CornCornCornPART OF A SUSTAINABLE ENVIRONMENTPART OF A SUSTAINABLE ENVIRONMENT

Corn Refiners Association Annual Report 2006

Corn Refiners Association1701 Pennsylvania Ave., N.W.

Suite 950Washington, D.C. 20006-5805

tel. 202.331.1634fax 202.331.2054

www.corn.org

Jack Fortnum, ChairmanCorn Products International, Inc.

Peter A. Salis, Vice ChairmanNational Starch and Chemical Company

John RiceArcher Daniels Midland Company

Ed HarjehausenArcher Daniels Midland Company

Patrick E. BoweCargill, Incorporated

Ken YoergCargill, Incorporated

James P. ZallieNational Starch and Chemical Company

Thomas D. MalkoskiPenford Corporation

Timothy KortemeyerPenford Products Co.

Michael W. JorgensonRoquette America, Inc.

Richard O’HaraRoquette America, Inc.

J. Patrick MohanTate & Lyle Ingredients Americas, Inc.

D. Lynn GriderTate & Lyle Ingredients Americas, Inc.

Board of DirectorsBoard of Directors

Martin AndreasArcher Daniels Midland Company

Fred M. AshCerestar USA, Inc.

C. G. CaldwellNational Starch and Chemical Company

Paul E. GrunderCPC International Inc.

Patric J. McLaughlinCerestar USA, Inc.

E. S. MicekCargill Trustees

G. M. MitchellCargill Trustees

Donald E. NordlundA. E. Staley Manufacturing Company

William H. PowellNational Starch and Chemical Company

Robert M. PowersA. E. Staley Manufacturing Company

Paul E. RamstadAmerican Maize-Products Company

H. T. ReedPenford Products Co.

John G. Reed, Jr.Archer Daniels Midland Company

Samuel C. ScottCorn Products International, Inc.

Michael A. UrbanicCargill, Incorporated

Richard VandervoortCorn Products International, Inc.

Honorary DirectorsHonorary Directors CRA Staff

Audrae EricksonPresident

Jennifer White SnyderSenior Director of Regulatory Affairs

Pat SaksAssistant Director for Food, Healthand International Policy

Becky MarshallAdministrative Assistant

Corn Annual Editor/DesignerShannon Shoesmith McNamara

Photo CreditsFront cover: Archer Daniels MidlandCompany, inset 2 and 3 NatureWorks LLCInside cover: Scott Bauer, ARS/USDAPage header: Archer Daniels MidlandComapnyStatistics background: Doug Wilson,ARS/USDA and Archer Daniels MidlandCompany

CRA Staff

ContentsContentsThe Year in Review ........................................................................................................... 2

Iowa’s Role in Developing a Sustainable Environment ....................................................5

Corn Refined Products: Sustainable at the Core .............................................................. 8

The Next Generation of Corn ..........................................................................................12

Going Green: Turning Corn into Plastics ........................................................................16

Corn Industry StatisticsShipments of Products of the Corn Refining Industry—2005 ...........................................3

Exports of Products from Corn—2005 ..............................................................................5

Corn: Food and Industrial Uses ........................................................................................7

U.S. Corn Refining Industry at a Glance—2005 ...............................................................8

Corn for Grain: Yield and Production .............................................................................. 11

U.S. Per Capita Sweetener Deliveries for Food and Beverage Use ..............................13

Corn: Supply and Disappearance ...................................................................................14

World Corn Production, Consumption and Stocks .........................................................15

Member Company Products ...........................................................................................19

Member Companies Domestic and International Plant Locations ..................................20

2 2006 Corn Annual

Audrae EricksonPresidentCorn RefinersAssociation

The Year in ReviewThe Year in ReviewThe Year in ReviewAsk the average American about corn’s

role in a sustainable environment and the response will likely focus on

ethanol. And with good reason. However,there are many more ways in which corncontributes to a sustainable environment. As arich carbohydrate source, corn provides thebackbone to a number of products that reduceour use of petrochemicals and non-renewableresources. Corn-based chemicals, solventsand fuels not only have a positive impact byreducing our dependence on fossil fuels, butthey are also better for the environment. Theversatility of carbohydrate chemistry ensuresthat we will continue to find new ways for cornto benefit the environment.

2006 Corn AnnualThis year’s Corn Annual highlights the wayscorn contributes to a sustainable environment,including biodegradable products, widelyconsumed environmentally friendly productsand new technologies.

Iowa is the top corn producing state and ishome to more corn wet milling plants than anyother. It is also home to a significant numberof corporate, academic and governmentresearchers and scientists who are findingnew uses for corn. The Honorable CharlesGrassley shares his knowledge of Iowa’s cornindustry and how it has helped enhance corn’srole in a sustainable environment.

The traditional products of the corn refiningindustry have long proved useful in productsthat can be used in place of those made frompetroleum-based resources or syntheticchemicals. Corn Refiners Association Chair-man Jack Fortnum of Corn Products Interna-tional, Inc. shows us how corn starch, cornsweeteners, corn oil and corn feed productscontribute to a sustainable environment.

Just as research on new uses of corn isproving environmentally beneficial, develop-ments in corn hybrids also have an environ-mental impact. Corn hybrids that have in-creased drought tolerance, flood and frostresistance, as well as other valuable traits, arein the pipeline. National Corn Growers Associ-ation President Ken McCauley draws on his

expertise to demonstrate the many benefits ofthe next generation of corn.

Corn-based plastics are entering the main-stream marketplace and consumers like whatthey see. Steve Mojo, Executive Director of theBiodegradable Products Institute, tells us howPLA, PHA and Bio-PDO offer alternatives topetroleum-based plastics that are functionaland better for the environment.

Issues of Importance to the Industry

ObesityObesity is an important and concerning publichealth matter. As a result, many scientists,health professionals and government agen-cies are actively searching for causes andsolutions. The media covers this subject withvarying levels of expertise. Unfortunately,some greatly oversimplify this important issueby attempting to single out specific foodingredients, sometimes including high fructosecorn syrup (HFCS), as a unique or the solecause for the complex conditions of over-weight and obesity.

CRA frequently submits letters to newspapersthat publish reports mischaracterizing HFCS,and sends packets of science-based informa-tion to reporters. These materials have beeneffective in educating both the media and thepublic about the issues. As a result, there hasbeen a marked increase in articles that focuson the science and therefore provide moreaccurate information on HFCS. A significantdevelopment was a balanced, science-basedarticle in The New York Times, which reacheda large audience and provided several quotesfrom leading experts that dispute the exist-ence of any unique role played by HFCS inincreased overweight and obesity.

CRA has developed a one-page summary ofrepresentative quotes from a variety of expertsthat dispute the myth that HFCS is uniquelyresponsible for obesity. This document, alongwith a list of the top 10 published myths aboutHFCS, has greatly contributed to the public'saccess to science-based information on HFCS.

Other important developments include new

32006 Corn Annual

Compiled for the Corn Refiners Association by VERIS Consulting, LLC. Statistics represent shipments by members of theassociation. Shipments are in pounds, commercial weights, and do not include co-products derived from ethanol production.

