vessel, while the cost of shipping grain from the US corn belt to Asia was expected to be reduced by 12%.

Russia-China grain partnership

R

ussia and China have agreed to invest US$1.1bn to build a grain terminal and 29 elevators in Russia to support exports of grain to China, reports Russia Beyond the Headlines (RBTH).

A Russian-Chinese intergovernmental commission agreed a memorandum to set up a major logistics corridor to support shipments, the report on 24 June said.

Construction of the terminal on the Zabaikalsk-Manchria line is expected to begin in September and take around 18 months to complete. The whole project will be carried out up to 2025.

“This is a big project … where it leads to will become apparent when they launch the first phase – the terminal – and Russian grain begins to move,” said Deputy Agriculture Minister Sergei Levin. “The more Russian grain China buys, the more elevators will have to be built to support the operations of this terminal.”

The RBTH report also said that a second memorandum had been signed in which state-owned China National Cereals, Oils and Foodstuffs Corporation (COFCO) would buy Russian grain through the new terminal. COFCO is China’s largest food processing, manufacturer and trader.

“The terminal is intended to handle up to 8M tonnes of grain, said Levin. “For now, we’re talking about the purchase of 2-3M tonnes of grain for the initial period of the terminal’s operation.”

“A customer of US soyabeans in Asia could save 35 cents/ bushel simply due to greater transportation efficiency,” said Coalition executive director Mike Steenhoek in a Reuters report.

The USA was the world’s second largest shipper of soyabeans to China, accounting for 30% of the 81.5M tonnes China imported last year, according to Chinese customs data.

Six hundred million bushels of US soyabeans or 44% of US soya exports are shipped through the canal each year, making soyabeans the top US agricultural commodity to use the canal, according to the United Soybean Board.

Agrocorp buys Veikle terminal

A

grocorp Canada announced on 10 May that it had agreed to buy the Veikle Grain Terminal in Cut Knife, Saskatchewan, Canada.

Located on a Canadian Pacific rail line, the terminal handles oilseeds, pulses and grains.

The company said it had expansion projects planned for rail and storage capacity in Canada, with rail expansion completion expected later this year, adding 80,000 tonnes of capacity.

We continue to accelerate our bulk vessel and containerised business in Canada, both in major grains and specialty crops,” Agricorp Canada said.

Agrocorp is a multinational trading company specialising in exporting, trading, and processing agricultural commodities.

Andersons Inc rejects bid for grain, rail and ethanol businesses

O

n 9 June, the board of loss-making Andersons Inc, USA rejected a new US$1.15bn bid by HC2 Holdings Inc to take control of its grain, rail and ethanol operations.

Andersons said that US holding company HC2’s 2 June proposal to buy its ethanol, rail and grain interests was even more unattractive than its 17 May bid of US$950M just for Andersons’ grain and rail businesses.

“HC2’s proposals ignore our value and represent an opportunistic attempt to acquire the company at a low point in the industry cycle,” said Michael Anderson, chair of Andersons Inc’s board of directors.

Grain companies, including Andersons’ larger rivals ADM and Bunge Ltd, have been suffering as a global grain glut has depressed crop prices and encouraged farmers to store their harvests, rather than sell them, according to Reuters.

Andersons has the ninth largest privatelyowned railcar fleet in North America, with 23,000 railcars and locomotives; and services for railcar leasing, repair, component manufacturing and barge leasing, it said.

It has four ethanol plants in Michigan, Indiana, Ohio and Iowa with a production capacity of 330M gallons for ethanol, 1M tonnes for distillers dried grains with solubles

(DDGS), and 86M pounds for corn oil. Its grain group has 32 grain facilities with 146M bushels of capacity, shipping 500M bushels of grain. In addition, it operates a plant nutrient group and a retail group.

Andersons’ CEO and president Patrick Bowe, told Reuters in May that he planned to significantly expand the company’s rail business and broaden a business handling organic and non-GM grain for overseas buyers and domestic food manufacturers.

The company already handled speciality soyabeans for export to Japan as part of a deal with Japanese trader Mitsui & Co, Reuters said.

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R E N E WA B L E M AT E R I A L S N E W S

Avril to produce rapeseed-based additive

F

rench oilseed group Avril announced a joint venture on 27 June that will invest US$72M over the next four years in producing a rapeseed-based resin ingredient for the wood panel industry.

Together with Israeli start-up firm Biopolymer Technologies and state investment bank BPI France, the Evertree joint venture aims to launch a pilot plant in Compiègne, France and to open a dedicated facility in 2018.

“Production capacity should be gradually increased to reach 50,000 tonnes/year by 2020,” Avril said.

According to Avril representatives at a press presentation, the venture would utilise rapeseed meal to create an additive that would reduce the amount of resin needed in wood panels by 20-30%.

This represented potential savings in resin use, which accounted for 50-60% of the cost of making wood panels. It would also allow wood panel manufacturers, particularly furniture makers, to reduce the use of formaldehyde, a traditional resin component classified as a cancer risk.

IN BRIEF GERMANY: Global Bioenergies GmbH said on 4 July that it had secured a €400,000 grant from the German Federal Ministry for Research and Education to produce a renewable gasoline additive. It would first produce ETBE, a molecule made from condensing ethanol and isobutene (derived from petroleum) and used in large volumes of some 3.4M tonnes/ year globally. It was aiming to produce renewable isobutene at a demonstration plant into large enough quantities of renewable isooctane for running preliminary engine testing at Audi.

USA: Greenyug LLC announced on 20 June that it would build an industrial scale ethyl acetate plant adjacent to ADM’s wet mill corn processing facilities in Columbus, Nebraska, which will supply the plant with bioethanol feedstock and other services.

The company has formed a subsidiary, Prairie Catalytic, that will own and operate the plant, construction of which will start in late 2016 with production set to begin about a year later.

Ethyl acetate – with a global market of around US$4bn – is Greenyug’s first product and is a speciality solvent used in products such as paints, coatings and pharmaceuticals.

THE AVRIL PROJECT WILL USE RAPESEED TO PRODUCE AN ADDITIVE FOR THE WOOD PANEL INDUSTRY

Evertree CEO Fabrice Garrigue said the joint venture aimed to sell its product at €2-7/kg, representing a turnover of some €200M at full capacity, Reuters reported.

Formerly known as Sofiprotéol, the Avril Group name was adopted in 2015, when a new structure was announced. Sofiproteol was founded in 1983 by oilseeds and protein crops

producers to assure market growth.

Avril’s industrial activities are now split between its oilseeds and animal products divisions. The oilseeds division is structured around four businesses – crushing and refining of oilseeds; human nutrition (primarily through major brands such as Lesieur and Puget vegetable oils); renewable energies (under the Diester biodiesel brand); and renewable chemistry (using molecules derived from oils and fats processing).

Avril’s animal products division has three businesses involved at every stage of the livestock breeding process. Nutrition and animal products (under the Sanders brand); human nutrition, which includes animal and food products processing, preparation and marketing (egg products under the Matines brand, but also pork and poultry products); and biosecurity and nutritional specialities.

Financing and development activities are led by Sofiprotéol, which partners some 100 companies in the oil and protein sectors, and supports companies by taking minority stakes and offering loans.

L’Oréal in project for renewable bio-isobutene plant

G

lobal Bioenergies GmbH and France’s Cristal Union and L’Oréal announced the launch of a 44-month project on 6 June focused on building the world’s first commercial renewable bioisobutene plant.

Isobutene is a platform molecule that can be converted into gasoline, rubber and various materials, and is used in various applications by the chemical and cosmetics industries.

According to Global Bioenergies, 15M tonnes of isobutene are produced every year from fossil resources and the company has been developing a fermentation process to produce isobutene from renewable resources, such

as residual sugar, agricultural and forestry waste, since 2008.

Laurent Gilbert, sustainable innovation director at cosmetics giant L’Oréal, said: “Isobutene is a molecule whose derivatives are widely used in cosmetics.

Accessing sustainable, biosourced products is in line with our commitments towards protecting the environment.”

Global Bioenergies CEO Frédéric Pâques said the project was now entering a new phase of development. “We are getting ready to run the process in our demo plant, the construction of which will be completed within the next few months in Germany.”

Global Bioenergies formed a 50:50 joint venture with

Cristal Union in 2015 called IBN-One, which has the mission of engineering and building a commercial bio-isobutene plant on one of Cristal Union’s site in France Cristal Union – which accounts for some 40% of French beet production – is working on the supply of sugar beet substrates and preparing the integration of the future production unit into one of its sites.

“This project is developing in the context of the impending end to sugar quotas, which is inspiring the entire European beet growing industry to identify additional outlets,” said Xavier Astolfi, deputy CEO of Cristal Union.

Gevo to supply isobutanol for marine and off-road use

R

enewable chemicals firm Gevo Inc announced on 16 June that it had agreed to supply US fuel distributor Musket Corporation with isobutanol for blending with gasoline, initially targeting the marine and off-road markets in western USA. “Musket is initially targeting retail pumps at Lake Havasu in Arizona, followed by other large marine markets such as Lake Powell, Lake Mead, as well as other large lakes in the western states,” Gevo said.

“Later, Musket also anticipates expanding distribution into its core Oklahoma market.”

The supply programme was expected to begin with railcar quantities of isobutanol (a railcar holds approximately 28-29,000 gallons), the firm said.

“Gasoline demand for the marine market in the USA is estimated to be approximately 1.7bn gallons/ year,” Gevo said.

Gevo’s technology uses synthetic biology and metabolic chemistry and chemical engineering to focus primarily on producing isobutanol, as well as related products, from renewable feedstocks.

Gevo has also developed technology to produce hydrocarbon products from renewable alcohols. It produces isobutanol, ethanol and animal feed at its fermentation plant in Luverne, Minnesota, and also operates a biorefinery in Silsbee, Texas, with South Hampton Resources, to produce renewable jet fuel, octane, and ingredients for plastics such as polyester.

