Starch Italics 4th Edition
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Transcript of Starch Italics 4th Edition
Starch Italics Table of Contents Starch Industry Overview April/May 2010
April/May 2010 © GIRACT 2010
Starch Industry Overview
Crops and grains
p.1 Global study on starches and derivatives
proposal
p.2 Maize plunges further in Indian domestic
market
Fusarium factor could increase in north for
wheat growers
p.3 Maize collapses more Than 5% On Fresh
Arrivals of Rabi Crop
Glencore sets up new grain handling facility in
East Anglia
Ethanol byproduct grows in popularity with
Chinese p.4 DA cites importance of cassava p.5 Belarus‟ agricultural industry can be reliable
source of currency supply
Starches and derivatives
p.5 Ohio farmers unhappy with attack on corn
sweetener
p.6 Researchers attempt microscopic chemical
Imaging for starch granule analysis
Team of K-State researchers‟ image ester
modification of microscopic single starch
granules, a scientific first
Plastics
p.7 From pond scum to plastics: Algae might
just be the next big bio-resin
p.8 Bio-plastics “The Reshaping of an Industry”
Scientists in Peru develop a plastic made from
potato starch
US bio-plastics firm monitoring European
market before expanding ops
p.9 Biotechnology to expand biomass use in China
Starch Industry Overview (Contd.) Bio-fuels
p.9 Valeric fuels: a new generation of bio-gasoline
and bio-diesel from lignocellulose
p.10 Petrobras in bio-fuels tie-up with Tereos
p.11 PTT considers B300m biogas-for-
vehicles venture
Nanotechnology for cheaper bio-fuel
Antibiotics concerns ooze into ethanol
process
p.12 Details to come on advanced bio-fuel funds
p.13 ATCO Midstream & Grow-Gen Energy to
Develop Canada's First Integrated Bio-refinery
Winter Barley Shows Promise for Ethanol
Company Information
p.14 Global Bio-chem reported modest net profit
for the year as performance rebounded in 2H
2009
p.15 Tamworth's hard to beat
p.16 Featured Earth Day Company: Cereplast
Natural Plastic (NASDAQ: CERP)
Novamont suffers set-back in bio-plastic patent
p.17 Petrobras acquires significant stake in Guarani
Akzo in Talks With Buyers for National starch
as M&A Rebounds
p.18 Cerealus Announces Licensing
Agreement for Bio-Based Ceregel™, A Next
Generation Strength and Retention System
Vinachem to build sorbitol plant
(Table of Contents continued on next page)
Starch Italics Table of Contents Starch Industry Overview April/May 2010
April/May 2010 © GIRACT 2010
Starch Industry Overview (Contd.)
Company Information
p.19 Return to ethanol profits helps ADM top
estimates
Gulshan Polyols board recommends dividend of
INR 1.25 for 2009-10
Sahyadri Industries board recommends final
dividend of INR 3 for 2009-10
p.20 Anil Products net profit rises 76.53% in the
March 2010 quarter
Tate & Lyle profit down 77% after mothballing
Iowa plant
Tate & Lyle profit dips, promises new focus-
Update 2
Dwayne Wilson elected to corn Products
International, Inc., Board of Directors
p.21 E.T. Horn and Roquette enter into new
distribution agreement
International patent quarrel with Biotec shows
no signs of letting up
p.22 English Indian Clays opts stock-split, up 14%
Anil Products Q4 net profit at INR 75.2mn
p.23 French firm eyes 36% more in Riddhi Siddhi
p.24 AGRANA operating Profit more than doubled
in 2009-10
Major carbon capture and storage project
Advancing at ADM
p.25 MGPI, ALLT, DUSA, NCOC, MEMS, NURO
expected to be lower after earnings releases.
Tongaat to increase sugar production by 25%
p.26 USDA taking applications for renewable
energy funding
ATCO Midstream, grow-gen to develop
integrated bio-refinery in Canada
Others
p.27 Amflora potatoes planted in Germany
p.28 Advertisement rates
GLOSSARY
bio „000 000 000
cpd cases per day
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
Starch Italics
is published every 2 months by:
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Geneva Switzerland
Tel +41 22 779 0500 Fax +41 22 779 0505
www.giract.com
Starch Italics Starch Industry Overview
April/May 2010 © GIRACT 2010 P a g e 1
Giract announces Starches & Derivatives Global Production and Supply Giract has just launched a multiclient project to examine current global production and supply of starches and
derivatives focusing in particular on the impact of the recent economic downturn on the industry and the change in
traditional supply patterns currently taking place. The report will also explore the factors which will influence the
industry to 2015. Details are provided in the following proposal.
The starch industry is one of the world’s largest transformers of agricultural raw material, producing 62 mio tons (expressed as primary starch
slurry with 12% moisture) when Giract published its earlier starch supply study in 2007. The many possible derivatives have long been driving
the growth of the industry, allowing it to respond with great flexibility to changes and opportunities, be they global raw material availability,
trade regulations, new technologies or end-use sector dynamics. The testimony is a remarkable average 4% annual growth over 30 years.
Since 2007, this dynamic has changed abruptly for several reasons:
High demand for agricultural raw materials by the fast growing Asian economies coincided with new competition from the bio-energy
boom, especially in USA, leading to a record high in raw material cost
High ingredient costs forced the food industry to undertake a strong cost-cutting drive, and even though starch and their derivatives were
earlier seen as ‘low-cost’ ingredients, they have now become a target for replacement in many foods and beverages
Starch production in Asia continued to expand, fuelled by strong local consumption especially in China, while European players were
facing more blows from the ongoing CAP reform in the sugar and potato starch sectors
The economic recession affected starch demand as never before and in almost every end-use sector; e.g. the European paper industry saw
a decline by 40% and with enough new mills in low wage countries, this demand in Europe may never be recovered.
While many agri-food industries posted record sales and profits when global food prices were exploding, major players such as Tate & Lyle
decided to reduce their presence in this industry, a timely decision given that since then margins have eroded beyond historical lows. Other
companies are also said to be exploring exit options.
Thus, the traditional patterns in starch production as well as the importance of Western players and markets are seriously affected, both in
terms of product portfolios and players. As new supply patterns are starting to emerge, it is the right time to take stock of new opportunities
and threats before making any new strategic decisions. This report thus attempts to provide a comprehensive picture of the actual global
starch production and trade, by product and area, and explore which key factors are likely to influence the forecast for 2015.
Giract, the ingredients and technologies specialist and leader in market analysis of starches and their derivatives, published landmark studies
in ’95, ’00, ’04 and ‘07 which pulled together starch supply by type of raw material and player across the world. These studies have been a
reference for all players in the industry and for key end-users. The present update, to be published in autumn 2010, will take into account the
various changes that have occurred across the world in the last few years, and will thus act as an important tool in your strategic planning.
• To identify starch and derivative production
- by key country/region
- by type of raw material
- by type of starch and starch derivative
- by key producer
• To evaluate trade patterns of different types of starches and derivatives
• To estimate availability of starches and derivatives by key country/ region and of starch by type of raw material
• To forecast global trends in starches and derivatives to the year 2015
Primary starch from different raw materials, including maize, wheat, potato and tapioca. Finished products as starches (native and modified)
and starch derivatives (glucose syrup, high fructose syrup, dextrose, other hydrolysates and polyols)
Global
2009/10 and forecast to 2015
Planned for September 2010
Please ask us for details of subscription to the entire report or to a specifically tailored version by product and/or area
Starch Italics Crops and Grains Starch Industry Overview
April/May 2010 © GIRACT 2010 P a g e 2
Maize Plunges Further In Domestic Market On the back of weak demand and higher arrivals, Maize
prices dipped further in the domestic futures market and
spot markets. Benchmark May contract on NCDEX
plunged nearly INR 15.5 to the session low of
INR 871.5 per 100 kg. The counter is now trading at
INR 876, down INR 11 from last close and the open
interest added 2.16% to 16 kt, indicating short selling.
According to the latest data release by Ministry of
Agriculture, the total production of maize during the
current Rabi season is likely to be around 5.6 mio t
against 5.6 mio t reported last year due to favorable
weather conditions during the crop maturity period.
On the other side, weak demand was seen in domestic
and international market. Traders and stockiest were
silent in domestic market due to poor demand of
poultry and starch industries at elevated levels. Similar
trend was also seen in international market as low
prices of maize in other producing countries such as
United States and Brazil along with strengthening in
rupee against dollar makes the Indian corn unviable at
international place.
Fresh arrivals of around 50 000 bags were reported
from Bihar with the price range of INR 775 to 795 per
quintal of cattle feed at Mughal Sarai mandi while the
prices of Nizamabad (Andhra Pradesh) were quoting at
INR 875 per quintal and Aurangabad at INR 850
per quintal. (indiainfoline.com 03 May 2010)
Fusarium factor could increase in north for wheat growers
Fusarium control might take on a greater importance for
northern growers targeting wheat at bio-ethanol
markets, believes Jim Rennie, technical director of CSC
Cropcare. (Continued in next column)
Fusarium factor (Contd.)
Mycotoxins can significantly lower the feed value of
distillers grains, a core component of the financial
viability of bio-ethanol plants, along with the bio-fuel
and carbon dioxide, he explains. Another concern for
bio-ethanol processing is research that suggests
fusarium, microdochium and cladosporium infections
could have a negative effect on enzymes used to
convert starch into alcohol, potentially reducing alcohol
yields or the plant's efficiency.
Historically mycotoxin levels in northern Britain have
been low. But slowly increasing areas of maize being
grown as far north as the Borders will increase risk,
Mr Rennie points out.
All could feature in fungicide programmes for wheat
crops destined for either bio-ethanol or distilling
markets, he suggests. The central aim for both is to
maximise alcohol yield, which is dependent on high
starch content and low nitrogen.
“Nitrogen rates for starch production should be around
40kg/ha below the optimum for milling wheats,
Mr Rennie suggests. That opens up the possibility of
growers applying sub-optimal amounts of N for yield to
maximise starch for alcohol, SAC's Steve Hoad says.
Fungicides are another consideration. Strobilurin and,
potentially, the new carboxamide fungicides have been
shown to increase yields while maintaining protein
levels. That's good for milling wheat growers looking to
boost yields and meet protein targets, but potentially
less favorable when targeting low protein. But
Mr. Rennie believes using the yield-enhancing
properties of the chemistry will still overall be positive
for producing distilling and bio-ethanol
wheats. (fwi.co.uk 11 May 2010)
Starch Italics Crops and Grains
April/May 2010 © GIRACT 2010 P a g e 3
Maize Collapses More Than 5% On Fresh Arrivals Of Rabi Crop
The spot prices of maize shrugged off by almost 5% in
last month. As per market sources, the daily fresh
arrivals of around 60 000 to 70 000 bags were seen in
mandies of Bihar, while 25 000 to 30 000 bags from
Karnataka and Andhra Pradesh. According to the latest
data release by Ministry of Agriculture, the total
production of maize during the current rabi season is
likely to be around 5.6 mio t against 5.6 mio t reported
last year due to favorable weather conditions during the
crop maturity period.
