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Page 1: Starch Italics 7th Edition

GIRACT

Starch Industry Overview

October/November 2010

Starch Italics

www.giract.com

Page 2: Starch Italics 7th Edition

Starch Italics

Starch Industry Overview

Oct/Nov 2010

TABLE OF CONTENTS

June/July 2010 © GIRACT 2010

Crops and grains

p.1 How we are faring with cassava starch

production (Nigeria)

SRI-CSIR develops fertiliser for cassava

p.2 Food prices in the US expected to rise in

2011

p.3 Cassava exports decline by 18%

p.4 Japan grain trader joins battle for Asian

markets

Starch and derivatives p.4 China starts sugar sell-off early as prices

p.5 Starch, sucralose help Tate and Lyle to

strong H1

p.6 Cargill promotes Truvia sweetener with

multichannel marketing initiative

Company News

p.6 Tate & Lyle on track despite higher corn

costs

p.7 Tate & Lyle's strong earninderlying

growth momentum Starch producer launches "Gaialene"

polymer family / potential substitute for

polyolefins and ABS

p.8 Cargill profit surges 68% as volatile Grain

markets boost trading

p.9 Corn Products International (CPO) posts

mixed results

p.10 Government to revive Ayensu starch

factory

Solazyme and Roquette sign agreement to

create Global Nutritional Joint Venture

p.11 Tongaat Hulett expects higher interim

earnings

Bio-fuels

p.12 Corn ethanol‘s stock rises, as its stocks

rise p.13 Vietnam joins race for biofuel

p.14 OMCs‘ ethanol pacts not enough for

petrol plan

Bio-fuels (Contd)

p.14 Frontier wheat club offers biofuel benefits

p.15 Sorghum produces more ethanol, say

research findings

p.16 Brazil to build ethanol factory in Ghana

p.17 Biofuels blame game

p.18 Commodities buzz: US can meet ethanol

demand despite tight supplies; says

Deputy Ag Secretary

Busy time for ethanol producers

Agricultural waste to biofuel research

published in India

p.19 EPA announces renewable fuels standard

2011 requirements

p.20 Mater-Bi distribution agreement with

Thailand's Thantawan

Bio-Plastics

p.20 Potatoes to plastic

p.21 Researchers engineer genes of plants to

grow raw materials for green plastic

Nigeria's plastic bag dilemma

p.22 Wacker develops biodegradable plastics

p.23 NYU researchers find corn starch solution

can help shape solid materials

Cardia makes bags by blending CO2 with

starch

Others p.23 Southern Minnesota beet sugar

cooperative

Regional Language News

China

p.24 Strive to achieve the 3 mio t plant polyols

capacity

p.25 Output reduction is not the main factor of

the cassava starch price

p.26 Continuation of known environmental

needs of bio-plastics

(Table of contents continued on next page)

Page 3: Starch Italics 7th Edition

Starch Italics

Starch Industry Overview

Oct/Nov 2010

TABLE OF CONTENTS

June/July 2010 © GIRACT 2010

Regional Language News (Contd)

China

p.28 November 17, Dalian corn fell sharply

Price trend of the recent situation in Jilin

Maize

p.29 Bio-plastic manufacturers industrial R&D

Speed

Vietnam

p.30 The situation of production and

consumption of cassava in Vietnam and

the world

p.31 Increase cassava production for export:

Not necessarily happy

Brazil

p.32 Plastic of maize, sugar cane and seaweed

p.33 Brazil Oil and Novozymes join together to

develop cellulosic ethanol

Brazil's ethanol industry is driving in the

fast lane

Thailand

p.35 Rice harvest could be down 20%

First price index for rice industry launched

Taiwan

p.36 Researchers develop biodegradable

seedling pot

Czech Republic

p.37 Starch from genetically-modified potatoes

will be produced in the Czech Republic

South Korea p.37 South Korea has purchased 110kt of

maize

GLOSSARY

bio ‗000 000 000

cpd cases per day

crore ‗0 000 000

JV Joint Venture

k ‗000

kt ‗000 t

klpd kilo litres per day

lakh ‗00 000

lpd litres per day

mio ‗000 000

M&A Merger

&Acquisition

pa per annum

t t

tpa t per annum

tpd t per day

tph t per hour

tpm t per month

GIRACT Global Starch and Starch Derivatives

study

Giract has just published new multi-

client research into global starch

supply, examining in particular the

impact of the recent economic

downturn on the industry. Details on the following page.

Page 4: Starch Italics 7th Edition

GIRACT

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

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

Since 2007, this dynamic has changed abruptly for several reasons:

High demand for agricultural raw materials by the fast growing Asian economies coincided with new competition from the bio-energy boom, especially in USA, leading to a record high in raw material cost

High ingredient costs forced the food industry to undertake a strong cost-cutting drive, and even though starch and their derivatives were earlier seen as ‘low-cost’ ingredients, they have now become a target for replacement in several end-uses

Starch production in Asia continued to expand, fuelled by strong local consumption especially in China, while European players were facing more blows from the ongoing CAP reform in the sugar and potato starch sectors

The economic recession affected starch demand as never before and in almost every end-use sector; e.g. the European paper industry saw a decline by 40% and with enough new mills in low wage countries, this demand in Europe may never be recovered.

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

As these new patterns are emerging, it is the right time for every player and end-user in this field to take stock of new opportunities and threats before making any strategic decisions. This report provides the necessary comprehensive picture of actual global starch production and trade, by product and area, and explores which key factors are likely to influence the future to 2015.

Giract, the ingredients and technologies specialist and leader in market analysis of starches and their derivatives, published landmark studies in ’95, ’00, ’04 and ‘07 which pulled together starch supply by type of raw material and player across the world. These studies have been a reference for all players in the industry and for key end-users. The present update, published in autumn 2010, takes into account the various changes that have occurred across the world in the last few years, and thus acts as an important tool in your strategic planning.

OBJECTIVES • To identify starch and derivative production

- by key country/region - by type of raw material - by type of starch and starch derivative - by key producer • To evaluate trade patterns of different types of starches and derivatives • To estimate availability of starches and derivatives by key country/ region and of starch by type of raw material • To forecast global trends in starches and derivatives to the year 2015

PRODUCTS Primary starch from different raw materials, including maize, wheat, potato and tapioca. Finished products as starches (native and modified) and starch derivatives (glucose syrup, high fructose syrup, dextrose, other hydrolysates and polyols)

MARKETS Global

TIMESCALE 2009/10 and 2015

REPORT Published September 2010

SUBSCRIPTION Please contact us for subscription details

For more info, contact GIRACT V. Krishnakumar, Jo Goossens

24, Pré-Colomb Tel: + 41 22 779 0500

1290 Versoix/Geneva Fax: + 41 22 779 0505

Switzerland [email protected]

www.giract.com

Page 5: Starch Italics 7th Edition

Primary Starch Production – Executive Summary - sample GIRACT

Impact of the Economic Downturn Starches and Derivatives Global Production and Supply 2009/10 - 2015 Executive Summary

Page 30

2. PRIMARY STARCH PRODUCTION BY REGION – EXECUTIVE SUMMARY

2.1. OVERVIEW

The table below summarises the distribution of primary starch make by raw material source and region in volume terms: mio tons

Maize Wheat Potato Tapioca Other Total

EU27

Other Europe

N. America

Other Americas

China

Other Asia

ROW

Total

% of total (as 88% dsb)

The above table excludes (to the extent feasible) starch production for gasohol.

The table below summarises the distribution of primary starch make by raw material source and region (% of starch per raw material)

Maize Wheat Potato Tapioca Other Total

EU27

Other Europe

N. America

Other Americas

China

Other Asia

ROW

Total

Note: a … entry represents a very small magnitude of starch make

It emphasises the predominance of maize as the world raw material, except in the special cases of tapioca in sub-tropical climates, wheat in Oceania and wheat/potatoes in the protected EU market.

Page 6: Starch Italics 7th Edition

Vol II – Starches & Derivatives-sample ©©GIRACT

Impact of the Economic Downturn Starches and Derivatives Global Production and Supply 2009/10 - 2015 Volume II – Starches and Derivatives

Page 74

Production of Starches and Derivatives, India, 2009/10

ktons

Native Starch 88%

Mod. Starch 88%

Glucose 78%

Iso-glucose

71% Dextrose Other dry hydrol. Polyols

Anil Starch Products

Bharat Starch Industries

Gayatri Bio-Organics

Gujarat Ambuja

Gulshan Polyols

Jayamurugan

Kashyap Sweetners

Maize Prod/Sayaji Mills

Riddhi Siddhi Gluco Biols

Sahayadri St. & Industries

Santhosh Maize Industries

Siddharth Starch PVT

Spac Group

Sukhjit Starch Products

Tirupathi Starch Products

Universal Starch Products

Varalaxmi Starch Ltd 3

Vijayanagar Biotech

Yashwant Sahakari Glucose

Others (all tapioca)

Total

*At the time of publication of this report, Gujarat Ambuja had stopped the production of sorbitol temporarily, and its reported #kt output has been removed from the above table

Producers

Anil Starch is one of the oldest starch manufacturers in India and is part of Lalbhai group. The company produces a varied range of starches from basic maize starch to modified and specialty starches and related downstream products - dextrose (monohydrate and anhydrous), corn syrup, etc. – for the textile, food, pharma, chemical and paper industries principally.

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Crops and grains

How we are faring with cassava starch production (Nigeria) Dele Ogundele, a chartered accountant, has

worked in multi-national companies like Unilever

and PZ Cussons Nigeria plc, before running

Matna Foods. He speaks with Siaka Momoh,

BusinessDay‘s Industry Editor, about how

Matna Foods Company Limited, cassava starch

production company, is faring in today‘s market.

An estimated 60 mio t of starch are extracted from

a wide range of cereal, root and tuber crops.

Interestingly, around 10% of that starch comes

from cassava roots, a crop better known as the

staple food of millions of low-income rural people

in Africa, Asia and Latin America. With world

cassava root production now standing at some

200 mio t a year, FAO says many developing

countries could strengthen their rural economies

and boost cassava farmers‘ incomes by converting

more of that relatively low-cost raw material into

high-value starches.

Company Nigeria is world largest producer of

cassava, producing about 40kt per annum.

Matna Foods Company Limited is therefore in

good business processing cassava tubers to starch.

But last year, it was as if Nigeria had stopped

from what it used to be because all of a sudden,

cassava disappeared from the market and around

Ogbese at the outskirts of Akure in Ondo State

where Matna has its plant. For a greater part of

last 2009, the company was not producing, but it

did not relent in its effort to develop the pace at

which it picks cassava.

Cassava circle Matna is a victim of what is called

in cassava processing parlance, ‗cassava circle‘.

This means alternating high and low level supply

of cassava tubers year-after-year. So, the efforts

Matna made last year were actually designed to

break that circle, so that the flow of cassava

would continue as much as possible.

(Continued in next column)

How we are faring with cassava starch production (Nigeria) (Contd)

However, to encourage farmers stay on farms,

Matna signed agreements with farmers around the

community, agreements guaranteeing the

purchase of their output. So, they had no fear of

recording unsold stocks.

Gas facility Matna does not have the luxury of

access to gas network like other plants in Lagos.

When they don‘t have power supply from the

national grid, they switch on to their generators,

powered with gas. It relies on diesel. Apart from

that it also uses black oil for operating its boiler

with which it generates the heat for drying starch.

The black oil is also a very scarce commodity.

Matna‘s installed capacity is about 150t of

cassava per day. But it has never produced up to

that level. (businessdayonline.com 11 October

2010)

SRI-CSIR develops fertiliser for cassava

The Soil Research Institute of the Council for

Scientific and Industrial Research (SRI-CSIR),

has successfully conducted trials on fertilisers that

can be used for increased cassava starch yield and

quality cassava. Dr Joseph Cobbina, a Technical

Specialist at the CSIR, made this known to

farmers and M.Phil. students from the Kwame

Nkrumah University of Science and Technology

(KNUST) who undertook a field trip to the

Kwadaso Agricultural College in Kumasi.

He said the research was still underway and that

results were expected to be shared by all member

states of the Economic Community of West

African States (ECOWAS). The research is under

the auspices of the West Africa Agricultural

Productivity Project (WAAPP) and is being

implemented in Ghana by the Ministry of Food

and Agriculture (MoFA).

(Continued on next page)

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Crops and grains

SRI-CSIR develops fertiliser for cassava (Contd)

DR Cobbina said WAAPP was being funded by

the World Bank to strengthen research institutions

in three countries — Ghana, Mali and Senegal —

to generate improved technologies to increase

agricultural productivity of important crops in line

with regional priorities. He said the aim of the

project was to fund demand-driven technologies,

generate and disseminate improved technologies

in priority sectors of the region and facilitate

regional collaboration and integration.

The field trip to the Kwadaso Agricultural

College formed part of efforts to enhance the

dissemination of increased cassava technologies,

as well as to offer a platform to showcase the

nature and efficiency of the new technologies for

cassava.

Under the WAAPP project, Mali is conducting

research into rice with Senegal researching into

cereals, while Ghana focuses on improving root

and tubers (cassava, yam, cocoyam and sweet

potato). Giving a background to the project,

Dr Cobbina said in 2003, it was realised that

although governments in West Africa were

supposed to devote 10% of their budgets to

agriculture, that was not being done.

He said the WAAPP was then developed with a

focus to improve the export competitiveness,

biodiversity, land administration and

management, technology diffusion, trade

facilitation and market access. He said in Ghana,

although various varieties of cassava had been

released by the CSIR, it was realised that lack of

improvement in soil fertility, made it difficult for

farmers to achieve the expected results.

(modernghana.com 20 November 2010)

Food prices in the US expected to rise in 2011

As commodity prices continue to rise to new

highs and US food producers see their profit

margins shrink to new lows, food prices in the US

are expected to rise again in 2011. US food

producers have refrained in 2009 and 2010 to pass

on the production cost to their consumers but may

not have a choice but to increase food prices

across the board to keep their profit margins from

falling any further.

Brand names like Kraft, Sara Lee and Dean Foods

all reported smaller than expected profit margins

throughout 2010 due to higher commodity prices

of grain and milk. The companies who are facing

stiff competition from white labeling products

have kept their prices steady to protect their

decreasing market share but that is about to

change soon.

The growth of wheat and soybeans in the US was

replaced with large amounts of corn crops which

ultimately found their way to ethanol production

facilities. This subsidized replacement has not

only interrupted the natural food chain by

redirecting agricultural food from beef farms but

has also reduced the reserve supply of wheat and

soybeans.

The US is a large exporter of grain products

throughout the world and had to fill in the gap

during the Russian wheat export embargo earlier

in the year. (Continued on next page)

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Crops and grains

Food prices in the US expected to rise in 2011 (Contd)

That has not only put extra pressure on the

internal supply but also on the commodities

markets given that demand has not decreased. US

food producers have no choice but to pass on the

extra cost to their consumers in the US and

abroad, and the price increases are expected to

match or exceed those of 2008. The US has

enjoyed a low inflation rate of 1% or less for the

past 2 years, but such may change very quickly

mid next year with hyperinflation following in

2012.