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D IARY OF EVEN TS

9-10 AUGUST 2016

6-8 SEPTEMBER 2016

Malaysia-China Palm Oil Trade Fair & Seminar (POTS) VENUE: Tianjin, China CONTACT: Lim Teck Chaii, Malaysian Palm Oil Council; lim@mpoc.org.my or Desmond Ng E-mail: desmond@mpoc.org.my Website: www.mpoc.org.my/Palm_Oil_ Trade_Fair_and_Seminar_(POTS)_2016_ Announcement.aspx

3rd High Oleic Oils Congress VENUE: Toulouse, France CONTACT: FAT & Associés, France Tel: +33 567 339 206 Fax: +33 567 339 203 Website: www.higholeicmarket.com/hoc-2016

18-19 AUGUST 2016 Palmex Thailand VENUE: CO-OP Exhibition Centre, Surat Thani Thailand CONTACT: Fireworks Media (Thailand) Co Ltd Tel: +66 2513 1418 ; Fax: +66 2513 1419 E-mail: thai@asiafireworks.com Website: www.thaipalmoil.com

30 AUG - 1 SEPT 2016 US Soya Global Trade Exchange and Midwest Speciality Grains Conference and Trade Show VENUE: J W Marriott Indianapolis, USA CONTACT: Bruce Abbe or Susan Schmitt Midwest Shippers Association, USA Tel: +1 952 2536231 E-mail: staff@mnshippers.com Website: www.ussoyexchange.org

4-8 SEPTEMBER 2016 57th International Conference on the Bioscience of Lipids (ICBL) VENUE: Le Majestic Congress Centre Chamonix, Mont Blanc, France CONTACT: Evelyne Roudier, Bureau des Congres de Chamonix, France Tel: +33 450 537550 E-mail: evelyne.roudier@chamonix.com Website: http://icbl.chamonix.com

4-9 SEPTEMBER 2016 FOSFA Basic Introductory Course VENUE: Royal Holloway, University of London Egham, Surrey, UK CONTACT: Anna Baran, FOSFA International UK. Tel: +44 20 7283 5511 E-mail: anna.baran@fosfa.org Website: www.fosfa.org/events/ middle-managers-course/

5-9 SEPTEMBER 2016 12th Congress of the International Society for the Study of Fatty Acids and Lipids (ISSFAL) VENUE: Stellenbosch University, Cape Town South Africa CONTACT: ISSFAL Congress Organiser Tel: +1 202 5244000 ; Fax: +1 202 8333636 E-mail: admin@issfal.org Website: www.issfalcongress.com

7 SEPTEMBER 2016 4th International Conference on “Black Sea Oil Trade” VENUE: Hilton Kyiv Hotel, Ukraine CONTACT: Julia Feofilova, UkrAgroConsult Ukraine. Tel: +38 44 4514637 E-mail: conference@ukragroconsult.org Website: http://bso.blackseagrainconference. com/en

15 SEPTEMBER 2016 High-Oleic Market: Evolution of Development VENUE: Hotel Alfavito, Kiev, Ukraine CONTACT: APK-Inform, Ukraine Tel: +380 562 320 795, +380 562 321 595 E-mail: globoil@apk-inform.com Website: www.apk-inform.com/en/ conferences/sunflower2016/about

18-21 SEPTEMBER 2016 14th Eurofedlipid Congress VENUE: International Convention Center (ICC) Ghent, Belgium CONTACT: Eurofedlipid, Germany Tel: +49 69/79 17533 ; Fax: +49 69/79 17564 E-mail: info@eurofedlipid.org Website: www.eurofedlipid.org/meetings/ ghent2016/

20-22 SEPTEMBER 2016 9th Biofuels International Conference VENUE: Ghent, Belgium CONTACT: Tracy Whitehead, Biofuels International, UK Tel: +44 20 8687 4138 E-mail: tracy@biofuels-news.com Website: www.biofuels-news.com/conference

21-23 SEPTEMBER 2016 Globoil 2016 VENUE: Grand Hyatt, Goa, India CONTACT: Tefla’s, India Tel: +91 22-26304816/17 E-mail: events@teflas.com/teflas@gmail.com Website: www.globoilindia.com

21-23 SEPTEMBER 2016 Fat and Oil Industry VENUE: Kyiv Expo Plaza Exhibition Centre, Kiev, Ukraine. CONTACT: J.V. Agroinkom, Ukraine Tel/Fax: +38 044 593 1901 E-mail: info@agroinkom.com.ua Website: www.agroinkom.com.ua/ru/ maslo-zhirovaya

28-29 SEPTEMBER 2016 7th International Oilseeds & Oils 2016 VENUE: Barcelona, Spain CONTACT: APK-Inform, Ukraine Tel: +380 562 320 795, +380 562 321 595 E-mail: globoil@apk-inform.com Website: www.apk-inform.com/en/ conferences/oo2016/about

4-7 OCTOBER 2016 World Conference on Fabric and Home Care VENUE: Shangri-La Hotel, Singapore CONTACT: AOCS Meetings Department, USA Tel: +1 217 3592344; Fax: +1 217 3518091 E-mail: meetings@aocs.org Website: www.mpoc.org.my/Palm_Oil_ Trade_Fair_and_Seminar_(POTS)_2016_ Announcement.aspx

12-13 OCTOBER 2016 Malaysian Palm Oil Trade Fair & Seminar VENUE: Kuala Lumpur, Malaysia CONTACT: Mohd Izham Hassan, Malaysia Palm Oil Council. E-mail: izham@mpoc.org.my or kharibi@mpoc.org.my; Website: www.mpoc. org.my/Palm_Oil_Trade_Fair_and_Seminar_ (POTS)_2016_Announcement.aspx

17-21 OCTOBER 2016 National Renderers Association (NRA) 83rd Annual Convention VENUE: The Ritz-Carlton Amelia Island, Florida USA CONTACT: NRA, USA. Tel: +1 703 6830 155 E-mail: co@martycovert.com Website: www.nationalrenderers.org

19-21 OCTOBER 2016 OFIC 2016 VENUE: Hotel Istana, Kuala Lumpur, Malaysia CONTACT: OFIC 2016 Secretariat, c/o MOSTA Malaysia. Tel: +603 7118 2062/2064 E-mail: mosta.secretariat@gmail.com Website: www.mosta.org.my

21-22 OCTOBER 2016 PORAM Annual Forum, Dinner, Golf Challenge LOCATION: One World Hotel, Bandar Utama Selangor Darul Ehsan, Malaysia CONTACT: PORAM, Malaysia Tel: +603 7492 0006 E-mail: poram@poram.org.my Website: http://poram.org.my/p/ wp-content/uploads/2014/01/PORAM-annualevent-A4-2016.pdf

For a full listing of oils and fats industry events, go to: www.ofimagazine.com

12 OFI – JULY/AUGUST 2016 www.oilsandfatsinternational.com

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DI ARY O F E V E NT S

www.dsengineers.com

27-28 OCTOBER 2016 Palm Oil Latin America, 16th Practical Short Course: Advanced Oil Processing – Palm, Palm Kernel and Coconut Oil Processing and Food Applications VENUE: Hotel Estelar La Fontana, Bogotá, Colombia CONTACT: Smart Short Courses. Tel: +32 51 311 274 or +1 979 216 1210 ; E-mail: info@smartshortcourses.com Website: www.smartshortcourses.com/oilprocess16/index.html

7-10 NOVEMBER 2016 19th Annual FO Lichts World Ethanol & Biofuel VENUE: Steigenberger Wiltcher’s Hotel Brussels, Belgium CONTACT: Informa Agra Customer Services, UK Tel: +44 20 3377 3658 ; Fax: +44 020 3377 3659 E-mail: registrations@agra-net.com Website: www.worldethanolandbiofuel.com

10 NOVEMBER 2016 FOSFA Annual Dinner VENUE: Battersea Evolution, London, UK CONTACT: Gemma Hale, FOSFA, UK ; Tel: +44 20 7283 5511 E-mail: contact@fosfa.org ; Website: www.fosfa.org

14-16 NOVEMBER 2016 Oilseed and Grain Trade Summit/Organic & Non-GMO Forum VENUE: Hyatt Regency Hotel, Minneapolis, USA CONTACT: Sule Basa, HighQuest Partners, USA E-mail: sule.basa@gmail.com Website: www.oilseedandgraintrade.com or www.ongforum.org

23-25 NOVEMBER 2016 12th Indonesian Palm Oil Conference (IPOC) and 2017 Price Outlook VENUE: Nusa Dua, Bali, Indonesia CONTACT: GAPKI, Indonesia E-mail: info@gapkiconference.org Website: www.gapkiconference.org

1-3 DECEMBER 2016 7th FOI 2016, Fats & Oils Istanbul/FGI 2016, Feeds & Grains Istanbul VENUE: Ceylan InterContinental, Istanbul, Turkey CONTACT: Agripro, Turkey. Tel: +0 212 236 0345 E-mail: info@fatsandoilsistanbul.com.tr ; info@agripro.com.tr Website: www.fatsandoilsistanbul.com.tr ; www.agripro.com.tr

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29-30 DECEMBER 2016 ICBB 2016: 18th International Conference on Biofuels and Bioenergy VENUE: Paris, France Website: www.waset.org/conference/2016/12/paris/ICBB

27-30 MARCH 2017 12th Annual World Bio Markets VENUE: The NH Hotel Krasnapolsky, Amsterdam, the Netherlands CONTACT: Green Power Conferences, UK. Tel: +44 20 70990600 Website: www.worldbiomarkets.com

30 APRIL-3 MAY 2017 108th AOCS Annual Meeting VENUE: Rosen Shingle Creek, Orlando, Florida, USA CONTACT: AOCS Meetings Department, USA. Tel: +1 217 6934821 E-mail: meetings@aocs.org; Website: www.annualmeeting.aocs.org 13 OFI – www.oilsandfatsinternational.com

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Engineers & Contractors Brussels • Belgium Tel.: +32 (0)2 634 25 00 Fax: +32 (0)2 634 25 25 info@dsengineers.com

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I NTE RN ATION AL M ARKET REVIEW

Palm vs soya for price direction CHARTS: JOHN BUCKLEY

Oil markets have been more stable price wise in the last season.

However, soya is not likely to continue its upward trajectory and palm is experiencing volatility – a situation which is not helped by China’s diminished imports and palm oil production being well down compared to last year. John Buckley writes FIGURE 1: WORLD VEGETABLE OIL STOCKS ARE IN DECLINE

D

iverging price trends among the main components of the oilseed complex have persisted into the second quarter of 2016. Soya has had a remarkable bull run on crop weather issues but palm oil is still disappointing those who predicted a price renaissance coming from tight supplies in this market. Overall, oil markets have had a more stable season, price-wise, than has been seen over much of the past decade, although the strong US dollar continues to mask the real cost for oilseed and oil importing countries.

When the current season started with a record global soyabean stock carryover, the CBOT futures market suggested prices would be under US$9/ bushel by mid-2016. Thanks to a 5.5M tonne shortfall in South American output, the market has instead been trading as high as US$12/bushel.

Meanwhile palm oil continues to underperform forecasts, held back by weak export trade and a less dramatic than expected impact on Asian production from the El Niño cycle (so far – there are still a few months to run before a final verdict).

Rapeseed and sunflower oils, meanwhile, continue

to be market followers of the two largest oils. Both are still underpinned by their less than stellar 2015 crops and by sliding carryover stock forecasts for the close of 2015/16 this September. However, both are restrained by the broader market backdrop of adequate global oil supplies in total, and there is hope of some crop recovery coming later this year for sunflower, at least.