On the other side, weak demand was seen in domestic
and international market. Similar trend was also seen in
international market as low prices of maize in other
producing countries such as United States and Brazil
along with strengthening in rupee against dollar makes
the Indian corn unviable at international place.
Therefore, the spot prices of maize at Nizamabad mandi
were quoting at INR 810 to 815 per quintal from
INR 850 to 855 per quintal while prices at Delhi mandi
were at INR 955 per quintal, down INR 45 per quintal
in last one week. (indiainfoline.com 29 Apr 2010)
Glencore sets up new grain handling facility in East Anglia
Glencore sets up new grain handling facility in East
Anglia. This harvest a new Glencore grain facility will
open specifically handling wheat from the Ely area
destined for the new Ensus bio-ethanol plant on
Teesside.
As sole supplier to the bio-ethanol refinery - which
takes in 1.2 mio t per year - Glencore has been looking
to source greater quantities of feed grade wheat. The
Cambridgeshire area was identified as a good source for
surplus grain following the closure of Syral's
Icklingham starch processing facility near Bury St
Edmunds and so a strategic alliance was set up with
Fengrain. (Continued in next column)
Glencore sets up (Contd.)
The East Anglian grain trader will be the preferred
supplier to the new Ely terminal and will also
contribute significant tonnages to other Glencore
facilities. Glencore will gain long-term use of
Fengrain's store at Wimblington near March. (fwi.co.uk
31 May 2010)
Ethanol byproduct grows in popularity with Chinese
But for more than a year, China has slipped into the
back side of the American corn market by buying dried
distillers grains, a byproduct of ethanol, to feed its
livestock. Distillers grains are the shell and some of the
inside matter of the kernel after the starch is removed to
make ethanol. U.S. ethanol plants annually produce the
equivalent of about 1.2 bio bushels of distillers grains.
Total corn production exceeds 13 bio bushels. In 2008,
with a metric t equaling 39 bushels, the Chinese bought
8 mio t of distillers grains. Last year, they bought
524 mio t. In January and February, they bought
240 mio t of the grains, according to the U.S.
Grains Council.
Those purchases put the U.S. dried distillers grains
export market on its way to surpassing the 5.4 mio t
sold worldwide last year, a big jump from the 1 mio t
exported in 2006. The Chinese are buying American
dried distillers grains to feed their 443 mio hogs
because the price is right. A ton of U.S. corn costs
about USD 125. On Wednesday, a distillers grains
futures contract for July delivery could be purchased for
USD 98 on the Chicago Board of Trade.
Although information is sketchy, the Chinese corn crop
apparently has fallen short. Prices have risen above
USD 7 per bushel in Chinese markets, forcing the
Chinese to look elsewhere for cheaper corn and
distillers grains protein. Distillers grains are generally
put into animal feed at a ratio ranging from 20% for
hogs to 40% for cattle. (Continued on next page)
Starch Italics Crops and Grains
April/May 2010 © GIRACT 2010 P a g e 4
Ethanol byproduct (Contd.)
The exports of distillers grains from U.S. ethanol
plants come at a good time. Just as U.S. ethanol
production is approaching its maximum allowed under
blending limits, so are the boundaries of the domestic
distillers grains market diminished by reduced cattle
and hog herds.
For Iowa's 39 ethanol plants, the boom in distillers
grains exports is not only a financial bonus but also an
answer to the food-vs.-fuel criticism that has dogged
corn-based bio-fuels. Besides China, the biggest
customers for distillers grains are the same folks who
buy U.S. corn: Canada, Mexico and South Korea.
China's hog population is huge-443 mio vs. 66 mio in
the United States and 19 mio in Iowa-and the Chinese
don't have the same qualms about feeding distillers
grains to pigs that many American hog feeders have.
The hog-feed portion of the American distillers grains
market hasn't gone much above 25%, largely because of
fears that the finer-grained distillers grains are harmful
to the hog stomach.
Another development is the opening of a distillers
grains futures contract on the Chicago Board of Trade.
"Foreign buyers particularly want a place where they
can hedge their purchases," said Ives, referring to the
practice of buying options above and below target
prices.
So far, corn and distillers grains have co-existed in
markets. But the Agriculture Department in April
trimmed its export forecast for corn, noting competition
with distillers grains. The department reversed itself last
week and increased the forecast without comment, but
apparently in response to the expected Chinese
purchases of corn.
"I think at some point (distillers grains) will be
considered a competitive threat to corn, especially since
they are cheaper than corn," said Darin Newsom, grain
analyst with DTN in Omaha. (desmoinesregister.com
13 May 2010)
DA cites importance of cassava
According to Milo Gordo, in-charge of the Seed Pieces
of Corn and Cassava unit of DA-Manambolan, pointed
out that cassava can flexibly be used in many ways.
During his lecture on corn and cassava planting, Milo
explained that cassava starch and pellets can be used as
animal food, alcohol, mono glutamates, sweetener,
medicine, glue, biodegradable products, plywood
binder, paper, textile, and food for human consumption.
He said that 5% of cassava production is used as food,
20% as starch, and 75% as animal feeds. Milo refuted
superstitious belief of farmers that planting cassava
makes the soil parched and dehydrated after harvest,
discouraging some farmers not to plant cassava.
Milo said that cassavas sold in public markets are
mainly used for food consumption which draws a huge
demand for animal feeds. He assured the farmer-
participants to the lecture, that San Miguel Corporation
guaranteed to limitlessly purchase cassava for P8.50 per
kilo in granulated or pelletized form. Moreover, Milo
discussed that the methods of planting the cassava is a
factor that every farmer should consider for it greatly
affects production and growth.
According to the study conducted by PhilRoot Crops,
land preparation for cassava can be through flat, ridge,
and flat plus hilling up which have similar effects to
cassava production. Short stems – 25 centimeters –
produces high yield compared to longer stem-cuttings
at 34.8 root yield (ton per hectare).
Valeriano Marqueza, 60-year-old corn farmer in
Davao del Norte, is one of the participants who
received one kilo of hybrid corn during the lecture. He
said that the lecture helped him realized a lot about
cassava production. Meanwhile, Jimmy Adeser, a 48-
year-old farmer from Asuncion said that he is very
thankful of the free lecture on cassava production as he
proudly held a liquid fertilizer he got as freebie during
the event. (mb.com.ph 10 May 2010)
Starch Italics Crops and Grains Starches and Derivatives
April/May 2010 © GIRACT 2010 P a g e 5
Belarus’ agricultural industry can be reliable source of currency supply
The agricultural industry of Belarus can be a reliable
source of foreign currency revenues, Deputy Prime
Minister of Belarus Ivan Bambiza said at a joint session
of the two chambers of the National Assembly and
members of the government of Belarus on 28 May.
The programme provides efficient mechanisms for
intensifying the activity of the agricultural industry,
Ivan Bambiza said. The concept is set to address the
issues concerning the state, economic and socio-
democratic policy as well as the problems of the
regional development.
Also Deputy Prime Minister of Belarus Ivan Bambiza
has admitted that Belarus should reduce the import of
potato products to the maximum. “The issue concerning
the potato market revival and substitution of the import
of potato products should be settled by 2015,” the Vice
Premier said.
The matter concerns the potato culture innovation
development, potato processing with the use of the
latest technologies. “It is not good that, with the annual
potato production of 9 mio t, we import starch, chips
and other potato products,” Ivan Bambiza said.
According to the experts, Belarus can export 1.5 mio t
of potato annually.
Asked by the chairman of the Council of the Republic
Anatoly Rubinov what the prospects of the potato-
growing industry were, the Vice-Premier said that one
of the main reasons hampering the development of the
industry is the absence of advanced potato-storage
facilities. Despite the high production volume (9 mio t
of potatoes a year) Belarus has to import starch and
frozen peeled potatoes.
The problem can be addressed through the selection of
new varieties and construction of potato storage
facilities, he said. Belarusian scientists are working on
the new sorts of potatoes. (Continued in next column)
Belarus’ agricultural (Contd.)
Yet, the content of starch is still low, 8-11%. Its content
should be above 20% for potato processing to be
profitable.
Ivan Bambiza said that by the end of 2010 Belarus
intends to complete the program to construct potato
storage facilities. It has been fulfilled at 58%. Therefore
the government intends to “take its implementation
under control. “There is no alternative for us. This is the
only way we can ensure potato export,” Ivan Bambiza
said. According to him, now the potato storage losses
reach 30-50%, which makes potato production an
unprofitable business.
The Vice Premier is sure that in the future Belarus will
intensify the introduction of sci-tech innovations and
technological modernization, the use of resource-saving
technologies for plant growing and cattle breeding.
These measures will allow the country to increase
agribusiness‟ profitability up to 30%, Ivan Bambiza
underscored. (isria.com 28 May 2010)
Ohio Farmers Unhappy With Attack on Corn Sweetener
Food companies that remove high-fructose corn syrup
from their products threaten the jobs of farmers in Ohio,
the nation's No. 7 grower of corn, state agriculture
leaders say. Nonetheless, PepsiCo Inc. has removed all
high-fructose corn syrup from sports drink Gatorade
and replaced it with cane sugar. And ConAgra Foods
Inc. said last week it has removed high-fructose corn
syrup from its Hunt's brand ketchup. "Farmers are
extremely concerned," said Fred Yoder, whose family
farm near Plain City sends 80% of its corn directly to a
corn-sweetener refinery.
"Not only do farmers lose, but the consumer is the
biggest loser because food costs could go up 20 to 30 %
if they continue to switch from high-fructose corn
syrup." (Continued on next page)
Starch Italics Crops and Grains Starches and Derivatives
April/May 2010 © GIRACT 2010 P a g e 6
Ohio Farmers (Contd.)
Ohio produces USD 2.1 bio worth of corn, according to
the state Farm Bureau. Yoder argues that 1 700 corn-
refining employees and 2 500 corn farmers in Ohio
stand to lose their jobs if food producers turn their
backs on high-fructose corn syrup. About 58% of
consumers say they are concerned that high-fructose
corn syrup poses a health threat in the foods they eat,
according to a study last year by NPD Group Inc., a
market research company in Port Washington, N.Y.
Forty-one new soft drinks and energy drinks were
introduced last year proclaiming they contained no
high-fructose corn syrup, said Mintel International
Group, a Chicago-based research group. So far this
year, at least 14 new soft drinks and energy drinks have
been put on the market advertising their lack of high-
fructose corn syrup, Mintel spokeswoman Christine
Coombes said. (usnews.com 27 May 2010)
Researchers Attempt Microscopic Chemical Imaging for Starch Granule Analysis
The team comprises David Wetzel, Kansas State
University‟s professor of grain science and industry;
John Reffner, a chemistry professor at John Jay
College, City University of New York; and Yong-
Cheng Shi, an associate professor at Kansas State
University for grain science and industry.
The new finding can be used by the starch
manufacturers to analyze whether the modifying agent
is spread uniformly among all individual starch
granules during the production process. The team was
assisted by the K-State graduate research assistant in
the grain science and industry, Mark Boatwright, for
data processing.
(Continued in next column)
Researchers Attempt (Contd.)
