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SUSTAINABILITY

Securing sustainable soya COVER.indd 1

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T HE B USI NE SS MAG AZ IN E FOR TH E OILS AN D FATS IN D UST RY

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CONTENTS FEATURES VOL. 30 NO.7 AUG/SEP 2014

SUSTAINABILITY EDITORIAL: COVER: VEGETABLE OILS ARE OFTEN USED IN ADDITION TO, OR IN PLACE OF, DAIRY FATS IN ICE CREAM P28

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NEWS

COMMENT

Heavy burden

s severe obesity a disability? This view may be the route the EU is heading down following a European ruling in July that excessively fat staff have a disability which must be accommodated in the workplace. Maybe this means providing them with larger office seats, plus-size uniforms, lifts, duties that involve less walking or priority parking close to the workplace entrance. The ruling comes after a Danish childminder who weighed more than 160kg was dismissed by his local city council in 2010 after reportedly being unable to bend down to tie up a child’s shoelace. Karsten Kaltoft argued that his weight was one of the reasons he lost his job and it amounted to unfair discrimination. The advocate general of the European Court of Justice (ECJ), who advises the ECJ, ruled that “if obesity has reached such a degree that it plainly hinders participation in professional life, then this can be a disability”, the tip-off point being a body mass index (BMI) of more than 40. Whether the disability is self-inflicted is irrelevant, he says. The advocate general’s ruling will now go for fuller consideration before to the ECJ, which usually adopts his opinion. ECJ judgements have force across the EU. The ruling throws up some interesting issues. If you are merely fat, you may still be sacked but if you are severely obese, then you will be protected under the Equal Treatment Directive and it will become almost impossible for employers to fire you. Will this not simply lead to employers shying away from hiring overweight people in the first place, for fear they will become severely obese? How much freedom should companies have to employ people who reflect their image, as in health clubs or modelling companies which presumably would not want an overweight receptionist fronting their office? Shouldn’t companies have the right to dismiss people they feel are unable to perform a job effectively? And, in a wider context, there are those who would argue that people with self-inflicted illnesses or disabilities (for example, through smoking or over-eating) should bear some of the responsibility and costs for any special equipment and health care they require. Certainly, with the growing obesity epidemic in the developed world, the impact for employers and staff in the EU of any formal ruling in this instance would be profound. In the USA, several recent cases have already resulted in dismissed workers winning claims that they were discriminated against for being obese, reports the Guardian. In one case, a worker in Texas who weighed more than 305kg received US$55,000 in compensation for losing his job. In the UK, about 4.5% of the population has a BMI over 40 and some 25% of adults are said to be obese. It is estimated that, if current trends continue, half the UK population will be obese by 2050. As an opinion piece in The Times says, rather than showing you the door for being too large to do your job, your employer may soon be obliged to make it wider. Serena Lim

Kulim to sell stake in New Britain Palm Oil to Sime Darby S

ime Darby Bhd has been selected as the preferred party to purchase Kulim (M) Bhd’s equity interest in London-listed New Britain Palm Oil Ltd (NBPOL). On 1 August, The Star reported that Sime Darby was finalising the terms of the transaction, while Kulim had sent a letter to NBPOL and the relevant government authorities in Papua New Guinea (PNG) to inform them of its intention to sell its entire equity stake in NBPOL to Sime Darby. Following a competitive bidding process, eight companies expressed interest in purchasing NBPOL, including Felda Global Ventures Bhd (FGV), Singapore’s Wilmar International and Malaysia’s Sime Darby, IOI Bhd and KLK Bhd. Kulim said it wanted to dispose of its stake because, although it is the single largest shareholder in NBPOL with 48.97%, it was unable to exert management control over the plantation group. NBPOL is managed by a group of professional managers that have a stake in the company through Pacific Rim Plantations Services Pte Ltd. Pacific Rim has a 4.49% stake

in NBPOL while the West New Britain Provincial Government has an eight percent stake in the plantation company. Kulim had wanted to raise its stake in NBPOL by 20% to about 69% through a corporate exercise announced in July last year, but this was refused by independent directors, The Star report said. Kulim finally aborted its plans after the PNG market regulator prevented it from taking further steps to increase its stake in NBPOL. FGV was publicly seen as the forerunner for NBPOL as it was the first company to confirm its interest, but Wilmar was the group tipped to win. Sources have said Sime Darby was chosen because it stood a better chance to get the PNG government’s approval. ! NBPOL announced in July its interim results for the period ended 30 June, including a revenue increase of 9.5% to US$338.9M in the first half of the year. The company processed 1.3M tonnes of fresh fruit bunches (FFBs) and produced a total of 290,415 tonnes of crude palm oil (CPO) and 29,339 tonnes of palm kernel oil (PKO).

Olive oil skirts Russian import ban

live oil is not among the 52 categories of imported products from Australia, Canada, Europe, Norway and the USA that Russia has banned in response to sanctions related to the Ukraine conflict, reports Olive Oil Times. The Kremlin announced that it would ban ‘agricultural produce, raw materials and foodstuffs originating in countries that have decided to impose economic sanctions on Russian businesses and individuals for one year, which includes meat, fish, milk, dairy products and many processed foods. The White House warned in June that Russian President Vladimir Putin’s retaliatory ban on US agricultural imports would only hurt his own country’s economy, The Hill reported. US exporters shipped US$1.3bn in food and agricultural products to Russia last year, the United States Department of Agriculture (USDA)’s Foreign Agricultural Service told The Associated Press. “Retaliating against Western companies or countries will deepen Russia’s international isolation, causing further damage to its own economy,” White House spokesman Shawn Turner was reported to have said.

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NEWS

Cargill to buy chocolate business from Archer Daniels Midland

rcher Daniels Midland Co (ADM) announced in September it had agreed to sell its global chocolate business, which includes the Ambrosia chocolate plant in Milwaukee, for US$400M to Cargill Corp, Journal Sentinel reports. The transaction was expected to close in the first six months of 2015, Chicago-based ADM said. Included in the sale is the Ambrosia cocoa processing plant, also in Milwaukee. Other operations included in the sale are in Belgium, Canada, England, Germany and Pennsylvania. At the time of closing, ADM said it would

us to redeploy capital for higher-return investments,” chairman and CEO Patricia Woertz said in a statement. Cargill said it would merge ADM’s chocolate business with its own chocolate operations. The acquisition would broaden Cargill’s chocolate operations in Europe and particularly its production in North America, the company said. “The combined business will be able to offer enhanced capabilities and broader product ranges to support the long-term needs of the chocolate market,” Cargill said.

end cocoa processing operations in Hazleton, Pennsylvania, while other operations would remain open. Earlier this year, ADM dropped plans to sell its entire cocoa business as prices for the beans improved. Instead, the company was reported to have said it would try to sell the chocolate operations. “As part of our ongoing portfolio management, we considered several options to strengthen the returns of this part of our business. The sale of the chocolate business helps improve ADM’s returns and will allow

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Biofuels Issue

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July 2014 ! Vol 30 No 6 www.oilsandfatsinternational.com

March 2014 ! Vol 30 No 3 www.oilsandfatsinternational.com

USA

Fuelling the economy

FAR EAST

Indonesia’s “master stroke”

FEEDSTOCKS

Halophytes: a biofuel breakthrough

April/May 2014 ! Vol 30 No 4 www.oilsandfatsinternational.com

WORLD

April/May 2014 ! Vol 30 No 4 www.oilsandfatsinternational.com

Facing challenges

CASTOR OIL

FEEDSTOCKS

Camelina: gold rush

SOUTH AMERICA

Second-generation spotlight

Deadly opportunity

MARGARINE & SPREADS

OILSEEDS OLIVE OIL

Bringing butter back

TRADING & PRICE FORECASTING Industry faces uncertain times

Maintaining standards Peanut power

AFRICA

MARGARINE & SPREADS Bringing butter back

MIDDLE EAST

TRADING & PRICE FORECASTING

Staying afloat

Industry faces uncertain times

The emerging frontier Cover July.indd 1

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Oils & Fats International is delighted to announce that, from this issue, we will offer a digital version of the magazine. We believe this will add value for our advertisers and provide our readers with an additional way to read about the latest developments in the oils and fats industries. Go to www.ofimagazine.com to access our digital issue.

Cargill’s Ukraine ‘0’ grams claim still contains trans plant seized, ULF New York Department of Health and Mental Hygiene study claims that people could be consuming more trans fat than they think, as a A halts IPO plans result of misleading food labels, LiveScience reported in September.

argill announced in July that its sunflower crushing plant in the eastern region of Donetsk, Ukraine had been seized and occupied by an unidentified armed group. The company has been operating in Ukraine for 21 years but the facility has been shut since 4 July. Meanwhile, UkrLandFarming Plc (ULF), the country’s biggest farming company, has halted plans for an initial public offering (IPO) due to political violence. CEO Oleg Bakhmatyuk said the plan had been to sell 20-25% of shares in the company in both Hong Kong and London but “not a single investor will invest in Ukraine now”. However, he added there was a chance the IPO could happen by the end of 2015 if the situation in Ukraine improved.

Researchers examined 4,340 top-selling packaged foods and found that nine percent contained partially hydrogenated oils (PHOs), the main source of trans fats. But, of those foods, 84% claimed on their packaging to have ‘0 grams’ of trans fats. The amount of trans fats in these products varied from small traces to almost 0.5g/serving of trans fat, the researchers said. Under the rules of the Food and Drug Administration (FDA), foods that contain less than 0.5g/serving of trans fat may be labelled with ‘0g’ of trans fat. “This labelling is cause for concern because consumers, seeing the ‘0g’ trans fat on the nutrition facts label, are probably unaware that they are consuming trans fat,” the researchers wrote in the study, published in Preventing Chronic Disease journal. Trans fat is a specific type of fat that is formed when hydrogen is added to liquid oils to turn them into solid fats, the report said. The FDA has tentatively determined that PHOs are not ‘generally regarded as safe’ for consumption. If the FDA makes a final determination, trans fat would become an illegal food additive. People who consume trans fat may be at higher risk from heart disease, stroke and diabetes, studies have suggested. The food products examined in the study ranged from cookies to salad dressing and canned soup. A more detailed examination of the potential trans fats ban will be covered in OFI’s upcoming October/November 2014 issue.

IN BRIEF INDONESIA: Olam International has unveiled US$61M plans to set up a cocoa plant in Indonesia, agrimoney.com reported in June. The trader said it expected to open the new 60,000 tonnes/year facility in early 2016. The plant will be Olam’s fifth cocoa processing site, the first in Asia and a “hub” for the region. USA: The US Food and Drug Administration (FDA) ruled in June that claiming a food or dietary supplement was “high in” or “an excellent source of” DHA or EPA would be prohibited as of the next labelling compliance date of 1 January 2016, Lipid Technology reports. The ruling is not specific to this wording, but covers all similar statements. The rationale behind the decision is that there are currently no daily reference values for these fatty acids in the USA, from which such claims could be derived. COLOMBIA: Palm oil production in the country was expected to climb to record levels this year, as trees planted three years ago start to bear fruit, Oil World said in August. Output of palm oil would climb to 1.15M tonnes in 2014 from 1.04M tonnes last year, the report said. Surplus production meant exports could jump 30% to 240,000 tonnes, while demand from the domestic biofuel industry was “largely exhausted for the time being”, it said.

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NEWS

IN BRIEF NORWAY: Global chemical company BASF has announced a series of measures aimed at streamlining production within its Nutrition and Health division, Lipid Technology reported in June. The company will sell its Norwegian omega-3 facility at Brattvåg and will instead focus on the production of highlyconcentrated EPA and DHA at other sites. SOUTH AMERICA: The Amazon Soya Moratorium is due to end on 31 December 2014. Two programmes – the Rural Environmental Registration (CAR) and the Environmental Regularisation Programme (PRA) – will continue to protect the Amazon Biome. GERMANY: Speciality chemicals company Clariant was recently awarded the Roundtable on Sustainable Palm Oil (RSPO) Mass Balance supply chain certification for its plant in Gendorf, in order to meet the increasing demand for sustainable certified palm oil-based ingredients from customers in the personal care and home care sectors. Gendorf is the first of Clariant’s plants to be RSPO-certified. USA: Cargill has launched a new oil blend, ‘IngreVita’, aimed at increasing the omega-3 content of manufactured products, Lipid Technology reported in August. The oil is a mixture of high-oleic canola oil and fish oil with added antioxidants that serves as a drop-in replacement for other oils. It contains 32mg/serving of EPA and DHA. USA: Weight loss supplement producer ReBody has been granted a patent for its SafSlim safflower oil formulation. The technology covered is an emulsion of safflower oil – of between 70-80% linoleic acid content – and other ingredients. The supplement is promoted as increasing metabolism and reducing trunk fat mass.

Indonesia looks to restrict foreign plantation ownership

n August, Reuters reported that Indonesian lawmakers were looking to restrict foreign ownership of plantations to no more than 30%, as the top palm oil producer tries to maximise land usage, protect indigenous people and tighten environmental controls in the sector. A new draft bill drawn up by members of Indonesia’s parliament aims to open up the sector to smaller, local players. But it would also discourage foreign investment just after the nation has set an ambitious goal of raising its palm oil output by a third to 40M tonnes by 2020. Foreign ownership of Indonesian plantations is currently set at a maximum of 95%. As well as simplifying Indonesia’s complex rules on land use, the new proposed law may also make it easier to prosecute businesses responsible for Southeast Asia’s annual ‘haze’ season. “It’s a bombshell and has snuck in under the radar and, as far as I know, without consultation with the industry,” a Jakarta-based financial advisor, who wished to remain anonymous, told Reuters. Foreign plantation firms currently operating in Southeast Asia’s largest economy include

Singapore-listed Golden Agri-Resources and Wilmar International, Malaysia’s Sime Darby Bhd and Cargill. Limiting foreign ownership in palm oil firms to 30% would hinder the flow of overseas capital needed to develop and modernise the industry, said Fadhil Hasan, executive director at the Indonesian Palm Oil Association. Indonesia’s parliament is looking to finish discussions on the draft bill with the government soon and expects it to be approved before the new administration is in place, Gamal Nasir, director general of plantations at the Agriculture Ministry told Reuters. If the draft bill becomes law, it would be retroactive for companies that already own plantations, said lawmaker Herman Khaeron, vice chairman of the parliamentary committee for agriculture, forestry, fisheries and maritime. Firms would be given five years to comply with the new bill, according to a copy of the draft seen by Reuters, and those that refused to comply may face fines, temporary suspensions or the revoking of licences.

EU expects record rapeseed crop

he European Union (EU) is moving closer to a record rapeseed crop after favourable weather continued in the final weeks of the growing season and initial harvesting in major producer France confirmed good yields, Reuters reported in July. Rapeseed, like other field crops in the EU, has enjoyed favourable growing conditions that allowed successful sowing, a safe passage through winter and healthy growth in spring. In June, some forecasters predicted a record rapeseed harvest and analysts have since raised their outlook as conditions have remained good. French analysts have raised their EU forecast to 22.5M tonnes from 21.8M tonnes, further surpassing a previous EU high of 21.6M in 2009, while EU grain lobby Coceral, on 20 June, projected the crop at 22.8M tonnes, up from its March forecast of 21.1M tonnes. The European Commission (EC) is more cautious, estimating the crop at 21M tonnes, although this would still be up from 20.9M last year.

Sipef Group continues expansion

n June, the Sipef Group reported it had sold 68% of expected palm oil production volumes at an average price of US$987/tonne and was continuing to gradually place the remaining unsold palm oil volumes for the second half in the market. The company said it would continue its plans for expansion in South Sumatra, Indonesia, adding

that it now held licences for a total of 31,809ha, half of which it intended to convert to oil palm and rubber plantations. Expansion at its oil palm plantations in Hargy Oil Palms, Papua New Guinea, remained a priority, the company said. It had planted more than 1,000ha in 2013 to achieve a total of 12,387ha planted area.

Cargill receives approval for lecithin in Japan

ollowing three years of work with the country’s regulatory authorities, Cargill was granted approval in June for the use of its topcithin sunflower lecithin as a food ingredient in Japan, Lipid Technology reports. It is the first company to receive approval for this product in the country. Topcithin is derived from European sunflowers and Cargill claims it has advantages over soya lecithin in that it carries no allergen listing requirements and the commercial crop is essentially free of GM organisms, which makes it suitable for clean-label applications. ADM also announced that it would expand its soyabean processing factory in Latur, India, as well as increasing its rapeseed-handling volume at Hamburg, Germany, in order to boost its output of non-GM lecithins.

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BIOFUELS NEWS

IN BRIEF INDONESIA: State-owned energy company Pertamina issued a tender in May seeking 1.7M kilolitres (kl) of biodiesel over 2014-15 as part of the 5.3M kl it will require over the period, Platts reports. Pertamina plans to allocate 115,000 kl/year of the 1.7M kl to meet demands in Sumatra, 28,000 kl/year to Nusa Tenggara, 335,000 kl/year for some areas of Kalimantan and Sulawesi and 372,000 kl/year for some areas of Kalimantan, Sulawesi and Papua. USA: Renewable Energy Group Inc announced in June that its wholly-owned subsidiary, REG Synthetic Fuels LLC, had closed its acquisition of substantially all of the assets of Syntroleum Corp, Biodiesel Magazine reports. The assets acquired from Syntroleum include a 50% ownership interest in Dynamic Fuels LLC, which owns a renewable diesel biorefinery with a nameplate capacity of 75M gallons/year in Geismar, Louisiana, USA. REG has a separate pending agreement with Tyson Foods Inc to acquire the remaining interests in Dynamic Fuels, the report said. SWEDEN: In June, Biofuels Digest reported that flights running on biofuel had begun in Sweden, operated by BMI between Karlstad and Frankfurt, and by Nextjet between Karlstad and Stockholm. Karlstad Airport had also become the first airport in Europe to install a fixed storage tank facility for aviation biofuel. USA: The Environmental Protection Agency (EPA) has extended the compliance deadline for the 2013 Renewable Fuel Standard (RFS) and the associated deadline for submission of attest engagement reports for the 2013 RFS. The new deadlines are 30 September 2014 and 30 January 2015, respectively. EPA administrator Gina McCarthy signed the rule on 6 June.

Indonesia to miss mandate target while Malaysia delays

ndonesia is set to miss its ambitious targets on the use of biodiesel this year due to logistical and infrastructure problems, government officials and analysts said, potentially weighing on the price of palm oil, Cocommunity reported in July. Indonesia introduced a regulation last August boosting the use of palm oil biodiesel, in a move to cut its energy bill. Jakarta’s Energy Ministry raised the minimum bio content in diesel fuel used for transport to 10%, up from 3-10% previously. For the power industry, the minimum was doubled to 20%. The government has set a biodiesel consumption target in 2014 of four million kilolitres (kl), of which 1.56M kl is for subsidised power plants and nonsubsidised sectors such as mining and plantations. But, by the end of May, only 447,000kl had been

used in the subsidised diesel sector, Dadan Kusdiana, director of Renewable Energy and Energy Conservation at the Mining Ministry, told Reuters. He was unable to give data for other sectors. Kusdiana said the figure for subsidised diesel was forecast to rise to 1.34M kl by the end of the year. Meanwhile, Malaysia has delayed the nationwide implementation of its biodiesel mandate to the end of the year, Bloomberg reported Minister of Plantation Industries and Commodities Douglass Uggah Embas as saying. The B5 programme would be completed by December instead of July. The delay comes as the construction of 15 blending facilities in the states of Sabah and Sarawak – and the federal territory of Labuan in East Malaysia – were taking longer than expected.

