Starch Italics 9th Edition

GIRACT

Starch Industry Overview

February/March 2011

Starch Italics

www.giract.com

Starch Italics


Feb/Mar 2011

TABLE OF CONTENTS

June/July 2010 © GIRACT 2010

Crops and grains

p.1 Corn: Buying Opportunity Ahead

p.2 Corn reaches 2 1/2 year high on supply

fears

Overfertilizing corn undermines ethanol

p.3 Farmers harvest 56kt of corn residue for

POET Emmetsburg cellulosic ethanol

project

p.4 Ethanol Corn Approved

p.5 Huge demand for corn boosting food

Starch and derivatives

p.5 Readers misinformed regarding high-

fructose corn

p.6 Archer Daniels Midland: Corn Sweetener

Prices to Jump 25%; Strong Mexico

Demand

Govt releases 18.39 lakh t sugar for

Feb'11- India

p.7 Exclusive - Sugar-squeezed Brazil buys

US ethanol

Company News

p.8 Strong ethanol performance part of

ADM's profitable Q2

Corn price, delays, operational issues

contribute to bankruptcy

p.9 Cargill to build new Brazilian corn

processing plant for starches and

sweeteners

p.10 Cargill purchases Tate & Lyle plant

Global Sweeteners‘ revenue and gross

profit surged by 25.7% and 23.1% driven

by increased product price

Bio-fuels

p.12 Nebraska's first ethanol plant reaches

milestone

Bio-fuels (Contd)

p.12 Microbiologists aim to optimize bio

ethanol production

p.13 Limiting Ethanol Production

Storms, seasonal demand impact ethanol

markets

p.14 South Korean firm plans to invest USD

300 mio for ethanol plant

p.15 Tata to invest USD 15 mio in

Mozambique sugarcane ethanol project

Ethanol fueling trip to Denmark

p.16 Brazil Cosan Sees USD 2 bio Synergies

Generated By Raizen Ethanol Venture

Export of molasses, ethanol to fetch

higher income

p.17 Petrobras To Double Biofuels Production

With Eye On Global Shipments

p18 Bug Creates Butanol Direct from

Cellulose

p.19 Zein technology to go commercial at

Illinois ethanol plant

p.20 World starves as Americans burn food to

stay on the road

Corn-based fuel still a target on national

stage

Bioplastics

p.21 Biodegradable plastics growth linked to

composting infrastructure

p.23 New Technology Allows Maine

Organization to Create a New Material

p.24 PHA and bio-derived PE to drive

bioplastic packaging market to 2020:

study

p.25 It‘s Easy Being Green: Bioplastic-tastic

p.26 Coca Cola, DuPont, Kellogg's and Others

Establish a Trade Organization for

Sustainable Packaging

(Table of Contents continued on next page)

Starch Italics


Feb/Mar 2011

TABLE OF CONTENTS

June/July 2010 © GIRACT 2010

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

GIRACT Global Starch and Starch Derivatives study

Giract has just published new multi-

client research into global starch

supply, examining in particular the

impact of the recent economic

downturn on the industry. Details on

the following page.

Regional Language News

China

p.27 The duty-paid price of U.S. corn to China

port rose slightly from 10th Feb

p.28 Corn prices rose in Jiangsu market last

week

p.29 February 24 corn early assessment: Focus

on supply worries the U.S. corn closed

higher rebound

p.30 Global corn prices rising highly and

Chinese increasing imports of Australian

feed distilled grains sharply

Russia

p.31 Production of starch in Belarus in

January-June increased by 35,8%,

products from potatoes - by 1.8%

p.32 Sheikh invests in ethanol plant

Europe

p.32 Nuplas begins construction of a plant to

produce bioplastics for packaging

p.33 Quotas on exports of maize will be

distributed at the auction

South Africa

p.33 South Africa: estimates of corn production

down

Vietnam

p.33 Floor price of rice exports increased 2.1%

to USD 490 per t

p.34 China demand boosts cassava price

https://twitter.com/starchitalics

GIRACT

Starches and Derivatives Impact of the economic downturn Global Production and Supply 2009/10 – 2015

INTRODUCTION The starch industry is one of the world’s largest transformers of agricultural raw material, producing 73 million tons (expressed as primary starch with 12% moisture). For 30 years the starch industry has posted a remarkable average 4% annual growth and shown great flexibility to adapt to changes and opportunities, from raw material sources and changing trade regulations to new production technologies and end-use sector dynamics.

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 several end-uses

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.

Thus, the traditional patterns in starch production and demand have changed dramatically and so did the competitive landscape. The dominant position of Western players and markets is being eroded, both in terms of product portfolios and players and China has emerged as the largest country for supply and demand of starch. Cost-effectiveness and clean labelling have been driving changes in demand.

As these new patterns are emerging, it is the right time for every player and end-user in this field to take stock of new opportunities and threats before making any strategic decisions. This report provides the necessary comprehensive picture of actual global starch production and trade, by product and area, and explores which key factors are likely to influence the future to 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, published in autumn 2010, takes into account the various changes that have occurred across the world in the last few years, and thus acts as an important tool in your strategic planning.

OBJECTIVES • 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

PRODUCTS 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)

MARKETS Global

TIMESCALE 2009/10 and 2015

REPORT Published September 2010

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Feb/Mar 2011 www.giract.com Page | 1

Starch Italics Starch Industry Overview

Corn: Buying Opportunity Ahead

Corn prices continued their rally early this week,

as the grain traded at its highest level since July

2008 on Tuesday. The new high did not hold

long, though. Corn and all grains turned south

after the turmoil in the Middle East escalated. The

rise to a multiyear high can be attributed to

several factors, including inclement weather and

increased demand overseas.

In early February, the U.S. Department of

Agriculture (USDA) reported that at the end of

August 2011, when the harvest season begins, the

corn reserve will stand at 675 mio bushels—the

lowest surplus level in 15 years.

The news of low supply of corn in the U.S. sent

corn futures above USD per bushel, double the

price the grain hit six months earlier. The all-time

high on corn is USD 7.65 per bushel, struck back

in 2008 during the global top for most

commodities.

Ethanol Supports Prices

Adding to the demand dynamic are federal

mandates putting pressure on companies in the

United States to use more ethanol. Unlike Brazil,

which uses primarily sugar cane for its ethanol

production, U.S. producers create domestic

ethanol using corn.

(Continued in next column)

Corn: Buying Opportunity Ahead (Contd) As of the end of 2010, 40% of the corn supply in

the U.S. was going toward ethanol production.

And considering that the U.S. is responsible for

over half of all corn exports, it resulted in less

corn available for other countries around the

globe.

Until the government gets its hands out of the

ethanol subsidy business, oil companies will

continue to have incentives to use the biofuel—

and thus high demand for corn will remain.

In December, the government extended the

ethanol subsidies for at least one more year, and it

does not appear it will end anytime soon. So it is

expected that the corn prices will have a floor

underneath them in the coming year.

Investing In Corn

Still, even though corn took a hit this week, the

overall setup for the remainder of 2011 looks

positive, and pullbacks could be viewed as buying

opportunities. Take the Teucrium Corn ETF

(NYSE Arca: CORN), a pure-play corn fund that

holds seasonally advantaged futures contracts

across the curve.

CORN fell 6% on Tuesday, and is in danger of

dropping more in the short term as investors take

profits. Another 5 to 10% pullback in CORN will

put it in the USD 38/share area.

The iPath Dow Jones Grains ETN (NYSE Arca:

JJG), whose index is weighted in corn (37%),

soybeans (39%) and wheat (24%), also fell 6% on

Tuesday. The ETN is now 9% off its high set

earlier in the month. (hardassetsinvestor.com 25

February 2011)

Crops and grains



Corn reaches 2 1/2 year high on supply fears Supply concerns showed U.S. corn futures to

highs not seen since mid-2008 Tuesday.

Nearby corn for March delivery rose 4 3/4 cents,

or 0.7%, to USD 7.27 1/4 a bushel at the Chicago

Board of Trade, the highest close for a

front-month contract since July 3, 2008. Corn for

May delivery was the most-active contract since it

gained 4 1/2 cents, or 0.6%, to USD 7.35 1/2.

Futures could continue rising as users of the grain

remain worried about supplies, which are

projected to come in at a 15-year low at the end of

the crop's marketing year on August 31, analysts

said. Prices have rallied recently in an attempt to

curb strong demand and entice farmers to expand

plantings to replenish inventories.

Farmers are expected to increase corn plantings

4.3% to 92 mio acres this spring due to high

prices, according to an estimate issued last week

at the U.S. Department of Agriculture's annual

outlook conference. Yet poor weather could derail

attempts to harvest a large crop next fall.

"With the tightness of the supply/usage sheet for

this year, we could probably see some higher

prices into June and July," said Sean McGillivray,

Vice President of Great Pacific Trading Co., a

commodities brokerage firm in Oregon.

Futures felt additional support from rallying crude

oil prices, as ethanol is made from corn, and from

fund buying at the beginning of the month, traders

said. Commodity funds bought an estimated 5 000

contracts in light trading, a modest amount, after

selling contracts in early dealings. "It looks like

corn, especially with crude activity like it is,

should be really well supported until we get a

major change in acres or crude oil prices," said

Brian Hoops, President of Midwest Market

Solutions.


Corn reaches 2 1/2 year high on supply fears (Contd)

The USDA will issue its next update on plantings

March 31. In other markets, ethanol futures closed

at a 31-month high. Ethanol for May delivery rose

1.6 cents, or 0.6%, to USD 2.582 per gallon at the

CBOT. Oat futures advanced as the market

continued to recover from a fall to a nearly

12-week low last week. Oats for May delivery

jumped 8 1/2 cents, or 2.2%, to USD 3.89, 1/2 a

bushel. (agriculture.com 1 March 2011)

Overfertilizing corn undermines ethanol

When growing corn crops for ethanol, more

means less. A team of researchers from Michigan

State University and Rice University shows how

farmers can save money on fertilizer while they

improve their production of feedstock for ethanol

and alleviate damage to the environment.

The research has implications for an industry that

has grown dramatically in recent years to satisfy

America's need for energy while trying to cut the

nation's reliance on fossil fuels, according to

Sieglinde Snapp, a crop and soil scientist at

MSU‘s Kellogg Biological Station. ―In an era of

increasing reliance on corn production for food

and fuel, it is important to quantify the full impact

of corn nitrogen management on the environment

and on the crop biochemistry,‖ she said.

(Continued on next page)

Crops and grains



Overfertilizing corn undermines ethanol (Contd)

The team discovered that corn grain, one source

of ethanol, and the stalks and leaves, the source of

cellulosic ethanol, respond differently to nitrogen

fertilization.

The researchers found that liberal use of nitrogen

fertilizer to maximize grain yields from corn

crops results in only marginally more usable

cellulose from leaves and stems. And when the

grain is used for food and the cellulose is

processed for biofuel, pumping up the rate of

nitrogen fertilization actually makes it more

difficult to extract ethanol from corn leaves and

stems.

This happens, they discovered, because surplus

nitrogen fertilizer speeds up the biochemical

pathway that produces lignin, a molecule that

must be removed before cellulosic ethanol can be

produced from corn stems and leaves.

The findings are an important next step in

building a sustainable biofuel economy. While

farmers have a clear incentive to maximize grain

yields, the research shows a path to even greater

benefits when corn residues are harvested for

cellulosic ethanol production.

Overfertilization also increases the

decomposability of corn residue plowed back into

the fields. This implies that soil carbon storage

becomes less efficient – another minus for the

environment because storing additional carbon in

soil can reduce the atmospheric concentration of

carbon dioxide and help crops access soil water.

The research was supported in part by the

National Science Foundation and MSU‘s

AgBioResearch. (news.msu.edu 28 February

2011)

Farmers harvest 56kt of corn residue for POET Emmetsburg cellulosic ethanol project

Farmers are now delivering biomass bales to

POET's 22-acre storage site in Emmetsburg, Iowa,

the future home of the 25 mio-gallon-per-year

cellulosic ethanol plant dubbed "Project Liberty."

Area farmers harvested 56kt of corn cobs, leaves,

husks and some stalk this fall but had been

waiting to deliver the biomass to POET while

guidelines for the U.S. Department of

Agriculture's Biomass Crop Assistance Program

(BCAP) were finalized. Farmers on Monday

began completing the application process, and

they started delivering bales soon after.

"While we shared the farmers' frustration with

delays to BCAP, we are happy to see that the

program is being implemented and farmers are

now delivering biomass to POET," Project

Liberty Director Jim Sturdevant said. "I know

they are eager to deliver their bales, just as we are

eager to validate our receiving and handling

procedures at the new biomass stackyard.

"BCAP is important to helping these first farmers

get the new biomass market off the ground.

BCAP's inclusion in the next Farm Bill is an

important part of continuing to develop this

market."BCAP is a USDA program that provides

matching funds of up to USD 45 per t to an

individual farmer for a maximum two years. It is

meant to offset startup costs for developing the

feedstock market for cellulosic ethanol and other

alternative energy endeavors.

