Starch Italics 2nd Edition

GIRACT

Starch Italics

GIRACT

Starch Italics StarchItalics

GLOBAL STARCH REVIEW

December/January 2010 CONTENTS

Starch Industry Overview

p.1 Breeding crops for the next decade

Cassava processing: Ekiti state plans for

integrated bio-gas

p.2 Limagrain: Select the best fodder beet

varieties for an extra 1.2t/ha of dry matter

(DM) yield

Feed Outlook: Industrial uses dominate

growth in corn use

p.4 China‘s distiller‘s grains imports ‗could

rocket‘

p.5 Crop strategy paying off

New Forage maize varieties from British

Seed Houses

Scientists urge swift action to protect

cassava crops

p.6 Govt to spend NGN 25 bio n on

agricultural development

p.7 Precision breeding creates super potato for

amylopectin starch

p.8 Herbal supplement of baby food

p.9 Starch prices may rise on low maize

output

A good binder for starch replacement in

charcoal briquettes

p.10 Houston to replace plastics with starches

p.11 Bio-products could soon lower oil prices

by replacing petroleum in plastics

p.12 Mexican Coke brings back the sugar

Tapioca flour release plan approved

Starch Industry Overview (Cont’d)

p.13 Pepsi throwback

Corn groups hit as drinks makers return to

sugar

p.14 How subsidy makes alcohol from grain

competitive

Zebra chip research gets USD 3.9 mio in

funding

p.15 Potato harvest shows Zeba soil moisture

technology holds water; boosts yield and

grade

p.16 AKR receives shareholder approval of its

IDR 540 bio rights issue

Sirane gets set for a fruitful year ahead

p.17 Plant-based plastics to replace petroleum

plastics?

p.18 Plantic inks deal to improve biodegradable

plastic supply chain

p.19 Groundbreaking cellulosic bio-fuel

technology moves toward

commercialisation

Mitsui plans ethanol plant

p.20 Government of Canada supports next-

generation bio-fuels project

Ethanol Future

Ethanol makers seek more state help

p.21 Lower corn grades have Casco turning to

the US; Greenfield taking wait-and-see

approach

p.22 AE Biofuels to restart Cilion ethanol plant

(Contents continued on next page)

GIRACT

Starch Italics

GIRACT

Starch Italics StarchItalics

GLOBAL STARCH REVIEW

December/January 2010 CONTENTS

Starch Industry Overview (Cont’d)

p.23 China completes cassava genome

sequencing for energy use research

Mix and match corn-based co-products of

ethanol to achieve a balanced ration

p.24 Future of the company: Poet

p.25 Süd-Chemie & US technology licensor

GTC technology agree on strategic

alliance

Univar steps up business in the Middle

East and Africa

p.26 Gulshan Polyols‘ members approve issue

of FCCB

Cargill collects another Baldrige award

p.27 China corn processors to become global

players

China‘s got a sweet tooth

p.28 Roquette America, Inc. acquires more

property along riverfront

p.29 Deals signal revival in buyout activity

Riddhi Siddhi closes operation at

Podicherry unit

GLOSSARY

bio ‗000 000 000

crore ‗0 000 000

JV Joint Venture

k ‗000

kt ‗000 tons

klpd kilo litres per day

lakh ‗00 000

lpd litres per day

mio ‗000 000

M&A Merger &Acquisition

pa per annum

t tons

tpa tons per annum

tpd tons per day

tph tons per hour

tpm tons per month

Vol.1-09 © GIRACT 2009 1

StarchItalics Global Starch Review


Breeding crops for the next decade

Plant breeder Bill Angus talks to Teresa Rush

about his hopes for the next decade in terms of

wheat breeding and how breeders will meet the

challenges. The next 10 years, in wheat breeding

terms, will be about achieving a massive boost in

production, against a backdrop of increasing

environmental constraints. Nonetheless, the next

decade could potentially be one of the most

exciting for wheat breeding developments, says

Bill Angus.

―Worldwide wheat production is currently about

600 mio t. By 2030 we will need to produce

900 mio t to meet the extra demand for food

resulting from population growth‖.

―There are two in particular I think need to be

looked at very, very seriously; one is hybrid

wheat and the other is GM. What we‘ve got to say

is GM must be considered as potentially one of

the building blocks to help us achieve sustainable

output‖.

There are already signs the plant breeding sector

is adapting in order to meet the challenge. Most

recently there has been increasing interest in the

sector from R&D-based agrochemical businesses.

Within the last few months Monsanto has

renewed its interest in wheat breeding via the

acquisition of the US Westbred business, says

Angus. What is driving this investment is a

fundamental of the worldwide wheat market - the

need globally to produce more wheat.

―We are starting to see companies coming back

into wheat breeding because of this. The

fundamentals say the price of wheat has got to

rise, with demand increasing and supply chains

becoming more limited. If you look at corn

(maize) yields in the US, they‘ve gone up

massively. Why because plant breeders have

invested in developing new varieties‖.

(Continued in next column)

Breeding crops (Cont’d)

―Agrochemical giants, such as Monsanto, invest

significantly into R&D. That is manifested in the

increasing output we are seeing in maize‖. In

stark contrast, wheat breeding in the US has seen

much lower levels of investment and, as a

consequence, yields have increased at a much

slower rate.

Worldwide there are traits already identified in

wheat, which with GM technology, and a

refocusing of investments, could provide a

significant yield boost within 10 years he

maintains.

Such developments will require funding and, with

total royalty income from wheat amounting to

GBP 13-14 mio pa, it is about time some of the

revenue generated along the food chain is

returned to plant breeders, he argues. ―I think if

we take some of the technologies available to us

now, we stand a chance of increasing our average

yield in the UK from 8t/hectare to 12t/hectare‖.

The Recommended Lists have done a good job for

farmers - but they are due for a radical rethink if

they are to retain their value over the next 10 years

he maintains. ―What farmers want is more data,

better data - and a better quality of interpretation

of that data‖.

(Farmers Guardian 28 Dec 2009)

Cassava processing: Ekiti state plans for integrated bio-gas

Ekiti State government has concluded plans to

establish an integrated bio-gas powered Cassava

processing facility in Arugba, a town in

Omuo_Ekiti in collaboration with a private

company, Arog Bio Allied Agro Services.

The project which is to encourage large scale

production of food and boost economic activities

at the grassroots is also to create employment

opportunity for thousands of jobless Nigerians.

(Continued on next page)

Vol. 1-10 © GIRACT 2009 2



Cassava processing (Cont’d)

Dr. Aroge, a medical doctor, who is also a

prominent member of both Cassava Growers

Association of Nigeria and All Farmers

Association of Nigeria (AFAN), said that the fully

integrated bio-gas powered cassava processing

plant will be sited on a 7 acres of land in

Omuo_Ekiti which has been approved by the

traditional council of the town and the Certificate

of Occupancy (C of O) signed by Governor Oni.

The state of the art cassava processing machines

to be installed will be processing cassava tubers

into various cassava by-products into native starch

which will be categorised as food, pharmaceutical

and industrial grade; modified starch

(Monosodium glutamate), citric acid and glucose

syrup, flour; chips-pellets as well as gaarve and

other consumable products.

The gaarve to be produced on a large scale is to

serve as a buffer to any effect of the project on

food security, while the waste water is to be used

to produce bio gas for electricity generation for the

facility.

Dr. Aroge explained that the company is at present

working with 20,000 cassava farmers especially

now that we are in the dry season for modified

out-grower service scheme called the Grower

Services Programme (GSP) for the year 2009/2010

planting season. (vanguardngr.com 04 Jan 2009)

Limagrain: Select the best fodder beet varieties for an extra 1.2t/ha of dry matter (DM) yield

Fodder beet varieties, Robbos and Blizzard,

produced an extra 1.2t/ha of DM yield compared

to Kyros, according to an analysis of trials data

spanning 10 years, and carried out by Limagrain

UK. The extra energy gained from the higher

yield is worth GBP 160/ha.


Limagrain: Select the best fodder beet varieties (Cont’d)

Limagrain UK's Martin Titley explains: "There is

no national list or independent trials programme

for fodder beet in the UK, so Limagrain carry out

a variety trial each year to provide performance

data from which farmers can evaluate which

varieties are best to grow.

―Fodder beet has risen in popularity over the past

two years: it is an excellent feed ingredient to

balance high starch rations as it is high in sugars,

it is also very palatable‖.

(driffieldtoday 12 Jan 2010)

Feed Outlook: Industrial uses dominate growth in corn use

Based on estimates by Chinese market analysts,

industrial uses have accounted for nearly all

growth in corn use in China since 2000 (fig. 2). In

1985, less than 2 mio t of corn was used for

industrial processing; however, the amount grew

throughout the 1990s, reaching 10.5 mio t in

2001.

With the strong government support and robust

demand, industrial use of corn then doubled to

20 mio t in 2004 and doubled again to 40 mio t in

2006. The growth in industrial use of corn slowed

in 2007 and reversed in 2008 as the slowing

economy reduced demand. Industrial processors

cut back production in 2008 when the Chinese

government set a minimum corn purchase price

that erased profits for many types of corn

processing.

Production of all corn products has grown rapidly.

A 2008 conference presentation by an official

from one of China‘s largest agribusiness

companies reported fourfold growth in industrial

use of corn in China over 1998-2007 (fig. 3) (Yu).


Vol. 1-10 © GIRACT 2009 3



Feed Outlook: Industrial uses (Cont’d)

The largest single categories of use were starch

sugars (glucose, lactose, dextrin, maltose, HFCS,

and oligosaccharides) and alcohol for beverage

and industrial uses. Use of monosodium

glutamate was estimated at over 4 mio t of corn in

2007.

Production of lysine began in 2000 and accounted

for about 2 mio t of corn by 2007. Use of corn for

citric acid grew nearly fourfold in a decade.

Ethanol production used 11.6 mmt of corn in

2007— most of it for beverage, industrial, and

pharmaceutical uses.

Fuel ethanol production from corn began on a

commercial scale in 2004 at three designated

plants, which now consume about 3 mio t of corn

annually. Estimates of the amount of corn used in

industrial production vary and are complicated by

the wide variety of products and a lack of data.

In late 2008, ERS surveyed the corn market

reports of five grain market analysis organizations

in China and found their estimates of corn

industrial use for the market year 2006/07 varied

from 30 mio t to 40 mio t.

Estimates of industrial use as a share of domestic

consumption ranged from 22 to 27%, up from

about 10% in 2003/04. China‘s share of corn used

for industrial processing is already high by

international standards.


Feed Outlook: Industrial uses (Cont’d)

Source: USDA, Economic Research Service using

USDA, Foreign Agricultural Service, Production,

Supply, and Distribution database, China National

Grain and Oils Information Center (NGOIC), and

Chicorn (yumi.com.cn).

Note: Chart shows FSI (food, seed, and industrial)

use as a share of domestic consumption of corn.

Animal feed accounts for the remaining share of

use. Data are for 2006/07 market year.