Indonesian tariff complaint at WTO

ndonesia has officially launched a complaint against the European Union (EU) at the World Trade Organization (WTO) over anti-dumping tariffs the EU has lodged against Indonesian biodiesel imports since May last year, Biofuels Digest reported in June. In April, the WTO established a dispute panel over similar charges made by Argentina. In May, the Indonesian government said it would file an official complaint with the WTO against the EU and its anti-dumping tariffs on biodiesel imports, following Argentina seeking and gaining approval for the opening of a dispute settlement panel. Several biodiesel producers have also filed complaints directly with the European Court of Justice, the Biofuels Digest report said. In April, the WTO agreed to set up a dispute panel between Argentina and the EU regarding the latter’s anti-dumping tariffs levied on Argentine biodiesel imports. Argentina argued that the anti-dumping tariffs have effectively closed off the European market to its biodiesel. The European and Argentine representatives to the WTO in Geneva are reportedly in contact in an attempt to resolve the trade dispute without the need for the panel or further interventions.

Neste Oil, RAE sign algae agreement

este Oil and Renewable Algae Energy (RAE), a US-based biomass producer, have signed a contingent commercial algae oil offtake agreement, Biodiesel Magazine reported in July. Algae oil is one of the alternatives being researched by Neste Oil for use as a feedstock for producing NEXBTL renewable diesel in the future. Cooperation with RAE is intended to secure Neste Oil access to a cost-effective supply of industrial volumes of algae oil in the future. Implementation of

the agreement will require RAE to increase its algal oil production capacity and to comply with the requirements of biofuel legislation with strict sustainability criteria in the USA and EU throughout the production chain. RAE anticipates that it will be able to produce commercial-scale volumes of algae oil from 2016 onwards. The agreement between the two companies is non-exclusive and Neste Oil is actively looking for other partners that aim to begin commercial production of algae.

Project Liberty begins operation in Iowa, USA

roject Liberty, the USA’s first commercial-scale cellulosic ethanol plant to use corn waste as a feedstock, announced the start of production on 3 September, energy.gov reports. Once operating at full commercial-scale, the biorefinery in Emmetsburg, Iowa will produce 25M gallons/year of cellulosic ethanol – enough to avoid approximately 210,000 tonnes/ year of CO2 emissions, the report said. The project will produce cellulosic ethanol from corncobs, leaves, husks and corn stalks harvested by local farmers. Project Liberty is the nation’s second commercial-scale cellulosic ethanol biorefinery to come online. In 2013, INEOS Bio’s Indian River BioEnergy Center in Vero Beach, Florida began producing eight million gallons/ year of cellulosic ethanol from vegetative, yard and municipal solid waste. Also in Iowa, a US$225M DuPont cellulosic ethanol facility located in Nevada will start production this autumn and produce 30M gallons/year.

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BIOFUELS NEWS

Global biofuel output set to rise

lobal biofuel output should expand in the period to 2023, mostly boosted by increasing demand, higher crude oil prices and government policies, but the rise should be lower than in the past decade, Reuters reported the Food and Agriculture Organization (FAO) and Organisation for Economic CoOperation and Development (OECD) as saying in July. The United Nations (UN) FAO and OECD said in a joint report that they expected ethanol and biodiesel output to reach 158bn litres and 40bn litres respectively by 2023. “Biofuel production will expand substantially, with both ethanol and biodiesel production increasing by more than 50% through the next decade,” they said. “This represents a significant slowdown relative to the past

decade, when production more than doubled through the 10-year period from 2004 to 2013.” Debate over the benefits of biofuels has heightened in recent years, with opponents saying they contribute to food inflation by consuming feedstocks that could be used for food. OECD and FAO saw that trend continuing in the years to come with 12%, 28% and 14% of world coarse grains, sugarcane and vegetable oil, respectively, expected to be used to make biofuels by 2023. Growing ethanol use in Brazil would be linked to a mandatory 25% ethanol blending requirement in petrol, expansion of the flex-fuel industry, and import demand from the USA to fulfil its advanced biofuel mandate, they said.

Huge biofuels order from US Navy

he US Department of the Navy announced in June that at least 37M gallons of drop-in biofuels were being sought as part of its F-76 marine diesel and JP-5 shipboard jet fuel supply in the upcoming Inland/East/Gulf Coast bulk fuels solicitation released by the Defense Logistics Agency (DLA) on 9 June, Biofuels Digest reports. Bids were due by 9 July and deliveries of the fuel are to start in April 2015. The Inland/East/Gulf Coast solicitation is the navy’s single largest bulk fuel acquisitions

programme, valued in excess of US$3.5bn. Fuels can be blended in a range of 10% to 50% with conventional petroleum products, must meet all military specifications and be costcompetitive with conventional fuels. Chris Tindal, the Navy’s director for operational energy, said: “CCC funds will be available to defray additional costs of producing biofuel and biofuel blends and are being provided as a biofuel production incentive under the CCC programme to support agricultural products.”

Cosan to cut sugarcane investments

osan – the Brazilian conglomerate producer of bioethanol, sugar, energy and foods – plans to expand into gasoline and natural-gas distribution, service stations and railways over the next four years. Sugar and ethanol account for about 20% of the company’s earnings before interest, taxes, depreciation and amortisation now, down from about 73% in 2010. That will fall further after Cosan completes its US$3bn, allstock acquisition of America Latina Logistica (ALL), Latin America’s largest railway operator. “The sector is going through a very difficult phase, perhaps the worst in 15 to 20 years,” chief financial officer of the company, Marcello Martins, said, adding that Cosan was weathering the downturn better than peers because it boosted cash generation through ethanol trading.

Brazil to increase mandate to 7%

n September, Brazil approved a measure that would raise its biodiesel blend mandate to seven percent in November, Platts reports. The measure would likely ensure that Brazil remained the world’s second-largest producer of biodiesel after the USA. The report said the blend increase should help ease the

financial burden assumed by staterun oil company Petrobras to supply the local market with diesel. The approval “shows that the country wants to increase the role of biofuels in Brazil’s energy matrix,” said Leonardo Botelho Zilio, economic consultant for vegetable oil producers trade group Abiove.

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BIOTECH NEWS

IN BRIEF SOUTH AMERICA: Seed company Ceres Inc announced in July that the company would enhance its product development programmes in Brazil and expand its development activities in biotech traits for sorghum and sugarcane over the next four years. The programmes would be funded in part under the Brazilian government’s PAISS Agricola initiative. WORLD: Dyadic International Inc, a global biotechnology company, announced in August it had signed a collaboration agreement to commercialise second-generation biofuel and bio-based chemical technology with Compagnie Industrielle de la Matiére Végétale (CIMV), a pioneer in developing processes for the production of biofuels and bio-based chemicals. Dyadic will supply enzymes to CIMV’s planned 2015 demonstration plant, as well as licensing its CI technology for on-site production of enzymes at CIMV’s future commercial-scale plants. BRAZIL: A group of industrial biotechnology companies have joined forces to form the Brazilian Industrial Biotechnology Association (ABBI), which brings together companies and institutions developing and using microorganisms and their derivatives to deliver renewable products. The founding members are Amyris, BASF, BioChemtex, BP, Centro de Tecnologia Canavieira, Dow, DSM, DuPont, GranBio, Novozymes, Raizen and Rhodia. The group supports investments in R&D, capacity and training for skilled and technical labour, and laboratory infrastructure. USA: Cargill is introducing a soyabean oil made from identitypreserved, non-GM soyabeans. The oil will be refined in Cargill’s Des Moines, Iowa plant in a process certified by inspection company SGS.

Syngenta sued for corn trait rejected by China

Monsanto to receive Roundup seeds approval

argill is suing Syngenta AG, producer of the Agrisure Viptera MIR 162 corn variety, for damages stemming from China’s rejection of the genetically modified (GM) corn, which Cargill says has cost the company more than US$90M. Cargill, a top US grain exporter, has accused Syngenta of exposing it to losses by selling the seeds to US farmers before it had secured import approval from China, a major buyer. The GM variety can be found throughout the US corn supply, effectively closing the lucrative Chinese market to US suppliers, the lawsuit was reported to have said. Cargill’s filing said it was suing Syngenta for “deliberate, knowing and continuing contamination of the US corn supply with a product that it understood all along would substantially impair the US grain industry’s ability to sell corn and other commodities to buyers in China”. On 16 September, four days after Cargill filed its lawsuit, Trans Coastal Supply Co sued Syngenta with the same complaint, but including by-products used for animal feed and seeking class-

action status. The company said in court documents it stood to lose more than US$41M as exports of the ethanol byproduct distillers dried grains (DDGs), used in livestock feed, had been rejected by China. Syngenta spokesman Paul Minehart has said both lawsuits are without merit. A Syngenta press release adds: “[Syngenta] strongly upholds the right of growers to have access to approved new technologies that can increase both their productivity and their profitability.” The company explained that the MIR 162 trait was approved for cultivation in the USA in 2010 and it was commercialised in full compliance with regulatory and legal requirements. Syngenta said it had obtained import approval from major corn importing countries and had been fully transparent in commercialising the trait over the last four years. A Reuters report said that Syngenta had invested around US$200M and between five to seven years developing MIR 162 corn, which represents around 25% of the seed maker’s corn portfolio.

n August, Global AgInvesting reported that Monsanto expected to receive US approval for its Round Up Ready 2Xtend soyabean seeds, which the company claimed would “become the new global soyabean platform” by the end of 2014, with international approvals to follow in 2015. The company has sought United States Department of Agriculture (USDA) approval for the seeds since 2010. The seeds will be resistant to a wider range of herbicides and will be paired with a stronger weedkiller, giving farmers a better tool to combat weeds that have become resistant to herbicides such as glyphosate and dicamba. “That will allow us to do largescale seed production next spring and next summer,” Monsanto’s chief technology officer Robert Fraley said. Monsanto has already licensed the genetics enabling the soyabean seeds to be resistant to herbicides to North American seed companies. The company additionally plans to use the genetics in seeds it sells in South America.

Brazil braces for consolidation in surging soyabean sector

he Brazilian seeds industry, which saw a wave of acquisitions by foreign majors in the late 1990s, may be braced for another consolidation drive, as groups seek to gain share of the country’s surging soyabean sector, agrimoney.com reported in June. Global financial services company Credit Suisse said that, in corn – of which Brazil is the third-ranked producer – the country’s seed sector looked “fairly similar” to that in the USA. Genetically modified (GM) seed company Monsanto was “the technology leader, but also the most expensive”, the bank said, with [DuPont’s] Pioneer and

Syngenta in second and third place, respectively. However, in soyabeans, “there is still room for further market consolidation”, the bank said, after a visit to Brazil. Smaller groups “still represent 50-60% of the Brazilian soyabean market”, equivalent, in hectarage terms, to the whole corn market. Brazil’s corn area in 2013-14 is estimated by the US Department of Agriculture (USDA) at 15M ha, compared with 29.9M ha for soyabeans. In Mato Grosso, Brazil’s top soyabean producing state, Credit Suisse expected some movement. “In the intermediate term, we

wouldn’t be surprised to see some acquisition activity as seed companies aim to further broaden ... platforms”, through factors such as varying product and geographic coverage, it said. Brazil’s seed sector has already seen considerable consolidation, notably in the mid-and late-1990s, when Monsanto acquired the likes of Agroceres and Grupo Maeda; DuPont purchased Sementes Dois Marcos Melhoramento; and Dow acquired Sedol and Semenes Hata, among others. However, local groups retained some clout, if coming up against increasing competition from foreign rivals, the report said.

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Biotech News.indd 1

19/09/2014 13:31

TRANSPORT & LOGISTICS NEWS

Noble Argentina SA acquires portion of new export terminal

IN BRIEF CANADA: Regulations came into force on 1 August to improve Canada’s rail transportation network, following a record crop year that has placed pressure on the country’s logistics sector. The measures include the passing of an Order in Council (OIC) which sets out the minimum grain volumes that Canadian National Railway Company (CN) and Canadian Pacific Railway Company (CP) are required to move from 3 August to 29 November. At 76M tonnes, this year’s Western Canadian crop is 50% higher than the 10-year average.

HS Inc, the USA’s largest farmer-owned company and a global energy, grains and food concern, announced in August it had reached agreement to allow Noble Argentina SA to acquire a portion of the CHS share of an export terminal joint venture at Necochea, a province of Buenos Aires, Argentina. CHS Argentina currently owns 30% of Sitio 0 De Quequen SA (Sitio 0). When the transaction is finalised, CHS and Noble Argentina, a subsidiary of Noble Grain Group Ltd, will each hold 22.75% ownership in Sitio 0. Other terminal owners are South

USA: Cargill announced on 10 July that it would invest US$45M to build a grain handling and shipping facility in West Memphis, USA that would become a key origination point in the south for soyabeans, corn, milo and wheat. The facility will have three truck-receiving areas capable of holding up to five barges, with capacity to load up to eight barges in a day (50,000 bushels/hour).

ADM approved to ship from Brazil

n July, the Brazilian arm of US commodities trader Archer Daniels Midland Co (ADM) received final government approval to ship soyabeans and corn from its new terminal at the mouth of the Amazon in Brazil, Reuters reports. The terminal outside Belém in Pará state will have an initial capacity of 1.5M tonnes/year of grain and will expand to six million tonnes/ year by 2016, taking pressure off Brazil’s crowded southern shipping routes. Of the initial volume, 80% will move on waterways, mostly from Porto Velho, Rondônia, in Brazil’s interior. The rest will be trucked in until a railway is finished. The company said the new route would shave 35% off its freight costs from shipping out of Brazil’s main port of Santos.

American grain companies E-Grain SA, A&J Nari SA, Alea y Companía SA and Lartirigoyen y Companía SA. Now under construction, the first stage of Sitio 0 will consist of an export terminal with 119,000 tonnes of storage capacity and a high-speed loader with 1,200 tonnes/hour capability at one pier. A planned second stage would include an additional pier and 100,000 tonnes of storage. Sitio 0 has the right to use the Quequen port for 45 years. The first phase is expected to be operational by May 2015.

Dispute shuts UGC’s export terminal Noble acquisition of Ukraine firm n July, Mitsui’s United Grain Corp (UGC) shut its export terminal at

the Port of Vancouver – one of the largest on the US West Coast – because the state government withdrew grain inspectors amid an ongoing labour dispute, Reuters reported an export shipper’s group as saying. “We’ve managed to get one ship out this week after getting waivers from the customer and USDA, but that’s an exceptional case – and costly”, said Pat McCormick, spokesman for export trade group Pacific Northwest Grain Handlers Association, which includes UGC, a unit of Japanese trading company Mitsui. The outbound vessel held two million bushels of grain, the report said. Nearly half of US wheat exports and about a quarter of all grain and oilseed exports exit the country via the Pacific Northwest. The Vancouver facility is one of nine bulk grain terminals in the region. UGC was scheduled to load at least 17M bushels of grain in August, McCormick said. The shutdown at the terminal is the latest development in a 17-month standoff between UGC and the International Longshore and Warehouse Union (ILWU) over work rules and pay. UGC locked out union workers in February 2013 after the two sides hit an impasse in contract negotiations. On 7 July, state workers stopped inspecting grain for export at the terminal after the government decided to stop providing them with state police protection. Without the police, inspectors were intimidated by union picketers, said Hector Castro, a spokesman for the Washington State Department of Agriculture, which employs the inspectors.

he Noble Group announced on 5 August that it had acquired a 70% shareholding interest in Ukraine’s Danube ShippingStevedoring Co (DSSC) for some US$21.7M. DSSC owns land and loading facilities in the port of Mykolaiv that can be used for the trans-shipment of agriculture commodities. “This acquisition will be the first phase of an origination platform and pipeline that will supply the group with up to three million tonnes of grains and oilseeds per annum,” the company said. Earlier this year, Noble reported expansions in its grains and oilseeds business with new facilities in Brazil, India, South Africa and Ukraine (see News, OFI April/May 2014). Noble has operations in the marketing, processing, financing and transportation of agricultural and energy products.

New rail car proposals unfair, says US ethanol industry

he Obama administration proposed in July a phasing out of thousands of older rail tank cars within two years – as well as implementing a speed limit – as part of new rules intended to reduce the risks of hauling crude oil by rail, Bloomberg reports (see OFI, Transport & Logistics News July 2014, p10). The rule applies to shipments of corn-based ethanol as well as oil.

The proposal, which follows a series of accidents, requires improved braking systems and testing of oil before being loaded, as well as thicker tanker walls. The regulations are designed to update standards to account for an increase in the use of trains to carry flammable liquids, particularly crude oil. However, the US ethanol industry has fought against what it calls a “one size

fits all” approach to the problem, arguing that regulators are not fairly distinguishing between ethanol and crude oil, a Reuters report added. While the last 18 months have seen numerous derailed cars carrying crude oil, ethanol is less volatile, is biodegradable and has a 99.9% rail safety record, according to the Renewable Fuels Association.

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R E N E WA B L E M AT E R I A L S N E W S

IN BRIEF FRANCE: Yeast company Lesaffre announced on 23 July that it had acquired Butalco, Switzerland, a research company focused on the development of yeast strains for secondgeneration biofuels and biobased chemicals. In March, the French multinational – most visible in baking; nutrition and health; and flavours and fermentation – launched a new business unit – Lesaffre Advanced Fermentation (Leaf) Technologies – to develop fermentation solutions for bioethanol and bio-chemicals. It currently supplies an engineered yeast strain of Saccharomyces cerevisiae for the second generation ethanol industry. WORLD: Methyl ester sulphonate (MES) is expected to replace 10% of linear alkyl benzene (LAB) use in 2014, according to a report in the July issue of Oleoline. Capacity is set to increase by 240,000 tonnes to reach some 480,000 tonnes by the end of 2014, and to a further 600,000 tonnes by the end of 2015. USA: Renewable Algal Energy (RAE) and power and automation technology group ABB announced on 30 July that fourth quarter 2014 is the target date for their commercial production of algae-based products for the nutraceutical, animal nutrition, and renewable fuels markets. RAE will produce the equipment that harvests and extracts algae and its co-products and ABB will supply control systems, instrumentation, low voltage electrical equipment and variable speed drives. On 24 June, RAE also announced an off-take agreement with Neste Oil which will allow the Finnish renewable diesel producer to purchase RAE’s crude algae oil on a commercial scale, contingent on RAE’s future production capacity and compliance with future biofuel legislation in the EU and USA.

Elevance and Genting to build new biorefinery in Malaysia

peciality chemicals company Elevance Renewable Sciences, USA, announced on 14 July that it is building a new plant with Malaysia’s Genting Plantations Berhad through Genting Integrated Biorefinery Sdn Bhd (GIB), to be located in the Palm Oil Industrial Cluster in Lahad Datu, Sabah, Malaysia. The 25:75 collaboration between Elevance and Genting Plantations will build a 240,000 tonnes/ year biorefinery based on Elevance’s proprietary metathesis technology, to produce renewable, highperformance olefins and speciality chemicals that can be used in personal care products, detergents and cleaners, engineered polymers, lubricants and additives, and other speciality chemicals. As part of the agreement, GIB will pay Elevance licence and design fees, and Elevance will provide intellectual property rights, knowledge transfer, and technical and consulting services. Elevance will also be exclusively responsible for the sale of all speciality

chemicals that are produced at the biorefinery. “Genting Integrated Biorefinery will spearhead our group’s expansion into the high value-added palm oil downstream segment,” said Genting Plantations Berhad chief executive Tan Sri Lim Kok Thay. The Elevance metathesis biorefinery produces multiple high-value chemical streams similar to petroleum-based refineries. The company said that its low-pressure, lowtemperature process used a selective catalyst to break down natural oils and recombine fragments, resulting in a process with lower source pollution, and less energy consumption, production costs and capital expenditures than petrochemical refineries. Genting Plantations, a 54.6%-owned subsidiary of Genting Berhad, has a landbank of about 66,000ha in Malaysia and some 180,000ha in Indonesia held through joint ventures. It owns seven palm oil mills in Malaysia and two in Indonesia.