Bales this year will be used primarily to test

procedures for delivery, receiving, quality

assurance, storage and handling at the stackyard.

When operational, Project Liberty will use about

300kt of biomass annually to produce ethanol.

(agrimarketing.com 1 February 2011)

Crops and grains



The Agriculture Department has cleared the way

for farmers to plant corn that is genetically

modified to produce alpha-amylase, an enzyme

that rapidly breaks down starch into sugar. The

February 11 decision—denounced by

environmental groups--marks the first U.S.

approval of a biotech crop designed specifically

for boosting ethanol production. Corn seed with

the amylase trait will be sold by Syngenta under

the name Enogen.

The seed "provides U.S. ethanol producers with a

proven means to generate more gallons of ethanol

from their existing facilities," says Davor Pisk,

Syngenta's Chief Operating Officer.

Syngenta first asked USDA for approval of the

seed in 2005. Since then USDA's Animal & Plant

Health Inspection Service (APHIS) has

conducted both environmental and plant pest risk

assessments. On the basis of those assessments,

APHIS concluded that this line of corn "should

no longer be subject to regulation," says

Michael Gregoire, Deputy Administrator for

APHIS' biotechnology regulatory services.

Grain millers and food manufacturers, however,

are concerned that the amylase trait will escape

from Enogen crops and inevitably comingle with

corn intended for human consumption.


Ethanol Corn Approved (Contd)

Although FDA deemed the amylase trait safe for

use in food in 2007, the groups are worried that it

will affect the quality and shelf-life of processed

foods containing corn.

If the amylase trait enters the food processing

stream, it will damage the quality of breakfast

cereals, snack foods, and battered products, says

the North American Millers' Association, an

industry group.

Industry data show that just one corn kernel with

the trait in 10 000 is enough to affect viscosity in

food processes, according to the Union of

Concerned Scientists (UCS). "Contamination

could cause corn snack food to be too fluffy to fit

in a standard bag, corn batter to be too thin to

coat corn dogs, and corn bread to be too soggy in

the middle," the group says.

Syngenta plans to work with a limited number of

ethanol plants and corn growers this year, and the

company is preparing for large-scale commercial

planting of Enogen corn in 2012. The company

says it will manage the production of Enogen

corn "using a contracted, closed production

system.

"There is no way to protect food corn crops from

contamination by ethanol corn. Even with the

most stringent precautions, the wind will blow

and standards will slip," stresses

Margaret Mellon, Director of UCS's Food &

Environment Program. That mandate, known as

the Renewable Fuel Standard, requires the

consumption of 36 bio gallons of ethanol by

2022.

Corn ethanol is expected to supply about 15 bio

gallons of that demand, according to FOE

(pubs.acs.org 15 February 2011)

Ethanol Corn Approved

Crops and grains

http://www.usda.gov/wps/portal/usda/usdahome



Huge demand for corn boosting food prices

The cost of corn is rising, and because it's the

hidden ingredient in much of our food –

everything from pop drinks to margarine -- that

means your grocery bills could rise too. The

U.S. Department of Agriculture warns that corn

supplies are at their tightest levels in 15 years.

The situation has been compounded by

government incentives to boost corn-based

ethanol production. Kerry Klassen, a commodities

analyst, says it could take several years for the

U.S. to replenish its stocks.

"If we look at a long-term average price, I think

we're going to be above the five-year average for

the next crop year as well," he said.

Michael Seery, an analyst with Seery Futures,

says world corn prices have also been driven up

because China, with its population of 1.3 bio

people, is stockpiling food staples.

"They keep buying corn," he said. "They're

rationing it; they want it. They're afraid of higher

prices, so even a USD 7 bushel, which is right

now at its all-time high."

Some grocery stores have been told to expect that

food prices could rise up to 10% in the coming

weeks -- all because the world's demand for corn

is exceeding supply.

The impact of corn prices is widespread. Since

corn is used to feed cattle, that means meat prices

are also rising. "Right now, there are record prices

on commodities like corn that will put upward

pressure on prices, but time will tell if this is a

temporary trend or a long-term trend," he said.

The situation has become serious enough that

French President Nicolas Sarkozy wants corn

prices on the agenda for this weekend's G20

summit in Paris. (ctv.ca 14 February 2011)

Readers misinformed regarding high-fructose corn syrup

The Corn Refiners Association petitioned the U.S.

Food and Drug Administration (FDA), asking that

manufacturers have the option of using "corn

sugar" as an alternate ingredient name for

high-fructose corn syrup on product labels,

because "corn sugar" more accurately describes

the composition of the ingredient.

The CRA wants to clear up consumer confusion

about high-fructose corn syrup by requesting that

the FDA give food and beverage manufacturers

approval to call high-fructose corn syrup what it

is: corn sugar.

Consumers want to know what is in their foods

and to have ingredient names that are clearly

understood. "Corn sugar" accomplishes these

objectives succinctly and simply. Most

importantly, the term "corn sugar" enables

consumers to readily identify added sugars in the

diet.

High-fructose corn syrup is made from corn, a

natural grain product. High-fructose corn syrup

contains no artificial or synthetic ingredients or

color additives and meets the U.S. Food and Drug

Administration's requirements for use of the term

"natural."

As many dietitians agree, all sugars should be

consumed in moderation as part of a balanced

lifestyle. (utdailybeacon.com 03 February 2011)

Crops and grains Starch and derivatives



Archer Daniels Midland: Corn Sweetener Prices to Jump 25%; Strong Mexico Demand

Archer Daniel Midland Co. (ADM) has finalized

contracts for corn sweetener shipments in 2011,

and will see prices jump 25%, Chief Financial

Officer Ray Young said. That increase will be

sufficient to raise margins for its corn sweetener

operations, despite the rising cost of corn, Young

said in a conference call. Corn, along with other

agricultural commodities, have soared in recent

months and are at their highest level since

reaching record highs in 2008.

The contracts represent 50 to 60% of its corn

sweetener shipments, the company said. Despite a

well-publicized backlash among some consumers

against high fructose corn syrup in the

United States, demand has remained strong in

Mexico. Young said corn sweetener shipments of

1.5 mio t were up 90% in 2010, and will remain

strong. In some cases, Mexico is importing high

fructose corn syrup and shipping higher-priced

sugar back to the United States.

The company will also continue to benefit from

strong ethanol demand, Young said, although

production margins have slid close to break-even

recently. High sugar prices are making U.S.

ethanol exports attractive, Young said, and

exports will continue to grow in 2011.

ADM reported a 29% jump in second quarter

earnings, due in part to ethanol margins and

favorable corn positions. Soybean prices have

also surged due to tight supplies and surging

China demand, but Young said the outlook for the

South American soybean harvest has improved

recently due to better weather.

The company's stock was recently up 6.76% to

USD 34.88 a share. (automatedtrader.net 01

February 2011)

Govt releases 18.39 lakh t sugar for Feb'11- India

For February 2011, the government has released

18.39 lakh t of sugar for sale through the open

market and ration shops and this is more than

enough to meet the internal demand of sugar for

the month.

The government had released 19.18 lakh t of

sugar for January, 2011. Meanwhile, about

2.16 lakh t of sugar will be used for the supply

through ration shops and 16.23 lakh t will be used

in the open market, out of the total allotment for

February.

Every month, the ministry of food sets the

proportion of sugar that is to be released in the

open market and ration shops. It guides the mills

to sell the complete non-levy quota during the

same month.

Moreover, from February 2009, in order to reduce

the scarcity in the availability of sugar and control

increasing prices, the centre had permitted

duty-free import of raw and refined sugar.

The country has imported 6 mio t of sugar since

2010 while the prices have declined by about 40%

in the past 1 year and are now at INR 30 to 31 per

kg in Delhi retail markets.

Sugar is a term for a class of edible crystalline

carbohydrates, mainly sucrose, lactose, and

fructose characterized by a sweet flavor.

In food, sugar almost exclusively refers to

sucrose, which primarily comes from sugar cane

and sugar beet. Other sugars are used in industrial

food preparation, but are usually known by more

specific names-glucose, fructose or fruit sugar,

high fructose corn syrup, etc.

Currently, Brazil has the highest per capita

production of sugar. (money.oneindia.in 01

February 2011)




Exclusive - Sugar-squeezed Brazil buys US ethanol

The scarcity of sugar products in Brazil, the top

producer, has led the country to turn to the US for

corn-based ethanol to replenish depleted supplies

of its own cane-based alternative, Agrimoney.com

has learned. Brazil's North East region has, in an

unusual if not unprecedented move, begun

importing US ethanol to replenish supplies lost as

soaring sugar prices encouraged mills to turn cane

into sweeteners rather than biofuels.

The move defies typical industry dynamics which,

as sugar ethanol is less energy-intensive to

manufacture than America's corn-based biofuel,

typically makes Brazil's version significantly

more competitive.

"We have to convert our corn into sugar first,"

Don Roose, President of Broker US Commodities

said. However, the figures for Brazilian imports

of US ethanol stacked up, even including a trade

tariff of USD 0.54 a gallon, Mr Roose added.

Ethanol vs sugar

The clamour for sugar has increased to 44.7%,

from 42.9% in 2009-10, the proportion of cane

converted into the sweetener rather than ethanol,

the International Sugar Organization said earlier

this week.

"In a nutshell, although the final figures for both

cane production and industrial yields proved to be

lower than previously expected, this has not

affected sugar production as the decrease in cane

availability has impacted ethanol rather than sugar

output," the ISO said.

While sugar production is up by 15.1% this

season, "the growth rate for ethanol output has

been downgraded to 6.6% as against nearly 13%

projected in November".


Exclusive - Sugar-squeezed Brazil buys US ethanol (Contd)

The financial incentive was evident in January

when, for instance, Brazilian hydrous ethanol sold

at the equivalent of 17.8 cents a pound, compared

with 45.4 cents a pound for crystal sugar.

"The premium of sugar over ethanol prices

throughout the season incentivised mills to

allocate as much cane juice as possible towards

sugar production," merchant Czarnikow said on

Tuesday. For the US, ethanol exports even to

Brazil looked a supportive factor, showing there is

a "world market out there" for the corn-based

version, Mr Roose said.

However, expectations that Brazil might switch

more cane into ethanol production, given higher

oil prices, were attributed with sparking a 3.7%

rise to 30.35 cents a pound in raw sugar, for May

delivery, in late deals in New York. White sugar

for May closed up 3.7% at USD 760.5 per t in

London. "Sugar is tight, and will remain tight for

the coming quarter until Brazil begins its harvest,"

Nick Penney at Sucden Financial said.

(agrimoney.com 02 March 2011)

GIRACT Sweeteners & Starch Price Monitoring

Giract provides quarterly prices of white sugar,

key starches and their principal derivatives used

in the food industry across major regions. The

report comprises tables and commentary on

price movements as well as charts which track

annual running price series. Details on the

following page.


GIRACT

Sweeteners & Starch Price Monitoring Quarterly Price Review of Starches, their derivatives and Sugar in Key World Markets Now in its 11th successful year ! Giract provides quarterly prices of white sugar, key starches and their principal derivatives used in the food industry across major countries. This report comprises tables and commentary on price movements. In addition, charts track annual running price series. Why should you subscribe to this Price Monitoring? Because you are closely involved with these products and often find it difficult - or impossible - to obtain ex-manufacturer price estimates on a comparative scale across countries Because this is an efficient mechanism to remain abreast of developments Because this monitoring programme has been endorsed by key industry players including ADM, Avebe, BASF, Cargill, CPI, Danisco, GEA, Grain Processing, Lyckeby, Novartis, Novidon, Unilever, … Because Giract is well-known for its in-depth analyses of the world starch and sugar industries over the last 30 years. What does this Price Monitoring contain? Compact tables which provide ex-factory prices in local currency and USD for the key products and countries as shown below (relevant raw materials for each country), along with charts tracking price trends.

Glucose syrup HFS Native Starch Cationic Modified White DE<20 DE 63-65 DE 40-42 42% Maize Wheat Potato Tapioca Starch*

Starch

food grade+ Sugar

China EU India LatAm Russia Thailand USA * LatAm, China, India, Russia, Thailand + EU, USA

How do you subscribe to this Price Monitoring ? By simply filling in the form below and returning it to us or subscribing online at www.giract.com.

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Strong ethanol performance part of ADM's profitable Q2

Archer Daniels Midland Co. reported record

quarterly segment operating profit of USD 1.4 bio

for the quarter that ended December 31. That‘s an

increase of USD 392 mio from the same time

period one year ago. ―The ADM team delivered

outstanding performance across the board,

resulting in record operating profit,‖ said

Patricia Woertz, ADM Chairman and CEO.

