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GIRACT
Starch Italics
GIRACT
Starch Italics StarchItalics
GLOBAL STARCH REVIEW
December/January 2010 CONTENTS
Starch Industry Overview
p.1 Breeding crops for the next decade
Cassava processing: Ekiti state plans for
integrated bio-gas
p.2 Limagrain: Select the best fodder beet
varieties for an extra 1.2t/ha of dry matter
(DM) yield
Feed Outlook: Industrial uses dominate
growth in corn use
p.4 China‘s distiller‘s grains imports ‗could
rocket‘
p.5 Crop strategy paying off
New Forage maize varieties from British
Seed Houses
Scientists urge swift action to protect
cassava crops
p.6 Govt to spend NGN 25 bio n on
agricultural development
p.7 Precision breeding creates super potato for
amylopectin starch
p.8 Herbal supplement of baby food
p.9 Starch prices may rise on low maize
output
A good binder for starch replacement in
charcoal briquettes
p.10 Houston to replace plastics with starches
p.11 Bio-products could soon lower oil prices
by replacing petroleum in plastics
p.12 Mexican Coke brings back the sugar
Tapioca flour release plan approved
Starch Industry Overview (Cont’d)
p.13 Pepsi throwback
Corn groups hit as drinks makers return to
sugar
p.14 How subsidy makes alcohol from grain
competitive
Zebra chip research gets USD 3.9 mio in
funding
p.15 Potato harvest shows Zeba soil moisture
technology holds water; boosts yield and
grade
p.16 AKR receives shareholder approval of its
IDR 540 bio rights issue
Sirane gets set for a fruitful year ahead
p.17 Plant-based plastics to replace petroleum
plastics?
p.18 Plantic inks deal to improve biodegradable
plastic supply chain
p.19 Groundbreaking cellulosic bio-fuel
technology moves toward
commercialisation
Mitsui plans ethanol plant
p.20 Government of Canada supports next-
generation bio-fuels project
Ethanol Future
Ethanol makers seek more state help
p.21 Lower corn grades have Casco turning to
the US; Greenfield taking wait-and-see
approach
p.22 AE Biofuels to restart Cilion ethanol plant
(Contents continued on next page)
GIRACT
Starch Italics
GIRACT
Starch Italics StarchItalics
GLOBAL STARCH REVIEW
December/January 2010 CONTENTS
Starch Industry Overview (Cont’d)
p.23 China completes cassava genome
sequencing for energy use research
Mix and match corn-based co-products of
ethanol to achieve a balanced ration
p.24 Future of the company: Poet
p.25 Süd-Chemie & US technology licensor
GTC technology agree on strategic
alliance
Univar steps up business in the Middle
East and Africa
p.26 Gulshan Polyols‘ members approve issue
of FCCB
Cargill collects another Baldrige award
p.27 China corn processors to become global
players
China‘s got a sweet tooth
p.28 Roquette America, Inc. acquires more
property along riverfront
p.29 Deals signal revival in buyout activity
Riddhi Siddhi closes operation at
Podicherry unit
GLOSSARY
bio ‗000 000 000
crore ‗0 000 000
JV Joint Venture
k ‗000
kt ‗000 tons
klpd kilo litres per day
lakh ‗00 000
lpd litres per day
mio ‗000 000
M&A Merger &Acquisition
pa per annum
t tons
tpa tons per annum
tpd tons per day
tph tons per hour
tpm tons per month
Vol.1-09 © GIRACT 2009 1
StarchItalics Global Starch Review
Starch Industry Overview
Breeding crops for the next decade
Plant breeder Bill Angus talks to Teresa Rush
about his hopes for the next decade in terms of
wheat breeding and how breeders will meet the
challenges. The next 10 years, in wheat breeding
terms, will be about achieving a massive boost in
production, against a backdrop of increasing
environmental constraints. Nonetheless, the next
decade could potentially be one of the most
exciting for wheat breeding developments, says
Bill Angus.
―Worldwide wheat production is currently about
600 mio t. By 2030 we will need to produce
900 mio t to meet the extra demand for food
resulting from population growth‖.
―There are two in particular I think need to be
looked at very, very seriously; one is hybrid
wheat and the other is GM. What we‘ve got to say
is GM must be considered as potentially one of
the building blocks to help us achieve sustainable
output‖.
There are already signs the plant breeding sector
is adapting in order to meet the challenge. Most
recently there has been increasing interest in the
sector from R&D-based agrochemical businesses.
Within the last few months Monsanto has
renewed its interest in wheat breeding via the
acquisition of the US Westbred business, says
Angus. What is driving this investment is a
fundamental of the worldwide wheat market - the
need globally to produce more wheat.
―We are starting to see companies coming back
into wheat breeding because of this. The
fundamentals say the price of wheat has got to
rise, with demand increasing and supply chains
becoming more limited. If you look at corn
(maize) yields in the US, they‘ve gone up
massively. Why because plant breeders have
invested in developing new varieties‖.
(Continued in next column)
Breeding crops (Cont’d)
―Agrochemical giants, such as Monsanto, invest
significantly into R&D. That is manifested in the
increasing output we are seeing in maize‖. In
stark contrast, wheat breeding in the US has seen
much lower levels of investment and, as a
consequence, yields have increased at a much
slower rate.
Worldwide there are traits already identified in
wheat, which with GM technology, and a
refocusing of investments, could provide a
significant yield boost within 10 years he
maintains.
Such developments will require funding and, with
total royalty income from wheat amounting to
GBP 13-14 mio pa, it is about time some of the
revenue generated along the food chain is
returned to plant breeders, he argues. ―I think if
we take some of the technologies available to us
now, we stand a chance of increasing our average
yield in the UK from 8t/hectare to 12t/hectare‖.
The Recommended Lists have done a good job for
farmers - but they are due for a radical rethink if
they are to retain their value over the next 10 years
he maintains. ―What farmers want is more data,
better data - and a better quality of interpretation
of that data‖.
(Farmers Guardian 28 Dec 2009)
Cassava processing: Ekiti state plans for integrated bio-gas
Ekiti State government has concluded plans to
establish an integrated bio-gas powered Cassava
processing facility in Arugba, a town in
Omuo_Ekiti in collaboration with a private
company, Arog Bio Allied Agro Services.
The project which is to encourage large scale
production of food and boost economic activities
at the grassroots is also to create employment
opportunity for thousands of jobless Nigerians.
(Continued on next page)
Vol. 1-10 © GIRACT 2009 2
StarchItalics Global Starch Review
Starch Industry Overview
Cassava processing (Cont’d)
Dr. Aroge, a medical doctor, who is also a
prominent member of both Cassava Growers
Association of Nigeria and All Farmers
Association of Nigeria (AFAN), said that the fully
integrated bio-gas powered cassava processing
plant will be sited on a 7 acres of land in
Omuo_Ekiti which has been approved by the
traditional council of the town and the Certificate
of Occupancy (C of O) signed by Governor Oni.
The state of the art cassava processing machines
to be installed will be processing cassava tubers
into various cassava by-products into native starch
which will be categorised as food, pharmaceutical
and industrial grade; modified starch
(Monosodium glutamate), citric acid and glucose
syrup, flour; chips-pellets as well as gaarve and
other consumable products.
The gaarve to be produced on a large scale is to
serve as a buffer to any effect of the project on
food security, while the waste water is to be used
to produce bio gas for electricity generation for the
facility.
Dr. Aroge explained that the company is at present
working with 20,000 cassava farmers especially
now that we are in the dry season for modified
out-grower service scheme called the Grower
Services Programme (GSP) for the year 2009/2010
planting season. (vanguardngr.com 04 Jan 2009)
Limagrain: Select the best fodder beet varieties for an extra 1.2t/ha of dry matter (DM) yield
Fodder beet varieties, Robbos and Blizzard,
produced an extra 1.2t/ha of DM yield compared
to Kyros, according to an analysis of trials data
spanning 10 years, and carried out by Limagrain
UK. The extra energy gained from the higher
yield is worth GBP 160/ha.
(Continued in next column)
Limagrain: Select the best fodder beet varieties (Cont’d)
Limagrain UK's Martin Titley explains: "There is
no national list or independent trials programme
for fodder beet in the UK, so Limagrain carry out
a variety trial each year to provide performance
data from which farmers can evaluate which
varieties are best to grow.
―Fodder beet has risen in popularity over the past
two years: it is an excellent feed ingredient to
balance high starch rations as it is high in sugars,
it is also very palatable‖.
(driffieldtoday 12 Jan 2010)
Feed Outlook: Industrial uses dominate growth in corn use
Based on estimates by Chinese market analysts,
industrial uses have accounted for nearly all
growth in corn use in China since 2000 (fig. 2). In
1985, less than 2 mio t of corn was used for
industrial processing; however, the amount grew
throughout the 1990s, reaching 10.5 mio t in
2001.
With the strong government support and robust
demand, industrial use of corn then doubled to
20 mio t in 2004 and doubled again to 40 mio t in
2006. The growth in industrial use of corn slowed
in 2007 and reversed in 2008 as the slowing
economy reduced demand. Industrial processors
cut back production in 2008 when the Chinese
government set a minimum corn purchase price
that erased profits for many types of corn
processing.
Production of all corn products has grown rapidly.
A 2008 conference presentation by an official
from one of China‘s largest agribusiness
companies reported fourfold growth in industrial
use of corn in China over 1998-2007 (fig. 3) (Yu).
(Continued on next page)
Vol. 1-10 © GIRACT 2009 3
StarchItalics Global Starch Review
Starch Industry Overview
Feed Outlook: Industrial uses (Cont’d)
The largest single categories of use were starch
sugars (glucose, lactose, dextrin, maltose, HFCS,
and oligosaccharides) and alcohol for beverage
and industrial uses. Use of monosodium
glutamate was estimated at over 4 mio t of corn in
2007.
Production of lysine began in 2000 and accounted
for about 2 mio t of corn by 2007. Use of corn for
citric acid grew nearly fourfold in a decade.
Ethanol production used 11.6 mmt of corn in
2007— most of it for beverage, industrial, and
pharmaceutical uses.
Fuel ethanol production from corn began on a
commercial scale in 2004 at three designated
plants, which now consume about 3 mio t of corn
annually. Estimates of the amount of corn used in
industrial production vary and are complicated by
the wide variety of products and a lack of data.
In late 2008, ERS surveyed the corn market
reports of five grain market analysis organizations
in China and found their estimates of corn
industrial use for the market year 2006/07 varied
from 30 mio t to 40 mio t.
Estimates of industrial use as a share of domestic
consumption ranged from 22 to 27%, up from
about 10% in 2003/04. China‘s share of corn used
for industrial processing is already high by
international standards.
(Continued in next column)
Feed Outlook: Industrial uses (Cont’d)
Source: USDA, Economic Research Service using
USDA, Foreign Agricultural Service, Production,
Supply, and Distribution database, China National
Grain and Oils Information Center (NGOIC), and
Chicorn (yumi.com.cn).
Note: Chart shows FSI (food, seed, and industrial)
use as a share of domestic consumption of corn.