Solazyme’s algal oil for Akzo Nobel

enewable oil and bioproducts company Solazyme Inc and leading paint and coatings group Akzo Nobel announced on 31 July that they had expanded a previous joint development agreement to include a multi-year supply deal for up to 10,000 tonnes/year of algal oils. Solazyme’s algal oil will be used for a new proprietary surfactant and is expected to replace both petroleum and palm oil-derived chemicals. The deal includes funding for joint product development, expected to begin immediately, with a definitive supply agreement expected near completion of product development. The agreement follows Solazyme’s announcement in May that its joint venture with Bunge Global Innovation LLC had successfully produced their first commercially saleable product at the venture’s renewable oils plant in Brazil (see OFI, Renewable Materials News, July 2014). San Francisco-based Solazyme transforms a range of plant-based sugars into high-value oils with a focus on four target markets: fuels and chemicals; nutrition; encapsulated lubricants; and consumer products.

BioAmber deals for bio-SA plants

io-based chemicals firm BioAmber Inc recently concluded a take-or-pay contract for its three bio-based succinic acid (bio-SA) plants with Vinmar International, USA, for a total of 210,000 tonnes/year. The two firms will expand the 100,000 tonnes/year 1,4 butanediol (BDO) plant they plan to start in late 2017 to add 70,000 tonnes/year of bio-SA. Vinmar will buy all of the 1,4-BDO, and at least 50,000 tonnes/year of bio-SA from this plant. Vinmar will also buy 10,000 tonnes/year of bio-SA from the 30,000 tonnes/year BioAmber Sarnia plant in Ontario, due for completion in 2015. of global demand. Key players The two have also committed to included BASF Cognis, Ecover, MG Intobio, Saraya and Urumqui Unite. at least 150,000 tonnes/year from a third plant (75% of projected Household detergent was the capacity) expected to start in late largest application segment – 2020, following its construction consuming 139,252 tonnes of and commissioning. biosurfactants in 2013 – but BDO is a building block personal care applications were expected to gain significant share chemical used in a wide range of products, including engineering owing to the growing market for plastics, polyurethanes and these products in Asia Pacific. Europe was the largest regional spandex. BioAmber produces its 1,4 butanediol by combining its market for biosurfactants, with succinic acid technology with a consumption of 162,295 tonnes DuPont catalyst technology. in 2013.

Biosurfactants to grow more than 4%

he global market for biosurfactants is expected to grow at a CAGR of 4.3% from 2014 to reach US$2,308.8M or 419,119 tonnes by 2020, according to a new study by Grand View Research Inc. Methyl ester sulfonate (MES) was the largest consumed biosurfactant, accounting for 33.26% of the 312,071 tonnes global market in 2013. The study said the market was consolidated with the top five companies catering to nearly 90%

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DIARY OF EVEN TS

24-25 SEPTEMBER 2014

20-24 OCTOBER 2014

9-10 FEBRUARY 2015

7th Biofuels International Conference

81st NRA Annual Convention

Oilseed Congress Europe/MENA

VENUE: Marriott Hotel, Ghent, Belgium CONTACT: Tracy Whitehead, Horseshoe Media, UK. Tel: +44 (0)20 86874138 E-mail: tracy@horseshoemedia.com Website: www.biofuels-news.com/conference

VENUE: The Ritz-Carlton, Rancho Mirage, California, USA. CONTACT: Marty Covert, National Renderers Association Convention Coordinator, USA Tel: +1 703 7548740 E-mail: co@martycovert.com Website: convention.nationalrenderers.org

VENUE: Hotel Arts Barcelona, Spain CONTACT: Mark Phillips, The Oilseed Congress Team, USA. Tel: +1 978 8878800 x 121 E-mail: conferences@soyatech.com Website: www.oilseedcongress.com

30 SEP - 2 OCTOBER 2014 7th Annual European Forum for Industrial Biotechnology and the Biobased Economy (EFIB) 2014 VENUE: Reims, France CONTACT: Anna Kolodziejczyk, Head of Operations, Smithers Rapra, UK. Tel: +44 (0) 1372 802052 E-mail: akolodziejczyk@smithers.com Website: www.efibforum.com

6-7 OCTOBER 2014 6th International Conference Oilseeds & Oils 2014 VENUE: Hotel Majestic, Barcelona, Spain CONTACT: Inna Chernenko, APK-Inform Agency Tel: +380 562 320 795 ext 166 E-mail: globoil@apk-inform.com Website: www.apk-inform.com/en/ conferences/oo2014/about

7-9 OCTOBER 2014 9th Oilseed and Grain Trade Summit VENUE: Hyatt Regency, New Orleans, Louisiana, USA CONTACT: customerservice@soyatech.com Website: www.cvent.com/events/oilseed-graintrade-summit-2014

13-15 OCTOBER 2014 National Advanced Biofuels Conference & Expo VENUE: Hyatt Minneapolis, Minnesota, USA CONTACT: BBI International, USA. Tel: +1 866 7468385; Fax: +1 701 7465367 E-mail: service@bbiinternational.com Website: advancedbiofuelsconference.com

20-22 OCTOBER 2014 Argus Biofuels and Feedstocks 2014 VENUE: The Gibson Hall, London, UK Tel: +44 (0)20 7780 4341 E-mail: biofconf@argusmedia.com Website: www.argusmedia.com/events/argusevents/europe/argus-euro-biofuels/contact

29-30 OCTOBER 2014 XIII International Conference: Fat and Oil Industry 2014 – APK-Inform VENUE: Ukraine, Kiev CONTACT: APK-Inform Tel: +380 562 321595 ext 166 E-mail: globoil@apk-inform.com Website: www.apk-inform.com/en

5-7 NOVEMBER 2014 OFI Asia 2014 VENUE: Kuala Lumpur Convention Center, Kuala Lumpur, Malaysia CONTACT: Mark Winthrop-Wallace, International Sales Manager, OFI, UK. Tel: +44 (0) 1737 855114; E-mail: markww@quartzltd.com Website: www.ofievents.com/asia

6 NOVEMBER 2014 FOSFA Annual Dinner VENUE: London, UK CONTACT: FOSFA, UK. Tel: +44 20 72835511 E-mail: contact@fosfa.org; Website: fosfa.org

10-12 MARCH 2015 World Bio Markets VENUE: The Rai, Amsterdam, the Netherlands Tel: +44 (0)207 099 0600 E-mail: info@greenpowerconferences.com Website: www.greenpowerconferences.com

15-17 MARCH 2015 81st Annual National Institute of Oilseed Products (NIOP) Convention VENUE: JW Marriott Camelback Inn, Scottsdale, Arizona, USA CONTACT: NIOP, USA. Tel: +1 202 5912461 Fax: +1 202 223 9741 E-mail: niop@kellencompany.com Website: www.niop.org

OFI events

5-7 November 2014 OFI Asia 2014 VENUE: Kuala Lumpur Convention Center, Kuala Lumpur, Malaysia

17-20 NOVEMBER 2014 12th Annual Roundtable Meeting on Sustainable Palm Oil (RT12) VENUE: Shangri-La Hotel, Kuala Lumpur, Malaysia CONTACT: RSPO Secretariat. Tel: +603 7727 8458; Fax: +603 7727 9458 E-mail: GA@rspo.org Website: www.rt12.rspo.org

26-28 NOVEMBER 2014 10th Indonesian Palm Oil Conference and 2015 Price Outlook (IPOC 2014) VENUE: The Trans Luxury Hotel, Bandung, Indonesia CONTACT: IPOC Secretariat. Tel: +6221 57943852; Fax: +6221 57943853 E-mail: info@gapkiconference.org Website: www.gapkiconference.org

www.ofievents.com/asia For sales and sponsorship, contact: Mark Winthrop-Wallace, Sales Manager Tel: +44 1737 855114 E-mail: markww@quartzltd.com Anita Revis, Sales Consultant Tel: +44 1737 855068 E-mail: anitarevis@quartzltd.com Erik Heath, Chinese Sales Executive Tel: +44 1737 855108 E-mail: erikheath@quartzltd.com Website: www.oilsandfatsinternational.com

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DIARY.indd 1

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I NT E RN ATION AL M ARKET REVIEW

Massive soya surplus drives prices toward 5-year lows CHARTS: JOHN BUCKLEY

Back in the spring, a record US soyabean crop was no more than a forecast for farmers’ planting intentions. Now, however, amid ideal weather and upward revisions to area, it is rapidly becoming a reality that may dominate product value and crush dynamics in the months ahead. John Buckley writes

FIGURE 1: WORLD OILSEED CRUSH BY TYPE

he sheer size of the increase now forecast for this year’s US soyabean crop has clearly taken many in the market by surprise – as underlined by the recent steep sell-off and subsequent price collapse in CBOT futures to their lowest level in five months. Forward new crop futures, meanwhile, paint a picture of far lower prices for both beans and products – for which we might read, the oilseed complex generally (see Figure 3, right). For a market that has long grown used to prices of ‘beans in the teens’ (range US$13-18/bushel in the past couple of seasons), the prospect of something closer to US$10/bushel or less seems unusual. However, we only have to look back to 2009 to find US$8/bushel and 2006 for US$6/bushel. The markets had been expecting an increase from the United States Department of Agriculture (USDA)’s March prospective plantings report of perhaps 500,000 acres (2.02M ha) to one million acres (4.04M ha), but not the additional 3.3M acres revealed in the June survey, putting the total 8.3M acres up on the year. Some of this has come from corn acres dissuaded by collapsing cereal prices, some from the return to cultivation of sowings that were prevented by bad weather in the spring of 2013. Even this year, after heavy rains recently flooded out fields in some regions, doubts have arisen over just how much of this record area will actually get harvested. But, assuming the normal high ratio and multiplying that by recent private yield forecasts of 45 bushels/acre to 47 bushels/acre, that could put the USA within reach of a 105-107M tonne crop compared with the USDA’s last forecast of 103.4M – as much as 16-17M tonnes more than last year and 24M more than produced in 2012. The global context of the US soya expansion adds more weight to its bearish implications for forward prices of oilseeds and products (see Figure 2, right). Although it is too early to count Latin American crops that aren’t yet sown, the USDA is assuming these will be at least as large as last year’s, Brazil’s around 3.5M tonnes bigger. Overall, that could translate to a global crop close to 308M tonnes – 24M tonnes more than last year, 40M tonnes over 2012/13 and 68M tonnes above the 2011/12 total. On paper, the three-year surge in soya supplies (assuming the 2014 crop stays on course) is equal to about 12M tonnes to 13M tonnes of extra soyabean oil. In reality, the increase over that period is likely to be little more than four million, as well over half the additional soyabean supply goes into carryover stocks rather than crush. However, the global number for stocks is a huge bear factor – perhaps

FIGURE 2: VEGETABLE OIL PRICES MONTHLY AVERAGES

FIGURE 3: CHICAGO SOYABEAN FUTURES

86M tonnes or 87M tonnes by September 2015 against 67M tonnes forecast for this September and under 54M tonnes at the start of their three-year hike. Soyabean crush has expanded by 46M tonnes or about a quarter over the last five years. About 60% of that growth has been in China (27.5M tonnes), 19% in Argentina (+8.6M tonnes), 11% in Brazil (+5.2M tonnes) and about six percent in India. The rest has been spread over a number of smaller/ moderate-sized consuming countries. Similarly, product consumption growth has been led by China (+4M tonnes of soya oil), Brazil (+1.4M tonnes), Argentina (+1.3M tonnes), India (+950,000 tonnes). US demand for soyabean oil has also grown by almost one million tonnes, while the EU’s consumption has actually dropped by a similar amount, largely due to palm and sunflower oils taking a larger share of stabilising total demand for oils and fats within the EU. At this stage, the USDA expects soyabean oil

demand to grow by about 1.6M tonnes in the year ahead, led by China (+870,000 tonnes), Brazil and India (+ about 200,000 tonnes each) and Argentina (+250,000 tonnes). The only major drop is in the USA, where food/other industrial use declines by about 250,000 tonnes. Soyabean futures have reflected the loose crop outlook with a spectacular fall over the mid-summer. The biggest slide has been in the old crop months – a loss of about US$4.50/bushel (US$167.50/ tonne), or near 30% from the April peaks – as funds liquidated bets that an oversold US export market (+8.2M tonnes or 23%) would lead to end-season stocks running down to risky, below-pipeline levels. In the event, US supplies do not appear to be running out after all, partly because crushers have back-filled with imports from Brazil and possibly because the 2013 US crop was underrated. The surge in supply has not yet been reflected to the same extent in vegetable oil prices, although most of the major items are nonetheless within

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I NTE RN ATION AL M ARKET REVIEW

sight of their lowest levels since early 2010 – crude and refined soft oils and palm oil on the European ex-tank market down as much as 10-15% from their spring highs. While CBOT soya oil futures have declined, deferred deliveries for these are not discounted, whereas the primary meal product is considerably cheaper on forwards with beans. Oil will doubtless drop more as supplies increase but, as mentioned earlier, the massive soya crop seems to offer leeway for bean prices to decline further and enough to protect the forward crush margin. While soyabeans have been responsible for 86% of the increase in global oilseed production, the descent in oil prices has also reflected last year’s much bigger than expected 2013 crops of sunflowerseed (+21%), rapeseed (+12%) and palm oil (+5%), contributing to a total 5.4% increase in world vegetable oil supply. Even if rapeseed and sunflower crops turn out a little lower in 2014, as current forecasts suggest, the total vegetable oil supply for the coming season is expected to go up by around 5.5-6M tonnes. However, this equation also includes a predicted 3.5M tonnes of additional palm oil – a forecast that might turn out on the optimistic side if the El Niño weather system dries out Southeast Asian palm supplying countries later in the year (although recent weather predictions have reduced the strength and delayed the timing of this cyclical climate phenomenon). If the total oil supply forecast is near the predicted outcome, the world market will again be in surplus with global oil ‘carryover’ stocks of vegetable oils increasing from the past season’s already record level. That seems to offer no justification for prices to rally off their present lows – rather, plenty of reason for further declines.

Key oils – going forward When it comes to soyabeans, many questions remain unanswered. Will the US crop end up as large as 105M, even 107M tonnes and how much of the extra supply will go to exports, domestic crush and/or stocks, respectively? Will soyabean prices break through the US$10/bushel barrier in the late summer harvest period? How much more can top soyabean importer China import/consume in the coming season? The USDA says just four million tonnes more after the past year’s 10M tonne gain – but crushers there must be eyeing the drop in import prices with interest. Against that have been contractions in Chinese animal feed demand due to disease problems, not to mention growing credit issues. Will soyabean oil’s relatively narrow discount to palm oil result in more demand from the food sectors of countries such as India and more use in biodiesel in the Americas and, ultimately, more soyabean crush/soya oil production? How will Latin America respond to the slide in soyabean and product values in terms of their autumn planting campaigns? On the rapeseed side, Canada’s planted area for 2014 far exceeded early forecasts – slightly exceeding last year’s – but heavy losses to the harvest area have been threatened by flooding after excessive rain. That leaves a wide range of crop possibilities and potential price volatility going forward for the Winnipeg exchange. Yet, Canada’s carryover stocks from last year’s

FIGURE 4: WORLD VEGETABLE OIL CONSUMPTION GROWTH

record crop are large and, while both are catching up, crush and exports have yet to move far enough ahead to seriously deplete these (a notable exception is much higher Canadian rapeseed sales to the USA, but that may dry up as US old-crop soyabean shortages ease). Europe expects another record rapeseed crop – at least 1.5M tonnes more than last year’s. Demand for rapeseed oil in Europe has flattened out in the previously fast-growing biodiesel sector, while food use has been kept in check by rising supplies of sunflower oil, but Canada’s smaller crop may open some export opportunities. A bigger Russian harvest could offset an expected moderate drop for Ukraine, keeping the CIS countries in the export market. Rapeseed oil consumption is seen higher in 2013/14 in China and India, but supplies should be adequate to meet that. Unless the Canadian crop declines by more than the currently expected 1520%, world carryover stocks of rapeseed are unlikely to drop much and would remain about twice the low level that supported high rapeseed oil prices in 2012/13.

