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DEEP FAT FRYING

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DAIRY FATS The butter half

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Leading edge technologies for refining plants

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CONTENTS FEATURES

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NEWS & EVENTS 2

What’s in your french fries? 2

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Contents.indd 1

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NEWS

China’s Bright What’s in your french fries? Food and Liangyou announce merger E COMMENT

arlier this year, McDonalds revealed in a video the 19 ingredients that go into its French fries in the USA. They are: 1. Potatoes. 2. Canola oil. 3. Soyabean oil. 4. Hydrogenated soyabean oil. 5. Natural beef flavour. 6. Hydrolysed wheat. 7. Hydrolysed milk. 8. Citric acid. 9. Dimethylpolysilxane. 10. Dextrose. 11. Sodium acid pyrophosphate. 12. Salt. 13. Canola oil. 14. Corn oil. 15. Soyabean oil. 16. Hydrogenated soyabean oil. 17. Tertiary butylhydroquinone (TBHQ). 18. Citric acid. 19. Dimethylpolysilxane. Actually, there are less than 19 ingredients as canola, soyabean and hydrogenated soyabean oils, citric acid and dimethylpolysilxane are counted twice, once in the initial frying process and a second time when the fries are cooked at the restaurant. Potatoes are cut and dipped in dextrose (a sugar derived from plants) to maintain a golden colour. Citric acid is a preservative for the oil. Dimethylpolysilxane is added to reduce oil from foaming and splattering and sodium acid pyrophosphate is added to keep the potatoes from turning grey. The fries are fried, salted and flash-frozen, then transported to fast-food restaurants where they are fried again. TBQH is an antioxidant that acts as a preservative for oils. There are also differences between countries. In India, they use RBD palm olein and no beef flavouring. In Canada, they use safflower oil. While McDonald’s in the UK says the only ingredients in UK fries are potatoes, vegetable oil (sunflower, rapeseed), dextrose (only added at beginning of the potato season) and salt. While those in the food industry will not be unfamiliar with these ingredients, a consumer will probably be surprised at the list. That’s because consumers are more concerned with what’s in their foods, how they are made and where the ingredients come from.

Clean labelling

The food industry has responded with a drive towards ‘clean labelling’ – removing chemical-sounding ingredients or reducing salt or fat to create a simpler, natural sounding ingredients list or a healthier nutrient profile. They still need to comply with regulations – the food needs to be safe to eat, the labelling must not be misleading and must still carry all the information required by law. Ingredion Europe says it has conducted consumer research on clean labelling for many years. Common ingredients consumers view as acceptable include starch, unbleached and heat treated flours, glucose, natural flavours, natural colours and wholegrain cereals while ingredients to avoid include E-numbers, GM ingredients, bleached flours, mono di-glycerides, polysorbate, hydroxyl propyl methl cellulose, synthetic flavours and colours, hydrogenated fats and modified starch. The key question is – is clean labelling a genuine effort by food manufacturers to give consumers the more wholesome, natural foods they desire, or an exercise to disguise undesirable ingredients? If rosemary’s antioxidant chemicals are extracted using carbon dioxide or hexane, or vegetable oil is refined, bleached and deodorised, are they still ‘natural’ products? Most consumers do not realise the degree of processing that goes into food and who can blame them – the pace and complexity of food science is extraordinary. Is it naïve of consumers to expect wholesome, chemical-free foods that are cheap, uniform and have a longer shelf life? Perhaps it shouldn’t be a shock to find preservatives in fast food. That, however, should not prevent food manufacturers from addressing the genuine concerns of those that buy their foods to create the trust that will ultimately lead to brand loyalty. w

hina food giant Bright Food (BF) and Shanghai’s largest storage and logistics company, Liangyou are set to merge, it was announced on 7 May in a statement released through Chinese social media site Weibo. Both companies are 100% owned by the Shanghai Municipal Government and such a union is in line with the municipal government’s policy of deepening reforms for state-owned assets, according to Moody’s. No financial details have been provided. BF has been acquiring stakes in many international brands in recent years including a 56% share in Israeli dairy producer Tnuva, a majority shake in Italian olive oil producer Salov and a 51% share in New Zealand dairy producer Synlait.