Corn processing profits were a positive part of

that picture. During the company‘s quarterly call

held February 1 it reported that operating profit

increased by USD 109 mio to a total profit of

USD 399 mio. The company‘s two new dry mill

ethanol plants in Columbus, Neb., and Cedar

Rapids, Iowa, became operational in 2010 and, as

a result, the company‘s corn processing volumes

were up 24%.

ADM‘s plants produce ethanol and other products

from corn, such as sweeteners, depending on

profit margins. ―We like the long term future of

ethanol, that is not only why we put these plants

in place but why we continue to run the size of

our wet corn milling business the way we do,‖

Woertz said.

The company‘s profits in the bioproducts division

of corn processing increased a total of

USD 161 mio to USD 280 mio. Improved ethanol

margins and volumes were a part of that, the

company said, as well as stronger lysine margins.

Ray Young, Senior Vice President, cited the

one-year extension of the volumetric ethanol

excise tax through 2011 and the U.S. EPA‘s

approval of E15 for 2001 and newer vehicles as

positive developments for ethanol. U.S. exports of

ethanol were also up in 2010, which helped

supported demand, and the company expects that

will continue in 2011.


Strong ethanol performance part of ADM's profitable Q2 (Contd)

The company is supportive of E15, Woertz added,

but said it will take a while to see higher levels of

ethanol at retail pumps. ―I think it‘s a slow go,‖

she said. Vice Chairman John Rice had a positive

outlook on ethanol in 2011. He pointed out that at

current prices ethanol is still 10 to 20 cents below

gasoline, even without factoring VEETC. ―People

are still going to blend as much as they can,‖ he

said. (ethanolproducer.com 02 February 2011)

Corn price, delays, operational issues contribute to bankruptcy

First United Ethanol LLC announced February 2

that its wholly-owned subsidiary, Southwest

Georgia Ethanol LLC, has filed for Chapter 11

bankruptcy protection. ―We are using this Chapter

11 filing as a tool to recognize and protect the

value of our business for the long term,‖ said

Murray Campbell, CEO of FUEL, which will

continue to manage the plant and doesn‘t plan to

file for Chapter 11.

According to documents filed in U.S. Bankruptcy

Court in the Middle District of Georgia, Albany

Division, consolidated financial statements show

revenue of USD 168 mio for the fiscal year

ending September 30. As of December 31, the

company had assets of about USD 164 mio and

liabilities of USD 134 mio.

The Chapter 11 filing came about due to liquidity

constraints that resulted from operational

problems that have now been largely resolved, the

company said.

The company also pointed to financial difficulties

caused by increased corn prices and delivery

delays. Corn is purchased from local corn

producers when it is competitively priced but the

majority is delivered via rail car from the

Midwest.


Company News



Corn price, delays, operational issues contribute to bankruptcy (Contd) In 2010 there were many instances of rail car

delays that prompted the company to purchase

corn from local vendors at a substantial premium

so it could keep operating. However, the company

didn‘t meet working capital deficit thresholds set

in those agreements and has been assessed penalty

fees of about USD 1.3 mio per quarter, which has

been charged to interest. The company also owes

other companies, including about USD 3 mio to

Fagen Inc., the design-build company.

The ethanol plant has roots that go back to 2005,

when the Mitchell County Research Group LLC

formed and funded a feasibility study. Several

months later a board was formed and the name

was changed to First United Ethanol LLC.

Construction began in the spring of 2007 with

costs projected to be USD 185 mio to build the

plant. An equity offering in 2007 bought in

USD 74 mio from more than 800 investors.

(ethanolproducer.com 02 February 2011)

Cargill to build new Brazilian corn processing plant for starches and sweeteners Cargill has said it intends to build a new corn

processing plant in Brazil to produce starches and

sweeteners, to keep up with rising demand from

customers in the region.


Cargill to build new Brazilian corn processing plant for starches and sweeteners (Contd) The Brazilian economy is in the midst of a period

of rapid growth, with rising GDP and increasing

investment from developed economies. Levels of

disposable income have also risen for many

Brazilians, leading to increased demand for food

and beverage products and investment

opportunities for multinationals.

Cargill‘s new plant is expected to cost around

USD 210 mio and add 30% to the company‘s corn

processing capacity in South America, the

company said. The location of the new plant is

still under consideration, and a decision about

where the plant will be located is expected in the

first quarter of this year, with operation due to

begin in 2013.

Leader of the company‘s South America starches

and sweeteners business Gonzalo Petschen said:

―The partnership with our customers and rising

domestic demand were key aspects that drove our

investment. Cargill‘s global leadership team sees

with great optimism the growth of business in

Brazil.‖

Cargill added that the new plant may also have a

line devoted to other corn-based food and

industrial ingredients using its proprietary

technologies, some of which it claims previously

have not been available on the Brazilian market.

However, the company remains tight-lipped about

what these other ingredients may be.

Cargill has made a number of investments in

Brazil in the past year. It completed 70%

expansion of the capacity of its starches and

sweeteners plant in Uberlandia, Minas Gerais in

March 2010, and also agreed to buy Unilever‘s

Brazilian tomato sauce and paste business in

September for about USD 360 mio).

(foodnavigator-usa.com 02 February 2011)

Company News

http://www.foodnavigator-usa.com/content/search?SearchText=Brazil&FromNews

http://www.foodnavigator-usa.com/content/search?SearchText=Cargill&FromNews

http://www.foodnavigator-usa.com/content/search?SearchText=starches&FromNews

http://www.foodnavigator-usa.com/content/search?SearchText=sweeteners&FromNews



Cargill purchases Tate & Lyle plant

Cargill announced today that it has purchased

Tate & Lyle's corn wet mill ethanol plant in Fort

Dodge for USD 57 mio. The announcement

breathes new life into a facility that has been

officially shuttered for more than two years.

The mill will be operational within 18 to

24 months, said Cargill spokeswoman

Nicole Reichert. When functional, the plant will

employ at least 100 or more full-time workers.

Reichert said wages will "be competitive with

similar jobs in the area." She declined to name

specific figures. Under the Tate & Lyle banner,

the plant was expected to produce

100 mio gallons of ethanol per year

According to Reichert, Cargill expects to product

115 mio gallons per year, using 150 000 bushels

of corn daily.

"We're going to make some modifications to the

facility to increase efficiency," she said.

"We believe that a highly efficient, well-located

corn wet mill ethanol plant fits well into our

bio-product portfolio," said Alan Willits,

President of Cargill Corn Milling North America,

in a press release. "We see an opportunity in

Fort Dodge to replicate the success we have had

at our Blair, Neb., and Eddyville, Iowa,

biorefinery campuses." (messengernews.net 31

March 2011)

Global Sweeteners’ revenue and gross profit surged by 25.7% and 23.1% driven by increased product price

Global Sweeteners Holdings Limited together

with its subsidiaries reported a 25.7% and 23.1%

year-on-year growth in its consolidated revenue

and gross profit to approximately HKD 3 356 mio

and HKD 378 mio respectively for the year ended

31 December 2010. Net profit attributable to

shareholders for the year 2010 increased by 3.5%

to approximately HKD 89 mio.

During the year, the sales volume of upstream

products was similar to 2009's, but the price of

corn starch rocketed by 32.2%. As a result, the

revenue and gross profit of upstream products for

the year were HKD 1 224 mio and HKD 127 mio

respectively. Although the average purchasing

price of corn kernel, the principal raw material of

the Group surged by 21.2% in 2010, the Group

was able to leverage the upsurge of corn starch

price to sustain a slight increase in the gross profit

margin of its upstream products during the year

2010.

Among the Group's downstream sweetener

products, the revenue of corn syrup and corn

syrup solid during the year were approximately

HKD 1 239 mio and HKD 727 mio respectively.

The increase in revenue of corn syrup products

was mainly attributable to the increase in sales

volume and selling prices. During the year, the

utilisation rate of the glucose/maltose production

facility in Jinzhou increased, while internal

consumption of glucose syrup for downstream

production reduced. As a result, the sales volume

of both glucose syrup and maltose syrup increased

to approximately 246kt (2009: 178kt) and 244kt

(2009: 225kt) respectively during the year 2010.


Company News



Global Sweeteners’ revenue and gross profit surged by 25.7% and 23.1% driven by increased product price (Contd)

Supported by a 16.8% and 25% increase in the

selling prices of glucose syrup and maltose syrup

respectively, the revenue of glucose syrup and

maltose syrup rose to HKD 561 mio and

HKD 678 mio respectively (2009: HKD 347 mio

and HKD 500 mio respectively).

The revenue of maltodextrin increased by

approximately 80.9% year on year to

HKD 356 mio due to increase in the selling price

and sales volume of 25.5% and 44.1%

respectively to approximately HKD 3 100 per t

and 113kt respectively. Revenue of crystallised

glucose dropped by 22.7% to approximately

HKD 371 mio during the year as compared to that

of the previous year, as a result of 43.6% decrease

in sales volume to approximately 168kt

(2009: 298kt). However, increase in the selling

price had contributed to improved gross profit

margins of both crystallised glucose and

maltodextrin for the year.

During the year, the Group continued its effort in

developing its overseas markets. The Group's

export volume of upstream corn refined products

and corn sweeteners for the year were

approximately 45kt (2009: 46kt) and 41kt (2009:

15kt) respectively, while the respective export

sales amounted to approximately HKD 102 mio

and HKD 137 mio respectively, representing

27.5% and 211.4% increases from those of the

previous year.

Going forward, the Group will continue to secure

the supply of corn kernel at the lowest cost

through better utilisation of its current corn

storage facilities and a more comprehensive corn

procurement policy and network.



To cope with the downstream production needs,

the Group plans to expand the corn processing

capacity in existing Jinzhou corn refinery by

300kt per annum. Construction of this corn

processing facility is scheduled to commence in

the second quarter of 2011 and is expected to be

completed by the fourth quarter of 2011.

In view of economic recovery and improved

market sentiment, the Group intends to expand its

downstream production. The Group plans to add a

new HFCS (high fructose corn syrup)

55 production line of 60ktpa capacity in Shanghai

to cope with the huge demand growth from food

and beverage manufacturers in the region. Apart

from this, the Group has also planned to resume

the projects in Jinzhou which include a new

crystallised glucose production facility of

100ktpa, a maltodextrin production facility of

40ktpa and a new HFCS 55 production facility of

100ktpa. The expansion plans of the Group will

be principally financed by its internal resources

and bank borrowings.

"Sugar price in China has been rebounding from

rock bottom since 2009 and current sugar price is

nearly three times its lowest in 2008. The

persistently high sugar price creates a favourable

environment for the Group's sweeteners products,

especially for crystallised glucose and HFCS 55.

We see beverage producers are more inclined to

switch from cane sugar to corn sweeteners now.

We believe these new expansion plans will

increase the Group's overall flexibility in

adjusting its product mix in response to market

needs and enable the Group to fully capture the

opportunities we see in times of high sugar price,"

Mr Kong Zhanpeng, Chairman of Global

Sweeteners said.


Company News




He added: "On the other hand, we believe the

upsurge of corn price in China is another issue

that the Company needs to pay attention to. That

is why we intend to raise our upstream capacity

by 50% this year to secure raw material supply. I

believe this move will put us in a better position

to respond to market changes."

"With respect to business diversification, the

Group has launched retail packaged sweeteners

products and beef products, which are currently

sold directly to consumers via nationwide

supermarket chains in the PRC. The Group will

continue to diversify its retail product range in

future through launching new products," Mr Kong

remarked. (todayir.com 29 March 2011)

Nebraska's first ethanol plant reaches milestone

Chief Ethanol Fuels, the state‘s first commercial

ethanol manufacturer, shipped the 1-billionth

gallon produced at its Hastings plant in

mid-February. One of the first fuel ethanol plants

in the U.S., Chief opened in 1984 with the

capacity to produce 10 mio gallons annually. This

year, it is expected to produce nearly 70 mio

gallons. According to Hanson, Nebraska is home

to 25 ethanol plants that produce 2 bio gallons

annually and employ 1 300 people.

Hanson said Chief is a major grain buyer in the

state, providing a market for 25 mio bushels of

corn annually — about 80% of the crop grown in

Adams County, where the facility is located.


Nebraska's first ethanol plant reaches milestone (Contd)

In addition to fuel ethanol, he said the plant also

markets high-protein distillers grains to local

livestock feeders. More than one-third of the corn

processed in the plant is returned to the feed

sector in the form of distillers grain.

―Chief Ethanol Fuels continues to invest capital,

create jobs and add value to Nebraska agricultural

products and the economy. Nebraska is fortunate

to host a portfolio of ethanol-producing plants that

continue to stimulate the economy and stabilize

our supply of renewable transportation fuels,‖

said Todd Sneller, administrator of the Nebraska

Ethanol Board. (theindependent.com 25 February

2011)

Microbiologists aim to optimize bio-ethanol production

Food versus fuel -- this rivalry is gaining

significance against a backdrop of increasingly

scarce farmland and a concurrent trend towards

the use of bio-fuels. Researchers at the

Technische Universitaet Muenchen (TUM) are

helping to resolve this rivalry: They are working

to effectively utilize residual field crop material -

- which has been difficult to use thus far -- for the

industrial production of bio-ethanol.