The CPI will not be driven by energy prices but

rather by food prices in general. The impact will

also be felt around the globe as the US may opt to

export less of its grain supply due to depleting

reserves that are needed locally. One can find a

rational solution for a trade or currency war but

should this crisis ultimately result in a food war

with high inflationary pressure then middle-class

America will become the first victim.

The solution would be to restore the natural food

supply chain and find a balance between valuable

crops instead of continuing to subsidize corn

farmers to supply the ethanol production plants

while diminishing wheat and soybean crops.

Middle-class America cannot absorb high food

prices in an economic climate that is hampered by

high unemployment and low spendable income.

The US economy cannot sustain a reduction of

exported agricultural products either when trade

balance sheets already run a deficit with

90 countries. A hyper-inflationary tsunami can

only be avoided by going back to basic economics

until global activity and international supply and

demand stabilize. (examiner.com 15 November

2010)

Cassava exports decline by 18% Viet Nam exported 70kt of cassava and

cassava-based products worth USD 30 mio in

September, according to a report published by the

General Statistics Office. Last month's figures

brought the country's total export value during the

first 9 months to USD 384 mio, a year-on-year

decrease of 18.1%.

Director of the Information and Statistics Centre

under the Ministry of Agriculture and Rural

Development Nguyen Viet Chien attributed the

decline to waning Chinese consumption. China

consumes 90% of Viet Nam's cassava and

cassava-based exports products.

The national cassava export market last year was

hectic and it pushed up prices during the

beginning of this year, said Chien. According to a

ministry report, about 87 large and 300

small-sized manufacturers process cassava in

VietNam. Each year, the manufacturers produce

985kt of starch and 150kt of cassava.

In the past few years, cassava plantation shrank

because of the crop's low demand. However,

cassava demand has increased because the crop is

used to produce feed and ethanol. VietNam is the

second leading cassava exporter in the world. The

ministry wants to create national quality and

manufacturing standards to further develop the

cassava-export sector. Setting up a cassava

manufacturers' association should also be

launched, reported the ministry.

(vietnamnews.vnagency.com.vn 12 October 2010)

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Crops and grains

Starch and derivatives

Japan grain trader joins battle for Asian markets Japanese grain trader Marubeni plans to take on

the world's largest agricultural commodity traders

in shipping to emerging Asian markets as demand

at home moderates, the Financial Times reported

Monday.

Presently the world's sixth largest grain trader by

volume, Marubeni expects to trade 20 mio t of

crops such as wheat, maize and soya beans this

year, of which only 6 mio will be sold in Japan,

the paper reported.

The company plans to ship 25 mio t to customers

by 2012 or 2013, said chief executive

Teruo Asada, increasingly making it a rival to the

likes of ADM, Bunge and Cargill in the United

States, France's Louis Dreyfus and Swiss-based

Glencore.

Japanese commodity traders have traditionally

concentrated on imports of products such as oil to

make up for sparse resources at home, but a

shrinking population and unimpressive economic

growth have led them to turn elsewhere, the report

noted.

"The grain majors are simply supplying corn, soy

and other grains to China. But we're using our

grain to get into related businesses like milling

and animal feed processing. That's the sort of

thing that only a general trading company can

do," Asada told the newspaper. (afp.com

29 November 2010)

China starts sugar sell-off early as prices

China is to start its programme of seasonal sugar

sales from state reserves this week, more than a

month earlier than last season, as the sweetener

joined the list of farm commodities to set a record

price high. The country's Ministry of Commerce

said that it would on Friday release 210kt of sugar

from state reserves, more than a month earlier

than sales started in 2009-10.

The kick-off so soon in the 2010-11 crop year,

which started this month, came as prices for white

sugar hit a record RMB 6 252 (USD 940) per t for

the Zhengzhou exchange's benchmark May

contract.

In London, white sugar for May closed down

0.5% at USD 648.5 per t. China also faces

near-record prices as of Monday for cotton, and of

corn for some contracts on the Dalian exchange,

where soyoil prices are near two-year highs, all

boosted by strong domestic demand which local

production is struggling to keep up with.

Indeed, sugar prices have been boosted by a

continuing production shortfall which the

US Department of Agriculture's Beijing bureau

has estimated at 2.4m t for 2010-11, signalling a

deficit even if the country imports all the quota of

1.95m t it allows at a tariff of 15%.

Additional imports attract a tariff of 50% and,

indeed, the country has never imported the

maximum since its regime was shaken up on

joining the World Trade Organisation 9 years

ago. Supply prospects have been further

weakened by the sell-off of much of the country's

stocks last year, after a slide in production which

reflected in part poor weather in cane producing

districts, and in part a slump in beet plantings as

farmers switched to grains following the 2008

price spike. (Continued on next page)

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Starch and derivatives

China starts sugar sell-off early as prices (Contd)

Provincial authorities do not set a minimum price

for sugar beet, unlike cane, making it more

vulnerable to substitution with crops allowing

higher margins. China's government sold off

1.7m t of sugar from state reserves in 2010-11,

though 8 auctions which started last December,

with a floor price of RMB 4 000 per t.

China's sugar shortage is also underpinning sales

of alternative sweeteners, including saccharine, of

which the country produces 15 400 t, most for the

export market, and corn-based syrups. The

country's output of starch-based sweeteners

expected to jump by 30% to 9m t in calendar

2010, amid soaring demand from domestic sugar

producers, the USDA's Beijing office said in a

report earlier this month.

"High domestic natural sugar prices have made

starch sugar a competitive substitute," the briefing

said. London's benchmark December white sugar

contract closed down 0.1% at USD 695.30 per t,

with raw sugar for March up 1.4% at 27.44 cents

per pound in late deals in

NewYork. (agrimoney.com 18 October 2010)

Starch, sucralose help Tate and Lyle to strong H1

Tate & Lyle has now realised the full benefits of

bringing together its sucralose manufacturing

activities at one site, and despite lower selling

prices its specialty ingredients division has

reported volume gains and 27% higher operating

profits. The ingredients company has reported

sales of GBP 1348m for 6 months ended

30 September, compared to GBP 1298m in the

same period last year. Operating profit rose 60%

to GBP 138m. The company has been placing

increasing store by speciality ingredients as it has

gradually sold of its sugar assets.

(Continued in next column)

Starch, sucralose help Tate and Lyle to strong H1 (Contd) Last month it announced plans to establish a new

commercial and food innovation centre in

Chicago, while plans for a bulk ingredients

facility in Fort Dodge, Iowa, have been

mothballed. Meanwhile, the company sold its EU

sugar operations to American Sugar Refining, Inc

for GBP 212m at the end of September, and is on

track with the sales of remaining sugars

businesses, namely molasses and Vietnamese

sugar.

Tate & Lyle saw a 7% increase in volume sales of

specialty ingredients in the last 6 months, and a

3% increase in value (though flat in constant

currencies). The better volumes, combined with

improved product mix and the benefits of the

single sucralose site, led it to a 32% increase in

operating profit to GBP 108m. The ingredients

company has reported sales of GBP 1348m for

6 months ended 30 September, compared to

GBP 1298m in the same period last year.

Operating profit rose 60% to GBP 138m.

The company has been placing increasing store by

speciality ingredients as it has gradually sold of its

sugar assets. Last month it announced plans to

establish a new commercial and food innovation

centre in Chicago, while plans for a bulk

ingredients facility in Fort Dodge, Iowa, have

been mothballed.

Meanwhile, the company sold its EU sugar

operations to American Sugar Refining, Inc for

GBP 212m at the end of September, and is on

track with the sales of remaining sugars

businesses, namely molasses and Vietnamese

sugar.

Tate & Lyle saw a 7% increase in volume sales of

specialty ingredients in the last 6 months, and a

3% increase in value (though flat in constant

currencies).

(Continued on next page)

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Starch Italics Starch Industry Overview

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Company News

Starch, sucralose help Tate and Lyle to strong H1 (Contd)

Good growth was also seen in starch volume

sales. Produced at the company‘s sites in

Sagamoor in Indiana, and Koog in

The Netherlands, starch-based ingredients account

for around half the speciality ingredients division

by value. In July Tate & Lyle opened its new

polydextrose plant in Koog – said to be the first

for the bulking agent in Europe, which is expected

to shorten the lead time for European customers.

(foodanddrinkeurope.com 4 November 2010)

Cargill promotes Truvia sweetener with multichannel marketing initiative Cargill has announced it is launching a

multichannel marketing campaign for its natural

sweetener product, Truvia, in hopes of turning

previously generated awareness into an emotional

connection with prospective consumers. The

multichannel marketing initiative will extend

across national television, digital and social

media.

According to Ann Clark Tucker, Truvia's

marketing director, the creative illustrates

consumers' relationship with sweeteners in

humorous ways. Truvia was jointly discovered in

2008 by Cargill and Coca-Cola as a replacement

for artificial sweeteners commonly used in food

and soft drinks. The product is made from

Rebiana extracted from stevia plants.

Strategies such as Cargill's approach of designing

its marketing campaign with unique creativeness

are growing increasingly important for many

brands. According to a recent report,

well-executed creativeness accounts for 52% of

all sales changes. Meanwhile, media plan and

pricing and distribution only affect 13 and 35% of

sales, respectively. (ricg.com 6 October 2010)

Tate & Lyle on track despite higher corn costs Sugar and sweetener firm Tate & Lyle said today

that it expects its encouraging start to the year to

continue in spite of higher corn costs.

In the speciality food ingredients division, growth

in speciality sweeteners and starches has remained

steady, while sucralose volumes have been robust,

though at lower selling prices, the company said.

Corn sweetener volumes benefited from the

continuation of firm demand for high fructose

corn syrup (HFCS), a sweetener used in foods

such as cereal and in fizzy drinks, in Mexico and

good demand over summer in the US and Europe,

T&L said.

‗The encouraging start to the year has continued

in the second quarter, particularly within

Speciality Food Ingredients, with good

operational performance and solid demand in a

number of our markets,‘ said chief executive

Javed Ahmed. ‗This underpins our confidence

that we will make progress in the full financial

year.‘

T&L said that, while corn prices have been risen

in the US and Europe, it was able to offset this in

the US by lifting prices for its own products,

while itself benefiting from hedging. In Europe,

however, hedging options are more limited and

higher corn prices are expected to have a ‗modest‘

impact on profitability during the final quarter of

2010.

(Continued on next page)

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Company News

Tate & Lyle on track despite higher

corn costs (Contd)

Corn prices have been soaring recently, in line

with soft commodity markets generally, fuelled

by strong demand from the animal feed and the

biofuel industries. Industrial starch volumes in

both the Americas and Europe were ahead of last

year, although margins continued to be weak, the

company said. It added that ethanol margins

improved slightly in the second quarter, although

the market remained under pressure. Tate & Lyle

is today completing the sale of its EU sugar

refining operations for GBP 211, which will help

to reduce debt. (sharecast.com 30

September 2010)

Tate & Lyle's Strong Earninderlying Growth Momentum

British ingredients producer Tate & Lyle has

posted strong growth in profits for the first half of

its fiscal year thanks to stronger margins and

higher corn prices. For the 6 months to

September, Tate & Lyle's adjusted operating

profits increased by 13% in constant currency

terms, with the firm aided by shifting the

manufacture of its core sucralose brand to a single

plant in low-cost Singapore. However, despite the

favourable operating environment, sales for the

group were flat on a constant currency basis,

indicating that restoring top-line growth

momentum may be harder than increasing

profitability.

Tate & Lyle has generally been seen by investors

as a boring commodity play, which does well

when demand for its key commodities such as

sugar and starch is booming, but suffers when

demand wanes. The firm has made moves to alter

this perception - notably by focusing on value-

added ingredients and as part of this process it has

also been selling off its sugar refining operations.

(Continued in next column)

Tate & Lyle's Strong Earninderlying Growth Momentum (Contd)

In July 2010, it agreed to sell a large chunk of its

sugar business to American Sugar Refining for

GBP 211 mio. (foodanddrinkinsight.com 12

November 2010)

Starch producer launches

"Gaialene" polymer family /

Potential substitute for polyolefins

and ABS

Starch producer Roquette Frères has taken the

first step to becoming a biopolymer producer with

the launch of the "Gaialene" polymer family. The

materials, which are claimed to be based 50% on

starch, were developed together with Setup

Performance. Roquette currently produces the

polymers in a pilot plant in Lestrem with capacity

for several hundred t per year, but by Q1 2011 the

company intends to have installed an

industrial-scale plant at one of its French sites.

The capacity is expected to be "several 10kt a

year," general manager Michel Serpelloni told

Plasteurope.com.

The Roquette research team began working on the

development of plant-based thermoplastics in

2007 as part of the "Gaiahub" innovation project.

It is therefore to be expected that more polymers

will follow.

(Continued on next page)

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Company News

Starch producer launches

"Gaialene" polymer family /

Potential substitute for polyolefins

and ABS (Contd)

Roquette says Gaialene, which is apparently

similar to the thermoplastic starches and the

derived "eco plastic" compounds made by Plantic

Technologies, is intended for applications in

which polyolefins, ABS or engineering plastics

are otherwise used. The three Gaialene grades

currently available have high impact resistance

and a soft feel, and are also easy to colour and

compound, says Roquette. The polymers can be

processed using standard processes such as

injection moulding and extrusion blow moulding.

"The Gaialene range is not the result of a simple

mixing or compounding process, but a veritable

hemi-synthesis that gives the thermoplastics

completely new properties," explained

Jean-Bernard Leleu, Director General of

Roquette. Carbon-di-oxide emissions from the

recyclable Gaialene are said to be at least 40%

below those of oil-based plastics. It also has the

advantage that it can be processed at a

comparatively low temperature of 170°C,

additionally lowering the energy consumption.

(plasteurope.com 11 October 2010)

Cargill Profit Surges 68% Volatile Grain Markets Boost Trading

Cargill, Inc., today said quarterly profit surged

68%, to USD 883 mio, helped by volatile grain

markets that boosted trading revenue for one of

the world‘s largest agricultural companies.

Results in Cargill‘s origination and processing

business, which includes commodity trading, rose

―significantly‖ in the quarter, the

Minneapolis-based company said in a statement

today.

(Continued in next column)

Cargill Profit Surges 68% As Volatile

Grain Markets Boost Trading

(Contd)

That reflected ―renewed market volatility and

changes in trade flows (that) created opportunities

for trading and for serving customers' price risk

and raw material needs,‖ Cargill said.