Sunflowerseed and palm oil World output is expected to drop by almost six percent in the CIS countries – especially Ukraine – and Europe sees modest reductions in both sown area and yields from last year’s high level, offset only partially by expected higher output in Argentina. Moderate stock drawdown is expected to keep sunflowerseed crushing up and production of the oil at the past season’s relatively high level. Demand for sunflower oil should remain strong at prices that are down by about a third from mid2013, especially from developing import markets like India. Palm oil prices dropped eight percent over the second quarter of 2014 and as much as 25% from their start point by early September – their steepest decline since 2008, reflecting higher than expected production, lower than forecast imports and biodiesel demand, and consequent higher than expected origin stocks. However, palm oil’s discount versus other oils remains smaller than usual and disincentive to importers, falling from an average US$244/tonne

in the past year to just US$94/tonne so far in 2014 (and considerably less recently). Malaysian trade has also suffered from its domestic ringgit currency strength. That has had an impact on demand, especially from top palm buyer India, which has recently shifted to buying more soya and sunflower oil. Although Malaysian exports to India are still up by about 20% for the year to date, its total exports to all destinations are down by over eight percent (China, Iran, Pakistan, Bangladesh, the USA and a host of smaller consuming countries). Despite all the earlier concerns about drought, palm oil production has performed better than expected. In Malaysia, it did decline counterseasonally in June by five percent but, annually, it was still up by eight percent compared with last year. Although the El Niño dry weather threat still hangs over both the major producers later in the year, some observers are postponing its start-up and mitigating its severity. It may prove optimistic but, currently, the USDA still predicts 2014/15 output of plus 900,000 tonnes (+4.5%) in Malaysia and plus 2.5M tonnes (+8%) in Indonesia, their combined exports rising by two million tonnes. Delayed and sub-par monsoon rains are expected to cut India’s domestic oilseed crop and boost its vegetable oil imports later in 2014. The extent to which palm oil benefits will depend on how soya oil prices evolve and how that affects palm’s discount – an equation that will also determine the extent to which other large and small buyers choose palm in the year ahead. Some analysts have been downplaying the extent to which producing countries’ growing biodiesel industries might soak up extra palm oil supplies, especially Indonesia, which doesn’t yet have the infrastructure to distribute ‘green fuel’ to motorists across its vast island complex. But it is interesting to see that the USDA still has Indonesia down to consume an additional 1.44M tonnes at 11.22M tonnes – roughly double what it used just five years ago. Even with all the demand increases, the USDA still sees global palm oil stocks rising by 800,000 to 8.8M tonnes – about 60% more than five years ago. John Buckley is Oils & Fats International’s market correspondent

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Securing sustainable soya Soyabeans – used in animal feed, biodiesel and for human consumption – cover 46M ha of land, with production totalling 269M tonnes/year. is important to safeguard sustainable production. The World Wide Fund for Nature (WWF)’s Soy Report Card 2014 assesses companies on their policies on responsible soya and deforestation

oyabeans have been cultivated for thousands of years in Asia but, over the last century, cultivation has expanded dramatically. In the last 50 years, the production of soya has grown ten-fold, from 27M tonnes to 269M tonnes, according to NGO the World Wide Fund for Nature (WWF) (see Table 1, below). The total area of soya now covers over one million square kilometres – the total combined area of Belgium, France, Germany and the Netherlands (see Table 2, following page). The fastest growth in recent years has been in South

America, where production grew by 123% between 1996 and 2004, increasing in area from 17M ha in 1990 to 46M ha in 2010. Soyabeans produce more protein per hectare than any other major crop. It is also one of the most profitable agricultural products. Around 270M tonnes were produced in 2012, of which 93% came from just six countries: Argentina, Brazil, China, India, Paraguay and the USA. The main importers are the European Union (EU) and China, while the USA has the greatest soya consumption per capita. Numerous organisations have formed to ensure

TABLE 1: SOYABEAN PRODUCTION 2008-2013 (‘000 TONNES) 2008-09 2009-10 2010-11 2011-12 Brazil 57,800 69,000 75,300 66,500 USA 80,749 91,417 90,605 84,192 Argentina 32,000 54,500 49,000 40,100 China 15,540 14,980 15,100 14,480 India 9,100 9,700 9,800 11,000 Paraguay 3,647 6,462 7,128 4,357 Canada 3,336 3,581 4,445 4,298 Other 9,464 10,605 12,211 13,798 Total 211,636 260,245 263,589 238,725 Source: “The Growth of Soy: Impacts and Solutions”, World Wide Fund for Nature

2012-13 82,500 82,055 54,000 12,600 11,500 7,750 4,930 14,079 269,414

the sustainable production of soya. The Roundtable on Responsible Soy (RTRS), for example, has set a standard for responsible production, and promotes chain-of-custody certification along the supply chain to make sure that claims about products containing responsible soya in the marketplace can be verified. Since not all growers have access to separate supply chains for responsible soya, the RTRS runs a certificate trading platform: producers are issued with a certificate for the amount of RTRS-certified soya they produce, which can be sold directly to manufacturers or retailers committed to responsible soya. The Roundtable also runs a separate module for non-genetically modified (nonGM) soya, as well as a module developed specifically to ensure that biodiesel derived from soyabeans meets the EU Renewable Energy Directive (RED). Another organisation is ProTerra, which developed a set of criteria for responsible, non-GM soya known as the Basel criteria. These evolved into the ProTerra standard by CERT ID, a private company, and influenced RTRS standards. Suppliers from Brazil that meet the ProTerra requirements have an annual capacity of around four million tonnes (2012-13). ProTerra’s standard is comparable to that of the RTRS, but improvements need to be made in governance, transparency and level of assurance of the scheme, says the WWF. The Round Table on Sustainable Biomaterials (RSB) is a multi-stakeholder forum, of which WWF is a member, and promotes the most credible and comprehensive global standards and certification scheme for biofuels and other biomass products, says the WWF. While there is, to date, no RSBcertified soya, RTRS-certified soya for biodiesel is recognised by the RSB. The Consumer Goods Forum represents 400 leading global manufacturers and retailers and has pledged to use its influence and mobilise resources to help achieve zero net deforestation by 2020. It has specific working groups, including one on soya and advises companies to choose soya certified by the RTRS. However, the WWF notes: “There is no silver bullet – we need complementary interventions from a whole range of actors, including governments in soya producing and consuming countries, companies all along the supply chain, financial institutions, civil society organisations and consumers.” In order to assess the steps made towards responsible soya production, the WWF promotes sustainable land use planning and government policies that support the responsible production of soya. It supports farmers that wish to implement best management practices, supports the soya moratorium and the Round Table on Responsible Soy (RTRS), develops financial mechanisms such as payment for ecosystems services, promotes responsible choices by consumers – including reducing waste and promoting healthy lifestyles – and promotes responsible soya markets by engaging with companies.

The WWF Soy Report Card 2014 The WWF Soy Report Card 2014 enables the WWF to assess companies on their attitude towards procuring responsible soya. The WWF has supported the RTRS since its inception in 2006. RTRS-certified, responsible soya has been available on the market since 2011 but, to date, only just over

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TABLE 2: SOYABEAN AREA HARVESTED (‘000 HA) 1990 2000 2010 Argentina Bolivia Brazil Paraguay Uruguay China USA Other Total

4,962 143 11,487 900 29 7,564 22,869 9,235 57,209

8,638 617 13,640 1,176 9 9,307 29,303 11,673 74,363

18,131 1,086 23,293 2,671 863 8,516 31,003 17,050 102,613

2012 19,350 1,090 24,938 3,000 1,130 6,750 30,799 19,568 106,625

Source: “The Growth of Soy: Impacts and Solutions”, World Wide Fund for Nature

half of it has been sold. Buyers are not purchasing enough RTRS-certified soya, so producers don’t have the incentive to improve practices and become certified. The report card aims to bring transparency to the market in order to increase the uptake of responsible soya and to raise awareness of the soya issue, especially with companies that use soya and animal products, along with consumers. It assesses 88 of Europe’s major companies in five separate countries, including retailers, food service companies, consumer goods manufacturers and dairy, meat, egg and feed companies. Its scope includes Denmark, France, the Netherlands, Sweden and the UK, and focuses on soya for animal feed for producing animal products. Europe, says the WWF, is the prime market for responsible soya. Companies were assessed on their approach to responsible soya, their commitment, their choice of certification (RTRS or ProTerra), full or partial/ national scope, whether they had a time-bound plan and the results. Their policies on deforestation were also assessed. Some of the questions asked were: ! How much soya do you use in animal feed? ! Do you have policies/commitments for responsible RTRS/ProTerra soya and time-bound plans? ! If so, what have you achieved? ! Are you committed to ‘no conversion’ of other valuable landscapes? ! Are you a member of the RTRS or ProTerra? ! When did you join?

The results Surprisingly, just 31 of the 88 assessed companies were found to be members of the RTRS. Fourteen had made individual commitments to use 100% responsible soya for the full scope of their operations by 2015 or sooner, and an additional 13 had made similar commitments for partial (often national) scope. Twenty-seven of the companies that submitted the questionnaire had no commitments on ‘responsible soya’ or ‘no deforestation’ policies. Thirty-two companies did not respond. Six companies had already bought 50% or more responsible soya. It was found that national commitments in the Netherlands, Sweden and Switzerland made a big difference in creating commitment and spurring action. However, more companies needed to make individual commitments for the full scope of their global operations. Retailers had made some progress, but too many were still lagging behind, the WWF says. Thirty-two were assessed and 10 were found to have individually committed to 100% responsible soya by 2015 for their full scope of animal products. Thirteen had started using responsible soya and 16 had not shown any progress or did not respond. The best performing retailers were Ahold and Superunie (the Netherlands); Axfood, Coop Sweden and ICA Sweden (Sweden); and Marks & Spencer and Waitrose (UK).

Retailers and goods manufacturers Most of the food companies had not made any progress, but the best performing food service companies were KLM (the Netherlands) and Martin & Servera (Sweden). Eighteen out of the 32 companies had still not joined the RTRS or ProTerra. The WWF was also disappointed to find that many consumer goods manufacturers had still not taken action on responsible soya. Fourteen were assessed; two had individually committed to 100% responsible soya by 2015 for their full scope of animal products; six had started using responsible soya; and seven had not shown any progress or did not respond. The best performers were Arla (Denmark) and FrieslandCampina (the Netherlands). Only four of " 19 OFI – AUG/SEP 2014 www.oilsandfatsinternational.com

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" the manufacturers were members of the RTRS and only half of the companies assessed had made commitments to responsible soya for use in animal products, “no deforestation” supply chains, or the soya moratorium.

Meat, eggs and animal feed A lack of consumer pressure leaves the meat and egg sector trailing behind on the road to responsible soya, claims the WWF. Twenty-seven companies were assessed and only one had individually committed to 100% responsible soya by 2015 for its full scope of animal products. Ten had started using responsible soya, but 16 had not shown any progress or did not respond. Only six out of the 27 companies were members of the RTRS. The best performer was HKScan Sweden, but Dutch companies showed the most progress, due to the Dutch national commitment. Despite handling three-quarters of the soya traded in their countries, the animal feed manufacturing sector was demonstrating a “lack of leadership”, claims the WWF. Fifteen were assessed; eight had started using responsible soya; six had not shown any progress or did not respond; and just one had individually committed to 100% responsible soya by 2015 for its full scope of animal products. Six out of the 15 companies were members of the RTRS and seven companies had made a commitment to use responsible soya. The best performer was Lantmännen (Sweden) but, again, Dutch companies were leading the way. The WWF concluded that there was leadership among companies, but many more needed to

Brazil’s Amazon Soy Moratorium

dvocacy from NGOs and pressure from consumers led Brazil’s soya industry to take voluntary action against Amazon deforestation. In 2006, two associations that represent around 80% of soyabean processors and exporters in Brazil – the Brazilian Association of Vegetable Oil Industries (ABIOVE) and the National Association of Cereal Exporters (ANEC) – pledged that their members would not buy soyabeans produced on any Amazon farmland deforested after 24 June 2006. WWF is a member of the Soy Moratorium’s Technical Working Group and plays a key role in ensuring the ongoing credibility of the initiative’s monitoring system. Initially, the moratorium was set for two years, but it has been renewed every year since, and enforcement has improved. It is monitored annually by overlaying maps

take more responsibility. There is no excuse, says the WWF, as there is an availability of supply chain options and a surplus of RTRS-certified soya. While national incentives were good mechanisms to create awareness and spur action, these could be improved. As one third of companies did not respond to the WWF’s questions, awareness also needed to be improved. The WWF recommended that companies became members of the RTRS or ProTerra, calculate their soya use and commit to 100% RTRS

derived from satellite images of deforestation with registered farms known to be producing soya. The success of the moratorium is monitored by remote sensing. Between the 2007-08 and 2012-13 crops, only 18,100ha of the total 2.1M ha of soya cultivated in the Amazon (less than one percent) was in recently deforested areas. The moratorium was an important step towards reducing Amazon deforestation and, indeed, many companies take their moratorium obligations seriously. However, ABIOVE issued a press release on 3 February 2014 announcing that the soya moratorium will end in December 2014. It will be replaced by a new sustainability programme for soya production that will be linked to Brazil’s new Forest Code and the CAR (Rural Environmental Registration). Extracted from “The Growth of Soy”, WWF. for full scope. For non-genetically modified (GM) companies, there needed to be commitments to non-GM RTRS or ProTerra, make time-bound plans and start the buying of certified soya now. ! This feature is extracted with permission from the World Wide Fund for Nature (WWF)’s Soy Report Card 2014 and its 2014 report, “The growth of soy: impacts and solutions”. Copies of these reports can be found at www.panda. org/soyreportcard/2014

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PHOTO: SAFAK CAKIR/DREAMSTIME.COM

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Fattening up biofuel What are the environmental and economic results of diverting used cooking oils and animal fats into biodiesel production? A study by the Deutsches Biomasseforschungszentrium looks into this issue

emand for used cooking oils (UCOs) to produce biofuels is set to rise as a result of the European Union (EU)’s policy to ‘double count’ this type of biofuel and the EU’s proposed 5-6% target for biofuels from cultivated biomass. The greenhouse gas (GHG) reduction potential for UCO biofuel will therefore become a marketdominant factor. However, there is no current EU GHG standard value for the production of biodiesel from animal fats. And more questions need to be asked to assess the possible ecological and economic effects if more residual and waste materials are diverted to biofuels.

Changes in legislation In October 2012, the European Commission (EC) published a proposal to amend the EU’s Renewable Energy Directive (EU RED) to address the multiple

counting of biofuels derived from residual and waste materials towards its biofuel quota; and to limit the contribution of biofuels from cultivated biomass to a maximum five percent. The European Parliament (EP) agreed to this proposal on 11 September 2013. However, the EP increased the upper limit for biofuels derived from cultivated biomass to six percent. And it did not approve multiple crediting for biofuels derived from residual and waste materials. Instead, biofuels based on agricultural residual and waste materials are to be subsidised through a subquota (2.5%, consideration corresponding to its energy content) in future. Although the double counting proposed by the EC remains for biofuels based on waste vegetable and animal oils, the EP called for a more restrictive use of waste for biofuel production. This new funding policy framework for biofuels based on waste animal and vegetable oils is expected to lead to increasing demand for residual and waste materials.

Therefore, it is necessary to look at the assumptions used to calculate the standard values for these biofuels, particularly those concerning the transport distances for residual and waste materials, and the resulting GHG emissions. Against this background, the Union zur Förderung von Oel-Und Proteinpflanzen e.V (UFOP) asked the Deutsches Biomasseforschungszentrum (DBFZ) to draw up proposals for adapting the GHG standard value for biodiesel based on animal and vegetable waste oils and fats. The EC’s Joint Research Centre (JRC) has, meanwhile, updated the database of standard values on behalf of the EC (referred to below as JRC 2013) in a report published in May 2013.

Adapting the GHG standard value The original terms of reference for this study involved examining the effect of fats and oils transport distances on the total GHG balance. This was based on calculations concerning biodiesel production from waste vegetable and animal oil, and comparing the results with the EU RED standard value for biodiesel from waste vegetable oil and animal oil. While the EU RED intends a single value for biodiesel from waste vegetable and animal oil, JRC 2013 lists biodiesel from UCO and biodiesel based on animal fats separately.

Principles and method The EU RED contains concrete specifications for calculating the GHG emissions from biofuel !

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! production and use, as well as for the calculation of the corresponding GHG saving potential. In addition to these specifications, Annex V of the EU RED contains standard “default values” for various biofuel options. These standard values can be used by biofuel producers to determine the GHG saving potential if they cannot or do not wish to make their own calculation. Further guidelines can be found on calculating GHG emissions based on actual values. For example, these relate to system boundaries (which processes have to be taken into consideration in the balance) and the consideration of by-products. The system boundaries for the two biodiesel options considered in this study are shown in Figure 1 (right). The balancing of biofuel production based on waste and residual materials begins with their collection, corresponding to the waste and residual material definition of the EU RED. The system boundaries also contain all processes downstream of collection, such as treatment of the fats, conversion to biodiesel and distribution of the fuel. The emissions from fuel utilisation are equated with the carbon uptake from biomass production, corresponding to the assumption that only biogenic CO2 is emitted during the internal combustion of motor vehicles. The two process chains differ when it comes to the supply processes. In the case of biodiesel from UCO, the processes upstream of biodiesel production are restricted to collection and transport. For biodiesel from animal fats, the expenditures of the rendering plant are also taken into consideration, along with transport of the fats to the production plants.

GHG emissions from UCO Corresponding to the process chain in Figure 1, GHG emissions for the supply of biodiesel from UCO were calculated based on data from the

FIGURE 1: SYSTEM BOUNDARIES OF GHG BALANCING

Source: Deutsches Biomassforschungszentrum gemeinnützige GmbH (DBFZ) project database of the DBFZ and the inventory database ‘ecoinvent 2.2’. The data comprises all relevant input and output flows of the individual process steps. The process, which is based on the calculation, is referred to as base case and is the basis for the different scenarios calculated in Figure 2 (below).

FIGURE 2: GHG EMISSIONS FOR BIODIESEL PRODUCTION FROM ANIMAL FATS IN GC02-EQ/MJTME

Figure 3 (following page) shows the results of the GHG balancing. The combustion of fossil energy sources determines the GHG emissions of the transport, conversion and distribution processes as fossil diesel is used in transport and distribution. The conversion process has the largest share of overall GHG emissions. The supply of heat and steam based on natural gas, the supply of fossilbased methanol and an electricity mix for Europe are primarily responsible for the climate-relevant emissions here. The total GHG emissions of just under 14g CO2equiv/MJ FAME of the base case correspond to a reduction potential of 83% in comparison to the fossil reference value defined in EU RED. Although the values for the basic scenario and the EU RED standard value are similar in respect to the level of the overall GHG emissions, there are significant differences in the emissions values attributed to transport and distribution. The EU RED standard value does not seem to take sufficient account of the GHG emissions during the transport process. This impression is reinforced when looking at the GHG emissions that were balanced based on the JRC 2013 data for biodiesel production from waste food fats. This value is above the two other values at just under 17g CO2-equiv/MJ FAME on account of the higher emissions from the transport process. Why is this?

Parameter variations

Source: Deutsches Biomassforschungszentrum gemeinnützige GmbH (DBFZ)

Firstly, the GHG emissions from the transport processes of the EU RED standard value are very low and are significantly below those of comparable processes. This is particularly significant in respect to the EU’s funding policy directives. !

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The EU RED standard value at 83% shows a very high GHG reduction potential in comparison to the fossil reference. The GHG reduction potential becomes a market-dominating factor in view of the current double crediting of biodiesel from waste food fats and oils to the biofuel quota, or the conversion of the quota to a GHG reference in 2015. A value with which biofuel producers can identify the GHG reduction potential of their fuel without reference to the actual values should not only be conservative on the level of the conversion, but should also be realistic in the upstream and downstream transport processes. Secondly, it is to be expected that the demand for UCO for biofuel production will increase as a result of double crediting and the 5-6% target for biofuels from cultivated biomass. This, in turn, could lead to increased imports of these fats from Malaysia and China, for example. This circumstance was taken into account in JRC 2013. The database for biodiesel from UCO includes the transport of the biomass by sea and transoceanic tanker over 18,500km. This explains the relatively high GHG emissions for transport. The emissions from ocean transport are responsible for 95% of the total transport emissions here. However, the expenditures for collection of the biomass, transport to the port and from the port to the production plant appear to be too low at 100km/tonne biomass/truck in this supply chain, similar to the standard value currently applicable. The expenditures for collection and transport that were assumed for the base case scenario are the basis for the scenarios formulated in Figure 4 (below). The supply of biomass is based on these assumptions, irrespective of whether it includes overseas transportation or not. Figure 3 (right) shows the results of the GHG balancing for these scenarios. As is to be expected, the emissions of scenario 1, in which a 100% proportion of imported biomass was assumed, are significantly above the emissions of other scenarios.

FIGURE 3: GHG EMISSIONS FROM THE BASE CASE SCENARIO IN GCO2EQUIV/MJFAME IN COMPARISON TO THE VALUES CORRESPONDING TO JRC 2013 AND EU RED STANDARD VALUE

Source: Deutsches Biomassforschungszentrum gemeinnützige GmbH (DBFZ) The majority of the transport emissions are incurred from the ocean transport. However, road and rail transport also causes significantly higher emissions than assumed for the standard value. If we transfer the results of these scenarios to the overall GHG emissions of biodiesel production, the

FIGURE 4: GHG EMISSIONS OF THE TRANSPORT SCENARIOS IN GCO2-EQ/TONNE UCO

effect of the variation in the transport parameters becomes clearly apparent. Scenario 1 is significantly above the EU RED standard value and exhibits a GHG reduction potential of 77% in comparison to the fossil reference. The transport emissions are responsible for almost 38% of the total emissions in this scenario. These expenditures for collection and transport should be incorporated in the database, along with the ocean transport. For the currently applicable standard value, this would lead to a decrease in GHG reduction potential to 74%.

