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sion. steam systems do carry risks,according to Reeves, citing the pres-ence of corrosion inhibitors and othersynthetic chemicals.

"Both THFs and steam systemsrequire careful monitoring and main-tenance," he said, adding that becausecurrent THFs have very low toxicityand are used in closed systems, thereis no significant health risk.

Should the Codex draft code beadopted and subsequently approvedby the 139 nations that are membersof Codex Alimeotarius, transport andstorage operations using THFs nolonger would be allowed to ship orstore oils that move in internationaltrade. This. Reeves predicted, wouldadversely affect many major oilseedtrading countries. including the UnitedStates, Maluysia, Indonesia, and thePhilippines.

"This could be seen as an artificialtrade barrier to several nations, withno demonstrable gain in the integrityor safety of edible oils," Reeves said.A U.S. edible oils coalition is suggest-ing that the proposed Codex code beamended to allow THFs that do notpose a significant risk to human healthwhen properly used in closed systems,Reeves said. Fats and oils associationsalso aim to develop internationallyrecognized test methods for detectingTHFs in edible oils.

The Codex Alimentarius Fats andOils Committee is scheduled to meetNov. 4-8, 1996, in london, with

NEWS

NIOP reviews international trade topics

Morethan 500 persons from16 countries attended the1996 annual meeting of the

National Institute of Oilseed Products(NIOP) held March 20-23, 1996, inScottsdale, Arizona.

The meeting featured discussionson regulations facing the industry,including proposals affecting intema-donal shipping of oilseeds, fats, andoils, as well as on prospects for oleo-chemical feedstocks. In addition,world fats and oils trade. including theoutlook for China as a major oilseedmarket. was explored.

International shipping issuesA looming European ban on thermalheating fluids (THFs), a EuropeanCouncil directive on the hygiene offoodstuffs, and new cargo strippingproposals before the InternationalMaritime Organization (lMO) areissues that may affect the oilseed pro-cessing industry, representatives ofNIOP's Technical Committee toldmeeting attendees.

[f the U.S. industry wants to headoff a ban on THFs, it must act rapid-ly. Robert Reeves, president of theInstitute of Shortening and EdibleOils, explained that the EU (Euro-pean Union) Seed Crushers' and OilProcessors' Federation (FEDlOl)first raised this issue by passing avoluntary Code of Practice whichgoes into effect on Jan. 1. 1997. Thiscode restricts heat transfer media inEU oil processing facilities to steamor hOI water. It also prohibits FED!-Ol, members from importing oils thathave been processed in facilitiesusing THFs. Although the FED!OlCode of Practice includes perfor-mance and testing criteria for THFs,no THF has passed the strict require-ments to date.

In addition, the Federation of Oils,Seeds and Fats Associations (FOSFA)has proposed extending this policy totransport vessels and storage facilities.Meanwhile, the International Associa-tion of Seed Crushers' (IASC) Hand-book provides heating instructions forbulk shipments of fats and oils thatrefer only to hot water or low-pressure

Albert Mogerley (left), heed of NtOP'a Technlcel Committee, leada. dlacusslon of lechnl·cal Issues facing lhe Industry. Michael McCormick (rig hi) fields a quesllon as fettow pan-ettsl Robert Reeves IIslens.

saturated steam as acceptable heatingmedia.

The Codex Alimentarius Commis-sion, which establishes standards foradoption by the 139 members of theWorld Trade Organization, also isconsidering action. Currently. theCodex Committee on Fats and Oilshas proposed a "Code of Practice forStorage and Transport of Edible Fatsand Oils in Bulk." This proposal,which currently is at Step 6 of theCodex approval process, says thermalheating oils (THOs) should not beused.

Historically, the only accidentslinked to THFs occurred in late 1960sand during the 1970s and involvedchiefly contamination by polychlori-nated biphenyls (PCBs). Reeves said.These prompted Japan and othercountries. including the United States,to ban PCB-containing THFs fromvirtually any application that had thepotential to contaminate foods, hesaid. The United States and othercountries then developed THFs con-taining no PCBs. Europe's solution,however, was complete substitutionwith steam or hot water.

Commonly used THFs in the Unit-ed States include biphcnyllbiphenyloxide, terphenyls, mineral oil mix-tures, and silicone oils. All of thesehave been shown to exhibit very lowor no toxicity, Reeves said.

Although the United States is mov-ing toward steam/hot water conver-

INFORM, Vol. 7, no. 6 (June 1996)

587

THFs on its agenda. Industry repre-senratives attending the NIOP meetingagreed it will be important to chal-lenge the proposal at that time and tryto avoid its adoption as a code.

"Our goal is to hold it where it is orsend it back for review so thai soundscience will prevail," according toAlbert MogerJey, NIQP technicalcommittee chairmen.

Calling the ban unnecessary from ascientific point of view, Reeves said,"It's like going after a fly with a base-ball bat:'

Marine shipping issuesAnother issue of imponance centeredon fMO initiatives concerning reviewsto MARPOL-Annex II, including newcargo stripping proposals. IMO,Michael W. McConnick of Stolt Par-cel Tankers explained. is an agency ofthe United Nations that focuses onmaritime regulations.

IMO's Bulk Liquids and Gas Sub-committee (BLG) is reviewing cargostripping technology for existing andnew vessels with plans to develop pro-posals on how to improve technologyand methods. Revisions being consid-ered would lower the allowed levels ofstripping product to reduce potentialpollution from ship washings. Underthe plan, vegetable oils will be reclas-sified, McCormick said. A subcom-mittee report, however, is not due until1997, and finalization is slated for1999. with possible amendments in2000.

"NIOP will continue to monitorthis review as it will impact maritimeshipping of vegetable oils and theirderivatives," Mogerley said.

A third issue is an EU directiveconcerning the hygiene of foodstuffs,and FEDIOL's successful request foran exemption regarding the marinetransport of agricultural raw products.

Industry efforts by NIOP andFOSFA to draw up and adopt lists ofacceptable and unacceptable prior car-goes in the transport of fats and oilshave eliminated complaints of con-tamination concerning fats and oilsshipments. John G. Reed Jr. of ADMInternational Inc. pointed out. Howev-er, in 1993, the European Commission(EC) published a directive on hygieneof foodstuffs requiring dedicated

receptacles, vessels, or tankers fortransporting foodstuffs. "This suggest-ed that fats and oils would have tocome into the EC in dedicated con-tainers," Reed said, noting, however,that the directive did not define theterm "foodstuffs."

In 1994, FEDIOL requested anexemption for agricultural raw materi-als that would be further processedafter import. In September 1995, theEC amended the wording, changing"granular" to "granulate," thus grant-ing FEDIOL's request for wholegrains and cilseeds to be exempt fromthe directive. In January 1996, the ECpublished a derogation, repealing thededicated vessel rule for materials notspecifically foodstuffs. This went intoeffect Feb. 12, 1996.

NIOP technical committee posi-tion papers have showed that tradingrules concerning cleaning and pump-ing of vessels and prior cargoes havebeen effective in preventing productcontamination, Reed said. "The endresult is that quality and prevention ofcontamination have been achieved bythe private sector by following rulesindustry drew up," Reed said. adding."Self-policing did and does work."

The burden on trade groups, ses-sion participants agreed, is to providethe expertise to their governmentswhen such issues arise so that any reg-ulations adopted are based on soundscience and are ones that industry canlive with.

Oleochemical prospectsThree speakers at the meeting led adiscussion on oleochemicals. Whilethe oleochemicals industry has pros-pered during the past three years, it isfacing major hurdles. panelists agreed.

Under current European agricultur-al policy, oilseeds grown on set-asideland can only be destined for nonfooduse, F. Heinz Fochem of HenkelKGaA, Dusseldorf, told attendees.

Thus, industrial interests haveexplored producing and using renew-able agricultural products for nonfooduses. In Germany. this has meant cul-tivating erucic rapeseed for the oleo-chemical industry, with 45% erucicacid rapeseed as a minimum level anda premium paid for higher erucic acidcontent.

Similarly, the European oleochemi-cal industry is encouraging productionof high-oleic sunflower, particularlywith a minimum of 90% oleic acid.