Animal feed accounts for the remaining share of
use. Data are for 2006/07 market year.
The growing use of corn for industrial processing
at first glance appears to reduce the amount of
corn available for feed; however, a significant
portion of corn used for industrial products
emerges as feed additives and feed co-products.
(cattlenetwork.com 16 Dec 2009)
Vol. 1-10 © GIRACT 2009 4
StarchItalics Global Starch Review
Starch Industry Overview
China’s distiller’s grains imports ‘could rocket’
Exporting distiller‘s grains to China has
‗enormous‘ potential, and could slow China's
return to being a major corn importer, a high-level
research team has said.
While China imported 8 000t of corn-based
distiller‘s grains from America last year, its pig
farmers could have taken 3 mio t - equivalent to
more than one-third of US exports.
And that‘s before taking into account potential
demand from China‘s poultry sector, which is
76% bigger than America‘s, and dairy, where the
national herd is nearly three times as large.
The grains, use of which typically cuts feed costs
by about 6%, are already prized in China by duck
farmers for giving the skin colour and yolk a more
yellow hue favored by consumers.
"The potential for growth is enormous," a joint
report by researchers at the UN, two US
universities and the US Department of
Agriculture, said following a visit to China.
Serious toxin problem:
Furthermore, China's own distiller's grains
(DDGS), typically as a by-product of brewing
demand rather than ethanol manufacture as in
America, were held by farmers in low regard.
Energy sources used in Chinese livestock feed
rations:
Sources % Used
Corn 87.4
Wheat 10.2
Barley 1.4
Sorghum 0.7
Other grains 0.3
Source: Fapri
(Continued in next column)
China’s distillers’ grains imports (Cont’d)
Besides having lower protein content of about 8%
compared with 27-34% in US, Chinese distiller‘s
grains were typically sold in wet form, leaving
loads vulnerable to product spoilage in a very
short period of time.
They were also dogged by concerns of toxic
fungal residues in the corn they were made from,
reflecting a "high humidity [growing]
environment" and poor storage practice and
facilities.
"Since whatever is in the [corn] gets multiplied
three times in the DDGS product, any presence of
myco-toxin in corn can possibly translate into a
serious problem in the DDGS," the report said.
Red tape:
One factor which might prompt a regulatory
rethink was the prospect of China returning in
2011 to corn imports which will reach 2.7 mio t
by 2018, on Washington estimates.
Make-up of ‗optimal‘ feed ration for finishing US
pigs (including DDGS):
Sources % Used
Corn 59.2
Soy meal 15.2
DDGS 20.0
Other 5.3
Source: Fapri
―Although there is a consensus that China will
need to import more meat or feed grains to meet
its fast growing food demand, what remains
uncertain is what mix of products it will import‖,
the researchers said.
(agrimoney.com 09 Dec 2009)
Vol. 1-10 © GIRACT 2009 5
StarchItalics Global Starch Review
Starch Industry Overview
Crop strategy paying off
Thailand: The prices of farm products are rising as
a result of the global economic recovery and
higher demand after adverse weather conditions
reduced crop yields.
But Deputy Prime Minister, Korbsak Sabhavasu
said that the government‘s new farm product price
insurance scheme is also playing a part.
Essentially, it is a form of income support for
farmers.
About THB 18 bio was slated to cover corn and
tapioca with THB 25 bio for rice. In terms of
sales, Korbsak said the government would opt to
sell key state stocks — rice, tapioca, and maize –
in relatively small lots of 200 000-300 000t,
instead of the millions of tons in the past, to curb
any adverse impact on local farm prices.
The government is in talks with potential buyers,
such as Malaysia, China, India and Indonesia, to
sell its milled rice stocks, estimated at 6 mio t. But
no prices have been agreed due to market
volatility.
Malaysia wants to buy 100 000-150 000t of 5%
broken white rice, while China needs to purchase
60 000-100 000t of glutinous rice.
The government has already sold 2.2 mio t of
tapioca chips this year and 650 000t of tapioca
starch, cutting its stocks to date to 1.2 mio t of
tapioca chips and 150 000t of tapioca starch.
The government has slashed its maize stock to
about 10 000t, down from about 1 mio t.
(American Chronicle 11 Jan 2010)
New Forage maize varieties from British Seed Houses
Forage maize growers seeking superior feed
quality or exceptional early vigor alongside high
dry matter yield will be well catered for in 2010
following the introduction of two new varieties by
British Seed Houses.
Utopia, bred by Syngenta Seeds, is the variety for
superior feed quality, combining great starch
content with highly digestible whole plant
material that produces high ME silage.
Early cob maturity is the reason for high starch
content whilst good ‘stay green‘ characteristics
lead to outstanding digestibility. With a dry matter
yield of 101%, this maturity class-7 variety
delivers a genuine combination of yield and
quality.
Sunboy, bred by Saaten Union, recorded the
highest early vigor score (8.4) of all varieties in
2009 Descriptive List trials. It therefore has the
characteristics to deliver a performance in
mainstream areas or when conditions are less than
ideal, and is ear-marked as a variety suitable for
growing under plastic.
Sunboy is also a very large plant and its dry
matter yield of 107% of control varieties in DL
trials show that it is a consistent high yielder.
(farminguk.com 11 Jan 2010)
Scientists urge swift action to protect cassava crops
Swift action must be taken to prevent severe pest
and disease outbreaks in cassava plantations
across Thailand and Southeast Asia, international
experts say. The measures include comprehensive
research, better regional monitoring and more
rigid quarantine procedures.
(Continued on next page)
Vol. 1-10 © GIRACT 2009 6
StarchItalics Global Starch Review
Starch Industry Overview
Scientists urge swift action (Cont’d)
International Centre for Tropical Agriculture
(CIAT) scientists have issued a ''red alert'' urging
the region to tackle pest and disease outbreaks in
cassava crops, quickly imposing strict quarantine
regulations on the movement of cassava.
―Without decisive action and donor support, we
expect a huge slump in cassava output in
Southeast Asia‖, said Bangkok-based Tin Maung
a cassava expert and soil scientist at CIAT. ―That
would be devastating for rural livelihoods in the
region‖.
Some 5 mio small farmers grow cassava in the
region, mainly to supply the starch processing and
animal feed industries. In Thailand, the industry is
worth USD 1.5 bio (about THB 50 bio) and the
country makes up about 75% of global cassava
exports, CIAT said. Department of Agriculture
officials attributed the rise in tapioca prices, from
less than THB 2/kg to THB 2.7 now, to the fact
that the cassava plantation area surged to
8.4 mio rai in 2008 from 6.7 mio in 2007.
Tapioca starch is extracted from the cassava plant.
But the uncontrolled expansion of cassava farms
led to disease outbreaks in some 100 000 rai
across the country —from the northeastern to
eastern provinces, and now to western provinces
such as Kanchanaburi and Kamphaeng Phet in
Central Thailand— said a source at the
Agriculture and Agricultural Cooperatives
Ministry.
The Agriculture Ministry has provided more than
THB 60 mio to address the problem, but concrete
action had yet to take place, the source said.
(Continued in next column)
Scientists urge swift action (Cont’d)
Tin Maung said mealybugs are sap-sucking
insects that weaken plants, resulting in leaf
distortion and lower root yields. ―Farmers
therefore need to select and safely store clean
planting material‖, he said. Establishing an
effective surveillance and monitoring system with
a GIS [geographical information system] database
is also essential‖.
Some analysts now predict Thai cassava output
will plummet by at least 30% this season, with
some farmers facing losses as high as 80%. Many
farmers have already abandoned their crops and
official figures show the area of cassava
plantations dropped to 8.2 mio rai this year.
―These pests and diseases will place a huge strain
on Thailand‘s cassava production, not only on the
incomes of 400 000 cassava growers, but also the
many laborers employed in the cassava industry‖,
said Tin Maung. (bankokpost 22 Jan 2010)
Govt to spend NGN 25 bio n on agricultural development
Nigeria: Akwa Ibom State Governor, Godswill
Akpabio, has announced that his administration
has earmarked over NGN 25 bio to develop the
agricultural sector of the state.
On the type of crops that the state would cultivate,
Akpabio said, ―Particularly, look at cassava
production, we have acquired a very robust plan
of what we called Akwa Ibom State Integrated
Farmers Scheme and outside that, we want to add
value so that we can also have a kind of thing that Nigeria has. You buy things from the farmers to
avoid loss. So, we are encouraging people also in
the cassava area because from cassava, you can
have a lot of flour and starch, which can also
develop an agro-allied industry that will now lead
to extraction that come with cassava that can
assist a lot in the area of medicine‖.
(thisdayonline.com 27 Jan 2010)
Vol. 1-10 © GIRACT 2009 7
StarchItalics Global Starch Review
Starch Industry Overview
Precision breeding creates super potato for amylopectin starch
Researchers at the Fraunhofer Institute for
Molecular Biology and Applied Ecology (IME)
have developed a way to speed up plant breeding
without using any form of genetic modification.
Tilling or targeting induced local lesions in
genomes, is claimed as a way of speeding up the
natural process of evolution. ―We are working
here with natural principles. In nature, sunlight
triggers changes in the genome‖, says Jost Muth
of IME. ―With the aid of chemicals, a vast number
of mutants can be rapidly obtained. With
chemistry, we accomplish the same thing – only
faster‖.
Until now, mutation breeding was an exhaustive
process. Growers had to plant the mutated seeds to
the field, and then wait until they reached the end
of their vegetation period in order to determine if
one of the genetic modifications achieved the
desired result. In addition, the effect of the
majority mutations could not be determined, since
the characteristic is only expressed in a
homozygous state.
In the speeded-up process mutated seeds were
germinated and as soon as the first leaves appear,
they are harvested. The researchers take a leaf
sample, break apart the cellular structure, isolate
the genome and analyse it. In this way they can
find out within a few weeks if a mutation has
attained the desired traits.
The technique has been applied to develop a new
breed of tilling potato which exclusively contains
amylopectin starch. This autumn the German
potato starch manufacturer the Emsland Group
processed the first crop. Not only can nutritional
starches for emulsifying soups and desserts be
extracted from it – it can also be used for paste
and coatings for paper and thread production.
(Continued in next column)
Precision breeding (Cont’d)
In a project sponsored by the Nachwachsende
Rohstoffe agency, researchers at IME, in
collaboration with the Bioplant and
Emslandstärke companies, found the super potato
germ. They had to examine the genome of
2 748 seedlings until just the right one was
identified that exclusively produces amylopectin.
From this germ, the first generation of super
potatoes was produced. These have active genes
that produce amylopectin, whereas genes that
trigger the formation of amylose are shut-off.
Until now, potatoes always contained both starch
types and industrial processors had to separate the
amylopectin from the amylase, an energy and
cost-intensive process.
This autumn, 100t of the Tilling potato, which
exclusively produces amylopectin, were
harvested. They can be processed as usual in the
regular production lines. The special measures
that would be required if they were genetically
modified, to separate them from other potatoes,
are not required.