Ironically, while the CBOT soyabean market has been adding value, soya oil has been a large factor in this restraint on oil prices. CBOT soya oil prices have actually fallen in the past few months as buoyant crush for meal has released more supplies that have to seek outlets. The premium on soya oil over palm oil on international markets has remained much thinner than usual, in turn helping to keep prices of palm oil, the largest internationally traded item, in check.

Soya unlikely to continue moving up Can soyabeans continue their upward trajectory in the final quarter of the 2015/16 season and beyond?

Various factors suggest that is less likely now.

One is the likelihood that Latin American competition will step up as delayed harvests make a bigger impact on world markets. Brazil’s crop, now seen around 96/97M tonnes, is about 3M-4M tonnes lower than expected a few months ago, before drought affected some areas of the soya belt. But that is still close to last year’s record crop and far more than the country usually produces.

Meanwhile, Argentina’s crop has stopped sliding as rains and floods ease. It may even be slightly under-rated now, around the 56.5/57M tonne mark (4M-5M tonnes under the previous year’s, but supplemented by fairly large carryover stocks for the second year running). However, the quality of crops affected by wet harvest weather is yet to be fully surveyed.

As it contemplates a possible slowdown in its recently fast export trade, the USA also faces a potentially larger 2016 crop than earlier estimated.

The USDA’s June plantings report has added almost 1.5M acres to its March farmer survey and, if yields reach the ‘trendline’ 46.7 bushel/acre, it implies a potential 105M tonnes rather than the earlier forecast 103.4M tonnes. Also, US 1 June stocks were larger than expected, confirming earlier predictions that the new season will start with twice as much US carryover (about 10M tonnes) as the past one – which is hardly bullish.

On the demand side, the USDA’s early views on the 2016/17 season suggest world soyabean import demand will rise by about 5.5M tonnes – about 4M tonnes of that will come from China, the bulk of the rest spread over smaller importing countries. The USA hopes to win a big chunk of that increase but it may face resurgent competition from the Latin Americans, whose combined output is also expected to recover next season by about 6M-7M tonnes.

In terms of soya crush, the global increase forecast by the USDA of about 9M tonnes is again mostly in China (+5M tonnes and import-fed) and India (+3M tonnes – if its own crop does bounce back by at least that much with a better monsoon).

Other leading crush centres – the USA, Brazil, Argentina and Europe are all seen showing either marginal gains or no growth in soyabean crush – some are even seen retreating a bit from this season’s level.

The huge global soyabean supply has enabled soya oil to play a larger part than usual in meeting growth in global vegetable oil consumption for the past two years – accounting for about 58% of that extra 10M tonnes of total oil use versus palm’s 42% contribution. Normally, palm plays the larger role in meeting expansion.

First estimates for 2016/17 suggest world vegetable oil consumption will grow by about 5.5M tonnes, of which palm will again take about 48% while soya’s share of growth slips back to about 32%. At least that’s the USDA view. If global bean production does turn out larger than expected, that latter percentage may be raised.

Overall, there is little here to justify a persistent uptrend in soyabean futures. The scenario is perhaps starting to be recognised by the funds which recently cashed in a lot of their bets on that happening and, along with some needed US wet weather, forecasts seemed to be putting the price rise into steep reverse in mid-July. That said, we still have to see what the later summer weather brings with a current 30-90 day forecast for heatwaves capable of taking the shine off current buoyant US crop estimates.

14 OFI – JULY/AUGUST 2016 www.oilsandfatsinternational.com

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I NT E RN ATION AL M ARKET REVIEW

FIGURE 2: VEGETABLE OIL PRICES* (MONTHLY AVERAGES)

FIGURE 3: LATIN AMERICAN SOYA CROPS TO BOUNCE BACK IN 2016/17

less tight than in Agriculture & Agri-Food Canada’s June forecast (which saw the season finishing with a mere 700,000 tonnes versus the previous year’s 1.35M tonnes). The potentially looser scenario, along with a weakening soya complex in the first half of July, has taken the Winnipeg futures market well off its earlier 10-month highs – as OFI goes to press, recording a decline of almost 13%.

In Europe, crop forecasters mainly seem to agree now that the harvest will finish up around the 21.5/22.5M tonnes level, depending on weather over the next few weeks – not a great deal different from last year’s result. Due to stock drawdowns this season, however, EU crush is expected to be lower, leading to less oil use in the industrial (mainly biodiesel) sector. Not much supply relief is expected from the CIS crops, currently expected to drop from last year’s 1.74M tonnes to 1.3M tonnes in the Ukraine and rise about 100,000 tonnes to 1.1M tonnes in Russia. However, Australia’s exportoriented crop could increase by about 10% to some 3.3M tonnes in 2016/17, some of that finding its way to Europe. Globally, rapeseed production will probably be similar to this season’s but, with stocks lower, overall supply points to another fairly tight season. So far, though, prices of the oil have been held in check by the adequacy of vegetable oil supplies overall and lower prices for palm and soya.

Sunflower supply prospects improving

Palm in the doldrums still The last few months have been a fairly volatile period for palm oil prices. After a series of failed rallies, the Kuala Lumpur futures benchmark recently hit a seven-month low when Malaysian June exports were unofficially estimated to have dropped by at least 6% on top of a near 9% decline in May. Second largest importer China’s diminished offtake has been keenly felt. In the January/May period, it shipped in just 510,500 tonnes of Malaysian palm oil – roughly half of what it took in the same period last year. Top customer India has taken about 11% more in the same period, about 1.26M tonnes, but among other key importers, trends have been mixed. Japan and Europe have taken somewhat less and Bangladesh and Turkey considerably more (the latter thought to be linked to Turkey’s refugee intake). Overall, imports totalling 6.16M tonnes for the January/May period are running neck and neck with last year’s at this time.

Production, on the other hand, is about 16.8% down in January/May versus the first five months of 2015, resulting in a drawdown of Malaysian stocks to 1.65M tonnes at the end of May, their lowest level in over five years. However, some analysts think stocks could start to recover in coming months as output picks up seasonally in the third quarter of 2016 and exports remain subdued in the post Ramadan period until the seasonal rally before

the Asian subcontinent’s surge in buying for the autumn Diwali festival.

In dollar terms, Kuala Lumpur palm futures have taken an even bigger hit – as much as 19% compared with the spring highs. But, of course, the dollar is worth a lot more than at this time last year and, in the post-Brexit investor shift back to ‘safe havens,’ it seems likely to remain strong versus importer currencies.

The biodiesel factor has yet to play out fully in the palm oil market. Malaysia delayed the start-up of an expanded (10%) palm blend but Indonesia cited greater use in this sector and in its domestic food industries as a factor in its own 16% decline in exports during May (to about 1.76M tonnes).

The weak price response to date suggests markets aren’t getting too excited about this at this stage.

High estimates for Canadian rapeseed Global rapeseed supplies might turn out a bit better than expected earlier after Canada’s government raised its planted area estimate by 700,000 to 20M acres – similar to last year’s final number, if not quite up to some of the highest estimates recently circulating in the Canadian trade. If recent ideal weather continues to promise good yields, farmers there could be looking at another 17M tonnes plus crop, rather than the 15.4M tonnes earlier forecast.

That could mean exports closer to 9.5M tonnes than the earlier 8M tonnes and/or ending stocks

If predictions from the USDA and national governments are correct, it should be a better supplied season ahead for sunflower oil. Globally, production is expected to increase by about 3M tonnes or 7.7% to over 42M tonnes, thanks to increases in Russia (9.5M tonnes versus last year’s 9.2M tonnes), Ukraine 13M tonnes versus 11.3M tonnes and the EU (8.4M tonnes versus 7.55M tonnes). Argentina’s output is also expected to advance (harvest 2017) from 2.5M tonnes to 2.8M tonnes.

A bigger crush and some drawdown of carryover stocks from last year is expected to help sunflowerseed crush increase by about 2.5M tonnes, producing about 1M tonnes more sunflower oil (at 16.2M tonnes). The better supply outlook has contributed to crude sunflower oil prices coming down recently from around US$880/tonne to US$845/tonne.

Overall, edible oil prices have been fairly restrained in the last few of months after a brief run-up when markets were fretting about soyabean crop losses in Latin America, a possible La Niña heatwave affecting the US soya crop and lingering doubts about palm oil’s readiness to embark on its seasonal production cycle after last year’s droughts.

Stocks of oilseeds, 90% of them soyabeans, will continue to recede from the burdensome levels of 2014/15 (92.6M tonnes or 21% of crush needs).

Stocks of vegetable oils in total are also seen reducing from the 2013/14 high of over 21M tonnes to about 17M tonnes. However, price behaviour over recent months suggests the markets do not perceive this as a tight balance for supply/demand.

Indeed, over the last month the closely followed FAO index of food commodities – which noted some quite steep gains in sugar, cereals, meat and dairy products – actually recorded a drop of about 0.8% for vegetable oils in total, making it the weakest major food sector.

John Buckley is OFI’s market corrrespondent

16 OFI – JULY/AUGUST 2016 www.oilsandfatsinternational.com

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A STRONG GROWTH AREA FOR BIOLUBRICANTS IS THE WIND TURBINE MARKET AS THE GEARBOXES USE A LOT OF LUBRICANT, WHICH LEAKS INTO THE SEA

Growing green biolubricants G Biolubricants made from feedstocks such as passion fruit seeds and waste cooking oil have great potential in traditionally ‘green’ industries and maritime activities.

Although the biolubricant market is growing, its potential still remains untapped.

Andrew Burnyeat writes

lobal biolubricant sales should reach US$2.97bn by 2020, according to US research firm MarketsandMarkets, with hydraulic fluids driving the sector.

The US market is the fastest-growing region, while Europe retains the largest market share (around 45%).

However, although research and development projects have unveiled and unleashed the vast growth potential for this sector, the struggle remains to develop sufficient quantities of raw material to enable industry to replace fossil oilbased lubricants in a cost-effective manner. This, however, is something industry is keen to achieve as the weight of global environmental legislation and guidelines promoting biolubricants increases rapidly.

Allen Barbieri is CEO of Biosynthetic Technologies, based in Irvine, California. His company has developed patents from the US Department of Agriculture (USDA), which invented a way to make synthetic biolubricants from vegetable oil.

Its researchers essentially invented a new molecule which behaves like a petroleum-based molecule but which is in fact bio-based. Vegetable oil is broken down into fatty acids, from which the synthetic molecule is made. Products are then

made from these new structures. Examples of vegetable oils used include soya oil and palm oil – less expensive than petroleum-based synthetic oils.

The cost of breaking down the oils is also much less than the processes involved in breaking down crude oil.

The company now has 35 patents with 20 pending. It makes synthetic lubricants, which are cleaner, cheaper, non-toxic, biodegradable and more environment-friendly than their petroleumbased counterparts.