6,699,213,000

32,566,400,000

10,284,652,000

13,219,195,000

23,503,847,000

39,265,613,000

2,063,625,000

1,079,430,500

10,046,508,500

2,468,292,000

1,282,614,000

56,206,083,000

Shipments of Products of the Corn Refining Industry—2005Shipments of Products of the Corn Refining Industry—2005

Starch Products (includes corn starch, modified starch and dextrins)

Refinery Products (includes glucose syrup, high fructose syrup, dextrose, corn syrup solids, maltodextrins)

High fructose corn syrup—42%

High fructose corn syrup—55%+

Total HFCS

Total - Domestic Basic Products

Total - Export Basic Products

Corn oil (crude and refined)

Corn gluten feed and corn oil meal

Corn gluten meal

Steepwater

TOTAL SHIPMENTS

research presented at Experimental Biology2006. Kathleen J Melanson, et al., at RhodeIsland University recently reviewed the effectsof HFCS and sucrose on circulating levels ofglucose, leptin, insulin and ghrelin in a studygroup of lean women. The study found “nodifferences in the metabolic effects” of HFCSand sucrose. Martine Perrigue, et al., at theUniversity of Washington also presentedresearch that demonstrated that beveragessweetened with sucrose, HFCS and aspar-tame, as well as 1% milk, all have similareffects on satiety (feeling of fullness).

CRA has distributed science-based informa-tion on HFCS in other ways, including sendingarticles, press releases and other materials tojournalists, dieticians and other health profes-sionals who regularly address obesity issues.CRA also exhibits at conferences and pro-vides informative, science-based materials togroups that request information on HFCS. TheCRA engages in discussions with relevantprofessional groups at the American DieteticAssociation (ADA) public policy workshop, theADA annual conference, the Institute of FoodTechnologists conference, the School NutritionAssociation conference and the North Ameri-

can Association for the Study of Obesityconference. We increased our outreach tofood manufacturers and other HFCS usersthrough meetings and trade publications.

To ensure that the information we provide isrelevant and scientifically sound, CRA utilizesa Scientific Advisory Panel comprised ofindependent and highly respected outsideexpert advisors. The Advisory Panel alsoreviews CRA submissions to federal regula-tory agencies and other governmental bodies.

Mexico Sweetener DisputeThe industry experienced a significant victoryin the Mexico sweetener dispute in March2006, when the World Trade OrganizationAppellate Body reconfirmed an earlier rulingthat Mexico’s tax on beverages containingHFCS violated its international commitments.As a result, the Mexican Government hasagreed to lift the soda tax in January 2007.

The WTO Appellate Body’s ruling fosteredmomentum for a final resolution of the sweet-ener dispute. In late July 2006, the U.S. andMexico reached an agreement that estab-lished a 15-month HFCS tariff-rate quota to

4 2006 Corn Annual

through global trade negations under the WTOis the best method to increase exports of value-added products of the industry. Unfortunately,ministers failed to reach a framework deal forthe WTO Doha Development Agenda negotia-tions at the end of July 2006. While WTOmember countries are engaged in extensiveefforts to restart the negotiations, it is unclearwhen the talks will resume.

The Bush Administration has pressed forwardwith regional agreements that representopportunities for growth in exports of refinedcorn products. The United States concludedfree trade negotiations with Colombia andPeru this year. In both agreements, duties oncorn wet milled products will be reduced tozero either immediately or during the imple-mentation phase of the agreements. It ishoped that Congress will ratify the FTA withPeru and the agreement with Colombia in thenear future.

FTA negotiations continue with Panama,Korea, Malaysia and Thailand.

EnvironmentCorn refiners have been long-time proponentsof environmental responsibility through use ofenergy efficient technologies, compliance withenvironmental regulations and product devel-opment. Over the last four years, the CRA hasworked successfully with the U.S. Environ-mental Protection Agency to develop a moreaccurate way to measure volatile organiccompound (VOC) emissions from corn wetmilling facilities. The measurement tool wasrecently approved by EPA and will become thenew official method. It will quantify total VOCmass emissions on an individual VOC speciesbasis and will siginificantly improve theunderstanding of industry VOC emissions.

In MemoriamThe CRA would like to recognize the life ofRobert C. Liebenow (1923-2006). Mr. Liebenowwas president of the Corn Refiners Associationfrom 1965 to 1990 and was an integral part ofensuring its strength and longevity. Among hismany accomplishments, he successfully guidedthe transition of the Corn Industries ResearchFoundation to the CRA.

Mexico, beginning October 1, 2006. Theagreement reconfirms the terms laid out in theNorth American Free Trade Agreement settingan irreversible path to free trade in sweeten-ers on January 1, 2008.

Although the deal does not fully compensatethe corn refining industry for losses over thepast ten years, or fully resolve all outstandingdisputes, it solidifies the promise for increas-ing U.S.-owned corn sweetener presence inMexico. Since 1997, the sweetener impassewith Mexico has resulted in more than $4billion in lost HFCS sales, both HFCS exportsand U.S.-owned HFCS sales in Mexico, or inexcess of 800 million bushels of corn produc-tion, including lost corn sales to Mexicointended for sweetener production.

Farm BillWith a new Farm Bill to be written in 2007, theCRA has been actively involved in informingCongress of the corn refining industry’sposition on legislation impacting sweetenertrade. Under the existing Farm Bill, themarketing allotments in the current sugarprogram act as a barrier to sweetener tradewith Mexico. The CRA will not be in a positionto support the U.S. sugar program in the nextFarm Bill if marketing allotments, or anyaspect of the sugar program, jeopardizes fullimplementation of free trade in sweetenersunder the NAFTA.

Together with the Sweetener Users Associa-tion, the CRA is encouraging the House andSenate Agriculture Committees to closelyreview the sugar program for the next Farm Billto ensure that it is consistent with the NAFTA.

TradeIn 2005, the industry used nearly 1.9 billionbushels of corn or 16 percent of the total corncrop of 11.8 billion bushels. Corn refinersexported nearly 21 percent of the industry’s2005 shipments equaling 5.4 million metrictons of refined corn products, which contrib-uted over $1.3 billion to the U.S. economy.

Exports of refined corn products are an impor-tant segment and have a substantial impact onthe industy’s health. Reduction of trade barriers

52006 Corn Annual

The HonorableCharles E. GrassleyU.S. SenatorState of Iowa

As a federal lawmaker from rural America, I work hard in Washington to educate folks about the importance of

agriculture in our society. Some people takeAmerica’s agricultural abundance for granted.Others may not understand the sophisticatedsystem that gets a kernel of corn into yourcereal bowl or gas tank.

Iowa’s farmers provide sustenance for theworld. Its rich soil, warm summer weather andideal amount of rain (most years) make ourstate an ideal place to plant and grow corn. In2005, Iowa farmers grew nearly 2.2 billionbushes of corn, the most of any state in the

Iowa’s Role in Developing aSustainable EnvironmentIowa’s Role in Developing aSustainable Environment

Exports of Products From Corn–2005Product

Corn meal

Corn starch

Corn oil, crude

Corn oil, once refined

Corn oil, fully refined

Glucose (dextrose)Glucose syrup not containingfructose or containing in the drystate less than 20% fructose

Glucose syrup with 20-50% fructose

Chemically pure fructose

Fructose syrup with 50%+ fructoseFructose solids containingmore than 50% fructose

Bran, sharps and other residues

Corn gluten feed

Corn gluten mealOther residues of starchmanufacturing

Corn oil cake

DextrinsModified starches derivedfrom corn starch

2005

167,311,586

136,621,645

160,661,753

27,414,259

165,114,016

90,904,441

205,680,808

38,627,510

156,249,755

134,151,077

10,631,101

97,274

2,853,652

829,626

62,677

3,344,802

21,031,181

191,296,644

Units

Kilograms

Kilograms

Kilograms

Kilograms

Kilograms

Kilograms

Kilograms

Kilograms

Kilograms

Kilograms

Kilograms

Metric tons

Metric tons

Metric tons

Metric tons

Kilograms

Kilograms

Kilograms

Value

$41,556,873

$56,725,860

$117,204,850

$21,524,871

$133,999,920

$ 42,973,013

$54,758,445

$9,791,141

$77,674,546

$46,316,824

$22,283,939

$10,126,289

$244,428,750

$267,924,342

$12,213,474

$564,202

$15,664,602

$131,056,597

Source: U.S. Department of Commerce

Exports of Products From Corn–2005

nation. Most years, Iowa produces more cornthan an individual country. For instance, Iowagrows three times as much corn as a countrylike Argentina.