―Special measures aren't necessary, because the
Tilling potatoes are totally normal breeds that
contain no genetically modified material‖, said
Muth. The example shows that conventional or
modern breeding methods can be speeded up if
the gene responsible for the expression of a
specific trait is a natural part of the plant.
(Science Business 10 Dec 2009)
Vol. 1-10 © GIRACT 2009 8
StarchItalics Global Starch Review
Starch Industry Overview
Herbal supplement of baby food
Wonder to believe that shoti, a perennial
rhizomatous herb with tufted large tapering
elliptical green leaves with brownish purple, short
stem and pink or yellow flowers, may be a
substitute of baby food. Actually it is a fact and
has already been proved by the scientists of the
carbohydrate research wing of the BCSIR
laboratories, Dhaka.
Shoti is closely resembled to turmeric in
appearance. Its tubers are also the same but white
to look at. They are large and fleshy. The shoti
starch is a product of white amorphous storage
polysaccharide extracted from tubers and used as
a substitute for arrowroot and barley.
It is highly valued as an article of diet, especially
for infants and convalescents. BCSIR Scientists
experimentally proved that shoti can be used as
baby food because of the presence of high quality
starch. This type of baby food can be enriched by
mixing with cow milk, vitamin A&D etc. Among
the scientists involved with this research are:
Md. Asaduzzaman, ex Chief Scientific Officer
and Md. Bazlul Karim Akanda, ex Senior
Scientific Officer of carbohydrate section.
Scientists also observed that various types of
glucose can be prepared after modification of
shoti starch by chemical process. This type of
glucose can be used in the industries like
confectionery, soft drink, rayon, tannery and even
pharmaceutical industries.
Shoti would once be used by our grandmothers
and mothers as indigenous baby food, but day-by-
day availability of imported baby food in the
market, their initiatives were nipped in the bud.
Shoti rhizome is pungent, bitter, fragrant, heating,
appetizer, vulnerary, anthelmintic, antipyretic,
alexiteric; destroys foulness of the breath; useful
in leucoderma, piles, bronchitis, asthma, tumors,
tuberculous glands of the neck, enlargement of the
spleen, epileptic seizure (Ayurveda). (Continued)
Herbal supplement (Cont’d)
The rhizome has a bitter, sharp, hot taste, and a
good odor; laxative, tonic to the brain and the
heart, aphrodisiac, alexipharmic, emetic,
emmenagogue, expectorant, carminative; useful in
gripping of children, pains, inflammations,
toothache (Yunani).
The fresh root is considered to be cooling and
diuretic; it checks leucorrheal and gonorrheal
discharges and purifies the blood. The juice of the
leaves is given in dropsy (Rheede).
The rhizomes possess aromatic, stimulant and
carminative properties. Employed as a stomachic,
and also applied to bruises and sprains. The root is
chewed to correct a sticky taste in the mouth; it is
also an ingredient in some of the strengthening
conserves which are taken by women to remove
weakness after child-birth.
In colds, it is given in decoction with long pepper,
cinnamon and honey, and the pounded root
applied as a paste to the body. The rhizome is
used internally in Cambodia as a stimulant, tonic
and depurative; it is administered in the form of a
tincture in malaise and vertigo, and given three
times daily to women during the two weeks which
follow delivery.
The corms are chewed by Cambodian mothers
who then apply them together with their saliva to
the head and body of children suffering from
convulsions. The leaves are used as plasters in
lymphangitis, furunculosis and adinites. (Indian
Medicinal Plants, K. R. Kirtikar and B. D. Basu,
2421).
Special Opinions: ―Demulcent, expectorant, and
aromatic, dose about 1 drachm‖ (Civil Surgeons -
John McChoghey & M.D. Shahjahanpore). The
rhizome is considered to be a cooling medicine,
also tonic and expectorant (Surgeon-Major
J.M Houston, Durbar Physician, Travancore).
(The New Nation 13 Dec 2009)
Vol. 1-10 © GIRACT 2009 9
StarchItalics Global Starch Review
Starch Industry Overview
Starch prices may rise on low maize output
India: Lower maize production and increased
consumption may firm up the starch prices.
Manufacturers expect a 10-15% rise in the days to
come. In the wake of low output in Andhra
Pradesh and Uttar Pradesh due to scanty rainfall,
country‘s maize production during the current
year (July-June) may decline by 1 mio t compared
with the last year.
Starch producers consume around 11-12% of
maize produced in India. ―Decline in maize output
would certainly have an effect on starch industry.
Starch manufacturers may face shortage of maize
in the coming months‖, said Gautam Choudhary,
MD of Santosh Starch Products based in
Ahmedabad.
―Currently, the price of dry starch is around
INR 20 000/t, which may surge by 10-15%‖,
Choudhary added. All India Starch
Manufacturers‘ Association (AISMA) president
Amol Sheth, too, agreed that starch prices would
rise as demand prospects for starch products look
bright.
The upward movement in prices is yet another
factor that may fuel starch prices. ―Maize prices
are currently ruling at INR 950 to
INR 1 000/quintal, which hovered around
INR 700-750 in the same period last year. This
indicates that starch prices would also remain on a
higher trajectory‖, said Vishal Majithia, MD of
Mumbai-based Sahyadri Starch.
Starch finds application in food, textile and
adhesives. Also, the use of starch in sugar
derivatives has also risen. Liquid glucose, which
is produced from starch, is used increasingly as a
sugar substitute for manufacturing confectionery.
―Firm sugar prices have forced many to use starch
as its substitute. This would further boost the
demand of the commodity,‖ said
Santosh Choudhary.
(Continued in next column)
Starch prices may rise (Cont’d)
Maize output in the country is estimated to fall by
1 mio t in 2009-10 (July-June) from 16 mio t last
year. ―Though the Kharif maize acreage in the
country was more or less the same, the production
in Andhra Pradesh and Uttar Pradesh was
adversely affected due to erratic rainfall. Maize
crop in Maharashtra and Karnataka was also
affected following scanty rain‖, explained
AISMA president Amol Sheth.
Maize is sown in both the Kharif and Rabi
seasons of the year. Kharif output of maize this
year is estimated to be lower by 1.5 mio t from
14 mio t in the last Kharif season.
―However, the sowing of maize in the Rabi
season (starting October) is currently under
progress and the industry players estimate it to
rise up to 3.5 mio t during the season. This will
take the total maize production in the country to
15 mio t in 2009-10‖, Sheth added.
(Business Standard 25 Dec 2009)
A good binder for starch replacement in charcoal briquettes
Manila: The effluent or wastewater from the
production of chichacorn (fried corn kernels) is a
good binder for rice hull and bamboo shavings in
making charcoal briquette. This award-winning
technology has been pieced together by
researchers of the Mariano Marcos State
University (MMSU), a six-campus tertiary
institution in Ilocos Norte whose seat of
administration product (charcoal briquette) out of
wastes (bamboo trimmings, rice hull or IPA, and
chichacorn effluents).
Briquette is a mixture of charcoal made from
various waste materials and molded in various
shapes and sizes with the use of starch.
Chichacorn effluents, which are abundant in
Ilocos Norte is a suitable binder and good
substitute for cassava starch in the production of
charcoal briquette. (Continued on next page)
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A good binder for starch replacement (Cont’d)
The new process is a variation of the kawayan
charcoal briquette (KCB) technology developed
by MMSU researchers Dr. Stanley Malab and
Jose Zaparalla. Dr. Malab is MMSU vice
president and concurrent director of the Ilocos
Agriculture and Resources Research and
Development Consortium (ILARRDEC), one of
the 14 regional R&D consortia coordinated by the
Philippine Council for Agriculture, Forestry and
Natural Resources Research and Development
(PCARRD).
Originally designed for bamboo wastes such as
small branches, leaves, shavings, and trimmings,
the charcoal briquette technology now includes
rice hull as production material, reported
PCARRD‘s Ricardo Argana.
KCB with chichacorn processing effluent has won
the most outstanding technology (research
category) of the National Symposium on
Agriculture and Resources Research and
Development (NSARRD). NSARRD is a yearly
PCARRD-sponsored activity that showcases
outstanding contributions of individuals and
institutions in the improvement of agriculture,
forestry, and natural resources R&D.
The KCB edification study, which also involved
MMSU researchers Beatriz Malab and Angelina
Tagay, likewise won second place in the Second
Luzon Cluster 7th
Regional S&T Competitions in
Industry and Energy R&D.
It was presented at the 28th International
Convention of the Philippine-American Academy
of Science and Engineering (PAASE) held
recently at Georgetown University, Washington
DC, USA; and at the Technology to People Media
Conference sponsored recently by PCARRD.
(philstar.com 27 Dec 2009)
Houston to replace plastics with starches
A new year means more new laws. Starting
1st
January, 2010, homeowners in the city of
Houston will be required to shell out more money
for bio-degradable and compostable trash bags for
leaves and yard trimmings.
The city says the new bags, made from starch,
will decompose within 6 weeks while the plastic
bags, made of petroleum, can linger for centuries
in landfills. The downside is the new bags will
cost more than twice the plastic bags.
The new bags cost more, about USD 0.7/bag
compared to USD 0.25 for each of the old bags.
The city says the higher costs will eventually lead
to taxpayer savings, as less landfill space is used.
―I like the idea‖ said Andrea Quinn. "But make
them affordable to everyone can purchase them.
My suggestion would be to make sure there are
enough of those bags available before we start
getting fines for using the plastic bags. That
would be ridiculous‖.
The city agreed and decided to move the program
start date to 1st February. A new law that requires
city residents to put their lawn clippings and
leaves in biodegradable bags has been delayed
until February 1. (39online.com 29 Dec 2009)
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Bio-products could soon lower oil prices by replacing petroleum in plastics
Cereplast CEO, Frederic Scheer, hopes that a
higher price for crude oil will soon make bio-
plastics attractive to the major manufacturers such
as Dupont and SASF. The Agence France-Presse
ran a profile of Frederic Scheer and his company
Cereplast which makes biodegradable
compostable plastics that, is slowly working their
way into use in a host of disposable items.
Cereplast plastic compounds can currently be
found in take-out cups, flatware, plates and
packaging – Solo, manufacturer of single-use
cups in bios, now has a production line using
Cereplast, and is among a growing list of other
bio-plastic companies.
The plastic is derived from starch-based resins, rather than
petroleum. (image: paperblog.fr)
Bio-plastic resins are made from the starches in
tapioca, corn, wheat and potatoes, and hold up
well under heat and stress. For more intensive
uses, Cereplast also has a hybrid line that
incorporates a maximum of 50% petroleum
derivatives, and which can be used in items such
as toys and car parts.
The growth of bio-plastics as an industry should
be of interest to any oil consumer, because plastic
manufacturing takes a sizable bite out of the
available supply of crude oil—in the US alone,
1.5 mio barrels pa go into just the production of
plastic water bottles.
The plastic is derived from starch-based resins,
rather than petroleum. While oil prices appear to
have stabilized for the time being, Scheer
forecasts an era where the price of oil drives even
chemical-producing giants like Dupont and BASF
to produce bio-plastics instead of petroleum-
derived plastic products. (Continued)
Bio-products could soon lower oil prices (Cont’d)
At current levels of demand for Cereplast,
USD 95/barrel is the point where bio-plastics
become more cost-effective, he said.