“The products out-perform oil-based lubricants in some areas, such as engine-cleanliness,” Barbieri says. The oxidative stability of his company’s products is two to three times higher than petroleum-based products because biolubricants do not become so viscous, he adds.

Growth areas A strong growth area for such lubricants is to be found in the wind turbine market. As an industry founded on ‘green’ principles, it has embraced green biolubricants, says Barbieri. “The gearboxes used in wind turbines use a lot of oil lubricant and this leaks into the sea. Using a biolubricant is much more appropriate for that industry,” he says. Other growth areas include maritime industries, again

18 OFI – JULY/AUGUST 2016 www.oilsandfatsinternational.com

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R E NE WAB L E R E SO UR CES

because of increasing pressure on keeping the seas clean. Both industries are subject to increasing regulation on biodegradability of products used in their operation.

Such regulations and guidance are also feeding their way into fuel quality and carbon emissions policies in general. And while companies are responding, they are often increasing the proportion of biolubricants used in their products, rather than making them completely petroleum-free, Barbieri adds.

The motor oil industry is looking at increasing the levels of biolubricants in their products from as low as 15% to as high as 85%, says Barbieri.

Other applications include grease and metalworking fluids. One of the reasons behind this is that “a mist occurs in a factory when metal is being worked on – if this mist is vegetable-oil based, it is far less harmful to the workers than an oil-based mist,” Barbieri says.

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Demand is rising, but production is struggling to keep up. Biosynthetic Technologies has linked up with the Louisiana, US-based chemical manufacturer Albemarle Corporation to build a demonstration plant for bio-based products, with a full-scale plant scheduled to be built by the end of this year. It would be able to produce 20M gallons/year, which is 0.2% of global market share.

“The potential for growth is incredible,” says Barbieri. This is appreciated in Europe too, where Germany-based company Klüber Lubrication has developed the Klübersustain series of bio-based lubricants, and it claims they perform at least as well as petroleum oil-based lubricants.

In March this year, it launched the new grease Klüberbio LG 39-701N for manufacturers and operators of anchor winches, jack-up systems and other on-board marine equipment. The products are deemed to be compliant with the Environmentally Acceptable Lubricant (EAL) standard developed by the USA’s Environmental Protection Agency (EPA) and allows the operation of open drives (such as belt drives) at temperatures as low as minus 30°C. It is made “from 100% renewable resources and is easily biodegradable,” says Dirk Fabry, business development manager for the marine, oil and gas unit at Klüber.

Also in Europe, the European Union (EU)-funded VOSOLUB project led by Carine Alfos, director of innovation for the French Institute for Fats and Oils (ITERG – Institut des Corps Gras), has helped advance the goal of making biolubricants commercially viable.

“Regulation, environmentally-friendly technology and more investment in research has made it more likely that biolubricants can replace more of the oilbased lubricants over the longer term,” says Alfos.

She has made a series of predictions on the use of biolubricants by 2020 – the estimates vary according to how much money institutions, governments and companies put into research and development. “This could make as much as a 50% difference in the overall use of biolubricants,” she adds.

One of the project’s backers, UK company RS Clare & Co, has developed new technology to enhance the performance and stability of its marine grease products. The company’s BioMarine range has been granted an EU Ecolabel. Managing director Paul Vann says the range is between 75% and 90% renewable and contains no toxic additives.

“They also comply with the [USA’s] Vessel General Permit Regulation 2013, which says marine users have to use an Environmentally Acceptable Lubricant (EAL) – mostly in cases where leaking into the sea is a possibility,” he continues.

As for the requirements of these standards, the EPA defines an EAL as “not being sheen-forming; containing at least 75% readily biodegradable components, with the remainder being non bio-accumulative; and meeting aquatic toxicity levels of at least 1,000 milligrammes/litre, tested against algae, arthropods and fish.”

Spokesman for the European Commission’s directorate general for the environment says the EU Ecolabel is “awarded to manufacturers of hydraulic fluids, tractor transmission oils, greases and stern tube greases; chainsaw oils, wire rope lubricants, stern tube oils; two-stroke oils and industrial and marine gear oils.”

Global French oil giant Total SA is one of the companies Biosynthetic Technologies works with. Total produces its own range of biolubricants, especially for machines that will leak oil into the environment, such as chainsaws, 2-stroke engines, formwork release agents, greases, hydraulic oils, gearboxes and axles. It recommends using biolubricants over oil-based products in areas where environmental protection is a “constant concern”, such as the sea, mountains, farmland or forests.

“Our complete range of biolubricants takes care of situations and machinery applications which can pose a direct risk to the environment through leakage or

19 OFI www.oilsandfatsinternational.com

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R EN EWABLE RESOU RC ES

spillage. Our company is acutely aware of the need for environmental protection in this field,” a Total spokesperson says.

Seeds high in unsaturated fatty acids

biolubricants. For example, used cooking oil has been identified as a product that could be refined and altered to convert it into various biolubricants for the automotive sector. Furthermore, it has been generally accepted by researchers that by 2030, 15% of all lubricants used will be biolubricants.

Andrew Burnyeat is a freelance writer

IMAGE: MUSHY / ADOBE STOCK

Globally, some 40M tonnes of lubricants are used annually – and as much as half of that ends up in the rivers, on land or in the sea as pollutant chemical waste, according to the US EPA. It has actively promoted the use of biolubricants as a result.

Back in 2011, it acknowledged the minuscule size of the biolubricants industry and issued a regulation creating the EAL in 2011. This sparked a wave of production and commercial interest in the field, not only in marine applications, but also in the fields of automobiles and wider industry.

Academic research in this field is more intense than ever. Scientists have discovered that palm oil, canola, mahua, sunflower, cottonseed, soyabean and, latterly, passion fruit seeds, thistles and waste cooking oil can be used to make environmentallyfriendly lubricants.

Elsewhere, at the Federal University of Rio Grande do Norte in Natal, Brazil, researchers discovered that approximately 85% of passion fruit and moringa seed oil is made up of unsaturated fatty acids – the base material now used by Biosynthetic Technologies and others to make their products.

Moringa is now successfully used in biolubricants. Successful experiments in July 2015 at the university were performed by epoxifying vegetable oils through the use of performic acid,

demonstrating their ability to replace commercial fossil-based lubricants.

Because such studies are so recent, commercial use of biolubricants involving many materials is still in its infancy. Analysts at Grand View Research Inc, based in San Francisco, reported in April that crude palm oil production has grown partly due to the growth in lubricant applications.

Grand View researchers studied hydraulic biolubricants using vegetable oils epoxidised via performic acid. They found that the two seed oils can replace commercial mineral-based lubricating fluids.

Meanwhile, more green shoots – if spiky ones – are to be found in Sardinia, Italy, where producer Matrica SpA has unveiled plans to redevelop cardoon seed oil for use in biolubricants, having initially used them in bioplastic products. A cardoon is a thistle-like plant. The biolubricants made from this oil dissolve harmlessly in the sea. Matrica has signed an agreement with local farmers and others in order to build up supplies of the oil so that it can be used commercially. The company says it is about nine months away from achieving this goal: “We are working with the local farmers to increase the production of thistles. Thistles do not consume water and can grow on dry areas. As well as generating animal feed, it can make the raw materials to produce environmentally friendly products like the biolubricants”.

Other techniques are being developed to further extend the use of vegetable and plant oils as

MATRICA SPA UNVEILED PLANS TO REDEVELOP THE THISTLE-LIKE CARDOON’S SEED OIL FOR USE IN BIOLUBRICANTS

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JEBEL ALI PORT HAS A CURRENT CAPACITY OF 19M TEU, WHICH WILL BY INCREASED TO 22.1M TEU BY 2018 WHEN CURRENT EXPANSIONS ARE FINISHED

Gateway to the Middle East The port of Jebel Ali in Dubai is the largest man-made habour in the world and a busy centre for oilseed and vegetable oil trade across the region.

Rose Hales writes

T

he UAE is an important hub for oilseeds and edible oil trade and is home to Jebel Ali port – famously the largest man-made harbour in the world and the largest marine terminal in the Middle East. It is also the ninth largest container port worldwide. Situated in the Jebel Ali Free Zone 35km southwest of Dubai, the port was opened in 1979 and is operated by state-run Dubai Ports World (DP World).

The busy port receives 90 weekly services, which connect more than 140 ports worldwide. By the time current expansions are finished in 2018, the port will have a total handling capacity of 22.1M TEU (Twenty-foot Equivalent Unit – equal to a standard shipping container).

The port’s container terminal has 23 berths and 78 cranes at the moment. The largest vessel handled by the port to date is the CMA CGM Marco

Polo – a 16,000 TEU container vessel.

In 2013, Jebel Ali celebrated a milestone in the handling of 100M containers passed through the harbour, which was achieved between January 2003 and January 2013.

The port has also been described by DP World as being “the most modern technology-driven facility of its kind”, including features such as a gate automation system, paperless processing of cargo documentation and the Dubai Trade online platform.

Location within the UAE The UAE is a nation with a population of 9.2M as of 2013; it is made up of seven emirates, Abu Dhabi (the capital), Ajman, Dubai, Fujairah Ras alKhaimah, Sharjah and Umm al-Quwain.

The port is located within the Jebel Ali Free Zone (Jafza) in Dubai, a free economic zone in which foreign-owned businesses can effectively run an “offshore” enterprise; the port’s location within the freezone is a significant factor in its success.

The country imported 604,000 tonnes of vegetable oil in 2014/15 and exported 711,000 tonnes, according to Oil World figures. In terms of oilseeds, it imported 1,033,000 tonnes in 2014/15 and exported 27,000 tonnes. The figures show the UAE is a major destination for vegetable oils and oilseed – as well as an important hub for the

import and export of commodities.

Imports of oilseeds include soya, cottonseed, groundnut seed, rapeseed, sesame seed and canola. Oil exports from the UAE include soyabean, sunflowerseed, rapeseed, corn and palm oils and butter.

According to Index Mundi’s latest statistics, the UAE exported US$258M worth of animal and vegetable fats and oils and their cleavage products in 2008, in the same category it imported US$783M in 2008.

Further statistics obtained from Index Mundi say the UAE produced 345,000 tonnes of rapeseed oil in 2015 and it is projected to produce 333,000 tonnes in 2016. For soyabean oil the figures are much smaller, although in 2006 the UAE hit a record high of 98,000 tonnes of rapeseed oil being produced. By 2015 it had dropped to 9,000 tonnes, with similar figures expected for 2016.

Expansion of the port Although already the largest man-made harbour in the world, Jebel Ali port is being expanded to accommodate more vessels and a greater number of goods. Building of the port’s fourth terminal is currently underway. Terminal 4 is located on a reclaimed island north of Terminal 2, allowing further expansion of capacity

in the future, in line with market demand.