They took a closer look at bacteria that transform

cellulose into sugar, thereby increasing the

energy yield from plants utilized. If this approach

works, both bread and bio-fuel could come from

the same harvest in the future.

The age of diesel and gasoline is approaching its

inevitable end. However, one of the alternatives,

bio-ethanol made from plant material by way of

microorganism fermentation, is under attack.

Until now, bio-ethanol has been produced from

crops such as wheat, sugar cane or corn, or more

accurately, from the sugar these crops contain in

the form of starch. (Continued on next page)

Bio-Fuels Company News



Microbiologists aim to optimize bio-ethanol production (Contd)

However, when field crops are used for the

production of bio-ethanol, they are no longer

available as food. Researchers at the TUM

Department of Microbiology are working on a

solution to this dilemma.

The idea: Make the sugar stored in the stems and

leaves of plants in the form of cellulose available

for bio-ethanol production. "It is our goal to take

the cellulose, which has so far hardly been used,

and turn it into sugar on an industrial scale,

which can then be processed to bio-ethanol," says

microbiologist Dr. Wolfgang Schwarz.

"We are now optimizing the most effective

combinations for industrial use. Our ultimate goal

is to develop a specialized degradation tool for

every individual plant waste material containing

cellulose. With a bit of luck we will find the

perfect enzyme mixtures, which can then become

established in bio-ethanol production facilities.

"With this research program the TUM scientists

are in sync with current industrial trends.

Süd-Chemie AG is building a pilot plant in

Straubing to convert the biogenic residual product

straw into ethanol. (bioenergy.checkbiotech.org

09 February 2011)

Limiting Ethanol Production

It is no secret that increased production of ethanol

for fuel has driven up the price of food, and

anything else made from corn, on a global level.

Today, almost a third of the corn crop in the

United States is being used in ethanol production

for fuel. What most consumers don‘t realize is

that one gallon of ethanol is about 65% as

efficient as one gallon of gasoline. It also costs

more to produce.


Limiting Ethanol Production (Contd) Thus, the price of food is being driven up for the

sake of less efficient, more expensive fuel. In fact,

one recent study done by UC Berkeley

Geoengineering Professor Tad W. Patzek found

that ethanol is one of the worst renewable fuel

solutions, and confirmed that a staggering six

times more fossil energy is used to produce

ethanol than is released by it.

If we rewind just three years, back to 2008, you

will recall that the then new ethanol mandate was

responsible for driving food prices up by as much

as 50%, even leading to riots in several foreign

countries. And now, just a short time afterward,

the ethanol movement is still gaining momentum.

In fact, 15% ethanol gasoline is being talked

about right now and could very well become the

new standard soon. This can only lead to more

corn being used to produce ethanol and the price

of other good going up because of it.

Last year alone, more than 20% of the

United States‘ corn crop was used for ethanol

production, and it only offset 1% of the country‘s

oil use. Obviously, focusing efforts on new power

technology and electric vehicles is a better way to

go. In fact, almost any way is a better way to go!

The answer to easing the current food price spike

is to stop using all of our corn for ethanol, plain

and simple. (newsgrape.com 04 March 2011)

Storms, seasonal demand impact ethanol markets

Max Thomasson, commodity sales and operations

manager for CHS Inc.‘s renewable fuels division,

said the recent series of winter storms that has

battered areas of the Northeast and Central

Midwest has affected ethanol demand, which unfortunately is coinciding with the lowest

seasonal demand time of the year.


Bio-Fuels

http://www.electricityblog.com/190/bloom-energy-hydrogen-fuel-cells/

http://www.electricityblog.com/190/bloom-energy-hydrogen-fuel-cells/



Storms, seasonal demand impact ethanol markets (Contd) This has caused ethanol prices to trail corn

slightly, causing some pressure on ethanol prices

relative to corn. Chris Highsmith, Research

Analyst for Eco-Energy Inc., also believes

weather has combined with low seasonal demand

to create less than ideal circumstances for the

ethanol market. ―That trend, with seasonal

gasoline demand down and ethanol production up,

is generally not a good combination for ethanol

margins for plants,‖ Highsmith said.

Rising oil prices will affect the ethanol market,

but not has severely as some may speculate,

according to the analysts. Highsmith said upward

pressure on crude prices will boost RBOB prices,

which in turn will increase the spread between

RBOB and ethanol. ―If nothing else, it‘s giving

ethanol room to move up and still retain some

margins for the people blending it,‖ he said.

But Thomasson said if increased per-barrel prices

inflate the price at the pump too much, it could be

a detriment to the ethanol market. ―I don‘t see a

huge run up in prices affecting ethanol other than

adversely,‖ he said.

Internationally, there continues to be demand for

exports to Europe, but sustainability requirements

are making it difficult for most U.S. producers to

export to the EU27, according to Thomasson. The

EU is currently only accepting fuel that has been

certified through the International Sustainability

and Carbon Certification System, a process which

includes proving the fuel was produced using

sustainable biomass.

―That‘s a big hurdle for U.S. producers because

there aren‘t many who have achieved that

certification,‖ he said, adding that he is aware of

only two U.S. producers who have received

ISCC-certification.(ethanolproducer.com 01

February 2011)

South Korean firm plans to invest USD 300 mio for ethanol plant Despite issues that continue to hound the local

ethanol industry, a South Korean firm recently

expressed to the government its intention to

revive plans for an ethanol production facility in

Luzon. Marriz B. Agbon, President of the

Philippine Agricultural Development and

Commercial Corp., told reporters that this Korean

firm, which he declined to name, has been looking

at investing USD 300 mio to construct an ethanol

facility.

Agbon said on the sidelines of a recent launching

ceremony by Green Future Innovations, that this

Korean company was among the original

proponents that wanted to put up a plant in the

Philippines. But due to the uncertainty on tariff

rates imposed on imported ethanol and on the

unclear policies regarding the uptake on locally

produced ethanol, the Korean firm decided to put

the project on hold. The interest was revived

recently given the increases in gasoline pricesand

the renewed interest shown by other investors

such as the Filipino-Japanese venture GFI, in the

local ethanol industry.

Although Agbon did not identify the firm, the

2009 Bioethanol Roadmap crafted by the Sugar

Regulatory Administration two years ago showed

Daebong LS of South Korea as among the 20

investors that initially targeted to have an ethanol

facility operational by 2012.Of these 20 investors,

only three companies have completed their

ethanol facilities namely San Carlos BioEnergy

Inc., which produces 40 mio liters a year; Leyte

Agri Corp. with 10 mio liters annually, and Roxol

Bioenergy, with 33 mio liters a year.

Their combined production can barely serve the

requirements of the local oil companies, which are

expected to increase to over 400 mio liters this

year, given the 10% mandated ethanol blending in gasoline.


Bio-Fuels

http://business.inquirer.net/money/breakingnews/view/20110201-317852/South-Korean-firm-plans-to-invest-300M-for-ethanol-plant







South Korean firm plans to invest USD 300 mio for ethanol plant (Contd)

Agbon further disclosed that the Korean firm‘s

planned ethanol facility, the construction of which

may start this year, may likely have the same

capacity as the plant being built by GFI. GFI

recently announced in a launching ceremony that

it was pushing through with its P6-bio bioethanol

and cogeneration facility in Isabela, which would

not only shore up supply of local ethanol but also

provide jobs to more than 15 000 Filipinos in the

rural areas.GFI president Reynaldo P. Bantug

earlier said the ethanol project, set to start

operations in the second quarter of 2012, would

generate 54 mio liters of bioethanol a year,

displacing USD 27.5 mio worth of imported fossil

fuel.

The project, which would also generate

100 000 megawatt-hours of electricity annually, is

being funded by Japan‘s Itochu Corp. and JGC

Corp., Taiwanese holding company GCO and the

local counterpart firm Philippine Bioethanol and

Energy Investments Corporation through the

special purpose vehicle company Green Future

(business.inquirer.net 01 February 2011)

Tata to invest USD 15 mio in Mozambique sugarcane ethanol project In India, Tata Chemicals said that it will make an

initial USD 15 mio investment in the biofuel

production in Mozambique originally developed

by Grown Energy. In 2009, the Mozambican

government granted 15 000 hectares in Chemba

district for a sugarcane biofuels project that would

ultimately cost USD 224 mio and produce up to

26 mio gallons (100 mio liters) of ethanol per

year. Last October, Tata Chemicals acquired

Grown Energy for USD 1.1 mio.

(biofuelsdigest.com 14 February 2011)

Ethanol fueling trip to Denmark

Voters will be the ones to decide if all the elected

officials on a trip next week to Denmark to visit a

cellulosic ethanol production facility should have

gone. Construction of a USD 300 mio plant is

supposed to begin next year, with start-up

operations set for late 2014 or early 2015. The

raw material for the ethanol will be wheat straw

and corn stover coming from a 100-mile radius

around the plant near Jamestown. It will take the

equivalent of 400kt of wheat straw annually to

supply the plant, which will use a chemical

process to create the cellulosic ethanol.

In addition to ethanol, the plant will produce

feed-grade C-5 molasses and purified lignin

pellets that can be used as fuel for a power plant.

Great River Energy has partnered with a number

of companies in developing the plant including

Inbicon, the owner-operator of the demonstration

cellulosic ethanol plant the North Dakota

delegation will visit in Denmark. Because

cellulosic ethanol is derived from woods, grasses

and non-edible parts of plants, it means less

competition with food crops, most commonly

corn, in the production of ethanol. It's considered

carbon-neutral.

There's a competition between three proposed

plants to be the first commercial-scale cellulosic

ethanol plant in the U.S. The others are in Iowa

and Nebraska. The economic model for a

cellulosic ethanol operation will be different than

that for ethanol plants already operating in North

Dakota. The key unanswered question about the

market will largely determine its economic

viability as a fuel source.

A trip to Denmark appears in order. Certainly,

having the Agriculture Department and the Bank

of North Dakota, as well as the Industrial

Commission, represented on the trip makes sense.

(bismarcktribune.com 03 March 2011)

Bio-Fuels

http://biofuelsdigest.com/bdigest/2011/02/14/tata-to-invest-15m-in-mozambique-sugarcane-ethanol-project/















Brazil Cosan Sees USD 2 bio Synergies Generated By Raizen Ethanol Venture Brazilian sugar and ethanol group Cosan Industria

e Comercio SA said Wednesday that it expects

synergies worth USD 2 bio from its ethanol joint

venture, Raizen. The USD 12 bio ethanol venture

was formed last year by Cosan and Royal Dutch

Shell. Despite still being in its infancy, the

venture will expand its production capacity over

the next five years, Cosan and Shell said. The

added output aims to meet a growing demand for

fuel at the company's 4 500 service stations across

Brazil.

Raizen will boost sugarcane-crushing capacity to

100 mio t a year from current output of 60 mio t.

Ethanol production is expected to more than

double over the next five years to 5 bio liters a

year. Raizen now produces about 2.2 bio liters

annually. Raizen represents a huge step in the

consolidation of Brazil's fractured ethanol sector,

where many of the sugarcane mills are family

owned. That's made the sector ripe for picking for

foreign investors flush with cash and a desire to

enter Brazil's biofuels segment.

Cosan and Shell's creation of Raizen was

followed by two separate deals made by Brazilian

state-run energy giant Petroleo Brasileiro, or

Petrobras. In May, Petrobras invested nearly

USD 1 bio for a 46% stake in local sugar group

Guarani, the country's fourth-largest sugar miller.

Petrobras then paid about USD 240 mio for a 49%

stake in Nova Fronteira Bioenergia SA, a joint

venture with local sugar producer Sao Martinho

SA (SMTO3.BR).


Brazil Cosan Sees USD 2 bio Synergies Generated By Raizen Ethanol Venture (Contd)

Previously, consolidation in the Brazilian biofuels

sector had been limited to smaller deals between

rivals or investment funds. U.S. company Bunge

Ltd. (BG) in December 2009 acquired Usina

Moema Participacoes SA, which owns a Brazilian

sugarcane mill and has ownership interests in five

others. France's Louis Dreyfus Commodities in

October 2009 took control of giant sugar and

ethanol group SantelisaVale. Cosan snapped up

local milling group NovAmerica in early 2010.

(automatedtrader.net 02 March 2011)

Export of molasses, ethanol to fetch higher income

Foreign exchange earning from export of ethanol

and molasses is likely to be higher this year owing

to surging world prices and demand from

European buyers, industry sources said on

Monday. Almost all the distilleries are presently

operating at 90% capacity and are expected to

convert much larger quantity of molasses into

alcohol to meet the buyers demand.

Sources said that last year exporters earned higher

foreign exchange by exporting around 210kt of

alcohol on an average price of USD 775 to 800

per t.