We‘re not there yet, but voluntary conversion to a
product that uses far less of such a precious
resource could do the same work as an oil price
spike. Indeed, taking plastics out of the oil game
could be a huge factor in keeping the price per
barrel permanently low.
Scheer makes a good argument for tying the
economic sense of bio-plastics to the
environmental one: ―It takes between 70-
100 mio years to make fossil fuel and you are
going to use your cup at Starbucks for 45 minutes
max‖.
Multiply that by the staggering 110 bio plastic or
plastic-covered cups (only cups!) that Americans
dispose of each year, and then factor in the fact
that around 70% of all plastic waste ends up in
landfills, non-recycled– and the plastics industry
starts to look like a giant sink for oil that might be
better used elsewhere.
Of course, there are those who might level some
of the same arguments at bio-plastic that have hit
bio-fuel–that it takes away land and crops from
food production, that its carbon savings aren‘t
what they‘re presented to be. Scheer is, however,
looking into algae for the next generation of
Cereplast (much like many bio-fuel producers).
The starches in algae are as resilient as those
derived from other plant sources, and algae can
grow quickly, in a variety of environments, and
for far lower prices than other crops.
Scheer hopes to have an algae-based plastic on the
market by the end of 2010 and projects that
Cereplast‘s sales will have doubled in that time.
(heatingoil.com 24 Dec 2009)
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Mexican Coke brings back the sugar
Sioux City: The major difference between
Mexican Coca-Cola and its north-of-the-border
counterpart, as explained by South Sioux City Hy-
Vee registered dietician Lindsay Lannan, is the
sweetener that goes into the respective sodas.
―Coke products made in Mexico are sweetened
using sucrose (another name for table sugar)
while Coke products made in this country use a
high-fructose corn syrup (corn syrups that are
commonly used to sweeten processed foods such
as sodas)‖, she said.
According to Lannan, sugar is substituted with
high-fructose corn syrup because the latter has a
longer shelf life and is less expensive than regular
sugar.
Indeed, a 12-ounce glass bottle of Mexican Coke
costs the same as its 20-ounce plastic bottled
American cousin at Hy-Vee. Another thing that
sets the two Cokes apart, said Lannan, is the
―refreshment factor‖.
―Natural sucrose produces a trigger in your brain
that says you're satisfied‖, she said. ―That's why a
person feels satisfied after one Mexican Coke. A
product sweetened by fructose doesn't trigger the
same 'I'm full' reaction‖.
(Continued in next column)
Mexican Coke (Cont’d)
That instant gratification may be one of the
reasons Mexican Coke is gaining a small cult
following among Hy-Vee's non-Hispanic
customers, Lannan contends. This trend can also
be spotted, (reportedly, there are 13 500 followers
nation-wide).
Perhaps as a reaction to consumer interest, Coca-
Cola has experimented with sucrose-sweetened
soda, manufactured in the United States,
producing a special Kosher Coke, available only
during Passover.
In 2007, the Seattle, Wash., - based Jones Soda
Co. switched from using high-fructose corn syrup
to natural cane sugar in all of its soda products,
and in February 2009, Pepsi confirmed that it
would introduce a new line of sucrose-sweetened
sodas. Pepsi and Mountain Dew Throwback will
be featuring retro logos.
―When consumers see words like ‗natural cane
sugar‘ plastered on a product, they think it‘s
somehow better for them‖, she said. There are
many things that the human body needs in order
to survive but sugar isn‘t one of them.
(Siouxcityjournal 03 Jan 2010)
Tapioca flour release plan approved
The Thailand cabinet has approved a plan to sell
150 000t of cassava starch to China as proposed
by the Ministry of Commerce, Minister Porntiva
Nakasai said on Tuesday. ―The purchase deal will
be made in a form of government to government
at the price of baht 10 350/t‖, Porntiva said.
In addition, the cabinet also has agreed to allocate
180 mio baht for the construction of agricultural
products distribution centres or farm outlets.
The budget is also for financing the ―blue flag‖
project to offer for sale consumer goods at cheap
prices to help reduce the cost of living of the
people. (bangkokpost.com 12 Jan 2010)
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Pepsi throwback
Throwback is coming back. Pepsi is going to start
the limited edition of Throwback and they are
going to use real sugar in it instead of High
Fructose Corn Syrup (HFCS). HFCS is used to
make Pepsi sweet. There are two versions of
Throwback, Throwback Pepsi and Throwback
Mountain Dew and you can find both versions
from everywhere where the regular products of
Pepsi are sold.
Throwback saga was started in last spring when it
was first released in limited-edition basis in the
cane sugar versions from April to mid-June. It is
seen that limited-edition versions generate a lot of
enthusiasm among the users and they find the
taste of cane-sugar soda sweetest than the HFCS
versions.
So, Pepsi has decided to reissue both versions for
another eight-week run and the production has
been started from 28th
December last year.
Michelle Naughton, Pepsi Publicist, calls it
overwhelming positive consumer response.
What makes it more appealing from other
products is its price. The entries such as Boylan‘s
or Jones Soda run from USD 5 to USD 6 for a 4-6
pack but Pepsi and Mountain Dew which costs
USD 3 with a 12-pack offer.
Another change that has been added is, packing.
They had an elegant look last time that was
almost similar to Pepsi‘s regular packaging but
this time they have come with a slightly different
design specially made for Throwback.
(news.puggal.com 04 Jan 2010)
Corn groups hit as drinks makers return to sugar
The impact of poor health perceptions over corn-
based sweeteners has prompted cuts of up to 20%
in prices, and left producers facing "some pretty
aggressive scrambling for contracts", Credit
Suisse has warned. (Continued in next column)
Corn groups hit (Cont’d)
The alert came as the investment bank cut its
rating on shares in UK sweeteners group Tate &
Lyle from "outperform" to "neutral", prompting a
6% slump in the stock. Shares in US rival Corn
Products International closed 4.5% lower in New
York.
While corn processors had been expecting flat
prices for high fructose corn syrup heading into
2010 - and some analysts had high hopes for the
sweetener given rocketing cane sugar prices - the
late-year dash for deals had undermined prices.
―The latest we have heard is down 3-4 cents a
pound (15-20% down)‖, Credit Suisse said,
forecasting an overall drop of 15% in 2010.
Poor health image
The shortage of contracts follows claims, which
the corn processing industry vigorously denies,
that corn syrup is a bigger threat to health than
cane sugar. Soft drinks groups, the product‘s core
consumers, prefer to switch to sugar given the
poor health image of high fructose corn syrup, the
Credit Suisse report said.
Snapple, Ocean Spray and Capri Sun had
switched some months ago, with Gatorade in
November saying it would replace corn syrup
with sugar. Given that corn syrup was selling for
about half the price of spot sugar, these decisions
are made despite the financial hit.
Shares slide
Tate & Lyle, which produces sweeteners from
corn as well as its historic sugar business, would
suffer a hit of up to USD 80 mio from the weaker
HFCS market, the report said, cutting forecasts
for both 2009-10 and 2010-11 results.
As already indicated, Credit Suisse cut its rating
on Tate shares to ‗neutral‘ from ‗outperform‘,
reversing an upgrade made in October over
optimism by the group‘s new CEO, Javed Ahmed.
(Continued on next page)
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Overview
Corn groups hit (Cont’d)
And it urged caution ahead of Tate's trading
update, due on January 28, also flagging
statements from Corn Products on January 26
and Archer Daniels Midland on February 2. Tate
& Lyle shares closed 28.8p lower at 418.7p in
London.
In New York, Corn Products shares ended
USD 1.3 lower at USD 29.3, with Archer
Daniels stock easing 1.1% to USD 31.2.
(agrimoney.com 07 Jan 2009)
How subsidy makes alcohol from grain competitive
India: With INR 10/l subsidy, production of
alcohol from grains becomes more than
competitive relative to its being manufactured
from molasses.
The economics is even more favorable in the
present context, where constrained cane supplies
have led to skyrocketing of molasses prices.
Every ton of molasses gives about 260 l of
alcohol (rectified spirit). Currently, the landed
ex-distillery price of molasses in Maharashtra is
about INR 6 200/t, translating into an alcohol
cost of almost INR 24/l. To this, if the cost of
converting to extra neutral alcohol (ENA, used in
Indian Made Foreign Liquor) of INR 5/l is
added, the total works out to INR 29/l.
On the other hand, from 1t of grain, one would
get anywhere from 380 l for sorghum to 400 l for
broken rice and pearl millet, and 430 l for maize.
If these are available for, say INR 10/kg, the cost
of basic spirit would accordingly range from
INR 23 (maize) to INR 26 sorghum.
The cost of conversion to ENA is higher, at
INR 6.5-INR 7/kg here, mainly because the grain
has to first be milled into flour, from which the
starch is then fermented into liquor.
(Continued in next column)
How subsidy makes alcohol (Cont’d)
The overall cost, therefore, rises to INR 30-33/l
which is close to the prevailing INR 33 ex-
distillery realisations. But with the INR 10
subsidy, grain-based liquor makers would make
an obvious killing.
―We are only using damaged grain that cannot
be consumed by humans. Good quality grain
will cost more, which makes it uneconomical for
us‖, a Maharashtra-based distiller said.
(Hindu Business Line 11 Jan 2010)
Zebra chip research gets USD 3.9 mio in funding
Texas: Texas AgriLife Research plant
pathologist Dr. Charlie Rush of Amarillo has
watched the concern over zebra chip of potato
grow in the past five years, both among
researchers and those willing to fund the
research.
Now Rush is leading a team of 20 researchers
and Extension specialists in a USD 3.9 mio
federally funded Specialty Crop Research
Initiative titled, ―Management of Zebra Chip to
Enhance Profitability and Sustainability of U.S.
Potato Production‖.
―Texas researchers are taking the lead‖, he said.
―Amarillo has taken the key leadership position
in this national program. We are addressing the
needs of our local clientele, but also those of the
industry nationwide‖.
Zebra chip was first detected in the lower Rio
Grande Valley in 2000 and was initially known
as the "Texas defect", Rush said. The new threat
to U.S. potato production has now been detected
as far north as Nebraska and west to California.
(Continued on next page)
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Zebra chip research (Cont’d)
The rapid spread of the disease in an industry that
produces about 320 mio t of potatoes worldwide
got attention. The U.S. averages 17.7 mio t of
potatoes pa, with a value of USD 3.2 bio. All
market classes of potatoes are susceptible to the
disease with no resistance at this time, he said.
While it is not a health concern to the consumer, it
is a quality issue for producers who lose money
on potatoes infected with the disease.
The disease causes simple sugars to remain in the
potato instead of turning to starch and when the
potato is fried, those sugars caramelize and cause
dark stripes and a slightly off-taste, he said. That
is a major problem for Texas, Rush said, where 70
percent of the production from 20 000 acres in the
Panhandle, South Plains and Rio Grande Valley is
headed to Frito Lay to be made into potato chips.