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The Middle Eastern arm of the Royal BAM Group, BAM International is working on phase one of Terminal 4. The expansion will include a 400m long bridge and causeways, 2.2km of quay walls built to a depth of 18m to accommodate mega container vessels. The first phase of the expansion is due to be completed by 2018, according to Construction Week Online. In addition, cargo handling capacity will be expanded to 3.1M TEU in phase one, increasing the overall TEU capacity of the port to 22.1M. It will add over 110 cranes, including 13 of the world’s largest and most modern quay cranes, which can be operated remotely from a control room.

SOLAS regulation The IMO’s Maritime Safety Committee (MSC) approved changes to the Safety of Life at Sea (SOLAS) convention in May 2014, which came into force on 1 July 2016. The convention changes are in regards to mandatory container weight verification on shippers. Under the new convention, all container weights will need to be verified before containers can be loaded onto the ships.

On 5 May, DP World Jebel Ali announced their solution to the regulation change, saying, “DP World will provide a weighing system that will be integrated with the terminal operating system and the VGM (verified gross mass), and will be available to the shipping line and shipper on Dubai Trade.

All vessel operational documents i.e. discharge/load lists and the bay plan will need to have the VGM. However, the customer must continue to provide the declared weight as per the existing process.”

In terms of fees, in May DP World said it planned to charge the shipper AED65 (US$18) per container for providing VGM.

Enhancing safety and security at the port As the largest marine terminal in the Middle East, and one that is due to increase significantly in size in the coming years, Jebel Ali has a duty towards safety and security at the port.

According to Port Technology on 25 April, a Memorandum of Understanding (MoU) has been signed between Dubai Police and DP World, UAE Region in order to enhance safety and security cooperation at the port. The source says that such a move will enable the unhindered flow of trade through the port, and is aimed in particular at reducing accidents and tackling congestion on roads through the port and the free zone.

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AL GHURAIR RESOURCES One of the UAE’s major food companies is Al Ghurair Resources, which specialises in oils and proteins, in particular crushing canola, soyabean and sunflower seeds in its state-of the-art refinery located in Jebel Ali Port. It also has a considerable storage capacity of 360,000 tonnes.

Al Ghurair has a crushing capacity of 4,500 tonnes/day of soyabean and 3,200 tonnes/day of rapeseed. Its refinery has the capacity to refine 96,000 tonnes/year. Mostly it is canola, corn and sunflower oil that are refined in the facility.

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According to Gulf News, Al Ghurair crushes around 1M tonnes/year of canola, imported from Australia and Canada. Key export markets for the company’s edible oils are the Middle East and Asia.

Al Ghurair operates two terminals at Jebel Ali, Berth No. 3 and Berth No. 7. Its vessel offloading operation is carried out by Gulf Grains Elevators.

The operation celebrated its highest commodity offload figures in its history in March 2015, when it achieved a total of 301,752 tonnes.

In order to achieve the figures, nine unloading vessels were handled during the month.

Commodities carried in the vessels included 166,087 tonnes of canola, 12,100 tonnes of corn and 8,979 tonnes of soya meal.

EDIBLE OIL COMPANY LLC, DUBAI INVESTMENTS Edible Oil Company, a subsidiary of Dubai Investments, was established in 2006 and owns one of the largest seed crushing plants in the Middle East.

It operates an oilseed crushing facility in the Jebel Ali Free Zone. The facility is build on 70,000m2 of land and has a capacity to crush 2,200 tonnes/day of soyabean, 1,300 tonnes of canola/ day and 1,000 tonnes of sunflowerseeds/day.

The plant at Jafza is located adjacent to a berthing facility that docks the ships that import seeds from Canada and Australia, Zawya reported in November 2013. Such close proximity to the ships reduces the time spent acquiring the raw materials, so the company can immediately begin a process of seed selection, cleaning, preparation, oil extraction and grading, packaging and testing.

Once crushed, the oils are sold on to refiners for further processing.

According to the company’s website, it plans to expand exports to Europe, where it hopes to take advantage of the large market for vegetable oils used for biofuel manufacturing.

UNITED FOODS COMPANY (UFC) UFC was established in 1976 and started commercial operations in the UAE in 1979. In 1994 it became a public sharing company, owned

by UAE nationals.

UFC says it is the owner of the oldest refinery in the region, which is situated in Al Quoz, Dubai.

In 2005 it opened a factory in Jebel Ali. In an interview with Mubasher during Gulfood in February 2016, the company said that under the UFC’s 2014-2016 investment plan, it is due to complete an AED100M (US$27M) expansion to its plant in Jebel Ali during the second half of 2016. The expansion will add a new factory for manufacturing solid fatty substances to the existing facility, Mubasher reports.

Products include ghee, edible oils such as canola, sunflower, corn, extra virgin olive oil and palm oil, butter and margarines. Its brands: Aseel, Mumtaz, Nawar and Safi offer customers different edible oil and fat solutions including premium and pure oils, budget products and light or healthy choices.

According to Mubasher, UFC’s 2016 sales

target is AED460M (US$125M), an increase from AED398M (US$108M) in 2014.

MOMIN OIL INDUSTRY Momin, established in 1910 originally in Afghanistan, now operates an edible oil refinery situated in the Jebel Ali Free Zone. It produces and sells vegetable oils including corn oil, sunflower oil and palm olein, and ghee – brands include Laila, Momin, Nourish and Shifa.

Momin also has offices in Afghanistan and Pakistan and says it exports products to Afghanistan, Pakistan, GCC countries, Ethiopia, Iraq, Yemen, Somalia, Sudan, Lebanon, Syria, Jordon, Morocco, Algeria, Canada & CIS

countries.

Rose Hales is OFI’s editorial assistant

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IMAGE: NATURE’S CROPS

14% stearidonic acid (SDA – a precursor of long chain omega-3 fatty acid), however “TCI procured naturally-occurring germ plasm from all over the world and selectively bred it over a period of years” to produce a high-yield crop containing 18-20% SDA. NCI describes Ahilfower oil as “the richest effective combined omega-3+6 fatty acid source from a single non-GM plant”.

A dose of approximately 2.3-3g/day of Ahiflower oil provides the recommended EPA minimum daily equivalent of 200-250mg, TCI says.

In addition, according to operations and agronomy manager of NCI, Simon Meakin, it would take more than 20 tonnes of fish to produce the same amount of oil that can be produced in 1ha of corn gromwell.

Decoding the acronyms

A step forward in plant-based fish oil Fish oil contains the highest amount of long-chain omega-3 fatty acids, but is unsustainable and unsuitable for vegetarians.

Rose Hales looks at whether Ahiflower oil, which has been selectively bred to contain high levels of the omega-3 fatty-acid SDA, might be a viable alternative

A

new source of long-chain omega-3 fatty acid has been found, which is plant based, non-GM and is ready for large-scale production. The plant is known by many names including Lithospermum arvense, Buglossoides arvensis, corn gromwell, bastard alkanet and Ahiflower – it

is set to transform the industry for long-chain omega-3 oil, which is currently dominated by fish oil due to a lack of comparable alternatives, until now.

Ahiflower is the name given to the plant by Nature’s Crops International (NCI), a Canadian company that worked with agricultural researchers at Scotland’s Rural College (SRUC) to field-trial and breed the best performing varieties for commercial sale. Ahiflower received its name from the Hawaiian word for tuna – ahi – as an acknowledgement of the plant’s relationship to traditional omega-3 sources.

It is part of the boraginaceae family and has been thought of previously as an invasive weed.

“As a plant, Buglossoides arvensis is pretty much endemic in the whole of the Northern Hemisphere.

It has traditionally been seen as a weed species associated with the cultivation of wheat”, Greg Cumberford, general manager of the Ahiflower Division of TCI (Technology Crops International – part of NCI) told NutraIngredients in March 2015.

In its natural state, the plant contains around

Omega-3 fatty acids are not just one type, but several, and understanding the differences is necessary in order to fully comprehend how a new oil such as Ahiflower fits within the current market.

Omega-3 fatty acids are split into long-chain and short-chain, although some short-chain have longer chains than others. Conversion between one and another is also possible in some circumstances.

The two main types of omega-3 fatty acids that are linked with infant development, cognitive and eye function are called docosahexaenoic acid (DHA) and eicosapentaenoic acid (EPA). These are long chain fatty acids. A shorter chain fatty acid is alphalinolenic acid (ALA) – ALA is not linked to the same health benefits and cannot be converted by the human body to DHA, but can be converted to EPA, although only in very small amounts. A fourth, and less well-known type of omega-3 fatty acid is SDA, this is the type present in Ahiflower oil.

SDA is a shorter chain omega-3 like ALA, although it does differ from ALA for reasons that some claim make it superior. According to Today’s Dietitian’s ‘Spotlight on Stearidonic Acid’, foods supplemented with SDA “were found to raise EPA concentrations in the red blood cell membranes with approximately 17% to 41% of the efficiency of EPA on a gram-for-gram basis, a conversion efficiency three to five times higher than that of ALA”. The results were found in studies of SDA, which were largely funded by Monsanto, which has developed a genetically engineered SDA-enriched soyabean oil.

However, consumption of SDA will not increase the amount of DHA in the body, only direct consumption of DHA can do this. Today’s Dietitian says that individuals who currently rely on ALA to increase their omega-3 intake “may benefit from adding SDA to their diet”. In particular the study mentions vegetarians, vegans and people who do not consume fish as those who would benefit from an increased consumption of SDA. According to Cumberford, “our specification is for an 18% to 20% SDA content in Ahiflower oil, which is the largest of any non-GM plant source such as Echium, blackcurrant seed or hemp”.

Approval and safety When a new supplement is proposed for the market, it must be approved in terms of safety, and assessed by relevant bodies to ensure the claims made about it are true. Although corn gromwell or Ahiflower

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oil initially faced challenges in certification and approval, since 2015 the process has been more fruitful.

In November 2015, corn gromwell oil was awarded the status of a ‘Novel Food’ in the EU. A Novel Food is defined as being something that has not been consumed to a significant degree by humans in the EU prior to 1997, either newly developed, innovative or produced using new technologies. This status means that the oil is both safe and approved for consumption.

A UK government press release from 2011 describes corn gromwell oil as having ‘hidden superpowers’. It reports on research carried out by the National Institute of Agricultural Botany (NIAB TAG) in collaboration with Technology Crops Limited (part of NCI), that investigated whether corn gromwell could be grown commercially. The trial concludes that the plant: n Needs few inputs and a low amount of fertiliser; n Does not suffer from many pests or diseases and is not palatable to pigeons or rabbits; n Has a higher yield and is easier to harvest than the only commercial non-GM plant source of SDA, Echium.