As a single starch granule measures 15 µm in diameter,
it is difficult to isolate the modification. For this
analysis, the team used the advanced synchrotron
infrared microscope at the Brookhaven National
Laboratory located in Upton, New York. This
microscope utilizes light that is extremely bright and
does not have thermal noise. Although the light is
focused narrowly resembling a laser, it has a range of
wavelengths.
Wetzel explained that the technology was used to
perform an apparently impossible task, but it was
accomplished. In addition to the food industry, the
newly developed techniques can be applied in various
other starch-using industries such as corrugated board
adhesives, body powder, papermaking and clothing or
laundry starch, Wetzel said.
The techniques can also be used as a viscosity adjuster
in oil exploration for drilling fluid. Wetzel added that
the modified starch is a major business, and it is
adapted to offer suitable emulsifying properties. Further
he said that whoever deals with microscopic-level
material or starch and doubts chemical heterogeneity
can use the same technique for analysis. (azooptics.com
11 May 2010)
Team of K-State researchers image ester modification of microscopic single starch granules, a scientific first
The trio was able to apply microscopic chemical
imaging to single modified starch granules. Starch
manufacturers can use this to determine if the
modifying agent used in the production process is
uniformly distributed across individual modified starch
granules.
Mark Boatwright, K-State graduate research assistant in
grain science and industry, Runnells, Iowa, assisted
with data processing for the study.
(Continued on next page)
Starch Italics Starches and Derivatives Plastics
April/May 2010 © GIRACT 2010 P a g e 7
Team of K-State (Contd.)
Wetzel said the techniques developed in the study can
be used in industry, not only for food, the largest
industry for starch, but also for papermaking,
corrugated board adhesives, clothing/laundry starch,
body powder and as a viscosity adjuster for drilling
fluid used in oil exploration, among other uses.
"Now, we can basically show that anyone dealing with
starch or any other particle of material that's
microscopic in size and that suspects chemical
heterogeneity can follow the same lead and use the
same technique to check," Wetzel said.
Isolating the modification within an individual granule
was no easy feat, as a single modified starch granule
has a diameter of 15 microns -- or one-fifth the width of
a human hair. A normal human hair measures
80 microns wide. A micron is one-millionth of a meter.
To analyze the single granule at that size, the
researchers travelled to the National Synchrotron Light
Source at Brookhaven National Laboratory in Upton,
N.Y., to use the facility's advanced synchrotron infrared
microscope. The synchrotron microscope uses
extremely bright light that has no thermal noise. It is
narrowly focused like a laser but contains a continuum
of wavelengths.
"We used this high technology to accomplish this
supposedly impossible task," Wetzel said. "But, as it
turns out, this task was achievable.
The results were reported in the March 2010 edition of
the journal Applied Spectroscopy, "Synchrotron
Infrared Confocal Microspectroscopical Detection of
Heterogeneity Within Chemically Modified Single
Starch Granules.
"Wetzel has recently pursued this work further, using
the Wisconsin synchrotron instrumentation. Wetzel has
been a guest lecturer at synchrotrons in Germany,
Canada and Taiwan on the subject of studying
biological material with synchrotron radiation.
(articleant.com 4 May 2010)
From pond scum to plastics: Algae might just be the next big bio-resin
Even as the general appreciation for all things natural
reaches stratospheric heights, most of us probably
remain noncommittal about algae. On the one hand it‟s
great in sushi, but on the other hand it chokes the boat
propeller in shallow water.
Bio-plastics maker Cereplast Inc., however, hopes to
turn these simple sea-borne organisms into a game-
changer for plastics manufacturers looking to go green.
The company is planning to commercialize its first
grade of algae-based resins by the end of the year,
intended to complement its existing Compostables and
Hybrid resins product lines.
Obviously no stranger to the world of renewable
materials, Cereplast already uses starches from corn,
tapioca, wheat, and potatoes in the manufacture of the
Compostables and Hybrid materials. So why bother
adding yet another biomass to the mix? Because,
according to Cereplast researcher William Kelly, algae
is cheap, plentiful, doesn‟t take away from the human
food chain, and represents the near-perfect closing of
the renewable products loop.
Cereplast dries the material at its new plant in Seymour,
Ind. until the biomass becomes a powder. To date,
Cereplast has made a hybrid prototype, with organic
ingredients and polypropylene or other traditional resins
mixed with between 35 and 50% algae powder using a
proprietary process.
The algae-based biomass behaves like traditional
starch-based resins, Kelly continued, and also has a
high heat tolerance. Cereplast is currently in contact
with several companies that plan to use algae to
minimize the carbon dioxide and nitrous gases from
polluting smoke-stack environments, and also with
potential chemical conversion companies that could
convert the algae biomass into viable monomers for
further conversion into potential biopolymers.
(canplastics.com 15 May 2010)
Starch Italics Plastics
April/May 2010 © GIRACT 2010 P a g e 8
Bio-plastics “The Reshaping of an Industry”
The Plastics Industry is undergoing a dramatic
transformation as bio-plastics primarily derived from
renewable feedstocks continue to gain recognition in a
market dominated by petroleum-based products. Bio-
plastics have already reached over 1 mio t capacity,
with 2011 growth rates conservatively projected at 15-
20%.
Initial plant sugar-/starch-based offerings targeted
single-use applications. These generally advocated
composting as a new disposal option, coupled with a
lower “carbon footprint” than traditional plastics. The
bio-plastics market is now refocusing on the more
durable, and potentially more demanding, applications
sector of the plastics landscape. Reducing oil
dependence, environmental impact and human health
concerns, are now the key drivers.
To meet this challenge the bio-plastics industry is
reshaping to further enhance performance of existing
bio-based products by the use of additives, blends and
alloys. Another recent exciting dynamic is the potential
to manufacture new and existing building blocks
(monomers) derived from non-oil-based sources,
heralding the vision of conventional plastics with
known properties but no longer made from oil.
(packagingessentials.com 27 May 2010)
Scientists in Peru develop a plastic made from potato starch
A team of Peruvian scientists from the Universidad
Católica del Perú has created a plastic made from
potatoes, that is bio-degradable and can become an
alternative to mitigate the effects of pollution and also
provide added value to Peruvian agricultural
production.
The new material, made from potato, sweet potato and
yuca starch, is bio-degradable and suitable to
biocompost, according to the project's Coordinator,
Fernando Torres. (Continued in next column)
Scientists in Peru (Contd.)
Most bio-degradable plastics are made from corn,
which is abundant in the US, but this new product,
which is still under research, is made from Peruvian
potato, and the scientists team are currently trying to
find out which variety is better for these purposes.
The team has already produced plastic plates and films,
that can be used for making trays and bags.
However, the biggest challenge for the team will be
moving from researching stage to actual large-scale
production, since plastic production industry is almost
non-existent in Peru.
(livinginperu.com 21 May 2010)
US bio-plastics firm monitoring European market before expanding ops
Cereplast said a new deal with Bunge will see it expand
production of its bio-plastic food packaging in Brazil
but that any European growth plans were under review
for up to two years while it assesses regional demand.
The US-based company told FoodProductionDaily.com
that it expected its European bio-plastics development
strategy to crystallise by mid-2012. Cereplast outlined
its plans for Europe as it announced a boost to its
operations in South America. (Continued on next page)
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US bio-plastics (Contd.)
The company said it had signed a deal with Bunge
Alimentaris, a Brazilian subsidiary of Bunge Ltd, that
will see the food giant expand its use of Cereplast‟s
eco-friendly resins in food packaging.
Cereplast said it had launched its products in the
European arena this year. It added that its direct
presence in France and Germany and a distribution deal
with A Schulman to sell its range of resins was “only
the start”. Under the agreement, Schulman distributes
Cereplast Compostables and Hybrids Resins to
converters and manufacturers throughout Europe.
The bio-plastics producers said all its resins replace a
“significant percentage” of petroleum-based additives
with starches made out of corn, wheat, tapioca and
potatoes.
The company is targeting Europe as it believes there is
huge growth potential for bio-plastics – which currently
account for less than one per cent of the European
plastics market. Citing a 2007 report from analysts
Frost and Sullivan, the company said that Europe had
“experienced an exponential growth and demand for
bio-plastics that has outstripped supply”. Cereplast
added that as demand remained higher than supply,
there was “sufficient room for new participants as well
as existing companies to grow”.
(foodproductiondaily.com 25 May 2010)
Biotechnology to expand biomass use in China
Novozymes, a global bio-innovation company based in
Denmark, and Dacheng Group, a major starch
processing company based in China, announced April
29 an agreement to make plastics from agricultural
waste. The two companies have agreed to expand their
cooperation in developing biochemicals derived from
biomass and to promote the industrialization of plant-
based glycol. (Continued in next column)
Biotechnology to expand (Contd.)
Glycols are biochemicals used in household cleaning
products, cosmetics, and used as building blocks for
making polyesters and plastics.
Under the agreement, Novozymes will provide
Dacheng Group with knowledge and the enzymes for
converting biomass such as corn stover, wheat and rice
straw into sugar. Dacheng Group will then convert the
sugar into glycol. The facility, located in northeastern
China, is expected to produce plant-based biochemicals
within a few years.
China currently produces 700 mio t of agricultural
waste per year, including corn and wheat stovers, rice
straws, and others. Much of this waste is burned
directly in farm fields, which can cause serious air
pollution, rather than using this waste to develop new
technologies and new sources of clean energy.
Moreover, the development of plant-based glycols
could generate new income sources for China‟s farmers
and lessen China‟s dependence on imported crude oil.
Novozymes also released its first quarter performance
results showing strong performance in the first quarter
and increased expectations for 2010.
(biomassmagazine.com 29 April 2010)
Valeric fuels: a new generation of bio-gasoline and bio-diesel from lignocellulose
Jean-Paul Lange and his co-workers at Shell in
Amsterdam (Netherlands), Cheshire (UK), and
Hamburg (Germany) have now developed a highly
promising new generation of bio-fuels based on wood.
As the scientists report in the journal Angewandte
Chemie, modern vehicles could use it without
modification, and the existing network of fueling
stations could be used for distribution.
(Continued on next page)
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Valeric fuels (Contd.)
The first generation of bio-fuels was based on sugars,
starch, and oils derived from plants. However, because
these raw materials are primarily used for food, they
could not be supplied in the quantities required by the
transportation sector. One potential alternative is
lignocellulose (latin lignum = wood), which makes up
the cell walls of woody plants. This material is more
widely distributed and cheaper, and its use can be
produced more sustainably. However, until now
lignocellulose has required complex and expensive
processing for conversion to bio-fuels.
There is one compound that is claimed to be obtained
from lignocellulose through a simple acid hydrolysis:
levulinic acid, a product otherwise produced from
glucose and used as an additive in the cosmetics,
plastics, and textile industries. However, to date, it has
not been possible to convert levulinic acid into any
fuels with satisfactory properties.
Lange and his co-workers have now found the right
trick: they hydrogenated levulinic acid in a newly
developed process to make valeric acid, which they
then esterified to make valerates (some valerates are
used as artificial flavors). This produces a new family
of fuels, known as valeric bio-fuels. Depending on the
reactants used in the esterification, the fuel may be in
the form of bio-gasoline or bio-diesel, and can be mixed
with other fuels currently available. Modern cars can
use them without any modification to their motors;
similarly, the existing network of fueling stations could
be used for their distribution.