Possible applications include deter-gents and lubricants. For instance, ifused at a 5% level in car lubricantsand 15% in industrial lubricants, veg-etable oil-based feedstock would rep-resent 280,000 metric tons (MT).Increasing the ratio to 20% in carlubricants and 50% in industrial lubri-cants would raise feedstock use to1.020,00 MT of vegetable oil. Non-food use of vegetable oils in the EUcould lead to the additional demand ofI million MT to 1.8 million MT bythe year 2000, Fochem said.

Meanwhile, the EU is fundingmethyl ester plants to produce veg-etable oil feedstocks for biodiesel use.Even if rapeseed oil for biodiesel isgrown on set-aside land, "it cannotcompete at the gas station," he con-ceded, noting that due to cost, it willbe viable only in environmentally sen-sitive areas.

Presenting the view of a petroleum-based chemical supplier, Tom O'Brienof Condea Vista Company noted thatsurfactants and detergents representthe largest market for fatty alcohols.Surfactant and detergent manufactur-ers can choose to use oleochemical(derived from animal or vegetablefeedstocks) or petrochemical (derivedfrom petroleum feedstocks) alcohols.

Growth in alcohol demand will beapproximately 4% per year throughthe year 2005. O'Brien predicted.Growth between 1992 and 1995 aver-aged about 10% per year. In 1986, thebalance between petrochemical alco-hols and oleochemical alcohols was60%-40%. Allhough this ratio wasexpected to flip-flop to 40%--60%,that has not occurred. "Now it is about50%--50%," O'Brien said.

It is uncertain whether oleochemi-cal plants built in recent years were inreaction to growth projections or ledto product reformulations favoringoleochemicals, O'Brien said. "Howev-er, people predicted that all of the newdemand would be oleochemical-basedalcohols and, eventually, that oleo-chemical-based alcohols would have100% of the market:'

This will not happen because per-

INFORM. \obi. 7, no. 6 (June 1996)

588

NEWS

Iormance and cost are the primaryconsiderations by users. O'Brien said.An often-cited factor-that of naturalversus synthetic-is really a nonissue,he said. "Both oleochemicals andpetrochemicals are derived from natu-ral materials," he explained. In addi-tion, both need chemical processing toproduce alcohols, and they are chemi-caUy identical.

The key is cost. In fact. price fluc-tuations are stabilizing, O'Brien said.predicting that feedstocks will remaincompetitive in the 25 cents per poundrange for the next five years.

Presenting an oleochemical pointof view, Ian S. Edwards of The Proc-ter & Gamble Co. (P&G) agreed thatalcohol growth will be approximately4-5% a year in the coming years.However, he warned oleochemicalprocessors and traders that deliveringsuperior surfactant performance willbe the key to long-term success oftheir industry.

Calling 1992-1996 "wonderfulyears for the fatty acid industry,"Edwards noted that a significantamount of the overall alcohol capacityincrease has been from fats and oils."Oleochemical capacity has increasedfrom 40% to 49% of capacity duringthis period." he said.

While oleochemical demand andcapacity have grown, a major stum-bling block is cost of feedstock."Unfortunately. in 1994, 1995 andcontinuing into 19%. lauric oil priceshave been at a premium to ethylene,"he said.

Although world demand for fattyacids will continue to increase. addi-tional capacity scheduled to go onlinemay adversely affect profits. Mean-while. ethylene availability will con-tinue to surpass any demand for oleo-chemicals.

"Don't think 'natural' will winunless 'natural' performs beuer andvalue is better:' Edwards warned,pointing out. 'There has been no suc-cessful consumer product launchbased on only 'environmental friend-ly' claims. This is a difficult business,and perfonnance is the major factor."

He added, "We need to eliminatethe price hikes that have plaguedcoconut oil. It isn't just the price butthe price spike that gets us in trouble."

As a result, industry is currentlylooking on creating additional anddependable sources of lauric oils tohelp eliminate price fluctuations.These include developing eupnea.high-Iaurate canola, and new hybridcoconut palms. "We know we willhave competitive lauric oil in thefuture," he said.

Ian Edwarda of Procter & Gamble Co. out-lines prospecta for oleochemieaia.

The challenge is to do this beforeoleochemicals lose out to synthetics."lf you let the synthetic industry takethe market, the market will not bethere later," he said.

Further efforts also arc needed toincrease the value of oleochemicnl co-products such as glycerine, light cuts(shorter-chain fatty acid esters), andheavy cuts (longer-chain fatty acidesters). "The oleochemical industrymust work more in partnership withthe lauric oil producers to maximizethe potential for lauric usage in non-food applications," he concluded.

The next three to four years will belean for the oleochemical industry,Edwards said. warning that syntheticproducers probably will build a newplant soon due to recent price spikesof lauric oils.

ForecastsThe NIOP meeting also included cropand market forecasts. Presenting aforecast of 1996 grain and oilseedcrops based on weather indications,Lawrence J. Heitkemper of CropcastCommercial Operations noted that onefactor will be "La Nina" conditionsthai will bring wet weather in the FarEast, Australia, and South Africa, anddry weather in southern United States,

eastern Argentina, and southern Brazil."La Nina," he explained, is a phase

of southern oscillation of air pressureresulting in stronger trade winds andincreased upwelling of cold waterbetween the international dateline andSouth America.

Indications for U.S. spring plantingconditions were favorable (at the timeof the March meeting) except forsome wetness in Ohio and easternIndiana. However, there will be thethreat of dryness and high-temperaturestress in July and August, cutting intocorn and soybean yields particularlyin the eastern part of the growingregion. he said.

In addition, on the world scene,several countries will lose oilseedacreage to wheat production, "We seetight stocks, and a lot of wheat takingacreage from oilseeds," Heitkempersaid, adding that overall world oilseedproduction probably will increase byonly 1.1% during 1996.

The effects of this latest La Ninashould end by early 1997. resulting inbetter yields during 1997, he said.

Oilseed supply and demandPresenting commodity forecasts basedon supply-and-demand outlook, Car-roll G, Brunthaver of Sparks Compa-nies Inc. predicted that world oitseedswill have to fight for acreage due togrowing demand and favorable pricesfor grains, "And acreage is going tobecome more and more difficult tocome by," he added.

Currently, wheat, corn, and soy-bean stocks are very tight. However,demand for grains is expected toincrease dramatically, with growingworld population and supply deficitsin such countries as Russia and China.

"If China, India, and Malaysiaupgrade their diets, the question iswhether they can produce the grainneeded domestically or do they needto import." he said, noting that if theyfollow the pattern adopted by Japan.South Korea, and Taiwan, they willneed sizeable imports. "What we'reseeing is demand strong enough toraise grain prices to a higher plateau,"he said. Thus, increasing demand forcereals and grains will give oilseedsmore competition.

[continued on pag~590)

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(conti/wetl/rom fXlge 588)World oilseed crush should total

203.4 million Ions in 1996. up from199.4 million Ions during 1995. he pre-dieted. Carryour stocks. meanwhile. areexpected 10 drop to 44.1 million Ions,from 49.5 million in 1995.

Canadian canota acreage willdecline during 1996 as a result of croprotation to avoid disease problems andhigher grain prices. In Europe. mean-while, rapeseed acreage is declining,due in pari 10 higher grain prices.Brazil's harvested oilseed area isdown due 10 reduced acreage, which islinked to reduced credits to farmers.Malaysian palm oil production, how-ever, is forecast to rise. U.S. soybeancarryout is uncertain as it will dependon yields during 1996.

China, meanwhile, will remain akey factor in the picture due to its ris-ing vegetable oil consumption. Brun-thaver said.

may be quite different, he cautioned.pointing to what happened withIndia's import record. A few yearsago, India's imports were verypromising; now, India only imports afew thousand Ions a year. China, henoted, is unpredictable because of itsslow, uneven pace of trade and eco-nomic liberalization.

China can be expected to experi-ence economic growth but at a slowerrate than recent years. Central plan-ning may have lessened, yet govern-ment intervention is still strong. Therehas been rapid urban income growth,yet relatively slow growth in ruralincomes. Rural areas contain 70% ofthe population. with the remaining30% in urban areas. Thus, because oflimited purchasing power in ruralareas. its real market is less than pro-jected by population figures.