The growing use of corn for industrial processing

at first glance appears to reduce the amount of

corn available for feed; however, a significant

portion of corn used for industrial products

emerges as feed additives and feed co-products.

(cattlenetwork.com 16 Dec 2009)

Vol. 1-10 © GIRACT 2009 4



China’s distiller’s grains imports ‘could rocket’

Exporting distiller‘s grains to China has

‗enormous‘ potential, and could slow China's

return to being a major corn importer, a high-level

research team has said.

While China imported 8 000t of corn-based

distiller‘s grains from America last year, its pig

farmers could have taken 3 mio t - equivalent to

more than one-third of US exports.

And that‘s before taking into account potential

demand from China‘s poultry sector, which is

76% bigger than America‘s, and dairy, where the

national herd is nearly three times as large.

The grains, use of which typically cuts feed costs

by about 6%, are already prized in China by duck

farmers for giving the skin colour and yolk a more

yellow hue favored by consumers.

"The potential for growth is enormous," a joint

report by researchers at the UN, two US

universities and the US Department of

Agriculture, said following a visit to China.

Serious toxin problem:

Furthermore, China's own distiller's grains

(DDGS), typically as a by-product of brewing

demand rather than ethanol manufacture as in

America, were held by farmers in low regard.

Energy sources used in Chinese livestock feed

rations:

Sources % Used

Corn 87.4

Wheat 10.2

Barley 1.4

Sorghum 0.7

Other grains 0.3

Source: Fapri


China’s distillers’ grains imports (Cont’d)

Besides having lower protein content of about 8%

compared with 27-34% in US, Chinese distiller‘s

grains were typically sold in wet form, leaving

loads vulnerable to product spoilage in a very

short period of time.

They were also dogged by concerns of toxic

fungal residues in the corn they were made from,

reflecting a "high humidity [growing]

environment" and poor storage practice and

facilities.

"Since whatever is in the [corn] gets multiplied

three times in the DDGS product, any presence of

myco-toxin in corn can possibly translate into a

serious problem in the DDGS," the report said.

Red tape:

One factor which might prompt a regulatory

rethink was the prospect of China returning in

2011 to corn imports which will reach 2.7 mio t

by 2018, on Washington estimates.

Make-up of ‗optimal‘ feed ration for finishing US

pigs (including DDGS):

Sources % Used

Corn 59.2

Soy meal 15.2

DDGS 20.0

Other 5.3

Source: Fapri

―Although there is a consensus that China will

need to import more meat or feed grains to meet

its fast growing food demand, what remains

uncertain is what mix of products it will import‖,

the researchers said.

(agrimoney.com 09 Dec 2009)

Vol. 1-10 © GIRACT 2009 5



Crop strategy paying off

Thailand: The prices of farm products are rising as

a result of the global economic recovery and

higher demand after adverse weather conditions

reduced crop yields.

But Deputy Prime Minister, Korbsak Sabhavasu

said that the government‘s new farm product price

insurance scheme is also playing a part.

Essentially, it is a form of income support for

farmers.

About THB 18 bio was slated to cover corn and

tapioca with THB 25 bio for rice. In terms of

sales, Korbsak said the government would opt to

sell key state stocks — rice, tapioca, and maize –

in relatively small lots of 200 000-300 000t,

instead of the millions of tons in the past, to curb

any adverse impact on local farm prices.

The government is in talks with potential buyers,

such as Malaysia, China, India and Indonesia, to

sell its milled rice stocks, estimated at 6 mio t. But

no prices have been agreed due to market

volatility.

Malaysia wants to buy 100 000-150 000t of 5%

broken white rice, while China needs to purchase

60 000-100 000t of glutinous rice.

The government has already sold 2.2 mio t of

tapioca chips this year and 650 000t of tapioca

starch, cutting its stocks to date to 1.2 mio t of

tapioca chips and 150 000t of tapioca starch.

The government has slashed its maize stock to

about 10 000t, down from about 1 mio t.

(American Chronicle 11 Jan 2010)

New Forage maize varieties from British Seed Houses

Forage maize growers seeking superior feed

quality or exceptional early vigor alongside high

dry matter yield will be well catered for in 2010

following the introduction of two new varieties by

British Seed Houses.

Utopia, bred by Syngenta Seeds, is the variety for

superior feed quality, combining great starch

content with highly digestible whole plant

material that produces high ME silage.

Early cob maturity is the reason for high starch

content whilst good ‘stay green‘ characteristics

lead to outstanding digestibility. With a dry matter

yield of 101%, this maturity class-7 variety

delivers a genuine combination of yield and

quality.

Sunboy, bred by Saaten Union, recorded the

highest early vigor score (8.4) of all varieties in

2009 Descriptive List trials. It therefore has the

characteristics to deliver a performance in

mainstream areas or when conditions are less than

ideal, and is ear-marked as a variety suitable for

growing under plastic.

Sunboy is also a very large plant and its dry

matter yield of 107% of control varieties in DL

trials show that it is a consistent high yielder.

(farminguk.com 11 Jan 2010)

Scientists urge swift action to protect cassava crops

Swift action must be taken to prevent severe pest

and disease outbreaks in cassava plantations

across Thailand and Southeast Asia, international

experts say. The measures include comprehensive

research, better regional monitoring and more

rigid quarantine procedures.


Vol. 1-10 © GIRACT 2009 6



Scientists urge swift action (Cont’d)

International Centre for Tropical Agriculture

(CIAT) scientists have issued a ''red alert'' urging

the region to tackle pest and disease outbreaks in

cassava crops, quickly imposing strict quarantine

regulations on the movement of cassava.

―Without decisive action and donor support, we

expect a huge slump in cassava output in

Southeast Asia‖, said Bangkok-based Tin Maung

a cassava expert and soil scientist at CIAT. ―That

would be devastating for rural livelihoods in the

region‖.

Some 5 mio small farmers grow cassava in the

region, mainly to supply the starch processing and

animal feed industries. In Thailand, the industry is

worth USD 1.5 bio (about THB 50 bio) and the

country makes up about 75% of global cassava

exports, CIAT said. Department of Agriculture

officials attributed the rise in tapioca prices, from

less than THB 2/kg to THB 2.7 now, to the fact

that the cassava plantation area surged to

8.4 mio rai in 2008 from 6.7 mio in 2007.

Tapioca starch is extracted from the cassava plant.

But the uncontrolled expansion of cassava farms

led to disease outbreaks in some 100 000 rai

across the country —from the northeastern to

eastern provinces, and now to western provinces

such as Kanchanaburi and Kamphaeng Phet in

Central Thailand— said a source at the

Agriculture and Agricultural Cooperatives

Ministry.

The Agriculture Ministry has provided more than

THB 60 mio to address the problem, but concrete

action had yet to take place, the source said.


Scientists urge swift action (Cont’d)

Tin Maung said mealybugs are sap-sucking

insects that weaken plants, resulting in leaf

distortion and lower root yields. ―Farmers

therefore need to select and safely store clean

planting material‖, he said. Establishing an

effective surveillance and monitoring system with

a GIS [geographical information system] database

is also essential‖.

Some analysts now predict Thai cassava output

will plummet by at least 30% this season, with

some farmers facing losses as high as 80%. Many

farmers have already abandoned their crops and

official figures show the area of cassava

plantations dropped to 8.2 mio rai this year.

―These pests and diseases will place a huge strain

on Thailand‘s cassava production, not only on the

incomes of 400 000 cassava growers, but also the

many laborers employed in the cassava industry‖,

said Tin Maung. (bankokpost 22 Jan 2010)

Govt to spend NGN 25 bio n on agricultural development

Nigeria: Akwa Ibom State Governor, Godswill

Akpabio, has announced that his administration

has earmarked over NGN 25 bio to develop the

agricultural sector of the state.

On the type of crops that the state would cultivate,

Akpabio said, ―Particularly, look at cassava

production, we have acquired a very robust plan

of what we called Akwa Ibom State Integrated

Farmers Scheme and outside that, we want to add

value so that we can also have a kind of thing that Nigeria has. You buy things from the farmers to

avoid loss. So, we are encouraging people also in

the cassava area because from cassava, you can

have a lot of flour and starch, which can also

develop an agro-allied industry that will now lead

to extraction that come with cassava that can

assist a lot in the area of medicine‖.

(thisdayonline.com 27 Jan 2010)

Vol. 1-10 © GIRACT 2009 7



Precision breeding creates super potato for amylopectin starch

Researchers at the Fraunhofer Institute for

Molecular Biology and Applied Ecology (IME)

have developed a way to speed up plant breeding

without using any form of genetic modification.

Tilling or targeting induced local lesions in

genomes, is claimed as a way of speeding up the

natural process of evolution. ―We are working

here with natural principles. In nature, sunlight

triggers changes in the genome‖, says Jost Muth

of IME. ―With the aid of chemicals, a vast number

of mutants can be rapidly obtained. With

chemistry, we accomplish the same thing – only

faster‖.

Until now, mutation breeding was an exhaustive

process. Growers had to plant the mutated seeds to

the field, and then wait until they reached the end

of their vegetation period in order to determine if

one of the genetic modifications achieved the

desired result. In addition, the effect of the

majority mutations could not be determined, since

the characteristic is only expressed in a

homozygous state.

In the speeded-up process mutated seeds were

germinated and as soon as the first leaves appear,

they are harvested. The researchers take a leaf

sample, break apart the cellular structure, isolate

the genome and analyse it. In this way they can

find out within a few weeks if a mutation has

attained the desired traits.

The technique has been applied to develop a new

breed of tilling potato which exclusively contains

amylopectin starch. This autumn the German

potato starch manufacturer the Emsland Group

processed the first crop. Not only can nutritional

starches for emulsifying soups and desserts be

extracted from it – it can also be used for paste

and coatings for paper and thread production.


Precision breeding (Cont’d)

In a project sponsored by the Nachwachsende

Rohstoffe agency, researchers at IME, in

collaboration with the Bioplant and

Emslandstärke companies, found the super potato

germ. They had to examine the genome of

2 748 seedlings until just the right one was

identified that exclusively produces amylopectin.

From this germ, the first generation of super

potatoes was produced. These have active genes

that produce amylopectin, whereas genes that

trigger the formation of amylose are shut-off.

Until now, potatoes always contained both starch

types and industrial processors had to separate the

amylopectin from the amylase, an energy and

cost-intensive process.

This autumn, 100t of the Tilling potato, which

exclusively produces amylopectin, were

harvested. They can be processed as usual in the

regular production lines. The special measures

that would be required if they were genetically

modified, to separate them from other potatoes,

are not required.

―Special measures aren't necessary, because the

Tilling potatoes are totally normal breeds that

contain no genetically modified material‖, said

Muth. The example shows that conventional or

modern breeding methods can be speeded up if

the gene responsible for the expression of a

specific trait is a natural part of the plant.