Initially, the disease was handled internally by
growers and Frito Lay, but from 2000 to 2004 the
incidence and distribution of the disease increased
and resulted in heavy losses to Texas potato
growers, he said.
The state zebra chip initiative focused on etiology,
epidemiology and disease control/pest
management, Rush said. It was discovered in
2008 that the potato psyllid was the vector for the
bacterial pathogen which causes the disease.
―There are insecticides that are effective against
psyllids, but we don‘t know very much about the
ecology of the potato psyllid, such as when and
where they migrate from, where they over-winter,
when is the optimum time to treat and with how
much‖, he said. ―Also, growers need management
practices that will help reduce populations‖.
Under the USDA-National Institute of Food and
Agriculture sponsored Specialty Crop Research
Initiative, Rush will bring together team members
from six universities and the U.S. Department of
Agriculture-Agricultural Research Service.
(Continued in next column)
Zebra chip research (Cont’d)
Scientists represent 6 states: California, Idaho,
Nebraska, North Dakota, Texas and Washington.
This group‘s goal is to reduce losses from zebra
chip to economically sustainable levels by
development of a comprehensive environmentally
responsible disease-management program, Rush
said.
The priority/focus areas are: detection,
vector/pathogen diversity and disease etiology;
epidemiology; pest management; breeding;
economics; risk assessment/disease forecasting;
and technology transfer, he said.
The zebra chip research group will have its first
meeting during the Citrus Huanglongbing and
Potato Zebra Chip Conference: Status of Diseases
and Research Opportunities scheduled Nov. 16-18
at the McAllen Conventional Center in McAllen.
(hpj.com 07 Jan 2010)
Potato harvest shows Zeba soil moisture technology holds water; boosts yield and grade
Portland- Potato growers across the Northwest
report improvements in both yield and quality of
their 2009 harvest when using Zeba®, a novel
corn starch-based soil moisture management
technology.
Zeba is a super-absorbent product made from
natural cornstarch that is capable of holding
hundreds of times its own weight in moisture
where it can be absorbed by plant roots when
needed. Zeba is biodegradable in the soil.
(Continued on next page)
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Potato harvest shows Zeba soil moisture technology (Cont’d)
The technology was first discovered by USDA
30 years ago with commercialization beginning in
earnest with the 2003 formation of Absorbent
Technologies, Inc. in Beaverton, Ore.
Absorbent Technologies works with the growers
to track results in dozens of fields in high-value
crop growing regions such as the Pacific
Northwest, California, Florida and the Red River
Valley in North Dakota.
In Washington, MHB Farms of Marlin, in the east
central part of the state, Zeba treatments resulted
in an additional 2.7t of payable potatoes per acre,
delivering a significant return on investment, said
Jake Gross of MHB Farms.
Gross said that it took a few seasons to perfect the
application of Zeba, including working with staff
from Zeba and equipment maker Gandy to install
the right metering wheels that regulate the flow of
Zeba in the crop row. Gross said MHB farm is
now pursuing field tests with other crops.
(EarthTimes 19 Jan 2010)
AKR receives shareholder approval of its IDR 540 bio rights issue
Shareholders in chemical-distribution group PT
AKR Corporindo on Thursday approved the
company‘s proposed IDR 540 bio
(USD 58.3 mio) rights issue.
AKR president director, Haryanto Adikoesoema
said the company will sell 627.6 mio new shares
or 16.6% of the company‘s enlarged share capital,
at IDR 860 each.
The company will increase fuel capacity by
30 000 and 19 000 kl at its Stagen and Pontianak
facilities in Kalimantan, respectively. It will also
boost fuel capacity by 10 000 and 6 000 kl at its
facilities in Medan and Palembang, Sumatra,
respectively. (Continued in next column)
AKR receives shareholder approval (Cont’d)
Suresh Vembu, AKR‘s commercial director, said
that the company had secured a contract from
downstream oil and gas regulator BPHMigas to
distribute 56 500 kl of subsidized fuel this year.
AKR has built gasoline stations in 20 areas in
Medan, Pontianak, Lampung and Banjarmasin.
The BPHMigas deal will provide an estimated 5%
of the company‘s earnings this year.
The company booked net profit of IDR 192 bio in
the nine months to September 2009, down 8.7
percent from IDR 210 bio in the same period of
2008. Sales declined by 33% to IDR 6.3 tio for
the period.
AKR is also expanding its sorbitol manufacturing
operation. Its sorbitol unit, PT Sorini Agro Asia
Corporindo, controls about 50% of the domestic
market for sorbitol and cassava starch. It is the
world‘s second-biggest producer of sorbitol, a
sugar substitute.
Sorini has projected that its revenue will reach
IDR 150 bio this year, helped by its recent
IDR 50 bio acquisition of PT Bumi Tapioka Jaya,
a cassava-starch processing company.
(thejakartaglobe.com 21 Jan 2010)
Sirane gets set for a fruitful year ahead
The UK‘s premier packaging solutions company,
Sirane is counting the growth in its fruit
packaging business through 2009 – and preparing
for a new level of business in 2010 beginning
with its first exhibiting presence at Fruit Logistica
in Berlin, February 3-5.
Sandra Evans is leading the initiative– and
Sirane‘s Resolve absorbent pad technology is
capturing the attention and business of markets
for growers and retailers. ‗Over the past 18
months, Sirane‘s Resolve pad sales for fruit
applications have grown by 420%,‘ she says.
(Continued on next page)
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Sirane gets set for a fruitful year ahead (Cont’d)
―We have single supplier status now with a
number of UK supermarkets; we are selling all
over the world – with the USA, South Africa,
Spain leading the way – and we are also currently
preparing to exhibit the Resolve pad at Fruit
Logistica in Berlin (Feb 3-5) – and at Foodex,
NEC, UK, March 21-24‖.
New packaging such as Resolve greatly reduces
the odds of this happening in the fruit sector.
Older style packaging such as bubble wrap or
cardboard trays and pockets does not now offer
enough. The Resolve pads now tick all the boxes
as far as absorbency, cushioning and aesthetics
within the punnet, leading to less rejection‘.
The Sirane Resolve fruit pad is available in
standard and compostable versions. It cushions
the fruit, absorbing excess moisture or juice,
thereby decreasing pack and product waste.
The Resolve absorbent cushioning fruit pad - fully
compostable and competitive with alternative
materials - is primarily supplied as part of a
package involving PP or PET trays. In addition to
its compostable function, the Resolve pad helps
suppliers to extend shelf life and also guard
against damage, discoloration and decay.
In its compostable version, the Resolve pad is
composed of a non-genetically manipulated corn
starch-based film which has been thermally
laminated to a fully compostable FSC (Forest
Stewardship Council) accredited cellulose-based
absorbent material. The pad composts quickly
accordingly to the latest European consumer
composting standards. (pandct.com 11 Jan 2010)
Plant-based plastics to replace petroleum plastics?
As the price for crude oil continues to rise over
time, the cost of producing petroleum-based
plastic products continues to rise with it.
Alternatives like bio-plastics which currently cost
more to produce than existing plastics may
oneday become more cost effective than
petroleum-based plastics.
Frederic Scheer, owner of a company called
Cereplast that makes sustainable bio-plastic
material from vegetable and grain starches,
believes that petroleum prices will eventually
exceed the costs of producing his own product.
By 2013, he believes that industry giants like
DuPont and BASF will pursue his technology as a
replacement for their soon-to-be outdated
petroleum plastics.
Scheer‘s company has developed a method of
converting starch from corn, wheat, tapioca, and
potatoes into biodegradable plastic resins.
Because they effectively biodegrade in a mere
90 days, they are an excellent alternative to
traditional plastic cups, containers and packaging
materials.
Cereplast also produces a hybrid resin composed
of 50% renewable bio-plastic which cuts waste
and conserves energy. This blend is useful in
things like cars and children‘s toys. By cutting the
amount of polypropylene plastic used in products,
the kind most typically used in consumer
products, Scheer hopes his company will help to
reduce the negative environmental impact caused
by plastic products.
Scheer is diversifying his efforts by researching
the potential for utilizing algae. Because it can be
grown quickly and cheaply, it is likely to work
even better than starch because its costs would
remain more stable. His company plans to release
an algae-based plastic by the end of 2010.
(Continued on next page)
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Plant-based plastics (Cont’d)
Another hot commodity receiving little attention
in the mainstream is the hemp plant. Hemp is a
renewable biomass source that would not only
work well in producing clean, bio-degradable
plastic products, but would also pave the way for
energy independence by eliminating the need for
fossil fuels. The uses for hemp are endless.
With a market topping USD 2.5 tio worldwide,
the plastics market holds a lot of potential for
those with alternative ideas.
(NaturalNews 30 Jan 2010)
Plantic inks deal to improve biodegradable plastic supply chain
The Australia-based bio-degradable plastics
maker, Plantic Technologies, has announced plans
for a new US manufacturing facility designed to
reduce the cost of its production processes.
The company has signed a deal to relocate one of
its manufacturing lines to the premises of
Indianapolis-based National Starch in a bid to
reduce supply chain and material costs and
facilitate closer collaboration between the two
companies‘ R&D and manufacturing efforts.
National Starch is Plantic‘s primary supplier of
specially modified starches, which are used in the
production of the firm‘s corn starch-based bio-
plastics. The two firms have been working
together since October 2007, when they signed a
joint collaboration deal to develop new starch and
starch modification technology, which acts as the
basis for creating biodegradable polymers.
Plantic‘s CEO, Brendan Morris, said that the new
manufacturing facility was expected to
significantly reduce the current cost of Plantic
materials by integrating the two processes of
manufacturing and key raw material supply.
(Continued in next column)
Plantic inks deal (Cont’d)
The reduced costs could ultimately be passed on
to the firm‘s 40 customers in Australia, Europe
and the US, which are using its rigid sheet,
injection moulding, blow moulding and flexible
packaging resin in a range of projects and trials.
Morris admitted that the company‘s commercial
operations had been affected by the slower than
anticipated recovery from global recession, and
that as a result fiscal 2009 revenues would be
lower than expected.
But he added that losses from operations and cash
in the bank would be in line with forecasts due to
cost reduction programmes initiated earlier in the
year and careful cash management.
Morris also predicted that the outlook for 2010 is
optimistic arguing that the relocation of Plantic‘s
manufacturing line would have a beneficial
impact on sales. In addition to the extended
partnership with National Starch, Plantic said that
the two companies are discussing expansion plans
in the US market.
Earlier this year, Plantic released research from
the Royal Melbourne Institute of Technology
suggesting that its plant-based plastics delivered
significant cuts in energy use and carbon
emissions compared to conventional plastics.
The research revealed that one sheet of Plantic
material containing enough plastic to make 1 000
chocolate trays uses 544MJ of energy, compared
to the 1 362MJ used to produce 1 000 trays made
from conventional polyethylene.