Revenue during the 3 months ended August 31,

Cargill‘s fiscal 2011 first quarter, rose to

USD 27.8 bio, up 6% from the same period a year

earlier, the company said. Corn, wheat and

soybean prices rallied to multi-year highs this

year as drought slashed Russia‘s grain crop and

this autumn‘s U.S. harvest produced

weaker-than-expected results. At Chicago-based

CME Group, corn futures today rallied to a

two-year high for the third day in a row.

One of the largest grain and oilseed processors

and traders, Cargill is also a top supplier of food

and feed ingredients, fertilizer, beef and pork. In

CME‘s agricultural markets, Cargill is a major

player, accounting for 15 to 20% of a typical

day‘s trading volume in corn futures, according to

estimates from floor sources.

During the first 9 months of this year, an average

of 258 679 corn futures contracts - or almost

1.3 bio bushels - traded each day, up 28% from

the same period in 2009, according to CME.

Cargill spokeswoman Lisa Clemens said the

company doesn‘t discuss its trading activity or its

customers.

(Continued on next page)

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Starch Italics Starch Industry Overview

Company News

Cargill Profit Surges 68% As Volatile

Grain Markets Boost Trading

(Contd)

Quarterly results also benefitted from improved

earnings from Cargill‘s food ingredients and

animal protein businesses and from its majority

stake in Mosaic Co., a fertilizer maker, the

company said. The rally in corn and soybean

prices is raising costs for beef and pork producers

and other grain users.

But Clemens noted that the U.S. corn crop this

year – estimated at 12.66 bio bushels by the U.S.

Department of Agriculture – is still expected to be

the third-largest ever.

December corn futures in Chicago today rose

23¼ cents to USD 5.79 a bushel, after climbing to

USD 5.84¼, the highest price for a

closest-to-expiration contract since August 2008.

Corn futures are up 64% from about USD 3.54 at

the end of June. Cargill owns a hedge fund, Black

River Asset Management LLC, which as of 2007

had about USD 6 bio under management,

according to news reports.

Additionally, Cargill operates eight U.S. cattle

slaughter plants with combined capacity to

process about 30 250 head a day and two hog

plants with total capacity of 38 500 head a day.

(cattlenetwork.com 12 November 2010)

Corn Products International (CPO) posts mixed results Corn Products International, Inc. (NYSE: CPO)

on Thursday morning released financial results

that barely beat Wall Street earnings expectations,

while just missing revenue estimates.

Corn Products International, Inc reported that its

3rd quarter net income dropped to USD 36.9 mio,

or 48 cents a share, down from USD 52.8 mio, or

70 cents, a year earlier. (Continued in next

column)

Corn Products International (CPO)

Posts Mixed Results (Contd)

Excluding special items, the company earned

81 cents per share. Revenue rose 5% to USD 1.02

bio, up from USD 971 mio a year earlier. A poll

of analysts conducted by Thomson Reuters

showed an average Wall Street estimate of

expected earnings of 79 cents per share, on

revenue of USD 1.03 bio.

Chairman, President, Chief Executive Officer

Ilene Gordon said, ―I am pleased to report a very

good quarter. We saw strong volume growth

across all our regions. In North America, we

continued to see strong demand from the beverage

industry in Mexico, as well as regional volume

improvements in processed foods, corrugating and

bakery. In South America, volume growth

resulted from broad customer demand across

multiple segments. In Asia/Africa, volume growth

continued to be led by customer demand for

sweeteners and starches in South Korea and

Pakistan.‖

Gordon continued, ―Given the strong performance

of the business to date, we are increasing our 2010

EPS outlook to a range of USD 2.75 to 2.85, from

our prior 2010 EPS outlook of USD 2.55 to 2.75.

This range excludes the impact associated with

the National Starch acquisition and the shutdown

of the Company's Chilean plant.‖

Corn Products International, Inc. (CPO) ended the

previous trading session at USD 41.10 per share.

Analysts covering the company's stock have a

consensus price target of USD 40.57 per share.

(benzinga.com 28 October 2010)

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Company News

Government To Revive Ayensu Starch Factory

The Minister for Trade and Industry,

Ms. Hanna Tetteh, has assured management and

workers of Ayensu starch limited of government‘s

readiness in revitalising the company.

She said, the government is in the process of

allocating funds towards the revamping of the

factory to create more employment in the region.

Ms. Tetteh said this when she paid a visit to the

Ayensu Starch Factory at Bawjiase in the Central

Region. She noted that the sector Ministry is

aware of the challenges management faces in the

daily activity of the factory and assured them of

her Ministry‘s assistance to facilitate the

continuous work of the factory.

The logistics co-ordinator of the factory,

Mr. Sampson Abbey Armah, in an address noted

that the factory was commissioned in

February 2004 under the Presidential Special

Initiative (PSI) on Cassava. It was also aimed to

create market for cassava growers, develop

cassava into starch and its allied products and

create job avenues for the youth.

As part of the revamping strategy, the factory has

achieved success in organising the cropping of

3 000 acres of cassava to feed the factory for

starch production. According to Mr. Armah, the

company‘s nucleus farm operations has offered

jobs to about 300 youths within the projects

catchment area and said that the number will

increase when production commence.

He announced that some prospective farmers have

expressed interest in joining the company in the

mobilisation of raw materials and are only waiting

to see the commencement of the factory

operations. (ghana.gov.gh 22 November 2010)

Solazyme and Roquette Sign

Agreement to Create Global

Nutritional Joint Venture

According to the press release, Solazyme, Inc. the

California-based leader in renewable oil and

bioproducts and Roquette Frères, the global starch

and starch-derivatives company headquartered in

France, today announced that they have signed a

joint venture (JV) agreement for the production,

commercialization and market development of

microalgae-derived food ingredients, subject to

regulatory approvals and notifications.

The JV is being formed to launch an entirely new

category of natural, healthy and functional

ingredients based on microalgae that provide

superior nutritional properties along with

outstanding taste and texture. Solazyme-Roquette

Nutritionals plans to launch a variety of oil,

protein and fiber based products aimed at

delivering improved performance with a vastly

superior health profile compared to ingredients in

the market today.

The JV, which will be 50% owned by each parent

company, will be named Solazyme-Roquette

Nutritionals, and will be operational by the

beginning of 2011. The JV‘s management team

and board of directors will be drawn from both

parent companies with Solazyme‘s CEO,

Jonathan Wolfson serving as the initial CEO of

the JV. Roquette will fund and build a JV-owned,

commercial-scale manufacturing plant with

capacity in the tens of thousands of tons of annual

production, sited at a Roquette corn wet mill.

(Continued on next page)

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Company News

Solazyme and Roquette Sign

Agreement to Create Global

Nutritional Joint Venture (Contd)

In addition, Roquette will provide upfront

licensing payments to Solazyme and working

capital to fund the JV until reaching profitability.

This JV combines Roquette‘s history and

capabilities as a global food ingredient supplier

with Solazyme‘s highly innovative

microalgae-based technology. Like Solazyme,

Roquette has been actively developing a

microalgal nutritional platform and runs the

Algohub® program while currently selling

algae-based nutritional products.

Roquette also possesses strong global

manufacturing assets, and access to carbohydrate

feedstock in multiple geographies through its

network of highly efficient mills. In addition, the

JV will leverage Roquette‘s large, global

nutritional sales force to stimulate rapid market

entry and provide access to major food companies

worldwide. The merger of Roquette‘s extensive

resources with Solazyme‘s revolutionary

microalgae-derived food ingredient technology,

which includes heart-healthy algal flours and oils,

will provide solutions that improve both product

functionality and nutritional profile in large

market food ingredient applications.

―Solazyme and Roquette share a very

clearly-defined vision that microalgae will

provide a major new class of food ingredients and

we enter this JV very enthusiastic about the

future‖ says Guy Talbourdet, CEO of Roquette.

Marc Roquette, Chairman of Roquette continued,

―We believe that along with Roquette, Solazyme

possesses the most innovative microalgal food

ingredient technology in the world, and we look

forward to using our extensive skills and assets to

help bring this technology to market.‖

(gsjournal.com 10 November 2010)

Tongaat Hulett expects higher interim earnings

JSE-listed agro-processor Tongaat Hulett expects

to report higher headline earnings when it releases

its half-year results next week, the company stated

on Monday. The group expects a 12% increase in

headline earnings to R507-mio for the half-year

ended September 30, compared with the

R452-mio earned in the same period last year.

The improved earnings outlook comes despite

sugar production in South Africa being affected

by "the most severe drought since the mid-1990s".

Headline earnings a share were also expected to

increase by 10% to R4,82 a share.

The group said that while European and world

sugar prices were favourable during the period, it

also started to benefit from the targeted sugar

production growth in Mozambique and

Zimbabwe. However, Tongaat Hulett said that

local sugar prices in Mozambique had not kept

pace with the weakening of the local currency unit

and that exchange rates had been less favourable

than in the corresponding period in 2009.

Meanwhile, profit from operations for the

half-year to September 30, 2010, was expected to

increase by 10% to R963-mio from the R873-mio

earned in the comparative 6 months to

September 30, 2009.

This included profit from the Mozambique sugar

operations of R163-mio, the Zimbabwe sugar

operations of R303-mio, and the South African

agriculture, milling and refining operations of

R47-mio, as well as the different other sugar and

downstream activities of R155-mio. Profit from

the starch operations amounted to R125-mio and

profit from the land conversion and development

operations was R97-mio. The group planned to

release its results on November 15.

(engineeringnews.co.za 8 November 2010)

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Company News

Bio-Fuels

Corn ethanol’s stock rises, as its stocks rise The Biofuels Digest Index underperformed the

S&P earlier this year, when the BP Gulf Oil leak

weighed on prices, but has sharply rebounded and

now leads the S&P by 5% for the year.

Conventional wisdom holds that first-generation

ethanol is dead as a door-nail in terms of

attracting viable investment, but events in recent

months suggest that the conventional wisdom is

off by some margin.

The Sacramento Business Journal reported

yesterday that ―shares of Pacific Ethanol Inc.

climbed 3% in trading Thursday, after the

ethanol-producer raised USD 53.5 mio in cash —

a combination of selling USD 35 million in senior

convertible notes and its minority interest in Front

Range Energy LLC for USD 18.5 mio.‖ Consider

the anguish and noise that surrounded Amyris‘s

multi-month effort to raise USD 80 mio via its

NASDAQ IPO.

Barron‘s recently opinioned that ―As world

populations grow, they will require more food and

fuel. With its portfolio of food ingredients,

livestock feed and biofuels, Archer Daniels

Midland may well be the company supplying

them.‖ ADM had a good showing through the

summer. Other ethanol players have been doing

notably well on the public exchanges this year,

with BioFuel Energy trading sharply up this

month compared to three months ago, closing

yesterday at USD 2.91 compared to USD 1.20 just

3 months ago.

(Continued in next column)

Corn ethanol’s stock rises, as its stocks rise (Contd) Not to mention the appearance of players like

Valero, Sunoco and Murphy Oil on the scene,

buying up stranded assets from VeraSun and

Panda Ethanol among others. In one recent

quarter the ethanol division of Valero was among

the brightest financial stars in that company‘s

constellation of assets, and with the profits being

generated by the until, the company may well pay

off that investment over the next few years and

find itself simply calculating the dimension of its

ROI.

Further, though the advance has been most

strongly felt in first-generation biofuels, the

Biofuels Digest Index has outperformed the

S&P 500 by 5% this year, and is up 10.3% for the

year to date, reflecting a broad rise in renewables

(especially considering the dragging effect that

BP has had on the Index since April).

What seems to be happening, instead, is a

solidifying of balance sheets (though many

companies have far to go in repairing damages

suffered during the debacle of 2008), and a return

of confidence among investors that, whatever the

fate of corn ethanol, for the time present it is here

to stay, courtesy of the Renewable Fuel Standard

and the absence of substitutes for corn in the

feedstock mix.

Ethanol futures through 2013 are trading in a

narrow USD 1.93 to USD 1.98 range on the

Chicago Board of Trade, and with 15 bio gallons

of corn ethanol likely to be produced and

distributed under the RFS (excluding the potential

for exports), that creates a relatively stable

USD 29 bio annual market for ethanol in the US.

(biofuelsdigest.com 8 November 2010)

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Bio-Fuels

Vietnam joins race for biofuel

Vietnam said it has intensified efforts to promote

biofuel production in the country under the plan

on biofuel development to 2015 with a vision to

2025. According to country‘s energy ministry,

Vietnam is focussing on production of ‗green

gasoline‘ from cassava, coconut, sesame, peanut,

flax and jatropha, and from animal products such

as catfish fat. The government has instructed

ministries to give incentives for the production

and use of biofuel, defined as fuel made from

these raw materials.

Under the plan on biofuel development to 2015

with a vision to 2025, Vietnam will produce

1.8 mio t of ethanol and vegetable oils for use as

fuel annually, meeting 5% of domestic petrol and

diesel demand in the next 15 years. Many

countries already manufacture large amounts of

biofuels, especially in the US and Brazil. Once a

big importer of oil, Brazil has substantially

reduced its requirement thanks to biofuel

development. Some Asian countries are strongly

investing in biofuels, among them Thailand,

China and India. By the end of 2011, Vietnam

will have five biofuels plants with a total capital

of 365kt of ethanol, which, mixed with gasoline,

will yield 7.3 mio t of E5 petrol.

Biofuel has been designated a key industry and

biofuel production projects enjoy the highest level

of investment incentives. According to

Government planners, from 2007 to 2010,

Vietnam will finalise a legal framework to

encourage the production and use of biofuel,

design the roadmap for using biofuels in Vietnam,

learning biofuel technologies, training human

resources for this industry, zoning and developing

material areas for biofuel, build biofuel plants to

meet 0.4% of the country‘s need for petrol by

2010. This start-up work is basically on schedule.

(Continued in next column)

Vietnam joins race for biofuel

(Contd)

From 2011-2015, according to planners, Vietnam

will begin to produce additives, enzymes and

other materials for biofuels and expand their

production, develop new varieties of high

productivity, and expand biofuel plant capacity to

satisfy 1% of the country‘s need for petrol by

2015. From 2016 to 2025, Vietnam will build an

advanced biofuel industry that will produce 100%

of the national requirement for E5 and B5 fuels,

i.e., will provide 5% of the fuel needed to run the

nation‘s motor fleets.

A United Nations Environment Programme report

showed biofuels accounted for 1.8% of transport

fuel. Ethanol production tripled between 2000-07

and biodiesel production rose 11-fold. The UNEP

report also said mandates to blend biofuel into

fossil fuels for vehicles had been enacted in

17 countries by 2006, most requiring blending

with 10-15% ethanol or 2-5% biodiesel. Brazil

exported 5 bio litres of ethanol in 2008. Its

investment in biofuels rose to USD 4 bio in 2007

and had most likely risen substantially since then.