Ahiflower oil produced exclusively by NCI received certification from NSF International under its NSF Non-GMO True North protocol in April, the company announced. NSF International is an independent, accredited organisation that tests, audits and certifies products and systems. The certification

FIGURE 1: THE RESULTS OF NATURE’S CROPS’ FIRST CLINICAL TRIAL OF AHIFLOWER OIL IN 2014

AHIFLOWER OIL LEADS TO GREATER EPA ACCRUAL IN PLASMA AND CIRCULATING CELLS VERSUS FLEXSEED OIL. SOURCE: NCI

awarded shows that the oil complies with all elements of the verification process. According to NCI, Ahiflower oil is the first omega dietary oil to be verified by NSF International. NCI commented: “Since Ahiflower oil is already in commerce in the USA and EU in food and dietary supplements, it is important that Ahiflower oil comply with a globally meaningful third-party non-GMO verification standard. NSF True North achieves this goal and provides assurance to Ahiflower’s licensed brand partners on this point.”

The US Food & Drug Administration (FDA) awarded the oil no-objection GRAS (generally recognised as safe) status in January 2015, according to NutraIngredients. In addition, in March 2015, after a process lasting two years, NCI succeeded in lifting the EFSA’s (European Food Safety Authority) block on omega-3 buglossoides oil. NutraIngredients reports that the oil was originally blocked because the plant contains active substances such as pyrrolizidine alkaloids, which have been linked to antigonadotropic

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activity – meaning they affect hormones. Secondly there was concern over the method used to analyse the presence of the carcinogenic polycyclic aromatic hydrocarbons (PAHs) in the oil.

In response, the EFSA said that the oil’s refining process reduced the levels of pyrrolizidine alkaloids to below the maximum levels set by the EU. The NCI submitted further information on the PAH analysis method, confirming that the oil registered safe levels.

Clinical trials Alongside certification and recognition, clinical trials are taking place to determine whether or not Ahiflower oil does definitely boost the levels of EPA in the blood and if it is safe for consumption.

A report published in the Journal of Nutritional Science led by Dr Marc Surette investigated the safety and efficiency of dietary Ahiflower oil using a parallel-group, randomised, doubleblind, comparator-controlled phase I clinical trial.

Subjects had their diets supplemented with either Ahiflower oil or flaxseed oil.

The trial found that “tissue ALA and EPA content increased in both groups compared with baseline, but EPA accrual in plasma and in all cell types was greater in the Ahiflower group” – in fact, Ahiflower oil showed up to four times better accrual of EPA compared to flaxseed (see Figure 1, p27).

Thus the study concluded that consumption of Ahiflower oil is safe and that it is more effective in enriching tissue with EPA than flaxseed oil. In addition to boosting EPA, the study also found that levels of omega-6 dihomo-gamma-linolenic acid (DGLA – an anti-inflammatory) were boosted in circulating cells.

It was also concluded that there were no safety concerns associated with consuming Ahiflower oil, and “the number of adverse events and adverse reactions were not different from that of subjects consuming flaxseed oil and all were mild in nature”.

The company has confirmed that a second human clinical trial is underway, which is a dose response study.

A report published by plant researcher NIAB on corn gromwell made several statements regarding the positive planting and harvesting attributes of the crop. It describes Buglossoides arvensis as more “farmer friendly” than its plant-based omega-3 predecessor Echium. “It can be allowed to senesce (mature) naturally and then be harvested as a standing crop. It holds on to its seed very tightly so seed loss at harvest is minimal. Management input and variability are significantly reduced.” Early trials had indicated that the yield of the crop would be around 0.7-1.0 tonnes/ha.

Due to being planted in early spring and harvested in June or July, it is unlikely to clash with other crops, NIAB concluded.

As of 2015, Lipid Technology reported that Ahiflower was being grown commercially on over 1,000ha in the UK on farms from East Sussex in

the far south of the country to the Black Isle of Scotland in the far north. An overall average yield of mature seeds was 65-750kg/ha, which the report said was improving steadily year to year.

Great potential as vegan supplement As the best plant-based and non-GM source of omega-3 fatty acid SDA, Ahiflower oil has great potential for the health food and supplement markets. However, most research has concluded that this source is only really viable for vegetarians or vegans, or anyone who does not consume oily fish, as although SDA is significantly better than ALA at converting to EPA, it is still not as good a source of long-chain omega-3 as DHA – which is

still only found in oily fish and algae.

Rose Hales is OFI’s editorial assistant

What will the oil be used for?

Ahiflower oil is aimed at the food and supplements market, NCI told NutraIngredients in January 2015. In terms of price it said it “will be competitive with existing plant-based omega-3 sources, especially when the more efficient SDA conversion story is taken into account”.

But could Ahiflower oil eventually replace fish oil as a source of long-chain omega-3 fatty acids? As the human body cannot convert SDA to DHA, this is unlikely.

Where will it be grown?

Due to being non-GM, there are more available locations for growing Ahiflower. The plan in early 2015 was to introduce the oil in the North American market, followed by the EU market, with longer term potential targets of Canada, South Korea, Australia and New Zealand.

In addition to its uses as an omega-3 source, the plant is also described by Cumberford, as a “break” crop in the UK’s crop rotation system, and can also support a large number of insect pollinator species.

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NMR applications with palm oil Bench-top Nuclear Magnetic Resonance (NMR) measures oil and moisture content in oilseeds and has various potential uses in the palm oil industry. Kevin Nott writes

T

he palm oil sector is one of the most productive within the oils and fats industry, helped partly by the plant having the highest yield (kg/ha/yr) of all the vegetable oils. Nevertheless there is scope for increasing oil production further by measuring the oil content at various stages in the process from the fields through to the mills.

Bench-top Nuclear Magnetic Resonance (NMR) a well known means to measure oil and moisture content in oilseeds, for which there are various standard methods for oilseeds (ISO 10565, AOCS Ak 4-95) and their residues (ISO 10632, AOCS Ak 5-01). NMR has advantages over NIR and traditional extraction techniques including: NMR can measure all the oil in the samples, not just from the surface, therefore is ideal for large inhomogeneous samples.

NMR is not affected by factors such as colour and particle size.

The calibration, which is linear, can be produced using just three reference samples (subject to the accuracy of the reference method).

Alternatively, the instrument may be calibrated against the refined oil which has been extracted from the seed, nut or fruit.

For these reasons, bench-top NMR has many potential uses in the palm oil industry, which are outlined below.

Oil in palm mesocarp

OXFORD INSTRUMENTS’ BENCH-TOP NMR MQC ANALYZER

Measurement of oil in palm mesocarp is mainly of interest to plant breeders wishing to measure the oil yield from their crops using bunch analysis. Oil content is normally measured by Soxhlet extraction (after oven drying) which restricts the sample throughput. Although the

FIGURE 1: NMR CALIBRATION FOR OIL IN PRESSED PALM FIBRE

mesocarp must be dry prior to NMR analysis, the sample throughput is much greater than Soxhlet, which is restricted by time of analysis as well as the number of samples that can be analysed at any one time. In addition, NMR has been shown to be just as accurate as the hexane extraction method but does not require the use of solvents or other chemicals, fume cabinets and expensive disposal procedures.

The method is simple; the samples are weighed in a vial, then conditioned at 50°C for 20 minutes to ensure that all the oil has melted prior to analysis.

The measurement takes just 16 seconds, making the time per sample short when measured within a large batch of samples. The instrument may be calibrated against and, as a consequence, can obtain results equivalent to the reference extraction method.

Alternatively, a primary calibration can be obtained using crude palm oil for the measurement of total oil content. It has been shown that extraction methods do not always remove all the oil, whereas NMR is able to measure all the oil in the dry tissue, even that which remains after Soxhlet extraction.

Oil in pressed palm fibre It is important to measure the oil content of pressed palm fibre in mills to maximise the efficiency of the extraction process, either by pressing or solvent extraction. However, this is a challenging measurement for many techniques as the oil content is relatively low and non-uniform and, as a consequence, the sampling variation can be large.

It is important to note that this sampling variation, as well as incomplete extraction, can also lead to errors in the reference method. However, given that NMR is non-destructive, it is possible to measure the same sample by extraction after NMR analysis to avoid discrepancies due to sampling.

Figure 1 (below) shows the correlation between the NMR signal/mass and the reference values determined on the same samples by Soxhlet (after drying). Therefore any discrepancies between the results and calibration line are likely to be due to errors caused by the reference method itself.

FIGURE 2: THE MELTING PROFILES FROM TWO SUB-SAMPLES OF PALM OLEIN AND PALM STEARIN

The correlation coefficient and standard deviation are 0.99 and 0.28% respectively

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Foss and Mérieux NutriSciences sign partnership F oss, the Danish analytic instrument provider, announced on 21 June that it has entered into a strategic partnership with Mérieux NutriSciences, USA, which offers analytical, testing and consulting services, in order to tackle the growing issue of food safety.

The companies said that due to their respective areas of expertise, they hoped to improve analytical services as well as develop new analytical solutions to target food industry challenges.

For example, they were collaborating on ensuring food authenticity by working on detection and identification of adulteration agents. Another example was the development of integrated analytical solutions to it easier for food industry professionals to exploit the power of routine testing in their food safety management strategies.

“Mérieux NutriSciences is dedicated to R&D and method development which matches the FOSS DNA very well” said

News & developments FOSS CEO Kim Vejlby Hansen. “Moreover, this partnership can become a key factor in developing our Food Safety offering in the coming years.”

Philippe Sans, president and CEO of Mérieux NutriSciences, said: “Sharing a common goal, teams at Mérieux NutriSciences and FOSS are now working in close cooperation and the result will be an extended range of increasingly powerful analytical tools and services available.”

SGS enhances sample disposal procedures S

GS announced in July that it had enhanced its sample disposal procedures at its laboratory in Brookings, South Dakota in order to ensure confidentiality for its customers.

Its enhanced sample disposal system, devleoped in 2015, ensured the safe

destruction of data.

Samples were first analysed and then – along with bags, tags and labels – pulverised using a machine that staff at SGS refer to as ‘The Beast’.

The Beast routinely disposes of 3,000lbs of material/hour, but had the capacity to deal with 4,500lbs of material/hour if required, SGS said.

According to SGS, The Beast could destroy objects as small as a grain of rice, meaning that sensitive information would not leave the laboratory in readable form.

“When a sample comes in our doors, all the product information is safe and confidential. We have to assure the client that everything we have is safe while it is here…and that cannot be compromised,” said quality assurance manager, Billie Riles.

“We take great steps to make sure that customers’ products and product information are safe and secure, even once we are done testing and storing the sample. When samples leave our facility, they are non-viable and everything, including the bag and its identifying labels, are destroyed.”