Chinese vegetable oil consumptionprobably won't continue to grow as

Jaime A. C•• tllneda dlscunea China'. roleIn the f.ts.nd oil. trading scene.

Agreeing in part, Jaime A. Cas-taneda of the U.S. Department ofAgriculture's (USDA) EconomicResearch Service said China willremain a major yet unpredictableoilseed market due to its governmentpolicies.

Although China potentially offers alarge market for oilseeds and oilseedproducts, what actually will occur

INFORM. Vol. 7. no. 6 (June 1996)

expected to continue, with moreinvestments in feedmills than in oilrefineries.

However, vegetable oil and proteinmeal demand largely outpace domes-tic seed supplies, so trade is essentialfor filling this deficit.

What will be imported and howmuch is uncertain, he said,' adding"certainly China will remain a majoroilseed market." However, oilseed andproduct prices are volatile due toChina's erratic exports and imports."Government policies will have agreater effect than economic funda-mentals in shaping China's oilseedmarket," he concluded.

Industry roundtablePlanting and weather uncertainty aswell as the then yet-to-be settled U.S.Farm Bill were questions raised inindustry roundtable discussions toproject world oilseed supply in the

fast as it has the past two years, Cas-taneda predicted. Palm oil will repre-sent the largest growth, as it is sold ata discount to other oils and because ofthe proximity of its production.

On the meal side, increasing use ofrapeseed meal and cottonseed cakewill restrict potential market growthfor soybean meal. China's tariffs andstate trading practices restrict meatimports in favor of feedstuffs.

One dilemma in predicting themarket is China's ability to modifyproduction quite rapidly. he said.pointing to a jump in China's oilseedproduction by 6.3 million MT, whichrepresents about a 2.2-million-MTincrease in oil production, two yearsago, by encouraging farmers to growon marginal land. "This 'invisibleboot' policy can affect changes rapid-ly," he said.

Protein meal growth has expandedfaster than vegetable oil, and is

coming year. In the United States,analysts said, corn acreage is expectedto increase at the expense of soybeanplantings. And, they agreed. 1996 willbe the year for grains, not soybeans.

Canadian canol a production isdecreasing. Cargill's new canol acrushing facility in Canada is sched-uled to come online in July, resultingin Canada exporting more oil andmeal versus canota seed. This. in tum,could adversely affect Japanese crush-ers. Also. it may result in a backJog ofcanola meal, which could mean someadjustments for Europe.

Among lauric oils. meanwhile.coconut oil production is downapproximately 10%.

Concerning demand. both edible andinedible segments are very competitive.with companies cutting costs whereverthey can. In the induslrial segment, fiveto six years ago. the perception was thatthe industry was moving away from

NIOP conducts business meeting, honors Bek-NielsenAI the 1996 National laltitute of OillccdProducu' (NI0P) __ ." cutreatNlOP ....- MIcbaoI A. DaIoidoa or Uoi-venal Commodides Corp. lIUlounced thatpaid NlOP membenbip II !be eod of 1995totaled lS8 penoal, and bad rileD 10 266ponotII by Mart:h 1996.

At tbiJ __ I -s, B. Bek-Nie"'. ofUnited Plantadonl Bbd.• Kuala Lumpur.Malaysia. m:eivcd the B.T. Rocca Sr. Awardbooorin& him for bia leadenbip ODd c:onIribu-lions to tbe iadultry. Bek-Nielsca joinedNIOPin 1m.

The .w..... flnt _lIabed at !be 50th....u.enary or NlOP, iJ ....... flll'!be I'attnd-i.,....- of NJOP.His --a.T. Roc:<aJr.• allO lID NIOP member who bas Ida owntrading C<lIlIpItI)I in Son FI'ItICiIco-wIs on_ to ....... !be_ .. Bek·_

NlOP ofticen for 1996-1997 8ft; 1)a1ejdm, in Ibc sec-ond _ of bia ,.... ............... ; W'dliam W.Winocld, I!dible 0IIa Corp., fine vice ..... dent;IIerbort P. Scbiet_ Jr. of The _ It 0ambIe Co.,SCCODdvic:e pre __ : ad...neil. L BnIIzer, B.T. RoccaJr. ODd Co., __ •

NIOP', Boord or DUoc:tan _ TtnO Antipordaof Granex Corporation USA. Edward I. Campbell ofArcber Daniel, Midlud Co .• Fnak Cubio Jr. ofTbioaviUc Laboratories IDe•• Roaald L. Fleming of

.......~{ .....)..-CanI a. Corp." •• Id ,. '11 .(rIght) ........... 11 "T. RoocII8r. ~ "T. RoocII Jr. {1IhDwn ......

McVean Trading and InvestmeDt. William H. Fraser ofPule:mak. Bawn &. Co. Inc.• P. Wayne Harrison of StoltParcel Thnkers Inc,. Albert F. Mogerley of Hudson TankTermiaals Corp.. JobD Pease of Aartlus Ioc .. Jim Sutter ofCqiIIInc., Robert 'I'Itomo .... or Best Foo<b U.S., HuryW. TNe of Frito-Lay Inc., ODd James J. Walker of StanleyBt1JIooroaeCorp.

The 1997 NIOP aDnuai meeting will be held Much19-22 at Rancbo Las Palmas. Palm Springs. Califor-nia.

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synthetic (petrochemical) feedstock tooleochemicals. However, price seems tohave fueled demand, rather thanwhether feedstock was petroleum-basedor oleochemical-based.

'Inside Washington'Meanwhile, presenting an "insideWashington" report, Richard E.Crlstol. NIOP's executive director,noted election campaigning will meanlittle productive activity by Congressduring 1996. Although a March pollshowed President Bill Clinton aheadof Senator Bob Dole, "it's a long wayto November and anything can hap-pen," he said.

Meanwhile. the first session of thel04th Congress "has been the longest,yet lowest in terms of legislationpassed," Cristo I said. Eighty-eightbills were enacted during 1995, com-

pared with 255 in 1994, he said.Cristo! said one bill-The Edible

Oil Regulatory Reform Act-signedby President Clinton during Novem-ber 1995 was the result of successfulcampaigning by the Vegetable Oil andAnimal Fat Coalition, of which NIOPwas a part. This legislation differenti-ates between fats, oils, and greasesversus petroleum products in OPA 90governing spills.

One of the most frustrating for vot-ers is the "federal budget fiasco,"Cristo I noted. Eventually, a budgetagreement will be reached, but itprobably will include a deficit.

Cristo! predicted there is no chancefor fast-track legislation for tradeagreements until 1997 at the earliest;the previous provision expired in 1993.

Another fact of Washington life isthat 32 members of the House and 13

senators have said they won't seek re-election. "The inability to compromisemakes Congress look ineffective,"Cristol said.

U.S. voters, meanwhile, "are fickle.They are willing to make sacrifices, aslong as someone else has to, notthem," he said, adding that they alsoare increasingly cynical and "are look-ing for some way of steadying them-selves in a sea of uncertainty."

Regulations to watch include pro-posals to do away with standards ofidentity, such as for mayonnaise andmargarine. NIOP and other tradegroups, however, have opposed suchaction. U.S. Food and Drug Adminis-tration rules concerning food andnutrition labeling are areas to watch,as well as U.S. Environmental Protec-tion Agency regulations concerningpesticides.

Seed supply is topic at Oilseed ConferenceProduction and stocks of edible oilsshould be sufficient to meet demandin the current marketing year, butwhat happens during the 1996-1997marketing year?

Global edible oil production forthat year is forecast at 70.5 millionmetric tons (MMT), a below-trendlevel thai could mean an increase inU.S. edible oil exports, Smith BarneyInc. oilseed analyst Dale Gustafsonsaid at the 1996 Oilseed Conferenceheld this past March in New Orleans.Global oil production in the currentmarketing year is forecast at 70.6MMT, he said.

In recent years, oilseed acreageoutside the United Stales has 'risen by16 million hectares (almost 40 millionacres), Gustafson said, but given cur-rent tight global supplies of wheat andother grains entering the northernhemisphere growing season, growers_probably will favor grain crops overoilseed crops.