OMCs’ ethanol pacts not enough for petrol plan

Oil marketing companies (OMCs) have issued

letters of intent for only 70% of the ethanol

supply offers made by the sugar industry and

standalone distillers for the petrol blending

programme. Of the 1 000 mio litres (ml) of offers

made by the industry, around 30% have been

disqualified for technical reasons, for inability to

show that the molasses used in producing ethanol

were indigenous. The tender issued by the OMCs

said the ethanol for blending should be produced

from indigenous biomass such as sugarcane or

starch-containing material such as corn and

cassava or cellulosic material such as bagasse,

wood waste, and indigenous molasses.

(Continued on next page)

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Bio-Fuels

OMCs’ ethanol pacts not enough for

petrol plan

―Those who have been disqualified are primarily

the standalone distillers, mainly in Maharashtra,

who purchase rectified spirit from sugar mills

(who do not have ethanol facility) and process it

to make ethanol. Such units are unable to show

the sourcing of molasses,‖ said a sugar industry

executive.

Against a tender requirement of 1 050 ml, the

ethanol producers had made supply offers of

1 000 ml last month. This was more than the

860 ml required for 5% petrol blending. An

Indian Oil official said OMCs have issued letters

of intent to only 70% of the offers. So, the

blending programme cannot be nationally

implemented for the whole year, unless more

quantities are tendered. A sugar industry official

said the industry might offer more if a fresh

tender is brought in, as they now have a more

reliable estimate of sugarcane output.

Ethanol blending with petrol at 5% continued for

about 2 years before coming to a halt in October

last year, due to low supply on account of dip in

sugarcane output. Against a demand of 1 800 ml

for the period of 2006 to 2009, the sugar industry

supplied only 585 ml. Consequently, in the latest

round, the OMCs have insisted on stringent

penalty clauses for non-supply or default by sugar

companies. Ethanol is considered a ‗green‘ fuel

and blending will also help reduce India‘s heavy

dependence on crude oil imports. Some OMCs

also have plans to start ethanol production

themselves. Hindustan Petroleum Corporation, for

instance, bought two sick sugar mills in Bihar in

2008 to produce ethanol. These mills will start

producing ethanol from this December.

(commodityonline.com 28 October 2010)

Frontier wheat club offers biofuel benefits

Frontier has revealed details of its farmer contract

to supply wheat to the Vivergo bioethanol plant,

being built on Humberside. The factory will use

1.1 mio t of wheat per year and is due to start

production in mid 2011, with the demand for

about 100kt per month.

"We want to make this the most attractive home

in the country for wheat," said Frontier's grain

procurement manager Andrew Flux. "The pricing

level in the area is going to go up and we are very

keen to buy wheat every day of the year." Details

of Frontier's Humber Gold club for growers were

unveiled on 11 November, promising competitive

prices and other incentives for those who signed

up to supply a minimum of 120t of wheat.

Farmers will be able to send wheat to the plant at

up to 17% moisture, with any penalties promised

at less than it would cost growers to dry grain to

the contract standard of 15%, said Mr Flux. Other

standard contract terms are a specific weight of

72 kg per hl and 2% admixture, with payment on

21-day terms. Shorter payment terms of 14 and

7 days will be available in some cases to

encourage commitment and boost supplies at

certain times. Contracts can be on a priced,

unpriced or pool basis.

All soft wheat varieties will be accepted, but for

harvest 2012 there could be incentives, including

delayed payment terms on seed, for growing

high-starch varieties which produce better ethanol

yields, said Mr Flux. The more grain a farmers

commits through the Humber Gold club, the

greater the benefits, said Mr Flux.

Frontier's Manchester Gold club, which supplies

wheat for the Cargill starch plant near

Manchester, includes a similar feature and it was

this benefit that proved most popular with

farmers, said Mr Flux.

(Continued on next page)

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Starch Italics Starch Industry Overview

Bio-Fuels

Frontier wheat club offers biofuel benefits (Contd)

The Vivergo plant will have flexible opening

hours, allowing farmers to arrange loading to suit

their schedule. Quality analysis will also be

available within 30 minutes of a load being tipped

at the plant. Part of the service for Humber Gold

growers will be a tool to evaluate the carbon score

of their crop production, which would help them

reduce their environmental impact, said Mr Flux.

The Vivergo bioethanol factory is a joint venture

between BP, British Sugar and DuPont. (fwi.co.uk

24 November 2010)

Sorghum Produces More Ethanol, Say Research Findings

Recent findings by Ben Goff, a researcher from

the Iowa State University, indicate that sorghum

grown as a single crop produces more ethanol.

The university studied 12 different varieties of

sorghum grass grown both in single and double

cropping methods. The research also wanted to

probe into the long-term ecological benefits such

as reduced soil erosion in following the double

cropping method. (Continued in next column)

Sorghum Produces More Ethanol, Say Research Findings (Contd)

The research was aimed at finding ethanol

production efficiency of the sorghum grass

produced under double cropping system to

improve biofuel production yield. The report

indicates that ethanol production from corn or

other starch-based varieties will meet only 15 to

25% of the clean energy requirements and

indicates that the ethanol produced from

cellulose-based materials remain more effective

than the starch-based biofuels.

According to the findings, though certain types of

sorghum developed in double cropping method

produced the same amount of ethanol like that of

a single cropped yield, only sorghum product that

is developed in single crop yield constantly

produced higher levels of ethanol. The research

suggests further trials in double-cropping system

by incorporating methods such as in the growing

of crops during various seasons and planting the

crop very close to its optimal date to improve the

quality of biomass during the major portion of its

growing season and others. (azocleantech.com 24

November 2010)

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Bio-Fuels

Brazil To Build Ethanol Factory In Ghana

The Brazilian government is to establish a

USD 300 mio sugar cane plantation to produce

over 100 000 cu. m. of ethanol at Makango, near

Salaga in the Northern region. Ethanol is expected

to become Ghana‘s fourth major export after

cocoa, gold and timber. The factory would

generate 42 Megawatts (MW) of energy from

Bagasse, which is the fibrous matter that remains

after the sugar cane is crushed to extract the juice.

The factory would use seven MW and sell

35 MW to other power generating companies.

This was disclosed by the Brazilian Ambassador

to Ghana, His Excellency, Luis Fernando Serra in

an exclusive interview with City & Business

Guide.

Asked why Makango was chosen for the project,

the envoy indicated that the soil for the proposed

2700-hectare plantation was good and had enough

water from the Volta Lake to do good business.

Commenting on the election of Madam Dilma

Rousseff, the first female President of Brazil,

Ambassador Serra pointed out that the results

mean continuity and also showed the support

given to her by the Lula administration. ―The

people of Brazil had recognized President Luiz

Inacio Lula da Silva‘s achievements, the country

is having USD 280 bio in international reserve,‖

he stated.

He continued: ―Brazil is now the number one

producer and exporter of green coffee, orange

juice and sugar in the world. ―She is number 2 in

beef and soya bean. Number 3 in chicken and then

number 4 in corn or maize.‖ Ambassador Serra

revealed that in 2009, Brazil exported

USD 64.7 bio in agricultural products and

imported only USD 9.8 bio worth of goods.

(Continued in next column)

Brazil To Build Ethanol Factory In Ghana (Contd)

He also stated that Brazil recovered from the

world economic crisis faster than the rest of the

world because it has a very huge internal market

that consumes what the country was not able to

export.

Serra again disclosed that measures were in put in

place in 1994 to control inflation and attract

foreign investors, explaining that an open market

policy was also adopted. ―Another policy that was

vigorously adopted was food security by which

Brazil went into intensive and extensive

agriculture development with intensive scientific

research in all fields of agriculture,‖ he stressed.

The country ‗s scientific researchers, the Brazilian

envoy revealed, are seriously trying to develop a

new type of wheat that could be cultivated in the

tropical regions so as to help developing

countries, especially those in Africa to save a lot

of foreign exchange. ―The African continent is

dear to Brazil as we see it as our mirror and it

showed clearly in the foreign policy of the

out-going administration,‖ Serra said, adding that

15 African Embassies were opened during his

tenure with 11 African trips to 25 countries.‖

He noted that Brazil owed a great debt to the

African continent, revealing that slaves taken

from Africa helped to enrich the Southern

American countries in terms of what they did in

the mines and sugar plantations. ―Brazil will

continue to support the campaign for an African

country to become a permanent member of the

United Nations,‖ he stated. Ambassador Serra

advised that Ghana should continue its campaign

on intensive agriculture to feed the people and

acquire surplus for export.

(business.peacefmonline.com 11 November 2010)

Page 23: Starch Italics 7th Edition

Oct/Nov 2010 www.giract.com Page | 17

Starch Italics Starch Industry Overview

Bio-Fuels

Biofuels Blame Game

Every time the biofuels industry thinks it has

successfully battled back the food vs. fuel

argument, it crops up again. The tired old

argument resurfaced after an October 8 USDA

report forecast dramatic decreases in world coarse

grain supplies, including corn. In the following

days corn futures prices shot up to a high of

USD 5.79, prompting some to predict food prices

would soar.

The American Meat Institute, for example,

quickly predicted that increased corn costs would

mean increased prices for beef, pork and poultry

and producers would pass on higher feed costs to

consumers. AMI and other ethanol critics met

with the White House October 21 to oppose the

extension of ethanol tax credits. However AMI

ignores the one-third of the corn that goes into an

ethanol plant that comes out as distillers grains. In

fact, in 2009, the ethanol industry produced the

equivalent amount of distillers grains as was fed

to cattle at U.S. feedlots last year, says

Bob Dinneen, President and CEO of the

Renewable Fuels Association.

Another item that gets filed in the short term

memory bank is the World Bank report that came

out this summer. Authors John Baffes and Tassos

Haniotis conclude that biofuels had a much

smaller impact on food prices during the

commodity price boom of 2006-08 than initially

reported. It‘s clear, the report says, that U.S. corn-

based ethanol production and, to a lesser extent,

EU biodiesel production, affected market balances

and land use.

Worldwide biofuels only account for about 1.5%

of the area planted with grain and oilseeds,

however. ―This raises serious doubts about claims

that biofuels account for a big shift in global

demand,‖ the report says. It also points out that

corn prices didn‘t change much at all as U.S.

ethanol production first started increasing.

(Continued in next column)

Biofuels Blame Game (Contd)

Notably, prices actually spiked when ethanol use

was decreasing in the U.S. The report says that

demand by developing countries probably didn‘t

put upward pressure on the prices of food

commodities. It may have, however, put some

upward pressure indirectly through energy prices.

It also says the investment funds‘ use of

commodities, or the ―so-called financialization of

commodities,‖ may have been partly responsible

for the food price spike in 2007-08.

Oil prices were a big factor, too. ―A stronger link

between energy and non-energy commodity

prices is likely to be the dominant influence on

developments in commodity, and especially food,

markets,‖ the paper says.

Many in the ethanol industry say they have been

vindicated. ―This report should finally silence

those that have blamed the biofuel producers for

food shortages, food price increases and for

committing a ‗crime against humanity,‘‖ says

Rob Vierhout, secretary general of ePURE, the

Producers Union of Renewable Ethanol, formerly

eBio. ―It is about time these people recognize the

facts.‖ Tom Buis, CEO of Growth Energy, says

the report would dispel myths and lies of food vs.

fuel. ―I applaud the World Bank for admitting the

error of their ways and setting the record

straight.‖ (ethanolproducer.com 22 October 2010)

GIRACT

9th

Starch & Derivatives Conference, Geneva

Giract has pleasure in announcing this important

event to take place in Geneva, Switzerland on

February 25, 2011. The theme of this 9th

conference will be ‘Sustainability Issues for the

Starch Industry’. It is designed to be an

interactive seminar and ideal networking

opportunity for a limited number of high-level

participants. Full details are to be found on the

following pages. Please do not hesitate to

contact us at [email protected] if you have any

questions.

Page 24: Starch Italics 7th Edition

AAAAN N N N IIIINTERNATIONAL NTERNATIONAL NTERNATIONAL NTERNATIONAL SSSSEMINAREMINAREMINAREMINAR

9999thththth

Starch &Starch &Starch &Starch &

Derivatives Derivatives Derivatives Derivatives

ConferenceConferenceConferenceConference Sustainability Issues for Sustainability Issues for Sustainability Issues for Sustainability Issues for

the Starch Industry the Starch Industry the Starch Industry the Starch Industry

---- an Interactive Seminar an Interactive Seminar an Interactive Seminar an Interactive Seminar

February 25, 2011February 25, 2011February 25, 2011February 25, 2011

Geneva, SwitzerlandGeneva, SwitzerlandGeneva, SwitzerlandGeneva, Switzerland

Organised byOrganised byOrganised byOrganised by

GGGGIRACTIRACTIRACTIRACT 24 Pré Colomb

CH-1290 Versoix-Geneva

Tel: +41 22 779 0500

Fax: +41 22 779 0505

[email protected]

www.giract.com

BBBBACKGROUNDACKGROUNDACKGROUNDACKGROUND

The Starch Industry continues to evolve

rapidly. The global shift in production and

demand, raw materials issues and changing

consumer demands are reflecting the growing

importance of the sustainability question for

the industry. This will be the main theme of

the 9th Starch & Derivatives Conference which

will focus on the opportunities for the

European starch sector.

It may be necessary for reasons beyond the control of the

organizers to alter the content and/or timing of the programme

PPPPROGRAMMEROGRAMMEROGRAMMEROGRAMME This 9th seminar will aim to:

• offer an interactive forum for identifying common

opportunities and threats

• present and discuss recent industry developments

• obtain and analyse relevant external views

PPPPROVISIONAL ROVISIONAL ROVISIONAL ROVISIONAL AAAAGENDAGENDAGENDAGENDA

� WWWWORLDORLDORLDORLD TTTTRADE IN RADE IN RADE IN RADE IN AAAAGRICULTURAL GRICULTURAL GRICULTURAL GRICULTURAL CCCCOMMODITOMMODITOMMODITOMMODITIES IES IES IES

–––– CCCCEREALS VERSUS EREALS VERSUS EREALS VERSUS EREALS VERSUS TTTTUBERSUBERSUBERSUBERS

Alastair Dickie - CFM (UK) Ltd

� SSSSTARCH IN TARCH IN TARCH IN TARCH IN TTTTHE HE HE HE EEEEUROPEAN UROPEAN UROPEAN UROPEAN PPPPAPER APER APER APER IIIINDUSTRYNDUSTRYNDUSTRYNDUSTRY ---- A A A A

CCCCHANGING HANGING HANGING HANGING GGGGLOBAL LOBAL LOBAL LOBAL PPPPERSPECTIVEERSPECTIVEERSPECTIVEERSPECTIVE

Detlef Glittenberg – Cargill

� OOOOPPORTUNITIES FOR PPORTUNITIES FOR PPORTUNITIES FOR PPORTUNITIES FOR TTTTAPIOCA IN APIOCA IN APIOCA IN APIOCA IN IIIINDIANDIANDIANDIA

Speaker to be announced

� SSSSUSTAINABLE USTAINABLE USTAINABLE USTAINABLE FFFFOOD OOD OOD OOD PPPPRODUCTION AND RODUCTION AND RODUCTION AND RODUCTION AND

IIIIMPLICATIONSMPLICATIONSMPLICATIONSMPLICATIONS FOR FOR FOR FOR SSSSTARCH TARCH TARCH TARCH SSSSUPPLIERSUPPLIERSUPPLIERSUPPLIERS

Holger Toschka - Unilever

� OOOOPPORTUNITIES AND CHAPPORTUNITIES AND CHAPPORTUNITIES AND CHAPPORTUNITIES AND CHALLENGES FROM AN LLENGES FROM AN LLENGES FROM AN LLENGES FROM AN

EEEEQUIPMENT QUIPMENT QUIPMENT QUIPMENT SSSSUPPLIERUPPLIERUPPLIERUPPLIER’’’’S S S S PPPPOINT OF OINT OF OINT OF OINT OF VVVVIEWIEWIEWIEW

Speaker to be announced

� NNNNEED FOR EED FOR EED FOR EED FOR OOOOPEN PEN PEN PEN IIIINNOVATION IN THE NNOVATION IN THE NNOVATION IN THE NNOVATION IN THE SSSSTARCH TARCH TARCH TARCH

IIIINDUSTRY NDUSTRY NDUSTRY NDUSTRY

Jo Goossens – Giract

GGGGIRACT IRACT IRACT IRACT CCCCOMPETENCEOMPETENCEOMPETENCEOMPETENCE Giract is the leading ingredient and additive market

research specialist with over 30 years experience.