The new fuels have passed a long list of exacting tests.
In one road test, ten current types of vehicle, new and
used, were fuelled exclusively with a mixture of normal
gasoline mixed with 15% by volume of the vareric bio-
gasoline, and were sent out on the road to cover 500 km
a day. After a total distance of 250 000 km, no negative
impacts were found in the motor, tank, or fuel lines.
(physorg.com 10 May 2010)
Petrobras in bio-fuels tie-up with Tereos
Petrobras, Brazil‟s national oil company, and Tereos, a
French maker of sugar and starch products, have agreed
to invest up to RD2.2bn (USD 1.2bn) in a strategic
partnership to develop opportunities in Brazil‟s fast
growing ethanol industry. It follows other significant
investments in Brazilian bio-fuels by international oil
companies including BP and Shell.
Petrobras, via its subsidiary Petrobras Biocombustível,
will invest an initial RD682m in a subsidiary of Açúcar
Guarani, a publicly traded Tereos subsidiary in Brazil
that makes sugar and ethanol from sugar cane. It also
committed to a further RD929m as the partnership buys
new assets and otherwise develops its business in Brazil
over the next five years. Tereos may also invest an
additional RD600m during the first year of the
partnership.
Petrobras has set aside USD 2.8bn between 2009 and
2013 for investment in ethanol and bio-diesel, mostly in
Brazil, to meet increasing domestic and global demand
for bio-fuels.
These engines may run on gasoline, ethanol or any
mixture of the two, allowing motorists to decide at the
pump which fuel to buy.
Guarani will be delisted and Petrobras will then take an
initial 26% stake in the company, rising to 45.7% as it
injects the second-stage RD929m. It may ultimately
increase its stake in Guarani to 49% should it decide to
make further investments.
In April last year, BP made the oil industry‟s first
significant investment in bio-fuels when it joined two
Brazilian agribusiness and sugar and ethanol companies
to create Tropical Bio-Energia, in which it is committed
to funding half of total investments of RD1.66bn.
(ft.com 2 May 2010)
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PTT considers B300m biogas-for-vehicles venture
PTT Plc will spend about 300 mio baht to develop
biogas for vehicles, according to Permsak
Shevawattananon, a senior executive vice-president of
the majority state-owned energy company.
Biogas or methane would be processed from
agricultural waste into gas and could be an alternative
to liquefied petroleum gas (LPG) or natural gas for
vehicles (NGV). PTT is developing two methane gas
production units with an investment of 200 mio baht on
a pig farm in Chiang Mai. Daily methane output of 6.5 t
would be equivalent to 6 400 lpd of diesel.
Another project is in Ubon Ratchathani, where methane
gas will be made from cassava starch waste. PTT will
spend 80 mio baht to build the facility that is expected
to start operating by the middle of next year. Its daily
output of 8t would be equivalent to 8 kl of diesel.
(bangkokpost.com 17 May 2010)
Nanotechnology for cheaper bio-fuel
Researchers at Louisiana Tech University are planning
to decrease the cost of the process of bio-fuel
production by using new nanotechnology processes
developed at the university. The new technology can
immobilize the expensive enzymes used to convert
cellulose to sugars, allowing them to be reused several
times over, thereby significantly reducing the overall
cost of the process.
Novozymes‟ tech to convert agricultural waste into bio-
fuel: Danish biotechnology company Novozymes has
developed a new enzyme that can convert maize, wheat,
straw and woodchips into ethanol for as little as
32 pence per l. The new enzyme, known as Cellic
CTec2, breaks down cellulose in the waste into simple
sugars, which are then used to produce the ethanol.
(ecofriend.org 31 May 2010)
Antibiotics concerns ooze into ethanol process
Washington, D.C. - The worries about antibiotic
resistance and the rise of superbugs have reached into
the ethanol industry. Ethanol producers have long used
antibiotics to control bacteria that can contaminate the
fermentation process. But now, the Food and Drug
Administration is developing a policy to regulate the
use of the drugs and is conducting tests in Iowa and
nationwide to determine the extent to which the
antibiotics are getting into livestock feed produced by
the plants.
The feed product, known as distillers grains, is a
lucrative byproduct of the industry and a major source
of feed for beef cattle and dairy farms, helping to keep
down their production costs even as the price of corn
has risen in recent years. The FDA's concern is with the
potential human health hazards from using antibiotics
such as penicillin and viriginiamycin that many plants
use to prevent bacteria from contaminating the
fermentation tanks.
Golden Grain, which produces about 1 mio t of
distillers grains daily, uses virginiamycin. It is approved
by the FDA as an animal drug but not for use as a feed
additive because it's not a permitted food additive,
Allen said. The company currently had FDA clearance
for the drug to be used by ethanol plants, the
spokesman said.
Monte Shaw, executive director for the Iowa
Renewable Fuels Association, said the FDA seems to
be regulating distillers grains as human food, and "that
might be overdoing it. The concern for ethanol
producers is that the alternatives to antibiotics typically
cost more.
One product, made from hops, an ingredient in beer, is
being used in more than 40 of the 201 ethanol plants
nationwide, according to the manufacturer, BetaTec
Hop Products, the offshoot of a company that supplies
hops to brewers. (Continued on next page)
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Antibiotics concerns (Contd.)
The company said the cost to producers can be more or
less than the antibiotics they're now buying, depending
on how big the contamination problem is. With large
amounts of contamination, antibiotics will be cheaper.
Seven Iowa plants use the hops product and five more
are trying it, said Lloyd Schantz, senior vice president
of BetaTec. Poet produces 1.6 bio gallons of ethanol
annually at 26 plants in Iowa and other states.
DuPont makes another alternative, chlorine dioxide,
which is sold under the trade name FermaSure. DuPont
said the costs of FermaSure vary by facility. In a
statement, DuPont said sales of FermaSure have been
doubling annually since it was launched in 2007, but
the company would not disclose how many plants use
it.
Central Minnesota Ethanol Cooperative of Little Falls,
Minn., started using the DuPont product in 2007 and
markets its distillers grains as free of antibiotics. The
issue could have implications for the dairy industry,
which relies heavily on distillers grain as a less
expensive substitute for some corn.
Depending on FDA testing finds, dairy producers may
not be able to feed the distillers grains to their cattle,
Jamie Jonker, vice president of scientific and regulatory
affairs with the National Milk Producers Federation,
recently told the National Research Council. "We have
very strict regulations guiding what kind of antibiotics
can be used in feed for lactating dairy cattle," he said.
(desmoinesregister.com 30 May 2010)
Details to come on advanced bio-fuel funds
Agriculture Secretary Tom Vilsack announced on May
4 that the USDA is planning to accept applications for
the Bio-refinery Assistance Program, Repowering
Assistance Program and the Bio-energy Program for
Advanced Bio-fuels.
The Bio-energy Program for Advanced Bio-fuels works
to support and ensure expanding production of
advanced bio-fuels by providing payments to eligible
advanced bio-fuels producers.
Advanced bio-fuels are derived from renewable
biomass, other than corn kernel starch. These include
cellulose, sugar and starch, crop residue, vegetative
waste material, animal waste, food and yard waste,
vegetable oil, animal fat, and biogas
The advanced bio-fuels program is an important part of
achieving the Obama administration's goal to increase
bio-fuels production and use.
USDA's Bio-refinery Assistance Program provides
guaranteed loans to develop and construct commercial-
scale bio-refineries or to retrofit existing facilities using
eligible technology for the development of advanced
bio-fuels. The amount of a loan guaranteed for a project
under this program cannot exceed 80% of total
eligible project costs.
The Repowering Assistance Program is designed to
encourage the use of renewable biomass as a
replacement fuel source for fossil fuels used to provide
process heat or power in the operation of eligible bio-
refineries. Vilsack today also announced that USDA is
seeking applications to increase the production and use
of renewable energy sources. Funding is available from
four USDA Rural Development renewable energy
programs authorized by the Farm Bill.
(biodieselmagazine.com 5 May 2010)
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ATCO Midstream & Grow-Gen Energy to Develop Canada's First Integrated Bio-refinery
ATCO Midstream and Grow-Gen Energy announced
today that they have signed an initial partnership
agreement to develop Canada's first Integrated Bio-
Refinery(TM). The refinery will use organic wastes and
high-starch wheat to create green electricity, bio-
fertilizer and fuel ethanol. "ATCO is proud to be a
partner in this world leading technology," said Nancy
Southern, President and CEO of the ATCO Group.
"This project will generate clean electricity as well as
produce ethanol and bio-fertilizer. It is at the forefront
of environmental innovation." The project involves the
expansion of an existing biogas-to-electricity facility
east of Edmonton, near Vegreville, Alberta. The plant
currently uses manure from Highland Feeders, one of
Canada's largest feedlots, to create biogas and green
power.
The resulting green energy will be used to fuel a new
ethanol production system. The ethanol will be derived
from locally grown high-starch wheat, as opposed to
high-protein wheat used for human food products.
Under the terms of the agreement, ATCO Midstream
would operate the bio-refinery and be a part-owner.
Grow-Gen Energy L.P. of Hairy Hill, Alberta would be
the other significant owner, along with several investors
including a farmer-owned grain procurement partner,
Providence Grain Group Inc. of Fort Saskatchewan.
"This project greens Alberta's energy basket using our
own home-grown, globally patented technology," said
Shane Chrapko, CEO of Grow-Gen Energy.
"By linking efficient food production with the growing
demand for renewable energy, we are taking a major
step forward in improving the sustainability of two key
industries in the province. (Continued in next column)
ATCO Midstream (Contd.)
"The entire process is virtually waste-free. The residual
grains that remain after the ethanol is made will be fed
to cattle at a nearby feedlot, while biofertilizer, a
byproduct of the biogas production, is sold to local
farmers and oil and gas drilling companies for soil
enhancement and remediation.
The completed bio-refinery will generate 40 mio l of
fuel ethanol, 10 kt of premium bio-fertilizer and
2.5 MW of green electricity each year. It will also
create more than 100 kt of greenhouse gas emissions
offset credits annually. Operations are scheduled to
commence in mid-2012. ATCO Midstream provides
natural gas gathering, processing, storage and natural
gas liquids solutions to the Canadian natural gas
producing sector. (digitaljournal.com 4 May 2010)
Winter Barley Shows Promise for Ethanol
Researchers at Virginia Tech are developing winter
barley varieties with an eye on improving the traits
needed to make a successful ethanol feedstock. The
hull-less barley cultivar named Eve has a 62% starch
content, 9.3% protein, 58 pound test weight. That
compares with corn‟s 70% starch content, 8% protein
and 56 pound test weight. Research results on winter
barley quality were reported in a paper published in the
Journal of Cereal Science 51 (2010):
“Grain composition of Virginia winter barley and
implications for use in feed, food, and bio-fuels
production.”
Field trials indicate that Eve is likely to yield up to
80 bushels per acre. The newest hull-less cultivar Dan
exceeds Eve in yield and test weight. Newer hull-less
lines have yields that are 10 bushels per acre higher
than that of Eve. (Continued on next page)
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Winter Barley (Contd.)