Bio-Fuels



Export of molasses, ethanol to fetch higher income (Contd)

However, this year owing to increased demand

from the buyers, prices have moved further high

and are expected to stay at USD 800 to 1 000 per

t. Ethanol exports during 2009 stood at 180kt

fetching an average price of USD 775 per t.

However, prices are firm from the very start of the

season compared to last year and are being quoted

in the range of USD 825 to 850 with exports

touching around 2 798 t so far.

Mohammad Kasim Hashim, a leading exporter of

molasses and ethanol said prospects of exports

were good this year owing to firm world prices

for both the commodities. However, he said the

crushing of sugarcane could further last for

another 6 weeks and may come to an end by the

middle of March. Therefore, he felt that lesser

molasses would result in lesser production of

ethanol. He said undoubtedly, there was strong

demand for ethanol in the world market but

Pakistan with limited capacity owing to short cane

crop may export around 200kt to 225kt this year.

Nevertheless, he said with higher distillery

capacity the country has managed to add value to

molasses to produce ethanol and earn higher

foreign exchange. Strong demand has also led to

increase molasses prices in the world market

which are presently being quoted at around

USD 120 to 130 per t. Last year, molasses exports

stood at 290kt fetching average price of USD 110

to 112 per t. (dawn.com 08 February 2011)

Petrobras To Double Biofuels Production With Eye On Global Shipments

Brazilian state-run energy giant Petrobras will

spend USD 3.5 bio over the next four years to

more than double biofuels output, positioning the

company to take advantage of global demand for

clean, renewable sources of energy.


Petrobras To Double Biofuels Production With Eye On Global Shipments (Contd)

―We are preparing for a global scenario in which

the demand for biofuels is expanding,‖ Miguel

Rossetto, Chief Executive of Petrobras biofuels

unit Petrobras Biocombustivel, said in an

interview. Petrobras created Petrobras

Biocombustivel in 2008 to be the platform for its

entry into Brazil‘s biofuels sector, where

sugarcane ethanol has been in use since the 1970s.

But the world‘s need to reduce carbon emissions,

including firm targets set by some countries,

means that demand for biofuels such as ethanol

and biodiesel will likely explode in coming years.

The company plans to spend USD 2.5 bio to boost

ethanol and biodiesel production, with about 80%

of the total earmarked for ethanol projects,

Rossetto said. An additional USD 1 bio will be

spent on infrastructure development, including

Petrobras‘ participation in a USD 3.3 bio ethanol

pipeline project, as well as research and

development. Ethanol production is targeted for

2.6 mio cu.m by 2014, up from output of 1 mio

cu.m in 2010. Biodiesel production, meanwhile, is

expected to climb to 750 000 cu.m in 2014, up

from 500 000 cu.m at the end of last year.

The company‘s primary focus is to meet rising

demand in Brazil, Rossetto said. Brazil not only

mandates a 25% blend of ethanol into gasoline at

the pump, the country also has a massive flex-fuel

fleet of light vehicles that can operate seamlessly

on ethanol, gasoline or any combination of the

two fuels. Demand for biofuels from the

petrochemicals sector is also growing as the

industry moves toward greater production of

so-called green plastics. Local petrochemicals

giant Braskem, in which Petrobras holds a 49%

stake, consumes about 400 000 cu.m of ethanol

per year. (gcaptain.com 12 February 2011)


Bio-Fuels



Bug Creates Butanol Direct from Cellulose

Butanol—a promising next-generation

biofuel-packs more energy than ethanol and can

be shipped via oil pipelines. But, like ethanol,

biobutanol production is focused on using edible

feedstocks such as beets, corn starch, and

sugarcane.

Now James Liao, a biomolecular engineer at the

University of California, Los Angeles, has

developed two routes to liberate butanol from its

dependence on food crops. Liao, who has a track

record for commercializing innovative biofuels

processes, has proven that microbes can produce

the advanced biofuel directly from agricultural

wastes, as well as from protein feedstocks such as

algae.

Liao's demonstration of direct cellulose-to-butanol

conversion could bring down the cost of cellulosic

biofuels, which is currently prohibitively high.

His protein-based process provides the biofuels

field with entirely novel feedstock options.

While they're renewable, biofuels face attacks

from environmental and food activists, and

biobutanol is no exception: the first generation of

biobutanol plants under development will run on

corn-based sugar and starch.


Bug Creates Butanol Direct from Cellulose (Contd) "Butanol has some technical benefits, but the real

problem is the amount of food that goes into

making a gallon of fuel," says Jeremy Martin, a

Senior Scientist at the Union of Concerned

Scientists, a Cambridge, Massachusetts-based

advocacy group that is part of a broad coalition

pushing Congress to end lucrative tax credits for

corn ethanol. Liao's innovations could end

biobutanol's association with corn—an association

that, ironically, is partly of his making.

In 2008, Liao developed a microbial pathway for

converting sugar into isobutanol, a high-octane

isomer of butanol.

That innovation is now being commercialized by

Gevo, an Englewood, Colorado-based startup that

Liao cofounded. Gevo raised USD 107 mio in an

IPO last month to support its plans to retrofit corn

ethanol plants to produce isobutanol instead.

Plans for a shift to biofuels production from

biomass feedstocks such as switchgrass, corn

stalks, and sugarcane bagasse (or plant residue)

are, meanwhile, moving slowly because of higher

costs. The U.S. Environmental Protection Agency

mandated use of just 6.6 mio gallons of cellulosic

ethanol this year—less than 3% of the 250-mio-

gallon goal set by Congress four years ago.

The holdup is from added processing steps

required to break down these cellulosic feedstocks

and thus generate sugars for fermentation; the

processing boosts costs considerably, making

production facilities difficult to finance. The key

was adding Liao's sugar-to-isobutanol pathway to

a microbe, Clostridium cellulolyticum, that likes

chewing on biomass but does not normally make

butanol. (laboratoryequipment.com 23 March

2011)

Bio-Fuels

http://ucla.edu/



Zein technology to go commercial at Illinois ethanol plant

Illinois-based technology developer Prairie Gold

Inc. and GTL Resources USA Inc. are

collaborating to produce zein protein at a

commercial-scale plant, to be constructed near

Illinois River Energy‘s 110 MMgy plant at

Rochelle, Ill. Illinois River Energy is a subsidiary

of GTL Resources.

―This unique technology has the potential to

significantly change the way we think about

ethanol production in that instead of just

producing ethanol and distillers dried grains

(DDGs), we are becoming a biorefinery capable

of producing several food, industrial and chemical

products,‖ Rich Ruebe, CEO of GTL and Illinois

River Energy, said.

Zein is a natural, corn-based polymer with a wide

variety of uses in multiple industries. It can be

used to produce biodegradable plastics, shellac

and other hard coatings and also has many

applications in the pharmaceutical and specialty

chemicals industries. Demand for the product is

growing, according to Shane, but quality and

pricing have inhibited its ability to enter the

market in high volumes.

Poet LLC is the only other ethanol producer

known to be working on zein production

technology. Its trademarked product, known as

Inviz, is produced from DDGs.


Zein technology to go commercial at Illinois ethanol plant (Contd) Massachusetts-based Freeman Industries LLC is

the one other U.S. company currently producing

zein, according to Shane. It uses corn gluten meal

to produce zein. Prairie Gold‘s trademarked

Amazein is produced from the corn kernel.

Typical zein production begins by using ethanol

to dissolve and extract the zein protein from the

raw product which, in Prairie Gold‘s technology

is corn kernels. From there, Prairie Gold utilizes

membranes to purify the zein protein. Shane said

this method reduces energy costs and increases

the purity of the zein. Corn and ethanol used in

the process are then returned the ethanol plant for

its use.

Shane said Prairie Gold‘s process extracts one

pound of zein per bushel of corn. Ethanol and

corn are merely ―borrowed‖ from the ethanol

plant and operations at the ethanol facility are not

affected.

The market price for zein is approximately

USD 18 per pound, Shane said. By comparison,

DDGs are currently selling for 6 to 8 cents per

pound. The zein plant to be constructed at Illinois

River Energy could produce 40 mio pounds of

zein annually, he said, but declined to offer

production cost details. While the selling price is

attractive, Shane cautioned that the company is

focused on producing zein at a rate that will

maintain its status as a high-value product. ―Our

business model is to partner with ethanol plants,‖

he said.

―We do not want to flood the market with the

product, because of the many uses for it. You‘re

talking about something that goes into a very high

value market to one that‘s very low. We don‘t

want to overproduce where we‘d have to sell into

the pharmaceutical industry for a plastic industry

price.‖ (ethanolproducer.com 23 March 2011)

Bio-Fuels



World starves as Americans burn food to stay on the road

Spectators at February's Daytona 500 in Florida

were handed green flags to wave in celebration of

the news that the race's stock cars now use

gasoline with 15% corn-based ethanol. It was the

start of a season-long television marketing

campaign to sell the merits of biofuel to

Americans.

The US spends about USD 6 bio a year on federal

support for ethanol production through tax credits,

tariffs, and other programs. Thanks to this

financial assistance, one-sixth of the world's corn

supply is burned in American cars; enough corn to

feed 350 mio people for an entire year.

Government support of rapid growth in biofuel

production has contributed to disarray in food

production. Indeed, as a result of policy in the US

and Europe, including aggressive production

targets, biofuel used more than 6.5% of global

grain output and 8% of the world's vegetable oil

last year, up from 2% of grain supplies and

virtually no vegetable oil in 2004.

In 2007 and 2008, the swift increase in biofuel

production caused a food crisis that incited

political instability and fuelled malnutrition.

Developed countries did not learn. Since 2008, ethanol production has increased by 33%.

Biofuels were initially championed by

environmental campaigners as a silver bullet

against global warming. They started to change

their minds as research showed that biofuels from

most food crops did not significantly reduce

greenhouse gas emissions - and in many cases,

caused forests to be destroyed to grow more food,

creating more net carbon-dioxide emissions than

fossil fuels. Some green activists supported

mandates for biofuel, hoping they would pave the

way for next-generation ethanol using non-food

plants. That hasn't happened.(theaustralian.com.au

21 March 2011)

Corn-based fuel still a target on national stage

Some people have placed a bull‘s-eye on ethanol

fuel made from corn.

U.S. Sen. Dianne Feinstein, D-Calif., wants to

repeal the 45 cents-per-gallon credit earned by

refiners and fuel blenders for ethanol purchased

and mixed into gasoline. Congressional bill S530

would leave the incentive intact for

next-generation advanced biofuels not made from

corn, according to The Hill, a Congressional

newspaper (thehill.com).

U.S. Sen. Tom Coburn, R-Okla., and U.S. Sen.

Ben Cardin, D-Md., said repealing the blenders

credit would reduce America‘s annual budget by

USD 6 bio (ethanolproducer.com).

Branstad said - ―If we can go from 10 to 15%

ethanol, that is going to increase the demand. So

right now we need more yields in our corn to meet

the demand for ethanol. And once we get that

demand fulfilled, then I‘m ready to move on to

the 15% blend.‖

People would be ―completely amazed‖ at what

the renewable fuels industry would look like by

2030, ―if Congress would get out of the way and

Big Oil would be brought down to a level playing

field‖ instead of being highly subsidized, said

Monte Shaw, executive director of the Iowa

Renewable Fuels Association.


Bio-Fuels



Corn-based fuel still a target on national stage (Contd) ―With corn yield trends, we could feed the world

and produce 50 to 60 bio gallons of ethanol by

2030,‖ he said.―And that would just be from corn

starch,‖ he said. ―Any cellulosic ethanol

production would be above and beyond that. That

is game-changing.

―If the ethanol industry could wave a magic wand,

our view of the future would be quite simple,‖

Shaw said. ―Every vehicle on the road would be a

flexible fuel vehicle and every pump at a gasoline

station would be a flex fuel pump (blender pump).

―That would crush the oil monopoly that currently

uses its clout to keep consumers from being

empowered to choose the fuel of their choice,‖ he

said. ―If there was true consumer choice for fuels

the ethanol industry would feel quite confident in

America‘s fueling future.‖ (globegazette.com 20

March 2011)

Biodegradable plastics growth linked to composting infrastructure

Rising interest in biodegradable plastics is good

news for the bioplastics sector. But this

enthusiasm, on the part of both consumers and

governments, must be accompanied by the

installation of adequate composting

infrastructures - whether at local, regional or

national level, says Robert Heger, Vice President,

specialty plastics, at global chemical company

BASF


Biodegradable plastics growth linked to composting infrastructure (Contd)

BASF, headquartered in Ludwigshafen, Germany,

estimates demand for biodegradable and

bio-based plastics will grow by 20-30% during

the next few years, helped by rising consumer

demand, new environmental regulations and the

development of new technologies and

applications.