(Science Business 10 Dec 2009)

Vol. 1-10 © GIRACT 2009 8



Herbal supplement of baby food

Wonder to believe that shoti, a perennial

rhizomatous herb with tufted large tapering

elliptical green leaves with brownish purple, short

stem and pink or yellow flowers, may be a

substitute of baby food. Actually it is a fact and

has already been proved by the scientists of the

carbohydrate research wing of the BCSIR

laboratories, Dhaka.

Shoti is closely resembled to turmeric in

appearance. Its tubers are also the same but white

to look at. They are large and fleshy. The shoti

starch is a product of white amorphous storage

polysaccharide extracted from tubers and used as

a substitute for arrowroot and barley.

It is highly valued as an article of diet, especially

for infants and convalescents. BCSIR Scientists

experimentally proved that shoti can be used as

baby food because of the presence of high quality

starch. This type of baby food can be enriched by

mixing with cow milk, vitamin A&D etc. Among

the scientists involved with this research are:

Md. Asaduzzaman, ex Chief Scientific Officer

and Md. Bazlul Karim Akanda, ex Senior

Scientific Officer of carbohydrate section.

Scientists also observed that various types of

glucose can be prepared after modification of

shoti starch by chemical process. This type of

glucose can be used in the industries like

confectionery, soft drink, rayon, tannery and even

pharmaceutical industries.

Shoti would once be used by our grandmothers

and mothers as indigenous baby food, but day-by-

day availability of imported baby food in the

market, their initiatives were nipped in the bud.

Shoti rhizome is pungent, bitter, fragrant, heating,

appetizer, vulnerary, anthelmintic, antipyretic,

alexiteric; destroys foulness of the breath; useful

in leucoderma, piles, bronchitis, asthma, tumors,

tuberculous glands of the neck, enlargement of the

spleen, epileptic seizure (Ayurveda). (Continued)

Herbal supplement (Cont’d)

The rhizome has a bitter, sharp, hot taste, and a

good odor; laxative, tonic to the brain and the

heart, aphrodisiac, alexipharmic, emetic,

emmenagogue, expectorant, carminative; useful in

gripping of children, pains, inflammations,

toothache (Yunani).

The fresh root is considered to be cooling and

diuretic; it checks leucorrheal and gonorrheal

discharges and purifies the blood. The juice of the

leaves is given in dropsy (Rheede).

The rhizomes possess aromatic, stimulant and

carminative properties. Employed as a stomachic,

and also applied to bruises and sprains. The root is

chewed to correct a sticky taste in the mouth; it is

also an ingredient in some of the strengthening

conserves which are taken by women to remove

weakness after child-birth.

In colds, it is given in decoction with long pepper,

cinnamon and honey, and the pounded root

applied as a paste to the body. The rhizome is

used internally in Cambodia as a stimulant, tonic

and depurative; it is administered in the form of a

tincture in malaise and vertigo, and given three

times daily to women during the two weeks which

follow delivery.

The corms are chewed by Cambodian mothers

who then apply them together with their saliva to

the head and body of children suffering from

convulsions. The leaves are used as plasters in

lymphangitis, furunculosis and adinites. (Indian

Medicinal Plants, K. R. Kirtikar and B. D. Basu,

2421).

Special Opinions: ―Demulcent, expectorant, and

aromatic, dose about 1 drachm‖ (Civil Surgeons -

John McChoghey & M.D. Shahjahanpore). The

rhizome is considered to be a cooling medicine,

also tonic and expectorant (Surgeon-Major

J.M Houston, Durbar Physician, Travancore).

(The New Nation 13 Dec 2009)

Vol. 1-10 © GIRACT 2009 9



Starch prices may rise on low maize output

India: Lower maize production and increased

consumption may firm up the starch prices.

Manufacturers expect a 10-15% rise in the days to

come. In the wake of low output in Andhra

Pradesh and Uttar Pradesh due to scanty rainfall,

country‘s maize production during the current

year (July-June) may decline by 1 mio t compared

with the last year.

Starch producers consume around 11-12% of

maize produced in India. ―Decline in maize output

would certainly have an effect on starch industry.

Starch manufacturers may face shortage of maize

in the coming months‖, said Gautam Choudhary,

MD of Santosh Starch Products based in

Ahmedabad.

―Currently, the price of dry starch is around

INR 20 000/t, which may surge by 10-15%‖,

Choudhary added. All India Starch

Manufacturers‘ Association (AISMA) president

Amol Sheth, too, agreed that starch prices would

rise as demand prospects for starch products look

bright.

The upward movement in prices is yet another

factor that may fuel starch prices. ―Maize prices

are currently ruling at INR 950 to

INR 1 000/quintal, which hovered around

INR 700-750 in the same period last year. This

indicates that starch prices would also remain on a

higher trajectory‖, said Vishal Majithia, MD of

Mumbai-based Sahyadri Starch.

Starch finds application in food, textile and

adhesives. Also, the use of starch in sugar

derivatives has also risen. Liquid glucose, which

is produced from starch, is used increasingly as a

sugar substitute for manufacturing confectionery.

―Firm sugar prices have forced many to use starch

as its substitute. This would further boost the

demand of the commodity,‖ said

Santosh Choudhary.


Starch prices may rise (Cont’d)

Maize output in the country is estimated to fall by

1 mio t in 2009-10 (July-June) from 16 mio t last

year. ―Though the Kharif maize acreage in the

country was more or less the same, the production

in Andhra Pradesh and Uttar Pradesh was

adversely affected due to erratic rainfall. Maize

crop in Maharashtra and Karnataka was also

affected following scanty rain‖, explained

AISMA president Amol Sheth.

Maize is sown in both the Kharif and Rabi

seasons of the year. Kharif output of maize this

year is estimated to be lower by 1.5 mio t from

14 mio t in the last Kharif season.

―However, the sowing of maize in the Rabi

season (starting October) is currently under

progress and the industry players estimate it to

rise up to 3.5 mio t during the season. This will

take the total maize production in the country to

15 mio t in 2009-10‖, Sheth added.

(Business Standard 25 Dec 2009)

A good binder for starch replacement in charcoal briquettes

Manila: The effluent or wastewater from the

production of chichacorn (fried corn kernels) is a

good binder for rice hull and bamboo shavings in

making charcoal briquette. This award-winning

technology has been pieced together by

researchers of the Mariano Marcos State

University (MMSU), a six-campus tertiary

institution in Ilocos Norte whose seat of

administration product (charcoal briquette) out of

wastes (bamboo trimmings, rice hull or IPA, and

chichacorn effluents).

Briquette is a mixture of charcoal made from

various waste materials and molded in various

shapes and sizes with the use of starch.

Chichacorn effluents, which are abundant in

Ilocos Norte is a suitable binder and good

substitute for cassava starch in the production of

charcoal briquette. (Continued on next page)

Vol. 1-10 © GIRACT 2009 10



A good binder for starch replacement (Cont’d)

The new process is a variation of the kawayan

charcoal briquette (KCB) technology developed

by MMSU researchers Dr. Stanley Malab and

Jose Zaparalla. Dr. Malab is MMSU vice

president and concurrent director of the Ilocos

Agriculture and Resources Research and

Development Consortium (ILARRDEC), one of

the 14 regional R&D consortia coordinated by the

Philippine Council for Agriculture, Forestry and

Natural Resources Research and Development

(PCARRD).

Originally designed for bamboo wastes such as

small branches, leaves, shavings, and trimmings,

the charcoal briquette technology now includes

rice hull as production material, reported

PCARRD‘s Ricardo Argana.

KCB with chichacorn processing effluent has won

the most outstanding technology (research

category) of the National Symposium on

Agriculture and Resources Research and

Development (NSARRD). NSARRD is a yearly

PCARRD-sponsored activity that showcases

outstanding contributions of individuals and

institutions in the improvement of agriculture,

forestry, and natural resources R&D.

The KCB edification study, which also involved

MMSU researchers Beatriz Malab and Angelina

Tagay, likewise won second place in the Second

Luzon Cluster 7th

Regional S&T Competitions in

Industry and Energy R&D.

It was presented at the 28th International

Convention of the Philippine-American Academy

of Science and Engineering (PAASE) held

recently at Georgetown University, Washington

DC, USA; and at the Technology to People Media

Conference sponsored recently by PCARRD.

(philstar.com 27 Dec 2009)

Houston to replace plastics with starches

A new year means more new laws. Starting

1st

January, 2010, homeowners in the city of

Houston will be required to shell out more money

for bio-degradable and compostable trash bags for

leaves and yard trimmings.

The city says the new bags, made from starch,

will decompose within 6 weeks while the plastic

bags, made of petroleum, can linger for centuries

in landfills. The downside is the new bags will

cost more than twice the plastic bags.

The new bags cost more, about USD 0.7/bag

compared to USD 0.25 for each of the old bags.

The city says the higher costs will eventually lead

to taxpayer savings, as less landfill space is used.

―I like the idea‖ said Andrea Quinn. "But make

them affordable to everyone can purchase them.

My suggestion would be to make sure there are

enough of those bags available before we start

getting fines for using the plastic bags. That

would be ridiculous‖.

The city agreed and decided to move the program

start date to 1st February. A new law that requires

city residents to put their lawn clippings and

leaves in biodegradable bags has been delayed

until February 1. (39online.com 29 Dec 2009)

Vol. 1-10 © GIRACT 2009 11



Bio-products could soon lower oil prices by replacing petroleum in plastics

Cereplast CEO, Frederic Scheer, hopes that a

higher price for crude oil will soon make bio-

plastics attractive to the major manufacturers such

as Dupont and SASF. The Agence France-Presse

ran a profile of Frederic Scheer and his company

Cereplast which makes biodegradable

compostable plastics that, is slowly working their

way into use in a host of disposable items.

Cereplast plastic compounds can currently be

found in take-out cups, flatware, plates and

packaging – Solo, manufacturer of single-use

cups in bios, now has a production line using

Cereplast, and is among a growing list of other

bio-plastic companies.

The plastic is derived from starch-based resins, rather than

petroleum. (image: paperblog.fr)

Bio-plastic resins are made from the starches in

tapioca, corn, wheat and potatoes, and hold up

well under heat and stress. For more intensive

uses, Cereplast also has a hybrid line that

incorporates a maximum of 50% petroleum

derivatives, and which can be used in items such

as toys and car parts.

The growth of bio-plastics as an industry should

be of interest to any oil consumer, because plastic

manufacturing takes a sizable bite out of the

available supply of crude oil—in the US alone,

1.5 mio barrels pa go into just the production of

plastic water bottles.

The plastic is derived from starch-based resins,

rather than petroleum. While oil prices appear to

have stabilized for the time being, Scheer

forecasts an era where the price of oil drives even

chemical-producing giants like Dupont and BASF

to produce bio-plastics instead of petroleum-

derived plastic products. (Continued)

Bio-products could soon lower oil prices (Cont’d)

At current levels of demand for Cereplast,

USD 95/barrel is the point where bio-plastics

become more cost-effective, he said.

We‘re not there yet, but voluntary conversion to a

product that uses far less of such a precious

resource could do the same work as an oil price

spike. Indeed, taking plastics out of the oil game

could be a huge factor in keeping the price per

barrel permanently low.