Corn has historically been an important partof Iowa’s economy. As a leading livestockproducer, Iowa’s corn crop also providesfarmers a ready-available outlet for theproduct. The livestock produces waste thatcan be used for fertilizer which in turn pro-vides nutrients that help bring greater cornyields.

The bounty reaped each year from Iowa’s

6 2006 Corn Annual

corn fields helps provide America with foodsecurity, economic security and homegrownenergy security. Iowa is currently home to 25ethanol refineries with 11 more under con-struction. These ethanol plants are tappinginto the region’s high-quality workforce andoffering area farmers a new market for theircrop, which will fuel economic growththroughout the entire region.

Ethanol and renewable energy fosters eco-nomic development, creates new markets forfarmers, brings America closer to energyindependence and provides a clean-burningalternative for consumers.

With the best corn production in the country,it’s no surprise that Iowa also leads the way inthe number of corn wet milling plants. Thereare seven corn wet milling plants in Iowa.And, we now proudly boast of the fact that thefirst wet mill plant to be built in more than adecade will come to fruition in Iowa. This newplant will put to use new techniques that willincorporate new energy conservation technol-ogy and provide increased starch yields.

The seven plants already in use, along with

the new plant to be located near Fort Dodge,contribute heavily to the economy of Iowa.The wet milling industry employs nearly 6,000individuals with a payroll of more than $270million. It also purchases corn from nearly5,000 Iowa farmers, helping farmers addvalue to their initial corn product.

While Iowa leads the country in corn produc-tion, wet corn milling and ethanol, Iowa is alsoleading the way in creating a more sustainableenvironment which has had a dramatic impacton corn production. Whether through conven-tional methods, including no-till planting andcontour farming, or high-precision practices,such as Global Positioning Systems andgenetically engineered seeds, farmers youngand old work to find harmony with the environ-ment and the needs of their farming operation.Iowa corn farmers use less land and increaseprotection of the environment, while producingmore food than ever.

Iowa is proud of its heritage in developingtechniques that allow for greater stewardshipof the land while increasing productivity. Forinstance, it was in Iowa where the idea for thefirst corn picker was drawn. By 1880, Patrick

Lawler had drawn his ideas, pur-chased a blacksmith shop and builttwo machines. Unfortunately, in theend, he was unable to sell them.

Iowa was also home to the firstgasoline-powered tractor. In 1892,John Froelich built a tractor that couldpropel itself backward and forward.Just a year later, Mr. Froelich, alongwith several investors, founded theWaterloo Gasoline Traction EngineCompany, which later became knownas John Deere Tractor Works.

And, Iowa has had some of the mostrenowned scientists in the worldworking to develop a better corn plantand seed for farmers. Iowa native,Norman Borlaug, is said to havesaved more lives than anyone else inhistory through his development ofhigh-yielding wheat. But a little knownCo

urte

sy o

f Car

gill, I

ncor

pora

ted

72006 Corn Annual

uses in plastics, fuel and fiber. Through theirresearch, production efficiency could increaseby 20 percent over the next ten years.

Iowa is proud of its past, but we are just asproud to be leading the way in using corn forvalue-added agriculture, such as corn plasticsand ethanol, which has given new life to therural communities that dot the landscape.

From small farming communities to bustlingmetropolitan centers, Iowa’s agriculturalnetwork contributes greatly to our economic,social and cultural way of life. It’s all part of asustainable environment. Farming is anhonorable way to earn a living and a nobleservice to humanity to feed the hungry. As thetemporary caretakers of Earth’s naturalresources, farmers understand their steward-ship will have lasting consequences for futuregenerations.

fact to many people is that he also worked toexpand yields of corn to help prevent famine.Recently, the International Maize and WheatCenter where Borlaug did much of his re-search, produced genetically enhanced cornseeds that naturally tolerate the herbicideimazopyr, which has helped quadruple Africancorn yields.

George Sprague, an Iowa State University andU.S. Department of Agriculture scientist,helped develop the scientific principles thatprovide the foundation for corn breeding andgenetics research. Lines from his Stiff StalkSynthetic are widely used in producingcommercial corn hybrids today.

Now, scientists at Iowa State University areusing one of the nation’s most powerfulcomputers to help decipher the corn genome.Their work could allow them to expand corn’s

HFCS

379

392

415

441

459

473

492

513

530

540

530

541

532

530

521

535

537

Glucose andDextrose

200

210

214

219

224

227

233

229

219

222

218

217

219

228

222

225

227

Starch

219

225

218

225

230

226

238

246

240

251

247

246

256

271

278

280

285

Fuel Alcohol

349

398

426

458

533

396

429

481

526

566

628

706

996

1,168

1,323

1,600

2,150

BeverageAlcohol

135

161

136

110

100

125

130

133

127

130

130

131

131

132

133

135

135

Cereals andother products

124

128

129

140

150

161

172

182

184

185

185

186

187

187

189

190

191

Total

1,406

1,514

1,538

1,593

1,696

1,608

1,694

1,784

1,826

1,894

1,938

2,027

2,321

2,516

2,666

2,965

3,525

Year

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

In million bushelsSource: USDA - Economic Research Service. Year beginning Sept. 1.

Corn: Food and Industrial UsesCorn: Food and Industrial Uses

8 2006 Corn Annual

The corn refining industry is constantly evolving and developing new products. In recent years, new products gaining

the most attention have focused on replacingpetroleum-based plastics and moving toward acarbohydrate economy. But there are severalstars of the industry that have long played arole in environmental sustainability—all of thetraditional core products of the industry in fact.

Corn StarchTake corn starch for example. As a simplecarbohydrate, corn starch can be manipulatedin a variety of ways to produce numerousproducts that benefit the environment.

In the 1970s, researchers at the U.S. Depart-ment of Agriculture developed a process tograft polymers to starch molecules creating asuper absorbent capable of holding 2,000times its own weight in water. It can be used indisposable diapers, sanitary napkins, ban-dages and baby powders, and can be used toremove water from fuels and to clean up

pesticide spills. When used as a soil input, thematerial improves soil fertility, increases cropyields, cuts irrigation up to 50% and reducesfertilizer usage. It is biodegradable, and unlikepoly-acrylate acid-based synthetic polymers, itis non-toxic. It reduces leaching of soil addi-tives into the environment by as much as 30%.

Corn starch can be expanded and extrudedto create a viable, ecological packagingmaterial alternative to synthetic foams suchas polyethylene and polystyrene that per-forms just as well and has several environ-mental advantages. The corn starch-basedmaterial can be extruded into loose fillpacking peanuts or manipulated to producesheets or blocks that can be die cut to fitspecific items. The material is completelybiodegradable. It can be composted ordissolved in water. Petroleum-based counter-parts, on the other hand, take hundreds ofyears to decompose in landfills and emitharmful toxins when incinerated. In addition,production of corn starch-based packing does

Corn Refined Products:Sustainable at the CoreCorn Refined Products:Sustainable at the Core

Corn Refining Plants:

Location:

Corn Grind:

Value of Corn Purchased:

Number of Corn Suppliers

Direct Employment by CRA Member Companies:

Capital Investment (Replacement Value):

MAJOR PRODUCTS (estimated)

Sweeteners (dry weight):

Starches:

Ethanol:

Co-Products:

Value Added by Manufacture:

U.S. Corn Refining Industry at a Glance—2005

26

12 states

1.6 billion bushels

$3.1 billion

41,000

65,300*

$13 billion

25.1 billion pounds

7.3 billion pounds

1.4 billion gallons

28.3 billion pounds

$7.8 billion

*Includes employees that provide services in non-corn refining areas.Compiled by the Corn Refiners Association based on data from the U.S. Department of Agriculture, LMC CommodityStudies, Renewable Fuels Association, and industry data compiled for CRA by VERIS Consulting, LLC.