BASF produces the biodegradable polymer

Ecoflex and derivative product Ecovio. Ecoflex,

an aliphatic-aromatic copolyester, acts as an

enabler by improving the flexibility of other

polymers such as polylactic acid (PLA) and

starch. Ecovio is a blend of Ecoflex and corn

sugar-based PLA.

While BASF's Ecoflex is biodegradable, it is not

generally produced from bio-based materials.

However, BASF has launched another Ecovio

plastic grade, branded Ecovio FS Paper, for lining

paper cups, which is manufactured using partly

bio-based Ecoflex. BASF has not disclosed which

of the three raw materials used to produce Ecoflex

- butanediol, terephthalic acid and adipic acid - is

bio-based in the Ecovio FS Paper grade. In theory,

each could be exchanged with a bio-based

material, Heger says.

Europe is the biggest market for Ecoflex and

Ecovio, with bags the largest application.

Germany has a particularly advanced

infrastructure for biodegradable polymers, Heger

says, and strong demand is expected in Italy

following the introduction of a law in January

banning the use of non-biodegradable single-use

bags.

BASF is also forecasting strong growth for the

products in North America, as well as in Japan

and Australia.


Bio-Fuels Bio-Plastics

http://www.basf.com/group/corporate/en/

http://www.icis.com/v2/companies/9145137/basf-ag.html




In the US, government initiatives promoting the

use of renewable raw materials and feedstocks are

expected to help boost sales of biodegradable

plastics.

Earlier this year, BASF reached an agreement

with US bioplastics manufacturer Metabolix

which enables the German producer to sell Ecovio

in the US. Under the agreement, BASF has

acquired a license from Metabolix under a US

patent to produce and market PLA and

polybutylene adipate terephthalic acid (PBAT)

compounds under its Ecovio trade name.

Legislation supporting the use of biodegradable

packaging can help boost demand, but it is not

necessarily the best route, Heger notes. It is more

important to convince the consumers and brand

owners of the products' benefits, he suggests.

While Italy's plastic bag ban is creating additional

demand for biodegradable plastics, this effect is

less obvious in countries lacking that

infrastructure, such as China, where a plastic bag

ban was introduced in 2008. "In China, people

can buy biodegradable and compostable bags but

there is no infrastructure, no composting

facilities, so this plastics ban does not solve the

littering issue," Heger explains. (Continued in

next column)


Other growth areas include agricultural mulch

films, films for lining paper products such as

cups, and disposable cutlery and plates.

Agricultural mulch films, which are used to

improve farming productivity, can be tilled into

the soil at the end of a growing season, unlike

polyethylene (PE) films which have to be

removed and then either cleaned or sent to

landfill.

"In countries with high labor costs, it can be cheaper for the farmers to use a biodegradable

mulch film that does not need to be removed

afterwards," Heger says. According to global

market research and consulting company Applied

Market Information, the market for agricultural

films was 3.6 mio t in 2008.

Using biodegradable films to line paper cups

allows the cup to be recycled or composted. Paper

cups are normally lined with PE, which causes

problems with recycling because PE does not

dissolve in the recycling process, Heger explains.

"We can achieve the same mechanical and

product properties with Ecovio film, such as

resistance to moisture and grease, but it does not

harm the recycling process," he says.

BASF estimates the global market for whole

paper cup material, including the paper and plastic

coating, at 1.3 to1.5 mio t.

The bioplastics market is extremely dynamic and

the introduction of new legislation makes it

difficult to predict when additional capacity will

be required, Heger says. "There is an underlying

trend towards sustainability globally. I'm not

saying that biodegradable plastics will save the

world, but they can contribute to sustainable

solutions," he adds. (icis.com 31 March 2011)

Bio-Plastics

http://www.metabolix.com/

http://www.amiplastics.com/Ami/AMIdefault.asp

http://www.amiplastics.com/Ami/AMIdefault.asp



New Technology Allows Maine Organization to Create a New Material

About 1% of the world's plastics are currently

made with bio-based material nearly all of which

comes from corn starch, but, Belliveau says,

demand is growing, and according to one

assessment, about 90% of all plastics could be

replaced with non-petroleum alternatives right

now.

Belliveau is also the Vice-President of the

Sustainable Bioplastics Council of Maine, a

newly-created trade association that's trying to

help Maine gaine a foothold in the biopastics

industry. He says scientists at the University of

Maine are planning to produce a plastic resin

called PLA, which stands for poly lactic acid,

using wood chips and potato waste both of which

maine has in large supply.

Bioplastics are also touted as environmentally

friendly because they're free of the controversial

additive found in some plastic items called

Bisphenol A, or BPA that many scientists say can

impair brain development. Steve Russell is

Vice-President of the council's plastics division.

Nevertheless, the appetite for alternatives plastics

is there, and a number of companies in Maine are

interested. In an industrial park near the popular

mid--coast vacation town of Boothbay, a startup

called Biovation is making PLA from corn starch

which is used to make most commercially

available 'green' plastics.


New Technology Allows Maine Organization to Create a New Material (Contd)

Biovation also makes food packaging from

bioplastics, designed to extend the shelf life of

fresh fruit by protecting it from harmful bacteria.

Any new PLA will have to peform as well as, or

better than what is already commercially

available. Then there's the matter of cost:

corn-based plastic, is now being produced so

efficiently out West, that durdag says it's actually

cheaper than its petroleum-based equivalent.

Kerem Durdag: "We are manufacturer-agnostic of

PLA, we'll use anybody's PLA as long it

accomplishes our end goals. "Tom Porter: "But if

Maine-based material was available for the same

price. "A PLA-manufacturing plant is probably

going to cost about USD 200 mio to construct, he

says, and that's going to require a lot of venture

capital, plus some state funding in the form of

R&D bonds.And that wider New England market

is potentially worth hundreds of millions of

dollars in sales according to Rubin.(mpbn.net 10

March 2011)

Coperion Provides Compounding Systems to Process Biodegradable Plastics

Coperion GmbH, which is the result of the merger

of Coperion Werner & Pfleiderer, Coperion

Waeschle, Coperion Keya and Coperion

Hartmann, is a technology leader in compounding

systems and bulk materials plants and has

installed more than 10 000 compounding systems

and 8000 bulk materials handling systems

worldwide. The company works in the plastics,

chemistry, food and aluminum sectors where it

implements individual solutions for customers.

The company‘s twin screw extruder is the core

element of its compounding systems.


Bio-Plastics



Coperion Provides Compounding Systems to Process Biodegradable Plastics (Contd)

Biodegradability needs to have a specific

advantage

One example of Coperion GmbH's technological

leadership in the biodegradable plastics sector is

the processing plant for biodegradable materials

belonging to the Portuguese compounding

company Cabopol - Polymer Compounds, S.A.

based in Porto de Mós. The plant became

operational in January 2010 and is the first plant

for compounding biodegradable plastics on the

Iberian Peninsula.

The biologically degradable materials are

commercialised by Cabopol as "BIOMIND", and

are mainly used for short-lived household and

agricultural products, e.g., disposable diapers and

sanitary or catering products. "I believe that

biodegradable products should always be used in

cases where biodegradability is advantageous,"

said Uta Kühnen explaining that it does not make

much sense to use biodegradable plastics in

long-lived products.

Therefore, the area of technical plastics is to a

growing extent turning to the processing of

biobased raw materials. "We can also support our

customers in this area with our comprehensive

know-how on biobased materials which have

similar compounding characteristics to classical

plastics," said Uta Kühnen. (azom.com 03 March

2011)

PHA and bio-derived PE to drive bioplastic packaging market to 2020: study Global bioplastic packaging demand is forecast to

reach 884kt by 2020. A 24.9% CAGR is expected

from 2010-15, slowing to 18.3% in the 5 years to

2020. According to a new study by Pira

International, a new breed of bioplastics will be

major drivers as packaging market demand

gradually shifts from biodegradable and

compostable polymers towards biopackaging

based on renewable and sustainable materials.

Based on primary research and expert analysis,

"The Future of Bioplastics for Packaging to 2020:

Global Market Forecasts" analyses the key

opportunities and future trends shaping the

industry, providing raw material suppliers,

processors and equipment suppliers with 10 year

forecasts. The report identifies about 50 suppliers

of biopolymers for packaging, and presents

technology and market forecasts to 2020 for

bioplastic packaging by product type, end-use

sector, pack type and geographic region.

From 2010, bioplastic technology is expected to

change with the commercialization of bioplastics

produced directly by natural/genetically modified

(GM) organisms and the introduction of

non-biodegradable, bio-derived polyethylene

(PE). Pira expects these materials will account for

a quarter of total bioplastic packaging market

demand by 2020. Polyhydroxyalkanoates (PHA)

are forecast to achieve a CAGR of 41% and bio-

derived PE a staggering 83% over the period.

According to the study, major new technologies

will emerge over the next 10 years. U.S.

bioplastics producer Cereplast, for example, is

planning to launch a range of all-natural algae-

based resins by the end of 2010. Also, several

companies are exploring the development of

bioplastics using carbon dioxide as a raw material.


Bio-Plastics



PHA and bio-derived PE to drive bioplastic packaging market to 2020: study (Contd)

A new sugar-based bioplastic that can be sourced

from non-food crops and produced via a low

energy process is also tipped to reach the market

within the next five years.

Rigid packaging has a projected share of 52% of

the bioplastic packaging market in 2010 according

to Pira, with flexible packaging accounting for the

remaining 48%. Europe is the largest regional

market for bioplastic packaging with over half of

world tonnage in 2010. It benefits from favorable

consumer and retail attitudes to sustainable

packaging, supportive government policies

towards packaging waste recycling and a well-

developed composting infrastructure.

While North America currently trails Europe in

terms of bioplastic packaging consumption,

government and consumer attitudes are changing.

Pira expects North America and Asia to show

higher growth rates than Europe for bioplastic

packaging over the forecast period. Japan

accounts for the lion's share of Asian bioplastic

packaging, mostly as a result of favorable

government initiatives supporting bioplastic

market development. (packagingdigest.com 16

March 2011)

It’s Easy Being Green: Bioplastic-tastic

Reducing plastic usage is critical to a sustainable

future but plastics are undoubtedly an integral part

of our daily lives. A key solution to cutting plastic

use can be found in bioplastics, which are not

only made from renewable resources but also

biodegrade significantly quicker than

conventional plastics.

Conventional plastics are made from petroleum,

but bioplastics are produced using converted

biomass. You‘ve probably seen or heard of

cornstarch-based bioplastics. These have been

around for over 20 years and continue to

constitute a majority market share of

biodegradable plastics.

Scientists, for example, are producing bioplastics

from potatoes—a natural candidate because of

their high starch content. High levels of potato

cultivation worldwide also mean an abundant

supply that can help meet the world‘s plastic

demand.

Sugarcane is another crop being explored for its

bioplastics potential. In fact, Proctor & Gamble,

the Fortune 500 consumer goods company,

recently announced that it would start marketing

and producing sugarcane-derived bioplastics. The

entrance of such a prominent company into the

field is a boon for the potential future growth of

the industry.

Perhaps the most promising—and intriguing—

substitute for conventional plastic ismycelium, a

compound derived from mushrooms.


Bio-Plastics



It’s Easy Being Green: Bioplastic-tastic (Contd)

Mycelium produces a strong, durable polymer

when introduced to certain types of organic

material. Technically, mycelium isn‘t

―bioplastic,‖ but it has qualities that allow it to

substitute for plastic in a number of different

capacities.

For instance, ―Mycobond,‖ a mushroom-derived

material created by entrepreneurs Gavin McIntyre

and Eben Bayer, is a green packaging alternative

that requires 98% less energy to produce than

conventional packaging materials. Mycobond is

all-natural, self-assembling, biodegradable, and

can be most commonly used as a substitute for

packing materials, which are some of the most

egregious sources of waste.

The sources of bioplastics are diverse, but the

benefits are similar. Bioplastics require less

energy to produce than conventional plastics, and

they are made with renewable biomass.

While all bioplastics are created from converted

biomass, not all bioplastics are compostable. If

you‘re looking to really cut down the ecological

impact of your plastic use make sure to use

compostable bioplastics. Ultimately, they‘re easy

to find, similar in price, indistinguishable from

their conventional plastic counterparts, and much

less damaging to our planet.(americanprogress.org

13 March 2011)

Coca Cola, DuPont, Kellogg's and Others Establish a Trade Organization for Sustainable Packaging

Some of the most ubiquitous products on

supermarket shelves may soon have greener

packaging— Colgate-Palmolive, Coca-Cola,

DuPont, Dow Chemical, Kellogg's and others

have formed a trade organization to coordinate

environmental efforts for the packaging industry.


Coca Cola, DuPont, Kellogg's and Others Establish a Trade Organization for Sustainable Packaging (Contd)

Environmental Leader reports that the

Michigan-based American Institution for

Packaging and the Environment (Ameripen) will

"advocate on public policy relating to packaging

and the environment. It will collaborate with trade

associations, academic institutions, non-profits

and government agencies to facilitate relevant

research and data collection."