A global net reduction in oilseedarea of approximately three millionhectares could result, he estimated,with virtually all of the reduction inrapeseed and sunflower seed. Theaverage yield for these crops is about

1.3 tons per hectare. The resultingfour million metric IOn reduction inoils extracted from sunflowerseed/rapeseed will reduce oil suppliesduring the 1996-1997 crop year by1.6 MMT, he said.

The United States, as the world'sprimary oil stocks holder, thus couldsee increased exports in 1996-1997,Gustafson said.

"Oilseed production always is sub-ject to the vagaries of the weather,"Gustafson said, "but this year therealso is intense competition from graincrops for land. High grain and proteinprices may slow growth in the live-stock sector and lead to a reducedoilseed crush.

"Oil prices have been depressed bythe buildup of stocks. but the lowerprices should begin to encourageincreased consumption. There shouldbe a strong expansion of vegetable oiltrade during the 1996-1997 season.The resulting reduction in world oilstock should act to increase both oilprices and oil's share of the total valueof oilseed crops."

Gustafson presented data on fatsand oils supply/demand in severalnations (Tables J and 2).

David G. Lyons, vice president forgovernment relations with the LouisDreyfus Corporation in Washington,D.C., agreed with Gustafson that meU.S. can be selling more oilseeds andoilseed products in global marketsduring coming years, and that smallharvests could create major problemsin meeting demand. Lyons saidincreasing world demand for suchgoods, plus global trade agreementsand the North American Free TradeAgreement (NAFfA), "offer excitinggrowth opportunities."

Lyons specifically cited increasingglobal demand for diets with morepoultry and livestock products-oilseed-based products--coupled witha revised U.S. farm program thatLyons said "will surely result in a netincrease in soybean and other oilseedsover time."

That oilseed acreage increase willoccur, he said, because farmers nolonger will have to plant a specificpercentage of their acreage in com orgrains to maintain eligibility for sub-sidy payments mat are discontinued inthe new farm legislation.

Large oilseed harvests are neededduring the next few years to meet

INFORM, VOl. 7. no. 6 (June 1996)

593

Table 1Fats and oils supply/demand situation for selected nations

Production Imports Exports Consumption Ending stocks(thousand metric tons)

China1989-1990 3,574 2,055 134 5,395 1001992-1993 4,786 1,115 182 5.719 Not available1995--1996 6,200 3,000 400 8,800 Not available

European Union 151989-1990 8.324 5,519 4.207 9,565 1.7481992-1993 8.2>0 5,447 3.970 9,818 1.7121995--1996 9,255 6,479 4,931 11.ISI 1,106

India1989-1990 4,260 526 o 5.037 1301992-1993 5.215 546 o 5,314 7.1995--1996 5,548 800 o 6,300 80

Mexico1989-1990 708 52' o 1.167 451992-1993 944 502 o 1.258 J71995-1996 1,219 638 31 1,><» I.Pakistan1989-1990 34' 1,024 o 1,323 1071992-1993 404 1.141 o 1.591 '21995-1996 J75 1,414 o 1.790 62

demand "or we will have a tremen-dous problem," Lyons said. He notedthat if U.S. farmers do not producelarge crops of feed materials this year,livestock producers could reduceherds rather than pay high prices forfeedstuffs. Cutbacks in breeding stockfor two years would mean a reductionin feed demand after that, he com-mented.

Ischexane as a solventSteve Gregory of Texas A&M Univer-sity's Food Protein Research Center inCollege Station, Texas, said iniral testson use of isohexane as an extractionsolvent showed higher throughput atlower overall energy cost, but work iscontinuing to make sure the resultswere not site-specific. Tests at anadditional site were invalidated bymechanical problems during the trialrun, he said. Another set of tests atanother site were to begin "in the nearfuture." Greg Collins of PhillipsPetroleum said isohexane was selling,as of early March, a( about 43% morethan a-hexane.

As part of the same discussion onhexane, Phil Wakelyn of the NationalCotton Council in Washington, D.C ..reponed that the federal Environmen-tal Protection Agency may be acceler-ating Clean Air Act (CAA) regula-tions with regard to hexane extractionfacilities. Wakelyn said a Marylandfacility located within an area that hasnot met CAA standards may triggeradoption of Maximum AchieveableControl Technology (MACT) regula-tions faster than had been expected.The end result could be federal stan-dards or standards set by individualstates. Federal regulations had beenexpected closer to the end of the cen-tury because hexane was listed in the"last wave" of materials to be evaluat-ed, Wakelyn said, but EPA has decid-ed to request information from soy-bean extraction facilities this summer.MACf is a program to set timetablesfor facilities to match releases of thebest 12% of operating facilities; thestandards will be racheted upward insuccessive waves. Wakelyn noted thatsoybean facilities, with capacities of

NAFTA updateU.S. oilseed trade with Mexico willrise as the Mexican economy recoversfrom the 1994 devaluation of the peso,according to John Link of the Eco-nomic Research Service, part of theU.S. Department of Agriculture.

As per capita income rises in Mexi-co, meat demand will increase whichshould mean increasing grain and soy-bean demand through the rest of thedecade, Link said. An increase inMexican crushing capacity-Cargillhas begun construction of a newextraction facility there-may meanexport demand will be skewed moretoward soybeans than mean, he said.Others said when NAFTA approval

up to 4,()(X)tons per day, are apprecia-bly larger than cottonseed extractionoperations. The question of whetheremissions levels are to be based on aneight-hour measurement or a one-hourmeasurement could result in addition-al regions being classified as nonat-tainment areas under CAA regula-tions, he said.

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Table 2Fats and oils supply/demand situation for selected nations

Production Imports Consumption(thousand metric tons)

Bangladesh1989-1990 101 392 4231992-1993 109 401 5291995-1996 106 620 704

Former SOylet Union1989-1990 3,290 1.384 3,9451992-1993 2,426 902 2,8941995-1996 2,142 900 2,773

Iran1989--1990 34 611 6451992-1993 J2 547 5781995-1996 J4 766 800

Brazil, Argentina1989-1990 5,463 3,141 2,3561992-1993 5,885 2,938 2,8241995-1996 7,125 4.300 2,900

was being debated rna! more-efficientU.S. processing facilities would makeit more economical for Mexico toimport meal rather than soybeans.

Link said there are structural limi-tations to agricultural expansion inMexico, including relatively low-tech-nology farming systems and, based onpresent government policy there, lessgovernment intervention in agricultur-al markets. Current plans in Mexicocall for a phase-out, over 15 years, offarm subsidies, he said.

adsorbent-based refining involvingadsorbtive removal of sulfur fromcanola; (f) adsorptive bleaching underpressure; and (g) thin-film deodoriza-tion to preserve tocopherols andreduce heat isomerization. Carrdescribed other ventures involvingpas' commercial venture, NuvotecbVentures International Inc. (NVl).

Willie Loh of Cargill Foods in Min-neapolis, Minnesota, described thedevelopment of the Clear VaHey brandcanola oils, focusing on the commer-cialization steps required after a modi-fied-oil variety of an oilseed has beendeveloped, whether through traditionalbreeding techniques or throughbiotechnology. These steps includeseed production; identity preservationin storage, transportation, and process-ing; and sales/marketing efforts to con-vince potential users that the modifiedoil would provide an improvementworth any extra cost involved.

"New product concept often bogsdonw in technical research and devel-opment issues," Loh said. "In retro-spect, however, Rand D is only theinitial hurdle facing new product con-cepts."

ARS research goalsThe USDA's Agricultural ResearchService (ARS) is parent organization

Canota developmentsRoy Carr of the POS Pilot Plant Cor-poration in Saskatoon, Saskatchewan,Canada, reviewed some alternativeprocessing procedures developed atthat facility. The descriptions were ingeneral terms in that some details areconsidered proprietary information.Among the procedures POS has devel-oped or is testing include (a) enzymig.deactivation gf osinase 'activify in'W1iOIe: 'Iseed via a Ive- . ute-treiii-ment at SOGC; (b) enzyme-assistedexpeller operations for improved mealquality; (c) aqueous-enzymic oilextraction yielding improved oil, suit-able for physical refining with com-plex degumming, and meal, which canbe used at higher levels in feedrations; (d) enzymic degumming; (e)

to the USDA post-harvest utilizationresearch facilities and therefore helpsdetermine U.S. research priorities inagriculture. Robert 1. Reginalo, ARS'associate administrator, described howincreasing urban political influence,environmental concerns, and foreignpolicy in recent decades has influ-enced USDA research programs. Henoted that the USDA 1994 budget of$63 billion included about $15 billion(of 24%) for farmer-related programsand $38 billion (60%) for food stampand nutrition programs.