Biodiesel based on animal fats

Source: Deutsches Biomassforschungszentrum gemeinnützige GmbH (DBFZ)

GHG emissions for the supply of biodiesel from animal fats were also calculated based on data from the project database of the DBFZ, the inventory database ‘ecoinvent 2.1’, as well as data from JRC 2013. The results were then compared with the standard value for biodiesel from waste oils. The results of the GHG balances are significantly above the common standard value for biodiesel from UCO and animal fat, as shown in Figure 4 (following page). The higher total emissions are primarily caused by the expenditures for the fat rendering plant. This process is not included in the database for the standard value. If we assume that the data from JRC 2013 for biodiesel from animal fats serves as a basis for a new standard value, the actual value would exhibit a GHG reduction potential of 70% in comparison to the fossil reference. Assuming we retain the practice involving a 40% increase in the GHG emissions from the conversion, and the

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process of the fat rendering plant is not affected by this, the GHG reduction potential is reduced to 67%.

Substitution effects Animal fats are also utilised for energy, substituting fossil fuels, amongst others. The use of animal fats in biodiesel production could, for all intents and purposes, lead to animal fats being removed from energy utilisation and possibly having to be replaced by fossil fuels there. Various scenarios have been developed and compared with one another in order to examine the environmental consequences of producing biodiesel from animal fats. In order to estimate the GHG reduction potential of biodiesel from animal fats, the utilisation options involving own-utilisation of the fats (for example, steam generation in rendering plants), thermal utilisation (for example, cement work as a representative for a secondary fuel utilisation) and biodiesel production were combined in varying scenarios. The conclusion was that no additional GHG saving can be achieved in the energy system through re-utilisation of the animal fats already in use. In fact, the GHG reduction potential as a result of biodiesel production from animal fats is lower than that for the other scenarios examined.

The report JRC 2013 contains data for biodiesel from animal fats as a possible basis for the calculation of a corresponding standard value. Besides the actual conversion process, expenditures of the rendering process integrated in the animal carcass processing plant were taken into consideration for the calculation of this value. As a result, the GHG emissions are significantly above those of the EU RED standard value for biodiesel from vegetable and animal waste oils. As animal fats have diverse uses, the following questions arise similarly to the waste food fats and oils regarding the more intensive use of animal fats for biodiesel production: ! How are animal fats currently utilised (in particular, energy use?) ! What substitution effects would result in the case of a more intensive use of animal fats for

biodiesel production? ! How can these effects be quantified? ! Furthermore, the assumptions for the transport processes should also be depicted realistically here. More extensive information on interaction and substitution effects is required if we are to be able to evaluate the possible ecological and economic effects of a more intensive use of residual and waste materials. " This feature is based on a paper by Katja Oehmichen and Stefan Majer from the DBFZ, ‘Biodiesel based on animal fats and used cooking oils – Proposal for revision of the GHG standard value’ commissioned by the Union zur Förderung von Oelund Proteinpflanzen eV (UFOP) and published in November 2013

Demand set to rise Demand for UCOs for biofuel is set to rise and the GHG reduction potential for a biofuel will become a market-dominant factor. As this study has shown, the EU RED standard value does not seem to take sufficient account of the GHG emissions during the transport process of producing biofuels from UCO. Therefore, the assumption upon which the standard value for biodiesel from waste oil is based should: ! be mapped realistically for collection and transportation ! contain the corresponding expenditures for ocean transport and the associated transport from the port to the biodiesel plants when using imported biomass To be able to estimate the possible ecological and economic effects of a more intensive utilisation of residual and waste materials in already established material flows, the following questions urgently need to be examined in more detail: ! How great is the potential for UCOs from private households and what economical and ecological effects would a separate collection have? How high are the expenditures for the collection and how high are the avoided expenditures for sewage systems and treatment plants? ! How are UCOs currently used and what substitution effects would result from a more intensive utilisation of the waste materials for biodiesel production? So far, there has not been any explicitly identified EU RED standard value for the production of biodiesel from animal fats. 25 OFI – AUGUST/SEPTEMBER 2014 www.oilsandfatsinternational.com

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PHOTO: PHOTOGRAPHERLONDON /DREAMSTIME.COM

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TABLE 1: TOP 10 COUNTRIES IN THE PRODUCTION OF AQUACULTURE Volume Country Position

1 2 3 4 5 6 7 8 9 10

China (62%) Indonesia India Vietnam Philippines Thailand South Korea Japan Bangladesh Norway

45,279 4,713 3,792 2,590 2,477 1,396 1,332 1,243 1,064 962

In descending order, the following countries produce from 880,000 to 234,000 tonnes of fish and crustaceans: Chile, Myanmar, Egypt, North Korea, USA, Malaysia, Brazil, Taiwan, Spain and France. Source: FAO-2009, FishStat 2011

Premium fish flakes The aquaculture feed sector has been growing at over 10%/year since 1995 to meet the increase

the use of terrestrial animal commercial aquafeed is rising

armed fish ranks fourth in terms of global meat production and has the fastest annual growth. In China, farmed fish production is second to total meat production and is bigger than poultry. To feed this growth, total global compound aquafeed production has been growing at an average rate of 10.7%/year since 1995, with production increasing over four-fold from 7.61M tonnes in 1995 to 35M tonnes in 2010, and expected to grow to 50M tonnes in 2015, and over 70M tonnes by 2020. Although industrially compounded aquaculture

feeds represent only about four percent of total global animal feed production (estimated at 718M tonnes in 2010), the aquaculture feed sector consumed over 73% of the total global fishmeal production and over 80% of the total global fish oil production in 2010. In addition, it is estimated that the aquaculture sector also consumed between five and seven million tonnes of lower-value forage fish as a direct feed source. Notwithstanding, terrestrial animal protein meals and fats derived from the agricultural production of farmed livestock represent the largest source of feed-grade animal protein and lipids available in the global market place, with total global production currently estimated at around 13M tonnes and 10M tonnes in 2010, respectively. This compares with an estimated total global production of about five million tonnes for fishmeal and one million tonnes for fish oil. With increasing pressure being placed by society

Use of non-ruminant processed animal protein in fish feed: myths and facts

he European Union (EU) lifted its ban on the use of non-ruminant processed animal protein (PAP) in fish feed in 2013. Opponents to the lifting of the ban have called the move “unnatural” or “dangerous”. Organisations like FEFAC, EFPRA and FEAP say that non-ruminant PAP is a highly valuable protein resource that can make a significant contribution to the sustainable development of EU aquaculture, as recommended in the new chapter on aquaculture of the EU’s Common Fishery Policy. They have jointly listed several published myths they say need clarification for the sake of a science-based debate. Myth 1: The currently authorised PAP for fish feed was the cause of the BSE crisis The associations say there has been a lot of confusion between the inadequately-treated meat and bone meal (MBM) of ruminant

animal origin, which was at the base of the BSE crisis, and the non-ruminant PAP that is currently authorised in fish feed. Today, MBM in the EU is made from Category 1 and Category 2 animal byproducts, which are not considered fit for human consumption (for example, deceased animals). MBM cannot now be used as a feed material in the EU for food producing animals and must be either destroyed (Category 1) or channelled to technical or energy uses (Category 2). PAP is derived from Category 3 material considered fit for human consumption according to the strictest safety rules but, because of consumer dietary preferences, is not sold on the food market (for example, edible bones, feathers, skins or tendons). The EU took a first step by lifting the feed ban for non-ruminant PAP use in fish feed in

2013, once new analytical methods had been developed and validated by the EU Reference laboratory for animal proteins. When the feed ban was introduced for PAP in 2001, the main reason was the absence of analytical control methods, which could ensure that only “food grade” material would be used in animal feed and that intra-species recycling would not take place, as requested by the European Parliament (EP). Consequently, PAP and MBM are fundamentally different products, yet the terms are often incorrectly used interchangeably in non-scientific publications. One reason for this is that MBM (Category 2) is still authorised for animal feed use outside the EU and the term MBM is still widely used. Myth 2: PAP is a cheap waste product unsuitable for animal nutrition

26 OFI – AUGUST/SEPTEMBER 2014 www.oilsandfatsinternational.com

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TABLE 2: TOP FED FISH AND CRUSTACEAN SPECIES GROUPS – 2012 1 Chinese carp 12,473,313 2 Tilapia 4,506,877 3 Shrimp 4,327,520 4 Catfish 3,909,218 5 Salmon 2,294,419 6 Marine fish 2,181,032 7 Msc FW & D fish 2,135,804 8 FW crustaceans 1,827,313 9 Milkfish 943,259 10 Trout 878,985 11 Eel 241,285 Top fed species 35,719,025 Source: Fishstat – FAO (2014) on these precious and finite resources for direct human consumption, clearly the aquaculture feed sector has no choice but to reduce its current dependence upon these commodities and source feed ingredients that can be sustainably produced in quantities that can keep pace with the growth of the aquafeed sector and, by so doing, ensure the long-term sustainability of the aquaculture sector dependent upon compound feed inputs.

Animal protein meals Current usage of terrestrial animal protein meals and oils within commercial aquafeeds (which may include the use of poultry by-product meal, hydrolysed feather meal, blood meal, porcin meal, or meat and bone meal, depending upon the feeding habit of the species cultured and the country in which it lives) continues to increase within non-European countries (where the use of these products is not restricted), as fishmeal prices rise and the feed industry learns to make better use of these valuable and much needed feed ingredient sources. The fact that non-European feed manufacturers are able to utilise this vast additional source of high quality animal protein and fat allows them to

Animals need nutrients, as opposed to ingredients, the associations say. Essential nutrients such as protein, minerals and fats form the basic components of a balanced diet and the key criterion is the quality of such nutrients. Whether the source is soya, rapeseed or from land or marine animal origin does not matter. That is why it is no more “unnatural” to feed omnivorous species such as pigs, poultry or fish, with exclusively vegetable-based diets than diets containing animal proteins. As an example, fish require a balanced diet that is rich in highly digestible protein and energy, a requirement the protein-rich PAP meets. In addition, PAP is also able to contribute to the nutritional needs for calcium, phosphorus and vitamin B12. PAP is, therefore, a high-value resource, which is as safe as any other protein and cannot be regarded as a waste product, especially considering the fact the EU feed

5.6 11.5 9.5 15.3 8.9 8.5 19.3 18.4 5.7 4.9 1.5 8.3

FIGURE 1: PROCESSED ANIMAL PROTEIN MEAL PRODUCTION ESTIMATES 20,383,704 7,656,117 19,428,752 6,150,739 11,263,000 9,440,033 6,378,675 10,481,207 1,711,500 3,790,573 1,372,848 98,057,148

be less reliant on the use of fishmeal and fish oil as dietary nutrient sources, and by virtue of their greater availability and lower cost, allows them the possibility of being more cost competitive than their European counterparts. According to the European Commission (EC), the only animal by-products (ABP) that can be used within aquafeeds are Category 3 ABP, namely those animal by-products or parts of slaughtered animals that are fit for human consumption in accordance with Community legislation (European Commission regulation No. 1774/2002 and No. 999/2001), but are not intended for human consumption for commercial reasons, including: ! Fishmeal (with restrictions – intra species recycling is prohibited, see Regulation (EC 999/2002); ! Dicalcium phosphate and tricalcium phosphate of animal origin (with restrictions); ! Non-ruminant blood meal and blood products (with restrictions); ! Milk, milk-based products and colostrums (without restriction); ! Eggs and egg products (without restriction); ! Hydrolysed protein from ruminant hides/skin (without restriction); industry is subject to comprehensive food and feed safety legislation that explicitly excludes any waste product as a feed material. In 2011, the European Food Safety Authority (EFSA) publicly announced that the use of PAP in fish feed was beneficial for fish and was completely harmless to the EU consumer. In the EU, however, PAP is currently used mainly in other outlets such as pet food and fertiliser. FEFAC, EFPRA and FEAP say that PAP should be classified as one of the many other co-products from the food industry that contribute huge volumes of nutrients to animal nutrition. Myth 3: The EU doesn’t need PAP in fish nutrition The three associations say that, to meet the nutritional requirements of farmed fish in aquaculture, the EU has to import large quantities of fish meal and fish oil. Currently, approximately 75% of global fish oil production and more than 70% of fish meal production

Source: Albert Tacon, “The role of rendered products in aquaculture feeds.”

FIGURE 2: GLOBAL ANIMAL FAT PRODUCTION ESTIMATES

Source: Albert Tacon, “The role of rendered products in aquaculture feeds.”

! Gelatine from non-ruminants (without restriction); ! Animal fats (without restriction); ! Collagen from non-ruminants (without restriction). However, it is hoped that, within the very near future, the EC will allow the use of poultry byproduct meals within compound aquafeeds and so assist the aquaculture feed sector towards even greater sustainable and profitability. " This feature was written by Albert Tacon, technical director of Aquatic Farms Ltd, Kaneohe, Hawaii, USA and reproduced with kind permission is used in aquaculture. World demand for aquaculture products is increasing, meaning that the need for protein-rich ingredients will subsequently also rise. At the same time, the sustainably-produced resources of fish meal have reached their limit. FEFAC, EFPRA and FEAP say that PAP provides a safe, protein-rich alternative to fish meal, is available in considerable quantities in the EU and can, therefore, reduce the dependency on third country supplies as well as reducing the fishing pressure on global fish stocks. As a comparison, outside the EU, the use of animal proteins in fish feed in order to replace fish meal has been common practice for many years already, without any safety, health or environmental related concerns. EU retailers have been importing large volumes of aquaculture products from third countries, a significant volume of which have received aquafeed diets containing animal proteins. Source: www.aquafeed.com, 24 March 2014

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he first step in ice cream making is to mix the different ingredients and to pasteurise the mixture (kill pathogenic bacteria). The ice cream mixture is then homogenised and the emulsion drop diameter is around 2µm (measured with light scattering). The ice cream mix, which is an oil-in-water emulsion, is then cooled to below 5ºC. During subsequent ageing, emulsifiers adsorb onto the interfacial layer of the emulsion drops (important for destabilisation, i.e. for decreased surface tension and less repulsion between emulsion drops) and fat crystallises. One of the most important steps in ice cream making is the freezing step where the ice cream mix changes from being an oil-in-water emulsion to a state where many of the emulsion drops are destroyed and agglomerated and air is dispersed within the ice cream (50% of the ice cream is air). The temperature of the outgoing ice cream is usually around -5ºC. That means that a lot of water has turned into ice while air has been whipped into the system and also that more fat crystallisation has occurred. During this process, it is important that a big part of the fat in the emulsion interface has been destroyed and fat is available for the bulk phase. This is important so that free fat can build a network within the ice cream that stabilises the system, i.e. locks ice/water and stabilises bubbles. Also, if the fat is not agglomerated it will contribute poorly to the sensory properties (i.e. melting and flavour release). Ice cream contains 60% total water, but the proportion of ice and water changes markedly with temperature. For example, between -20ºC and -10ºC, more than 10% of the ice is molten. This represents more than six percent of the total weight of the ice cream. The reason for this is that the sugars and salts from milk solids present. Even at -30ºC there is still free water present. Therefore, when the temperature fluctuates, a lot of ice melts and recrystallises (even at temperatures as low as -30ºC). If this water/ice is not bound efficiently by agglomerated fat, it will form big crystals and the ice cream will be ruined. Source: Marcus Persson, AAK, “Nutritionally optimised ice cream fats”, published in Lipid Technology, March 2009.

rom grape flavoured snow to frozen seal blubber and mung beans, ice cream has been consumed worldwide since the Persian Empire. Arabs combined rosewater with milk and Eskimos mixed seal or moose blubber with berries. Civilisations have invented their own forms of ice cream over and over again until, today, the industry commands US$9bn in the US market. Ice cream became commercially available in the UK in the nineteenth century, when it gained its cone following the recipe of A B Marshall’s Book of Cookery in 1888.

Ice cream?

PHOTO: B AND E DUDZINSCY/FOTOLIA.COM

Making ice cream

Iced fat. An industry valued at over US$10bn in the USA alone, the production of ice cream absorbs nine percent of the country’s milk. Increasingly, however, vegetable oil is being used in place of dairy fat as, while the taste may not equal that of dairy-based products, it has surprising Traditionally, ice cream was produced using milk fats and fruit flavourings. Using dairy milk fat, according to the University of Guelph, increases the richness of the flavour in ice cream, produces a characteristic smooth texture by lubricating the palate, helps to give body to the ice cream, aids in good melting properties and, on the manufacturing side, helps to lubricate the freezer barrel – nonfat mixes are extremely hard on the freezing equipment. Using vegetable fats in place of dairy fats, however, has distinct advantages: these “frozen desserts” are cheaper to produce, contain less saturated fat and can be consumed by those who are lactose intolerant. In developing countries, using tropical oils such as palm oil or coconut oil allows for the cheaper manufacture of ice cream. Additionally, according to findings in the Journal of Food Science, as reported by foodnavigator.com, “blends [of ice cream] made of 60% to 80% solid fat were found to produce the

most desirable ice cream, as shown by the lowest rates of meltdown, as well as the smallest sizes for air bubbles.” In hot regions such as Southeast Asia, an ice cream that melts slowly is preferable. A publication on palm oil from the American Palm Oil website claims that palm-based non-dairy ice cream, using palm-based fats, is functionally and nutritionally desired and that palm oil is a common ingredient used in ice cream around the world. There are further limitations to using butter/ milk fat, which include cost, a hindered whipping ability, decreased consumption due to excessive richness and a high calorific value. Cost is a very important factor: an October 2013 Bloomberg Businessweek report claims that milk fat is around five times as expensive as fats derived from palm oil and coconut oil. “The wholesale price of milk rose 23% in the three years through August 2013, while crude palm oil (CPO) in Malaysia declined 6.5%.” Malin Thors Rosenquist, commercial product manager at AAK, explains that milk fat is most

28 OFI – AUGUST/SEPTEMBER 2014 www.oilsandfatsinternational.com

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commonly replaced by coconut oil or other lauric oils, such as palm kernel oil (PKO). “Lauric oils have a steep melt down, often desired in ice cream, but not so similar to cream/milk fat. Still, as the standard, many consumers are used to this. As lauric fats also have a very fluctuating price, a replacement product of a blend of oils or fats is much desired by many ice cream manufacturers.” Rosenquist adds that AAK produces blends, such as Akomix – which is also trans fat free – that aim to replace the milk fats that are either too expensive or contain too much saturated fat. While vegetable oils can improve the nutritional profile of ice cream, coconut oils can actually increase the amount of saturated fat found in a product. A “designer” fat, such as Akomix, addresses this problem by providing a good replacement and one that reduces saturated fat to as little as 25%. As dietary guidelines advocate a reduction in the intake of saturated fats and, as these fats must be labelled in the future (according to EU regulations), many manufacturers are trying to reduce the amount of saturated fat in their products. Other problems inherent in using milk fat, says Rosenquist, is that “milk also has a fluctuating quality with seasonal variations in composition that might affect production, whereas vegetable fat of good quality could even out seasonal variations.” Additionally, “with formulated blends of vegetable oil, melting characteristics, overrun and heat resistance can be tailored. The flexibility in new formulations with cream/milk fat is much lower, making product development more challenging.”