(BusinessGreen 29 Dec 2009)
Vol. 1-10 © GIRACT 2009 19
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Groundbreaking cellulosic bio-fuel technology moves toward commercialisation
The Energy & Environmental Research Center
(EERC) Foundation and Whole Energy Fuels
Corp., headquartered in Bellingham, are poised to
commercialise a novel and groundbreaking
cellulosic bio-fuel technology developed at the
EERC at the University of North Dakota.
Whole Energy is receiving global, exclusive
licensing rights to EERC Foundation‘s technology
which converts biomass and other recycled
material into liquid bio-fuels.
Utilising cellulosic materials to produce bio-fuels
has several advantages. Cellulosic materials such
as wood, grasses or the non-edible parts of crops,
including wheat straw, soybean hulls, and corn
cobs, are vast and diverse feed-stocks compared
to first-generation feed-stocks like corn starch or
sugarcane. In addition, cellulosic fuels promise to
become the lowest-cost bio-fuel while at the same
time provide large reductions in greenhouse gas
emissions compared to petroleum-derived fuels.
―This project presents an exciting opportunity for
the EERC, as it is one of the very first involving
production of advanced fuel additives from
cellulosic feedstocks‖, said Senior Research
Advisor Ed Olson. ―This technology will
ultimately be used to improve engine performance
using a renewable product, both in gasoline and
diesel engines. In the case of diesel fuel, our
additives will boost the cetane levels, improve
flow properties and, most importantly, reduce
particulate emissions‖.
The current federal Renewable Fuel Standard
requires that 36 mio gallons of bio-fuels must be
used in transportation fuel by 2022, including at
least 21 bio gallons of advanced bio-fuels such as
cellulosic bio-fuels. This creates a gigantic market
for cellulosic bio-fuels.
(Continued in next column)
Groundbreaking cellulosic bio-fuel technology (Cont’d)
Atul Deshmane, CEO and President of Whole
Energy, is excited to capture this market
opportunity and build on over 15 years‘
experience in the alternative fuels industry.
―Partnering with the EERC and obtaining a
technology license from the EERC Foundation
will jump-start Mercurius Biofuels, a new
company formed with our help to develop and
commercialize advanced bio-fuel technologies,‖
said Deshmane.
―Mercurius is developing the technology with the
intent of building and operating a pilot plant to
demonstrate what may be the most energy- and
carbon-efficient process for making a cellulosic
fuel‖, he added.
Karl Seck, President of Mercurius Biofuels, is
looking forward to building a successful company
with the EERC Foundation‘s technology as its
centerpiece. ―The EERC Foundation‘s bio-
refinery technology is superior to other
technologies because it does not depend on
enzymes, fermentation, or extreme operating
conditions‖, said Seck.
(Earth Times 11 Dec 2009)
Mitsui plans ethanol plant
Malaysia: Japanese company, Mitsui, could be
investing in an ethanol plant in Malaysia.
According to the news agency - Bernama, the
company, Mitsui Engineering Shipbuilding, is
looking to invest MYR 290 mio in the project.
The company is expected to first build a pilot
plant costing MYR 40 mio using discarded fruit
branches as a feedstock. The investment to build
the plant up to commercial scale will involve
another MYR 200 mio.
(GlobalBioenergyIndustryNews 14 Dec 2009)
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Government of Canada supports next-generation bio-fuels project
Ontario - A technology that could allow bio-fuels
producers to increase both their profitability and
competitiveness has been given a boost today.
Sustainable Development Technology Canada
(SDTC) has awarded a project led by SunOpta
BioProcess Inc. up to USD 5.5 mio in funding for
the construction of a facility to demonstrate its
integrated process that aims to produce both food
grade xylitol - a healthy sugar substitute - and fuel
grade cellulosic ethanol.
―Next-generation bio-fuel technologies are
generating even greater environmental benefits
and are also providing new economic
opportunities through innovative co-products‖,
said Lisa Raitt, Minister of Natural Resources.
―The Government of Canada is pleased to support
companies like SunOpta that are helping advance
clean energy technology and provide a healthier
environment for Canadians‖.
Using wood chips as feedstock, SunOpta‘s
technology is projected to decrease process water
consumption by upto 75% compared to producing
corn ethanol while retaining all of the life-cycle
carbon benefits inherent to cellulosic ethanol. The
proposed project involves the construction of a
demonstration plant with a capacity of 620t of
xylitol and 2 mio l of cellulosic ethanol pa.
The SDTC funding will allow SunOpta
BioProcess Inc. to demonstrate its integrated
process technology to produce bio-fuels from
cellulose, bio-energy from lignin, and xylitol, a
natural alternative sweetener and value-added
product produced from xylan‖, commented
SunOpta BioProcess Inc. President Murray Burke.
The SDTC funding for SunOpta's project will be
leveraged with funding from members of its
consortium, including Xylitol Canada and
Emerald Forest Sugars Inc.
(Marketwire 12 Jan 2010)
Ethanol Future
Dakota: The Environmental Protection Agency
recently announced it was delaying a decision that
ethanol producers are waiting for. Jim Olson
reports on that and other factors that could
determine the future of ethanol production in
North Dakota. The EPA won‘t decide until at
least this summer if it will declare that all motor
vehicles can safely use 15-percent ethanol.
Currently, the limit is 10% alcohol in gasoline for
all cars and trucks.
Jeff Zueger, Blue Flint Ethanol GM: ―Right now
you have E-10 and that's the bulk of the gallons
that are blended in. Go to E-15 and you've
increased that 50% so it's very significant for the
industry so we get those types of technology
issues behind us‖.
Jeff Zueger is general manager at Blue Flint
Ethanol near Underwood. His plant is pumping
out 60 mio gallons of ethanol pa, over its official
capacity, but he thinks a favorable ruling by the
EPA would be good for the industry and spur
development of ethanol made from things other
than Corn. For instance, he says his plant could be
converted to make ethanol from non-food organic
material.
―A corn-based, starch-based conversion facility
like this could be converted over to a cellulosic-
based and move into the advanced bio-fuel as
opposed to the corn feed stock‖, he added.
(kxnet.com 24 Dec 2009)
Ethanol makers seek more state help
Ethanol manufacturers say they are still struggling
to export surplus supplies, even after lobbying
successfully last year to change the law to allow
exports. ―The government should enforce
measures to make it easier for ethanol
manufacturers to export these surplus products‖,
said Rungrote Sukkirtkijpibul, plant director of
Sapthip Co.
(Continued on next page)
Vol. 1-10 © GIRACT 2009 21
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Ethanol makers seek more (Cont’d)
Currently, local demand for ethanol averages
1.2 mio litres per day but the supply is 3 mio l.
Sapthip began operating its THB 1.5 bio ethanol
plant in Lop Buri at end of April 2009, using 500t
of cassava a day. About 2.5-3kg of cassava can
produce 1 l of ethanol.
The production cost is 21-22 baht per litre but the
market price is only 23 baht so margins are thin.
Most ethanol producers use molasses but a
sugarcane shortage last year prompted Sapthip to
change strategy.
―From May to August the price of molasses was
very high, resulting in an undersupply of molasses
and ethanol. Therefore, cassava needed to be
used, and that was how we benefited from the
opportunity‖, said Supoj Srisathaporn, sales and
marketing director.
The plant produced 30 mio l of ethanol in 2009
and expects production to reach 60 mio in 2010.
"Since starting operation, we have suspended
production [occasionally] in order to fix our
machinery, resulting in only an average of
120,000-140,000 l of ethanol produced per day or
4 mio litres per month at most," said Supoj.
"However, in the fourth quarter of 2009 we were
able to produce more than 200 000 lpd."The plant
has a full production capacity of 230 000 lpd.
Sapthip's customers include PTT, Shell, Esso,
Chevron and IRPC, with almost half of its output
sold to PTT.
The plant uses biogas to generate steam to heat
boiling starch and for refining. Rungrote said the
company might consider setting up an electricity
plant if production capacity increased. "Currently
I think we are not able to push forward with
gasohol, since there is still petrol being sold here.
If it was all gasohol, the demand for ethanol might
reach 3 mio lpd," he said.
(Continued in next column)
Ethanol makers seek more (Cont’d)
Rungrote said ethanol exports had potential in the
Philippines and Korea, and especially in Japan
where E3 - 3% ethanol in petrol - is mandatory.
―Japan does not have its own ethanol production
and buys ethanol from Brazil, which has high
transport costs. That makes it possible for our
country to push forward our exports‖, he said.
(bankokpost 05 Jan 2010)
Lower corn grades have Casco turning to the US; Greenfield taking wait-and-see approach
Edwardsburgh/Cardinal - The average grade and
weight of Eastern Ontario's 2009 corn harvest
may be down. But that hasn't dented the huge
appetite for locally grown corn by two players
both located in this little township: Casco's
Cardinal plant, which for years was Canada's
single largest corn-consuming industrial plant,
and the new Greenfield Ethanol plant in nearby
Johnstown, the upstart whose corn intake
officially surpassed its much older rival last year.
Officials at both companies - who confirmed for
The AgriNews that the new ethanol plant
consumed more corn than Casco's Cardinal
operation in 2009 - say the quality of the recent
local harvest has been OK for their purposes.
―The yields were exceptional, but no doubt the
test weights are a little light‖, said Bill McDonald,
Greenfield Ethanol‘s commodity manager at
Johnstown.
McDonald estimated that most of the Eastern
Ontario crop had come in at what he described as
a ―weak number three grade or a strong number
four grade‖, compared to the number two grade
the majority of the crop achieved the previous
year.
(Continued on next page)
Vol. 1-10 © GIRACT 2009 22
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Lower corn grades have Casco turning to U.S (Cont’d)
Despite the lower grade, ―as it stands right now,
we don't seem to be seeing a difference in our
[ethanol] yield‖, he offered. However, he
qualified the remark by saying the company was
waiting to see further data and analysis. "I don't
think it would be wise to comment on whether
this corn is going to produce less ethanol or not‖.
Very wet conditions as the harvest got underway
in October also meant that Greenfield had some
takers for its wet corn program, which sees the
company subsidize a farmer's cost of drying wet
corn delivered to the nearby Port of Prescott‘s
drying facility, according to McDonald, who
declined to disclose how much the program cost
the company in 2009.
Going on line in December 2008, the ethanol
plant mills 20 mio bushels of dry corn annually -
65 tractor trailer loads daily ' to produce 200 mio l
of fuel ethanol as well as dried distillers grains as
a feed byproduct. Most of the corn is locally
sourced, though McDonald didn't provide an
exact figure, remarking, "It's our goal to buy as
many of the bushels from the local market as
possible‖.
Greenfield‘s corn intake was higher in 2009 than
16.5 mio-17 mio bushels typically consumed by
Casco at Cardinal, conceded Shelley Wybo, the
corporation‘s Canadian purchasing manager. And
it's higher, too, than the 18 mio bushels she
expects the Cardinal plant to require in 2010, to
make up for the lower starch content of the local
Eastern Ontario crop this year.