U.S. Corn Refining Industry at a Glance—2005

Jack FortnumChairman of the BoardCorn RefinersAssociation

President NorthAmerica DivisionCorn ProductsInternational, Inc.

92006 Corn Annual

not require chemicalblowing agents thatharm the ozone layer.

Cationic starch hasallowed paper manu-facturers to userecycled fibers moreeffectively. Not onlydoes the ability totransform morerecycled content intoquality papers benefitthe environment, butpaper manufacturerscan also increasemachine speeds andconserve energy whenusing cationic starchin the process. Cat-ionic starches canalso be used asalternatives to syn-thetic agents inwastewater treatment.Cationic starch is abiodegradable andenvironmentallyfriendly option for useas a clarifier (separa-tion of solids and liquids) and an emulsionbreaker (separation of oils from water).

Recent advances in starch technology allowstarch granules to be broken down intonanoparticles, which significantly increasesthe surface area of the starch granules. Thenanoparticles show promise in the area ofadhesives because they require less waterand subsequently less time and energy to dry.Nanoparticle adhesives may be able toreplace the polyvinyl acetate and polyvinylalcohol used to help laminate graphics ontocardboard. They may also prove useful inreducing the use of styrene butadiene latex, orSBR, which is used as a binder in papercoatings.

Corn SweetenersCorn syrup and dextrose provide the fermen-tation base for a number of products that

serve as alternatives to products that aredetrimental to the environment.

Acetic acid, which is a solvent in the chemicalprocess industry, can be fermented fromdextrose. Industrial acetate has traditionallybeen produced from petroleum sources. Theenvironmental benefit of producing acetic acidfrom a renewable resource is significant, butthere is more to the story.

Acetic acid can be transformed into an envi-ronment-friendly, noncorrosive highway deicercalled calcium-magnesium acetate (CMA).CMA does not have the harmful environmentalimpacts of chloride salts, which includegroundwater contamination and damage tohighways, bridges, concrete structures,vehicles and roadside vegetation.

Indigo was once produced from the indigoplant, but most of the dye used in today’s

Courtesy of Archer Daniels Midland Company

10 2006 Corn Annual

designer jeans is made via chemical synthe-sis. However, indigo can be made with cornsyrup as the base. Indigo production viachemical synthesis uses and produces highlytoxic chemicals. The process requires specialprecautions and facilities to protect workersand the environment. By contrast, the processof making indigo from corn syrup via a bio-catalyst employs no harmful chemicals andproduces only biomass and carbon dioxide inaddition to the dye.

Corn syrup is showing promise as a keyingredient to make hydrogen for fuel cells. Thevast majority of hydrogen is currently madefrom fossil fuels through a process calledsteam reforming. In this process, a mixture ofsteam and methane is heated to temperaturesabove 800 degrees Celsius, and then reactswith a catalyst to produce hydrogen and carbonmonoxide. The process using corn syrup as afeedstock, developed by Virent Energy Sys-tems, requires significantly lower operatingtemperatures (250°C) and is more efficient.

Corn OilMost are familiar with ethanol as an alterna-tive fuel made from corn, but there is anotheralternative fuel that can be made from corn.Corn oil can be used as a feedstock to pro-duce biodiesel, a clean burning alternative fuelthat contains no petroleum. Biodiesel can be

blended at any level with petroleumdiesel to create a biodiesel blend, whichcan be used in diesel engines with littleor no modifications. It is simple to use,biodegradable, nontoxic, and essentiallyfree of sulfur and aromatics.

Another interesting, environmentallyfriendly use of corn oil is as a degreaserin the screen printing industry. Corn oilcan be distilled into a fast drying surfacecleaner for removing left-over cleaningsolvents from screens.

Researchers at Iowa State Universityhave developed plastics from corn oil.The materials show promise to producenew rubbers, elastomers and plasticsthat more readily biodegrade. The corn

oil-based plastic demonstrates thermal,mechanical and physical properties notpresently available in commercial plastics,such as good vibration damping and shapememory properties.

Corn Feed ByproductsCorn gluten meal offers a non-toxic, yeteffective alternative to traditional, chemical-based weed and feed products for weedcontrol in gardens and lawns, paths anddriveways, reducing the need for traditionalherbicides that have environmental sideeffects. Corn gluten meal contains 10%nitrogen by weight and makes an excellentfertilizer. It can reduce crabgrass by up to 98%and suppresses many other weeds fromgerminating including dandelions, creepingbentgrass, smart weed, pigweed, purslane,lambsquarter, foxtail and Bermuda grass.

These are only a few examples of how refinedcorn products support a sustainable environ-ment. With greater interest in reducing our useof non-renewable resources, research intocarbohydrate-based alternatives to petroleum-based products is gaining momentum. Refinedcorn products have already demonstrated theirvalue toward creating a sustainable environ-ment and are key candidates for furthergrowth in this area.

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112006 Corn Annual

Corn for Grain: Yield and Production

CT, ME, MA, NV, NH, RI, VT not estimatedSource: USDA - National Agricultural Statistics Service

State

ALAZARCACODEFLGAIDILINIAKSKYLAMDMIMNMSMOMTNENJNMNYNCNDOHOKORPASCSDTNTXUTVAWAWVWIWYUS

AREA HARVESTEDThousand Acres

YIELDBushel Per Acre

PRODUCTIONThousand Bushels

2003190

22350140890162

39290

5011,050

5,39011,900

2,5001,080

500410

2,0306,650

5302,800

177,700

6148

440680

1,1703,070

19030

890215

3,850620

1,65013

3307027

2,85050

70,944

2005200

22230110950154

28230

6011,950

5,77012,500

3,4501,180

330400

2,0206,850

3652,970

178,250

6255

460700

1,2003,250

25025

960285

3,950595

1,85012

3608028

2,90049

75,107

2003122190140160135123

82129140164146157120137134123128146135108140146113180121106112156125170115105111131118155115195115129129

142.2

2004123180140175135152

90130170180168181150152135153134159136162143166143180122117105158150170140100130140139155145200131136131

160.4

2005119195131172148143

94129170143154173135132136135143174129111148154122175124120129143115160122116119130114163118205109148140

147.9

200323,180

4,18049,00022,400

120,15019,926

3,19837,410

7,0001,812,200

786,9401,868,300

300,000147,960

67,00050,430

259,840970,900

71,550302,400

2,3801,124,200

6,8938,640

53,24072,080

131,040478,920

23,7505,100

102,35022,575

427,35081,220

194,7002,015

37,95013,650

3,105367,650

6,45010,089,222

200423,985

4,86042,70026,250

140,40023,256

2,88036,40012,750

2,088,000929,040

2,244,400432,000173,280

55,35065,025

257,2801,120,950

59,840466,560

2,1451,319,700

10,29610,44061,00086,580

120,750491,380

30,0004,760

137,20029,500

539,50086,100

233,5201,860

52,20021,000

3,799353,600

6,55011,807,086

200523,800

4,29030,13018,920

140,60022,022

2,63229,67010,200

1,708,850888,580

2,162,500465,750155,760

44,88054,000

288,8601,191,900

47,085329,670

2,5161,270,500

7,5649,625

57,04084,000

154,800464,750

28,7504,000

117,12033,060

470,05077,350

210,9001,956

42,48016,400

3,052429,200

6,86011,112,072

2004195

27305150

1,040153

32280

7511,600

5,53012,400

2,8801,140

410425

1,9207,050

4402,880

157,950

7258

500740

1,1503,110

20028

980295

4,150615

1,68012

360105

292,600

5073,631

Corn for Grain: Yield and Production

12 2006 Corn Annual

Biotechnology has revolutionized agriculture,increasing yields and creating a sustainablecrop for generations to come.