BF’s vast global presence paired with Linagyou’s grain and oil storage logistics facility that it says is the largest in Shanghai will create a grain, oil and retail conglomerate that will be one of the country’s largest by sales, according to a Reuters report. However, the company would still be smaller than centrally managed firms such as grain trader COFCO. A spokesman for BF Pan Jianjun said: “Liangyou and Bright Food’s businesses have strong synergies. We hope the merger will produce an effect of ‘one plus one is better than two’ especially in the areas of grains and oils.” Pan added that BF had sales of 120bn yuan (US$19.33bn) in 2014, while Liangyou had sales of 10bn yuan (US$1.61bn).

COFCO venture to control assets

hina’s largest grain trader COFCO is setting up a venture with sovereign wealth fund China Investment Corp (CIC) to control COFCO’s investments in Dutch trader Nidera and Noble Agri Ltd, partly owned by the Noble Group, according to a 12 May Reuters report. COFCO would control 80% of the venture -- COFCO International Holdings – and the US$653bn CIC fund would own the remaining 20%. Noble is one of Asia’s biggest commodities trading firms and had been under scrutiny this year for its accounting methods after previously unknown Iceberg Research alleged the company had inflated asset values by billions of dollars, the report said. Noble has staunchly denied the claims. COFCO bought a 51% stake in Nidera in February, followed by a 51% share of Noble Agri Ltd for a combined price of US$3bn. In April, COFCO chairman Ning Gaoning said COFCO was planning to list within three to five years, a move that would catapult it into a handful of companies currently dominating global agricultural trade. The move would allow COFCO to rival the ‘ABCD’ agribusiness quartet comprising Archer Daniels Midland, Bunge, Cargill and Louis Dreyfus.

EC probes Cargill’s ADM purchase

argill Inc, the USA’s largest privately held company, is being probed by the European Commission (EC) over its plan to purchase Archer Daniels Midland (ADM)’s chocolate business for US$440M, according to a Reuters report published in February. The EC has until 8 July to investigate the acquisition. It is concerned the deal could lead to higher prices.

Reuters reported that the EC’s preliminary investigation showed competition concerns in the supply of industrial chocolate to customers in Germany and the UK. “The proposed transaction could eliminate an important competitor and reduce the choice of suitable suppliers in already concentrated markets, which could lead to price increases,” the EC said.

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NEWS

Union for food giants Heinz and Kraft Foods U

S food giant Heinz is merging with Kraft Foods Group to create the third largest food and beverage company in the USA and the world’s fifth largest food and drink group, the companies said in a statement on 26 March. The deal has been orchestrated by Heinz’s owners, the Brazilian investment firm 3G Capital and billionaire investor Warren Buffett’s Berkshire Hathaway. Heinz shareholders will own 51% of the new Kraft Heinz Company, with Kraft shareholders owning a 49% stake. Heinz chairman and 3G Capital managing partner Alex Behring said: “By bringing together

these two iconic companies through this transaction, we are creating a strong platform for both US and international growth.” The new firm expects to make annual cost savings of US$1.5bn by the end of 2017, with combined sales worth some US$29bn. Both companies’ boards have approved the merger, with only approval from regulators and Kraft shareholders still needed. Closure of the deal is expected in the second half of this year. The combined company will include wellknown brands such as Oscar Mayer meats, Maxwell House coffee, Jell-O, Planters nuts,

along with Kraft cheese products and Heinz ketchup and condiments. Kraft was split into two separate companies in 2012 – a North American grocery business of the same name and an international snack foods company called Mondelez International. The latest deal comes as Kraft and other major US food makers struggle with changes in consumer tastes that have hampered their ability to sell packaged, processed food, the Wall Street Journal said. Kraft’s revenue last year was effectively flat at US$18bn, while net profit fell 62% to US$1bn.

Italian olive oil consumption hits 25-year low

lthough Italians have always been Europe’s top consumer of olive oil, it appears that the country’s love affair with its most famous export is declining, according to Olive Oil Times. The International Olive Council (IOC)’s February report stated that consumption peaked in 2006/2007 before falling to a dramatic 25-year low in the 2014/2015 period. The change is not just in Italy, as countries across Europe consumed 400,000 tonnes less in 2014/2015 than in 1990. However, consumption

in the USA has increased by an additional 200,000 tonnes. However, the average Italian still consumes 8.4 litres/year of olive oil, 10 times more than the average American, Olive Oil Times said. The Greeks, despite the current crisis, are consuming nearly 15 litres/year of olive oil on average. Consumption was not aided by the high price of the commodity due to a poor harvest season, with consumers having the choice of cheaper alternatives.