Squeeze it …

Traditional preferences

You get what you pay for A July 2013 Daily Mail article, “The chilling truth about ice cream”, assessed nine popular ice creams. It was found, unsurprisingly, that the more expensive the product, the higher content of dairy. UK supermarket Tesco’s own brand of vanilla ice cream, at 74p for two litres, contains partially reconstituted lactose reduced whey protein concentrate (from milk), sugar, vegetable oil, hydrogenated vegetable oil (HVO), dextrose, whey powder, emulsifier, mono- and di-glycerides of fatty acids, stabilisers (guar gum, sodium alginate), flavourings and colourings. As the article’s author, Victoria Moore, notes, there is no mention of vanilla as the ice ! 29 OFI – AUGUST/SEPTEMBER 2014

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In October last year, the use of vegetable oils in ice cream gathered attention in India, as the country’s Gujarat Cooperative Milk Marketing Federation launched a series of advertisements campaigning against their use. “Let the consumer decide and make an informed choice that “Yes, I’m buying frozen dessert, which has got vegetable oil [in it]”, says R S Sodhi, managing director of Gujarat Cooperative. However, consumers in India do not seem picky about what their ice cream contains, according to the Businessweek report, which notes: “In the five years ended 31 December [2013], Gujarat Cooperative’s share of India’s market for frozen treats fell to 31% from 35%, while Unilever’s rose to 21% from 17%, according to researcher Euromonitor International.” In response, Swati Gupta, an analyst at A C Choksi Share Brokers in Mumbai, says: “Unless there is greater awareness among consumers that frozen desserts don’t contain milk [fats], Unilever will continue to grow.” Unilever is the world’s largest producer of ice cream, owning brands such as Magnum, Cornetto, Ben & Jerry’s and Klondike. According to European Ice Cream Association, Euroglace, the market volume for industrially produced ice cream in the European Union (EU) is estimated at 2.2bn litres and valued at €9bn. Legislation on ‘western-style’ ice cream varies. In the UK, ice cream must contain five percent fat and not less than 2.5% milk fat protein, but may contain non-milk vegetable fats and oils, usually hydrogenated palm kernel oil (PKO). Only ice cream made from milk fats can be described as ‘dairy’ ice cream. In the USA, ice cream must contain at least 10% milk fat (around 7g)/120ml serving, 20% of milk solids by weight, must weigh no less than 4.5 pounds/ gallon and contain less than 1.4% egg yolk solids. Non-dairy ice cream is known as ‘mellorine’ in the USA, or frozen dessert. On average, the composition of ice cream in the USA is 38% weight total solids, of which 11% is milk solids, 12% milk fat, 15% sugar and 0.3% stabilisers and emulsifiers. In India, at least 10% of the weight of ‘regular’ ice cream must be milk fat; this drops to 2.5% for ‘medium’ ice cream, but there is no minimum stipulation for low fat ice cream. In Europe, Euroglace’s code of practice for edible ices typically applies. This requires ‘ice cream’ to contain fat (from dairy, eggs or vegetables), but does not set a minimum fat or protein level. Australian regulations require that ice cream contains 100g/kg of milk fat and 168kg/litre of food solids.

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30 OFI – AUGUST/SEPTEMBER 2014

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S PEC IALITY FATS & OILS

Ice cream components/ingredients Fat (milk or vegetable) Fat provides flavour, body and texture. The type and content of fat in ice cream is used to classify individual products according to certain regulations. ‘Dairy ice cream’ must contain a minimum of five percent milk fat and should contain no other fat than milk fat. ‘Ice cream’ must contain a minimum of five percent fat; however, it can contain vegetable fat. The types of vegetable fat most widely used are coconut oil, palm oil and palm kernel oil or a combination. Non-fat milk solids Non-fat milk solids include proteins (whey and casein), lactose and minerals. The proteins contribute to the structure of the ice cream and to the incorporation of air during processing. ‘Ice cream’ must contain a minimum of 2.5% milk protein. Lactose ! cream has never seen a vanilla pod – the vanilla is a synthetically produced chemical identical to real vanilla but produced in a lab. At the other end of the price scale is Green & Black’s Organic Vanilla Caramel Nut, which contains fresh cream, hazelnut, caramel, eggs and natural stabilisers. The price is £3.79 for 500ml. Even pricier – at £3.95 for 500ml – is “Hill Station Mango & Lime Ice

contributes to the sweetness and minerals are derived from the milk or cream used in production. Sugar and sweeteners Sugar is added to provide sweetness and improved texture. A combination of sugars (sucrose, glucose, fructose etc.) is normally used to obtain the desired sweetness of the final product. Sugars control the amount of frozen water in ice cream and therefore the softness of the final product. All ice cream contains some added sugar as, without sugar, the final product would be a solid block of ice. Sweeteners are permitted for use in ice cream production and are often used in lower calorie products. Flavourings and colourings Flavourings and colourings are added to cream”, a premium brand acquired by Losely Dairy Ice Cream in 2008 and considered by the author to be the best. Using all-natural ingredients, including fresh whole milk (27%), fresh double cream (23%), mango puree (21%), sugar, egg yolk, skimmed milk powder and lime puree, there are no chemically synthesised ingredients to be seen. Häagen Dazs, Walls Vienetta Vanilla and Ben

almost all ice cream to enhance the appearance and taste of the product, although now most of these flavourings and colourings are natural. Emulsifiers and stabilisers Emulsifiers help bind all the ingredients during the manufacturing process and improve the whipping quality during mixing. Stabilisers are added to almost all ice cream to improve air incorporation and they have a positive influence on the body and texture of the ice cream, contributing to the creaminess and melting properties of the finished product. Other ingredients Other ingredients such as fruit or chocolate (depending on the flavour required) may be added to provide additional flavour and enhance appearance. Source: The Dairy Council www.milk.co.uk

& Jerry’s were also assessed. Walls was found to contain reconstituted milk, water and sugar. The Ben & Jerry’s also contained water but all other ingredients were fresh – the chocolate chunks contained coconut oil. The chocolate in the Häagen Dazs also contained an unspecific vegetable oil but the rest of the ice cream was made using traditional ingredients. Charlotte Niemiec is OFI’s assistant editor

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Plant and technology round-up IncBio delivers biodiesel reactor to South America

ortuguese engineering company IncBio announced on 16 June that it had delivered a 120,000 tonnes/year ultrasonic biodiesel reactor for installation in South America. The reactor will be used in an existing plant originally supplied by one of the largest biodiesel plant manufacturers in the world, IncBio said. The company’s CEO José Marques, says: “By updating the existing technology, our client is bringing its plant back to profitability. Ultrasonic reactors not only speed up the conversion, by causing a reaction in seconds versus the typical hours of agitation or recirculation, but because they also require lower amounts of methanol and catalyst. “By reducing reaction time and methanol consumption, we greatly reduce energy consumption. We are seeing the interest in our technology growing by the day and this is not surprising, since existing plants are struggling to turn a profit, mostly because they are using 20th century technology, at a time when we’re already well into the 21st century and the technology has moved on substantially. The reactors end up paying for themselves very quickly, with the typical payback time being measured in months, not years.”

Ethanol plant for Finland

orth European Bio Tech Oy (NEB) is investing in a bioethanol plant on the Renforsin Ranta industrial estate in Kajaani, Finland, Biofuels International reported in August. The 10M litres/year plant, which utilises sawdust as a feedstock, will be leased to oil and bioproducts traders North European Trade Oy (NEOT). St1 Biofuels Oy, which is responsible for the design, permits and coordination, will operate the plant and, once it is completed, will deliver the ethanol facility. Construction is slated to begin in summer 2015, with production projected to start in 2016. A total investment of €40M (US$51.5M) will be provided, 30% of which will be covered by an investment subsidy granted by the Ministry of Employment and the Economy for biorefineries producing transport biofuels.

Lurgi completes plant for Calgren Renewable Fuels

urgi, a member of the Air Liquide group of companies, has completed construction and start-up of an ethanol facility for Calgren Renewable Fuels in California, USA, Biofuels International

Oils & Fats International reports on some of the latest projects, plant and technology news and developments around the world

Hydro Dynamics to provide bolt-ons for biodiesel plants

ydro Dynamics Inc (HD), USA announced on 6 June that it could supply complete biodiesel plants for the fuel ethanol industry incorporating its cavitation-based ShockWave Power Reactor (SPR – pictured above). “The majority of ethanol plants already recover their corn oil and much of this ends up converted to biodiesel,” the company said in a press release. “By integrating a biodiesel plant directly into the ethanol plant, a producer can realise many competitive advantages due to reduced transportation

reports. The Calgren plant is currently the only ethanol plant operating in the state. Calgren and Lurgi have worked together to design a plant that optimises the plant’s energy efficiency, while producing value-added co-products. The facility will produce 55M gallons/year of fuel ethanol and 400,000 tonnes/year of animal feed.

Alfa Laval presents new oil processing solutions

lfa Laval – a global supplier to the palm and vegetable oil industries – presented a variety of new processing solutions for palm and vegetable oils at the 5th International Conference and Exhibition of Palm Oil (ICE-PO) in Jakarta, Indonesia in May. " The D3 PRO all-in-one clarification/purification system with oil recovery is being adopted by more crude palm oil (CPO) mills across the world as an alternative to the traditional settling tank technology – with up to 30% reduction in water consumption and effluent. " To help palm oil (PO) millers meet the growing demand for PO, new, very large machines have

cost, shared infrastructure and the ability to merge co-product streams.” In order to offer ethanol plants a seamless ‘bolt-on biodiesel’ solution, HDI is expanding its existing relationships with World Energy of Boston and Phibro Ethanol Performance Group of Teaneck, New Jersey. World Energy produces, supplies and distributes biodiesel and HDI has previously partnered with World Energy’s WMG Services business unit for sale of the SPR to the biodiesel industry. The new venture expands the cooperation to include not only the SPR, but complete plants designed by WMG Services. Phibro Ethanol Performance Group is the exclusive marketer of LACTROL antimicrobial to the ethanol industry and HDI has been partnered with Phibro for commercialising the SPR to enhance yield. “Our SPR technology is well positioned in the biodiesel market as the most efficient technology available to drive the reaction to convert corn oil and other feedstocks into biodiesel,” said HDI vice president Doug Mancosky. “The SPR offers biodiesel producers significant production advantages over those using conventional reactors and mixing systems to drive the transesterification reaction.” been developed with separator capacities up to 18m3/hour. The new 16m3/hour PAPX 10 is a cost-efficient alternative to two smaller separators, Alfa Laval says, and latest innovations in decanter technology enables oil clarification of up to 90 fresh fruit bunches (FFBs)/hour with significantly reduced effluents and low energy consumption. " For treatment of palm oil mill effluent (POME), ALDEC decanters efficiently desludge anaerobic ponds, thus reducing the biochemical oxygen demand (BOD) and amount of suspended solids going to the aerobic ponds. Latest decanter design ensures energy savings of up to 30% due to a new liquid outlet. Final polishing with membrance bio-reactors (MBR) further ensures maximum reduction of BOD to meet final effluent discharge parameters. " Using a decanter to recover PO from empty fruit bunches (EFBs) separately, instead of mixing it with the freshly pressed oil, offers clear benefits. High performance Alfa Laval PANX three-phase decanters are purpose designed for recovering the oil from the EFBs as well as separating the water and solids from the liquor. " For PO refining, Alfa Laval has developed a process design where a high-speed separator for gum removal combined with pre-filtration !

32 OFI – AUGUST/SEPTEMBER 2014 www.oilsandfatsinternational.com

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33 OFI – AUGUST/SEPTEMBER 2014

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IN STRUM EN TATION PR OC ESSIN G & TEC H N OLOGY

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before bleaching can reduce the amount of spent bleaching earth for disposal and limit the amount of lost oil. Many solutions are available for optimum heat recovery, such as Alfa Laval’s spiral heat exchangers and double deck vacuum heat exchanger economiser. A new single deck version suitable for palm oil, economising at high capacities, will be launched at OFI Asia 2014. A new process for continuous deodorisation and deacidification – SoftColumn Dual-Strip – will also be presented for the first time at the exhibition. The new process is especially suitable for very large capacities and is a further development of Alfa Laval’s widely-used packed column technology. The Iso-Mix rotary jet head is a new method to melt crystals deposited inside crystallisers for fats modification. The new TocoBoost technology (patent pending) is designed to recover product streams enriched in micronutrients from the deodoriser vapour steam, such as squalene or tocotrienol antioxidants, which can be used for dietary supplements, health care and cosmetic products. Inedible and high free fatty acid (FFA) CPO, mill effluent and by-products from palm oil refineries can be turned into high value biofuel products with Alfa Laval’s Ageratec processes for transesterification and advanced glycerol treatment (AGT).

New inflatable seal hatch for terminal operators

WP Engineered Systems, USA has launched a new inflatable hatch seal, which it says solves a major challenge for terminal operators by effectively sealing an open hatch while top loading a railcar or tank truck. The company supplies fluid handling, management, monitoring and control solutions for the handling of hazardous materials such as petroleum-derived fluids from the refineries, including loading systems, rail and transport tank truck equipment, tank gauging equipment and automated fuel management systems, valves and fittings, under ground and above ground storage tank equipment, spill containers, overfill prevention devices, secondary containment sumps and flexible piping, fuel dispensing products, including swivels, breakaways, industrial and automatic dispensing nozzles for vapour recovery, gasoline, diesel, and alternative fuels, and clean energy fuelling nozzles and accessories.

Thailand’s Khonburi to build ethanol plant

honburi Sugar plans to invest Bt4.3bn (US$132M) to build an ethanol plant in Nakhon Ratchasima province on the Thai border and expand its sugarcane processing capacity to boost revenue by 20-30% in the next two years, targeting 10% growth for this year, reported The Nation.

IN BRIEF the Myanmar side of the Thai border, with the intention of serving both markets, Biofuels Digest reported in June, although it is not known what feedstock would be used nor what biofuel type would be produced.

DENMARK/SINGAPORE: Emulsifier specialist Palsgaard announced in January that it would install a margarine pilot plant at its facilities in Singapore (above). The 60kg/hour plant is a ‘mini factory’, with two tube chillers and two pin machines, allowing Palsgaard’s application technologists to simulate customer’s own production equipment, regardless of the type of margarine produced. THAILAND: Sahacogen (Chonburi) Plc plans to build a 600 tonnes/day biofuel facility on Company president Thaus Vanakornkul says he wants to lower the company’s heavy reliance on sugar for revenue by moving towards ethanol production. About a quarter of the investment will be used to construct a 200,000 litres/day ethanol factory and the remainder will be used to increase cane processing capacity by 12,000 tonnes/day, with construction expected to take 15 months. Khonburi expects revenue growth of around 5-10% over the Bt5.9bn (US$181.6M) earned last year, thanks to the improved quality of sugar cane, which resulted in a 10% higher yield of 106107kg/tonne of sugarcane. Sugar output this year is projected at 2.5M tonnes, slightly lower than last year’s 2.55M tonnes.

WORLD: US-based healthcare dosage solutions provider Capsugel announced late last year it would invest millions of dollars in upgrading and expanding three of its facilities to incorporate the company’s LIPIDEX technology. At its plant at Greenwood, USA it would install the technology to produce its solid lipid pellet products at commercial scale, while its Livingston, UK plant would be expanded and the company’s lipid expert system would be added to its formulation options. Upgrades to its Ploermel, France facility would include containment technology to allow formulation with hormonal actives, as well as high speed capsule printing capabilities. catalyst, though the exact percentage varies with different reactions. “Palladium by itself oxidises, which is not good because it slows down the catalysts”, lead author of the study, Zhun Zhao, says. “We found that the gold in our catalysts helps stabilise the palladium and prevents it from degrading. The catalysts in our tests had extremely high durability. Our best catalyst produced a glycerol product with higher purity and in less time than anything else we found in the literature.” He adds that the research opens up an exciting new area of exploitation for his lab: “Now that we understand how these work with glycerol, we can study reactions of other biomass molecules like glucose, a building block of plants.” A copy of the chemical science report is available at: http://pubs.rsc.org/en/content/ articlepdf/2014/sc/c4sc01001a

Palladium-gold catalyst a success for biodiesels Alfa Laval launches low a decade of research, Rice University chemical engineer, Michael Wong, has cost tantalum exchanger Following claimed in a study published in the Royal Society of Chemistry’s Journal Chemical Science that palladium-gold nanoparticles are excellent catalysts for converting biodiesel waste such as glycerol – a waste byproduct of biodiesel production – into high-value chemicals, Biodiesel Magazine reported in July. The global market for industrial catalysts is projected to reach US$19bn by 2016, the report says. Palladium and gold – and mixtures of the two – are recognised as extremely effective catalysts. Gold is valued because it does not tarnish or oxidise, a process that can shorten a catalyst’s lifespan. Palladium is prized because it is especially good at binding and inducing molecules to reduce or oxidise. Wong and his colleagues have shown that covering 60-80% of the gold’s surface area with palladium typically produces the ideal

eat transfer, separation and fluid handling company Alfa Laval has launched a new range of tantalum heat exchangers that offer the exceptionally high corrosion resistance of a solidtantalum heat exchanger but at a much lower investment cost, Biodiesel Magazine reported in March. The combined benefits of lower capital cost, long lifetime and minimal maintenance requirements result in significantly lower total cost of ownership compared to heat exchangers made of high-grade alloys, graphite, silicon carbide or glass. Tantalum is one of the most corrosion-resistant metals, but it is expensive. Alfa Laval’s heat exchangers comprise stainless steel that has undergone a unique treatment, where a thin layer of tantalum is metallurgically bonded to all surfaces exposed to corrosive materials. #

34 OFI – AUGUST/SEPTEMBER 2014 www.oilsandfatsinternational.com

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THERE ARE ABOUT 850,000 INDIANS IN BRAZIL BELONGING TO 240 TRIBES ON 600 RESERVES SCATTERED ACROSS THE COUNTRY, OCCUPYING 13% OF BRAZIL’S LAND MASS

Pressure on Indians Anxious to cultivate more land, the powerful ‘ruralists’ lobby in Brazil has turned its attention to native Indian groups, pressuring the government to change the rules governing demarcation of Indian lands. Patrick Knight writes

steady rise in earnings from the export of grains and meats – and the consequent increase in demand for land on which to produce them – has caused longstanding tensions between landowners and Indians in Brazil, which has worsened in recent years. The figures demonstrate how much additional land is required. This year, more than 90M tonnes of soyabeans, currently planted on almost 30M ha of land, will be harvested in Brazil, 11% more than in 2013. In 2013, soya was planted on 1.5M ha more than the year previously, an increase of six percent. Additionally, a record 26M tonnes of maize was exported last year and 6.5M tonnes of beef, pork and chicken was exported as well. The export of soyabeans, meal and oil will earn Brazil more than US$30bn this year; a third of all

export earnings will be taken by the farm sector. Ten percent more beef was also shipped, taking earnings from the export of all meats to US$15bn. Agribusiness earnings are now responsible for more than 40% of all Brazil’s export earnings, while earnings from other items – notably manufactured goods – have fallen steadily. As farm sector exports become increasingly important, the ‘ruralists’ – as the lobby formed by members of the National Federation of Agriculture (CNA) is known – have been pressing the government to change the rules regarding the demarcation of Indian lands. Many of these demarcations remain to be finalised, even decades after negotiations first started. The ‘ruralists’ claim that Indians have been given too much priority, at the ruralists’ expense, in recent years, and want this to change.

Brazil’s latest constitution, dating from 1988, envisaged that the demarcation of all Indian reserves should have been completed in 1993. Nevertheless, dozens of disputes have not been resolved. Conflicts between Indians and settlers – at their most severe in Mato Grosso do Sul state, home to 20M beef cattle, but where large tracts of land are now being switched to growing more profitable crops – date back more than 100 years. Often by devious means, early settlers obtained documents that gave them the right to cultivate the land, even though the Indians regard it as their own. About 50 Indians are now killed each year in Brazil, a few as a result of disagreements within tribes, but most in confrontations with settlers. Landowners have recruited army guards to protect what they regard as their property, and police or soldiers are often called in to keep the two sides apart.