Work on the region‟s first barley-based ethanol plant,
65 MMgy Appomattox Bio-Energy in Hopewell, Va., is
progressing and on track for a late spring completion.
Perdue Agribusiness is procuring grain for the new
ethanol plant which is expected to use between 20 mio
and 30 mio bushels of barley per year.
The relative price of feed barley is typically lower than
both of these crops, and it has the potential of
producing distillers grains with higher protein and
lysine content for livestock feed than that from corn. To
date, use of traditional hulled barley as an alternative to
corn in ethanol production has been limited by its lower
starch concentration, higher fiber concentration, and
abrasive nature of the hull which contains silica that
causes excessive wear on equipment.
New hull-less varieties developed at Virginia Tech
solve the problem via incorporating a trait that results in
a loosely attached hull that easily separates during
combining and grain cleaning. Complementary research
being conducted at the USDA Agricultural Research
Service‟s Eastern Regional Research Center in
Wyndmoor, Pa., has developed beta-glucanase enzymes
which both decrease viscosity problems and improves
ethanol conversion. (ethanolproducer.com 10 May
2010)
Global Bio-chem reported modest net profit for the year as performance rebounded in 2H 2009
Given that the market recovery momentum continues
since the second half of 2009, Global Bio-chem
Technology Group Company Limited and its
subsidiaries sees continuous improvement in its
operating environment and is optimistic about the
outlook for 2010. Despite incurring a net loss in the
first half of 2009, the Group reported a modest net
profit for the year of HKD 14 mio for the year ended
31 December 2009. (Continued in next column)
Global Bio-chem(Contd.)
However, after taking into account the minority
interests, the Group reported a loss attributable to
owners of the Company of HKD 15 mio. The revenue
and gross profit for the year amounted to
HKD 7 838 mio and HKD 1 057 mio respectively.
The decline in operating results was mainly attributable
to significant decrease in the average selling prices of
various products and lower sales volume of certain
businesses due to the challenging operating
environment in 2009.
"2009 was by far the most challenging year for the
Group since its listing. However, the Group's operations
had started to rebound since the second half from rock
bottom in the first half, with improvement in both sales
volume and selling prices of various products.
The Group's overall operating performance in early
2010 surpassed that of the same period in 2009,
indicating a positive trend for the current year," said Mr
Liu Xiaoming, Co-chairman of Global Bio-chem.
The board of directors of Global Bio-chem did not
propose any final dividend for the year ended
31 December 2009 (2008: HK 1.0 cents).
Although the average selling prices of the Group's
upstream products and some of its downstream
products gradually rebounded in the second half of
2009, the Group's average selling prices for the full
year of 2009 were inevitably depressed by
approximately 10% year on year.
The revenue and gross profit of upstream products,
including corn starch, gluten meal and other corn
refined products, amounted to HKD 2 354 mio and
HKD 286 mio respectively, representing a year-on-year
decrease of 15% and 19% respectively.
(Continued on next page)
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Global Bio-chem(Contd.)
Revenue and gross profit of downstream products,
including amino acids, corn sweeteners, modified starch
and polyol chemical products, in 2009, amounted to
HKD 5 348 mio and HKD 770 mio respectively,
representing a year-on-year decrease of 10% and 44%
respectively.
The Group's polyol chemicals business displayed poor
performance, affected by a few unfavorable factors
including the slip of crude oil price and high market
inventories of imported chemicals, which caused the
price of related chemicals to plunge to rock bottom. A
provision of closing inventories of polyol chemical
products amounting to approximately HKD 91 mio had
been made.
The operating environment of sweeteners in the first
half of 2009 remained severe after the outbreak of
melamine-tainted food incident in PRC and the global
financial crisis in 2008. The sales volume and revenue
of the sweeteners division dropped by approximately
16% and 15% respectively, as compared with those of
2008.
However, the demand and selling prices picked up
rapidly since the second half of 2009. As a result of a
relatively stable average selling price and tight cost
control, the gross profit of the sweetener division
declined only by approximately 3 per cent year on year.
Global Bio-chem is the largest vertically integrated
corn-based biochemical product manufacturer in Asia
with an annual corn processing capacity of 3.4 mio t.
The Group is one of the pioneers in applying corn
starch as raw material for the commercial production of
polyol chemical products. (irasia.com 2009)
Tamworth's hard to beat
Japan is developing quite an appetite for manufacturing
materials derived from northern NSW Prime Hard
wheat–products processed right on our growers‟
doorstep in Tamworth. Itochu Corporation, whose
diverse manufacturing business ranges from fishcakes
to plasterboard, is so impressed with northern NSW‟s
starch and gluten quality the company has invested
heavily in the newly-formed supplier, Grain Products
Australia (GPA).
Itochu already consumes all GPA‟s 3 500 t of glucose
production each year. It now wants to buy vast
quantities of modified starches from GPA from 2011
following an USD 8 mio upgrade at the Tamworth plant
later this year which it has helped fund.
The upgrade and Itochu starch order will return the site
to full production capacity for the first time since GPA
purchased it and possibly result in a small expansion of
staff which already numbers around 50. GPA currently
consumes about 45 mio t of hard wheat annually from
farms north of Tamworth and is expected to need
65 mio t in 2011, if not closer to 90 mio t to fill its
expanding order book.
New machinery from Finland, Sweden, Spain and
Japan is expected to be installed and operating in
November. It will enable native starch to be further
refined into a premium product for use in Itochu‟s food
products. GPA‟s drive to secure the Japanese market
has delivered the Tamworth plant greater profitability
than it enjoyed under previous owner, the US-based
Penford Corporation.
The key to this turnaround has been former Penford
employee and Tamworth plant general manager, Henry
Segerius, who is also a director of GPA. With more
than 20 years‟ experience in the industry–plus a
previous career with sugar refiner CSR – Mr Segerius is
one of four GPA directors who took over management
of the Tamworth plant last November.
(theland.farmonline.com.au 17 April 2010)
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Featured Earth Day Company: Cereplast Natural Plastic (NASDAQ: CERP)
Today is Earth Day so it seemed appropriate to
highlight one of our “green” companies, and shed some
light on a real-world application and how resources are
renewed for bio-plastics and bio-resins is a company
which designs and manufactures proprietary starch-
based and algae-based bio-plastic resins. The stock
began trading on the NASDAQ earlier in the month.
The company holds 48 patents and patent applications
in the U.S. and Worldwide.
These are exciting times for bio-plastics as demand is
growing exponentially and by most accounts should
continue. According to a recent article by CNN Online,
some predict the U.S. market for these plastics will
reach USD 10 bio a year by 2020 a tenfold increase
from 2007.
Cereplast has developed and is commercializing its bio-
based resins through two complimentary families;
Cereplast Compostables and Cereplast Hybrid Resins.
Furthermore, the company has recently been exploring
algae-based bio-plastics. Moving forward the company
is involved in expanding its product applications as it is
working on a new algae-based initiative. If the
company can use algae as a component for bio-plastics
this would be breakthrough.
When we asked CEO Fredrick Scheer about this he
responded, “The difference between ethanol in bio-
plastic is significant. First the quantity of corn used to
make bio-plastic is less than half of the amount of corn
required to make Ethanol. Second, Cereplast used a
basket of starches allowing a better diversification that
using only one single component. Third the quantity
used today represents less than 0.1% of the corn used in
the USA, now on a longer prospective Cereplast has
studied the possibility of using alternative feedstock
and will launch later this year the first ever algae based
plastic.” (worldmarketmedia 22 April 2010)
Novamont suffers set-back in bio-plastic patent
Italian bio-plastics manufacturer Novamont suffered a
set-back in its patent enforcement programme last
month when claims of infringement against French
films group Sphere and German bio-plastics producer
Biotec were not upheld by a French court.
Novamont‟s action against the two companies, which
dates back to 2007, alleged infringement of three
patents relating to production of polymer compositions
containing thermoplastic starches – EP0327505 (now
expired), EP0937120 and EP0947559. In its ruling, the
Tribunal de Grande Instance court in Paris found that
two of the Novamont patents were valid and the third
(EP0937120) was partly valid.
However, it ruled the Italian company had not provided
proof of infringement. Novamont was ordered to pay
compensation of EUR 50 000 each to Sphere and
Biotec and to pay the costs of the action. Novamont
told European Plastics News it will challenge the Paris
court decision. “The Paris court ruled…that the
analyses presented by Novamont were not by
themselves able to support the infringement claim. The
court, therefore, did not rule that Sphere and Biotec are
not infringers: it did not enter into the merits of the
evidence,” said Novamont public affairs manager
Andrea di Stefano. “Novamont feels that the evidence it
brought does indeed prove that infringement has
occurred and will appeal against the decision,” he said.
The court action related to Biotec‟s supply of its
Bioplast 106/02 starch-blend bio-plastic to Sphere and a
number of its subsidiaries. The German company‟s
defence included counterclaims against some of
Novamont‟s patent claims, two of which were upheld.
In a statement, Biotec, a joint venture company set up
by Sphere and UK-based Stanelco, described the court
ruling as a significant victory. “This judgement is
legally effective for the whole of France and also sends
a signal,” it said. (Continued on next page)
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Novamont suffers (Contd.)
Novamont is pursuing legal action against Sphere and
Biotec in the Italian courts over the same patents. The
French court decision has no impact on this action. The
Italian bio-plastics materials company is also
continuing a legal action against German bio-plastics
development company BIOP Polymer Technologies in
the Munich court. This involves three patents. Last year
BIOP obtained a ruling of invalidity from the Munich
patent court, which Novamont is appealing, on one of
these – the same EP0327505 patent involved in the
French action. BIOP declined to comment to European
Plastics News on progress with this action.
France-based Sphere is a major producer of household
and waste collection packaging with 17 manufacturing
subsidiaries across Europe. Listed in the European
Plastics News ranking of European Film Producers and
Converters with annual sales of EUR 375m, the
company is a major player in production of bio-based
plastics film products. German company Biotec has
been jointly owned by Sphere and Stanelco of the UK
since 2005. With an annual production capacity of
around 20 mio t, it is one of Europe‟s leading producers
of bio-based plastics. It supplies to Sphere and also
manufactures the range of bio-based resins marketed by
Stanelco subsidiary Biome Bio-plastics.
While not directly involved in the Novamont legal
action, Stanelco chief executive Paul Mines welcomed
the Paris court decision, saying it would help the
development of its bio-plastics business. “We are
pleased that our efforts in defending Biotec‟s
technology have been validated by the first court to
hear the case. We would hope that this positive result
previews the findings of other courts on this matter,” he
said.Novamont is one of the world‟s leading producers
of bio-plastics materials with a claimed annual capacity
of 80 mio t. (europeanplasticsnews.com 5 May 2010)
(Continued in next column)
Petrobras acquires significant stake in Guarani
Brazilian oil giant Petrobras is to purchase a 45.7%
share in ethanol producer Acucar Guarani, previously
controlled by France-based sugar, starch and ethanol
producer Tereos. Petrobras Bio-combustive will acquire
the stake for USD 920 mio (EUR 706.3 mio), valuing
the Guarani company at USD 2.01 bio.