EU combats deadly Xf olive tree disease in Italy

easures to prevent the spread of Xylella fastidiosa, a deadly bacterium that has already infested over 74,000 olive trees in southern Italy, were approved by the European Union (EU) on 28 April. Measures included the destruction of all infested trees including those within a 100m radius; removal and containment measures; testing in specific Italian regions; strict conditions for the import and transport within the EU of susceptible plants; and the reporting of any new outbreaks, followed by an official survey and immediate demarcation of infested areas. A study by the European Food Safety Authority (EFSA) has warned that Xylella fastidiosa could spread from southern Italy

THE XF BACTERIUM IS SPREAD BY INSECTS AND HAS NO KNOWN CURE

to olive groves in other countries in the EU and cause significant crop damage and loss, the Olive Oil Times said. Italian forestry officials began felling infected olive trees in Apulia, southern Italy, a few days before the measures were approved.

Italy – the world’s second largest exporter of olive oil – is opposed to the drastic measures proposed by the EC, resisting destruction of centuries-old olive trees amid concerns that the region would become arid and the area’s tourism affected, while questioning the effectiveness of uprooting trees. The region of Apulia is one of Italy’s largest producers of olive oil, accounting for 40% of the country’s output last year, Olive Oil Times said. On 20 May, the Europeean Parliament also urged the EC to compensate olive producers for the loss of revenue as a result of eradication measures and the introduction of incentives for producers to implement preventive measures.

Indonesia delays export levy on CPO and palm products

ndonesia has delayed an export levy on crude palm oil (CPO) it was planning to impose to fund biodiesel subsidies, replanting and R&D, reports Reuters. In May, President Joko Widodo signed a regulation to impose export levies of US$50/tonne on CPO and US$30/tonne for processed palm products. However, the Indonesian Palm

Oil Association told Reuters that delays in establishing guidelines and a new biodiesel fund or agency meant the move would be pushed back as far as August. The world’s largest palm oil producer has had a zero export tax on most palm oil shipments since October because of low palm oil prices. Meanwhile, Malaysia – the

world’s second largest palm oil producer – re-introduced CPO export taxes, effective April. Malaysia has had tax-free CPO exports since September but on 20 March, the government confirmed that it would impose a 4.5% export duty on CPO because prices had surpassed the country’s CPO tax threshold of US$602/ tonne.

IN BRIEF FINLAND: Stanols ester producer Raisio has bought back the UK and Ireland cholesterollowering Benecol business, as well as amending its North American sales rights to the range. It now has full control of the brand for the first time since 1997. The transaction cost €88.4M and Raisio’s annual earnings are expected to rise by €9M. INDIA: Former managing director of Godrej Group, Arumugham Mahendran, has launched a new chocolate brand in Bangalore, Just Food reported in May. The new company, Global Consumer Products, has introduced a product called ‘LuvIt’ which will compete with other market giants. Cadbury currently commands 70% of the chocolate market share in the country. FRANCE: A new health bill proposing a voluntary colourcoded front-of-pack nutritional labelling scheme was passed in the National Assembly in April despite strong opposition from manufacturers. It still needs approval from the Senate and to pass a final vote in the lower house. It proposes a single colour determined by the overall nutritional profile. PAPUA NEW GUINEA: The US$1.7bn takeover of Papua New Guinea-based New Britain Palm Oil Ltd by Malaysia’s Sime Darby Bhd was completed on 2 March, Reuters reported. Through the move, 135,000ha of land will be added to Sime Darby’s land ownership, taking its total to almost 1Mha across five countries.