Scheer makes a good argument for tying the

economic sense of bio-plastics to the

environmental one: ―It takes between 70-

100 mio years to make fossil fuel and you are

going to use your cup at Starbucks for 45 minutes

max‖.

Multiply that by the staggering 110 bio plastic or

plastic-covered cups (only cups!) that Americans

dispose of each year, and then factor in the fact

that around 70% of all plastic waste ends up in

landfills, non-recycled– and the plastics industry

starts to look like a giant sink for oil that might be

better used elsewhere.

Of course, there are those who might level some

of the same arguments at bio-plastic that have hit

bio-fuel–that it takes away land and crops from

food production, that its carbon savings aren‘t

what they‘re presented to be. Scheer is, however,

looking into algae for the next generation of

Cereplast (much like many bio-fuel producers).

The starches in algae are as resilient as those

derived from other plant sources, and algae can

grow quickly, in a variety of environments, and

for far lower prices than other crops.

Scheer hopes to have an algae-based plastic on the

market by the end of 2010 and projects that

Cereplast‘s sales will have doubled in that time.

(heatingoil.com 24 Dec 2009)

Vol. 1-10 © GIRACT 2009 12



Mexican Coke brings back the sugar

Sioux City: The major difference between

Mexican Coca-Cola and its north-of-the-border

counterpart, as explained by South Sioux City Hy-

Vee registered dietician Lindsay Lannan, is the

sweetener that goes into the respective sodas.

―Coke products made in Mexico are sweetened

using sucrose (another name for table sugar)

while Coke products made in this country use a

high-fructose corn syrup (corn syrups that are

commonly used to sweeten processed foods such

as sodas)‖, she said.

According to Lannan, sugar is substituted with

high-fructose corn syrup because the latter has a

longer shelf life and is less expensive than regular

sugar.

Indeed, a 12-ounce glass bottle of Mexican Coke

costs the same as its 20-ounce plastic bottled

American cousin at Hy-Vee. Another thing that

sets the two Cokes apart, said Lannan, is the

―refreshment factor‖.

―Natural sucrose produces a trigger in your brain

that says you're satisfied‖, she said. ―That's why a

person feels satisfied after one Mexican Coke. A

product sweetened by fructose doesn't trigger the

same 'I'm full' reaction‖.


Mexican Coke (Cont’d)

That instant gratification may be one of the

reasons Mexican Coke is gaining a small cult

following among Hy-Vee's non-Hispanic

customers, Lannan contends. This trend can also

be spotted, (reportedly, there are 13 500 followers

nation-wide).

Perhaps as a reaction to consumer interest, Coca-

Cola has experimented with sucrose-sweetened

soda, manufactured in the United States,

producing a special Kosher Coke, available only

during Passover.

In 2007, the Seattle, Wash., - based Jones Soda

Co. switched from using high-fructose corn syrup

to natural cane sugar in all of its soda products,

and in February 2009, Pepsi confirmed that it

would introduce a new line of sucrose-sweetened

sodas. Pepsi and Mountain Dew Throwback will

be featuring retro logos.

―When consumers see words like ‗natural cane

sugar‘ plastered on a product, they think it‘s

somehow better for them‖, she said. There are

many things that the human body needs in order

to survive but sugar isn‘t one of them.

(Siouxcityjournal 03 Jan 2010)

Tapioca flour release plan approved

The Thailand cabinet has approved a plan to sell

150 000t of cassava starch to China as proposed

by the Ministry of Commerce, Minister Porntiva

Nakasai said on Tuesday. ―The purchase deal will

be made in a form of government to government

at the price of baht 10 350/t‖, Porntiva said.

In addition, the cabinet also has agreed to allocate

180 mio baht for the construction of agricultural

products distribution centres or farm outlets.

The budget is also for financing the ―blue flag‖

project to offer for sale consumer goods at cheap

prices to help reduce the cost of living of the

people. (bangkokpost.com 12 Jan 2010)

Vol. 1-10 © GIRACT 2009 13



Pepsi throwback

Throwback is coming back. Pepsi is going to start

the limited edition of Throwback and they are

going to use real sugar in it instead of High

Fructose Corn Syrup (HFCS). HFCS is used to

make Pepsi sweet. There are two versions of

Throwback, Throwback Pepsi and Throwback

Mountain Dew and you can find both versions

from everywhere where the regular products of

Pepsi are sold.

Throwback saga was started in last spring when it

was first released in limited-edition basis in the

cane sugar versions from April to mid-June. It is

seen that limited-edition versions generate a lot of

enthusiasm among the users and they find the

taste of cane-sugar soda sweetest than the HFCS

versions.

So, Pepsi has decided to reissue both versions for

another eight-week run and the production has

been started from 28th

December last year.

Michelle Naughton, Pepsi Publicist, calls it

overwhelming positive consumer response.

What makes it more appealing from other

products is its price. The entries such as Boylan‘s

or Jones Soda run from USD 5 to USD 6 for a 4-6

pack but Pepsi and Mountain Dew which costs

USD 3 with a 12-pack offer.

Another change that has been added is, packing.

They had an elegant look last time that was

almost similar to Pepsi‘s regular packaging but

this time they have come with a slightly different

design specially made for Throwback.

(news.puggal.com 04 Jan 2010)

Corn groups hit as drinks makers return to sugar

The impact of poor health perceptions over corn-

based sweeteners has prompted cuts of up to 20%

in prices, and left producers facing "some pretty

aggressive scrambling for contracts", Credit

Suisse has warned. (Continued in next column)

Corn groups hit (Cont’d)

The alert came as the investment bank cut its

rating on shares in UK sweeteners group Tate &

Lyle from "outperform" to "neutral", prompting a

6% slump in the stock. Shares in US rival Corn

Products International closed 4.5% lower in New

York.

While corn processors had been expecting flat

prices for high fructose corn syrup heading into

2010 - and some analysts had high hopes for the

sweetener given rocketing cane sugar prices - the

late-year dash for deals had undermined prices.

―The latest we have heard is down 3-4 cents a

pound (15-20% down)‖, Credit Suisse said,

forecasting an overall drop of 15% in 2010.

Poor health image

The shortage of contracts follows claims, which

the corn processing industry vigorously denies,

that corn syrup is a bigger threat to health than

cane sugar. Soft drinks groups, the product‘s core

consumers, prefer to switch to sugar given the

poor health image of high fructose corn syrup, the

Credit Suisse report said.

Snapple, Ocean Spray and Capri Sun had

switched some months ago, with Gatorade in

November saying it would replace corn syrup

with sugar. Given that corn syrup was selling for

about half the price of spot sugar, these decisions

are made despite the financial hit.

Shares slide

Tate & Lyle, which produces sweeteners from

corn as well as its historic sugar business, would

suffer a hit of up to USD 80 mio from the weaker

HFCS market, the report said, cutting forecasts

for both 2009-10 and 2010-11 results.

As already indicated, Credit Suisse cut its rating

on Tate shares to ‗neutral‘ from ‗outperform‘,

reversing an upgrade made in October over

optimism by the group‘s new CEO, Javed Ahmed.


Vol. 1-10 © GIRACT 2009 14


Starch Industry

Overview

Corn groups hit (Cont’d)

And it urged caution ahead of Tate's trading

update, due on January 28, also flagging

statements from Corn Products on January 26

and Archer Daniels Midland on February 2. Tate

& Lyle shares closed 28.8p lower at 418.7p in

London.

In New York, Corn Products shares ended

USD 1.3 lower at USD 29.3, with Archer

Daniels stock easing 1.1% to USD 31.2.

(agrimoney.com 07 Jan 2009)

How subsidy makes alcohol from grain competitive

India: With INR 10/l subsidy, production of

alcohol from grains becomes more than

competitive relative to its being manufactured

from molasses.

The economics is even more favorable in the

present context, where constrained cane supplies

have led to skyrocketing of molasses prices.

Every ton of molasses gives about 260 l of

alcohol (rectified spirit). Currently, the landed

ex-distillery price of molasses in Maharashtra is

about INR 6 200/t, translating into an alcohol

cost of almost INR 24/l. To this, if the cost of

converting to extra neutral alcohol (ENA, used in

Indian Made Foreign Liquor) of INR 5/l is

added, the total works out to INR 29/l.

On the other hand, from 1t of grain, one would

get anywhere from 380 l for sorghum to 400 l for

broken rice and pearl millet, and 430 l for maize.

If these are available for, say INR 10/kg, the cost

of basic spirit would accordingly range from

INR 23 (maize) to INR 26 sorghum.

The cost of conversion to ENA is higher, at

INR 6.5-INR 7/kg here, mainly because the grain

has to first be milled into flour, from which the

starch is then fermented into liquor.


How subsidy makes alcohol (Cont’d)

The overall cost, therefore, rises to INR 30-33/l

which is close to the prevailing INR 33 ex-

distillery realisations. But with the INR 10

subsidy, grain-based liquor makers would make

an obvious killing.

―We are only using damaged grain that cannot

be consumed by humans. Good quality grain

will cost more, which makes it uneconomical for

us‖, a Maharashtra-based distiller said.

(Hindu Business Line 11 Jan 2010)

Zebra chip research gets USD 3.9 mio in funding

Texas: Texas AgriLife Research plant

pathologist Dr. Charlie Rush of Amarillo has

watched the concern over zebra chip of potato

grow in the past five years, both among

researchers and those willing to fund the

research.

Now Rush is leading a team of 20 researchers

and Extension specialists in a USD 3.9 mio

federally funded Specialty Crop Research

Initiative titled, ―Management of Zebra Chip to

Enhance Profitability and Sustainability of U.S.

Potato Production‖.

―Texas researchers are taking the lead‖, he said.

―Amarillo has taken the key leadership position

in this national program. We are addressing the

needs of our local clientele, but also those of the

industry nationwide‖.

Zebra chip was first detected in the lower Rio

Grande Valley in 2000 and was initially known

as the "Texas defect", Rush said. The new threat

to U.S. potato production has now been detected

as far north as Nebraska and west to California.


Vol. 1-10 © GIRACT 2009 15



Zebra chip research (Cont’d)

The rapid spread of the disease in an industry that

produces about 320 mio t of potatoes worldwide

got attention. The U.S. averages 17.7 mio t of

potatoes pa, with a value of USD 3.2 bio. All

market classes of potatoes are susceptible to the

disease with no resistance at this time, he said.

While it is not a health concern to the consumer, it

is a quality issue for producers who lose money

on potatoes infected with the disease.

The disease causes simple sugars to remain in the

potato instead of turning to starch and when the

potato is fried, those sugars caramelize and cause

dark stripes and a slightly off-taste, he said. That

is a major problem for Texas, Rush said, where 70

percent of the production from 20 000 acres in the

Panhandle, South Plains and Rio Grande Valley is

headed to Frito Lay to be made into potato chips.

Initially, the disease was handled internally by

growers and Frito Lay, but from 2000 to 2004 the

incidence and distribution of the disease increased

and resulted in heavy losses to Texas potato

growers, he said.