One of ARS' primary goalsremains adequate supplies of rawagricultural commodities, he said.This involves pest control, whichbrings in environmental concernsabout safety of chemical and biologi-cal control methods. ARS also issupporting research to developdomestic sources for materials cur-rently derived from such importedcrops as castor and tung oils, henoted. ARS' nutritional researchhelps protect both food and feedmarkets for the oil and meal portionsof oilseeds, Reginalo said.

Ralph Daniels, president and CEOof Agrotech Inc. in Sherman, Texas,described his firm's operations of pro-cessing soapsrock from an edible oilrefinery that is using potassiumhydroxide rathr than sodium hydrox-ide into a liquid fertilizer (INFORM50421-426).

Additional papersOther speakers at the meeting includ-ed Saurabh Lawate of The LubrizolCorporation of Wickcliffe, Ohio, whodescribed potential lubricant andhydraulic uses of the finn's high-oleicsunflower oil; and Charles Grabiel ofOmniTech International in Midland,Michigan, discussed his finn's "Pro-teinol" adhesives and composite mate-rials developed from soy protein aswell as research on other uses of soyprotein. In a series of talks on cotton-seed utilization research, Wayne Mar-shall of the USDA Southern RegionalResearch Center described work onusing cottonseed hulls as an adsorbentmaterial for metals remediation; L.D.Satter of the U.S. Dairy Forage

(continued on page 596)

INFORM. VOl. 7. no. 6 (June 1996)

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NEWS

G.". DuaJdl. _The 45th Oilseed Conference wasdedicated to George H. Dunklin.president since 1962 of PlantersCOlton Oil Mill Inc. in Pine Bluff,Arluinsa>.

Dunklin, a longtime backer ofthe annual event. is a past presidentof the National Cottonseed ProductsAssociation (NePA) and the Mis-sissippi Valley Oilseed ProcessorsAssociation (MVOPA) which spon-sored the event prior to MVQPA'sdissolution. Dunklin has been a keymember of the NePA research andeducation committee for manyyears. Dunklin. in accepting thehonor, said he wanted to "expressprofound gratitude 10 the SouthernRegional Research Center for itsgreat work with Industryr to improve the cottonseed processing industry.

In the photo above. Dunklin (right) displays the plaque he receivedfrom Ernie C. Immon Jr.• president of Cbikasha Cotton Oil Mill in Chan-dler. Arizona. during the conference in New Orleans. lmmon served asgeneral chairperson for the conference.

(cofl/inut!djrom {X/St! 594)

Research Center in Madison. Wiscon-sin. on feeding heat-treated cottonseedto lactating dairy cows; Kin-PingWong of California State University inFresno. California. on detoxificationof cottonseed meals by microorgan-isms; Dan Krieg of Texas Tech Uni-versity in Lubbock. Texas, on geneticand environmental influences on cot-tonseed oil fatty acid composition;and Sekhar Boddupalli of Monsantoin Chesterfield. Missouri, on geneticengineering of cotton and oilseeds.Larry Beach of Pioneer Hi-Bred Inter-national Inc. in Johnston, Iowa, ongenetic engineering to improve pro-tein quality of soybeans.

Several poster presentations wereincluded. Poster paper titles and pri-mary authors included: Analysis ofMinor Constituents of Selected Veg-etable Oils, SL Abidi, USDA Nation-al Center for Agricultural UtilizationResearch. Peoria, Illinois; BiocatalyticOxidation of Oilseed-Derived Acyl-glycerols. George J. Piazza, USDAEastern Regional Research Center,Philadelphia, Pennsylvania; Food

application for Specialty Canola Oils.W.H. Loh. Cargill; Gossypol Trans-port in Mature Ramouillet Lambs,M.K. Dowd, USDA Southern Region-al Research Center (SRRC); Mem-brane Treatment of Oil RefineryWastewater, S.F. Koseoglu, Food Pro-tein Rand 0 Center, Texas A&M Uni-versity; Oilseeds/Oils Processing Rand D and Commercialization at PaS,R. Carr, POS Pilot Plant Corporation;Quick Methods for the Determinationof Free Fatty Acid Content in Cotton-seed, P.J. Wan, SDA SRRC; andV~P9r ~~ctivati~. of Free ,Gos_sYJ201in Cottonseed Meals. R.J. Hron,USDA~ SRRC, New Orleans.Louisiana.

The USDA has copies of paperspresented during the 45th OilseedConference available for personswishing them. To receive a set, pleasecontact Shirley Saucier, USDA South-ern Regional Research Center, P.O.Box 19687, New Orleans. Louisiana70179 (phone: 504-286-4200; fax:504-286-4419).

The 1997 Oilseed Conference willbe held March 9-11. 1997, at theMonteleone Hotel in New Orleans.

Cargill building Mexicansoy processing facilityCargill de Mexico, a subsidiary ofCargill Inc., is constructing a $30-mil-lion soybean crushing plant near Mex-ico City; it is expected to begin pro-duction by March 1997.

The facility's initial capacity willbe 1,500 metric tons (MT) of soy-beans per day. The plant is expected toprocess primarily U.S. soybeans; theoil will be sold to major refiners incentral Mexico and the meal will besold for use in the Mexican feedindustry.

The crushing plant will bedesigned for eventual expansion to3,000 MT per day. The unit is adja-cent 10 Cargill's recently completedAlitalaquic Corn Syrup DistributionCenter. 40 miles north of Mexico City.

Soy farmer cooperativebuilding processing plantSOUlh Dakota Soybean Processors'(SDSP) new soybean crushing facilityin Volga, South Dakota, is scheduledto begin operations in mid-September1996.

Construction of the $32-millionfacility began in September 1995. Thesolvent extraction plant, equippedwith a DeSmet 3LM extraction sys-tem, initially is expected to process1.500 tons of soybeans per day but isbeing designed for a capacity 2,000Ions a day. Over 50 persons will workat the facility,

SDSP is a 2,080-member coopera-tive made up primarily of farmersfrom South Dakota and Western Min-nesota. The new facility, which willcrush soybeans provided only by itsmembers, is 30 miles from the borderbetween Minnesota and South Dakota.

The cooperative organized in 1993specifically to build a crushing facili-ty. Farmers said they had been receiv-ing relatively low prices for their soy-beans, attributed to the cost of ship-ping their beans 10 out-of-state pro-cessing sites, and then paying relative-ly high costs for livestock feed,including freight costs to ship soy-based feed back to them.

INfORM, Vot. 7. no. 6 (June 1996)

597

seed meal the leading product, aremainly sold domestically.

Curt Bergman is managing directorof the new company.

canola variety Apollo which has 3%or less linolenic acid content.

Cooperative members produced 94million bushels of soybeans in 1994and 78 million bushels in 1995. "Wehave no (soy) processing in the wholestale of South Dakota. So all thesebeans went to Iowa, Nebraska. orMinnesota," Bill Riechers, SDSPadministrative assistant, said.

Lead engineering for the projecthas been provided by the firm ofLightower Johnson Associates inFargo. North Dakota.

Karlsbamns createsnew business unitKarlshamns AB has acquired theshares in Svensk Oljeextrakticn AB,formerly owned by Unilever Svergie,and created a new company. Karl-shamns Crushing & Feed AB.

Activities of this unit includeextraction from oil-bearing seeds andthe sale of feed proteins and feed fats.Karlshamns Crushing & Feed has thelargest crushing capacity in the Nordicregion.

The major portion of the oils pro-duced are transferred to KarlshamnsAB refineries for further processing.Feed products. with heat-treated rape-

Oil World sees upswingin ex-USSR oilseed useSigns of an economic upturn in theformer Soviet bloc are beginning toappear in data on its use of oilseedsand oilseed products.