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NEWS

IN BRIEF MALAYSIA: Investment holding company Golden Land Bhd has acquired controlling stakes in two Indonesian plantation companies at a price of US$5.73M cash (RM20.65M), the Malaysian Palm Oil Council reported in March. It will be acquiring 68.75% in Parimo Agri Holding Ote Ltd and Parigi Plantation Holding Pte Ltd. SAUDI ARABIA: Saudi food giant, the Savola Group, has announced that it is halving its previous first-quarter profit projection from 360M riyals (US$96M) to 178M riyals (US$47.5M), Reuters reported in March. Among other things, the company blamed weak retail sales, “operational difficulties” and the effect of currency devaluations in the countries in which it operates. GERMANY: Data recorded by market research firm Euromonitor has shown that Germany is the country with the highest consumption of fat per person in the world. However, it had one of the lowest rates of obesity in the developed world, calling into question a direct correlation with fat intake and obesity, Euromonitor said. SINGAPORE: Fuji Oil – which works in cocoa butter equivalents and other speciality oils and fats – is opening a research & development center in Singapore, the company’s first outside Japan. Singapore was selected so that the company could best serve the region’s diverse needs, it said. Fuji Oil will use the site as a springboard to propel its business to Southeast and Greater Asia regions. CHINA: The Supreme People’s Procuratorate is preparing for a 22-month crackdown on food crimes, it announced on 4 March. In particular China has a problem with the production and sale of ‘gutter oil’, which sells for almost half the price of refined oils. SOUTHEAST ASIA: Wilmar International and First Pacific completed their purchase of Australian food giant Goodman Fielder on 17 March after first flagging their bid in April 2014.

WHO: obesity crisis facing Europe

urope will face an obesity crisis of enormous proportions by 2030, according to projections released by the World Health Organization (WHO) Regional Office for Europe at the European Congress on Obesity in the Czech Republic on 6-9 May. Countries with projected steep rises in obesity include Austria, the Czech Republic, Greece, Ireland, Spain, Sweden and the UK. The estimates are the work of Dr Laura Webber, UK Health Forum and Dr Joao Breda, WHO Regional Office for Europe and colleagues, who looked at data from 53 countries of the WHO European region. The proportions of overweight* and obese* men and women in 2010 were compared with projected 2030 levels. “Our study presents a worrying picture of rising obesity across Europe,” Dr Webber said in a UK Health Forum press release. “Policies to reverse this trend are urgently needed. Although there is no ‘silver bullet’ for tackling the epidemic, governments must do more to restrict unhealthy food marketing and make healthy food more affordable.” In Ireland, almost all adults are projected to be overweight by 2030. For men, 91% are likely to be overweight (which includes obese men), and 27% are estimated to become obese by 2030, compared with

76% and 24% respectively in 2010. For women, 83% are likely to be overweight, and 57% obese in 2030, compared with 56% and 23% in 2010, respectively. In the UK, 33% of women are forecast to be obese in 2030 compared with 26% in 2010, while 36% of men will be obese in 2030 up from 26%. An estimated 77% of Greek men are forecast to be overweight by 2030 compared to 66% in 2010, while the proportion of obese Greek men will more than double from 20% to 44%. Greek women will likely see similar increases – obesity is predicted to rise from 20% to 40% and the proportion of overweight women will increase to 67% from 53%. Few countries in the WHO region will see stable or decreasing overweight and obesity rates. The Netherlands is projected to do better than many others – 49% of Dutch men are predicted to be overweight, and just 8% obese by 2030, compared with 54% and 10% in 2010. For Dutch women, the proportion of overweight will remain more or less stable rising from 43% to 44%, with obesity falling from 13% to 9% during this period. “Overall, the data show no evidence of a plateau in adult obesity in most countries,” the press release said. *Overweight means a body mass index (BMI) over 25kg/m2 and obese means a BMI of over 30kg/m2

Record soya area in South Africa Farmers oppose

esponding to a growing demand for oilseed, South African famers have planted a record area of soyabeans, which is being used as a substitute for corn, Bloomberg reported in February. The areas to be sown with soyabean increased by 23% with corn’s share decreasing by 1.2%. Soyabean would now be grown across 620,300ha, the Crop Estimate Committee said. Bloomberg quoted Wessel Lemmer, senior economist at Grain South Africa as saying: “There is a huge demand for soyabean, but we don’t produce enough to supply the demand. We need the cultivators to up production.” The country’s soyabean processing capacity is also increasing, and funding has been approved to assist processors to further increase capacity. Lemmer was further quoted as saying that local crushing capacity would be “totally independent of soyabean oil-cake imports if our local plants crush to their full capacity”. It was highly likely that South Africa would go from being a net importer of soyameal to a net exporter, he added.