―With the test weight being lower, the volume of
corn will have to increase this year for sure‖,
explained Wybo, who suggested the overall grade
was the lowest seen in nine years. She said that
Casco buys most corn locally for the Cardinal
facility, located on the St. Lawrence River, but
always supplements this with a single boatload of
550 000 bushels from the U.S. (Continued)
Lower corn grades have Casco turning to U.S (Cont’d)
But with the lower starch content of the current
crop, combined with Greenfield‘s competition for
the local corn supply, she anticipates at least four
more ships will have to be brought in. ―We'll have
at least one per month, staring in July, August,
September and October‖.
A wet-milling plant, Casco accepts corn straight
off the field, but even it required some drying as
the soggy 2009 harvest got started because the
Cardinal plant can‘t handle moisture levels above
30%.
The plant uses the corn to make mostly
sweeteners, along with gluten feed and gluten
meal, and cracked corn and industrial starch. Both
McDonald and Wybo noted that the corn harvest
remains a little behind schedule in Eastern
Ontario. McDonald estimated that something less
than 10% of the crop remains on the field, as of
early January - which is higher than usual.
Asked for her take on Greenfield‘s arrival in the
local marketplace, she said it was proving ‗very
difficult‘ for two large corn buyers to be located
side by side. (agrinewsinteractive.com Jan 2010)
AE Biofuels to restart Cilion ethanol plant
A California ethanol plant that has been idle since
April 2009 is on the way to being restarted. AE
Biofuels has entered into a 3-year lease agreement
with Cilion Inc., the owner of the plant, to operate
the plant with the subsidiary name AE Advanced
Fuels Keyes.
Andy Foster, president and COO of the AE
Biofuels‘ biofuels division, said that the plant will
first undergo repairs and retrofitting. The goal of
the Cupertino, California-based company is to
start producing ethanol again in late spring this
year.
(Continued on next page)
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AE Biofuels to restart Cilion ethanol plant (Cont’d)
AE Biofuels is leasing the ethanol plant from
Cilion for USD 250 000/month. Once ethanol is
being produced again, the company will pay
Cilion USD 3 mio pa for 3 years.
The 55 mio gallons pa ethanol plant will, in the
beginning, continue to use corn as its main
feedstock. Eventually however, the firm plans to
utilise up to 25% agri-residues, such as corn stalks
and wheat straw. ―We anticipate making the
conversion to cellulosic inputs once the plant has
been up and running at a steady state for at least
6-9 months. Our goal for cellulosic production is
the first half of 2011‖, he said.
(ethanolproducer.com 28 Jan 2010)
China completes cassava genome sequencing for energy use research China has completed the genome sequencing of
three varieties of cassava, the roots of which are
used to produce ethanol. The genome sequencing
can shed light on the cassava plant as a source of
biomass energy. It also lays the foundation for
enhancing cassava‘s ability to grow on barren soil
and resistance against drought, said Peng Ming,
head of the Biology Institute of the Chinese
Academy of Tropical Agricultural Sciences.
The sequencing has covered more than 95% of the
cassava varieties such as Ku50 (high starch
content cassava), W14 (original cassava) and
CAS36 (sweet cassava). The United States has
only covered 65% of one variety. No other
country has published research of the cassava
genome sequencing so far, Peng said.
The three varieties‘ draft genome maps would be
completed in March, 2010. Cassava is extensively
grown in southern China for food and as a new
source of biomass energy. ―Genetic researches
will enable cassava to grow in the colder and drier
northern China‖, Peng said.
(iStockAnalyst 18 Jan 2010)
Mix and match corn-based co-products of ethanol to achieve a balanced ration
With profitability back in the corn refining and
ethanol industry, those co-products destined for
livestock feed will be widely available. Wet and
dry corn gluten, distillers dried grains, and other
products left from the removal of starch will be
competing with each other, and all will be
competing with shelled corn. If you have
livestock to feed, there may be a reason to brush
up on the products and their characteristics.
Ethanol can be produced from both the wet and
dry corn milling industry, since both provide the
means to remove the starch component of the corn
kernel.
In the wet milling process, a bushel of corn
produces 5.7kg of corn gluten feed and 1.1kg of
corn gluten meal, in addition to 14.3kg of starch
which is converted to sugars and alcohol. During
May 2007-November 2009, wet corn gluten feed
production increased, but production of corn
gluten meal and corn gluten feed declined along
with corn germ meal.
O‘Brien says wet corn gluten feed made up 44%
of the wet corn milling co-product, with corn
gluten at 30%, corn germ meal at nearly 16% and
corn gluten meal at 10%.
1. Corn germ is removed from the kernel and oil
is removed from the germ, with corn germ
meal remaining. It is 20% protein with an
amino acid balance good for swine and
poultry.
2. After the starch is removed, the balance of the
kernel is composed of bran and fibre which
becomes corn gluten feed and can be sold
wet/dry as a complete feed for dairy, beef,
poultry, swine, and pet foods. Dried pellets are
21% protein. Wet feed is 45% dry matter and
is perishable in 6-10 days.
3. Corn gluten meal is starch and gluten that is
dried to 60% protein. Some starch can be
removed in other processes. (Continued)
Vol. 1-10 © GIRACT 2009 24
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Mix and match corn-based co-products (Cont’d)
In the dry milling process, a bushel of corn
produces 18 pounds of distillers dried grains with
soluble. The ground wet corn will have its starch
washed out, with distillers, wet and dried grain
and dried grains with soluble remaining.
Dry mills produced about 907.2 mio kg of
distillers‘ wet grains per month in the 30 months
prior to November 2009. In the final month of the
period 44% of the weight of the co products was
in the form of distillers‘ wet grain, along with
nearly 39% distillers dried grain with soluble,
14% distillers dried grains.
Condensed distillers soluble are 29% protein, and
range from 25% to 50% dry matter. It is used as a
highly palatable feedstuff to supplement forages.
When the feed is subjected to centrifugal force to
expel the water, the remaining portion is called
wet cake. (cattlenetwork.com 26 Jan 2010)
Future of the company: Poet
The ethanol industry continues to face financing
challenges and uncertainty. Producers have filed
for bankruptcy and plants have been closed in
many locations as a result of the economy and
low margins created by commodity price
fluctuations. The unpredictability of future
ethanol blend rates has also constrained future
development.
Despite the volatile conditions facing the ethanol
industry, Poet looks to have escaped much of the
damage. The Sioux Falls-based integrated bio-
fuels company appears to be well-positioned to
take advantage of ethanol‘s long-term promise.
Poet is the world‘s largest ethanol producer,
refining 1.5 bio gallons of ethanol a year at 26
facilities in seven states.
(Continued on next page)
Future of the company Poet (Cont’d)
The company is a leader in research and
development, ethanol plant development and
efficiency and also markets its refined ethanol as
well as by products such as distillers‘ grains.
―This is not the first time the ethanol industry has
faced challenges and it won‘t be the last‖, says
Jeff Broin, the company‘s CEO. ―Today margins
are much better than they have been over the past
year. Poet has remained strong over this
challenging timeframe by finding creative ways
through research and engineering.
Many ethanol producers, including Sioux Falls-
based VeraSun Energy Corporation, a giant in the
industry, have been forced out of business in the
last two years as margins and demand for ethanol
lagged. While the changing market conditions
have affected Poet, the company has remained
strong and has been able to increase its market
share.
Poet has a patent-pending raw starch hydrolysis
process that converts starch to sugar, which then
ferments into ethanol without the use of heat. The
company‘s BPX process has been shown to
reduce energy costs, water use and plant
emissions while increasing the amount of starch
content for conversion to ethanol and protein
content and potentially leading to greater plant
output.
The company‘s goal is to cut the plant‘s per-
gallon cost below USD 2 by the time it begins
commercial-scale production. Once completed,
the plant will produce 125 mio gallons pa,
including 25 mio gallons from corn fibre and corn
cobs, which will increase how much it can
produce from each bushel and acre of corn and
reduce the use of fossil fuels needed to power the
facility. (Prairie Business 11 Jan 2010)
Vol. 1-10 © GIRACT 2009 25
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Süd-Chemie & US technology licensor GTC technology agree on strategic alliance
Süd-Chemie AG, a leading worldwide
manufacturer of industrial catalysts based in
Munich, and GTC Technology Inc., Houston, a
global technology licensing and engineering
company for chemical and petrochemical
applications, have reached agreement on a
strategic alliance. As part of this alliance
agreement, Süd-Chemie has acquired a 25% share
in GTC.
The partnership significantly strengthens Süd-
Chemie‘s position in the market for catalysts used
in the aromatic complexes. Aromatics are key
intermediates for many fast growing applications.
Prime example is para-Xylene – a compound
which is the key intermediate for polyester. The
demand for para-xylene is projected to grow
significantly especially in China, the Middle East
and Southeast Asia.
Within the scope of this co-operation, Süd-
Chemie will develop and supply catalysts and
absorbents for GTC‗s processes. The two
companies have also agreed to co-operate closely
in promoting R&D, expanding the product
portfolio and providing mutual technical support.
GTC Technology, a technology and process
equipment supplier focused company with an
overwhelming expertise in the areas they are
serving, has been growing very fast over the last
couple of years.
They currently employ more than 100 people
worldwide and run production and sales sites in
the US, Korea, China, Mexico, Singapore and the
Czech Republic. Dr. Hans-Joachim Müller,
member of the Managing Board at Süd-
Chemie AG, said: ―By forming this alliance, both
GTC and Süd-Chemie will enjoy benefits from
aligning development capabilities and exploiting
synergies related to our current service offerings‖.
(Continued in next column)
Süd-Chemie & US technology licensor GTC technology (Cont’d)
―The alliance will not only focus on growing the
existing portfolio but is also determined to expand
its role as a technology & service provider. By
combining Süd-Chemie‘s catalyst know-how with
GTC‘s process expertise and technical support
capabilities we will make a difference to the
industry we are serving‖, he added.
The Süd-Chemie Group generated sales of
EUR 1.2 bio in 2008, approx. 80% of these
outside Germany. (Chempoint 18 Dec 2009)
Univar steps up business in the Middle East and Africa
Brussels: Univar, a leading global company
specialising in the sales, marketing, application
and safe, efficient handling of a wide range of
chemicals and ingredients, is set to expand its
business in the Middle East and Africa.
With the opening shortly of the company‘s new
facility in Dubai‘s Jebel Ali Free Zone (pending
final formalities), Univar aims at better serving
existing and potential customers and suppliers in
this dynamic growth region.
Univar has been operating in the Middle East and
Africa for 20 years in the oil & gas, personal care,
coatings and food industries. The company is now
investing to further develop its commercial and
product support activities for suppliers and
customers operating in the region.
The team based in Dubai, led by Nick Powell,
who has a wealth of regional chemical and
ingredients experience, will employ local experts
who can offer valued services to both European
and global suppliers and partners by offering a
true regional sales channel.
(Continued on next page)
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Univar steps up business (Cont’d)
―The chemical and ingredients industry is
fragmented in the Middle East and Africa, with
many smaller companies only serving certain
market segments and small geographies. Univar
will be a perfect partner for those operating in the
region, offering localised services while retaining
the advantage of a global network, broad product
portfolio, team of dedicated industry and product
specialists as well as specialised product
application laboratories‖, said Nick Powell, GM
of Middle East & Africa, Univar.