OJ[ World, the weekly oilseedsmarkets newsletter from ISTA Mielkein Hamburg, Germany, said in itsMarch 29. 1996, issue that the "trans-formation losses" have ended and thatproduction and demand for oilseedsand oilseed products has begun toincrease. Oil World uses the term"transformation losses" to describe the

AC Humko constructsbeadquarters, tecb centerAC Humko is building a combinedheadquarters and technical center inMemphis, Tennessee. with completionexpected in early 1997.

The 58,OQO-square-foot building ineffect will replace facilities retainedby Kraft Food Inc. when it sold itsKraft Food Ingredients Group toAssociated British Foods (ABF) in1995. The former Kraft Food Ingredi-ents Group and Abitec (formerly Karl-shamns USA Inc.), two ABF sub-sidiaries, are combining operations inMemphis under the AC Humko name.

The new facility is being built on asix-acre site approximately four milesfrom AC Humko's pilot plant inMemphis. Construction was to beginduring May 1996.

"tt's a five-minute drive from thepilot plant," according to RobinRogers, section manager of analyticalservices who also manages the pilotplant and technical center.

In other news, AC Humko said itwill introduce during June a low-linolenic acid canola oil as part of itsHorizon Series line of property-enhanced oils. The new canol a oilcontains 3% linolenic acid andapproximately 64% oleic acid. versusthe II % linolenic acid and 61% oleicacid usually found in commoditycanola. The company also markets alow-linolenic soybean oil and a high-oleic sunflower oil.

Low-linolenic acid canol a oil ismarketed in the United States byCargill in its Clear Valley line. Mean-while in Canada. CanAmera Foodsprocesses and markets oil from the

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598

NEWS

difference between actual consump-tion and trendlinc consumption in theformer Soviet Union and its Europeanallied nations during the period1990-1994.

"In East Europe. the recovery startedin 1994-1995 when both the productionand domestic usage of oils. fats,oilmeals, and livestock: products beganto increase again," Oil World said.

The recovery in the former SovietUnion began during the last quarter of1995, the newsletter said.

Increases in the area's domesticproduction of oilseed products proba-bly at first will mean a reduction inimports, the ncwslencr continued.

In the former Eastern Europeannations, Oil World forecasts October1995-Seplember 1996 production of17 oils and fats al 2.59 million metrictons (MMT). compared to 2.41 MMTthe previous season; imports for thecurrent market year are forecast todecline to 455,000 metric tons com-pared to the previous season's 482,000metric tons, and 1995-1996 total dis-appearance should be 2.6 MMT com-pared to the previous season's 2.5MMT. If the forecast holds true, itwould be the second straight rise in thearea's annual domestic disappearance.according to Oil World An1lualdata.

In the former Soviet Union, Oilworta forecasts 1995-1996 produc-tion of 17 oils and fats at 4.04 MMTcompared to the previous season's3.70 MMT; imports at 450,000 metrictons compared to 588,000 metric tons;and domestic disappearance at 4.29MMT compared to 4.12 MMT. Theconsumption figure remains below the7.05 MMT of the 1989-1990 market-ing year. but is the first projected risein annual consumption since then.

On the oil meal side, EasternEurope's production and imports areforecast at 2.55 MMT and 2.05MMT, respectively. Comparable num-bers for the previous season were 2.33MMT and 2.13 MMT. Total suppliesof oil meal for animal feed in the1995-1996 marketing year are fore-cast at 3.99 MMT. compared to 3.89MMT the previous season.

The former Soviet Union's produc-tion. imports. and domestic disappear-ance of oil meals for the current mar-keting year are forecast at 3.98 MMT,

415.000 MT and 4.25 MMT. respec-tively. Comparable figures for the pre-vious season were 3.54 MMT,520,000 metric tons, and 3.94 MMT.respectively.

Another sign of the economicupturn in the region was in the WorldTrade Organization's March annualspring interim report on global mer-chandise trade. The World Trade Orga-nization (WTO) said that during 1995the value of merchandise imports andexports in the former Soviet bloc eachrose by about 25% during 1995, mark-ing the largest increase-although froma relatively low baseline-of anyregion in the world. A report from theReuters news service on the WTOreport described the fonner Soviet blocas the world's "most dynamic region"for trade. easing out Asia. Asia'simport growth was 13% and its exportgrowth was 9.5%, the report said. Dur-ing 1995. global trade topped $6.000billion for the first time. the WTOreport said, a rise of 8%,

The U.S. Department of Agricul-ture (USDA) released, about the sametime as the Oil World newsletter andthe WTO report, a study on grainprices in the former Soviet Union, thatnoted more and more of the region'sgrain production is moving into pri-vate commercial channels (includingbarter). In 1993, about a third of Rus-sian grain production was marketedthrough private channels: in1994-1995, that share had risen totwo-thirds, the report said. Grainprices are still below, but are gettingcloser to, global market prices, thereport said, which should in the longrun encourage production and discour-age waste. resulting in reduced grainimports. Grain imports for the currentand previous marketing year wereestimated by USDA at about a third ofthe level of 1992-1993.

Korea. The report for the previousyear had listed domestic usage at584.900 MT.

About 95% of edible fats and oilswere imported for J 994, the reportsaid, with South Korean per capitaconsumption of visible fats and oils at39.7 grams, providing about 12% oftotal calories. Vegetable oils account-ed for 91 % of total visible fats andoils supplies. the report said.

The report listed volumes ofimported oils as: soybean, 201,000MT; palm. 165,000 MT; com, 64.000MT; beef tallow, 55.400 MT; coconut,45.600; sesame, 27,500 MT; cotton-seed, 18,100 MT; rapeseed. 11,900MT; fish, 4,500 MT; other vegetableoils. 33,000 MT; and animal fats. 700MT.

Domestic production of fats andoils was reported as: rice bran, 10,200.MT; sesame, 9.500 MT; perilla, 8,800MT; rapeseed. 1.100 MT; and fish oil.500MT.

Andean Pact to becomeAndean CommunityLatin American countries taking panin the Andean Pact have replaced the26-year-old trade group with theAndean Community.

Bolivia, Colombia, Ecuador. Peru,and Venezuela make up the newAndean Community, which they envi-sion will seek economic and politicalharmony. Country presidents said thechanges were needed to allow theAndean group to start negotiationswith other trade blocs in Europe andAsia. according to a new report in theMarch 12. 1996. issue of The Ioumalof Commerce.

The report noted that officials havenot specified how the Andean Com-munity will differ from the AndeanPack other than in name.

South Korean usageof vegetable oil risesTotal edible oil usage in SouthKorea during 1994 was 652.300metric tons (MT), according to therecent Food Balance Sheel pub-lished by the government of South

Austria to be sitefor biofuels meetingMore than 700 persons are expected toattend the 2nd European BiofuelsForum that will be held Sept. 22-25.

INFORM. VOl. 7. no. 6 (June 1996)

599

1996. at the Grazer Congress hall inGraz. Vienna, Austria.

The conference will be organizedin five sessions. The first session willreview developments in Europe sincethe previous biofuels forum held dur-ing 1994 in Tours. France. The secondsession will focus on production ofbiofuels, including feedstocks andconversion technologies. The thirdsession will look at the specificity ofbiofuels, followed by a session onindustry/government coordination onbiodiesel commercialization; and afinal session on recommendations tothe European Union and membernations for legisutive/regulatoryactions. There will be simultaneoustranslation available between Gcnnan,English, French. and Italian.

Sponsors for the meeting includethe Austrian Federal Ministries ofAgriculture and Forestry, and of Eco-nomic Affairs. in cooperation with theFederal Ministries of Environment,and of Sciences. Research and theArts.

Infonnation and registration formswill be available from the conferencesecretariat/organizers: JoanneumResearch, 2nd European BiofuelsConference. Elisabethstrasse II, A·8100 Graz. Austria (phone: 43-316-876-334; fax: 43·316·876·404: e-mail: biofuels@pbox.joanneum.ac.at).

Hamburg Soya Daysspeakers announcedOrganizers of the 3rd Soya Days con-ference, to be held Sept. 26-27,1996,in Hamburg, Germany, have identifiedthe dozen speakers who will partici-pate in the conference.