Ukraine set to break soyabean record

he Ukraine soyabean market is expected to break another production record this year, according to APK-Inform analysts. Planted area had expanded 19% compared to last season, to total a record 2.15M ha. Polls indicated that more than 20% of farmers had plans to expand or begin planting the oilseed, APK said. Even though a 9% reduction in yield was expected, the country was still predicted to produce 4.2M tonnes of soya, up 8%. The State Statistics Service of Ukraine reported that the profitability of soyabean production in 2014 was 34%. However, Bloomberg reported in

March that the country’s political crisis had caused interest rates to soar and could result in a costly decline in its corn harvest, the worse since 2005 The Ukraine government raised interest rates to 30%, making it difficult for farmers to buy necessary fertilisers and pesticides. Furthermore, many were feared to be turning to cheaper seeds, likely to yield less crop. Ukrainian farmers relied on credit to cover around half of their expenses through the year but extortionate interest rates had made borrowing an unrealistic option, the report said.

foreign restriction

armers in Brazil are calling for a reversal of the ban imposed four years ago which restricted foreign ownership of farmland, Agrimoney reported in April. The Sociedade Rural Brasileira has launched a legal battle to reopen land purchases for foreign investors. Agrimoney said it was not clear whether past foreign investments had prospered. Last year, Chinese state-owned Chongwing Grain Group had not made any progress on a US$2bn soya crushing and exporting supply line in Brazil. It was feared potential investors had been put off by the restrictions. The loss of investment was deeply worrying, particularly for the sugar industry that had seen many mills close.

EFKO sales rise

FKO, Russia’s largest fat and oil company, announced its 2014 operational results in March. Sales of speciality fats and margarine products reached 471,000 tonnes, an increase of 7.3% compared to 2013 particularly in confectionery fats, cocoa butter alternatives, industrial margarines and allpurpose fats. Sales of company branded sunflower oil increased by 46.5% to 127,000 tonnes.

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BIOFUELS NEWS

IN BRIEF USA: The Energy Information Administration (EIA)’s May shortterm energy outlook said that US ethanol production averaged 927,000 barrels/day in April, and it predicted full-year 2015 production to average 936,000 barrels/day, or 14.35bn gallons. US biodiesel output will average 81,000 barrels/day in 2015. ZIMBABWE: The mandatory ethanol blending ratio in unleaded petrol has increased from 5% to 10%, AllAfrican reported in May, which should produce a small decrease in the pump price. This follows a reduction of the blending ratio last December from 15% to 5%. It was reported that companies would intensify production and build reserves to cover the summer period. TAIWAN: A LanzaTech commercial ethanol facility will be receiving capital investment worth TW$1,400M (US$46M) from Taiwan steel maker China Steel following formal board approval in April. USA: Spain’s Abengoa has been selected by Fulcrum BioEnergy Inc to build a biorefinery in Reno, Nevada to convert municipal solid waste into syncrude using gasification technology, in a contract worth some US$200M. THE PHILIPPINES: Dutch firm Van Kessel Inc is set to invest P13.5bn (US$304M) in an ethanol processing plant in the village of Panubigan just outside the city of Zamboanga, according to a report in Sun Star in April. The firm was purchasing 25ha of land for the plant. The fuel would be sold in Japan and Korea and the plant’s feedstocks would comprise mainly cassava, coconuts, nipa, sweet potatoes and sweet sorghum, the report said. THAILAND: Ethanol manufacturer Thai Agro Energy Plc (TAE) is in talks to buy two ethanol production plants in the country’s central region, DealStreetAsia reported in April. The plants have a combined production capacity of 200,000 litres/day. TAE has a target to produce and sell 105M litres of ethanol this year, up from 97M litres in 2014.

EPA releases volumes for RFS O

n 29 May, the US Environmental Protection Agency (EPA) released its long-awaited proposed volume requirements for the country’s Renewable Fuel Standard (RFS) (see table opposite). The blend volumes include substantial reductions from the statutory standards in the original 2007 Energy Independence & Security Act but advance renewable fuels targets for 201416, according to Biofuels Digest. An EPA official said the proposal would “drive growth at an ambitious but responsible rate” while the ethanol industry said the

2014

(in billions of US gallons)

S agribusiness giant Archer Daniels Midland (ADM) announced on 2 June that it is temporarily halting production at its biodiesel plant in Leer, Germany because of uncertainty about biodiesel’s future in the country, Reuters reported. The company said it would reassess biodiesel market requirements in the third quarter of this year but had no plans

2016

2017

Cellulosic biofuel

0.033

0.106

0.206

Biomass-based diesel

1.630

1.700

1.800

1.900

Advanced biofuel Total renewable fuels

2.680

2.900

3.400

15.930

16.300

17.400

volumetric requirements were an improvement on the EPA’s earlier proposal but not as big as hoped. “Today’s proposals are better than the EPA’s initial proposed rule for 2014 but they still need significant improvement,” said Growth Energy CEO Tom Buis. “We have sincere concerns that these proposed numbers are not

ADM to halt production at Leer

2015

to idle other biodiesel plants in Germany. The report said enthusiasm for biofuels in Germany and other EU countries had waned, with Germany scaling back usage targets in past years. ADM had not given the Leer plant’s capacity but market sources estimated that Leer produced around 120,000 tonnes/year, the report said.