―We intend to operate across the whole of the
Middle East and Africa and, where appropriate,
will open additional sales offices and warehouses
within the region. Univar operates as one
company, offering the same quality services and
products across the region as we do in the rest of
the world and at all times we shall locally
leverage our global strength‖, he added.
Historically, business in the Middle East and
Africa region has been carried out via Univar‘s
export teams in Europe and North America. In
order to offer a local solution to customers,
Univar has set-up a permanent office in Dubai.
―The Middle East and Africa region presents a
wealth of opportunities. Despite the current
economic crisis, we see that business is expanding
and companies continue to grow. Thanks to our
dedicated Middle East & Africa office we will be
able to further strengthen our capabilities and
contribute to the growth of our overall business‖,
John van Osch, President EMEA, Univar.
Operating from 56 distribution locations in
20 countries across Europe, Univar‘s 2 400 local
employees serve more than 50 000 European
customers in a diverse range of industries
including coatings, food, personal care, pharma
and other major sectors.
(SpecialChem 02 Dec 2009)
Gulshan Polyols’ members approve issue of FCCB
The members of Gulshan Polyols at their extra
ordinary general meeting on 7th
December 2009
have considered and approved the matter of issue
of Foreign Currency Convertible Bonds (FCCB),
QIP, Global Depository Receipts (GDINR) and/or
American Depository Receipts (ADINR) for an
aggregate sum of INR 500 mio.
(Indiainfoline 11 Dec 2009)
Cargill collects another Baldrige award
Cargill Corn Milling, one of Cedar Rapids‘ largest
manufacturers, was formally presented with the
2008 Malcom Baldrige National Quality Award
recently. VP, Joe Biden and U.S. Commerce
Secretary, Gary Locke, presented the award at the
J.W. Marriott in Washington. It was the second
time in 4 years, and the third time overall, that a
unit of Minnesota-based Cargill business has
earned the nation‘s top honor for quality.
―More than 2 400 employees across nine plants,
11 distribution terminals and various other
locations played a role in receiving this award‖,
Cargill Corn Milling President, Alan Willits, said.
In last November, the company was told that it
won the big award.
Cargill makes MaizeWize whole grain corn meal,
corn flour and masa flour. It also makes regular
and HFCS, corn oil and sugar; Animal feeds and
meals produced including Sweet Bran premium
corn gluten feed. Fermentation products include
ethanol, dextrose, industrial starch and
glucosamine.
The Baldrige award program was created by an
act of Congress in 2007 to help encourage
competitiveness in manufacturing. It was named
after a former U.S. Secretary of Commerce
recognised for improvements in government
efficiency who had died in a tragic rodeo
accident. (Gazetteonline 02 Dec 2009)
Vol. 1-10 © GIRACT 2009 27
StarchItalics Global Starch Review
Starch Industry Overview
China corn processors to become global players
China‘s industrial corn processing industry faces a
consolidation wave which will create influential
players on international markets as it grapples
with robust prices and waning government
support.
Policymakers are encouraging mergers and
shutdowns in a sector which has, nearly single-
handedly, accounted for growth in China‘s corn
use over the last decade, a Washington report
said.
Beijing's stance represents something of a u-turn
from its support, for much of the decade, for
plants turning corn into products such as citric
acid and monosodium glutamate and distiller's
grains, viewing them as a way to mop up excess
corn supplies and create employment in rural
areas.
Exports of corn products jumped 140% in the
three years to 2007-08, while those of the
unprocessed grain sank by more than 90%.
However, high corn prices, which have remained
20-40% higher than those at US gulf ports, have
sapped the government's appetite for further
expansion as well as rendering many plants
uneconomic.
Exports of major Chinese industrial corn products
by value, 2008-09:
Products Value
(USD mio)
Citric acid 523
Glutamic acid and
salts
293
Glucose, dry and
syrup
168
Dextrins 133
Lysine 102
Total 1730
Source: USDA
(Continued on next page)
China corn processors (Cont’d)
International competitors:
―The Chinese government encouraged the
development of the corn-processing industry
largely to reduce excess corn supplies and raise
farm prices‖, the US Department of Agriculture
said. ―A trend of rising corn prices in China since
2005 suggests that these goals have been met‖.
Business profiles:
Companies came in a range of forms, with some
state-owned, and some, such as Chengfu Food
Group, in private hands. Chengfu which employs
1 300 people and has capacity of 400 000t of corn
is designated as a national agricultural leading
enterprise, entitling it to state support.
Some companies related to Changchun Dacheng
Industrial Group which claims to be Asia‘s largest
corn processor are listed on the Hong Kong Stock
Exchange. Changchun Dacheng which also claims
to be the world's biggest producer of lysine has
capacity to process 3.2 mio t of corn a year.
(agrimoney.com 17 Dec 2009)
China’s got a sweet tooth
Asia Bio-Chem Group Corp, through its wholly-
owned subsidiary Changtu Bio, manufactures and
sells corn starch and related products in the
People‘s Republic of China (PRC).
From its 15 000-plus sq. m. manufacturing facility
in the Liaoning province, Asia Bio produces about
270 000t of corn starch and related by-products
pa, including corn germ, gluten and fibre for the
Chinese domestic market.
Roughly 72% of the company‘s 2008 production
was corn starch, which is sold to industrial
customers in a variety of industries within China.
Corn starch is used in the manufacturing of
hundreds of food products, including MSG,
fructose, maltose, glucose, dextrin, citric acid, and
lysine. (Continued in next column)
Vol. 1-10 © GIRACT 2009 28
StarchItalics Global Starch Review
Starch Industry Overview
China’s got a sweet tooth (Cont’d)
Corn starch is also used to produce sugar
alcohols, such as sorbitol and mannitol, and is
used to produce a wide variety of modified starch
products for the pharmaceutical and fine chemical
industries. The corn starch manufacturing process
produces three byproducts: Corn germ, gluten,
and fiber. Corn germ is used by the company‘s
customers to produce corn oil, which is used for
cooking or in producing margarine. The gluten
and fiber products manufactured by the company
are used by livestock farmers as animal feed.
On September 25, 2008, the company completed
the acquisition of 100% interest of Daqing
Biochemical Company Ltd., a PRC company
located in Helongjiang Province. Daqing Bio‘s
manufacturing facility currently is under
construction. Upon completion, it is expected to
triple the company‘s annual capacity to produce
corn starch and related byproducts.
The challenging market conditions seen in [late
2008] were exacerbated [early in 2009] as the
economic slowdown in China, coupled with
government purchases of corn, had a negative
effect on gross profit.
While conditions spilled over into the second
quarter of 2009, market conditions began to
improve for the company‘s products. That
improvement continued in the third quarter, and
with the announced completion and
commencement of production at the Daqing
facility, Asia Bio-Chem‘s shares have
strengthened sharply.
Management expects that the continued recovery
in its industry will bode well for Asia Bio-Chem
as the new Daqing facility comes on stream in the
fourth quarter of this year. Fundamentally, on a
trial basis, the stock does not currently look
cheap, but the attraction to Asia Bio-Chem has
always centered on the launch of the new
productive capacity via the company‘s Daqing
facility. (moneyshow.com 30 Dec 2009)
Roquette America, Inc. acquires more property along riverfront
A lawsuit filed 17 months earlier was settled by
the sale of riverfront property in April.
Keokuk‘s Mississippi riverfront from the
Roquette America, Inc. plant south to the Des
Moines River was bought by Roquette America,
Inc. The former landowner, Hendricks Holding
Company Inc., sold the site, known locally as the
Ferro-Sil property and South-eastern Iowa Port
Terminal LLC, to a subsidiary of Roquette
America Inc., in the spring.
Roquette will operate the port terminal facility
and will continue to work with the Southeast Iowa
Regional Economic and Port Authority to
implement expanded access and transshipment
capabilities for cargo transported on and along the
Mississippi River, according to Roquette
Corporate Financial Officer Paul Janicki.
Keokuk Mayor David Gudgel, who then served as
VP and acting chair for the port authority and is
now president, said he received a call from
Hendricks management, then from Roquette
America President and Corporate Executive
Officer Dominique Taret about the final sale.
Roquette filed a lawsuit October 10, 2007, at the
South Lee County Courthouse to regain the right
of first refusal for the SEIPT property, the same
day Hendricks announced his plans for the
property. With the sale between Roquette and
Hendricks Holdings concluded, the legal dispute
was over.
Roquette‘s purchase of the property doesn‘t
change the master plan the Southeast Iowa
Regional Economic and Port Authority is working
on, according to Gudgel.
(Continued on next page)
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StarchItalics Global Starch Review
Starch Industry Overview
Roquette America, Inc. acquires more property along riverfront (Cont’d)
Roquette wants to work with the economic arms
in Lee County, he added. In addition to the port
authority, those groups include the City of
Keokuk, Lee County Economic Development
Group and Keokuk Economic Development
Corporation. Since 1991, Roquette America‘s
investments in its Keokuk plant have totalled
more than USD 700 mio.
Roquette‘s manufacturing facility in Keokuk
produces corn-based starches and syrups and
polyols used in many food and beverage
applications as well as in pharmaceuticals, paper
products, cosmetics and agricultural goods.
(dailygate.com 29 Dec 2009)
Deals signal revival in buyout activity
Istanbul: Aymar, a leading brand in vegetable
oils, acquires three rival companies for an
undisclosed sum. Barely a week after a report said
mergers and acquisitions in Turkey are expected
to surge this year, statements coming from two
different sectors signaled a comeback in the
market after a stalled year.
Aymar announced it has acquired three rivals for
an undisclosed sum, while Dünya Göz, which
owns eye hospitals in Turkey, said it might reach
an agreement to sell a 30% stake to a unit of the
National Bank of Kuwait.
Aymar has acquired Çapamarka, Bozkurt and
Vita Oil, according to a company statement.
―Aymar aims to become one of the top three food
brands in five years‖, the company said.
Çapamarka is an established brand in flour,
instant soup, wheat starch, corn starch and rice
flour. Bozkurt is known for its jams and halvas, a
traditional dessert, while Vita is a well-known
margarine brand.
(Continued on next page)
Deals signal revival in buyout activity (Cont’d)
Aymar was founded in 1979 under the umbrella
of Koç Holding, but joined Unilever in 1989. But
in the 1990s, Unilever decided to pull the brand
from the market. In 2003, it was acquired by
Toros, originally a supplier to vegetable oil
companies. (hurriyetdailynews.com 11 Jan 2010)
Riddhi Siddhi closes operation at Podicherry unit
India: Riddhi Siddhi Gluco Biols announced that
the management of the company has decided to
close down the operations of Podicherry unit,
which produces modified starches due to its
unviable operations.
The company has already set-up a similar plant of
higher capacity at its unit at Gokak where the
company has cost and logistics advantages in the
production of modified starches. Hence the
closure of the Pondicherry unit will not have any
impact on the company‘s overall operations and
profitability. (myiris.com 20 Jan 2010)
Vol. 1-10 © GIRACT 2009 30
StarchItalics
A review of news items from the world of starches and their derivatives
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