Scheduled speakers and their topicsare: M.S. White, Switzerland, on soyas a source for functional foods; A.Uzzan, France, on marketing of foodscontaining soy protein; F. Meuser,Germany. on multifunctional proper-lies of soy dietary fiber; H. Steinhart,Gennany, on food safety of soy prod-ucts: H. Bohm. Germany, onisoflavonoids: H. Pealnick. Belgium,on functional properties of soy proteinin meals and baiters; K.Dcscheemaecker. Belgium. on soy-

bean-based beverages; J.-P. Arman.France, on liposome-based beverages:M. Schneider, Germany, on designerlecithins in emulsions; W. Mathew,United Kingdom. on functional prop-erties of lecithins in baking: H. Zaki,France. on lecithin fractions in confec-tionery products: and M. Horst. Ger-many, on the regulatoryllegislative sit-uation in Europe regarding soy prod-ucts.

Further information and registra-tion forms for the conference areavailable from 3rd Hamburg SoyaConference, secretariat; Postfac 26 1665.20539 Hamburg, Gennany.

Researchers: oilseed rapecould cross-pollinateResearch at the Rise National Labore-tory in Roskilde, Denmark. has sug-gested that genetically engineeredrapeseed can cross-pollinate with aweedy relative, which could makerapeseed genetically engineered to tol-erate herbicides less effective than ini-tiallyenvisioned.

Canadian researchers said the pos-sibility of spontaneous cross-pollina-tion is not unexpected, but is notexpected to be a major problem.

In the "Scientific Correspondence"section of the March 7, 1996, issue ofNature, Thomas R. Mikkelsen. BenteAnderson, and Rikke Bagger J0r-gensen reported that transgenic, herbi-cide-tolerant weed-like plants withBrassica campestris morphology, thesame number of chromosomes as B.campenris and high fertility havebeen produced as early as the first-backcross generation in field experi-ments where transgenic, herbicide-tol-erant, interspecific hybrids are growntogether with B. campestris.

In their work, the Danishresearchers investigated hybridizationand backerossing between transgenicglufosinate-toleram rapeseed and 8.compestris.

"Contrary to previous observations,interspecific hybrids were not sterile,but produced an average of more than450 seeds per plant," they wrote.

"The occurrence of fertile, trans-genic weed-like plants after just two

generations of hybridization and back-crossing suggests a possible rapidspread of genes from oilseed rape tothe weedy relative B. compestris, andthis should be taken into accountwhen considering the consequences oftransferring new traits to oilseedrape

In response, R. Keith Downey,retired research scientist instrumentalin canota breeding in Canada, notedthat the finding of spontaneous cross-es between the species B. nopus andB. campestris in the field "comes asno surprise .... The progeny for suchcrosses have never been a problem inthe ecosystem with both species andtheir hybrids being easily controlledwith cultivation and presently regis-tered herbicides:'

The transfer of a gene whichimparts resistance to a nonselectiveherbicide from B. napus to the wildpopulation is anticipated over time,Downey added. noting that this shouldnot pose a threat to rapeseed or canolaproduction either in Canada orEurope.

"Under normal agricultural practicein Canada and Europe, the opportunityfor interspecific crossing in fieldswhere sowing seed is produced is rarebecause regulations for the productionof Foundation and Certified seedrequire the field be free of contaminat-ing species and also be isolated fromother Brassica species. The conditionscreated by the Danish workers is aworst-case scenario since a pure standof interspecific hybrids is extremelyunlikely to occur in nature," Downeysaid.

Also, he said. the chances for inter-specific crosses to take place in a fieldsown with herbicide-tolerant canol awould be extremely rare because thefield would have been sprayed withthe herbicide, killing the B.campestris before it flowered.

Meanwhile. as a result of the Dan-ish report. Germany's largest environ-mental protection pressuregroup--known as BUND-has calledfor a ban in Germany on all fieldexperiments with genetically manipu-lated plants. according to a report inthe March 14, 1996, issue of Nature.

German scientists as well as theDanish researchers, however, said

INFORM. Vol. 7. no. 6 (June 1996)

NEWS

environmentalists are "deliberatelymisinterpreting the data to 'prove' adanger that the scientists deny exists,"Nature reported.

The article also noted that all 15small field trials to study the environ-mental safety of growing geneticallymanipulated plants in normal agricul-tural environments, being conducted

by universities and research institutesduring 1995 in Germany, were cutshort when the fields were partially ortotally destroyed by environmentalactivists. Larger scale trials in Ger-many were damaged, but suffered rel-atively fewer problems because thesize of the fields made them difficultto destroy, the article said.

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United Soybean Boardpromotes soy binderThe United Soybean Board (USB) isseeking commercial interest for itsProreinol technology which incorpo-rales soy protein isolates for use insuch applications as adhesives andthermoset composites.

Protein isolates from soybeans canbe combined with phenolic or amino-plast resins 10 create adhesives thatcan be used with wood and wood-based products. "This adhesiveexhibits exceptional performancemainly because it can effectively gluehigh-moisture wood," according toChuck Grabiel of Omni Tech Interna-tional, a consulting technical firmworking with USB on applications forProteinol products.

The soy protein isolates also canbe used as a binder in composites.Fillers for the composites can includeagricultural crop wastes, forest prod-uct wastes, or shredded newsprint orpaper products. "These materials canbe an alternative to fiberglass-rein-forced composites," according toTom Doyle, also of Omni Tech Inter-national.

USB is funding research with Pro-teinol composites. both to make andrefine the soy isolate material and toevaluate and test various laminates."Additional work is still needed tohelp understand the chemistry of soyproteins better. further improve themoisture resistance of some of the for-mulations, study the fiberlbinder com-patibility, and gain more processingefficiency," Doyle said,

Both extruded shapes and compres-sion molded sheets are being pro-duced and tested. USB hopes to havesamples available later this year forevaluation by commercial interests."u's too early now to tell what appli-cations will be the most favorable,"Doyle said.

There already are composite prod-ucts on the market that incorporatesoybean-derived material. PhenixComposites of Minnesota, forinstance, markets Environ, a compos-ite material made out of soybeans andrecycled newspapers that looks Likegranite but handles like hardwood.This product, made from 40% high-

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INfORM. Vol. 7. no. 6 (June 1996)

601

protein soybean flour. 40% recyclednewspapers and 20% color, and otheringredients which help bond the mate-rials together, is aimed at such mar-kets as picture frames, furniture.walls. and flooring materials.

Exercise improveseffects of modified dietCombining a low-fat, low-cholesteroldiet with exercise is more efficient atreducing blood cholesterol concentra-tions than the diet with no exercise,according to findings presented at theAmerican Hearl Association's 36thAnnual Conference on CardiovascularDisease Epidemiology and Preventionheld in March.

Marcia Stefanick of the StanfordCenter for Research in Disease pre-sented data on the effects of diet withand without exercise on 197 men and180 postmenopausal women with highconcentrations of low-density lipopro-tein (LDL) cholesterol and low levelsof high-density lipoprotein (HDL)cholesterol. according to a repon pub-lished in the March 23. 1995 issue ofThe Lancet.

Participants were divided into fourgroups: those following the Step IIDiet; those undertaking exercise:those following both the diet andexercise program; and a controlgroup that made no lifestyle changes.Cholesterol levels were comparedafter a year.

The Step II Diet, recommended bythe U.S. National Cholesterol Educa-tion Program, provides less than 30%of calories from fat. with less than 7%from saturated fat. and less than 200mg per day of dietary cholesterol.

The greatest improvements incholesterol levels were experienced bymen and women who followed thediet and exercised.

Japanese fish farmingcontinues to growFish farming production in Japan grewto 422,400 tons during 1995, up 20%from the previous year. according to

statistics from the Japan Cultured FishAssociation.

Due to a decrease in the availabil-ity of sardine-based feed, fish farm-ers are using more compound fishfeed. The production of cultured yet-lowtail, the major species onJapanese fish farms. grew by nearly60%. The association said fish farm-ers expect to produce.

Meanwhile, Chu Itoh Corp. hasestablished a Marine Research lnsti-tute at Nanto-chc in Mie Prefecture toconsolidate efforts to develop aquacul-ture feed for fish.