Novozymes to supply sawdust refinery

ndustrial enzyme maker Novozymes announced on 5 May that it had agreed a deal in which it would supply its enzymes to St1 Biofuels – a Finnish producer of sustainable bioethanol. In the deal, Novozymes’ products will be used in the first refinery to produce biofuel from sawdust. In the process, steam explosion is used to open up the cellulosic structures of the sawdust, followed by enzymatic hydrolysis that extracts sugar for ethanol fermentation. The refinery had a potential capacity of 10M litres/year, representing a predicted investment of €40M, Novozymes said.

moving forward to the degree that Congress had intended for the RFS.” National Biodiesel Board CEO Joe Jobe said: “It is not perfect but it will get the US biodiesel industry growing again.” The rule will be open to a 60-day public comment period through 27 July.

Argentine output forecast to fall

rgentina’s biodiesel production could fall 20% this year as a result of higher export taxes, price cuts and a limited domestic market leading to lower capacity use at plants, a Platts report said. The reported quoted Claudio Molina, executive director of the Argentine Biofuels and Hydrogen Association, as saying that most biodiesel exporters were running plants at 20-30% of installed capacity. That would put the industry on track to produce less than 2M tonnes this year, a fall of more than 20% from 2.58M tonnes produced last year. The reported added that at the end of May, the Energy Secretariat raised the biodiesel export tax to 13.5% from 5%, retroactive from 1 April. And in April, it slashed biodiesel prices by 7.5% for oil refiners, the lowest in 15 months.

Lack of bids leads to closure of BP Jennings site

il giant BP has cemented its decision to move away from cellulosic biofuel production by announcing in May the closure of its biofuel plant in Jennings, Louisiana, USA. The plant will close on 3 July, a report in The Adviser said. BP announced in December that the plant was for sale (see OFI News, February 2015) but in a statement in May, spokesman Jason Ryan said that BP had received no “acceptable bids” resulting in the facility’s closure. BP’s plan to divest its biofuels business was revealed in December 2014. It said “tough strategic choices” would have to be made and “the decision has been taken to cease further development of BP’s proprietary ligno-cellulosic technology”. Falling energy prices were a major factor, as was continuing payment for the Deepwater Horizon oil spill in 2010. The Jennings demonstration plant manufactures

ethanol from sugarcane waste, producing 1.4M gallons/year (40 tonnes/day) according to a report published in January in Biofuels Digest. The company had been investing heavily in cellulosic ethanol technology since 2008, with over US$750M of funding and a total of 300 staff. When the Jennings plant closes, 56 people will lose their jobs including scientists and technology workers. It was purchased from Verenium in 2010 along with a research facility in San Diego as part of a US$98.3M deal. BP filed a closure notice on 4 May with the Louisiana state government and, on the same day, informed workers of the layoffs. Statements from BP have confirmed that it will now focus on its sugarcane biofuels business in Brazil. No details have been released on the fate of the San Diego research facility which was also put up for sale in December.

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BIOFUELS NEWS

Pertamina to enter biofuels through plantation sector

expertise in agriculture and plantation. Later we will equally maintain the plantation to utilise its results.” However, it is not expected that the joint venture will be initiated in the near future as the current low price of crude oil lowers the economic value of biodiesel production. According to MENAFN, Hidayat predicts the venture will begin in one or two years and has been included in PT Pertamina’s strategic plan for 2015-2019.