Its clients are worldwide in both ingredients supply

and food processing industries.

It has been working closely with the starch industry

- both at the producer and user levels – for a

number of years and thus understands the real

requirements of this sector:

� it is an independent company with an

unblemished reputation of strict neutrality and

confidentiality

� its senior members are already known to many

key personnel in this industry

� its range of work in the starch and related

sectors – both individual and multiclient – over

a number of years has given it a clear

understanding of the sector and its problems

and opportunities.

Page 25: Starch Italics 7th Edition

CCCCONFERENCE ONFERENCE ONFERENCE ONFERENCE BBBBOOKING OOKING OOKING OOKING FFFFORMORMORMORM We wish to register the following delegate(s):

Title (Mr/Ms/Mrs/Dr) _____ First Name ________________________ Family Name __________________________________

Position ________________________________________________________________________________________________________

Email _________________________________________________________________________________________________________

Title (Mr/Ms/Mrs/Dr) _____ First Name ________________________ Family Name __________________________________

Position ________________________________________________________________________________________________________

Email __________________________________________________________________________________________________________

Company _________________________________________________________________________________________________

Address _________________________________________________________________________________________________

Telephone _____________________________________ Fax ___________________________________________________

RRRREGISTRATION EGISTRATION EGISTRATION EGISTRATION FFFFEESEESEESEES

First delegate: EUR 1950 EUR ____________

Additional delegate(s): EUR 1550 per delegate EUR ____________

Dinner, February 24, 2011: EUR 85 per delegate EUR ____________

Total EUR ____________

HHHHOTEL OTEL OTEL OTEL CCCCHOICEHOICEHOICEHOICE

HotelHotelHotelHotel ______________________________ Please note that all hotel charges are to be settled directly by the client

No of rooms: _____ No of nights: _______ Date(s): ___________________________________________________________

DDDDATEATEATEATE Friday, Friday, Friday, Friday, February 25, 2011February 25, 2011February 25, 2011February 25, 2011: 09h00: 09h00: 09h00: 09h00----16h0016h0016h0016h00

VVVVENUEENUEENUEENUE Swissôtel Metropole

Quai Général Guisan 34

1204 Geneva

Tel: +41 22 318 3200

www.swissotel.com/geneva

Situated on the lakeside in downtown Geneva

HHHHOTEL OTEL OTEL OTEL AAAACCOMMODATIONCCOMMODATIONCCOMMODATIONCCOMMODATION Hotel accommodation and travel are not included in

the registration fee.

Rooms have been retained for delegates at the

following hotels, each with special conference rates.

Please indicate your choice as soon as possible as

room availability at these hotels is limited

SwissSwissSwissSwissôôôôtel Metropoletel Metropoletel Metropoletel Metropole CHF 450/night conference venue (incl. breakfast)

HotelHotelHotelHotel New Midi New Midi New Midi New Midi CHF 290/night 10 minute walk from conference venue (excl. breakfast)

HotelHotelHotelHotel Churchill Churchill Churchill Churchill CHF 155/night 5 minute walk from conference venue (incl. breakfast)

CCCCONFERENCE ONFERENCE ONFERENCE ONFERENCE RRRREGISTRATION EGISTRATION EGISTRATION EGISTRATION FFFFEEEEEEEE First participant: EUR 1950 Additional delegates: EUR 1550 per delegate

For registrations received after February 4, 2011, fees will be:

First participant: EUR 2150 Additional delegates: EUR 1700 per delegate

HHHHOW TO OW TO OW TO OW TO RRRREGISTEREGISTEREGISTEREGISTER - Online at www.giract.com/reservations using the

event code stc9

- By completing and returning the booking form to:

GGGGIRACTIRACTIRACTIRACT 24 Pré Colomb

CH-1290 Versoix/Genève, Switzerland

Tel: +41 22 779 0500 Fax: +41 22 779 0505

[email protected]

DDDDINNER INNER INNER INNER FOR FOR FOR FOR DDDDELEGATESELEGATESELEGATESELEGATES,,,, FFFFEBRUARY EBRUARY EBRUARY EBRUARY 24,24,24,24, 2011201120112011 Giract is organising a dinner for delegates on

Thursday evening, February 24. This is an

important networking opportunity and we

encourage all delegates to participate.

Contribution is EUR 85 per delegate.

PPPPAYMENTAYMENTAYMENTAYMENT - By bank transfer to:

UBS - Union de Banques Suisses

1211 Genève 2 Depôt

IBAN: CH540024024042182971X

- With Visa/Mastercard via online registration

CCCCANCELLATIONANCELLATIONANCELLATIONANCELLATION Written cancellations received before February 4,

2011 will be fully refunded; those received between

February 4 - February 18, 2011 will be subject to

an administrative charge of EUR 160. Thereafter, it

is regretted that the full conference subscription

fee will be due. However, a copy of the conference

proceedings will be provided. Substitute delegates

are permitted if notified in advance.

9999THTHTHTH SSSSTARCH TARCH TARCH TARCH &&&& DDDDERIVATIVES ERIVATIVES ERIVATIVES ERIVATIVES CCCCONFERENCEONFERENCEONFERENCEONFERENCE GGGGENEVAENEVAENEVAENEVA,,,, FFFFEBRUARYEBRUARYEBRUARYEBRUARY 25,25,25,25, 2011201120112011

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Starch Italics Starch Industry Overview

Bio-Fuels

Commodities Buzz: US Can Meet Ethanol Demand Despite Tight Supplies; Says Deputy Secretary Soaring corn prices and tightening supplies will

not shake the government's support for ethanol, a

top U.S. Department of Agriculture official.

Despite new government estimates projecting

corn supplies next year will reach their lowest

level in 14 years, USDA deputy secretary

Kathleen Merrigan noted that historically, we're

looking at a very strong corn crop.‖ The USDA

estimates the corn crop is about 4% smaller than

last year's record.

Merrigan added that there is no way U.S. will

meet federal mandates calling for 36 mio gallons

of renewable fuel production by 2022 without

relying on corn-based ethanol. I don't think we're

at the point of pitting various interests against

each other, she said at a conference on agriculture

and rural development at the Chicago Federal

Reserve. The livestock and poultry industries

have fiercely opposed government support for

ethanol, claiming it drives up the cost of feed, and

food costs generally.

Chicago Board of Trade corn prices climbed

above USD 6 a bushel to a 27-month high this

week before falling back. Almost 40% of the

2010 U.S. crop will be used for ethanol, according

to USDA. (indiainfoline.com 11 November 2010)

Busy Time for Ethanol Producers

Mason City - It's out of the field and making its

way to elevators around the area. This year's corn

crop is one of the better harvests for both north

Iowa and southern Minnesota, and that's causing

big business for those marketing the crop. The

corn is starting to make its way to ethanol

producers across the state.

(Continued in next column)

Busy Time for Ethanol Producers (Contd)

About one acre of corn can produce more than

300 gallons of ethanol, and producers in north

Iowa are keeping busy with all those kernels.

"As a nation almost a third of the crop gets turned

into ethanol," said Scott Gudbaur, commodities

manager. "We grind between 115 and 120 000

bushels of corn per day so that means we've got to

take in about 160 000 average in the 5 day work

week," said Gudbaur. He also said, "This plant

opened as a 40 mio gallon plant and it was

doubled 2 years ago so it's an 80 mio gallon plant

that we're running like 110 mio gallons from,".

The National Corn Growers Association says for

every barrel of ethanol produced, 1.2 barrels of

petroleum are displaced. At the beginning of this

year there were 189 ethanol plants in operation in

the United States. (kimt.com 11 October 2010)

Agricultural Waste to Biofuel Research Published in India Two scientists from Sri Paramakalyani Centre of

Excellence in Environmental Sciences

(SPKCEES) - affiliated to Manonmaniam

Sundaranar University - have extracted fuel from

agro-waste.

(Continued on next page)

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Starch Italics Starch Industry Overview

Bio-Fuels

Agricultural Waste to Biofuel Research Published in India (Contd)

C. Sathesh Prabhu, a post-doctoral researcher of

the centre, who is working on advanced research

on bio-ethanol production from lignocellulosic

agro-waste along with A.G. Murugesan,

Professor, SPKCEES, says production of ethanol

as an alternative fuel through cost-effective

methods has become imperative due to global oil

shortage and demand. Currently ethanol accounts

for about 86% of total bio-fuel production and

demand for ethanol as bio-fuel has steadily

increased during this decade.

However, the production of ethanol from sugar or

starch from sugarcane and cereals respectively,

impacts negatively on the economics of the

process, thus making ethanol more expensive

when compared to fossil fuels.

Currently, agricultural waste in India is generally

burnt at the field itself. The scientists claims that

using more of the agro-waste for bio-ethanol

production will not only suffice the fuel

requirement, but will also boost the economy of

the country, the researchers say. The production

methods of ethanol from agricultural waste like

corn cob, corn stalk and sorghum stover have

been successfully standardised at the centre.

(Continued in next column)

Agricultural Waste to Biofuel Research Published in India (Contd)

Dr. Sathesh Prabhu has demonstrated simple

pre-treatment methods to break down the complex

agricultural wastes (carbohydrate sources) into a

simple form, so as to enable the ethanologenic

microorganisms to ferment them and produce

ethanol. He states that about 250 - 270 litres of

ethanol can be produced from 1 t of agricultural

waste such as corn stover, rice straw and sorghum

stover.

Prabhu's study highlights dual benefits in terms of

managing the agro-residues and producing green

and clean energy, thus decreasing the amount of

greenhouse gases emitted into the atmosphere.

(waste-management-world.com 26 November

2010)

EPA Announces Renewable Fuels Standard 2011 Requirements The Environmental Protection Agency (EPA)

today announced its Renewable Fuels Standard

(RFS2) requirements for 2011. The final

requirements fall in line with the agency‘s

proposed rule from earlier in the year. The total

RFS2 requirement for 2011 will remain at

13.95 bio gallons. Of this amount,

12.6 bio gallons will be starch-based ethanol.

The remaining 1.35 bio gallons will be a

combination of biodiesel and other advanced

biofuels, including a 6.6 mio gallon requirement

specifically for cellulosic biofuels, which is lower

than original targets established when the RFS2

became law. In response to the standard,

Renewable Fuels Association (RFA) President

and CEO Bob Dinneen issued the following

statement:

(Continued on next page)

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Starch Italics Starch Industry Overview

Bio-Fuels

Bio-Plastics

EPA Announces Renewable Fuels Standard 2011 Requirements (Contd)

―The RFS was designed in part to ensure the

evolution of America‘s biofuels industry is

successful. By reducing the standard for cellulosic

biofuels, EPA is accurately reflecting the

difficulties cellulosic biofuel technologies have

encountered in obtaining the capital needed to

fully commercialize. However, being aware of

this fact, EPA should have been and must be

careful to keep cellulosic biofuel targets ambitious

so as to stimulate the kind of investment these

technologies need to finish commercialization.‖

In its comments on EPA‘s proposed rule, the RFA

urged EPA to keep the overall RFS target at

13.95 bio gallons and allow other renewable fuels

as defined by the RFS to make up the cellulosic

biofuel shortfall in 2011.

(cornandsoybeandigest.com 29 November 2010)

Mater-Bi distribution agreement with Thailand's Thantawan

Italian bioplastics manufacturer Novamont

(Novara) signed an agreement with Thai bag and

flexible straw manufacturer Thantawan Industry

(Bangkok) for the distribution of Mater-Bi in

Thailand.

Pointing to the advantages of producing

bioplastics in Thailand, Novamont‘s new

Business Development Director Stefano Facco

did not dismiss the option that pending good sales

of Mater-Bi, the Italian company could in future

establish a plant in Thailand to produce Mater-Bi

from cassava starch. (plasteurope.com 28

September 2010)

Potatoes To Plastic A Carberry-based company continues to research

new applications for potato-based bioplastic.

Solanyl Biopolymers holds the license to

technology that uses potato starch from the food

processing industry to create a starch-based

bioplastic that can be turned into semi-durable

and disposable products.

"If you look around and see how much plastic is

around, there's lots of opportunity and lots of

ways to use our material," says marketing

manager Mavis McCrae.

So far, the company has used its bioplastic to

make products such as office supplies and

biodegradable greenhouse pots. "Anything that is

semi-durable or disposable is a great application

for the bioplastic," says McCrae.

The starch is reclaimed from the waste water at

potato processing facilities. It is then converted

into a resin that can be heated and shaped through

traditional injection molding. Solanyl was

recognized earlier this month as the Emerging

Agribusiness Life Science Company of the Year

by the Life Science Association of Manitoba.

(portageonline.com 22 November 2010)

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Starch Italics Starch Industry Overview

Bio-Plastics

Researchers engineer genes of plants to grow raw materials for green plastic

Till date most plastic that we use in our day-to-

day lives either comes from petroleum or coal.

Recent advancements in technology have enabled

manufacturers to come up with greener

alternatives in the form of bioplastics that are

made from polyester derived from corn, starch or

sugar cane byproducts. Researchers at the

Brookhaven National Laboratory and

Dow AgroSciences have now come up with a new

technology that can help produce green plastic

without tapping into the food supply.