The state zebra chip initiative focused on etiology,

epidemiology and disease control/pest

management, Rush said. It was discovered in

2008 that the potato psyllid was the vector for the

bacterial pathogen which causes the disease.

―There are insecticides that are effective against

psyllids, but we don‘t know very much about the

ecology of the potato psyllid, such as when and

where they migrate from, where they over-winter,

when is the optimum time to treat and with how

much‖, he said. ―Also, growers need management

practices that will help reduce populations‖.

Under the USDA-National Institute of Food and

Agriculture sponsored Specialty Crop Research

Initiative, Rush will bring together team members

from six universities and the U.S. Department of

Agriculture-Agricultural Research Service.


Zebra chip research (Cont’d)

Scientists represent 6 states: California, Idaho,

Nebraska, North Dakota, Texas and Washington.

This group‘s goal is to reduce losses from zebra

chip to economically sustainable levels by

development of a comprehensive environmentally

responsible disease-management program, Rush

said.

The priority/focus areas are: detection,

vector/pathogen diversity and disease etiology;

epidemiology; pest management; breeding;

economics; risk assessment/disease forecasting;

and technology transfer, he said.

The zebra chip research group will have its first

meeting during the Citrus Huanglongbing and

Potato Zebra Chip Conference: Status of Diseases

and Research Opportunities scheduled Nov. 16-18

at the McAllen Conventional Center in McAllen.

(hpj.com 07 Jan 2010)

Potato harvest shows Zeba soil moisture technology holds water; boosts yield and grade

Portland- Potato growers across the Northwest

report improvements in both yield and quality of

their 2009 harvest when using Zeba®, a novel

corn starch-based soil moisture management

technology.

Zeba is a super-absorbent product made from

natural cornstarch that is capable of holding

hundreds of times its own weight in moisture

where it can be absorbed by plant roots when

needed. Zeba is biodegradable in the soil.


Vol. 1-10 © GIRACT 2009 16



Potato harvest shows Zeba soil moisture technology (Cont’d)

The technology was first discovered by USDA

30 years ago with commercialization beginning in

earnest with the 2003 formation of Absorbent

Technologies, Inc. in Beaverton, Ore.

Absorbent Technologies works with the growers

to track results in dozens of fields in high-value

crop growing regions such as the Pacific

Northwest, California, Florida and the Red River

Valley in North Dakota.

In Washington, MHB Farms of Marlin, in the east

central part of the state, Zeba treatments resulted

in an additional 2.7t of payable potatoes per acre,

delivering a significant return on investment, said

Jake Gross of MHB Farms.

Gross said that it took a few seasons to perfect the

application of Zeba, including working with staff

from Zeba and equipment maker Gandy to install

the right metering wheels that regulate the flow of

Zeba in the crop row. Gross said MHB farm is

now pursuing field tests with other crops.

(EarthTimes 19 Jan 2010)

AKR receives shareholder approval of its IDR 540 bio rights issue

Shareholders in chemical-distribution group PT

AKR Corporindo on Thursday approved the

company‘s proposed IDR 540 bio

(USD 58.3 mio) rights issue.

AKR president director, Haryanto Adikoesoema

said the company will sell 627.6 mio new shares

or 16.6% of the company‘s enlarged share capital,

at IDR 860 each.

The company will increase fuel capacity by

30 000 and 19 000 kl at its Stagen and Pontianak

facilities in Kalimantan, respectively. It will also

boost fuel capacity by 10 000 and 6 000 kl at its

facilities in Medan and Palembang, Sumatra,

respectively. (Continued in next column)

AKR receives shareholder approval (Cont’d)

Suresh Vembu, AKR‘s commercial director, said

that the company had secured a contract from

downstream oil and gas regulator BPHMigas to

distribute 56 500 kl of subsidized fuel this year.

AKR has built gasoline stations in 20 areas in

Medan, Pontianak, Lampung and Banjarmasin.

The BPHMigas deal will provide an estimated 5%

of the company‘s earnings this year.

The company booked net profit of IDR 192 bio in

the nine months to September 2009, down 8.7

percent from IDR 210 bio in the same period of

2008. Sales declined by 33% to IDR 6.3 tio for

the period.

AKR is also expanding its sorbitol manufacturing

operation. Its sorbitol unit, PT Sorini Agro Asia

Corporindo, controls about 50% of the domestic

market for sorbitol and cassava starch. It is the

world‘s second-biggest producer of sorbitol, a

sugar substitute.

Sorini has projected that its revenue will reach

IDR 150 bio this year, helped by its recent

IDR 50 bio acquisition of PT Bumi Tapioka Jaya,

a cassava-starch processing company.

(thejakartaglobe.com 21 Jan 2010)

Sirane gets set for a fruitful year ahead

The UK‘s premier packaging solutions company,

Sirane is counting the growth in its fruit

packaging business through 2009 – and preparing

for a new level of business in 2010 beginning

with its first exhibiting presence at Fruit Logistica

in Berlin, February 3-5.

Sandra Evans is leading the initiative– and

Sirane‘s Resolve absorbent pad technology is

capturing the attention and business of markets

for growers and retailers. ‗Over the past 18

months, Sirane‘s Resolve pad sales for fruit

applications have grown by 420%,‘ she says.


Vol. 1-10 © GIRACT 2009 17

Starch Italics Global Starch Review


Sirane gets set for a fruitful year ahead (Cont’d)

―We have single supplier status now with a

number of UK supermarkets; we are selling all

over the world – with the USA, South Africa,

Spain leading the way – and we are also currently

preparing to exhibit the Resolve pad at Fruit

Logistica in Berlin (Feb 3-5) – and at Foodex,

NEC, UK, March 21-24‖.

New packaging such as Resolve greatly reduces

the odds of this happening in the fruit sector.

Older style packaging such as bubble wrap or

cardboard trays and pockets does not now offer

enough. The Resolve pads now tick all the boxes

as far as absorbency, cushioning and aesthetics

within the punnet, leading to less rejection‘.

The Sirane Resolve fruit pad is available in

standard and compostable versions. It cushions

the fruit, absorbing excess moisture or juice,

thereby decreasing pack and product waste.

The Resolve absorbent cushioning fruit pad - fully

compostable and competitive with alternative

materials - is primarily supplied as part of a

package involving PP or PET trays. In addition to

its compostable function, the Resolve pad helps

suppliers to extend shelf life and also guard

against damage, discoloration and decay.

In its compostable version, the Resolve pad is

composed of a non-genetically manipulated corn

starch-based film which has been thermally

laminated to a fully compostable FSC (Forest

Stewardship Council) accredited cellulose-based

absorbent material. The pad composts quickly

accordingly to the latest European consumer

composting standards. (pandct.com 11 Jan 2010)

Plant-based plastics to replace petroleum plastics?

As the price for crude oil continues to rise over

time, the cost of producing petroleum-based

plastic products continues to rise with it.

Alternatives like bio-plastics which currently cost

more to produce than existing plastics may

oneday become more cost effective than

petroleum-based plastics.

Frederic Scheer, owner of a company called

Cereplast that makes sustainable bio-plastic

material from vegetable and grain starches,

believes that petroleum prices will eventually

exceed the costs of producing his own product.

By 2013, he believes that industry giants like

DuPont and BASF will pursue his technology as a

replacement for their soon-to-be outdated

petroleum plastics.

Scheer‘s company has developed a method of

converting starch from corn, wheat, tapioca, and

potatoes into biodegradable plastic resins.

Because they effectively biodegrade in a mere

90 days, they are an excellent alternative to

traditional plastic cups, containers and packaging

materials.

Cereplast also produces a hybrid resin composed

of 50% renewable bio-plastic which cuts waste

and conserves energy. This blend is useful in

things like cars and children‘s toys. By cutting the

amount of polypropylene plastic used in products,

the kind most typically used in consumer

products, Scheer hopes his company will help to

reduce the negative environmental impact caused

by plastic products.

Scheer is diversifying his efforts by researching

the potential for utilizing algae. Because it can be

grown quickly and cheaply, it is likely to work

even better than starch because its costs would

remain more stable. His company plans to release

an algae-based plastic by the end of 2010.


Vol. 1-10 © GIRACT 2009 18

Starch Italics Global Starch Review


Plant-based plastics (Cont’d)

Another hot commodity receiving little attention

in the mainstream is the hemp plant. Hemp is a

renewable biomass source that would not only

work well in producing clean, bio-degradable

plastic products, but would also pave the way for

energy independence by eliminating the need for

fossil fuels. The uses for hemp are endless.

With a market topping USD 2.5 tio worldwide,

the plastics market holds a lot of potential for

those with alternative ideas.

(NaturalNews 30 Jan 2010)

Plantic inks deal to improve biodegradable plastic supply chain

The Australia-based bio-degradable plastics

maker, Plantic Technologies, has announced plans

for a new US manufacturing facility designed to

reduce the cost of its production processes.

The company has signed a deal to relocate one of

its manufacturing lines to the premises of

Indianapolis-based National Starch in a bid to

reduce supply chain and material costs and

facilitate closer collaboration between the two

companies‘ R&D and manufacturing efforts.

National Starch is Plantic‘s primary supplier of

specially modified starches, which are used in the

production of the firm‘s corn starch-based bio-

plastics. The two firms have been working

together since October 2007, when they signed a

joint collaboration deal to develop new starch and

starch modification technology, which acts as the

basis for creating biodegradable polymers.

Plantic‘s CEO, Brendan Morris, said that the new

manufacturing facility was expected to

significantly reduce the current cost of Plantic

materials by integrating the two processes of

manufacturing and key raw material supply.


Plantic inks deal (Cont’d)

The reduced costs could ultimately be passed on

to the firm‘s 40 customers in Australia, Europe

and the US, which are using its rigid sheet,

injection moulding, blow moulding and flexible

packaging resin in a range of projects and trials.

Morris admitted that the company‘s commercial

operations had been affected by the slower than

anticipated recovery from global recession, and

that as a result fiscal 2009 revenues would be

lower than expected.

But he added that losses from operations and cash

in the bank would be in line with forecasts due to

cost reduction programmes initiated earlier in the

year and careful cash management.

Morris also predicted that the outlook for 2010 is

optimistic arguing that the relocation of Plantic‘s

manufacturing line would have a beneficial

impact on sales. In addition to the extended

partnership with National Starch, Plantic said that

the two companies are discussing expansion plans

in the US market.

Earlier this year, Plantic released research from

the Royal Melbourne Institute of Technology

suggesting that its plant-based plastics delivered

significant cuts in energy use and carbon

emissions compared to conventional plastics.

The research revealed that one sheet of Plantic

material containing enough plastic to make 1 000

chocolate trays uses 544MJ of energy, compared

to the 1 362MJ used to produce 1 000 trays made

from conventional polyethylene.