Ethanol production in Brazil rose by 2%

NICA, the Brazilian sugarcane industry association, announced final ethanol production figures for 2014/15 and initial data for this season’s crop in April, reports Ethanol Producer. While sugar production fell by 2.3M tonnes compared to 2013/14, reaching 31.99M tonnes, ethanol production rose 2.23%, reaching 26.15bn litres. Mills in Brazil’s centre-south sold 2.3bn litres of ethanol into the domestic market in March, an increase of 21.8% compared to the same period in 2014. Between April 2014 to March 2015, 25.17bn litres of ethanol were sold by mills in the region, a slight decrease from the previous season’s sales of 25.67bn litres. A total of 23.67bn litres were sold domestically. During the 2014/15 season, ethanol exports were dramatically lower than the previous season, totaling 1.5bn litres compared to 2.57bn litres in 2013/14, Ethanol Producer said.

he Indian government removed a 12.36% excise duty levied on ethanol supplied for fuel blending on 29 April as part of a series of measures to support local sugarcane farmers, India Times reported. Cane farmers were struggling with excess production and low prices, which had led to mounting debts of Rs21,000 crore (US$3.45bn). The move should give millers Rs5/litre (US$0.08) extra on ethanol produced from sugarcane, according to the Business Standard. In addition, the government hiked the import duty on sugar to 40%.

49 2014

ndonesian state-owned oil giant Pertamina announced plans in May to enter the plantation sector for biofuel development through a joint venture with another stateowned company already in the plantation business, according to a report in MENAFN. US$200M has been allocated for the development of biodiesel and green diesel, the report said. It also quoted Pertamina’s gas directorate technology & product development manager Andianto Hidayat as saying “the joint venture could be in the form of a merger and acquisition because we do not have

India removes excise duty on cane ethanol

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RPBC is now SCBI majority shareholder

hilippine bioenergy giant Roxas Pacific Bioenergy Corp (RPBC) raised its share in the ownership of San Carlos Bioenergy Inc (SCBI) in February, making it the country’s largest ethanol producer. By purchasing Menarco Clean Energy’s majority 64.02% share, RPBC now owns 93.68% of SCBI. The remaining 6.32% minority share is still owned by the National Development Corp. According to a report in The Philippine Star, Roxas Holdings’ president and CEO Renato Valencia said the acquisition was in line with the diversification initiatives moving the company from purely sugar operations to bioethanol and renewable energy.

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FM_Tonsil_128x185_en.indd 1 7 OFI – JUNE 2015 www.oilsandfatsinternational.com

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BIOTECH NEWS

Syngenta rejects Monsanto’s new offer S

yngenta rejected yet another takeover bid from Monsanto on 8 June, a US$45bn offer which it had already spurned on 8 May but with an additional proposal to pay Syngenta a US$2bn reverse breakup fee if the deal is blocked by regulators. According to reports in The Wall Street Journal, Syngenta mocked the offer as being “paltry”. The additional breakup fee and pledges by Monsanto to sell any overlapping seed and pesticide businesses were still not enough to address the anti-trust concerns that were sure to be considered by regulators, a statement from Syngenta on 8 June explained.

Syngenta released details of the proposal, which publicised Monsanto’s intention to rename the company and relocate the headquarters to the UK, according to The Wall Street Journal report. It is understood such a move would lower the tax rate for the firm. In response to the latest rejection, Monsanto has taken its proposal to Syngenta’s shareholders. The Wall Street Journal quoted Scott Partridge, Monsanto’s vice president of strategy, as saying: “Right now we’re talking to anybody who’s willing to talk to us. Their shareholders want to talk to us.” Bloomberg reported that some shareholders

were frustrated by Syngenta’s refusal to negotiate. Monsanto is the world’s largest seed supplier and taking over Syngenta – the globe’s largest pesticide supplier – would result in the biggest agrochemical company in the world, controlling a third of each market. Although the takeover is logical for Monsanto, many others are concerned. Public opinion was strongly against such a deal, Bloomberg said. Environmentalists and regulators fear a bigger Monsanto would squeeze farmers, reduce genetic diversity and dominate future discussions on the use of GMOs.