Petrobras will make the payment in three stages in the
hope that this will increase the firm‟s growth in the
ethanol industry, as well as boost Guarani‟s investments
into bio-fuels R&D. In stage one USD 393 mio will be
invested in Guarani‟s subsidiary Cruz Alta
Participações and Tereos will supply its sugarcane from
the Indian Ocean and starch assets from Europe.
Within the next five years Petrobras and Tereos may
have the opportunity to invest further in the company –
USD 527 mio and USD 345 mio respectively, which
may result in Petrobras owning a 49% share by the year
2015. (biofuels-news.com 4 May 2010)
Akzo in Talks With Buyers for National Starch as M&A Rebounds
Akzo Nobel NV, is in talks to sell National Starch,
resuming a planned disposal of the food additives
business that analysts estimate may fetch as much as
USD 1.7 bio. Several parties have expressed an interest
in acquiring the unit, which generated EUR 865 mio
(USD 1.14 bio) of sales last year, the Amsterdam-based
company said in a statement. Akzo earmarked the
business for disposal when it bought rival paint maker
Imperial Chemical Industries in 2008.
Akzo Nobel expects to reach an agreement inside
12 months as potential buyers have better access to
funding, Chief Financial Officer Keith Nichols said on
a call today. Akzo doesn't have the focus to develop
National Starch, and the renewed talks are coinciding
with improving markets for food additives, Nichols
said. (Continued on next page)
Starch Italics Company Information
April/May 2010 © GIRACT 2010 P a g e 1 8
Akzo in Talks (Contd.)
"A year ago the M&A market was essentially closed,"
Nichols said. "The interest is really a reflection of the
market feeling a little bit more confident." Akzo also
today said first-quarter earnings before interest, taxes,
depreciation and amortization, excluding National
Starch, jumped 38% to EUR 399 mio. Analysts on
average predicted EUR 390 mio, including starch
revenue.
National Starch may fetch as much as EUR 1.3 bio,
according to JPMorgan analyst Neil Tyler. Akzo
inherited the business following its USD 15.9 bio
takeover of ICI, which added the Glidden and Dulux
brands. Possible buyers may include U.S. edible oil
maker Bunge Ltd., Christopher Shanahan, an analyst at
Frost & Sullivan, has said.
Last year, National Starch's profitability came under
pressure from higher corn prices. Still, it generated
Ebitda of EUR 78 mio in 2009 and the business is
improving, Nichols said."There's nothing wrong" with
the National Starch business, the CFO said. "We're not
a food company and we don't have in-house
competencies to run a business with this scale."
(sfgate.com 23 April 2010)
Cerealus Announces Licensing Agreement for Bio-Based Ceregel™, A Next Generation Strength and Retention System
Cerealus Holdings, in collaboration with the University
of Maine, is excited to announce their latest bio-based
technology, “Ceregel™, A Next Generation Strength +
Retention System.” Originally patented by DuPont and
later developed by the UMaine Process Development
Center, Ceregel™ is a smart process proven technology
for paper mills that will enable improved productivity
and lower production costs. (Continued in next column)
Cerealus Announces (Contd.)
Ceregel™ utilizes five patents and involves cooking
cationic polyacrylamides with cationic starch to form
“super” starch molecules, which have improved
retention properties for commercial paper machines.
Ceregel™ benefits and validated effects include
increased strength, increased retention, and higher press
solids. Cerealus has secured exclusive licensing rights
for Ceregel™ from the University of Maine and
recently initiated a full sales and installation campaign.
"Our process improvements will provide paper mills
with various optimization solutions and should enable
mills to save up to USD 14 per t.” Mike Bilodeau,
Director of the Process Development Center at the
University of Maine, went on to say, “This
groundbreaking new low-capital technology gives
paper makers a range of options to improve product
quality, productivity, and lower manufacturing costs.
We believe this technology will soon be considered
“best known practice” in the industry, deployed across
a wide range of paper grades and manufacturing
processes.” (prweb.com 16 April 2010)
Vinachem to build sorbitol plant
Tay Ninh- The Viet Nam National Chemical Group and
the Tay Ninh People's Committee have signed a deal to
build a sorbitol (sugar alcohol) plant with an annual
output of 20 mio t.
This will be the first plant producing biological
products in the south-western province.
It will use starch from cassava, grown by local farmers
on an area of about 30 mio ha. The plant which will
occupy a 6 hectare site in Tan Bien District is expected
to cost USD 22.1 mio. (vietnamnews.vnagency.com.vn
15 May 2010)
Starch Italics Company Information
April/May 2010 © GIRACT 2010 P a g e 1 9
Return to ethanol profits helps ADM top estimates
Archer Daniels Midland's first profits from ethanol
refining for more than a year have helped the
agribusiness giant negotiate a slump in agricultural
services earnings to post results ahead of Wall Street
forecasts. ADM said that its bioproducts unit, which
manufactures crop extracts including corn-based
ethanol and citric acid, had posted a USD 119m
operating profit for the September-to-December
period.
The profit was the unit's first since the summer of
2008, ahead of a year-long losing streak prompted by
the collapse of ethanol prices during which the unit
racked up losses of USD 374m. The improvement
helped ADM limit to 1.9% its decline in group
earnings for the period.
Profits from oilseed processing rose by 10.3% to USD
352m, reflecting stronger crush margins in North
America and the lack of a fertilizer writedown which
dragged results lower a year ago. The company's
earnings of USD 567m, or USD 0.88 a share, were
well received by analysts, who had forecast a
USD 0.72-a-share result. ADM shares closed up
USD 1.47 at USD 31.63 in New
York. (agrimoney.com 2 February 2010)
Gulshan Polyols Board recommends Dividend of INR 1.25 for 2009-10
Gulshan Polyols Ltd has announced that the Board of
Directors of the Company at its meeting held on May
27, 2010, inter alia, has recommended a dividend of
25% (INR 1.25 per equity share) on the Equity Share
Capital of the Company. The stock was trading at
INR 96.45, up by INR 2.7 or 2.88%. The stock hit an
intraday high of INR 96.45 and low of INR 93.The total
traded quantity was 62 compared to 2 week average of
1073. (equitybulls.com 27 May 2010)
Sahyadri Industries Board recommends Final Dividend of INR 3 for 2009-10
Sahyadri Industries Ltd, starch producer, has announced
that the Board of Directors of the Company at its
meeting held on May 29, 2010, inter alia, has
recommended payment of final dividend at INR 3 per
share for the year ended on March 31, 2010, subject to
the approval of shareholders.
The stock closed the day at INR 135.6, up by INR 3.65
or 2.77%. The stock hit an intraday high of INR 137.85
and low of INR 133.10. The total traded quantity was
8 455 compared to 2 week average of 20 655.
(equitybulls.com 30 May 2010)
Tate & Lyle profit dips, promises new focus-Update 2
British sugar refiner and sweetener group Tate & Lyle
Plc promised a shake-up of its business to focus on
speciality food ingredients as the downturn cut annual
profit by 7%, in line with forecasts. But the group gave
a cautious outlook for its key sweetener, starch, ethanol
and sugar products with little sign of a pickup in
demand in its main market of the United States.
The London-based group which makes the Splenda
sweetener posted pretax profits of 229 mio pounds
(USD 330 mio) for the year to end-March largely in
line with a consensus forecast of 226 mio pounds,
according to Thomson Reuters I/B/E/S.
Tate had already warned of lower profits as the
economic downturn had cut the prices of its key
sweeteners and starches while it is struggling to break
even in sugar cane refining under stiff competition from
beet sugar producers. (marketwatch 27 May 2010)
Starch Italics Company Information
April/May 2010 © GIRACT 2010 P a g e 2 0
Anil Products net profit rises 76.53% in the March 2010 quarter
Net profit of Anil Products rose 76.53% to
INR 75.2 mio in the quarter ended March 2010 as
against INR 42.6 mio during the previous quarter ended
March 2009. Sales rose 17.90% to INR 1022.1 mio in
the quarter ended March 2010 as against INR 866.9 mio
during the previous quarter ended March 2009.
For the audited full year, net profit rose 128.14% to
INR 240 mio in the year ended March 2010 as against
INR 105.2 mio during the previous year ended
March 2009. Sales rose 35.38% to INR 3741.0 mio in
the year ended March 2010 as against INR 2763.3 mio
during the previous year ended March 2009.
The company has announced the revised financial
results for the quarter and year ended March 2010 on 19
May 2010. (indiainfoline.com 18 May 2010)
Particulars Quarter Ended Year Ended
Mar.
2010
Mar.
2009
%
Var.
Mar.
2010
Mar.
2009
%
Var.
Sales 102.21 86.69 18 374.10 276.33 35
OPM % 18.05 12.34 46 13.89 9.90 40
PBDT 12.69 8.55 48 36.50 19.67 86
PBT 11.33 7.23 57 31.31 15.44 103
NP 7.52 4.26 77 24.00 10.52 128
Tate & Lyle profit down 77% after mothballing Iowa plant
London (MarketWatch) -- U.K. sugar producer Tate &
Lyle said Thursday said it's scrapped plans for a new
milling plant in Iowa and taken a charge of
217 mio pounds (USD 314 mio) on the project, which
was hit by poor ethanol markets and rising costs.
(Continued in next column)
Tate & Lyle profit (Contd.)
The decision, which also came as the group set out a
new strategy to shift its focus away from sugar towards
higher margin food ingredients, resulted in a 77% drop
in fiscal-year net profit to GBP 15 mio.
The corn milling plant in Fort Dodge, Iowa, would have
produced 100 mio gallons of ethanol and
300 mio pounds of industrial starch a year, but the
company said it is now "highly unlikely" to ever begin
operating. "The continued depressed and volatile
outlook for ethanol, and uncertain conditions in
industrial starch and corn gluten feed markets, do not
provide any basis to complete and commission the
plant," Tate & Lyle said.
The group said the modest decline in U.S. sweetener
demand will be offset by increased demand from
Mexico, but industrial starch margins are expected to
remain at lower levels, while it sees no improvement in
ethanol margins and says sugar profits will be
constrained by tight supplies.
The poor outlook for its products in the U.S. has
prompted the group to conclude that its Fort Dodge
corn plant in Iowa is highly unlikely to start up in the
foreseeable future and it has taken a 217 mio pounds
exceptional write-off charge. Around two-thirds of
Tate's profits come from supplying sweeteners, starches
and ethanol-where profits have been hit by lower
demand-with the rest coming largely from its sugar and
sucralose sweetener units. (forexyard.com 27 May
2010)
Dwayne Wilson Elected to Corn Products International, Inc., Board of Directors
Corn Products International is one of the world's largest
corn refiners and a major supplier of high-quality food
ingredients and industrial products derived from the wet
milling and processing of corn and other starch-based
materials. (Continued on next page)
Starch Italics Company Information
April/May 2010 © GIRACT 2010 P a g e 2 1
Dwayne Wilson (Contd.)