(BusinessGreen 29 Dec 2009)

Vol. 1-10 © GIRACT 2009 19



Groundbreaking cellulosic bio-fuel technology moves toward commercialisation

The Energy & Environmental Research Center

(EERC) Foundation and Whole Energy Fuels

Corp., headquartered in Bellingham, are poised to

commercialise a novel and groundbreaking

cellulosic bio-fuel technology developed at the

EERC at the University of North Dakota.

Whole Energy is receiving global, exclusive

licensing rights to EERC Foundation‘s technology

which converts biomass and other recycled

material into liquid bio-fuels.

Utilising cellulosic materials to produce bio-fuels

has several advantages. Cellulosic materials such

as wood, grasses or the non-edible parts of crops,

including wheat straw, soybean hulls, and corn

cobs, are vast and diverse feed-stocks compared

to first-generation feed-stocks like corn starch or

sugarcane. In addition, cellulosic fuels promise to

become the lowest-cost bio-fuel while at the same

time provide large reductions in greenhouse gas

emissions compared to petroleum-derived fuels.

―This project presents an exciting opportunity for

the EERC, as it is one of the very first involving

production of advanced fuel additives from

cellulosic feedstocks‖, said Senior Research

Advisor Ed Olson. ―This technology will

ultimately be used to improve engine performance

using a renewable product, both in gasoline and

diesel engines. In the case of diesel fuel, our

additives will boost the cetane levels, improve

flow properties and, most importantly, reduce

particulate emissions‖.

The current federal Renewable Fuel Standard

requires that 36 mio gallons of bio-fuels must be

used in transportation fuel by 2022, including at

least 21 bio gallons of advanced bio-fuels such as

cellulosic bio-fuels. This creates a gigantic market

for cellulosic bio-fuels.


Groundbreaking cellulosic bio-fuel technology (Cont’d)

Atul Deshmane, CEO and President of Whole

Energy, is excited to capture this market

opportunity and build on over 15 years‘

experience in the alternative fuels industry.

―Partnering with the EERC and obtaining a

technology license from the EERC Foundation

will jump-start Mercurius Biofuels, a new

company formed with our help to develop and

commercialize advanced bio-fuel technologies,‖

said Deshmane.

―Mercurius is developing the technology with the

intent of building and operating a pilot plant to

demonstrate what may be the most energy- and

carbon-efficient process for making a cellulosic

fuel‖, he added.

Karl Seck, President of Mercurius Biofuels, is

looking forward to building a successful company

with the EERC Foundation‘s technology as its

centerpiece. ―The EERC Foundation‘s bio-

refinery technology is superior to other

technologies because it does not depend on

enzymes, fermentation, or extreme operating

conditions‖, said Seck.

(Earth Times 11 Dec 2009)

Mitsui plans ethanol plant

Malaysia: Japanese company, Mitsui, could be

investing in an ethanol plant in Malaysia.

According to the news agency - Bernama, the

company, Mitsui Engineering Shipbuilding, is

looking to invest MYR 290 mio in the project.

The company is expected to first build a pilot

plant costing MYR 40 mio using discarded fruit

branches as a feedstock. The investment to build

the plant up to commercial scale will involve

another MYR 200 mio.

(GlobalBioenergyIndustryNews 14 Dec 2009)

Vol. 1-10 © GIRACT 2009 20



Government of Canada supports next-generation bio-fuels project

Ontario - A technology that could allow bio-fuels

producers to increase both their profitability and

competitiveness has been given a boost today.

Sustainable Development Technology Canada

(SDTC) has awarded a project led by SunOpta

BioProcess Inc. up to USD 5.5 mio in funding for

the construction of a facility to demonstrate its

integrated process that aims to produce both food

grade xylitol - a healthy sugar substitute - and fuel

grade cellulosic ethanol.

―Next-generation bio-fuel technologies are

generating even greater environmental benefits

and are also providing new economic

opportunities through innovative co-products‖,

said Lisa Raitt, Minister of Natural Resources.

―The Government of Canada is pleased to support

companies like SunOpta that are helping advance

clean energy technology and provide a healthier

environment for Canadians‖.

Using wood chips as feedstock, SunOpta‘s

technology is projected to decrease process water

consumption by upto 75% compared to producing

corn ethanol while retaining all of the life-cycle

carbon benefits inherent to cellulosic ethanol. The

proposed project involves the construction of a

demonstration plant with a capacity of 620t of

xylitol and 2 mio l of cellulosic ethanol pa.

The SDTC funding will allow SunOpta

BioProcess Inc. to demonstrate its integrated

process technology to produce bio-fuels from

cellulose, bio-energy from lignin, and xylitol, a

natural alternative sweetener and value-added

product produced from xylan‖, commented

SunOpta BioProcess Inc. President Murray Burke.

The SDTC funding for SunOpta's project will be

leveraged with funding from members of its

consortium, including Xylitol Canada and

Emerald Forest Sugars Inc.

(Marketwire 12 Jan 2010)

Ethanol Future

Dakota: The Environmental Protection Agency

recently announced it was delaying a decision that

ethanol producers are waiting for. Jim Olson

reports on that and other factors that could

determine the future of ethanol production in

North Dakota. The EPA won‘t decide until at

least this summer if it will declare that all motor

vehicles can safely use 15-percent ethanol.

Currently, the limit is 10% alcohol in gasoline for

all cars and trucks.

Jeff Zueger, Blue Flint Ethanol GM: ―Right now

you have E-10 and that's the bulk of the gallons

that are blended in. Go to E-15 and you've

increased that 50% so it's very significant for the

industry so we get those types of technology

issues behind us‖.

Jeff Zueger is general manager at Blue Flint

Ethanol near Underwood. His plant is pumping

out 60 mio gallons of ethanol pa, over its official

capacity, but he thinks a favorable ruling by the

EPA would be good for the industry and spur

development of ethanol made from things other

than Corn. For instance, he says his plant could be

converted to make ethanol from non-food organic

material.

―A corn-based, starch-based conversion facility

like this could be converted over to a cellulosic-

based and move into the advanced bio-fuel as

opposed to the corn feed stock‖, he added.

(kxnet.com 24 Dec 2009)

Ethanol makers seek more state help

Ethanol manufacturers say they are still struggling

to export surplus supplies, even after lobbying

successfully last year to change the law to allow

exports. ―The government should enforce

measures to make it easier for ethanol

manufacturers to export these surplus products‖,

said Rungrote Sukkirtkijpibul, plant director of

Sapthip Co.


Vol. 1-10 © GIRACT 2009 21



Ethanol makers seek more (Cont’d)

Currently, local demand for ethanol averages

1.2 mio litres per day but the supply is 3 mio l.

Sapthip began operating its THB 1.5 bio ethanol

plant in Lop Buri at end of April 2009, using 500t

of cassava a day. About 2.5-3kg of cassava can

produce 1 l of ethanol.

The production cost is 21-22 baht per litre but the

market price is only 23 baht so margins are thin.

Most ethanol producers use molasses but a

sugarcane shortage last year prompted Sapthip to

change strategy.

―From May to August the price of molasses was

very high, resulting in an undersupply of molasses

and ethanol. Therefore, cassava needed to be

used, and that was how we benefited from the

opportunity‖, said Supoj Srisathaporn, sales and

marketing director.

The plant produced 30 mio l of ethanol in 2009

and expects production to reach 60 mio in 2010.

"Since starting operation, we have suspended

production [occasionally] in order to fix our

machinery, resulting in only an average of

120,000-140,000 l of ethanol produced per day or

4 mio litres per month at most," said Supoj.

"However, in the fourth quarter of 2009 we were

able to produce more than 200 000 lpd."The plant

has a full production capacity of 230 000 lpd.

Sapthip's customers include PTT, Shell, Esso,

Chevron and IRPC, with almost half of its output

sold to PTT.

The plant uses biogas to generate steam to heat

boiling starch and for refining. Rungrote said the

company might consider setting up an electricity

plant if production capacity increased. "Currently

I think we are not able to push forward with

gasohol, since there is still petrol being sold here.

If it was all gasohol, the demand for ethanol might

reach 3 mio lpd," he said.


Ethanol makers seek more (Cont’d)

Rungrote said ethanol exports had potential in the

Philippines and Korea, and especially in Japan

where E3 - 3% ethanol in petrol - is mandatory.

―Japan does not have its own ethanol production

and buys ethanol from Brazil, which has high

transport costs. That makes it possible for our

country to push forward our exports‖, he said.

(bankokpost 05 Jan 2010)

Lower corn grades have Casco turning to the US; Greenfield taking wait-and-see approach

Edwardsburgh/Cardinal - The average grade and

weight of Eastern Ontario's 2009 corn harvest

may be down. But that hasn't dented the huge

appetite for locally grown corn by two players

both located in this little township: Casco's

Cardinal plant, which for years was Canada's

single largest corn-consuming industrial plant,

and the new Greenfield Ethanol plant in nearby

Johnstown, the upstart whose corn intake

officially surpassed its much older rival last year.

Officials at both companies - who confirmed for

The AgriNews that the new ethanol plant

consumed more corn than Casco's Cardinal

operation in 2009 - say the quality of the recent

local harvest has been OK for their purposes.

―The yields were exceptional, but no doubt the

test weights are a little light‖, said Bill McDonald,

Greenfield Ethanol‘s commodity manager at

Johnstown.

McDonald estimated that most of the Eastern

Ontario crop had come in at what he described as

a ―weak number three grade or a strong number

four grade‖, compared to the number two grade

the majority of the crop achieved the previous

year.


Vol. 1-10 © GIRACT 2009 22



Lower corn grades have Casco turning to U.S (Cont’d)

Despite the lower grade, ―as it stands right now,

we don't seem to be seeing a difference in our

[ethanol] yield‖, he offered. However, he

qualified the remark by saying the company was

waiting to see further data and analysis. "I don't

think it would be wise to comment on whether

this corn is going to produce less ethanol or not‖.

Very wet conditions as the harvest got underway

in October also meant that Greenfield had some

takers for its wet corn program, which sees the

company subsidize a farmer's cost of drying wet

corn delivered to the nearby Port of Prescott‘s

drying facility, according to McDonald, who

declined to disclose how much the program cost

the company in 2009.

Going on line in December 2008, the ethanol

plant mills 20 mio bushels of dry corn annually -

65 tractor trailer loads daily ' to produce 200 mio l

of fuel ethanol as well as dried distillers grains as

a feed byproduct. Most of the corn is locally

sourced, though McDonald didn't provide an

exact figure, remarking, "It's our goal to buy as

many of the bushels from the local market as

possible‖.

Greenfield‘s corn intake was higher in 2009 than

16.5 mio-17 mio bushels typically consumed by

Casco at Cardinal, conceded Shelley Wybo, the

corporation‘s Canadian purchasing manager. And

it's higher, too, than the 18 mio bushels she

expects the Cardinal plant to require in 2010, to

make up for the lower starch content of the local

Eastern Ontario crop this year.