The research team has engineered a relative of

cabbage to grow the raw materials for producing

eco-friendly plastic. The biologists wanted to

make plants that can produce high levels of

omega-7 fatty acids that can be used to make

compounds needed in plastic production.

The team experimented with genes from plants

that are known to produce these acids in their

seeds. After experimenting with a variety of

plants including milkweed and cat‘s claw vine,

the researchers had to engineer an entirely new

metabolic pathway creating artificial enzymes to

create seeds with high level of omega-7 fatty

acids. These genetically modified seeds can be

used as a renewable source of chemicals that can

then be used to make greener plastics.

(ecofriend.org 11 November 2010)

Nigeria's Plastic Bag Dilemma

Across Africa, plastic bags blemish rural and

urban scenery, damage ground water and soils,

and choke livestock and fish, entangle birds and

threaten animals in general. The UN Environment

Program, UNEP, estimates that some 4 or 5

trillion plastic bags are manufactured worldwide

every year, with only 1% being recycled.

(Continued in next column)

Nigeria's Plastic Bag Dilemma (Contd)

The work is being done at the Biotechnology

Advanced Laboratory in Abuja, a part of the

government‘s Sheda Science and Technology

Complex.

Researchers are working to embed biodegradable

starch in polymers, which are used to make

plastics. Next, they identify microbes that would

feed on the starch and cause it to break down

completely into organic material, which would

then be assimilated back into the soil.

Prof Godwin Ogbadu is director of the

Abuja-based Biotechnology Advanced Laboratory

In South Africa, experts are developing plastic

bags that dissolve into water and carbon dioxide

in prolonged exposure to sunlight.In Mali, experts

are working using them to make paving stones.

Some governments are passing laws to ban or

curb the use of plastic bags. Several economists

argue that restrictions will lead to unemployment

and revenue loss, while others say it will save

millions of barrels of oil used in producing plastic

bags. Dr. Shola Odusanya is deputy director on

the Biotechnology and Genetic Engineering

Laboratory, part of the Sheda Science and

Technology Complex. He and his colleagues are

working to reduce the amount of plastic waste

with a process that breaks it down into powder.

(Continued on next page)

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Starch Italics Starch Industry Overview

Bio-Plastics

Nigeria's Plastic Bag Dilemma (Contd)

The Nigerian scientist says, Odusanya says the

project will become marketable and will create

new jobs. Litter bins for plastic waste will be set

up nationwide, and people will be recruited to

search through the dumps for plastics.

In some countries, like Cameroon, waste

management systems are inadequate and

environmental laws rarely enforced. In those

cases, the approach is different. An eco-friendly

artist, Nereus Patrick Cheo, has recruited an army

of street children.

Together they rake through foul-smelling refuse

dumps for plastics, which Cheo transforms into

flower jars, beads, statues and muralsFor now, the

bulging heaps of abandoned waste, especially

plastics, remain. And so environmentalists are

hoping Dr. Odusanya‘s project will be successful

and can be used by scientists in other parts of

Africa. (voanews.com 5 October 2010)

Wacker develops biodegradable plastics

The Wacker Chemie AG has, in collaboration

with customers, developed biodegradable plastic

products made from powder binders and either

starch or flour – as announced on the 8th of

November 2010. In combination with renewable

raw materials, Vinnex® polymeric binding agents

make it possible to create polymer blends that –

like commercially available thermoplastics – can

be processed by injection molding, extrusion,

vacuum forming or thermoforming.

As a result, Wacker is now able to combine starch

or flour with Vinnex® to create polymer blends

that will biodegrade entirely under industrial

composting conditions and that still can be

processed in the same way as petroleum-based

plastics. (Continued in next column)

Wacker develops biodegradable

plastics (Contd)

Suitable uses for these new polymer blends

include materials for packaging, catering

products, gardening and landscaping. The

Vinnex® vinyl acetate-based polymeric binder

system can be combined with renewable raw

materials such as starch, polylactic acid (PLA)

and polyhydroxyalkanoates (PHA) to create

polymer blends with adjustable properties which

can be modified to correspond to a variety of

synthetic polymers.

Like commercially available thermoplastics,

biopolymers obtained in this way and containing

between 5 and 30% Vinnex® can easily be

processed by injection molding, extrusion,

vacuum forming, thermoforming and calendering.

In addition, the formulations of these polymer

blends can be adjusted so that they are

processable with standard (unmodified)

thermoplastic equipment, making additional

investment unnecessary.

The greatest advantage of these innovative new

polymers, however, is their biodegradability:

composting studies have shown that blends

containing Vinnex® break down within 180 days

under industrial composting conditions, as

stipulated by DIN EN 13432. The option of using

flour as the primary constituent is yet another

advantage of these new polymers: flour can be

obtained in fewer processing steps than starch,

and that translates into less energy and a

significantly more sustainable carbon footprint.

Wacker already possesses patents for modified

starch polymers.

Because they are biodegradable, these new

polymer blends are especially suitable for use as

food packaging materials, disposable dishes,

shopping bags and trash bags, as well as for

injection-molded agricultural products such as

tomato clips and flower pots. (jeccomposites.com

11 November 2010)

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Starch Italics Starch Industry Overview

Bio-Plastics

Others

NYU researchers find corn starch solution can help shape solid materials

New York University researchers have developed

a method to shape solid materials using a corn

starch solution. The process, devised by

researchers in NYU's Courant Institute of

Mathematical Sciences and Department of

Physics, offers a potential technique for material

cutting and manufacturing processes. Their work

is described in the journal Physical Review

Letters.

Manufacturers use a variety of methods for

shaping solid materials, ranging from laser cutting

to high-speed jets of water. While altering the

shape of such materials, such as glass, metal, or

stone, is relatively straightforward, doing so with

precision often proves challenging. With this in

mind, the NYU researchers sought to create an

alternative, but rudimentary, method to shape

solid materials in a precise fashion. To do so, they

considered a process involving a corn starch

solution.

They submerged a motor-powered, plastic sphere

through the cornstarch solution toward a

containing wall made of modeling clay, stopping

just short of the wall. Using the force of the

sphere to harden the cornstarch solution, the

researchers were able to make indentations in the

wall of modeling clay.

In addition, they were able to do so with a degree

of precision by taking into account speed, force,

and geometry.

By moving the sphere at fast speeds through the

solution, they created large depressions in the

clay; by slowing it down, they created smaller

depressions. (eurekalert.org 4 Nov 2010)

Cardia makes bags by blending CO2

with starch a rdia makes bags by

blending C2 with starch

Melbourne packaging technology company

Cardia Bioplastics has developed a biodegradable

plastic bag created from a blend of CO2 emissions

and starch. Chairman Pat Volpe said the company

has successfully completed a first production run

of the carrier bags, known as CO2S – or, carbon

dioxide plus a starch based renewable resource.

―This is the first time CO2 emissions have been

transformed in this way and the development has

the potential to revolutionise the production of

bioplastics around the globe,‖ he said.

According to the company, CO2 emissions are

captured prior to being released into the

atmosphere, transformed into a polypropylene

carbonate (PPC) polymer and blended with a

renewable resource (starch) to produce the Cardia

Bioplastics CO2S resin. This product is then used

to produce a completely biodegradable carrier

bag.

Volpe said this development promises to offer

packaging alternatives globally, with the company

now in discussion with several parties interested

in the technology.―Our new patent pending

blending technology used to manufacture CO2S

compostable product will complement the

existing Cardia Bioplastics portfolio,‖ Volpe said.

(prw.com 26 October 2010)

Southern Minnesota Beet sugar cooperative Minnesota is using a specialty crop, like

sugarbeets. It takes unique and expensive

equipment to harvest the beets, which would have

no use or value in producing other crops. That

means a well-organized harvest among individual

growers and a coordinated sugar processing

season are in every sugarbeet farmer's best

interest. (Continued on next page)

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Others

Regional Language News

Southern Minnesota Beet sugar cooperative (Contd)

Meanwhile, the huge sugarbeet processing plant

at Renville would be too costly for any individual

farmer or even a small group of farmers to build

and operate on their own. The only alternative

would be an enormous, vertically integrated

farming operation that would not be consistent

with Minnesota's family farm business model.

Farms are individually and family-owned

enterprises in Minnesota.

Through cooperation, these farms can engage in

value-added business activities that increases rural

wealth, provides jobs, and retains a higher portion

of the consumer food dollar at home.

Specialty nut, fruit and vegetable crop producers

in other parts of the United States operate in much

the same way as Minnesota and North Dakota

sugarbeet farmers. The uniqueness of the costly

sugarbeet equipment, however, makes our sugar

industry more like a special potato starch

cooperative in northern Holland and adjacent

areas of Germany. These farmers grow potatoes,

but not the kind you buy in stores.

The world's pharmaceutical companies buy the

starch this crop produces because it's a

highly-digestible material used in making

medicine capsules. Land costs in the Netherlands

would make growing potatoes for the retail

market nearly impossible.

The innovation and business savvy of the Dutch

starch cooperative, however, make the Dutch and

German potato farmers among the most successful in the world by producing extreme

value-added products. (tcdailyplanet.net 23

November 2010)

These are the news derived from regional

publications, translated using online tools,

hence the medium quality of translation.

China

Strive to achieve the 3 mio t Plant Polyols Capacity

Dacheng Group is the largest corn intensive

processing group in China, the annual corn

processing capacity is 4 mio t, with more than

200 sorts of products, which are sold both at home

and abroad. 75% of the product is feeding stuff

and feeding additives, which can sell back to the

agriculture as well as support the rapid

development of animal husbandry; another 20% is

food stuff, which includes amylose and corn oil.

The Polyols Plant takes up 5% of the product,

which take the place of the oil chemical products.

During the 13 years, Dacheng Group has two

items ranking first in the world, one is the lysine

production capacity and technology, the other is

the innovative technology and production as well

as the sales of the plant chemical Polyols, and all

of the techniques are intellectual property rights.

In 2009, the global lysine sales was not more than

1 mio t, Dacheng Group make up for 60%, with

570kt sales; the group use the botanical

glycosides as raw materials of the Polyol plant,

they produce the chemical materials that can

replace oil, by using the hydro cracking

technology. The products are widely developed

and applicated by the customers at home and

abroad. The sales are 3kt to the USA and 1kt to

the Europe every month.

Last year, Dacheng Group successed in the

technique to produce Polyols by using the

diversification of non-food plant sugars as raw

materials and take corn as material to produce

polyols plants.

(Continued on next page)

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Strive to achieve the 3 mio t Plant Polyols Capacity (Contd)

This year, Dacheng Group strives to develop the

straw sugar, reduce or stop using the corn as the

material in producing Polyols. By the end of the

year, Dacheng group will build an annual output

of 20kt corn straw sugar-producing model plant.

In 2011, five 100kt production plants will be set

up in Changchun area; and in the year 2012, there

will be another 5.

The 5 carbon sugars and the 6 carbon sugars

making out of the corn straw are of high

utilization and low cost, meanwhile, the

production process is clean green and energy.

For the time being, 1 t sugar can be made out of

2.5 t corn straw in Dacheng group, which can

make a 67% farmer income increase, and turning

the waste into treasure. The straw is

CNY 600 per t ;and the corn is CNY 1500 per t.

Dacheng group not only successes in making the

inexhaustible straw resources a replacement of the

oil resources, but also solves the problem of

handling the straw, fit in with the green and low-

carbon economy, as well as ensuring the farmer‘s

increase income, supporting the agriculture

development.

Dacheng group has future plans of building the

3 mio t Polyol plant project and 3.5 mio t Straw

Sugar project. The group is committed to make

good use of the plant resources, strive to develop

the biological manufacturing, and make a

significant contribution to the industrial structure

adjustment of Jilin province.

(jlrbszb.chinajilin.com.cn 16 October 2010)

Output Reduction is not the Main Factor of the Cassava Starch Price Since the fresh potato enter the market, the rate of

cassava production cut is 20-30% in some areas in

Guangxi, some places even up to 50%. Since the

fresh potato of 2009-10 season launched a heavy

volume on the market in Guangxi, the prices

continue to go higher, the flour containing rate is

26-27%, purchase price of the headland fresh

cassava is CNY 560-580 per t. Correspondingly,

the cassava starch prices also follow higher.

Thailand's cassava has kept the issue of

production cut signal, the expected 2009-10

season cassava production in Thailand was only

22.21 mio t, far lower than the pre-production of

the 27.76 mio t before the pests‘ out breaking.

Therefore, cassava starch price is not bearish but

bullish, the overall market to maintain the shock

upstream.

The whole planting area of cassava in Vietnam

remain stable about 45 mio hectares , strive to

achieve the average 23-24 t cassava per hectare

yield of planting area by 2015, and to succeed by

using enhanced growing techniques, quality

seeds, plant protection to support the development

and investment. Vietnam cassava has switched

into a value-added crop. Vietnam Ministry of

Trade and Industry has been identified cassava

products as the Vietnamese agricultural export

pillar products.

In recent years, the domestic market has the

increasing demand for the imports of cassava

products, domestic cassava starch mitigation on

the domestic market supply and demand gap is

just drop in the bucket, and 60% of the cassava

starch demand has to be made up by the import.

China is a country that demands for cassava

products in a great quantity. Every year China

imports more than 600 t dried cassava chips and

cassava starch.

(Continued on next page)

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Output Reduction is not the Main Factor of the Cassava Starch Price (Contd)

At present, China is the main export market of

various cassava products of Vietnam and

Thailand, accounting for more than 90% of the

cassava exports total amount. Many countries in

Asia, Indonesia, Cambodia, have gradually

participated in the cassava product competition.

Thai deputy spokesman W Lak poor in prime

minister's office disclosed that the Cabinet agreed

to sale 14 mio t flour to the China Marine

Shipping Agency Lianyungang company through

the official form (G2G), commensurate with the

price of 10 660 baht per t, for its price is higher

than other companies.

This sale of tapioca flour is to reduce the risk of

deterioration of goods, piece goods by the Bay

has reached 16 months. According to regulations,

the shipment should reach the destination after

signing the contract within 2 months. Therefore,

these goods should be in shipment before July.

We all know that these powders have been stored

for 16 months, and there will be certainly some

problems in quality, only the enterprises that are

in less demanding on the quality will accept the

powder. In Nanning, the cassava starch price is

currently maintained at CNY 3700-3750 per t (tax

included), there are gaps in the price, but there

are also great advantages in the quality.

In the big situation of prices up-going, it is very

difficult to expect these powders to be sold at a

low price. Learned form Sun, the Secretary of

China Starch Association, the domestic demand

for cassava starch is in exponential growth. The

domestic cassava starch is failed to meet the

shortfall to a large extent. Overall, output

reduction is not the biggest factor of the cassava

starch price; the demands are the main cause of

the high price. (frbiz.com 12 November 2010)

Continuation of known environmental needs of bio-plastics

At present, the production of Bio-plastic is

mainly concentrated in North America, Western

Europe, Japan and other developed countries and

regions. Freedonia Group predicts that production

capacity of China's bio-plastic products will

exceed 10 mio t each year by 2013. Brazil will

become the world's major producer of bio-plastics

by 2018. By 2025, Asia will be the leader in bio-

plastics market, will cover at least 32% of

worldwide market, then Europe by 31%, America

by 28%. Domestic corporation will be forced to

work for overseas company.