Nihon Haigo Shiryo Co., a majorcompound feed producer in Japan. hasannounced it will increase its produc-tion of high-quality feed for culturedyellowtail by constructing a ¥150million (approximately $1.4 million)production line at its Kansai factory inKobe. This project wil l increasecapacity by 20--30%.

Names in the newsAOCS member Fritz Pilz will headthe business operations of TreibacnerRecycling Division, a newly formeddivision of Treibachcr lndustrie AG inTreibach-Althofn, Austria. The divi-sion will focus on disposaJ and reuti-lization of industrial materials. Theother division created in the reorgani-zation, Trelbacher Alloymcl, willfocus on production of ferro alloysand vanadium compounds. and theirmarketing.

AOCS member AI McGurdy is nowchairperson of the Department of FoodScience and Human Nutrition atWashington State University in Pull-man, Washington. He previous was atthe University of Saskatchewan. Hiswife. Sandra McCurdy, said she plans totake about six months getting their fami-ly senled in its new locale before resum-ing full-time work. She has been withPOS Pilot Plant Corporation and servedas a member-at-large of the AOCS Gov-erning Board in 1993 and 1994.

A.J. St.Angelo has retired from hisfull-time position as research chemistat the U.S. Department of Agricul~

ture's Southern Regional ResearchCenter (SRRC). SI. Angelo will be apart-time collaborator at the SRRC,but said he otherwise plans to spendhis time traveling. camping. fishing,and taking up golf again. ''1 put awaythe clubs when Ibegan full-time grad-uate school, so now I've bought a newset," he said. An AOCS member since1973. he was involved in numerousAOCS activities, including helpingorganize national meetings held inNew Orleans.

Mark Singleton has been electedpresident of Cantrell InternatlonalCorp. of Fort Wonh, Texas. Cantrellmanufactures processing equipmentfor the oilseed, snack food. and otherindustries. He succeeds Joe Ansleywho will continue as a member of theboard of directors.

Business briefsAlra Laval has supplied its first Soft-Column seed oil deodorization plantto Olin Oil, a vegetable oil refiner inEdirne Vag, Turkey. The plant, whichis based on thin-film technology, isdesigned to process 250 Ions per dayof sunflower oil. It is expected to be inoperation by July 1996.

Kibun Food Chemipha Co., thelargest soymilk manufacturer in Japan.has constructed a new soymilk line inits Saitama factory in Sayama City,Snitemu Prefecture, Japan. The plant.which cost approximately ¥IOO mil-lion (approximately $930,000) tobuild. began production in March,packaging soymilk in Slim Pack con-tainers. Daily production capacity isapproximately 50,000 packs.

H.J. Heinz Co. has agreed to buy amajority interest in Alimentos PilarS.A. of Argentina, which produces petfood and animal feed. This is Heinz'sfirst investment in Argentina. Alimen-res Pilar is Argentina's third-largest petfood producer and also sells productsin Chile. Uruguay, and Brazil. Alimcn-tos Pilar will become pan of Heinz PetProducts, a division of Star-KistFoods Inc. of Newport. Kentucky.

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tNFORM.VOl.7. no. 6 (June 1996)

NEWS

Ralston Purina Co. has announced itintends to spin off its internationalagricultural animal feed business toshareholders as a separate company.The spin off may take up to a year andis contingent upon a favorable tax rul-ing from the Internal Revenue Serviceand approval by Ralston's board ofdirectors. A name for the proposedcompany bas not been announced.Ralston's international pel food busi-ness is not included in the proposaland will remain part of Ralston's PetProducts group.

Soybean Update, a monthly newsletterfrom the Brussels, Belgium, office ofthe American Soybean Association,has reported that the German Ministryof Health has modified regulations onuse of vegetable proteins in mealproducts. The new rules permit use ofthe proteins without quantitativerestrictions. which brings the Germanlaw into harmony with the EuropeanUnion rules, adopted many yean ago.The inclusion of such products mustbe mentioned on the product label, thenewsletter said.

Showa Sangyo Co. of Japan hasbegun marketing two ,),-linoleic prod-ucts containing borage oil. Atopicoaris capsulated borage oil; Bcn-Bolage,which can be used for cooking, is ablend of borage, rice brand, com, andanimal oils.

J.T.S. Arcadia Co. in Odawara Cityin Kanagawa Prefecture, Japan, hasannounced it will sell an odorlessdocosahexeenolc acid (DHA) emul-sion developed by Sugou Co. Arcadiaintends to develop use of the productin bread for Japan's school lunch pro-grnm.

Monsanto Co. has completed itsacquisition of a 49.9% stake in Cal-gene Ine., effective March 31, 1996.The acquisition, announced during1995, was approved by Calgenestockholders in March after clearingregulatory review. Monsanto also hasagreed to pay $150 million toacquire the plant-biotechnologyassets of W.R. Grace & Coo'sAgracetus Inc. unit. The purchaseincludes related intellectual property

rights for technologies that helpgenetically transform plants.

Eastman Chemical Co. has complet-ed the sale of its food emulsifiers busi-ness to Quest International, a unit ofUnllever PLC. As part of the transac-tion, Eastman will continue to producefood emulsifiers for Quest for threeyears at its Distillation ProductsIndustries facility in Rochester. NewYork.

South Korea's health ministry hasannounced it will establish a food anddrug administration to inspect andmaintain safety standards, accordingto a report in the April 8, 1996. issueof The Journal of Commerce. Theministry said it would begin by estab-lishing a central office on food anddrug safety and local food and drugoffices in six larger cities duringApril.

Leybold Vacuum Products Inc. hasreceived ISO 9001 Registration for itsExport, Pennsylvania. vacuum pumpmanufacturing facility.

The American Association ror theAdvancement or Science has movedits offices to 1200 New York Ave.NW. Washington, DC 20005. Its tele-phone number remains 202-326-6400.

ObituariesL.L. KennonLarry Lee Kennon, vice president ofK-Testing Laboratory Inc. in Mem-phis, Tennessee, died April 9, 1996. ofheart failure. He was 60 years old.

Mr. Kennon had been an AGCSmember since 1971. when he andpartner Lee Keating founded the K-Testing organization. Mr. Kennon hadparticipated in the Smalley CheckSample Series analytical proficiencyprogram since 1954. He had workedfor Woodson-Tenant Laboratories inMemphis for eight years before help-ing co-found K-Testing.

He and his partner were 1994-1995approved chemists for cottonseed,oiJseed meal, cottonseed oil, and soy-

bean oil; in addition K-Testing is acertified laboratory for soybean mealanalysis.

Survivors include his wife, BrendaL. Kennon; IWO daughters, two sons,six grandchildren. two sisters, and abrother. Mr. Kennon resided in Ger-mantown, Tennessee, where he was amember of the Bennington Park Bap-tist Church.

Louis J. BiancoAOCS has been informed of the deathof Louis J. Bianco, who operated theL.J. Bianco & Assoc. consulting ser-vice from his home in Northbrook,Illinois.

Mr. Bianco joined AOCS in 1947when he was chief chemist in qualitycontrol for Kraft Foods Company inChicago. He later worked for TechnipInc. in New York before returning 10the Midwest. Mr. Bianco received hisbachelor's degree in chemistry fromIndiana University in 1940.

Peter P. CarfagnoAOCS has been informed of the deathof Peter P. Carfagno of FMC Corpo-ration in Princeton, New Jersey. Mr.Carfagno became an AGCS memberin 1983 as manager of phosphoruschemicals research and development.

He received his doctorate in 1968from Fordham University.

John HowardAOCS has been informed of the Jan-uary 1996 death of AGCS emeritusmember John Howard of Metairie,Louisiana.

Mr. Howard has received his bach-elor and master's degrees in 1930 and1931, respectively. at what was thenthe A&M College of Texas. Heworked for Traders Gill Mill Co. inFort Worth, Texas. before becoming amember of the U.S. Army duringWorld War II. He joined AGCS in1944 while serving as a major in thechemical warfare service.

He became an emeritus member ofAGeS in 1979. He had moved toLouisiana after World War U, workingfor many yean with Southern CouonOil Co. Inc. •

INFORM. \-tlI. 7. no. 6 (June 1996)