Overruling the forest code The powerful ‘ruralists’ lobby elects dozens of deputies to congress in Brasilia and it persuaded the government to water down the latest version of the ‘Forest Code’. Among other things, the code determines how much land close to rivers or on steep hillsides – land that is vulnerable to flooding or corrosion – should be re-forested, which may involve some loss of cultivated land. Having got much of what they wanted with the new code, the ruralists have now turned their

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SOU TH AM ERIC A

attention to another target, which they claim handicaps expansion: the Indians. There are now about 850,000 Indians in Brazil, belonging to 240 tribes scattered throughout the entire country. The majority live on about 600 reserves that, together, occupy more than one million square kilometres, or around 13% of Brazil’s land mass. More than 80% of these reserves are in the basin of the Amazon River, which itself covers more than half of Brazil. Amazonia includes the state of Mato Grosso, now the leading soyabean producer, and Pará, which contains Brazil’s second largest beef cattle herd. The area being officially demarcated has fallen in the past few years, largely reflecting the increased strength of the farm lobby and the fact that the Workers Party (PT), which has governed Brazil for the past 10 years, has much more sympathy for people who live and work in cities and for large-scale farmers, than for Indians. While five million hectares was designated as Indian land between 2003 and 2007, when the Social Democratic party ruled, the area fell to half that in the eight years of the PT government, led by Luiz Inacio ‘Lula’ da Silva. The present PT government, led by Dilma Rousseff – under pressure from the ruralists – has marked out only 400,000ha.

Redrawing the lines of the land Last year, the government decided that present formula for marking land should changed. It is currently the responsibility of Indian Foundation, Funai, whose officials

the be the are

chosen by the government and advised mainly by anthropologists. The government proposed that officials from half a dozen ministries should also be consulted and their conclusions sent to the Ministry of Justice, which would make the final decision. The ruralists would like congress to be able to determine policy. But, concerned about hostile reaction (not least from abroad), to a measure that would allow politicians who usually have a very short-term view to determine the issue, the president has not accepted this, and the situation is deadlocked. Presidential elections are to be held in October this year and the current incumbent, Rousseff, needs the backing of 10 separate parties if she is to win. The PMDB party, to which most ruralist deputies belong, is playing hard to get and has asked to be given control of more ministries in exchange for support. Environmentalists point out that the Indian reserves, together with the 300 or so national parks or preserved areas that occupy far more land than that claimed by Indians, are important for the protection of native forests and the flora and fauna they contain. These suffer greatly once monoculture takes over and habitats are destroyed.

Placing preservation first Preserving the native forest is also important for preventing climate change, as it is claimed that, once the trees are cut down, temperatures rise, less

rain falls and wind patterns change. After falling steadily for the past 10 years, 50% more natural forest has been cleared in the past 12 months than in the previous year, another cause for concern. The amount of native forest being cleared – much of it illegally – has fallen for the past 10 years. This is a result of better policing and the enforcement of measures aimed at ensuring that crops grown illegally on the cleared land, or the cattle raised in such areas, could not be sold through the usual channels. Any land cleared illegally would not be eligible for finance from state-owned banks either. Last year’s clearance was largely the result of several new roads being paved, something that will allow grains, notably soya, to reach riverside ports more easily than now. Such roads also encourage settlers to move in and clear land, which makes life easier for those wanting to cut down valuable trees in the forest. Clearances to allow new hydroelectric power stations to be built have also increased in the past few months, while all vegetation in the area where transmission lines lie is also cleared. The pressure from the ruralists wanting to plant crops or raise cattle is not the only source of risk for Indians. As well as new roads, railways and dams, together with work on rivers to make them navigable for barges, there is also pressure from miners looking to develop cassiterite, used to make tin, as well as ! for gold and diamonds. Patrick Knight is a freelance journalist based in Brazil

37 OFI – AUGUST/SEPTEMBER 2014 www.oilsandfatsinternational.com

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STATISTIC S

PALM OIL PRODUCTION AND EXPORT (‘000 TONNES) STATISTICAL NEWS FROM MINTEC Palm oil production Global palm oil production is forecast to reach a record 62.8M tonnes in 2014/15, up six percent from 59.3M tonnes in 2013/14. The rise is predominantly due to increasing production from Indonesia, the world’s largest palm oil producer. Production in Indonesia in 2014/15 is forecast up by eight percent year-on-year (YOY) to 33.5M tonnes. Global palm oil ending stocks for 2014/15 are forecast to increase by 10% YOY to 8.8M tonnes.

PALM OIL PRICES (US$/TONNE)

Palm oil prices Palm oil prices have been driven down by a combination of a fall in soyabean oil prices, ample global supply and weakening demand from major consumers. Shipments of palm oil and palm kernel oil to India, the world’s second largest consumer, fell 37% YOY between January and June to 2.1M tonnes. In addition, forecasts for record soyabean and corn harvests in 2014/15 have added downward pressure to palm oil prices.

Soyabean vs palm oil differential

SOYABEAN VS PALM OIL PRICES, ROTTERDAM (US$/TONNE)

PRICES OF SELECTED OILS (US$/TONNE) 2012

2013

Apr 14

May 14

Jun 14

Jul 14

Soyabean Crude Palm Palm Olein Coconut Rapeseed Sunflower Palm Kernel

1,230 1,014 997 1,122 1,240 1,256 1,119

1,052 854 803 948 1,080 1,108 904

989 908 834 1,359 1,021 953 1,297

968 888 816 1,410 948 945 1,256

931 858 789 1,378 919 931 1,224

895 836 768 1,222 880 902 1,099

Average price INDEX

1,140 270

964 228

1,052 249

1,033 245

1,004 238

943 223

Soyabean oil prices fell throughout the first half of 2014 as production is forecast to reach a record high for 2014/15, largely due to improved yield prospects for soyabeans in the USA, the world’s largest producer and exporter. Soyabean oil production for 2014/15 is forecast to reach 46.8M tonnes, up from 44.9M tonnes in 2013/14. The price differential between soyabean oil and palm oil has narrowed from the same period last year as a result of higher production.

Mintec is the principal independent source of global information for commodities and raw materials. We specialise in helping supply chain professionals minimise risk. We provide services that range from detailed market reporting and consultancy projects to packages of sophisticated tools for analysing and interpreting market information. Mintec supports leading suppliers, processors, retailers, service providers and major end-users across a wide range of industrial and consumer goods sectors with statistical information and expert market analysis. Tel: +44 (0) 1628 851313 E-mail: sales@mintec.ltd.uk Website: www.mintecglobal.com

38 OFI – AUGUST/SEPTEMBER 2014 www.oilsandfatsinternational.com

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OFI Asia 2014 Kuala Lumpur Convention Center Kuala Lumpur, Malaysia 5-7 November 2014

Exhibition catalogue

Organised by Sponsors

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Global Solutions Provider Meet De sm at OFI As et Ballestra ia Stand #1 2014 ! 7 PREPARATION Cleaning • Cracking • Dehulling Cooking • Flaking • Expanding ROSEDOWNS PRESSING Full Pressing • Prepressing EXTRACTION Extracting • DTDC • Flash DT Distillation • Solvent Recovery • Zero Effluent REFINING Degumming • Neutralising • Bleaching Winterising • Deodorising • Ice Condensing FAT MODIFICATION Fractionation • Hydrogenation • Interesterification OLEOCHEMICALS Fatty Acids • Fatty Alcohols • Methylesters Glycerine • Biodiesel

SURFACTANTS Anionics Sulphonation / Sulphation • Vacuum Neutralization • Drying Non Ionics Ethoxylation / Propoxylation • Alkanolamides Amphoterics & Cationics Betaines • Esterquats • Aminoxides DETERGENTS Powder Spray Drying Tower process • NTD (non tower/agglomeration) process Liquids Batch / Continuous CHEMICALS Sodium Silicate • Sulphuric Acid • Sodium & Potassium Sulphate Zeolite • Sodium Tripolyphosphate • Single & triple Superphosphates Phosphoric Acid • NPK • wPAC (Poly Aluminium Chloride) Linear Alkyl Benzene

Science behind Technology

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EXHIBITION CATALOGUE

5 November – 7 November 2014

Kuala Lumpur Convention Center | Malaysia

he oils and fats industry is gearing up for the fifth OFI Asia 2014 exhibition, to be held at the Kuala Lumpur Convention Center (KLCC) from 5-7 November 2014. The OFI Asia 2014 exhibition will showcase the latest in oils and fats products and services, giving exhibitors the opportunity to network, meet friends old and new and do business in the vibrant city of Kuala Lumpur. Key questions answered The OFIC 2014 Congress, organised by the Malaysian Oil Scientists’ and Technologists’ Association (MOSTA), will run alongside the exhibition. Delegates at this year’s congress will hear updates on genomics and its role in increasing productivity, major challenges in the industry, key environmental issues,

the role of oils and fats in health, and recent innovations. How close is Indonesia to succeeding in its bid for 100% certification? How will its B10 mandate affect the industry? How are world prices set over the next year? What is the latest on sustainable practice? These, and many more topics will be presented by expert speakers, including Academician Emeritus Prof Tan Sri Datuk Dr Augustine S H Ong, President, MOSTA; Dr Mohd Emir Mavani Abdullah, Group President & Chief Executive Officer, Felda Global Venture Holdings Sdn Bhd; Thomas Mielke, Oil World, Germany; and Datuk Dr Choo Yuen May, Director General, Malaysian Palm Oil Board (MPOB).

oil production and export and Kuala Lumpur provides the perfect setting for our international exhibition. On behalf of the OFI team, we wish you a successful and rewarding show.

A prime destination Malaysia is a major hub for global palm

C1 C3

Steve Diprose, Vice President, Commodities, Quartz Business Media CONTENTS

Welcome

ABOUT THE ORGANISER Oils & Fats International is the market leading magazine dedicated to commercial issues within the oils and fats industry. Since 1985, the magazine has gained a reputation for presenting key issues with a business focus and continues to provide an authoritative and objective source of information for everyone involved in this multi-billion dollar industry. Oils & Fats International is part of Quartz Business Media, UK, a leading international exhibition and publishing company.

OFI ASIA 2014

CATALOGUE.indd 2

EXHIBITION CATALOGUE

OFI Asia 2014 cover Steve Diprose welcomes visitors to OFI Asia 2014

Show guide C4 C8 C10

OFIC 2014 programme Floorplan and listings Exhibitor profiles

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OFIC PROGRAMME Kuala Lumpur Convention Center | Malaysia

5 November - 7 November 2014

Global Oils and Fats: Addressing Major Challenges TUESDAY 4 NOVEMBER 8.00-17.00: Registration, Hall 5, West Wing, Kuala Lumpur Convention Center (KLCC) 8.00: Technical visit registration Hall 5, KLCC 9.00-16.00: TECHNICAL VISITS A. Malaysian Palm Oil Board (MPOB) B. AAR Tissue Culture Laboratory C. KLK Oleochemicals WEDNESDAY 5 NOVEMBER

11.30-12.00: Indonesian Palm Oil Industry Outlook 2025: Challenges and Opportunities Daud Dharsono, President Director, PT Smart Tbk, Indonesia 12.00-12.30: Agro-commodities: What are the key long-term structural trends that will drive the agricultural complex and its implications? Sunny George Verghese, Group MD & CEO, OLAM International Ltd, Singapore 12.30-13.00: Panel discussion 13.00-14.30: LUNCH – HALL 5

8.00-17.00: Registration, Hall 5, West Wing, Kuala Lumpur Convention Center

14.30-15.15: 2 Raja Alias Foundation Lecture – “Vision of Felda Global Ventures and how it impacts the downstream industry” Dr Mohd Emir Mavani Abdullah, Group President & CEO, Felda Global Venture Holdings Sdn Bhd, Malaysia nd

MODULE 1: Economics, marketing and policy Chairpersons: M R Chandran, Council Member, MOSTA; Mohammad Jaaffar Ahmad, CEO, The Palm Oil Refiners Association of Malaysia (PORAM), Malaysia 9.00-9.15: Welcome address Academician Emeritus Prof Tan Sri Datuk Dr Augustine S H Ong, President, MOSTA 9.15-10.00: The 15th Tan Sri Dato Seri B Bek-Nielsen Foundation Lecture 2014 “Global Oils & Fats: Addressing Major Challenges”, Dr Patrick Donnelly, CEO, American Oil Chemists’ Society (AOCS), USA 10.00-10.30: The vegetable oils market in 2015 and beyond Thomas Mielke, ISTA Mielke GmbH, Oil World, Germany 10.30-11.00: BREAK – HALL 5 11.00-11.30: FTAs and you Datuk Dr Rebecca Fatima Sta Maria, Ministry of International Trade and Investment (MITI), Malaysia

15.15-17.00: Viewing of OFI Asia 2014 Exhibition and coffee break – Hall 5 17.00-19.00: Evening forum – strategic development for oils and fats: sustainability and economic challenges Moderator: M R Chandran, Council Member, MOSTA Panel members: To be announced THURSDAY 6 NOVEMBER

9.30-10.00: Official opening of OFI Asia exhibition and tea break MODULE 2: Oils and fats and the environment Chairperson: Teoh Cheng Hai, Director, Helikonia, Malaysia 10.00-10.30: Quantification of greenhouse gas emissions by subsystems along the oil palm supply chain using the life cycle approach Dr Vijaya Subramaniam, Malaysian Palm Oil Board (MPOB), Malaysia 10.30-11.00: Technological advances in the capture and utilisation of methane gas emissions for palm oil mill effluent treatment plants Dr Tong Soo Long, Novaviro Technology Sdn Bhd, Malaysia 11.00-11.30: Energy recovery from palm oil wastes – a national model for waste management strategies Puan Sri Dr Liana Low, Bell Group of Companies, Malaysia 11.30-12.00: Is oil palm cultivation on peat land sustainable? Dr S Paramananthan, Param Agricultural Soil Survey Sdn Bhd, Malaysia 12.00-12.30: Best management practices to minimise the CO2 emission from oil palm on peat soils Faizal Parish, Global Environmental Centre (GEC), Malaysia

19.00-20.00: Refreshments

12.30-13.00: Panel discussion

9.00-9.10: Welcome address Academician Emeritus Prof Tan Sri Datuk Dr Augustine S H Ong, President, MOSTA

13.00-14.30: Lunch – Hall 5

9.10-9.30: Opening address and launching of MOSTA

OFI ASIA 2014

CATALOGUE.indd 3

Commemorative Book

EXHIBITION CATALOGUE

MODULE 3: Oils and fats and health Chairperson: Dr Kanga Rani Selvaduray, Senior Research Officer, Nutrition Unit, PDAS Division, Malaysian Palm Oil C4

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OFIC PROGRAMME

5 November - 7 November 2014

Kuala Lumpur Convention Center | Malaysia

Global Oils and Fats: Addressing Major Challenges Board (MPOB), Malaysia 14.30-15.15: Plentary lecture – the role of oils and fats in obesity Prof Gary Frost, Imperial College London, UK 15.15-15.45: Bad & good vitamin E Dr Gee Ping Tou, Executive Director, Palm Nutraceutical Sdn Bhd, Malaysia 15.45-16.15: The radiosensitisation of tumour cells and the radioprotection of normal tissue tocotrienols Dr Sunil Krishnan, MD Anderson Cancer Centre, USA 16.15-17.00: Break – Hall 5 17.00-17.30: Sceptics on diet and coronary heart disease Emeritus Prof Steward Truswell, University of Sydney, Australia 17.30-18.00: Sceptics on diet and coronary heart disease Emeritus Prof Steward Truswell, University of Sydney, Australia 18.00-18.30: Panel discussion 20.00-23.00: OFIC 2014 Gala Dinner at Grand Hyatt Kuala Lumpur Guest of honour: Yang Berhormat Datuk Amar Douglas Uggah Embas, Minister of Plantation Industries and Commodities FRIDAY 7 NOVEMBER MODULE 4: Recent innovative technologies Chairperson: S Krishnan, Vice-President, MOSTA 9.00-9.45: 2nd Tun Dr Lim Keng Yaik Foundation Lecture – “Impact of latest technology advances on the oils and fats industry” Dr Marc Kellens, Group Technical Director, Desmet Ballestra Group (DSB), Belgium

SESSION 4A: Advances in palm oil milling technology Chairperson: Lee Keong Hoe, Executive Director, IHMS Sdn Bhd, Malaysia

surfactants for the detergent industry Yoshitaka Miyamae, Lion Corporation, Japan

9.45-10.15: Megasonic technology for the oil palm industry Dr Mary Ann Augustin, Research Program Leader (Food Science), CSIRO Animal, Food and Health Sciences, Australia

15.30-15.45: Panel discussion

10.15-10.45: Methane avoidance at palm oil mills Dr Puah Chiew Wei, Head of Sustainability and Climate Change, Malaysian Palm Oil Board (MPOB), Malaysia 10.45-11.00: Panel discussion 11.00-11.30: Break – Hall 5 SESSION 4B: Upstream and downstream developments Chairperson: Dr Yeong Shoot Kian, Head of Synthesis & Product Development Unit, Advanced Oleochemical Technology Division, Malaysian Palm Oil Board (MPOB), Malaysia 11.30-12.00: The unravelling of the oil palm genome Dr Ravigadevi Sambathamurthi, Malaysian Palm Oil Board (MPOB), Malaysia 12.00-12.30: UAV imagery for plantations Tay Seng Heng, Applied Agricultural Resources Sdn Bhd, Malaysia 12.30-12.45: Panel discussion

15.45-16.15: Malaysia’s experience: Research and development in sustainable bioenergy and the success story of the biofuel programme Datuk Dr Choo Yuen May, Malaysian Palm Oil Board (MPOB), Malaysia 16.15-16.45: The implementation of the bioenergy programme in Indonesia Paulus Tjakrawan, Indonesian Biofuel Producers Association, Indonesia 16.45-17.15: Changing global regulations and their impacts on biofuel trade Maëlle Soares Pinto, Global Biofuels Center & Alternative Fuels Service, Hart Energy Research & Consulting, USA 17.15-17.30: Panel discussion 17.30-17.45: Closing address Academician Emeritus Prof Tan Sri Datuk Dr Augustine S H Ong, President, MOSTA 17.45-18.15: Break – Hall 5 END OF CONFERENCE

12.45-14.30: Lunch – Hall 5 14.30-15.00: How to minimise formation of 3-MCPD and glycidyl esters during palm oil refining Wim De Greyt, Desmet Ballestra Group, Belgium 15.00-15.30: Palm oil-based

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SESSION 4C: Commercial developments in bioenergy Chairperson: Datuk Dr Choo Yuen May, Director General, Malaysian Palm Oil Board (MPOB)

EXHIBITION CATALOGUE

Note: Programme and times are subject to change

19/09/2014 14:55

OFI goes digital

Exhibition catalogue inside Aug/Sep 2014 ! Vol 30 No 7 www.oilsandfatsinternational.com

www.ofimagazine.com

SPECIALITY FATS AND OILS Ice cream? Iced fat.