But back in the mid-1990s when we incorpo-rated biotechnology on our farm, we were notwithout questions. Will it work? How will itaffect yields? How will it affect bottom lines?

Most farmers saw the promise of the futurebenefits of biotechnology, but there was a risk-reward approach. If we adopt biotechnology,how will export markets respond? Will therebe a consumer backlash? Our customers inthe corn refining, corn processing and groceryindustry may have had similar concerns.

After 11 years, those concerns have mostlysubsided. Biotechnology has worked and it isbeing accepted by more people every day.The National Corn Growers Association hasworked as a bridge between the seed compa-nies and the regulatory process to ensure allparties are informed and the technology isresponsibly implemented.

As we move into the next generation ofbiotechnology crops, we will face new chal-lenges of usage. An old adage has held truefor hundreds of years: provide the market andfarmers will provide the product. Corn refinersand processors have been a reliable corncustomer for years. But corn growers need theindustry to find new uses for the comingdecades, ensuring demand keeps up withproduction.

Producing a sustainable cropBiotechnology and the increased productioncapabilities of growers are allowing them toproduce more corn on less land and meetdemand for new markets, such as ethanol andthe smaller, but growing market of biopoly-mers. Corn growers are adopting no-till andstrip-till practices to conserve nutrients fromcorn stover and reduce soil erosion. Steward-ship of the crop and the land are important tocorn growers.

In 2006, more than 60 percent of all cornacres were planted with at least one biotech

The Next Generation of CornThe Next Generation of Corntrait. Yields have risen sharply, from 126.5bushels in 1996 to an estimate of 153.5bushels per acre in 2006. Inputs have de-creased, as farmers do not have to apply asmuch herbicide and pesticide to crops. Withbiotechnology bringing yields up and pushinginputs down, farmers’ bottom lines haveimproved.

As a result, today corn growers excitedly askabout biotechnology, “What’s next?” Thanks tothe research and development arms of seedand biobased companies and the willingnessof corn farmers to embrace biotechnology,there are many answers.

Corn growers have invested hundreds ofthousands of checkoff dollars in severalresearch projects over the years. Growers’trust in agriculture-related enterprises hashelped to advance “bio” from a niche term tothe mainstream.

Seed companies’ pipelines have more corntraits in development by at least a three-to-one margin over soybeans, the next closestcrop. Examples of corn traits include: high-oil;high-fermentable starch; drought-tolerant; andnitrogen fixation.

Such traits will help producers achieve evenhigher yields with fewer inputs, maintaining asustainable environment. Drought-tolerantcorn would save water and money for farmerswho irrigate in the forms of less water to pumpand longer-lasting sprayers because ofreduced use. Nitrogen fixation traits allow agrower to cut back on nitrogen use and stillharvest a large crop. Both of these traitsreduce agriculture’s use of petrochemicalsand limited resources.

Producing for the marketsBut higher yields mean little to the producer ifhe does not have a market for his corn. As wehave produced more since the adoption ofbiotechnology, our traditional markets—food,feed, and exports—have not consumed ahigher percentage of corn; they have remainedrelatively flat in terms of market share, reducingtheir percentage of total corn consumption.

Ken McCauleyPresidentNational CornGrowersAssociation

132006 Corn Annual

U.S. Per Capita Sweetener Deliveries*for Food and Beverage Use

Year

1970

1975

1980

1985

1990

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

Refined Sugar

101.8

89.2

83.6

62.7

64.4

64.9

65.1

64.9

64.9

66.3

65.5

64.5

63.3

61.0

61.7

63.4

HFCS

0.5

4.9

19.0

45.2

49.6

57.6

57.8

60.4

61.9

63.7

62.7

62.6

62.9

61.0

59.9

59.2

Glucose

10.7

14.0

12.9

13.5

13.6

16.3

16.4

17.3

17.1

16.3

15.8

15.5

15.5

15.2

15.6

15.3

Dextrose

4.6

4.4

3.5

3.5

3.6

4.0

4.0

3.7

3.6

3.5

3.4

3.3

3.3

3.1

3.3

3.2

Total

15.9

23.3

35.3

62.2

66.8

77.9

78.2

81.4

82.7

83.5

81.8

81.4

81.6

79.3

78.9

77.7

Honey and

Edible Syrups

1.5

1.4

1.3

1.3

1.2

1.3

1.4

1.4

1.4

1.5

1.5

1.4

1.5

1.4

1.3

1.5

Total Caloric

Sweeteners

119.1

113.8

120.2

126.2

132.4

144.1

144.7

147.7

149.0

151.4

148.9

147.3

146.5

141.7

141.9

142.6

Corn Sweeteners (dry basis)

Units Measured in PoundsSource: USDA—Economic Research Service* Per capita deliveries of sweeteners by U.S. processors and refiners and direct-consumption imports to foodmanufacturers, retailers, and other end users represent the per capita supply of caloric sweeteners. Actual human intakeof caloric sweeteners is lower because of uneaten food, spoilage, and other losses. Figures do not include deliveries toalcohol manufacturers.

U.S. Per Capita Sweetener Deliveries*for Food and Beverage Use

One market has increased its share year afteryear: ethanol. Production has increased from1.1 billion gallons of ethanol in 1996 to anestimated 5 billion gallons in 2006. At the timeof publication, 106 plants are online capableof producing 5.8 billion gallons per year, and45 plants are in the construction or expansionstage, which would add 3.4 billion gallons tocapacity. When completed, these plants willproduce 8.5 billion gallons of ethanol. Inaddition, 114 plants are proposed, whichwould add more than 7 billion gallons ofethanol.

Clearly, ethanol is currently the one marketthat holds the most potential for corn growers.

As a result, ethanol is pushing the corn growerto continue to produce record yields.

Increased yields realized through biotechnol-ogy and the growing demand of ethanol arefueling NCGA’s vision of 15 billion bushels ofcorn and 15 billion gallons of ethanol by 2015.NCGA believes corn growers can consistentlyachieve this goal beyond 2015—and still fulfillcommitments to other markets—for a couplereasons: the corn traits on the market andthose in the pipelines and an increased focuson improving efficiency in ethanol production.

Corn traits with high-fermentable starch willincrease the ability to squeeze more ethanol

14 2006 Corn Annual

out of the kernel. A bushel of high-fermentablestarch corn is likely to yield 3 to 5% moreethanol than a bushel of conventional corn.Uniform application of this technology acrossthe industry would result in a dramatic in-crease in ethanol production without signifi-cantly altering corn acreage. The multiplyingeffect of increased ethanol conversion ratesand increased corn yields results in a consid-erable gain in ethanol per acre.

While the ethanol market is currently seeing arapid, sizeable increase, another market toreduce our dependence on petroleum showspromise: corn-based polymers. Polylactic acid(PLA) is the most developed corn-basedplastic product. The PLA plant located in Blair,Nebraska, will use 14 million bushels of cornannually when it reaches production capacityof 300 million pounds.