The Company, headquartered in Westchester, Ill., is a
leading worldwide producer of dextrose and a major
regional producer of starches, sweeteners and other
ingredients. In 2009, Corn Products International
reported net sales of USD 3.67 bio, with operations in
13 countries at 28 plants, including wholly owned
businesses, affiliates and alliances
Mr. Wilson is Group Executive of Fluor Corporation,
one of the world's largest publicly owned engineering,
procurement, construction, maintenance and project
management companies, headquartered in Irving,
Texas. Prior to assuming this role in 2007, Mr. Wilson
served as Group Senior Vice President and General
Manager of Fluor's Mining and Metals Group, a
position that he assumed in 2004.
He has also served Fluor as President, Mining &
Minerals; President, Commercial and Industrial
Institutional; Vice President & Executive Director,
offices of the Chairman and Chief Operating Officer;
and in a variety of positions of increasing responsibility
from 1980 to 2001. (pr-inside.com 19 May 2010)
le profit dips, promises new focus-[ATE 2
E.T. Horn and Roquette Enter Into New Distribution Agreement
The E.T. Horn Company, a leading distributor, supplier,
marketer, and manufacturer of specialty chemicals and
ingredients announced today that it has entered into a
new agreement to represent Roquette products in the
western United States. The company will focus on
distribution within the nutraceuticals, cosmetics, and
personal care industries.
With headquarters in France, Roquette transforms
renewable resources - corn, wheat, potatoes, and peas -
into an extensive line of high quality ingredients for a
wide range of food and non-food industries throughout
the world.
(Continued in next column)
E.T. Horn (Contd.)
E.T. Horn will be distributing powdered, granular, and
liquid polyols. These branded ingredients find a variety
of applications as humectants and emollients in
cosmetic and personal care, and as low-calorie, sugar-
free sweeteners and tablet fillers in a variety of
nutraceutical products.
Asis Jain, Pharmaceutical and Nutraceutical Business
Unit Manager for Roquette, offered his view of the new
partnership with E. T. Horn. “We are pleased and
impressed with E.T. Horn‟s in-depth knowledge of the
industry and wealth of customer contacts.
The entire organization is confident that their front-line
representation of Roquette will further our market
penetration and brand awareness in the western US,” he
concluded. (finance.com 18 May 2010)
International patent quarrel with Biotec shows no signs of letting up
A Europe-wide patent dispute between Novamont and
Biotec Biologische Naturverpackungen concerning
biologically degradable materials has entered its next
round. Novamont told PIE that it intends to appeal a 16
April 2010 Paris court ruling in the case.
The legal dispute centres on three Novamont patents for
reinforcing blends of the first Mater-Bi generation. The
Paris-based Tribunal de Grande Instance confirmed the
legal validity of two patents (EP0327505 and
EP0947559), but declared the third (EP0937120) to be
invalid. The ruling also stipulated that the Italian
company pay EUR 50 000 each to Biotec and SPhere –
one of Biotec‟s holding companies.
Biotec says it has won the legal quarrel, which has been
raging since 2007. A company press release asserts that
the judges categorically dismissed Novamont‟s lawsuit
alleging patent abuse – a decision, Biotec says, that will
influence the ongoing patent dispute. A related lawsuit
is currently being heard in Italy.
(Continued on next page)
Starch Italics Company Information
April/May 2010 © GIRACT 2010 P a g e 2 2
International patent (Contd.)
One of the three Novamont patents in force (EP032755)
had meanwhile expired, Biotec added, and was declared
inadmissible by the German Federal Patent Court.
According to Novamont, the Paris court in fact
confirmed the legal validity of two patents and was
unable to prove a patent violation in the third case since
production samples of the accused company had not
been examined by a court-ordered expert appraisal.
Stefano Fracco, director of Novamont‟s product
development, says the court ruling is a stalemate. While
the court failed to prove that patents had been violated,
it also did not prove that they had not. Biotec director
Uwe Beythin dismisses such claims.
“We did not violate any patents,” he says, adding that
his company had its own research and development
efforts and was exploring entirely different avenues.
One example: While Novamont uses corn starch and
plasticisers in its products, Biotec prefers using potato
starch without any plasticisers. (plasteurope.com 20
May 2010)
English Indian Clays opts stock-split, up 14%
India-based clay products and starch maker, English
Indian Clays Ltd (BOM:526560) zoomed on the
Bombay Stock Exchange (BSE) in the morning trades
on Wednesday after the company board approved sub-
division of one equity share of INR 10 each into five
equity shares of INR 2 each. The company stocks
jumped by 14% on the BSE striking 52-weeks high, in
the morning session on Wednesday. The company
approved issue of bonus shares of INR 2 each in the
ratio of five shares for every four shares of INR 2 each
fully paid up.
The board of directors of the company also
recommended a final dividend of 50% or INR 5 per
share for the year ended March 31, 2010. (Continued in
next column)
English Indian Clays (Contd.)
English Indian Clays' net profit jumped 117.67% to
INR 65.3 mio on 30.53% increase in net sales to
INR 885.1 mio in Q4 March 2010 over Q4 March 2009.
Net profit surged 54.63% to INR 294.1 mio on 19.46%
rise in net sales to 3364.5 mio in the year ended March
2010 over the year ended March 2009.
The small-cap stock had outperformed the market over
the past one month till 18 May 2010, rising 5.85% as
compared to the Sensex's 4.07% decline. It had also
outperformed the market in the past one quarter, rising
22.29% as compared to the Sensex's return of 3.36%.
English Indian Clay operates in two segments, clay
products and starch products. Clay Products segment
manufactures and supplies the clay products to various
industries, such as paper, paint, rubber and fiberglass,
while starch products segment comprising
starches/specialty starches, syrups and modified
starches, supplies the starch products to various
industries, such as paper, textile, food and pharma.
(commodityonline.com 19 May 2010)
Anil Products Q4 net profit at INR 75.2mn
Anil Products Limited (APL), the flagship company of
food and bio-industrial focused Anil Group, has
announced a higher profit of INR 239.9mn for the
financial year March 31, 2010, a 128.02% increase over
INR 105.2mn registered for last fiscal.
Total sales and income from operations rose to
INR 3.74bn from INR 2.76bn in the previous year.
EBIDTA for the financial year 2009-10 shot up 74.29%
to INR 524.3mn against INR 300.8mn in 2008-09.
APL‟s EBIDTA margin (EBIDTA/Sales) was higher at
14.02% against 10.89% for the previous fiscal. The
Board of Directors has recommended a final dividend
of Rs1.25 per equity share for the year ended
March 31, 2010. (Continued on next page)
Starch Italics Company Information
April/May 2010 © GIRACT 2010 P a g e 2 3
Anil Products Q4 (Contd.)
For the quarter ending March 31, 2010, APL registered
a higher sales of INR 1.02bn, an increase of 65.1%
against INR 619mn in the previous year. The company
closed the quarter with Profit Before Tax (PBT)
standing at INR 113.3mn against INR 51.6mn recorded
in the corresponding period of last fiscal. Profit for the
quarter stood at INR 75.2mn against INR 28.9mn in
previous fiscal.
Speaking on the results, Mr. Amol Sheth, Managing
Director of APL said, “Anil‟s focus on moving up the
value ladder has begun to show up in the financial
performance. The growth in profits and higher EBIDTA
have been achieved through higher contribution of
value added products and better operational
efficiencies. APL is committed to leverage the
opportunities in the bio-industrial and food space.
We are aggressively strengthening our R&D
infrastructure and building partnerships with research
institutes to create a pipeline of innovative value added
products.”
During the 2009-10, Anil Products introduced several
new value added products for its customers across
Food, Textile, Paper, Pharma and Feed industry.
The Company has expanded the manufacturing capacity
for modified and specialty starches to meet the growing
demand for its innovative modified starches. APL‟s
revenues for Value Added Paper starches increased by
64%, Value Added Textile starches grew by 79% and
Food, Pharma and Feed business grew by 51% in value.
The Company exports registered a significant increase
to reach Rs270mn during the year. Anil Products
launched its products in many new countries in Middle
East and Africa. (indiainfoline.com 18 May 2010)
French firm eyes 36% more in Riddhi Siddhi
France‟s Roquette Freres is in advanced talks to buy
Riddhi Siddhi Gluco Biols, India‟s largest starch and
starch derivatives maker, in a deal that will significantly
amplify its presence in a fledgling, but growing market.
The 77-year-old French company is looking to raise its
stake to 51% from 14.93% in Gujarat-based Riddhi,
which has a 25% share in the country‟s starch and
starch derivatives market, two persons close to the
development told ET.
“Both parties have signed a non-disclosure agreement
and are in the process of giving a final shape to the
deal,” said one person who is privy to the talks.
Roquette‟s interest in Riddhi also stems from the Indian
company‟s three production units in Karnataka,
Uttranchal and Gujarat as well as exports to more than
25 countries. Ridhi director R Sathyamurthi said: “We
do not comment on speculation.” Executives of
Roquette Freres could not be reached for comment.
Roquette is likely to pay nearly INR 1500 mio for the
36% stake, a premium of up to 30% over the current
market price, said the second person who is close to the
Indian company. Roquette will then have to launch an
open offer to buy 20% more in Riddi, which may cost
another INR 75 mio, he said.
Riddhi shares closed at INR 264.90 on the Bombay
Stock Exchange last Friday. The e2.5-bio Lestrem-
based company employs more than 6 000 people and
has production facilities in Europe, the US and Asia.
The company sells its products in more than 100
countries, backed by its global network of subsidiaries
and agents. Riddhi Siddhi, which was established a
decade ago, has more than 1 600 employees. The
company posted a net profit of INR 270 mio on
revenues of INR 5150 mio for the nine months to end
December. (economictimes.com 17 May 2010)
Starch Italics Company Information
April/May 2010 © GIRACT 2010 P a g e 2 4
AGRANA Operating Profit More than Doubled in 2009-10
The 2009-10 financial year (ended 28 February 2010)
of AGRANA, the sugar, starch and fruit group, was
marked by a combination of volume growth and lower
sales prices. As the increase of 16.7% in sales volume
from the prior year could not fully make up for the
price effect, Group revenue in 2009 to 10 eased slightly
by 1.8% to EUR 1.99 bio (prior year: EUR 2.03 bio).
The largest revenue contribution was generated by the
Fruit segment, at about 41%, followed by Sugar at
approximately 34% and Starch at about 25%, broadly in
line with the proportions of the previous year.
Group operating profit before exceptional items more
than doubled from EUR 37.8 mio in the prior year to
EUR 91.9 mio, driven above all by stabilised earnings
in fruit juice concentrates, the direction in raw material
markets and a satisfactory trend in the profitability of
the Starch segment.
In the Sugar segment, total sales volume rose while
revenue eased by 2.6% to EUR 684.1 mio (prior year:
EUR 702.5 mio). Against the backdrop of the EU sugar
regime, after having surrendered quota, AGRANA
registered a decrease in quota sugar sales as budgeted
coupled with lower sales prices. The sales quantities of
non-quota sugar grew thanks to a good crop and the
development of new export markets.
The Sugar segment generated an operating profit of
EUR 15.2 mio before exceptional items (prior year:
EUR 15.8 mio). With the EU sugar market reform
concluded, AGRANA is clearly well-positioned
strategically, particularly as many Eastern European
countries where AGRANA holds important market
positions became net importers.