According to the introduction of one Secretary

General, Wong yunxuan, from the China Plastic

Association degradation committee, there are two

reasons for the status of working for foreign

corporations: First, Developed countries have

strict regulation for recycling and treatment for

abandoned traditional plastic. Under the influence

of environmental awareness and lawful sense

more consumers were willing to accept bio-green

plastic, so the market is growing, enterprises have

more profit. Second, because the high cost for

most of bio-plastic products, high price, lack of

promotion under China's policy environment, It is

difficult to promote Bio-plastic in China. Due to

the differences between international and

domestic markets, domestic companies are

willing to product on aboard.

Another important factor is that only a few

companies such as Nature Works in America,

BASF in Germany besides China can

industrialized product bio-plastics. At present,

Although some foreign companies are planning to

increase the capacity of new production, but in the

past few years, production in Occident and Japan

increased very slowly. Also there is only a single

species in most countries, Such as the United

States, Germany, Japan, Italy etc.

(Continued on next page)

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Continuation of known environmental needs of bio-plastics (Contd)

Contrast against developed countries from the

new century, China's domestic bio-plastics

industry has developed rapidly. By 2007,

production of bio-plastic reached 80kt; by 2009

surge to 150kt, nearly doubled in two years. Total

output of bio-plastics reached 250kt in 2010.

Currently, there are more than 20 enterprises

could product on large-scale in China. the

production on the scale increase from a few

thousand tons to million tons.

Also more than twenty universities and institutes

specialized in researching and developing in this

field. Meanwhile, china could product most

Bio-plastic species in the worldwide, some

species, such as glycolic acid acid copolyesters

(PHBV), poly butylene succinate (PBS),

carbon-dioxide, propylene oxide copolymer

(PPC) and are unique in China. Due to above

reasons, all of the Bio-plastic were produced into

finished good directly, and then almost all of the

product were exported to other countries.

The demand of the low cost petroleum-based

plastic has become the key to develop the

reproducible material. Many reproducible

chemicals company indicated that the cost of

reproducible chemicals, especially Bio-plastic,

must low than traditional plastic in order to

survive in market in Bio-chemicals eastern

summit,which held in Boston in Massachusetts of

the United States in September, The official of

Europe Bio-plastics Association said the

petroleum-based plastics are still relatively cheap,

but the bio-plastic products will be applied in

more fields in the next few years. The price of

bio-plastics will catch up with the conventional

plastics.

(Continued in next column)

Continuation of known environmental needs of bio-plastics (Contd)

Bio-plastics have been achieved extraordinary

effects in some special applications field. The

demand is increasing for bio-plastics based on the

demand of reproducible and the Eco-friendly

goods. Meanwhile, due to the price of crude oil

and natural gas continued to rise, bio-plastics

become more competitive than petroleum based

resins. the polylactic acid (PLA), starch-based

polymer and polyhydroxy alkanoate (PHAs) are 3

main kinds of bio-plastic products.

In the nature, abundant bio-based raw materials

such as glucose, fructose, xylose, arabinose,

lactose, sucrose, starch etc, can produce

Bio-plastic, such as PLA, PHA and so on.

Because the source of bio-plastics is from plants

rather than fossil fuels, it saves a lot of energy, in

addition, the entire production process reduced

CO2 emissions.

Western Europe is the world's largest regional,

which has the most demand for bio-plastics, the

demand in 2008 cover around 40% of the

worldwide. Strong demand growth of Japan, the

Asia-Pacific region will become the world's

fastest-growing region, it will share the market

with Western Europe by 2013, the other region of

the world, such as Latin America and Eastern

Europe the demand of bio-plastics will continue

to grow.

At present, most of bio-plastic products were

exported to other countries, more than 90% of the

raw materials and products are exported to

overseas markets. A few were sold in the

domestic market, it is estimated that in 2009

domestic consumption of bio-plastics is less than

1 mio t. Domestic bio-plastics corporation were

forced to work abroad. (3158.com 11 November

2010)

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Regional Language News

November 17, Dalian corn fell sharply Wednesday, subjecting to suppress from the

policy side and the financing side, and dragged by

the surrounding market, the price of Dalian corn

fell sharply, the main 1109 contracts closed at

CNY 2,288 in the limit, down CNY 74. For the

traders worried about the sluggish demand, the

price of CBOT corn future contract in December

is 525.75 cents per bushel, down 0.75 cents.

In the spot market, traders‘ purchase price of corn

in Jilin Yumu is CNY 1480 per t, with water 30%.

In rural areas of Heilongjiang, purchase price is

CNY 1380 per t, with water 30%. In Zaozhuang

of Shandong, purchase price of new corn is

CNY 1960 per t, with water 15%.

In Linyi of Shandong, eel feed manufacturers‘

purchase price of wind sifting corn CNY 2,120

per t, with water 15%. In Jing County, Hebei,

traders‘ purchase price of new corn is CNY 1920

per t, with water 15%. In Ningbo, of, the site price

of new corn from Northeastern China is

CNY 2240 per t, with water 15%, up CNY 20

per t. In Henan Anyang, listed purchase price of

new corn (net pay) is CNY 2 000 per t, with 15%

water.

In Chengdu, the sale price of new corn from

Northeastern China is CNY 2260 per t, with water

15%. In Hefei, site price of corn from

Heilongjiang is CNY 2200 per t, with water 15%,

up CNY 40 per t. In Dalian, price of corn

trimming is CNY 2080-2100 per t. In Guangdong

Harbour, the price of high-quality aged corn is

CNY 2220-2240 per t. In Qingdao, eel feed

manufacturers‘ purchase price of new corn is

CNY 2080-2090 per t. In Shanghai, the latest

arrival price of the new corn from Northeastern

China is about CNY 2180 per t or above, keeping

unchanged.

(Continued in next column)

November 17, Dalian corn fell sharply (Contd)

Operating Suggestions: Due to the continuous

decline of the surrounding market, the price

control measures on agricultural products to be

released by the government and the severe

punishment on the speculation and hoarding

behavior of agricultural products (especially

cotton and maize), the market panic appears again

and price of Dalian corn will further slide.

Right now, the price in the spot market continues

to rise, which will limit the downward adjustment

of corn in Dalian. In medium and long term, corn

market fundamentals remain strong. But in

short-term, dragging by the surrounding

environment, along with changes in policy, the

market may oscillate to lower. The proposed

operation is to sell when the market rallies in

short-term, and pay attention to the downside

2250 line support. (82158.com 18 November

2010)

Price trend of the recent situation in Jilin Maize In Jilin Province, the climatic changes has

resulted in fluctuations in maize price. Huanglong

and COFCO Biochemical Gongzhuling company

listing price of corn is still CNY 1 800 per t, only

to maintain the volume on the acquisition of

hundreds of tons. In Jilin area, corn prices are

rising. The local price of corn deep processing

enterprises are as follows: Medium CNY 0.76 per

kg, about 30% water, the theoretical calculation of

the normal parity dry off the cost of CNY 1920

per t, the acquisition of the amount of less than

normal.

Jilin Dehui region's new corn prices remain

strong, the local price of corn deep processing

enterprises to medium CNY 0.91-0.93 per kg,

between about 14% water, the purchase price

remained firm, the acquisition of the amount of

less than normal. (Continued on next page)

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Price trend of the recent situation in Jilin Maize (Contd)

Jilin Nongan Maize offer stable. Offer individual

traders in the CNY 0.75-0.76 per kg, between

25-27% moisture, farmers reluctant sellers

psychological presence, coupled with the recent

rain and snow weather and transportation, the

acquisition of less. In this case, the new season of

maize in Jilin is expected to continue to delay the

market. (82158.com 17 November 2010)

Bio-plastic manufacturers industrial R&D Speed News of the new network in the world states that

the use of bio-plastics is still accounted for only

1% of 230 mio t. But with regard to raw materials

for renewable bio-chemicals, new plastics will

soon be universal. Some biodegradable plastics

such as polyethylene lactic acid (PLA), poly-

hydroxy alkyl esters (PHA) and starch-based

blends are used by consumer goods, packaging

and food service industry for more applications.

Analysts pointed out that the demand is increasing

for consumer goods on bio-based plastic products,

these new demands are prompting manufacturers

to develop the existing production from renewable

raw materials, plastic or some new technology.

Some renewable chemicals company has targeted

up to 1.3 trillion dollars (about 933 bio euros) in

the global polymer market and raw materials to be

used are succinic acid, acrylic acid, levulinic acid,

sorbitol, ethylene, ethylene glycol, butanediol,

adipic acid, furan, propylene glycol and glycerol.

Netherlands-based specialty chemicals company

DSM and starch derivatives producer Roquette of

France has planned to set up various joint venture

owned 50% of Reverdia company, from the PBS

production of bio-based succinic acid derivatives.

(Continued in next column)

Bio-plastic manufacturers industrial R&D Speed(Contd) Lower cost of petroleum-based plastic substitutes,

demand has become the key to the development

of renewable raw materials. Many renewable

chemicals company in the United States in

September, held in Boston, Massachusetts,

bio-based chemicals that the eastern summit, to

survive in the market, renewable chemicals,

particularly in the cost of plastic must be less than

traditional plastic.

European Bioplastics Association, said the

conventional petroleum based plastics are still

relatively cheap, but the bio-plastics in the next

few years will be applied to more sectors. In the

field of consumer electronics and automotive,

bio-plastics huge potential applications, if some of

the bottlenecks can be a breakthrough product is

the price of bioplastics and conventional plastics

can be achieved a considerable level.

Durable plastic downstream users are waiting for

the new industrialization of renewable-based

plastic. After years of development, the cost of

biodegradable plastics industry is constantly

reduced. U.S. manufacturer NatureWorks PLA

resin production company Ingeo has already

reached a certain size, cost and performance can

be comparable with petroleum-based plastics.

(ccin.com.cn 3 November 2010)

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Vietnam The situation of production and consumption of cassava in Vietnam and the world

In Vietnam, cassava has quickly shifted from food

crops to cash crops with high yield and cassava

production increased rapidly. In 2008, China had

produced a million tonnes of ethanol and

imported cassava from neighboring countries.

In Thailand, many ethanol plants using cassava

was built in 2008. Indonesia plans to use cassava

to produce ethanol mixed into gasoline at the rate

of 5% mandatory starting in 2010. Countries such

as Laos, Papua New Guinea, the island Phigi,

Nigeria, Colombia and Uganda are also working

on testing for ethanol production.

Area, yield and production of cassava in the world

has steadily increased from 1995 to present. In

2008, world cassava production reached

238.45 mio t of fresh compared to 223.75 mio t in

2007 and 161.79 mio t in 1995. Most cassava

producing countries are Nigeria, followed by

Thailand and Indonesia. Countries with the

highest yield of cassava India (31.43 t per ha),

followed by Thailand (21.09 t per ha), Vietnam

ranks tenth on cassava production in the world

(9.38 mio t).

In Vietnam, cassava is cultivated in most

provinces of the agro-ecological zones. Most

cassava area in the northern and central coast

(168.8 thousand hectares). Highlands is the largest

cassava producing areas of the country Monday.

In 2008, the floor area of the Highlands to reach

150 thousand ha, average yield of 15.7 t per

hectare production of 2.35 mio t, lower than the

South East (23.74 t per ha and to some 69 mio t).

(Continued in next column)

The situation of production and

consumption of cassava in Vietnam

and the world (Contd)

Seven months of the year, the country exported

2.66 mio t of dried cassava (manioc alcohol) and

starch turnover reached 406 mio, up 4.4 times in

volume, 2.8 times the turnover over the same

period last year. With the above results, the

Ministry of Industry and Commerce has ranked

cassava in major export commodities in 2009.

When the State program operated NLSH, ethanol

plants will consume a huge amount of cassava.

Expected in 2012, ethanol production will

consume 16% of cassava production in 2015

accounted for 35%, 41% in 2020, up 48% in

2025.

The calculations are based on projected gasoline

demand by 8.5% per annum in 2012 to apply E5,

E10 application in 2015, cassava production

increased 5% per year. The formation and

development of the industry structure changed

NLSH market of Vietnam in ways that are

beneficial to agriculture and rural aspects:

With more than 50% of production is exported,

they are put into ethanol production, then put

petrol, oil consumption in the domestic market,

cassava will be the input and the first stage of the

value chain NLSH market, exist parallel to the gas

market, oil for domestic needs. In the value chain

to new markets, the cassava is used as raw

materials for ethanol processing plants, which are

then mixed, and retail distribution to consumers in

the country.

Thus, cassava products will no longer depend on

supply and demand and price fluctuations of

foreign markets. Instead of agricultural products

will enter the market of domestic energy

consumption and steady growth every year.

(Continued on next page)

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The situation of production and

consumption of cassava in Vietnam

and the world (Contd)

The governments of Thailand and the Philippines

impact on agricultural production through the

operating cost formula NLSH (Biofuels) market

petroleum to stabilize the prices of raw materials

from agriculture (sugar cane price and cassava).

This will be an important tool and easy to

implement State policies to support agriculture

and rural farmers.

NLSH development will increase investment in

regional and remote areas of rural Vietnam.

Dependence on raw materials from plants NLSH

will motivate building close links between

factories and farmers, promoting the interests of

both parties.

While implementing the ethanol project, the

National Oil and Gas Corporation of Vietnam has

advocated the development of stable material on

the basis of support for farmers to ensure stable

income.

Ministry of Agriculture and Rural Development

Conference sustainable development of cassava

(July 12-2009) has also implemented the model

direct link between factories and farmers NLSH

have the support of governments and scientists

agricultural education.

Thus, ethanol can see the program as an

opportunity to realize the objectives of

agricultural development, rural livelihood and

rural poor, improve the added value of

agricultural products and strengthen links Union

workers and farmers. (cropsforbiofuel.ning.com

12 November 2010)

Increase cassava production for export: Not necessarily happy

Sources from the Ministry of Trade and Industry

said that exports of cassava and cassava starch to

the water market in 10 months of 2010 reached

418 mio dollars to 65kt, up 78% on prices

compared with the same period last year.

However, these types of cassava exports fell 53%.

Director of import and export, said Phan Van

Chinh, now the price of Vietnam's cassava exports

depend heavily on fluctuations of world market

prices. Therefore the growth due to price

fluctuations as in the recent past is not the

direction of sustainable development.

In 2009, Vietnam has exported 3.3 mio t, worth

574 mio dollars. Ten months of this year wearing

the export situation is also achieved 418 mio with

65kt. In which more than 90% of production is

exported to China, with export value is

completely dependent on foreign countries. This

result is because the Chinese market is gradually

restored. This is a very significant figure in the

context of difficult market today.