The association, which takes after similar

European and British organizations, will take a

"material-neutral" approach to packaging and in

addition to public policy will focus on education

and outreach, issue management, statistics,

research strategies, and communication tools.

Environmental Leader writes that it "will

encourage science-based decision making on

sustainable packaging initiatives. It will advocate

measures that are environmentally, socially and

economically sound, Ameripen said."

SmartPlanet points out that some companies, like

Coca Cola because of its PlantBottle, already have

a vested interested in continuing to improve the

sustainability of their packaging, while for others

that have run into stumbling blocks—"consider

the case of Dell and its bamboo boxes -- this

group could help take a load off."

(treehugger.com 10 March 2011)

Bio-Plastics



These are the news derived from regional

publications, translated using online tools,

hence the medium quality of translation.

CHINA

The duty-paid price of U.S. corn to China port rose slightly from 10th Feb

According to Dow Jones News Chicago on 10th,

February, U.S. corn futures closed slightly higher

Thursday despite the decline in grain markets

around, but the tight U.S. corn supply concerns

and the strong export sales data reported by

United States Department of Agriculture provide

support for the market.

U.S. Department of Agriculture report on

Thursday showed the U.S. corn export sales of

last week exceeded 100 mio t, the second

consecutive week more than that, although some

traders worried about high corn prices would

suppress demand. Arlan Suderman said strong

exported sales are the indication of "panic

selling", because many countries are eager to lock

the supply. This year about 40% of U.S. corn will

be used for ethanol processing, the U.S.

Department of Agriculture down the forecast of

corn supply on Wednesday, major reason is the

increasing demand for ethanol industry.

Commodity Markets Council will held the annual

meeting in Florida on Thursday, Market

participants will focus on Chief Economist of

U.S. Department of Agriculture, Joe Glauber‘s

speech concerning what measures the U.S

government will take to the continue rising of

31 months high corn futures price. U.S. No. 2

yellow corn, the delivery time is March,

FOB price is USD 300.6 per t, together

RMB 1 979 per t; The total cost to China after tax

is about RMB 2710 per t, compared with the

previous day rose RMB 1 per t, with last year‘s

same period up RMB 803 per t. (cndfsj.com 11

February 2011)

Jilin corn prices on 20th,Feb, 2011

Jilin food enterprises continued suspension of the

acquisition of corn. Nong An Region traders

tentatively set list price of corn at RMB 1920 per

t, but there is almost no market. In Si Ping

Region, the local stock traders purchase dry

provision at price RMB 1950 per t, but the actual

purchase amount is very limited.

Overall, Jilin native corn prices are still showing

strong momentum, this website will continue

focusing on post-market situation. Deep

processing enterprises in Jilin Province are still

under the state of suspension of the acquisition of

corn. Most parts of Jilin Province recently are in

good whether condition, temperature is generally

in the minus 3 degrees to minus 11 degrees , the

corn deep processing enterprises in the province

including the Changchun and Dacheng area are

all still in suspended state of acquisition of corn.

Some traders of parts of the main maize growing

areas in Jilin Province have been gradually listed

price and restored the acquisition, but the actual

acquisition situation is quite different.

JiuTai Region: Local individual traders currently

listed corn with 25% water content at price of

RMB 0.83 per kg, but almost no market, the corn

shipped after the Spring Festival are all the stock

from pre-holiday purchase, the price is

RMB 1920 -1930 per t, which loaded to container

in Bayuquan port, nobody is willing to send food

for local country reservoir.

Huadian region: Local stock trader currently

purchase corn with 28% water content at price of

RMB 0.785 per kg, the cost after drying is

RMB 1920-1930 per t, the price of direct

acquisition of corn (water content within 15%) is

RMB 1950 per t, the acquisition volume is

relatively better that other areas in the Province,

currently, the daily corn acquisition volume of

whole Huadian area is about 4 to 5kt.

(ymjgw.com 20 February 2011)




Corn prices rose in Jiangsu market last week

According to market monitoring, Jiangsu corn

market rose last week. In the South part, Nanjing

region, the arrival price of the Northeast origin

second corn (with 14% water content) is at

RMB 2150 per t, the price is keeping same with

last week. Wuxi market is RMB 2.24 per kg

which rose RMB 0.02 per kg comparing with last

week.

In Changzhou region, the arrival price of first rate

Tongliao origin corn is at RMB 2 160 per t, up

RMB 20-30 per t; North China corn, arrival price

RMB 2150 per t, up RMB 10-20 per t, water

content less than 15%; Huanghuai corn, arrival

prices is about RMB 2060-2080 per t, up RMB 20

per t, water content 15% or so.

The wholesale price of corn in Taixing market

located in central of jiangsu province is

RMB 1.08 per kg, up RMB 0.01 per kg and the

retail price is RMB 1.12 per kg, up RMB 0.02 per

kg. Wholesale price of Rugao region remained at

RMB 1.04 per kg and the retail price is about

RMB1.07 per kg, up RMB 0.02 per kg.

Xuzhou east market, in Northern region of China,

the average origin corn purchase price is

RMB 1.05 per kg, up RMB 0.03 per kg,

individual high grade corn prices rose to

RMB 1.06 per kg, of which the village home

purchasing price by individual grain broker is

RMB 1.01 per kg; feed processing enterprices‘

purchase price is RMB 1.06 per kg; Farm

purchase price is RMB 1.06 per kg; state-owned

enterprises purchase price is RMB 1.02 per kg.

The price of Xuzhou market is RMB 1.04 per kg,

up RMB 0.02 per kg; Prices in southern Shandong

market is 1.05 yuan / kg, up RMB 0.03 per kg.

Lianyungang market price is RMB 1.02 per kg,

upRMB 0.01 per kg.

Corn prices will rise slightly later.


Corn prices rose in Jiangsu market last week (Contd)

Firstly, a number of processing enterprises like

Zhongliang, suspended acquisitions corn in the

Northeast to give way to the reservoir, though the

acquisition progress is not satisfactory.

Although most companies are gradually

suspended corn acquisition in Northeast, China

Grain Reserves Corporation‘s purchasing progress

in local has not thus been strengthened. The main

reason is : Despite a substantial increase of corn

purchasing and storage price in the Northeast this

year, but compared to market prices, the policy of

increasing purchasing and storage price is of no

advantage at all, pressure of corn prices going up

continue to increase later.

Secondly, the Northeast stop production of starch,

domestic starch prices rose rapidly, in the North

China, starch and corn prices rise in the

meanwhile. Northeast deep processing enterprises

have ceased production to make way for the

reservoir, the domestic supply of starch reduced

and prices rose fast. According to our

understanding, the profit of starch companies is

relatively high, obviously raising corn price has

its significance.

Thirdly, there is no price advantage of imported

product temporarily but will have long-term and

increasing impact on the domestic market. As the

increasing corn price of international market,

imported corn prices has lost its advantage.

U.S. Gulf No. 2 yellow corn, the delivery time is

March, FOB price is USD 276 per t on 25th,Jan,

together RMB 1818 per t; The total cost to China

port after tax is about RMB 2562 per t. Corn

import is expected to be a sharp fall in the coming

months. However, in the long run, domestic corn

demand is with a rigid growth, importing corn to

fill the lack of corn in domestic market will be a

norm, the international corn prices have great

impact on the domestic market

(info.ch.gongchang.com 21 February 2011)




February 24 corn early assessment: Focus on supply worries the U.S. corn closed higher rebound Chicago Futures Exchange (CBOT): Corn futures

closed higher on rebound in 23 markets. Most

active CBOT 5-month contract corn futures

closed up 12 cents, or 1.7%, to close at

USD 7.02 1/4 per bushel.

Analysts said they expect the market will hit a

new high in the coming weeks. Analysts said

rising corn prices need to ease the demand and to

attract farmers to expand acreage this spring to

add supply. Large acreage can not ease market

concerns, because the bad weather also hurt corn

crop.

Later this week, the U.S. Department of

Agriculture Outlook Forum at its annual meeting,

announced its estimate of crop acreage and

supply. Last week the government released the

report of the baseline forecast than expected corn

plantings, to help drive down prices.

Dalian corn futures sharply Tiaokongdikai 23, and

was test a low, late pared losses, the major 1109

contract closing price of RMB 2 392 per t, down

RMB 47 per t. Overnight rebound in U.S. corn

closed up disk, and the domestic corn supply and

demand situation is tight, and strong domestic

stock situation has not changed, is expected to be

limited downside corn market outlook, market

consolidation low bias.

In addition to external disk impact, the domestic

market is relatively stable, cash corn prices

remain strong pattern of postganglionic operating

rate of recovery in maize production company, is

boosting demand for corn. Overall, the corn

outside the tray to adjust to follow the bad

digestion, but the market remains bullish

potential, after a period of consolidation, the corn

is expected to gradually stabilize, downside is

expected to remain limited. (feedtrade.com.cn 24

February 2011)

Agricultural information: part of compound fertilizer enterprises intent to increase price

Corn starch

The corn starch market is active generally today,

general price rise by RMB 50 per t in different

area. The mainstream ex-factory price is

RMB 3200-3300 per t in Shandong region, Hebei

region is RMB 3000-3050 per t, Heilongjiang

region is RMB 2900 per t, Jilin and Liaoning

region is RMB 3000-3020 per t.

At present the overall inventory levels in northern

areas is general, individual small manufacturers

reflect that the supply is a little tight. Most traders

and downstream processing enterprises in

southern area market currently are still waiting

and watching the situation , but the market inquiry

increased, the market trend is expected to be more

clear this week with the gradually adjustment of

starch‘s price, but these two days, starch price will

still mainly increased.

Potato starch

Inquiry in potato starch market increased after the

year holiday and have great intention to increase

the price, some bargain-hunting traders to hoard

goods, the ex-factory price of potato starch is

slightly increased, the transaction price of Yunnan

superior grade flour price increase by RMB 500

per t, some manufacturers in Gansu and Ningxia

region raised by RMB 300 per t.





Agricultural information: part of compound fertilizer enterprises intent to increase price (Contd)

Individual manufacturers‘ offer have a tentative

rise, Yunnan potato starch enterprises have a

strong intention to pull up and increase the price

on behalf of "Verbatim", Yunnan "Verbatim"

potato starch manufacturers to offer tax-included

price at RMB 13 200 per t, the ex-factory price is

RMB 12800-13000 per t, the price of goods going

between friends is RMB12 500 per t, the

transaction price increase by RMB 500 per t.

The price of Dutch "windmill" brand potato starch

Guangzhou market is RMB 370 per bag, the price

increased by RMB 30 per bag, equivalent to

RMB 14 800 per t‘s high prices. Yunnan

"Verbatim" and Dutch "windmill" potato starch

tentatively increased price after new year initially

which boost the overall market raising of the

potato starch price, the offer of first grade potato

starch in Gansu and Ningxia region has an

intention to increase and the ex-factory prices

range is large, between RMB 11 000-11 500 per t,

the arrival price of the Frontier Snow" brand of

first grade potato starch powder in Guyuan

Ruifeng of Ningxia province, is

RMB 11300-11600 per t, up RMB 300 per t.


Agricultural information: part of compound fertilizer enterprises intent to increase price (Contd)

Sugar

Wholesale market in Liuzhou kept the shock

consolidation trend in the morning, except the 023

contract‘s price falling at closing time of this

morning, the rest contract price all rose between

RMB 4-28, the closing price of 023 contract was

RMB 7 299, the offer is RMB 15 down, affected

by this, today‘s spot price of the main producing

areas is generally steady and sugar Group Sells at

Proper Price, transaction is generally subdued.

The spot price slightly lower in East China,

Central China and Central Plains region, the price

is RMB 7 520 per t in Shanghai, down RMB 30

per t compared with the previous trading day, and

the rest area‘s turnover was subdued; In most

parts of western South China, the price is

adjusted, the turnover is generally light; The price

of North China and Northeast China go up and

down alternately and trade is subdued. Sugar price

is expected to be weaker in the stable state.

(caihuanet.com 16 February 2011)

Global corn prices rising highly and Chinese increasing imports of Australian feed distilled grains sharply Since the New Year holiday, along with the

temperature rising, there are many talks about

food prices. Recently, the reduction of Global

Supply of Corn and the increasing price attract

much concern both in domestic and international

market. Most industry insiders believe that the

corn price is likely to rise and may exceed the

2008 record of USD 8 per bushel due to the strong

demand, lacking of planting area, weather risk

and so. The Current Market Price of corn futures

in Chicago reached USD 7 per bushel.





Global corn prices rising highly and Chinese increasing imports of Australian feed distilled grains sharply (Contd)

According to yesterday‘s China Maize Network

information, the exit price of corn (water content

within 15%) in the Northern Port is

RMB 2140-2150 per t, up about RMB 10-20 per t

than previous day. Corn purchase price is

RMB 2 060 oer t within the Port, up RMB 10 per

t. Despite the small transaction volume, many

traders remain believe the price will rise later.