Although higher volumes of starch products were sold,
revenue eased just under 4% to EUR 499.2 mio (prior
year: EUR 519.4 mio) as a result of the adjustment of
sales prices to reflect raw material costs.
(Continued in next column)
AGRANA Operating (Contd.)
Revenue in the bio-ethanol business expanded as lower
ethanol prices were more than offset by the full
utilisation of the bio-ethanol plants in Austria and
Hungary and by sales of the main co-product, ActiProt,
a high-protein feed.
Starch segment operating profit before exceptional
items increased to EUR 41.1 mio (prior year: EUR
27.5 mio), reflecting improved margins and the
earnings contribution from the bio-ethanol activities,
which have passed the establishment stage and are now
profitable. (foodingredientsfirst.com 10 May 2010)
Major Carbon Capture and Storage Project Advancing at ADM
Archer Daniels Midland Company (NYSE: ADM) and
its research collaborators today marked a milestone in
one of the nation‟s first large-scale projects intended to
confirm that carbon dioxide emissions can be stored
permanently in deep underground rock formations. The
project may also help determine whether geologic
carbon sequestration can further improve the
environmental footprint of alternative fuels such as
ethanol by capturing and storing carbon emissions
associated with their production.
In February 2009, Schlumberger Carbon Services
began drilling the approximately 8 000-foot-deep
injection well at the 207-acre project site near ADM‟s
corn wet mill in Decatur, Ill., which produces starch for
fuel ethanol and a number of other products. Once the
injection well is completed, a carbon dioxide
dehydration/compression facility will be constructed
near the corn wet mill and a 3 200-foot-long pipeline
will also be constructed to transport carbon dioxide to
the well.
Beginning in early 2010, carbon dioxide emitted during
the ethanol fermentation process at the corn wet mill
will be injected into the Mount Simon Sandstone, a
large, saline water-bearing rock formation, at a rate of
1 mio t per day. (ethiopianreview.com 4 May 2010)
Starch Italics Company Information
April/May 2010 © GIRACT 2010 P a g e 2 5
MGPI, ALLT, DUSA, NCOC, MEMS, NURO Expected To Be Lower After Earnings Releases on Tuesday
MGP Ingredients, Inc. (NASDAQ: MGPI) produces
ingredients and distillery products in the United States.
It processes wheat flour and corn into various products
through an integrated production process. The Distillery
Products segment offers food grade alcohol; fuel grade
alcohol, commonly known as ethanol; and distillers
feed and carbon dioxide, which are co-products of the
company distillery operations. The Other segment
products comprise resins, and plant-based polymers and
composites.
This technology is designed to help the stock trader
identify those companies that seem to have a consistent
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(tmcnet.com 10 May 2010)
Tongaat to increase sugar production by 25%
Tongaat Hulett lifted profit from operations by 28% to
R1.6 bio in the 15 months to March and is looking to
lift its sugar production by up to 25% in the coming
year. The company changed its financial year-end to
correspond with the sugar season. The financial results
reported on Friday are for the 15 months to March and
include the revenue of a single sugar milling season and
the increased value of the crop. Tongaat chief executive
Peter Staude said at the weekend that the business was
driving to increase sugar production from 957 mio t
milled in the 2009 to 10 season to 1.9 mio t a year in
the next three years. "The biggest increase is likely to
come from Mozambique, where we predict we will go
from 133 mio t to 250 mio t per year," he said.
(Continued in next column)
Tongaat to increase (Contd.)
Profit from sugar operations in Zimbabwe was
R576 mio, as relevant economic fundamentals were
reintroduced into the local economy and the business.
Mozambican profits from operations fell from R301m
to R192m as a result of currency gains in the previous
year.
"Zimbabwe can produce up to 600 mio t of sugar (a
year), but is currently producing less than half of that. I
expected Tongaat to ramp up the Zimbabwean
operations much sooner than now," said Abdul Davids,
an equity analyst and head of research at Kagiso Asset
Management. He said the group's South African
operation was currently only producing at 70% of its
capacity and that it could easily produce 1 mio t per
year.
John Thompson, an equity analyst from Investec, said
Tongaat's expansion into Mozambique would help the
company reach its targets, but that its existing assets in
South Africa would likely contribute more. "In South
Africa, they have to incentivise growers in their areas.
In doing so, the risk is passed on to the farmer but if
they incentivise more growers, they could effectively
double their sugar output within the next year," he said. Headline earnings grew by 37% to R858m in the
review period. Starch and glucose volumes declined by
5% in the review period.
"Lower demand was experienced in the alcoholic
beverage, paper, coffee creamer and confectionery
sectors, with the contraction of consumer spending,"
Staude said. The South African sugar milling, refining
and agriculture operations contributed R158m to profit
for the review period as a result of higher local and
export sale realisations. Sugar production decreased to
564 mio t from 644 mio t in the previous season.
"Almost all the group's sugar production was sold in the
local market," Staude said. On Friday, Tongaat's shares
closed 0.4% lower at R97. (busrep.co.za 31 May 2010)
Starch Italics Company Information
April/May 2010 © GIRACT 2010 P a g e 2 6
USDA Taking Applications For Renewable Energy Funding
Agriculture Secretary Tom Vilsack today announced
that USDA is seeking applications to increase the
production and use of renewable energy sources.
Funding is available from four USDA Rural
Development renewable energy programs authorized by
the Food, Conservation, and Energy Act of 2008 (Farm
Bill).
"This funding will help spur investments in
technologies that will reduce reliance on fossil fuels,
conserve natural resources and help build a sustained
renewable energy industry in rural America," Vilsack
said.
USDA is accepting applications for grants and loan
guarantees in the Rural Energy for America Program
(REAP) until June 30, 2010. More information on how
to apply for funding is available in the April 26, 2010
Federal Register.
The Rural Energy for America Program provides funds
to agricultural producers and rural small businesses to
purchase and install renewable energy systems and
make energy efficiency improvements. Eligible projects
include installing renewable energy systems such as
wind turbines, solar, geothermal, biomass, anaerobic
digesters, hydroelectric, and ocean or hydrogen
systems. Funding may also be used to purchase energy-
efficient equipment, add insulation, and improve
heating and cooling systems. In fiscal year 2009, this
program helped fund 1 485 REAP projects in 50 states,
the commonwealth of Puerto Rico and the Western
Pacific Islands.
In addition to the REAP program, Secretary Vilsack
announced that USDA is also planning to accept
applications for three other renewable energy programs:
the Bio-refinery Assistance Program, Repowering
Assistance Program and the Bio-energy Program for
Advanced Bio-fuels.
(Continued in next column)
USDA Taking Applications (Contd.)
Details on how to apply will be released later this week
in the Federal Register. USDA's Bio-refinery
Assistance Program provides guaranteed loans to
develop and construct commercial-scale bio-refineries
or to retrofit existing facilities using eligible technology
for the development of advanced bio-fuels.
The Repowering Assistance Program is designed to
encourage the use of renewable biomass as a
replacement fuel source for fossil fuels used to provide
process heat or power in the operation of eligible bio-
refineries (those bio-refineries in existence on June 18,
2008- the date the 2008 Farm Bill was enacted).
The Bio-energy Program for Advanced Bio-fuels works
to support and ensure expanding production of
advanced bio-fuels by providing payments to eligible
advanced bio-fuels producers. Advanced bio-fuels are
derived from renewable biomass, other than corn kernel
starch. These include cellulose, sugar and starch, crop
residue, vegetative waste material, animal waste, food
and yard waste, vegetable oil, animal fat, and biogas
(foodmanufacturing.com 5 May 2010)
ATCO Midstream, Grow-Gen To Develop Integrated Bio-refinery In Canada
ATCO Midstream and Grow-Gen Energy have signed
an initial partnership agreement to develop an
integrated bio-refinery in Canada. The refinery will use
organic wastes and high-starch wheat to create green
electricity, bio-fertilizer and fuel ethanol.
The project involves the expansion of an existing
biogas-to-electricity facility east of Edmonton, near
Vegreville, Alberta. The plant currently uses manure
from Highland Feeders to create biogas and green
power. The resulting green energy will be used to fuel a
new ethanol production system. The ethanol will be
derived from locally grown high-starch wheat.
(Continued on next page)
Starch Italics Company Information Others
April/May 2010 © GIRACT 2010 P a g e 2 7
ATCO Midstream (Contd.)
Under the terms of the agreement, ATCO Midstream
will operate the bio-refinery and be a part-owner.
Grow-Gen Energy of Hairy Hill, Alberta, will be the
other owner, along with several investors including a
farmer-owned grain procurement partner, Providence
Grain Group of Fort Saskatchewan. Shane Chrapko,
CEO of Grow-Gen Energy, said:
"This project greens Alberta's energy basket using our
own home-grown, globally patented technology. By
linking efficient food production with the growing
demand for renewable energy, we are taking a major
step forward in improving the sustainability of two key
industries in the province."
According to the companies, the entire process is
virtually waste-free. The residual grains that remain
after the ethanol is made will be fed to cattle at a nearby
feedlot, while bio-fertilizer, a byproduct of the biogas
production, is sold to local farmers and oil and gas
drilling companies for soil enhancement and
remediation. The completed bio-refinery is expected to
generate 40 mio l of fuel ethanol, 10 kt of premium bio-
fertilizer and 2.5MW of green electricity each year.
Operations are scheduled to commence in mid-
2012. (biofuel.energy-businessreview.com 5 May 2010)
Amflora potatoes planted in Germany
On a 15-hectare field in Zepkow, Germany (county
Mueritz in the state of Mecklenburg-Lower Pomerania),
genetically modified (GM) Amflora potatoes were
planted on 19 April 2010. Gene-technology opponents
have called upon the Federal Minister for Agriculture,
Ilse Aigner (CSU), to prohibit the cultivation of this
potato in Germany.
The EU Commission issued approval at the beginning
for March for the cultivation of the Amflora potato,
which provides starch for industrial purposes.
(Continued in next column)
Amflora potatoes (Contd.)
Since then, the field in Zepkow is the sole area in
Germany upon which genetically modified crops have
been planted in 2010.
Gene-technology opponents also have concentrated
their protest on the Amflora field. After the blockage by
Greenpeace activists of a storehouse containing seed
potatoes at the company farm in question, planting was
carried out under police protection. As stated by a
spokesperson for BASF Plant Science, the field is now
secured by guard personnel.
In the approval decision, the EU Commission
determined that no conventional potatoes may be
planted on an Amflora field in the following year.
Furthermore, Amflora fields must be checked for
„secondary growth‟, i.e. for leftover potatoes from the
previous year. BASF is obliged to provide Amflora
only to specified manufacturers who agree contractually
to the spatial separation of Amflora production from
that of conventional potatoes. This separation applies
from the storage of seed potatoes to the industrial
processing of their starch.
Since 2008 in Germany, an additional regulation has
been in effect that establishes general rules to guarantee
the „co-existence‟ of agricultural systems „with…‟ and
„without gene technology‟. Since then, additional,
special rules have become applicable to maize. To date,
such rules do not exist for potatoes. (gmo-compass.org
22 April 2010)
April/May 2010 © GIRACT 2010 P a g e 2 8
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