Oil and moisture content Palm kernel expellers would like a rapid measurement of oil content as it can help determine the price that they pay. Nevertheless palm kernels are not commonly measured because the hard nut is very difficult to crush into smaller pieces. Crushing is needed to allow the solvent to penetrate the sample for better extraction, leading to a more accurate result.

As the moisture content is relatively low, it is possible to measure the oil content of palm kernels by NMR without drying. Furthermore, because radio frequency radiation penetrates the whole sample, palm kernels can be measured by NMR without crushing. The only requirement is that they are conditioned at a higher temperature to mobilise the oil prior to analysis.

NMR can also measure oil and moisture content in the palm kernel cake, which is useful for monitoring the efficiency of the extraction process.

In addition, NMR can measure the oil content of palm kernel meal, a byproduct which is used for animal feed.

Solid fat content The melting profile, which is a function of the oil composition, is an important property as it defines the applications that the oils/fats are eventually used for as an ingredient. Fortunately, benchtop NMR can also measure the proportion of solid fat in the palm oils/fractions conditioned at different temperatures.

Given this is a fundamental measurement, it is not surprising that various standard methods exist which are used by oils/fats companies worldwide to characterise their raw materials. The Direct method (AOCS Cd 16b-93, ISO 8292-1, IUPAC 2.150) is the most commonly used due to its simplicity and precision.

Figure 2 (previous page) shows that the melting profiles of palm olein and palm stearin, and as a consequence the solid fat method, are very reproducible.

Conclusions Benchtop NMR can be used at various stages of the palm oil production process, from measurement of the oil yield of crops through to processing and characterisation of the raw materials.

Kevin Nott is an applications scientist at Oxford Instruments, UK 31 OFI – JULY/AUGUST 2016 www.oilsandfatsinternational.com

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N UTRITION

IMAGE: AIRBORNE77 / ADOBE STOCK

Fighting malnutrition in India

VEGETABE OIL IS ONE OF THE MOST EFFECTIVE CARRIERS OF VITAMINS SUCH AS A, D AND E AS THESE ARE OIL SOLUBLE

One in three of the world’s malnourished children lives in n ia or i ca ion o e e able oil is an effective and cheap sol ion o a ress his roble Ashwin Raj R writes

I

ndia is one of the fastest growing economies in the world with immense potential to grow even further. The World Bank has projected India’s GDP growth to be 7.9% in 2018, the fastest among developing nations followed

by Bangladesh at 6.8% and China at 6.5%.

India is also expected to overtake other developing economies in 2016 and 2017 due to the rise in its middle class population and their increasing disposable incomes.

With close to 360M people between the ages of 10 and 24, India is home to the largest proportion of young people in the world. The rapid rate of urbanisation, coupled with an increasing working population, further substantiates the potential for growth in the subcontinent. However, like other growing economies, it faces several challenges on its road to success. One of the most critical challenges faced by the nation from a nutritional perspective is malnutrition.

Health and food Health and food have a direct correlation and are significant factors that control life expectancy.

Across the globe, malnutrition kills about 3M children below five and affects 160M children to the point that it results in stunted growth.

However the situation in India is particularly grave as one in three of the world’s malnourished children lives in the country.

According to the Rapid Survey on Children (RSOC) Factsheet 2014, in India about 40% of the children under five are moderately or severely underweight (see Figure 1, following page); almost 75% of women and children are micronutrient deficient; and about 15% of children are acutely malnourished.

Other research studies suggest n The prevalence of Bitot’s spot, a test that signals the presence of Vitamin A deficiency (VAD), was found to be around the 0.8% mark among pre-school children in India, significantly higher than the figures recommended by the World Health Organization (WHO) that has suggested less than 0.5% n Blood VAD indicates a figure of 61% (<20µg/ dL) and severe VAD 21.5% (<10 20µg/dL), against the recommended 20% n Vitamin D deficiency is yet another alarming

condition that threatens the Indian population with the prevalence mounting up to 70% among adults.

These figures raise concern over the current state of vitamin deficiencies in India and there is an acute need to address the situation. Experts around the globe including nutritionists, scientists and representatives of NGOs such as the Global Alliance for Improved Nutrition (GAIN) have collectively agreed that fortification of food and beverages is one of the most effective strategies to face the challenge of malnutrition and vitamin deficiency.

Oil, rather than other options such as flour or milk, is considered to be one of the most effective carriers of vitamins such as A, D and E as these vitamins are oil soluble and offer a cheaper and efficacious solution.

Edible oils in India The demand for edible oils in India has witnessed unprecedented growth rates in the past decade, recording a CAGR of 6% (2004/05 – 2014/15). The growth in the market is caused by the surge in a middle class population with increased disposable income and a preference towards fried and fatty food. The demand is projected to increase even further due to the constant increase in population

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N UTRITION

and the growth in the fast food sector in India.

The total imports of vegetable oil in India were 140 lakh (14M) tonnes in 2014-15 increasing at an encouraging CAGR of 10% from the period 2003-2015, according to a press statement by Solvent Extractors’ Association of India. The Indian edible oils market is highly driven by imports – 60-70% of all oils are imported.

Palm oil continues to dominate, contributing close to 50% of the total oil demand followed by soyabean oil, mustardseed oil and sunflowerseed oil. The low cost of palm oil is the prime reason for its wide use in the market, and its ability to blend effectively with other oils is also a major driving factor. Soya and mustard/rapeseed oil consumption is increasing at a steady pace, especially in the western and northern parts of India. Rice bran oil is an up and coming oil in the country while the consumption of groundnut oil is gradually fading away.

Fortification with premixes Crude vegetable oils naturally contain certain antioxidants and nutrients such as vitamin A and E. Almost all crude oils undergo a processing stage to eliminate the fetid smell and raw taste of the oil.

However, most nutrients are lost during the process.

Fortification is an extremely effective step taken to revive this condition. It is the process of adding blended vitamins (premix) to the refined oil.

Premix is a blend of these vitamins that could be used to fortify the refined oil that has lost its nutrients during the refining process. The process of fortification (addition of premix) is carried out after the final step of deodorisation so as to minimise the loss of vitamins due to heat.

In order to ensure uniform mixing of these vitamins in the oil, the intended amount of vitamins is measured and added to a small portion of warm oil (40oC – 50oC), which is then added to the bulk of the oil prior to homogenisation. Along with the vitamins, other antioxidants such as BHA, BHT, ascorbyl palmitate and Vitamin E may also

‘Experts around the globe...have collectively agreed that fortification of food and beverages is one of the most effective strategies to face the challenge of malnutrition and vitamin deficiency’ be added, as per the governmental regulations governing that region.

Currently, both customers and consumers have certain misconceptions about fortification.

Table 1 (below, right) shows a few of the myths, as well as the facts behind them.

It is therefore evident that the concept of fortification adds more value to the oil and also helps fight malnutrition on a large scale.

IMAGE: CPAUSCHERT / ADOBE STOCK

FIGURE 1: PERCENTAGE OF UNDERWEIGHT CHILDREN UNDER 5 IN INDIA

The state of oil fortification in India Despite the advantages and positive effects of fortification, the overall quantity of fortified oils in the country remains surprisingly low. It stands at just 10% of the total branded edible oils in the country. The main reason for this is the presence of loose/unbranded oils in the country, which make up almost 40-50% of the entire edible oils market.

This is a potential threat in furthering fortification, as most loose oil producers sell used oils back to the market. Apart from posing serious health issues, it also negates the chance of fortifying such types of oil, mainly due to cost. The other reason is that consumers are unaware of the advantages of fortified oils.

The future There is enormous potential to educate consumers about the benefits of consuming fortified oils. An increasing economy, rising disposable income of the working population and elevated levels of vitamin deficiencies are expected to drive the fortified oils market in India. Most states, such as Gujarat, have mandated the fortification of oil and other states such as Maharashtra, Madhya Pradesh and Rajasthan have been in the forefront in supporting the programme.

International organisations such as GAIN have been very involved in the fortification of food with the support of allied organisations such as the Indian Institute of Health Management Research (IIHMR) that helps from a R&D perspective. It is only through the combined efforts of the government, NGOs, oil manufacturers, regulatory bodies, R&D units and premix manufacturers that the concept of fortification could reach the masses and help bring an end to the problem of

malnutrition in India.

Ashwin Raj R is manager of business development at Hexagon Nutrition, India www.hexagonnutrition.com

TABLE 1: MYTHS VS FACTS OF EDIBLE OIL FORTIFICATION Myth

Fact

Fortification adds The process of fortifying oil with vitamins A, D and significant cost to the E costs INR 0.08-0.15/kg of oil (US$0.001-0.002). production process The process is neither complex nor requires any special equipment. The premix could be added in the same way that antioxidants are added.

The taste and colour of oil changes

The fortification process does not impact the taste of the oil. Research proves that food such as fried potatoes, soup, wheat tortillas and fried meat cooked in soyabean oil have been accepted by consumers who did not distinguish the taste of food cooked in fortified and non-fortified oil.

The vitamins lose stability while cooking

The vitamins do not lose stability during the cooking process. Normally they are viable for the first three times after which they gradually start to wear out, which is natural. It also depends on factors such as the quality of the refined oil and packing. The shelf life of fortified oil is five months with adequate preservation techniques.

35% or more 30-35% 25-30% 20-25% Less than 20%

PERCENTAGE OF TOTAL CHILDREN IN EACH AREA WHOSE WEIGHT IS AT LEAST TWO STANDARD DEVIATIONS BELOW AVERAGE. (SOURCE: RAPID SURVEY ON CHILDREN UNICEF AND GOVERNMENT OF INDIA 2013-2014. VIA THE ECONOMIST)

By: Hexagon Nutrition, India

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Kiwi means quality

months to October 2015, according to a February 2016 Dairy Situation and Outlook report by industry body Dairy Australia.

New Zealand’s top export markets in 2014 for butter and butteroil were China, Egypt and Saudi Arabia followed by the United States, Iran, the Philippines and Azerbaijan, which topped 2014 exports even to Australia and Russia, according to international trade data.

Last year, Mexico moved into third place, importing 29,000 tonnes of NZ butter and butteroil, according to Denmark-based food consultant Preben Mikkelsen, from an overall NZ export total of 501,000 tonnes of butter and butteroil. Egypt took out second spot with 40,000 tonnes, behind China on 68,000 tonnes in 2015, he says. Mikkelsen adds that China’s dominance as an export destination is likely to continue through to 2020, when he expects it will be importing 100,000 tonnes of NZ’s total butteroil exports, forecast to reach 620,000 tonnes.

In competition with the EU

IMAGE: JOLIN/ADOBE STOCK

New Zealand butter sales are growing, but they are driven by quality rather than trade deals.

With domestic consumption accounting for a tiny fraction of production, exports are critical for the health of the New Zealand butter industry.

Lee Adendorff writes

N

ew Zealand’s butter producers may be a global force in this key dairy segment, but they have regarded the ground breaking Trans-Pacific Partnership (TPP) agreement with scepticism.