According to estimates by the Ministry of Trade

and Industry, with a total area of about

510 000 ha, average yield of 18.7 t per hectare,

this year's total national cassava production is

estimated at about 8.1 to 8.6 mio t.

(Continued on next page)

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Increase cassava production for export: Not necessarily happy (Contd)

Currently, Vietnam is ranked tenth in the world

for production of cassava (7.71 mio t). According

to Nguyen Tri Ngoc, Director of Crop Production

Ministry of Agriculture and Rural Development

said: Cassava is a crop that agriculture was not an

encouraging development, but the cassava

growing area for several years now increasing at

an alarming rate.

In 2005, the cassava growing area of the country

at 270 000 ha, has now soared to nearly 2 times –

510 000 ha. Calculated, to exceed 135 000 ha.

compared with cassava development planning. In

particular, the highest increase with 16 000 ha

Gia Lai, Dak Lak near 6 000 ha, Kon Tum on

5 000 ha. In essence, this growth is not

encouraging.

Vietnam now has about 60 processing plants

cassava industrial scale (capacity 3.8 mio t of

fresh cassava tubers). Each year, Vietnam now

produces about 800 to 1 200kt of cassava, of

which over 70% of exports and nearly 30% of

domestic consumption.

Cassava export products of Vietnam are mainly

starch, cassava and cassava flour. The main

markets are China, Taiwan, Japan, Singapore,

South Korea. Investment processing plant bio-

ethanol is a large potential user. (tamnhin.net 4

November 2010)

Brazil Plastic of maize, sugar cane and seaweed

The demand for biodegradable plastics is

growming in brazil. The country imports 500 t per

year of PLA- an extracted polyester of the starch

of the maize that serves of base for the production

of the bioplastics. It is considered as world-wide

giants of the sector.

The Cereplast, that has headquarters in the United

States and produces 48kt of PLA per year, studies

to install a plant in Brazil, of eye in the increasing

demand for the product, that is used to make

packings, staple fibres of clothes and carpetings

and dismissable material, among others

applications. The PLA emits 1.3 kilo of carbonic

gas for each kilo of produced plastic, against

3.2 kilos produced for the plastic of PET bottles,

according to studies carried through in the

exterior.

Reinaldo Azevedo, representative of the Cereplast

in the Country, guarantees that the company is

intent to the Brazilian demand and to the maize

production, sugar cane-of-sugar, and soy of the

Country and also is talking with seaweed

producers of Ubatuba, for possible use of this raw

material. (biopol.free.fr 10 November 2010)

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Brazil Oil and Novozymes Join Together to Develop Cellulosic Ethanol Petrobras and Novozymes today reached an

agreement to jointly develop a new technology

path of producing cellulosic ethanol based on

bagasse. The agreement includes the exploitation

of enzymes and enzymatic

hydrolysis of bagasse cellulose ethanol production

process.

Brazil's sugar cane cultivation and processing is

well developed, with rich bagasse resources,

which provides a sufficient supply of raw

materials for the development of cellulosic

ethanol industry. As the world's largest sugarcane

producer, Brazil produced 600 mio t molasses per

year from sugar cane, can be converted to

27 bio liters of ethanol (the equivalent of

70 mio gallons). It is predicted that the maturation

of cellulosic ethanol industry will enable Brazil to

increase 40% ethanol yield without adding the

sugarcane planting area.

Novozymes has been engaged in the enzymatic

hydrolysis of bagasse-based ethanol. Enzyme can

break down plant fibers, including corn stalks,

wheat straw, wood chips, bagasse, etc., the sugar

broken down can be fermented into ethanol. As

the world's largest enzymes manufacturer,

Novozymes R&D for the production of cellulosic

ethanol enzyme products since the year 2 000, has

twice obtained the total amount of up to

2 930 mio in project development assistance of

U.S. Department of Energy.

On the strength of the technology reserves in the

field of enzyme developing, Novozymes

successfully decreased the cost of the required

enzyme of producing cellulosic ethanol by about

80% for in the past 2 years, to the current 50 cents

per gallon.

(Continued in next column)

Brazil Oil and Novozymes Join Together to Develop Cellulosic Ethanol (Contd)

Novozymes is now cooperating with the world

biofuels industry leaders to accelerate the process

of cellulosic ethanol production technology

development and implementation, and to make a

further reduction of the cost of enzymes. Since

2006, Petrobras began to investigate the process

integration of ethanol out of bagasse based on the

biochemical methods. (finance.ifeng.com 15

october 2010)

Brazil's ethanol industry is driving in the fast lane

This year, because of the climate change, the

sugar price is rising. As well as the number of

flexible fuel vehicles (FFV) in which the high

percentage of ethanol blended fuels can be used

continues to increase, Brazil's ethanol industry,

the world's largest ethanol exporter, is walking out

of the shadow of the financial crisis and

accelerating the pace of cooperation and

acquisitions. A number of alcohol as raw

materials to produce green polyethylene project is

also underway.

Analysts said because of the boost in sugar price,

the price of ethanol is becoming higher and

higher. Earlier this year, it hit a 30-year high. The

profits of ethanol refinery factories rebounded

sharply. This year, the abnormal dry weather

continued in the main producing areas of

sugarcane in southern Brazil, which caused

serious damage to the production of sugar cane.

Therefore, the price of ethanol is rising.

According to data from the Brazilian Sugarcane

Industry Association (UNICA), from April to the

middle of September this year, the sugar export

revenues of Brazil reached USD 6.8 bio, an

increase of 64% comparing with that of previous

year.

(Continued on next page)

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Brazil's ethanol industry is driving in the fast lane (Contd)

Cosan, the largest sugar and ethanol producer in

Brazil, estimates that the global surplus of sugar

from 2010 to 2011 is 4 mio t, well below 7 mio t

forecasted by the company in the beginning of

this year. Cosan claims that, because supply is

tight, the international sugar prices will remain

high, to be higher than the 30 cents per pound.

According to UNICA's latest statistics, due to

high sugar prices and growing ethanol demand,

the demand for Brazilian ethanol kept some

growth in the stability this year. From April to

mid-September, the demand for ethanol reached

11 bio liters- 2 bio liters per month, increased by

25% comparing with 1.6 mio liters per month in

2008. The profits of the companies have increased

significantly.

Accelerating the pace of integration

Market participants pointed out that, influenced

by the financial crisis before, a lot of small and

medium-sized enterprises in ethanol production

and distribution in Brazil closed down. After this

round of rising prices, the reshuffle pace of

Brazil's ethanol industry will be accelerated. In

the coming years, the business model of Brazil's

ethanol industry will be changed from the family

group into a multinational-holding corporation.

According to the incomplete statistics from the

information research firm Global Futures FO

Licht, in 2009 alone, there were 60 restructuring

in Brazilian ethanol companies, involving 100

sugarcane processing plants.

Pliny, the president of Brazil's ethanol and sugar

consulting firm Datagro, estimates that in the next

5 years, the top 10 domestic ethanol groups in

Brazil's will hold 45% of 600 mio t of sugarcane

market.

(Continued in next column)

Brazil's ethanol industry is driving in the fast lane (Contd)

Itau BBA, a investment bank in Brazil, also

forecasted earlier this year that, by 2015, the top 5

will account for 40% of the national total

production. While in 2005 and 2010, the top 5

ethanol groups in Brazil only held 12% and 27%

market share. After taking over Santelisa, which

is a native company of Brazil, the French trade

giant Louis Dreyfus became Brazil's

second-largest ethanol group. While the largest

one is the energy and chemical giant Shell, after

announcing earlier this year, financing

USD 12 bio to cooperate with Cosan. French

sugar group Tereos as well as Bunge, a leading

enterprise from U.S, are also the ranks of large-

scale ethanol producers in Brazil.

Petrobras also seized the opportunities to

accelerate the expansion in the bio-ethanol

industry. In December 2009, the company spent

84 million USD to acquire 40.4% of the share of

Total Agroindustria Canavieira. Most recently, it

signed a cooperation agreement with another

ethanol company.

Currently, the ethanol production capacity of

Petrobras is close to 900 million liters per year. In

addition, Petrobras is planning to cooperate with

the Japanese companies Mitsui Group and

Brazilian Calmage Correa group, to spend

USD 1.1 bio to build an ethanol transportation

pipeline system, which is 542 km long, with the

transportation capacity reaching 129 bio liters of

ethanol per year. According to the latest

investment plan, Petrobras also plans to invest

3.5 bio in the next four years in the field of

bio-fuels. By 2014, its ethanol production

capacity will be tripled, to become the main

exporters of ethanol in Brazil.

47% of Brazil's energy comes from renewable

energy sources, of which 18% is from ethanol

produced by sugarcane.

(Continued on next page)

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Brazil's ethanol industry is driving in the fast lane (Contd)

Major petrochemical companies are producing

polyolefins by using ethanol from sugarcane as

raw material. In the end of September 2010, the

green ethylene plant of Brazil's largest

petrochemical company Braskem put into

production, which produces 200kt per year and is

the world's first ethylene production unit using

ethanol from sugarcane as the raw material.

Braskem has also decided to build a

polypropylene unit with the production capacity

of 10 mio t per year by using ethanol from

sugarcane, which will be put into operation in

2013.

Dow Chemical Company, Solvay in Belgium and

Brazil Unigel have expressed their interest in

Brazilian green chemical projects using ethanol as

an alternative raw materials. Solvay plans to use

ethanol as raw materials to produce polyvinyl

chloride, and Dow Chemical plans to build a

green polyethylene plant with the production

capacity 350kt per year. (ccin.com.cn 12

November 2010)

Thailand Rice harvest could be down 20%

This year's rice production is expected to drop by

about 20% due to the massive flooding in the

country, Thai Farmers Association president

Prasit Boonchoey said on Thursday. Mr Prasit

said the country usually produces about 10 mio t

of rice paddy per year. The extensive flood

damage to rice fields is likely to cut the crop by

about 20%.

The drop in production would not cause shortages

of rice, either for domestic consumption or export,

because the country still has a considerable

amount of rice in stock. (Continued in next

column)

Rice harvest could be down 20% (Contd)

Mr Prasit said rice prices are still in a favourable

direction. The price of paddy is currently

9 000 baht per t, up from 8 500 baht, due to

concerns over production both inside the country

and abroad, since other rice-producing countries

including Vietnam, India and Pakistan have also

been hit by natural disasters.

Therefore, the price may rise to as much as

10 000 baht per t, but not as high as 15 000 baht

as some people may hope, he said.

Mr Prasit said the government's plan to provide

financial relief for flood-hit farmers at the rate of

2,098 baht per rai was good, but authorities

should watch out for people trying to make

dishonest gains from this measure.

(thairiceexporters.or.th 11 November 2010)

First price index for rice industry launched

Kasikorn Research Centre has launched the

country‘s first rice index to reflect prevailing

market conditions. The KR Price Index: Rice is a

weighted calculation based on rice varieties,

incorporating prices through the entire supply

chain including growers, mills and exports, and

comparative prices among rivals, including

Vietnam and the United States.

KResearch manager Paka-on Tipayatanadaja said

yesterday that 2005 was the index‘s base year.

Clearer world and domestic rice situations

through these indices will allow the government

to formulate its rice stock policy better, and

millers and farmers to have clearer pictures of

business and planting conditions, said Wiwan

Tharahirunchote, KResearch‘s Executive

Chairman.

(Continued on next page)

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First price index for rice industry launched (Contd)

The indices for the selling price of growers and

exports were at 193.55 and 143.79 in October, up

28% and 12.5%, respectively, from the same

period last year. The rises came from limited

world rice supplies and rising demand for rice

after crop damages, due to volatile weather

conditions, in the world‘s two major rice

producers, Pakistan and China, Paka-on said. The

index for the wholesale price at mills also rose

12.4% to 171.22 in October, because of higher

purchases by exporters.

In October, Vietnam‘s rice was priced higher than

Thailand‘s after it increased minimum export

prices by three times this year, Paka-on said.

The world and domestic rice prices could rise

further during the rest of this year thanks to rising

global demand and falling world production, due

to fluctuating weather conditions, she said.

Prices of the country‘s fragrant and glutinous rice

could enjoy their upward trend throughout next

year, while the white-rice price could continue to

rise only in the first quarter, she said.

(thairiceexporters.or.th 11 November 2010)

Taiwan

Researchers develop biodegradable seedling pot

A Tatung University research team in partnership

with local Grace Biotech Corp. has developed a

seedling pot made out of 100% biodegradable

plastic that breaks down completely within six

months of being buried in the ground. The

biodegradable plastic material made primarily out

of corn starch has already received environmental

certification in the European Union, Japan and the

United States.

(Continued in next column)

Researchers develop biodegradable seedling pot (Contd)

Bags made with the plastic material, developed by

a team led by bioengineering professor C. Will

Chen, have already been sold abroad for the past 5

years.

A notable feature of the biodegradable seedling

pot is that the material leaves behind no toxic

residue and provides nutrients to the seedling

when it breaks down, thereby increasing the

germination rate. Furthermore, the pots can be

tailor made to match the growth period of specific

plants. Patents applications for the pot have been

filed in several countries, including the

United States and Japan, and sales to Europe

began in September.

The biodegradable pot is priced at 1.5 times that

of conventional seedling pots, but costs are saved

as seedlings do not have to be transplanted into

new pots as with conventional pots. Also, the pots

are planted in the ground with the seedlings,

thereby cutting manpower costs and reducing the

chance of damage to the seedlings. (SB)

(taiwantoday.tw 24 November 2010)

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Czech Republic

Starch from genetically-modified potatoes will be produced in the Czech Republic

According to Czech Radio, Czech Republic was

the first in the world which started to produce

genetically-modified starch. Starch factory in the

Czech Godishkove is the the world's first

company to produce starch from genetically

modified potatoes.

Such starches are not allowed in food, but perhaps

its use in the manufacture of glue, paper and

construction, says the radio station. The European

Commission in March 2010, allowed to grow

genetically modified potatoes in the EU. Prior to

this, in Europe, only corn was allowed of all

genetically modified foods. (news.rambler.ru 26

November 2010).

South Korea South Korea has purchased 110kt of maize

According to market operators, a leading

manufacturer of feed from the South Korean

company Nonghyup Feed, the last tender

contracted to import 110kt of corn arbitrary origin

with delivery between 20 and 31 March 2011.

The first 55 t of goods to the importer has

purchased the company ADM costs USD 1.95 per

bushel for the March futures on the CBOT.

An equivalent batch of goods worth USD 1.94

per bushel for the March futures on the CBOT

provided STX Corp. Recall that NOFI also

planned to purchase a lot of grain to supply up to

5 April, but all proposals for this tender was

rejected. (apk-inform.com 8 November 2010)