Guangdong market which is the important

national corn sales areas, has been also affected

by the recent bullish Market, the corn price is

basically RMB 2239 per t. According to sources

from the Port-related staffs in Guangdong, the

Current Maize stocks in Guangdong ports is about

0.3 mio t, the transaction volume is expected to

gradually increase after the Chinese New Year

Holiday.

The selling peak came from the first week of last

month, Corn price had dropped slightly, but

farmers generally hold the corn and hope price to

raise, in addition, the development of animal

husbandry looks well, so demand for feed corn

rose further. It is believed that more and more

enterprises will gradually start to purchase the

corn, and with the wheat affected by drought, it is

not surprising that corn price continue to rise

Imported distilled grains instead of corn in

China

US Grains Council had expected China's corn

import in 2011 will reach 9 mio t, but because of

soaring prices, some of the imported plan has

been canceled. In fact, the imported dry distilled

grains from United States had exceeded 2.9 mio t, replacing 1.5 mio t imported corn. Under the

situation of rising grain price, it has been a

consensus of lot of analysts to import large

quantities of dry distilled grains. (futures.jrj.com.cn 18 February 2011)

RUSSIA

Production of starch in Belarus in January-June increased by 35,8%, products from potatoes - by 1.8%

Production of dry starch in Belarus in the first half

of 2009 amounted to 4.842kt, up 35.8% over the

same period last year, told Interfax-West "in the

National Statistics Committee (National Statistics

Committee).

Enterprises Belgospischeprom up to six months

have produced 1.167 t of starch, which is 1,2%

less than in January-June 2008, the enterprises

subordinate to the oblast executive committee -

2.213kt (67.5% more), city hall - 903 t (34,8%

more), National Academy of Sciences of Belarus -

509 t (29,2% more).

Manufacture of potato products in Belarus in

January-June 2009 amounted to 2.553 m and

increased compared to the same period last year to

1.8%. The largest volume of such products have

made the company Belgospischeprom - 1.76kt,

which is 12.2% less than in January-June 2008.

Legal entities without departmental affiliation in

January-June produced 733 t of potato products,

which is 62,5% more than the same period of

2008, Belkoopsoyuz - 41 t (36,7% more).

Enterprise NAS of Belarus produced 15 t of

potato, which is 16.7% less than the same period

last year. Production of dry potatoes during

January-June was 36 t (67.3% less than the same

period in 2008).

Starch reserves in the warehouses of the

enterprises on July 1 totaled 6.86 t, which is 8.5

times greater than the average monthly production

of potato products - 361 t (84,8%), dry potatoes -

-8 t (133.3%). (foodnewsweek.ru 04 March 2011)




Sheikh invests in ethanol plant On the basis of the sugar Babinski Illinetskogo

district Vinnitchina build a plant for producing

ethanol - alcohol is added to the fuel. 100 mio

euros invested in the construction of the United

Arab Emirates and Swiss Finance Facility and the

company Bestinvest.

Sheikh Arab Emirates is interested in building

complex Babinski - says Chief Financial Officer

"Bestinvest Ivan Nemirovsky. - In the city of

Dubai building world's largest oil refinery walked.

Since its launch Arab Emirates will begin to sell

ready-made diesel fuel and gasoline. The most

predictable market for them is Europe. EU

standards require that gasoline was at least 10%

ethanol.

He will be extracted from corn. From the residual

mass will produce a dry granular bard high-

protein and protein. She fed cattle.

The plant will produce 320 thousand liters of

ethanol per day. To do this, 70 thousand hectares

of corn.

To organize the production investors plan to open

a railway station Dashivskaya. At the plant will

create 200 jobs. (gazeta.ua/ru 25 March 2011)

EUROPE

Nuplas begins construction of a plant to produce bioplastics for packaging

Nuplas (York, UK) launches the construction of

the plant to produce bioplastics second

generation, based on polylactic acid (G2 PLA).

Biopolymers will be used in the manufacture of

packaging, wrote Plastinfo. To build a plant with

capacity of 5kt per year required an investment of

11 mio pounds (EUR 13 mio).


Nuplas begins construction of a plant to produce bioplastics for packaging (Contd)

Raw materials for the new production - namely,

lactide will be delivering in the Far East.

Approximately 1.2 mio pounds of investment

funds will be used to manufacture about 1kt of G2

PLA with the use of industrial outsourcing for

obtaining approval from the manufacturers

packaging. It is expected that the demand for

biodegradable polymers will be the manufacturers

of thermoformed packages, as well as packaging

films for fresh food and supplies to the short shelf

life.

Founder Nuplas Peter Reineck believes that the

production of PLA from wheat and other crops in

the UK would be profitable and environmentally

friendly. He said that the projected demand for

such materials in the EU increased in 2025 to

650kt per year and the plant in the UK will be

able to capture up to 20% of the market.

According to Mr. Reineck, there are a number of

market drivers for biodegradable materials. They

include the replacement of petroleum-based

polymers, reducing emissions of carbon dioxide

in the atmosphere, the guaranteed delivery system

that will reduce dependence on oil and give the

opportunity to receive renewable energy from

recovered waste. Currently, the European Union

is working on an adaptation program of

bio-products and Reineck believes that such a

program can be implemented within 12 months.

PLA polymers are the first generation are

imported from the United States and revealed the

existence of a market for such materials, but they

have a relatively small number of applications.

Nuplas has a single European license for the

technology to produce bioplastic second

generation, based on polylactic acid (G2 PLA). In

the long run, the plant hopes to increase

production capacity to 130kt per year.

(news.unipack.ru 28 February 2011)




Quotas on exports of maize will be distributed at the auction

The distribution of quotas for export of 2 mio t of

maize from Ukraine in the second quarter of 2011

will happen at auction. This was reported by

Minister of Agrarian Policy Nicholas Prisyajnyuk.

"Tuesday will consider a bill of auction that is

open bidding, and money from the distribution of

quotas will be spent on upgrading the grain

industry," - he told journalists in Odesa.

Recall that in early October 2010 the Ukrainian

government introduced quotas for grain export in

the period up to December 31, 2010. Late last

year it was extended until March 31, 2011. In this

case, the total size of quotas has been increased by

1,5 mio t to 4.2 mio t.

As reported before, the government decided to

extend the quotas for grain even in quarters,

increasing the quota on the export of maize by

2 mio t.

During this time the quotas were distributed twice

a way that caused then sharp criticism from

market participants: Many companies were unable

to get the opinion of the Ministry of Agrarian

Policy and the availability of food grains, which

are necessary for applying for a quota.

(irtafax.com.ua 31 March 2011)

SOUTH AFRICA

South Africa: estimates of corn production down

According to official sources, the experts state

analytical agency Crop Estimates Committee

(CEC) lowered its estimate of corn production in

South Africa in 2010/11 MY (May-April) to

10.83 mio t against 11.04 mio t last forecast.


South Africa: estimates of corn production down (Contd)

In particular, the collection of white maize is

estimated by analysts at 6.26 mio t, while yellow

– 4.6 mio t.

The downward adjustment index was the result of

excessive drought in the corn belt of the country,

which reduced grain yield. In addition, evaluation

of the acreage of maize in this period was also

lowered to 2.37 mio t against 2.38 mio t last

forecast.

We note that recent estimates of experts CEC

regarding the production of maize in South Africa

in 2009/10 were published on the level of

13.1 mio t. (apk-inform.com 25 March 2011)

VIETNAM

Floor price of rice exports increased 2.1% to USD 490 per t Rice exports from Vietnam rose to meet a demand

from neighboring countries in Asia and Africa,

helping to reduce pressure on real wages and

inflation in the region affected by the political

crisis Libya and natural disasters in Japan. Of

VFA data showed that rice exports from our

country so far this year average USD 478 per t,

FOB, up nearly 2% over the same period last

year.





Floor price of rice exports increased 2.1% to USD 490 per t (Contd)

Our country's rice supply is now plentiful through

the winter-spring rice crop in the Cuu Long River

Delta provinces. So far, farmers here have

harvested 81 000 hectares of crops, with paddy

output is estimated at 5.35 mio t. Harvest is

expected in the first half ended in April.

Although plentiful supply but the price of rice

increased the prospects of our country is in

coming weeks following information in the

Philippines bought 200kt of rice between the two

governments agreed.

Date 23/3, National Food Agency Philippines

(NFA) has agreed to import 200kt of rice from

Vietnam for this year plans to buy rice before the

harvest begins in July.

NFA rice is negotiating with Thailand. Thai

traders said they would be hard to achieve greater

agreement with Manila as the price of rice higher

than Thai rice of Vietnam.

Experts said that the Philippines for rice is very

good now because the world rice price has

declined significantly due to the countries from

Asia to Africa has abundant reserves of wheat,

corn and soybeans to stop food inflation.

Under this agreement, the Philippines to buy 25%

broken grade rice for USD 480 per t, lower than

the budget projected USD 550 per t C & F. This

move to FOB price is USD 440-445 per t - less

than the floor price by the Vietnam Food

Association rules are USD 470 per t applied 24/3

but still higher than actual transaction prices our

present.

Date 23/3, 25% broken rice price in Vietnam at

USD 410-415 per t, FOB Saigon Port. In

Thailand, 15% broken rice price, customers

typically purchase price Philippines 475-480 per t,

FOB.

Floor price of rice exports increased 2.1% to USD 490 per t (Contd)

The NFA said it was pleased to get a good price

this time with 200kt of rice imported from

Vietnam. Philippines plans to buy more rice from

Vietnam in the second quarter.

In addition, stable demand from China will also

assist Vietnam's rice price. From mid January to

now, China has bought 70kt of rice from Vietnam.

Vietnam Food Association said it would raise the

floor price of rice exports since 24 March 2011.

Accordingly, the floor price of 5% broken rice

exports increased 2.1% to USD 490 per t, 25%

broken rice floor price rose 2.2% to USD 470 per

t. The prices on the FOB price packing is 50 kg

per bag.

Thus, from the beginning of this year, VFA has

adjusted prices seven times. Latest, on 20/3, VFA

adjust rice export floor price reduction of 5%

broken from USD 500 per t to 480 USD per t and

25% broken rice from USD 480 per t to 460 per t.

(tamnhin.net 25 March 2011)

China demand boosts cassava price

Due to demand from mainland China, traders are

buying large quantities of cassava, causing the

domestic price to go up 40-45% compared to last

year. The export cassava price also increased

during this period.





China demand boosts cassava price (Contd)

According to the Viet Nam Market Analysis and

Forecast Joint-Stock Company Agro-Monitor,

domestic sliced cassava is selling for VND 6 300

per kilo.

The export price of tapioca starch to China has

increased to USD 550 per t. The Plant Quarantine

Sub-Department of Region VIII said 350-400 t of

cassava were being exported to China daily

through the border gate at Lao Cai.

In October last year, Chinese traders travelled to

Viet Nam to pay deposits to agents in Phu Yen,

Lao Cai, Yen Bai and Lai Chau provinces to buy

cassava. The Chinese market has faced a large

shortage, especially of the cassava varieties and

sliced cassava.

The domestic traders have taken full advantage of

the situation to collect fresh, dried and sliced

cassava as well as cassava varieties to transport to

Quy Nhon port in central Viet Nam for export to

China.

The Phu Yen Department of Agriculture and

Rural Development said in 2010-11 crop the

province grew 12,500ha of cassava, with an

estimated output of 200kt. However, the current

cassava purchases are expected to cause a

shortage of cassava varieties and affect production

and long-term cassava cultivation.

According to the Customs General Office, Viet

Nam exported 1.667 mio t of cassava, earning a

turnover of USD 556 mio last year.

Sliced cassava accounted for 56.8% and tapioca

starch 42.9%. China remained the biggest

importer of Vietnamese cassava last year,

accounting for 94.8% of the total export turnover.


China demand boosts cassava price (Contd) The Ministry of Agriculture and Rural

Development said this year, the areas for growing

cassava was about 500 000ha, with output of

about 8.9 mio t, higher than last year‘s output of

8.52 mio t.

According to an annual report of the cassava and

tapioca starch industry and AgroMonitor‘s

forecast, this year‘s total demand for fresh cassava

for domestic production is about 8.12 mio t.

That includes 1.89 mio t for ethanol production;

2.67 mio t for foodstuff processing and animal

feed production; and 3.56 mio t for tapioca starch

production.

Thus, there is only 780kt for export, equivalent to

355kt of dried sliced cassava.

However, China has begun increasing its imports

of sliced cassava and fresh cassava, which could

increase VietNam‘s exports up to 4-5 mio t.

As a result, the domestic tapioca starch processors

and animal feed producers will face severe

competition in buying raw materials. Experts said

a long-term development strategy for the industry

should be created, including solutions that would

balance the supply and demand for exports and

raw material supply for domestic production.

(vietnambusiness.asia 23 March 2011)


Starch Italics 9th Edition

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