―With the test weight being lower, the volume of

corn will have to increase this year for sure‖,

explained Wybo, who suggested the overall grade

was the lowest seen in nine years. She said that

Casco buys most corn locally for the Cardinal

facility, located on the St. Lawrence River, but

always supplements this with a single boatload of

550 000 bushels from the U.S. (Continued)

Lower corn grades have Casco turning to U.S (Cont’d)

But with the lower starch content of the current

crop, combined with Greenfield‘s competition for

the local corn supply, she anticipates at least four

more ships will have to be brought in. ―We'll have

at least one per month, staring in July, August,

September and October‖.

A wet-milling plant, Casco accepts corn straight

off the field, but even it required some drying as

the soggy 2009 harvest got started because the

Cardinal plant can‘t handle moisture levels above

30%.

The plant uses the corn to make mostly

sweeteners, along with gluten feed and gluten

meal, and cracked corn and industrial starch. Both

McDonald and Wybo noted that the corn harvest

remains a little behind schedule in Eastern

Ontario. McDonald estimated that something less

than 10% of the crop remains on the field, as of

early January - which is higher than usual.

Asked for her take on Greenfield‘s arrival in the

local marketplace, she said it was proving ‗very

difficult‘ for two large corn buyers to be located

side by side. (agrinewsinteractive.com Jan 2010)

AE Biofuels to restart Cilion ethanol plant

A California ethanol plant that has been idle since

April 2009 is on the way to being restarted. AE

Biofuels has entered into a 3-year lease agreement

with Cilion Inc., the owner of the plant, to operate

the plant with the subsidiary name AE Advanced

Fuels Keyes.

Andy Foster, president and COO of the AE

Biofuels‘ biofuels division, said that the plant will

first undergo repairs and retrofitting. The goal of

the Cupertino, California-based company is to

start producing ethanol again in late spring this

year.


Vol. 1-10 © GIRACT 2009 23



AE Biofuels to restart Cilion ethanol plant (Cont’d)

AE Biofuels is leasing the ethanol plant from

Cilion for USD 250 000/month. Once ethanol is

being produced again, the company will pay

Cilion USD 3 mio pa for 3 years.

The 55 mio gallons pa ethanol plant will, in the

beginning, continue to use corn as its main

feedstock. Eventually however, the firm plans to

utilise up to 25% agri-residues, such as corn stalks

and wheat straw. ―We anticipate making the

conversion to cellulosic inputs once the plant has

been up and running at a steady state for at least

6-9 months. Our goal for cellulosic production is

the first half of 2011‖, he said.

(ethanolproducer.com 28 Jan 2010)

China completes cassava genome sequencing for energy use research China has completed the genome sequencing of

three varieties of cassava, the roots of which are

used to produce ethanol. The genome sequencing

can shed light on the cassava plant as a source of

biomass energy. It also lays the foundation for

enhancing cassava‘s ability to grow on barren soil

and resistance against drought, said Peng Ming,

head of the Biology Institute of the Chinese

Academy of Tropical Agricultural Sciences.

The sequencing has covered more than 95% of the

cassava varieties such as Ku50 (high starch

content cassava), W14 (original cassava) and

CAS36 (sweet cassava). The United States has

only covered 65% of one variety. No other

country has published research of the cassava

genome sequencing so far, Peng said.

The three varieties‘ draft genome maps would be

completed in March, 2010. Cassava is extensively

grown in southern China for food and as a new

source of biomass energy. ―Genetic researches

will enable cassava to grow in the colder and drier

northern China‖, Peng said.

(iStockAnalyst 18 Jan 2010)

Mix and match corn-based co-products of ethanol to achieve a balanced ration

With profitability back in the corn refining and

ethanol industry, those co-products destined for

livestock feed will be widely available. Wet and

dry corn gluten, distillers dried grains, and other

products left from the removal of starch will be

competing with each other, and all will be

competing with shelled corn. If you have

livestock to feed, there may be a reason to brush

up on the products and their characteristics.

Ethanol can be produced from both the wet and

dry corn milling industry, since both provide the

means to remove the starch component of the corn

kernel.

In the wet milling process, a bushel of corn

produces 5.7kg of corn gluten feed and 1.1kg of

corn gluten meal, in addition to 14.3kg of starch

which is converted to sugars and alcohol. During

May 2007-November 2009, wet corn gluten feed

production increased, but production of corn

gluten meal and corn gluten feed declined along

with corn germ meal.

O‘Brien says wet corn gluten feed made up 44%

of the wet corn milling co-product, with corn

gluten at 30%, corn germ meal at nearly 16% and

corn gluten meal at 10%.

1. Corn germ is removed from the kernel and oil

is removed from the germ, with corn germ

meal remaining. It is 20% protein with an

amino acid balance good for swine and

poultry.

2. After the starch is removed, the balance of the

kernel is composed of bran and fibre which

becomes corn gluten feed and can be sold

wet/dry as a complete feed for dairy, beef,

poultry, swine, and pet foods. Dried pellets are

21% protein. Wet feed is 45% dry matter and

is perishable in 6-10 days.

3. Corn gluten meal is starch and gluten that is

dried to 60% protein. Some starch can be

removed in other processes. (Continued)

Vol. 1-10 © GIRACT 2009 24



Mix and match corn-based co-products (Cont’d)

In the dry milling process, a bushel of corn

produces 18 pounds of distillers dried grains with

soluble. The ground wet corn will have its starch

washed out, with distillers, wet and dried grain

and dried grains with soluble remaining.

Dry mills produced about 907.2 mio kg of

distillers‘ wet grains per month in the 30 months

prior to November 2009. In the final month of the

period 44% of the weight of the co products was

in the form of distillers‘ wet grain, along with

nearly 39% distillers dried grain with soluble,

14% distillers dried grains.

Condensed distillers soluble are 29% protein, and

range from 25% to 50% dry matter. It is used as a

highly palatable feedstuff to supplement forages.

When the feed is subjected to centrifugal force to

expel the water, the remaining portion is called

wet cake. (cattlenetwork.com 26 Jan 2010)

Future of the company: Poet

The ethanol industry continues to face financing

challenges and uncertainty. Producers have filed

for bankruptcy and plants have been closed in

many locations as a result of the economy and

low margins created by commodity price

fluctuations. The unpredictability of future

ethanol blend rates has also constrained future

development.

Despite the volatile conditions facing the ethanol

industry, Poet looks to have escaped much of the

damage. The Sioux Falls-based integrated bio-

fuels company appears to be well-positioned to

take advantage of ethanol‘s long-term promise.

Poet is the world‘s largest ethanol producer,

refining 1.5 bio gallons of ethanol a year at 26

facilities in seven states.


Future of the company Poet (Cont’d)

The company is a leader in research and

development, ethanol plant development and

efficiency and also markets its refined ethanol as

well as by products such as distillers‘ grains.

―This is not the first time the ethanol industry has

faced challenges and it won‘t be the last‖, says

Jeff Broin, the company‘s CEO. ―Today margins

are much better than they have been over the past

year. Poet has remained strong over this

challenging timeframe by finding creative ways

through research and engineering.

Many ethanol producers, including Sioux Falls-

based VeraSun Energy Corporation, a giant in the

industry, have been forced out of business in the

last two years as margins and demand for ethanol

lagged. While the changing market conditions

have affected Poet, the company has remained

strong and has been able to increase its market

share.

Poet has a patent-pending raw starch hydrolysis

process that converts starch to sugar, which then

ferments into ethanol without the use of heat. The

company‘s BPX process has been shown to

reduce energy costs, water use and plant

emissions while increasing the amount of starch

content for conversion to ethanol and protein

content and potentially leading to greater plant

output.

The company‘s goal is to cut the plant‘s per-

gallon cost below USD 2 by the time it begins

commercial-scale production. Once completed,

the plant will produce 125 mio gallons pa,

including 25 mio gallons from corn fibre and corn

cobs, which will increase how much it can

produce from each bushel and acre of corn and

reduce the use of fossil fuels needed to power the

facility. (Prairie Business 11 Jan 2010)

Vol. 1-10 © GIRACT 2009 25



Süd-Chemie & US technology licensor GTC technology agree on strategic alliance

Süd-Chemie AG, a leading worldwide

manufacturer of industrial catalysts based in

Munich, and GTC Technology Inc., Houston, a

global technology licensing and engineering

company for chemical and petrochemical

applications, have reached agreement on a

strategic alliance. As part of this alliance

agreement, Süd-Chemie has acquired a 25% share

in GTC.

The partnership significantly strengthens Süd-

Chemie‘s position in the market for catalysts used

in the aromatic complexes. Aromatics are key

intermediates for many fast growing applications.

Prime example is para-Xylene – a compound

which is the key intermediate for polyester. The

demand for para-xylene is projected to grow

significantly especially in China, the Middle East

and Southeast Asia.

Within the scope of this co-operation, Süd-

Chemie will develop and supply catalysts and

absorbents for GTC‗s processes. The two

companies have also agreed to co-operate closely

in promoting R&D, expanding the product

portfolio and providing mutual technical support.

GTC Technology, a technology and process

equipment supplier focused company with an

overwhelming expertise in the areas they are

serving, has been growing very fast over the last

couple of years.

They currently employ more than 100 people

worldwide and run production and sales sites in

the US, Korea, China, Mexico, Singapore and the

Czech Republic. Dr. Hans-Joachim Müller,

member of the Managing Board at Süd-

Chemie AG, said: ―By forming this alliance, both

GTC and Süd-Chemie will enjoy benefits from

aligning development capabilities and exploiting

synergies related to our current service offerings‖.


Süd-Chemie & US technology licensor GTC technology (Cont’d)

―The alliance will not only focus on growing the

existing portfolio but is also determined to expand

its role as a technology & service provider. By

combining Süd-Chemie‘s catalyst know-how with

GTC‘s process expertise and technical support

capabilities we will make a difference to the

industry we are serving‖, he added.

The Süd-Chemie Group generated sales of

EUR 1.2 bio in 2008, approx. 80% of these

outside Germany. (Chempoint 18 Dec 2009)

Univar steps up business in the Middle East and Africa

Brussels: Univar, a leading global company

specialising in the sales, marketing, application

and safe, efficient handling of a wide range of

chemicals and ingredients, is set to expand its

business in the Middle East and Africa.

With the opening shortly of the company‘s new

facility in Dubai‘s Jebel Ali Free Zone (pending

final formalities), Univar aims at better serving

existing and potential customers and suppliers in

this dynamic growth region.

Univar has been operating in the Middle East and

Africa for 20 years in the oil & gas, personal care,

coatings and food industries. The company is now

investing to further develop its commercial and

product support activities for suppliers and

customers operating in the region.

The team based in Dubai, led by Nick Powell,

who has a wealth of regional chemical and

ingredients experience, will employ local experts

who can offer valued services to both European

and global suppliers and partners by offering a

true regional sales channel.


Vol. 1-10 © GIRACT 2009 26



Univar steps up business (Cont’d)

―The chemical and ingredients industry is

fragmented in the Middle East and Africa, with

many smaller companies only serving certain

market segments and small geographies. Univar

will be a perfect partner for those operating in the

region, offering localised services while retaining

the advantage of a global network, broad product

portfolio, team of dedicated industry and product

specialists as well as specialised product

application laboratories‖, said Nick Powell, GM

of Middle East & Africa, Univar.