SUSTAINABILITY

Securing sustainable soya Cover_feature.qxp 27/05/2014 09:47 Page 1

COVER.indd 1

Biofuels Issue

19/09/2014 16:28

June 2014 ! Vol 30 No 5 www.oilsandfatsinternational.com

March 2014 ! Vol 30 No 3 www.oilsandfatsinternational.com

April/May 2014 ! Vol 30 No 4 www.oilsandfatsinternational.com

USA

Fuelling the economy

FAR EAST

Indonesia’s “master stroke”

FEEDSTOCKS

Halophytes: a biofuel breakthrough

CASTOR OIL

Deadly opportunity

OLIVE OIL

MARGARINE & SPREADS Bringing butter back

TRADING & PRICE FORECASTING Industry faces uncertain times

Maintaining standards

MIDDLE EAST

Staying afloat

45 OFI – JANUARY 2014 www.oilsandfatsinternational.com

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FLOORPLAN & LISTINGS Kuala Lumpur Convention Center | Malaysia

OFI ASIA 2014 EXHIBITION FLOORPLAN

Refreshment Networking Zone

COMPANY

STAND NO

BDI – BIOENERGY INTERNATIONAL AG

STAND NO

18 9

BÜHLER

BUSS CHEMTECH AG

DESMET BALLESTRA (MALAYSIA) SDN BHD

DNR PROCESS SOLUTIONS

EMEC ENTERPRISE SDN BHD

HTI-GESAB GMBH

INTERSONIKON

CHEMTECH INTERNATIONAL – TMCI PADOVAN

FENIX PROCESS TECHNOLOGIES

GROUP

FUNDICIONES BALAGUER

CPM SKET GMBH

CROWN IRON WORKS COMPANY

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STAND NO

GEKAKONUS GMBH

OFI ASIA 2014

COMPANY GERSTENBERG SERVICES A/S

BALAGUER ROLLS CO

COMPANY

KAY JAY CHILL ROLLS

KLK OLEO

KOERTING HANNOVER AG

EXHIBITION CATALOGUE

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5 November - 7 November 2014

COMPANY

STAND NO

SPX

TMCI PADOVAN – CHEMTECH

UNICORP ENGINEERING

YENAR AS

Notes

Refreshment Networking Zone

COMPANY

STAND NO

LIPICO TECHNOLOGIES PTE LTD

COMPANY

STAND NO

OILS & FATS INTERNATIONAL

OILTEK SDN BHD

25 49

MAHLE INDUSTRIAL FILTRATION BV

ORION BIOSAINS

MATRIX FLAVOURS & FRAGRANCES

OXFORD INSTRUMENTS INDUSTRIAL

MOSTA

ANALYSIS

MYANDE GROUP

NATURAL BLEACH SDN BHD

NEL HYDROGEN

PLT SCIENTIFIC SDN BHD

PMI

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EXHIBITION CATALOGUE

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EXHIBITOR PROFILES Kuala Lumpur Convention Center| Malaysia

5 November - 7 November 2014

Balaguer Rolls is a manufacturer of cracking and flaking rolls for the oil processing industry. The company says 95% of worldwide original equipment manufacturers fit Balaguer rolls on their machines due to its quality, reliability and performance. It produces roll sizes up to 1,100mm diameter, 15 tonnes of weight and a maximum length of 2,500mm.

Buss ChemTech is recognised by major chemical producers as a world-leading process technology supplier for gas/ liquid reactions, including hydrogenation, alkoxylation, amination, methylation, quarternisation and many others. Its technology is employed extensively in many markets, including oleochemical derivatives. It provides development and engineering services and turn-key installations.

Crown Iron Works provides complete design and supply services for oilseed and vegetable oil processing worldwide. Crown specialises in preparation, extraction, refining, biodiesel and oleochemical technology. Crown has additional offices in Argentina, Brazil, China, England, Germany, Honduras, Mexico, Russia and Ukraine.

Desmet Ballestra (Malaysia) Sdn Bhd Level 3, No 37, Jalan Pelukis U1/46, Section U1, Temasya Industrial Park, Glenmarie Shah Alam, Selangor 40150 Malaysia Tel: +603 516 39200 Fax: +603 516 39300 E-mail: kkk@desmet.com.my Website: www.desmetballestra.com Stand contact: Mr K K Khoo

Balaguer Rolls Co (Fundiciones Balaguer SA) Poligono Industrial “Los Vasalos” Onil, Alicante 03430 Spain Tel: +34 965 564 075 / 965 564 850 Fax: +34 965 564 966 E-mail: david@balaguer-rolls.com Website: www.balaguer-rolls.com Stand contact: David Balaguer Perez

BDI - BioEnergy International AG Parkring 18, Grambach, Austria 8074 Austria Tel: +43 316 4009 100 E-mail: sales@bdi-bioenergy.com Website: www.bdi-bioenergy.com Stand contact: Dr Hermann Stockinger BDI is a market and technology leader for the construction of tailor-made biodiesel plants based on its patented multi-feedstock process it developed in house. Its technology enables biodiesel to be produced from different raw materials such as palm sludge oils and palm oil mill effluent.

Bühler Gupfenstrasse 5 Uzwil, SG 9240 Switzerland Tel: +41 71 9551111 Fax: +41 71 955 2896 E-mail: isabel.maganto@buhlergroup.com Website: www.buhlergroup.com Stand contact: Carsten Petry Bühler is specialised in oilseeds preparation, providing processes and machines for oilseeds. The company says it has sophisticated know-how and modern technologies.

Buss ChemTech AG Hohenrainstrasse 12A Pratteln 4133 Switzerland Tel: +41 61 825 6317 Fax: +41 61 825 6737 E-mail: thomas.blocher@buss-ct.com Website: www.buss-ct.com Stand contact: Thomas M Blocher

Chemtech International Limited –TMCI Padovan Group Crown House, 1A High Street Theale, Berkshire RG7 5AH United Kingdom Tel: +44 1189 861222 Fax: +44 1189 860028 E-mail: nigel@chemtechinternational.com Website: www.chemtechinternational.com Stand contact: Nigel Smales

Chemtech International Ltd is a manufacturing and process engineering company supplying the margarine, bakery, gelatine, cocoa, pastry and confectionery industries.

The Desmet Ballestra Group is a world leader in the fields of engineering and supply of plants and equipment for the oils, fats and animal feed industries; the detergents, surfactants and related chemical industries; and the oleochemical and biodiesel industries.

CPM SKET specialises in the design, engineering, erection and commissioning of equipment and complete plants for the edible oils and oleochemicals industries, including plants for the processing of vegetable oils and animal fats for the production of alternative fuels, such as biodiesel, from renewable resources.

DNR Process Solutions provides integrated industrial IT and automation solutions and, at OFI Asia, will exhibit its integrated process control and automation system (IPCAS), tank farm storage inventory management system (POIMS), material movement, tracking, stock (PALM TRACK), accounting, quality and reconciliation system and Max Pro, its plant maintenance management system.

CPM SKET GmbH Schilfbreite 2, Magdeburg 39120 Germany Tel: +49 391 68 2249 Fax: +49 391 68 4233 E-mail: winfried.koenig@cpm-sket.de Website: www.cpm-sket.de Stand contact: Winfried König

OFI ASIA 2014

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Crown Iron Works Company 2500 West County Road C Roseville, MN 55113 USA Tel: +1 651 639 8900 Fax: +1 651 639 8051 E-mail: danderson@crowniron.com Website: www.crowniron.com Stand contact: Dan Anderson

EXHIBITION CATALOGUE

DNR Process Solutions Pte Ltd 1 Bukit Batok Street 22 #01-06 GRP Building, Singapore 659592 Tel: +65 6896 3063 E-mail: consult@dnrps.com Website: www.dnrps.com Stand contact: Prafullit Sharma

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EXHIBITOR PROFILES Kuala Lumpur Convention Center | Malaysia

EMEC Enterprise Sdn Bhd PT 13532 Jalan Banting Pandamaran Pelabuhan Klang, Selangor Darul Ehsan 42000, Malaysia Tel: +603 3168 6300 Fax: +603 3168 0900 E-mail: charlie@emec-corp.com Website: www.emec-corp.com Stand contact: Charlie Lok

Gerstenberg Services A/S Vibeholmsvej 21 PO Box 196 Broendby 2605, Denmark Tel: +45 43 43 20 26 Fax: +45 43 43 20 28 E-mail: info@gerstenbergs.com Website: www.gerstenbergs.com Stand contact: Mette G Nielsen

5 November - 7 November 2014 Gerstenberg Services A/S – a subsidiary of Gerstenberg & Agger A/S – offers a wide range of spare parts for perfector SSHEs for margarine production and has recently designed a new flexible tubular SSHE, which will soon be introduced. News on this machine will be presented at OFI Asia 2014.

EMEC Enterprise Sdn Bhd (EMEC) is a leading manufacturer and service provider for weighing, filling, bagging, packaging, oil and food process plant and plant automation. It provides endto-end solutions to meet its customers’ requirements.

Fenix Process Technologies Pvt Ltd K-6/1 “Malini”, Near Mangeshkar Hospital Erandwane, Pune, Maharashtra 411004, India Tel: +91 20 65008772 Fax: +91 20 25458454 E-mail: sankar@fenix.in Website: www.fenix.in Stand contact: Sankar Ghosh Founded in 2006, Fenix is proficient in providing both design and equipment solutions along with process technologies for the edible oils and fats sector. It provides turnkey projects and process technologies for edible oil refining, biodiesel production, chemicals distillation and use oil rerefining.

GekaKonus GmbH Siemensstr. 10 Eggenstein-Leop. 76344 Holger Niendorf, Germany Tel: +49 172 7141068 Fax: +49 721 9437444 E-mail: holger.niendorf@gekakonus. net Website: www.gekakonus.net Stand contact: Holger Niendorf Established in 1954, GekaKonus GmbH has more than 60 years’ experience in heating technology and more than 45 years’ experience with high pressure steam boilers for process heating in the edible oil industry and thermal oil process heating.

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EXHIBITION CATALOGUE

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CMY

EXHIBITOR PROFILES

5 November - 7 November 2014

Kuala Lumpur Convention Center | Malaysia

HTI-Gesab provides high temperature systems for the process industry and provides heaters, including oil/gas fired thermal oil boilers, oil/gas fired hot water boilers and oil/gas fired high pressure steam boilers (natural circulation boilers).

KLK Oleo says it provides excellence in the oleochemicals industry.

Lipico Technologies Pte Ltd

MOSTA has two types of membership: members and fellows. Benefits of membership are free distribution of MOST magazines and entitlement to a member fee for all events organised by MOSTA.

HTI-Gesab GmbH Sauerbruchstrasse 9-11, Ellerau, Schleswig Holstein 25479 Germany Tel: +49 4106 7009-0 Fax: +49 4106 7009-99 E-mail: a.sievers@hti-ellerau.de; info@hti-ellerau.de Website: www.hti-ellerau.de Stand contact: Olaf Bornholdt

Intersonikon

KLK Oleo Level 8, Menara KLK, No.1, Jalan PJU 7/6, Mutiara Damansara, Petaling Jaya, Selangor 47810 Malaysia Tel: +603 780 98833 E-mail: enquiry@klkoleo.com.my Website: www.klkoleo.com Stand contact: Vincent Boey

Mahle Industrial Filtration (Benelux) BV Schinkelwaard 20, Alkmaar Noord-Holland 1824 DS The Netherlands Tel: +31 622 796572 Fax: +31 72 512 52 07 E-mail: hans.kok@nl.mahle.com Website: www.mahle-industry.com Stand contact: Hans Kok

Kay Jay Chill Rolls Pvt Ltd 27 Industrial Area Phase - 11 Panchkula, Haryana 134113 India Tel: +91 987 800 0859 Fax: +91 172 256 8156 E-mail: sales@kjrolls.com Website: www.kjrolls.com Stand contact: Nikhil Jindal Kay Jay Chill Rolls is a manufacturer of flaker rolls and cracker rolls for the oil mill and other industries. In 2007, it entered into a joint venture with Walzen Irle, Germany. It also produces roll grinding and fluting machines and roll sand blasting machines.

Mahle Industry provides ecological and economical solutions that aim to meet increasing requirements in worldwide food and beverage production. It uses elements with high-value, FDA-approved filter materials to achieve good performance and an economical service life when manufacturing and processing fats, oils, pastes, blends and wines.

Koerting Hannover AG Badenstedter Str 56, Hannover 30453 Germany Tel: +49 511 2129 0 E-mail: baier@koerting.de Website: www.koerting.de Stand contact: Juergen Baier, Frank Schibau Körting says its steam jet ejectors operate virtually in every process stage of edible oil production. Besides the conventional barometric vacuum systems, Körting supplies alternative systems with minimised water and air pollution and lowest energy consumption, such as ice condensation or systems operating in a closed alkaline circle (ACL).

Matrix Flavours & Fragrances Sdn Bhd 11 Jalan SS18/6 Subang Jaya Petaling Jaya, Selangor DE 47500 Malaysia Tel: +603 563 39305 Fax: +603 563 45686 E-mail: geetha@matrix.net.my Website: www.matrix.net.my Stand contact: Ms Geetha Nair With over 35 years’ experience, Matrix is a leading flavour manufacturer in Asia with ISO/FSSC22000/Halal/Kosher certifications. The company says it provides cost-effective and tailor-made solutions for both local and international markets.

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EXHIBITION CATALOGUE

Malaysian Oil Scientists’ & Technologists’ Association (MOSTA) C-3A-10, 4th Floor, Block C, Damansara Intan 1 Jalan SS20/27, Petaling Jaya, Selangor 47400 Malaysia Tel: +603 7118 2062 Fax: +603 7118 2063 E-mail: mosta.secretariat@gmail.com Website: www.mosta.org.my Stand contact: Michelle Lim

Myande Group No 1 Zongyi Road, Hanjiang Industry Yangzhou City, Jiangsu 225127 China Tel: +86 187 6230 5251 E-mail: lww@myande.com Website: www.myande.com Stand contact: Liu Wenwen Myande Group is one of the leading manufacturers of edible oil processing equipment and an engineering service provider. The company’s know-how covers equipment development and manufacturing, process design, automatic control and installation and commissioning services. Myande Group is to provide highly costeffective and custom-designed solutions.

Natural Bleach Sdn Bhd 11 Jalan SS18/6 Subang Jaya Petaling Jaya, Selangor DE 47500 Malaysia Tel: +603 563 39305 Fax: +603 563 45686 E-mail: tech@naturalbleach.com Website: www.naturalbleach.com Stand contact: Dr Patrick Howes Natural Bleach Sdn Bhd was established in 1994 and designs, manufactures and markets cost-effective, natural and high-performance acid-activated bleaching earths and their blends with activated carbons.

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EXHIBITOR PROFILES

5 November - 7 November 2014

Kuala Lumpur Convention Center | Malaysia

NEL Hydrogen AS Heddalsvegen 11 Notodden 3671 Norway Tel: +47 482 38732 E-mail: helan@nel-hydrogen.com Website: www.nel-hydrogen.com Stand contact: Henning G Langas

Orion Biosains 4041 Forest Park Avenue Saint Louis, Missouri 63108 USA Tel: +1 314 615 6990 Fax: +1 314 615 6975 E-mail: tfavello@oriongenomics.com Website: www.oriongenomics.com Stand contact: Anthony Favello

NEL Hydrogen provides on-site generators for environmentally-friendly hydrogen production through water electrolysis technology. Its range of electrolysers is recognised as robust, reliable and energy efficient. It has delivered electrolyers to numerous edible oils and fats plants worldwide.

Oils & Fats International Quartz House 20 Clarendon Road Redhill, Surrey RH1 1QX UK Tel: +44 1737 855000 Fax: +44 1737 855033 E-mail: oilsandfats@quartzltd.co.uk Website: www.oilsandfatsinternational.com Stand contact: Mark Winthrop-Wallace

Orion Biosains aims to improve agriculture with bioscience. Its SureSawit SHELL kits allow oil palm breeders, nurseries and plantations to know what they are planting. The company says its simple-to-use kit allows determination of dura, tenera or pisifera fruit forms before planting, optimising oil yield in minimal acreage.

Oils & Fats International (OFI) produces the market-leading Oils & Fats International magazine, dedicated to addressing key issues within the oils and fats industry. It is an important piece of communication read by decision-makers throughout the industry. OFI is part of Quartz Business Media, UK.

Oxford Instruments Industrial Analysis Tubney Woods, Abingdon OX13 5QX United Kingdom Tel: +44 (0) 1865 393215 Fax: +44 (0) 1865 393333 E-mail: Barry.JONES@oxinst.com Website: www.oxford-instruments.com Stand contact: Barry Jones Oxford Instruments presents its benchtop NMR analysers for measurement of total oil content in materials such as whole seeds, palm mesocarp and pressed fibre without use of solvents. It also presents measurements of fatty acid compositions with minimal sample preparation, in less than five minutes per sample.

Oiltek Sdn Bhd Lot 6, Jalan Pasaran 23/5, Kawasan Miel Phase 10 40300 Shah Alam Tel: +603 5542 8288 Fax: +603 5541 8288 E-mail: oiltek@oiltek.com.my Website: www.oiltek.com.my Stand contact: Henry Yong Khai Weng Oiltek was incorporated in 1980 and serves the edible oil processing industry worldwide. It says its success is based on its flexible approach in accommodating various needs in different markets and environments. The companyâ&#x20AC;&#x2122;s support service continues long after the process plant has come onstream through its dedicated after-sales service.

PLT Scientific Sdn Bhd No.7, Jalan BP4/8, Bandar Bukit Puchong, Puchong, Selangor 47120 Malaysia Tel: +601 232 01209 Fax: +603 806 01628 E-mail: kho@pltscientific.com Website: www.pltscientific.com Stand contact: Kho Ley Er PLT Scientific, a scientific equipment provider in Malaysia, introduces benchtop NMR analysers from Oxford Instruments, UK. The MQC provides fast, accurate and solventfree measurement of oil in palm mesocarp, whereas Pulsar is a cryogen-free NMR spectrometer that is fast and convenient to determine fatty acid composition.

OFI ASIA 2014

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EXHIBITION CATALOGUE

27 PMI

40 SPX

TMCI Padovan â&#x20AC;&#x201C; Chemtech Via Caduti del Lavoro, 7 Vittorio Veneto, (TV) 31029 Italy Tel: +39 0438 4147 Fax: +39 0438 501044 E-mail: padovan@tmcigroup.com Website: www.padovan.com TMCI Padovan - Chemtech is a manufacturing and process engineering company supplying the margarine, bakery, gelatine, cocoa, pastry and confectionery industries. TMCI Padovan Group manufactures single machines, engineers turnkey plants for the food and beverage industries, and provides form-fillseal machines.

Unicorp Engineering

Yenar AS KOS Kuddusi Caddesi 22. sokak No 2 Konya 42300 Turkey Tel: +90 332 2391073 Fax: +90 332 2390755 E-mail: ali@yenkar.com.tr Website: www.yenar.com.tr Yenar AS, based in Konya, Turkey, produces spin cast chilled iron rolls for cracking and flaking mills. Its production range is from 100mm to 800mm in diameter and up to 2,500mm in length.

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Sowing the seeds of your success. When it comes to oilseed preparation, Bühler is the natural choice of partner. The company offers low-downtime technology for the preparation of all kinds of oilseeds. Bühler’s state-of-the-art Flaking Mill, the OLFB, excels in comparison to conventional flakers. High throughputs and excellent flaking quality combined with proven reliability and innovative, energy reducing technology will minimize your total cost of ownership and maximize extraction yield. The OLFB delivers success that is sustainable in the fullest sense. www.buhlergroup.com/oilseeds

Flaking Mill OLFB. – Capacity up to 500 t / day or more – Flake thickness adjustment during operation – Less power requirement for similar tonnage – Integrated mixer and feeder for even product distribution – Easy maintenance and quick access to all major parts

Innovations for a better world.

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