The potential of corn-based polymers is evidentin the investments being made to bring othertypes of biopolymers to the market. A new plantis being built in Loudon, Tennessee, that willproduce 100 million pounds of Bio-PDO, or 1,3propanediol, annually. Another plant is beingbuilt in Clinton, Iowa, that will produce morethan 110 million pounds per year of polyhy-droxyalkanoate (PHA). Both are corn-basedpolymers that will replace plastics made fromfossil fuels.

All of these biopolymers are made by fermenta-tion of sugars derived from corn starch, so corntraits with high-extractable starch are importantto the production system. High-extractablestarch is not a new corn trait, but is still beingrefined and improved. These hybrids mill moreeasily and provide greater starch recovery fromthe gluten fraction of the kernel.

Corn: Supply and DisappearanceSUPPLY DISAPPEARANCE ENDING

STOCKS

Year

Beg

inni

ngSe

ptem

ber 1

Begi

nnin

g St

ocks

Prod

uctio

n

Impo

rts

Tota

l

Food

, Alc

ohol

and

Indu

stria

l

Seed

Feed

and

Res

idua

l

Tota

l

Expo

rts

Tota

l Dis

appe

aran

ce

Tota

l

Million BushelsSource: USDA – Economic Research Service* Preliminary** Projected

1996/97

1997/98

1998/99

1999/00

2000/01

2001/02

2002/03

2003/04

2004/05

2005/06*

2006/07**

425.9

883.2

1,307.8

1,787.0

1,717.5

1,899.1

1,596.4

1,086.7

958.1

2,114.0

1,970.6

9,232.6

9,206.8

9,758.7

9,430.6

9,915.1

9,502.6

8,966.8

10,089.2

11,807.1

11,112.1

10,905.2

13.3

8.8

18.8

14.7

6.8

10.1

14.5

14.1

10.8

11.0

10.0

9,671.8

10,098.8

11,085.3

11,232.3

11,639.4

11,411.8

10,577.7

11,190.0

12,776.0

13,237.0

12,885.8

1,693.9

1,784.4

1,826.5

1,893.0

1,937.6

2,026.3

2,320.2

2,516.7

2,664.9

2,955.2

3,520.0

20.3

20.4

19.8

20.3

19.3

20.1

20.0

20.5

20.8

20.2

20.0

5,277.0

5,481.8

5,467.8

5,664.9

5,842.1

5,864.2

5,562.9

5,794.9

6,158.3

6,141.1

6,100.0

6,991.2

7,286.6

7,314.1

7,578.2

7,799.0

7,910.6

7,903.1

8,332.1

8,844.0

9,116.5

9,640.0

1,797.4

1,504.4

1,984.2

1,936.6

1,941.3

1,904.8

1,587.9

1,899.8

1,818.1

2,150.0

2,250.0

8,788.6

8,791.0

9,298.3

9,514.8

9,740.3

9,815.4

9,491.0

10,231.9

10,662.0

11,266.5

11,890.0

883.2

1,307.8

1,787.0

1,717.5

1,899.1

1,596.4

1,086.7

958.1

2,114.0

1,970.6

995.8

Corn: Supply and Disappearance

152006 Corn Annual

PRODUCTIONArgentinaBrazilCanadaChinaEgyptEU-25IndiaIndonesiaMexicoNigeriaPhilippinesRomaniaSerbia & MontenegroRepublic of South AfricaUkraineOthersUnited StatesTOTALCONSUMPTIONArgentinaBrazilCanadaChinaEgyptEU-25IndiaIndonesiaJapanRepublic of KoreaMexicoNigeriaPhilippinesRomaniaRepublic of South AfricaOthersUnited StatesTOTALENDING STOCKSBrazilCanadaChinaEU-25IranRepublic of KoreaMexicoOthersUnited StatesTOTAL

2004/0520,50035,000

8,840130,290

5,84053,47814,180

7,20022,050

6,5005,050

12,0006,569

11,7168,800

64,380299,914712,307

5,20038,50010,314

131,00011,30051,70013,900

7,90016,500

8,66627,900

6,3005,1509,5009,700

105,764224,648685,013

4,1921,802

36,5557,5181,4131,4664,440

19,44353,697

130,526

2005/0614,50041,000

9,461139,365

5,86048,31815,090

6,90019,500

7,0005,900

10,3006,6007,0007,150

66,538282,260692,742

5,90039,00010,812

137,00010,10048,70014,600

8,10016,700

8,90027,900

6,8005,8009,7009,100

108,526231,568699,766

3,6922,001

35,19510,036

1,3131,4292,640

18,18650,055

123,502

World Corn Production,Consumption and Stocks

Source: USDA, Foreign Agricultural ServiceBased on local marketing years in thousands of metric tons.

World Corn Production,Consumption and Stocks

And the great thing is that the corn-basedpolymers are compostable. Once a corn-based plastic container is disposed, it willcompost within 45 days. Petroleum-basedplastics take thousands of years to breakdown.

Corn growers are relying on biotechnology tohelp them reach high production levels andfulfill the needs of these burgeoning markets.Corn growers, the ethanol industry andrefiners want corn traits that will make theirindustries become more efficient and profit-able.

How do corn refiners benefit?Corn refiners will benefit from biotechnology inmore ways than improved starch recovery.Biotechnology is proving that corn can betailored to what customers want. High-oilcorn? We can do that. More protein in thekernel? Sure thing. To borrow a line from RoyOrbison: Anything you want, you got it. As withethanol, if you can provide the market, thecorn grower will supply it.

When NCGA’s 15 billion bushel vision isrealized, 5 billion bushels of corn will gotoward ethanol production. That leaves 10billion bushels of corn for other uses. WithDDGs replacing corn in livestock and poultryrations, even more corn will be on the market.As mentioned above, corn growers needdemand to keep up with production. Wherewill that demand come from? As corn produc-tion increases, corn refiners and processorswill be challenged to find innovative uses tofulfill the demand.

Corn refiners and processors can be suregrowers are dedicated to supplying everymarket. The future holds promise for ourindustry and yours. Through the potential ofbiotechnology and corn growers’ dedication tosustainability, we’re confident our successeswill continue for years to come.

16 2006 Corn Annual

As interest grows in renewable-based materi-als, corn becomes an even more valuablecommodity to the U.S. economy. Ethanol,plastics and fibers are just three examples ofvalue added, cost effective, more sustainableproducts being made from corn today.

Corn: The Feedstock of ChoiceCorn has long been recognized as the mostcost effective carbohydrate source in the U.S.Farmers have consistently boosted yields andfound ways to increase productivity, despiterising costs. In 2005, U.S. farmers grew11,807 million bushels of corn, a 17% in-crease versus the prior year and the largestcrop on record. On top of this fact, feedstocksbased on corn offer producers price stabilityversus the volatility of the oil market.

Environmental benefits from renewablefeedstocks, especially in greenhouse gasreductions and carbon cycling, are becomingmore important. By replacing petroleumfeedstocks with ones from annually renewableresources, manufacturers are able to reducecarbon emissions into the atmosphere.

According to Dr. Ramani Narayan, Professorof Chemical Engineering at Michigan StateUniversity and internationally recognizedscholar on sustainable biotechnology, societycan move closer to “carbon neutrality” byreplacing petroleum feedstocks with annuallyrenewable ones. Carbon found in petroleumhas taken centuries to be transformed into auseful product and contributes to an overall“carbon imbalance” once it is released backinto the atmosphere as carbon dioxide. Bysubstituting relatively new carbon found inannually renewable resources, the bioprod-ucts industry can help move closer to a morebalanced use of carbon, as shown in thediagram below.