―We intend to operate across the whole of the

Middle East and Africa and, where appropriate,

will open additional sales offices and warehouses

within the region. Univar operates as one

company, offering the same quality services and

products across the region as we do in the rest of

the world and at all times we shall locally

leverage our global strength‖, he added.

Historically, business in the Middle East and

Africa region has been carried out via Univar‘s

export teams in Europe and North America. In

order to offer a local solution to customers,

Univar has set-up a permanent office in Dubai.

―The Middle East and Africa region presents a

wealth of opportunities. Despite the current

economic crisis, we see that business is expanding

and companies continue to grow. Thanks to our

dedicated Middle East & Africa office we will be

able to further strengthen our capabilities and

contribute to the growth of our overall business‖,

John van Osch, President EMEA, Univar.

Operating from 56 distribution locations in

20 countries across Europe, Univar‘s 2 400 local

employees serve more than 50 000 European

customers in a diverse range of industries

including coatings, food, personal care, pharma

and other major sectors.

(SpecialChem 02 Dec 2009)

Gulshan Polyols’ members approve issue of FCCB

The members of Gulshan Polyols at their extra

ordinary general meeting on 7th

December 2009

have considered and approved the matter of issue

of Foreign Currency Convertible Bonds (FCCB),

QIP, Global Depository Receipts (GDINR) and/or

American Depository Receipts (ADINR) for an

aggregate sum of INR 500 mio.

(Indiainfoline 11 Dec 2009)

Cargill collects another Baldrige award

Cargill Corn Milling, one of Cedar Rapids‘ largest

manufacturers, was formally presented with the

2008 Malcom Baldrige National Quality Award

recently. VP, Joe Biden and U.S. Commerce

Secretary, Gary Locke, presented the award at the

J.W. Marriott in Washington. It was the second

time in 4 years, and the third time overall, that a

unit of Minnesota-based Cargill business has

earned the nation‘s top honor for quality.

―More than 2 400 employees across nine plants,

11 distribution terminals and various other

locations played a role in receiving this award‖,

Cargill Corn Milling President, Alan Willits, said.

In last November, the company was told that it

won the big award.

Cargill makes MaizeWize whole grain corn meal,

corn flour and masa flour. It also makes regular

and HFCS, corn oil and sugar; Animal feeds and

meals produced including Sweet Bran premium

corn gluten feed. Fermentation products include

ethanol, dextrose, industrial starch and

glucosamine.

The Baldrige award program was created by an

act of Congress in 2007 to help encourage

competitiveness in manufacturing. It was named

after a former U.S. Secretary of Commerce

recognised for improvements in government

efficiency who had died in a tragic rodeo

accident. (Gazetteonline 02 Dec 2009)

Vol. 1-10 © GIRACT 2009 27



China corn processors to become global players

China‘s industrial corn processing industry faces a

consolidation wave which will create influential

players on international markets as it grapples

with robust prices and waning government

support.

Policymakers are encouraging mergers and

shutdowns in a sector which has, nearly single-

handedly, accounted for growth in China‘s corn

use over the last decade, a Washington report

said.

Beijing's stance represents something of a u-turn

from its support, for much of the decade, for

plants turning corn into products such as citric

acid and monosodium glutamate and distiller's

grains, viewing them as a way to mop up excess

corn supplies and create employment in rural

areas.

Exports of corn products jumped 140% in the

three years to 2007-08, while those of the

unprocessed grain sank by more than 90%.

However, high corn prices, which have remained

20-40% higher than those at US gulf ports, have

sapped the government's appetite for further

expansion as well as rendering many plants

uneconomic.

Exports of major Chinese industrial corn products

by value, 2008-09:

Products Value

(USD mio)

Citric acid 523

Glutamic acid and

salts

293

Glucose, dry and

syrup

168

Dextrins 133

Lysine 102

Total 1730

Source: USDA


China corn processors (Cont’d)

International competitors:

―The Chinese government encouraged the

development of the corn-processing industry

largely to reduce excess corn supplies and raise

farm prices‖, the US Department of Agriculture

said. ―A trend of rising corn prices in China since

2005 suggests that these goals have been met‖.

Business profiles:

Companies came in a range of forms, with some

state-owned, and some, such as Chengfu Food

Group, in private hands. Chengfu which employs

1 300 people and has capacity of 400 000t of corn

is designated as a national agricultural leading

enterprise, entitling it to state support.

Some companies related to Changchun Dacheng

Industrial Group which claims to be Asia‘s largest

corn processor are listed on the Hong Kong Stock

Exchange. Changchun Dacheng which also claims

to be the world's biggest producer of lysine has

capacity to process 3.2 mio t of corn a year.

(agrimoney.com 17 Dec 2009)

China’s got a sweet tooth

Asia Bio-Chem Group Corp, through its wholly-

owned subsidiary Changtu Bio, manufactures and

sells corn starch and related products in the

People‘s Republic of China (PRC).

From its 15 000-plus sq. m. manufacturing facility

in the Liaoning province, Asia Bio produces about

270 000t of corn starch and related by-products

pa, including corn germ, gluten and fibre for the

Chinese domestic market.

Roughly 72% of the company‘s 2008 production

was corn starch, which is sold to industrial

customers in a variety of industries within China.

Corn starch is used in the manufacturing of

hundreds of food products, including MSG,

fructose, maltose, glucose, dextrin, citric acid, and

lysine. (Continued in next column)

Vol. 1-10 © GIRACT 2009 28



China’s got a sweet tooth (Cont’d)

Corn starch is also used to produce sugar

alcohols, such as sorbitol and mannitol, and is

used to produce a wide variety of modified starch

products for the pharmaceutical and fine chemical

industries. The corn starch manufacturing process

produces three byproducts: Corn germ, gluten,

and fiber. Corn germ is used by the company‘s

customers to produce corn oil, which is used for

cooking or in producing margarine. The gluten

and fiber products manufactured by the company

are used by livestock farmers as animal feed.

On September 25, 2008, the company completed

the acquisition of 100% interest of Daqing

Biochemical Company Ltd., a PRC company

located in Helongjiang Province. Daqing Bio‘s

manufacturing facility currently is under

construction. Upon completion, it is expected to

triple the company‘s annual capacity to produce

corn starch and related byproducts.

The challenging market conditions seen in [late

2008] were exacerbated [early in 2009] as the

economic slowdown in China, coupled with

government purchases of corn, had a negative

effect on gross profit.

While conditions spilled over into the second

quarter of 2009, market conditions began to

improve for the company‘s products. That

improvement continued in the third quarter, and

with the announced completion and

commencement of production at the Daqing

facility, Asia Bio-Chem‘s shares have

strengthened sharply.

Management expects that the continued recovery

in its industry will bode well for Asia Bio-Chem

as the new Daqing facility comes on stream in the

fourth quarter of this year. Fundamentally, on a

trial basis, the stock does not currently look

cheap, but the attraction to Asia Bio-Chem has

always centered on the launch of the new

productive capacity via the company‘s Daqing

facility. (moneyshow.com 30 Dec 2009)

Roquette America, Inc. acquires more property along riverfront

A lawsuit filed 17 months earlier was settled by

the sale of riverfront property in April.

Keokuk‘s Mississippi riverfront from the

Roquette America, Inc. plant south to the Des

Moines River was bought by Roquette America,

Inc. The former landowner, Hendricks Holding

Company Inc., sold the site, known locally as the

Ferro-Sil property and South-eastern Iowa Port

Terminal LLC, to a subsidiary of Roquette

America Inc., in the spring.

Roquette will operate the port terminal facility

and will continue to work with the Southeast Iowa

Regional Economic and Port Authority to

implement expanded access and transshipment

capabilities for cargo transported on and along the

Mississippi River, according to Roquette

Corporate Financial Officer Paul Janicki.

Keokuk Mayor David Gudgel, who then served as

VP and acting chair for the port authority and is

now president, said he received a call from

Hendricks management, then from Roquette

America President and Corporate Executive

Officer Dominique Taret about the final sale.

Roquette filed a lawsuit October 10, 2007, at the

South Lee County Courthouse to regain the right

of first refusal for the SEIPT property, the same

day Hendricks announced his plans for the

property. With the sale between Roquette and

Hendricks Holdings concluded, the legal dispute

was over.

Roquette‘s purchase of the property doesn‘t

change the master plan the Southeast Iowa

Regional Economic and Port Authority is working

on, according to Gudgel.


Vol. 1-10 © GIRACT 2009 29



Roquette America, Inc. acquires more property along riverfront (Cont’d)

Roquette wants to work with the economic arms

in Lee County, he added. In addition to the port

authority, those groups include the City of

Keokuk, Lee County Economic Development

Group and Keokuk Economic Development

Corporation. Since 1991, Roquette America‘s

investments in its Keokuk plant have totalled

more than USD 700 mio.

Roquette‘s manufacturing facility in Keokuk

produces corn-based starches and syrups and

polyols used in many food and beverage

applications as well as in pharmaceuticals, paper

products, cosmetics and agricultural goods.

(dailygate.com 29 Dec 2009)

Deals signal revival in buyout activity

Istanbul: Aymar, a leading brand in vegetable

oils, acquires three rival companies for an

undisclosed sum. Barely a week after a report said

mergers and acquisitions in Turkey are expected

to surge this year, statements coming from two

different sectors signaled a comeback in the

market after a stalled year.

Aymar announced it has acquired three rivals for

an undisclosed sum, while Dünya Göz, which

owns eye hospitals in Turkey, said it might reach

an agreement to sell a 30% stake to a unit of the

National Bank of Kuwait.

Aymar has acquired Çapamarka, Bozkurt and

Vita Oil, according to a company statement.

―Aymar aims to become one of the top three food

brands in five years‖, the company said.

Çapamarka is an established brand in flour,

instant soup, wheat starch, corn starch and rice

flour. Bozkurt is known for its jams and halvas, a

traditional dessert, while Vita is a well-known

margarine brand.


Deals signal revival in buyout activity (Cont’d)

Aymar was founded in 1979 under the umbrella

of Koç Holding, but joined Unilever in 1989. But

in the 1990s, Unilever decided to pull the brand

from the market. In 2003, it was acquired by

Toros, originally a supplier to vegetable oil

companies. (hurriyetdailynews.com 11 Jan 2010)

Riddhi Siddhi closes operation at Podicherry unit

India: Riddhi Siddhi Gluco Biols announced that

the management of the company has decided to

close down the operations of Podicherry unit,

which produces modified starches due to its

unviable operations.

The company has already set-up a similar plant of

higher capacity at its unit at Gokak where the

company has cost and logistics advantages in the

production of modified starches. Hence the

closure of the Pondicherry unit will not have any

impact on the company‘s overall operations and

profitability. (myiris.com 20 Jan 2010)

Vol. 1-10 © GIRACT 2009 30

StarchItalics

A review of news items from the world of starches and their derivatives

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