Negotiations for the TPP produced a deal last October, and although New Zealand dairy giant Fonterra and the DairyNZ producers association declared they had secured increased access to some key markets – Japan, Canada and the United States all increased butter quotas to varying degrees – there was general agreement that the gains had been modest.

It is a far cry from the excitement that surrounded New Zealand’s 2008 Free Trade Agreement (FTA) with China. This introduced an annual 1% reduction in duties on New Zealand butter exports within a limited quota that will eventually arrive at zero in 2017. Butter and butteroil exports to China meanwhile have skyrocketed, reaching 71,406 tonnes in 2014, up from 11,483 tonnes in 2007, according to world trade data.

China is now the number one single destination for New Zealand (NZ) butter and butteroil.

But even here, exporters stress that trade deals only go so far. Gregg Wafelbakker, general manager in Shanghai of New Zealand dairy cooperative Westland Milk Products, says that despite the NZChina FTA tariff reductions, the majority of New Zealand butter and butteroil entering China is above quota and is still paying a 10% base rate.

“Rather than just considering trade deals, I think what you have to look at is the consumer demand.

What counts most is having strong and growing consumer demand for butter and butter products.

If there is no demand, a trade deal is not going to do you much good,” he says.

Wafelbakker says that China’s growing middle and upper middle class are spending more on premium, often imported food, including butter: “There are some interesting developments in Chinese food choices right now and it can be somewhat unpredictable. One of our key trends is the rise of home baking in China. We have e-commerce platforms where you can buy a recipe and then order the butter to make the recipe at home and we are seeing strong growth there,” he says.

“Butter is not a traditional ingredient in many Chinese cuisines but we are seeing an evolution in bakery particularly towards more western-style products that use more cream and more butter.

Chinese consumers like to try new things,” he adds.

Despite the buoyant Chinese market, low farmgate prices for milk, high feed costs and a subsequent culling of herds saw overall NZ exports of butter and butteroil decrease 13% in the 12

Meanwhile, New Zealand faces fierce competition from other butter-producing nations. Figures published in the European Union Milk Market Observatory estimated that New Zealand’s overall butter and butteroil exports decreased 4% from January 2015 to January 2016 to 570,000 tonnes.

Exports of butter and butteroil from one of New Zealand’s main competitors the European Union (EU), rose 52% over the same period.

US Department of Agriculture (USDA) analysts concurred that New Zealand is facing a less than bumper 2016 with butter exports slated to remain flat throughout the year, particularly in the face of stiffer competition from European producers in the key markets of Saudi Arabia and China.

Although competition from the EU is fierce, there is cause for optimism in NZ. Iran, the recipient of 27,317 tonnes of New Zealand butter and butteroil in 2014, has signalled it wishes to increase trade with the southern hemisphere dairy giant. Iranian foreign minister Javad Zarif is keen to emphasise the possibility of increased trade during his March 2016 visit to the country, following the conclusion of an agreement in January and the lifting of UN sanctions. “Iran is a valuable trading partner and a key butter market for Fonterra. The removal of the UN sanctions, and our government’s unwinding of restrictions, will only improve the outlook for us in Iran,” says Fonterra’s managing director of global ingredients Kelvin Wickham in a statement.

New Zealand’s butter, well known for its quality and distinct flavour profiles, is greatly assisted by technology to reach export destinations on the other side of the world. Butteroil (anhydrous milk fat – AMF) is its primary export format, which can be stored at ambient temperatures in drums, one tonne packs or in 20 tonne nitrogen-sparged bladders and turned into recombined butter at the country of destination, according to New Zealandbased independent food industry consultant Laurence Eyres.

Exports are critical for the industry’s health as domestic consumption of butter in New Zealand’s 4.4M population is a tiny fraction of production, with local annual sales estimated at around 22,000 tonnes or an annual consumption of approximately 5kg/capita according to USDA figures. The majority

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of butter and butteroil produced is exported by the Fonterra and Westland cooperatives and brands play a major role.

Big brands and boutique butter Fonterra owns the iconic Anchor brand that was invented by a Cornish farmer in New Zealand in 1886. The brand has since spread around the world, most recently being launched in December 2015 in Egypt, a key NZ butter market. Anchor butter does not always come from New Zealand. Fonterra sold its share in a joint venture that included the Anchor brand licence for the United Kingdom to Arla Foods in 2009; Anchor butter sold in the UK is now made in a Wiltshire factory.

Westland, New Zealand’s second largest cooperative after Fonterra, produces Westgold butter, a premium product made in Hokitika on the west coast of NZ’s South Island that was awarded top honours in a special butter category at the recent 2016 New Zealand Champions of Cheese awards. The west coast of the South Island has the highest average rainfall of New Zealand, ensuring ample rich pastures.

Westgold has been sold internationally for 12 years – 11.5M units were sold in 2015 – but it has not been sold domestically – the brand will make its debut on New Zealand shelves this year. Wafelbakker says that the award recognition would undoubtedly assist in the product’s domestic launch.

Westgold butter is made using the traditional Fritz churn method, developed from the traditional churning process of crystallised cream and responsible for around half of NZ’s butter production, according to the New Zealand Institute of Chemistry.

The other main process used by the NZ butter industry to develop product for export is the high pressure Ammix technique, in which fresh milk fat is mixed with cream and salt before being shock cooled to rapidly crystallise the product.

Eyres, however, says that despite the technology in use, innovation in NZ butter products is conspicuously absent. “Butter has been the poor relation of the NZ industry for nearly 25 years. Since the days of milk fat fractionation, Ammix development and the marketing of bakery butters and blends in the late 1980s, there has very little innovation in butter,” he says.

The few exceptions have been in small-scale productions experimenting with traditional and revised techniques. Eyres singles out the Lewis Road Creamery, a boutique NZ manufacturer which makes European-style lactic butter from Jersey cows. “By sticking to the age-old principles of quality and temperature maintenance, this butter has excellent sensory properties and wins awards,” he says. Based on New Zealand’s North Island, the Lewis Road Creamery produces an unsalted, lightly salted and salted with sea salt crystals premium butter.

Meanwhile, Otago-based Whitestone is another example of a boutique butter producer, offering both salted and unsalted options as well as an unusual Manuka (native tree) smoked version. Whitestone and Lewis Road butter retails at around twice the price of Fonterra’s commercial brand Mainland, but have found a loyal and growing niche customer base that is also growing in neighbouring Australia.

EXAMPLES OF NEW ZEALAND BUTTER, CLOCKWISE FROM TOP LEFT: WESTGOLD SALTED BUTTER, ANCHOR NEW ZEALAND BUTTER, WHITESTONE MANUKA SMOKED BUTTER, LEWIS ROAD CREAMERY BUTTER, WHITESTONE SALTED BUTTER AND MAINLAND BUTTER

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Australia, an important dairy and butter market for New Zealand, is seeing strong demand for butter and blended spreads. The Dairy Situation and Outlook report for 2015/2016 points to a general trend away from low-fat milk towards full cream products that has been accompanied by a rise both in the volume and value of dairy spreads (butter and blends) consumed by Australians.

In the 12 months to December 2015, Australian butter and blends sales rose 4.7% in volume and 6.1% in value according to Dairy Australia analysts, with butter the strongest performer in the category. Unsalted butter particularly is increasingly popular among consumers, showing a greater increase in sales as compared to the salted butter segment that nonetheless saw growth.

The food industries of both New Zealand and Australia have a lot in common, not the least of which is regulatory standards. Food product development in New Zealand is regulated by the joint food authority Food Standards Australia New Zealand (FSANZ). The authority is currently conducting a major review of the regulation of nutritive substances and novel foods that could affect the ability of butter producers to develop, market or sell innovative high value dairy foods and ingredients. Under the current standard, categories of novel foods may include plants or animals and their components or extracts, herbs, probiotics, microorganisms and foods produced from new sources, or by a process not previously applied to food. The current standard makes mention of phytosterols, phytostanols and their esters added to edible oil spreads. The review is due for completion this year.

Lee Adendorff is a freelance writer

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STATISTIC S

SUNFLOWER VS RAPESEED OIL PRICES (US$/TONNE)

STATISTICAL NEWS FROM MINTEC Sunflower oil Prices have been falling since May as the supply of sunflower seed is projected to be higher than previously thought. Global production of sunflower seed in 2016/17 is expected to rise 8% to 42.2M tonnes. Ending stocks of sunflower seed are estimated to fall 18% year-on-year to 1.4M tonnes. Production of sunflower oil is forecast to rise 7% to 16.2M tonnes.

Exports from Ukraine are progressing at a good pace, driven by good demand from the EU and China, and are now set to rise 14% to 4.8M tonnes, 300,000 tonnes higher than previously expected. Russian exports are projected to rise 10% to 1.7M tonnes.

RAPESEED OIL PRICES ROTTERDAM (EU€/TONNE)

Rapeseed oil Despite tight stocks, rapeseed oil prices have also continued to fall in line with the trend in the wider vegetable oils markets. Global production of rapeseed in 2016/17 is set to fall 3% year-on-year to 66.1M tonnes.

Rapeseed production in Canada, the world’s top exporter, will fall by 10% year-on-year to 15.5M tonnes, while the EU will see a 1% year-on-year decline in production, forecast at 21.8M tonnes.

Production of rapeseed oil is expected to fall 3% to 26.5M tonnes. Ending stocks of rapeseed are forecast to fall by 30% to 3.5M tonnes.

Sunflower oil premium The sunflower oil premium over rapeseed oil has increased since spring, as rapeseed production losses are now expected to be less significant than previously thought in some EU and CIS countries. Canadian rapeseed plantings in 2016 were above the intentions, but at 8.1M hectares, they are still at a five-year low.

SUNFLOWER OIL AND SEED PRICES EU (US$/TONNE)

PRICES OF SELECTED OILS (US$/TONNE)

Soyabean Crude Palm Palm Olein Coconut Rapeseed Sunflower Palm Kernel Average price INDEX

2014

2015

April 16

May 16

June 16

897 825 762 1,276 906 905 1,120

765 676 650 1,358 787 853 1,116

956 226

887 210

July 16

799 727 702 1,571 811 858 1,289

801 701 666 1,413 798 873 1,188

796 670 635 1,491 776 850 1,261

786 645 609 1,462 756 807 1,242

965 229

920 218

925 219

901 213

Mintec works in partnership with sales, purchasing and supply chain professionals to deliver valuable insight into worldwide commodity and raw materials markets using innovative technology and a knowledgeable team of specialists. We provide independent insight and trusted data to help the world’s most prestigious brands to make informed commercial decisions.

Tel: +44 (0) 1628 851313 E-mail: sales@mintecglobal.com Website: www.mintecglobal.com

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