This concept looks good on paper, and evenbetter in reality. The corn-derived polymerpolylactic acid (PLA) produced by Nature-Works LLC provides a concrete example ofthe benefits of corn as a feedstock. By pur-chasing energy from renewable sources(primarily from wind), NatureWorks achievedthe milestone of creating the first commerciallyavailable “green house gas neutral” material.

Going Green: TurningCorn into PlasticsGoing Green: TurningCorn into Plastics

“Biobased & Biodegradable Polymer Materials: Rationale, Drivers, and Technology Exemplars,” Presented at the National American Chemical Society,Division of Polymer Chemistry meeting, San Diego (2005)

Steve MojoExecutive DirectorBiodegradableProducts Institute

CO2

1-10 years

Polymers,Chemicals & Fuels Chemical Industry

BioProducts Industry

Fossil Resources(petroleum, natural gas)

Biomass/Bio-organics

>10,000,000 years

Green Materials &Products

Renewable CarbonCO2 & Biomass

172006 Corn Annual

The polymer can be used to achieve compli-ance with the Kyoto Protocol for reduction ofgreenhouse gases while being cost andfunctionally competitive with petroleumderived PET.

A Trio of Corn-Based BiopolymersToday, there are three types of corn-basedpolymers either in commercial production orvery close to it: PLA, polyhydroxyalkanoates(PHAs) and 1,3 propanediol (Bio-PDO).

NatureWorks LLC, a wholly owned subsidiaryof Cargill, Incorporated, produces PLA and isone of the leaders in the field of biobasedpolymers. The NatureWorks facility located inBlair, Nebraska, started production in 2001and is capable of producing 300 millionpounds of PLA when running at full capacity.PLA production uses 68% less fossil fuel thancomparable traditional plastics manufacturingand generates up to 55% fewer greenhousegas emissions.

PLA can be formed on traditional plasticsequipment into bottles, containers, trays andother packaging. It has excellent clarity, flavorand aroma barrier properties and printability.Today, PLA items are used in the operations ofleading retailers, such as Wal-Mart and WildOats, often replacing PET or polystyreneapplications. These products are compostableand play a critical role in the diversion of foodscraps from landfills to composting facilities,further reducing green house gas production.In addition, PLA is made into fibers, soldunder the trade name “Ingeo.” Today thesenatural fibers are used in clothing and fabrics,providing excellent wicking and “hand.”

Metabolix is the creator of PHAs from renew-able resources. These polymers are veryversatile as well as biodegradable in seawa-ter, soil and composting facilities. Packagingapplications will be the initial targets and willinclude caps, cups, paper coatings andagricultural mulch films. Started in 1992 bytwo professors at the Massachusetts Instituteof Technology, the company announced astrategic alliance with Archer Daniels MidlandCompany in 2004 to build a 50,000 tons/year

facility in Clinton, Iowa. Production from thisfacility of commercial quantities of PHAs arescheduled to start in 2008. Like PLA, produc-tion of corn-based PHAs results in significantenergy savings over its traditional petroleum-based cousins.

DuPont, in conjunction with Tate & Lyle PLC,has created a unique fiber from renewableresources: 1,3 propanediol (Bio-PDO). Thisnew material stems from DuPont’s long termcommitment to develop new materials fromrenewable feedstocks and will use 30-40% lessenergy than petroleum-based PDO. Bio-PDOhas a unique molecular structure that makes itan excellent choice for fabrics and carpeting.Bio-PDO has excellent stretch, stain resis-tance, resilience and holds color well. In 2005,DuPont and Tate & Lyle announced the devel-opment of a $100 million plant to manufactureBio-PDO from corn via fermentation. Thecompanies say that production of 100 millionpounds of Bio-PDO will save the equivalent of10 million gallons of gasoline per year.

Into the MarketplaceClearly, the opportunity to replace petroleum-based plastics with corn-based ones has thepotential to be very large. Last year, the U.S.used 100 billion pounds of plastic, rangingfrom everyday items like trash bags and waterbottles to durable items like automobilecomponents and fiber for clothing. In addition,the U.S. uses approximately half of the totalglobal plastics production. Plastics are part ofthe daily lives of people around the world.Based on estimates from NatureWorks, onebushel of corn can make approximately 22 lbsof PLA. The NatureWorks plant in Blair,Nebraska, will use 13-14 million bushels ofcorn annually when running at full capacity.This is a small fraction of the total plasticsmarket, yet it helps to dimensionalize theopportunity.

However, before corn-based plastics becomewidespread realities in everyday life, manyhurdles need to be overcome, starting withperformance and value. These new materialscompete against well-entrenched commodityresins that utilize petroleum feedstocks. These

18 2006 Corn Annual

have been in production for decades andbenefit from economies of scale and continualproduct improvements. For the most part,today’s buyers are not willing to sacrificeperformance and value in order to usebiobased materials. This means that newmaterials must provide new features andbenefits at a competitive price in order to gaina foothold in the market.

Yet this is being done, now. Brand owners,such as Wal-Mart, Wild Oats in the U.S. andSainsbury in the UK, are making commit-ments to developing and using new applica-tions based on materials derived from renew-able feedstocks. These major retailers believethat applications such as “corn-tainers” willgenerate savings when viewed on a systembasis or will create customer loyalty andhigher sales as customers learn of thebenefits of these new materials. However, theadoption and increasing use of new materialsrequires education throughout the valuechain, starting with converters and going all

the way through to end users. It takes timeand resources to create end user awarenessand pull through for biobased products.

The U.S. Department of Agriculture’s “FederalBiobased Products Preferred ProcurementProgram” (FB4P) is one such initiative that ishelping to stimulate the growth of these newmaterials. Created in 2002 as part of the FarmSecurity and Rural Investment Act (FSRIA),the program’s goal is to identify and to in-crease the federal use of biobased products.Today, USDA has identified eight categories ofbiobased products that will receive preferentialpurchasing from Federal Agencies. The goalof the program is to identify over 1,500different products, all containing significantamounts of renewable materials from agricul-tural feedstocks.

Infrastructure in the form of manufacturingfacilities and personnel are another criticalpart of the development of this new industry.Today, Cargill, ADM and Tate & Lyle are threeexamples of companies making major invest-ments in plants, and equipment to producerenewably-based plastics and polymers.

ADM, Cargill, DuPont, Metabolix, Nature-Works and Tate & Lyle have committedsignificant resources to develop the technolo-gy needed to produce materials, based oncorn, which will compete effectively withpetroleum-based polymers. All of thesematerials provide environmental benefits interms of reduced energy usage and green-house gas emissions. However, these invest-ments are just the start of a long process ofdevelopment and education, not only in NorthAmerica but also around the globe, if bio-based alternatives to commodity plastics aregoing to gain widespread use and accep-tance. But the knowledge that commercialproduction of corn-based biopolymers wasjust a dream less than 10 years ago leavesme optimistic that consumers everywhere willhave the opportunity to reduce their environ-mental footprint by purchasing biobasedplastics in the not too distant future.Co

urte

sy o

f Nat

ureW

orks

LLC

192006 Corn Annual

Corn Refiners Association Member Company Products

ARCH

ER D

ANIE

LSM

IDLA

ND C

OMPA

NY

Product lists are accurate as of publication date, but may change with time.Also available online at http://www.corn.org/memberproductlines.htm.

CARG

ILL,

INCO

RPOR

ATED

CORN

PRO

DUCT

SIN

TERN

ATIO

NAL,

INC.

NATI

ONAL

STA

RCH

AND

CHEM

ICAL

COM

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ROQU

ETTE

AM

ERIC

A,IN

C.

TATE

& LY

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GRED

IENT

SAM

ERIC

AS, I

NC.

Corn Refiners Association Member Company Products

PENF

ORD

CORP

ORAT

ION

STARCH PRODUCTSUnmodified, foodUnmodified, industrialModified, foodModified, industrialDextrinsCyclodextrinsREFINERY PRODUCTSGlucose syrupsMaltodextrinsDextrose monohydrateDextrose anhydrousHFCS-42HFCS-55Crystalline fructoseCO-PRODUCTSCrude OilRefined OilCorn gluten feedCorn gluten mealCorn germ or corn germ mealSteepwater (CFCE)Carbon dioxideFERMENTATION AND OTHER CHEMICALSCitric acidLactic acidLysineThreonineXanthan gumErythritolSorbitolXylitolMannitolMaltitolHydrogenated starch hydrolysatesGlucose hydrolysatesOTHEREthanol, fuel/industrialEthanol, beverage

20 2006 Corn Annual

Corn ProductsInternational, Inc.5 Westbrook Corporate CenterWestchester, Illinois 60154Domestic Plants:

Bedford Park, Illinois 60501-1933Stockton, California 95206-0129Winston-Salem, North Carolina 27107

International Plants:Cardinal, Ontario, CanadaLondon, Ontario, CanadaPort Colborne, Ontario, CanadaGuadalajara, Jalisco, Mexico (2 plants)San Juan del Rio, Queretaro, MexicoTlalnepantla, Mexico State, MexicoBaradero, Buenos Aires, ArgentinaChacabuco, Buenos Aires, ArgentinaBalsa Nova, Parana, BrazilCabo, Pernambuco, BrazilMogi-Guacu, Sao Paulo, BrazilLlay-Llay, Valparaiso, ChileCali, Valle del Cauca, ColombiaEldoret, Rift Valley, KenyaIcheon, Kyungigi-do, South KoreaIncheon, Bupyong-ku, South KoreaFaisalabad, Punjab, PakistanCornwala, Punjab, Pakistan

National Starch andChemical Company10 Finderne AvenueBridgewater, New Jersey 08807-0500Domestic Plants:

Indianapolis, Indiana 46221North Kansas City, Missouri 64116

International Plants:Trombudo Central, Brazil Hamburg, Germany

Penford Products Co.(A company of Penford Corporation)P.O. Box 428Cedar Rapids, Iowa 52406-0428Domestic Plant:

Cedar Rapids, Iowa 52404-2175International Plants:

Lane Cove, Sydney, AustraliaOnehunga, Auckland, New Zealand

Roquette America, Inc.1417 Exchange StreetP.O. Box 6647Keokuk, Iowa 52632-6647Domestic Plant:

Keokuk, Iowa 52632-6647International Plants:

Lestrem, Pas-de-Calais, FranceBeinheim, Bas-Rhin, FranceCassano Spinola, Alessandria, ItalyBenifayo, Valencia, SpainCalafat, Dolj, Romania

Tate & Lyle IngredientsAmericas, Inc.(A subsidiary of Tate & Lyle, PLC)P.O. Box 151Decatur, Illinois 62525Domestic Plants:

Decatur, Illinois 62521Lafayette, Indiana 47902Lafayette, Indiana 47905Loudon, Tennessee 37774

International Plant:Guadalajara, Jalisco, Mexico

Corn Refiners Association Member CompaniesDomestic and International Plant Locations

Archer DanielsMidland CompanyP.O. Box 1470Decatur, Illinois 62525Domestic Plants:

Cedar Rapids, Iowa 52404Clinton, Iowa 52732Columbus, Nebraska 68601Decatur, Illinois 62525Marshall, Minnesota 56258-2744

International Plant:Guadalajara, Jalisco, Mexico

Cargill, IncorporatedP.O. Box 5662/MS62Minneapolis, Minnesota 55440-5662Domestic Plants:

Blair, Nebraska 68008-2649Cedar Rapids, Iowa 52406-2638Dayton, Ohio 45413-8001Decatur, Alabama 35601Eddyville, Iowa 52553-5000Hammond, Indiana 46320-1094Memphis, Tennessee 38113-0368Wahpeton, North Dakota 58075

International Plants:Uberlandia, Minas Gerais, BrazilShanghai, ChinaSong Yuan, ChinaLangholt, Nordjylland, DenmarkHaubourdin, Pas-de-Calais, FranceKrefeld, Nordrhein-Westfalen, GermanyMagdeburg, Sachsen-Anhalt, GermanyCastelmassa, Veneto, ItalyWroclaw, Dolnoslaskie, PolandMartorell, Barcelona, SpainSanto Domingo, SpainWadenswil, Zurich, SwitzerlandEfremov, Tula, RussiaBergen Op Zoom, Noord-Brabant, The NetherlandsSas van Gent, Zeeland, The NetherlandsIstanbul, TurkeyOrhangasi, Bursa, TurkeyVanikoy, Istanbul, TurkeyManchester, England, United Kingdom

Corn Refiners Association Member CompaniesDomestic and International Plant Locations

Jack Fortnum, ChairmanCorn Products International, Inc.

Peter A. Salis, Vice ChairmanNational Starch and Chemical Company

John RiceArcher Daniels Midland Company

Ed HarjehausenArcher Daniels Midland Company

Patrick E. BoweCargill, Incorporated

Ken YoergCargill, Incorporated

Jim GreyCorn Products International, Inc.

James P. ZallieNational Starch and Chemical Company

Thomas MalkoskiPenford Products Co.

Timothy KortemeyerPenford Products Co.

Michael W. JorgensonRoquette America, Inc.

Richard O’HaraRoquette America, Inc.

J. Patrick MohanTate & Lyle Americas

D. Lynn GriderTate & Lyle Ingredients Americas

Board of DirectorsBoard of Directors

Fred M. AshCerestar USA, Inc.

C. G. CaldwellNational Starch and Chemical Company

Paul E. GrunderCPC International Inc.

Patric J. McLaughlinCerestar USA, Inc.

E. S. MicekCargill Trustees

G. M. MitchellCargill Trustees

Donald E. NordlundA. E. Staley Manufacturing Company

William H. PowellNational Starch and Chemical Company

Robert M. PowersA. E. Staley Manufacturing Company

Paul E. RamstadAmerican Maize-Products Company

H. T. ReedPenford Products Co.

John G. Reed, Jr.Archer Daniels Midland Company

Samuel C. ScottCorn Products International, Inc.

Michael A. UrbanicCargill, Incorporated

Richard VandervoortCorn Products International, Inc.

Martin AndreasArcher Daniels Midland Company

Honorary DirectorsHonorary Directors CRA Staff

Audrae EricksonPresident

Jennifer White SnyderSenior Director of Regulatory Affairs

Pat SaksAssistant Director for Food, Healthand International Policy

Becky MarshallAdministrative Assistant

Corn Annual Editor/DesignerShannon Shoesmith McNamara

Photo CreditsFront cover: Archer Daniels MidlandCompany, inset 2 and 3 NatureWorks LLCInside cover: Scott Bauer, ARS/USDAPage header: Archer Daniels MidlandComapnyStatistics background: Doug Wilson,ARS/USDA and Archer Daniels MidlandCompany

CRA Staff

CornCornCornPART OF A SUSTAINABLE ENVIRONMENTPART OF A SUSTAINABLE ENVIRONMENT

Corn Refiners Association Annual Report 2006

Corn Refiners Association1701 Pennsylvania Ave., N.W.

Suite 950Washington, D.C. 20006-5805

tel. 202.331.1634fax 202.331.2054

www.corn.org