US acceptance of DuPont acquires Taxon Biosciences Trial agreement and microbial genomics has acquired the GM corn rises for Syngenta products will contribute to California-based microbiome DuPont

yngenta announced that the number of US grain elevators willing to buy its controversial rootworm resistant corn seed has risen from 672 to 1,652, Reuters reported in February. It is presumed that this announcement was made to tie in with the start of the planting season, in order to encourage more farmers to buy the seed knowing their harvests will be accepted. Banned by China and the EU, the corn is seen as a potential risk to international trade. Some people believe that additional production of the corn increases the risk of accidental shipment overseas. Reuters quoted Bob Nielsen, a professor of agronomy and extension corn specialist at Purdue University as saying: “The devil will be in the details as to how well all of these outlets are able to segregate this grain if they are also receiving grain that will go out to the global market.”

discovery company Taxon Biosciences Inc for an undisclosed amount, the company said in April. According to DuPont the acquisition would build on in-house capabilities and unparalleled market access in both seed and crop protection to discover and commercialise biological solutions for global agriculture customers. Taxon seeks to develop a transformational microbial genomics platform to respond to challenges in agriculture, energy and health sciences. The company’s microbial consortia

DuPont’s development of seed treatment, foliar and soil application products. Frank DeGennaro, director of DuPont Biologicals said “With this added capability, we expect to accelerate our time from discovery to market.” According to Agweek, other companies in the agricultural seed and chemicals business such as Bayer AG and Syngenta AG are also racing to bring out new biological products for plants; experts estimated the market was worth around US$2bn at the time.

Evogene and Monsanto collaboration

vogene’s recently developed comprehensive gene optimisation programme is being incorporated into its multi-year collaboration with Monsanto, the company said in a press release in February. The addition of these new capabilities, which have been

designed to optimise desired trait efficacy and potentially accelerate product development, follows the successful identification and validation by Evogene of more than 1,000 genes that have entered Monsanto’s product development pipeline.

t was announced in April that Pacific Ethanol, USA, had signed a trial agreement with Syngenta that will allow the company to use Enogen, Syngena’s corn enzyme technology, at its ethanol production facility in Madera, California. Enogen offers ethanol plants an alternative to traditional liquid alpha amylase by providing the enzyme directly in the corn kernel. This reduces the viscosity of the plant’s corn mash, and leads to high levels of solids loading, increasing yield. “We are confident that Enogen corn enzyme technology will add value to Pacific Ethanol’s operations and help them reduce their carbon footprint,” said David Witherspoon, head of Enogen for Syngenta. “In a 100M gallon plant Enogen corn can help save: 350bn BTUs of natural gas; 10M KWh of electricity; 68M gallons of water; and 106M pounds of CO2 emissions.”

EC to allow member states to ban GM food and feed

n 22 April, the European Commission (EC) proposed to allow member states to restrict or ban the use of GMOs for fuel or feed purposes in their own territory. This follows the European Parliament (EP)’s and Council’s adoption of a new directive in March allowing individual member states to restrict or ban the growing of GM crops in their territory on environmental or socioeconomic grounds. According to the EC, the moves are to allow member states to express their individual concerns in an area considered to be of high public interest. The EC said there were currently 58 GM food and feed authorised in the EU. The

number of GM food products available on shelves was limited but there was a substantial market for GM feed in the EU, it said. “More than 60% of the EU’s animal feed needs are met through imports of soya and soya meal from third countries where GMO cultivation is widespread.” The EC’s food and feed proposal has alarmed 13 EU food and feed chain organisations including the EU Vegetable Oil and Proteinmeal Industry (FEDIOL), the European Feed Manufacturers Association, the European Livestock and Meat Trades Union, and Copa-Cogeca. They said the proposal would undermine the EU single market.

Speaking on behalf of the 13 organisations, Pekka Pesnen, secretary general of Copa-Cogeca warned the EC about “the severe economic and social impact of this proposal, which will severely jeopardise the internal market for food and feed products, leading to significant job loses and lower investment in the agri-food chain in ‘opt-out’ countries. This would cause severe distortions of competition for all EU agri-food chain partners.” The food and feed proposal will now be sent to the EP and the Council, as well as to the Economic and Social Committee and the Committee of the Regions, under normal legislative procedure.

8 OFI – JUNE 2015 www.oilsandfatsinternational.com

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TRANSPORT & LOGISTICS NEWS

IN BRIEF ZIMBABWE: The country’s National Oil Infrastructure Company (Noic) has announced plans for a US$6M ethanol storage facility to build up buffer stocks to meet the some 90M litres of ethanol needed each year to sustain fuel blending of 15%, Business Writer reported. Tender documents showed plans for a 5M litre storage tank at Mabvuku but independent analysts were quoted as saying such a facility might not be big enough, taking into account Zimbabwe’s rising car imports. CANADA/USA: Canada Pacific (CP) – a transcontinental railway in Canada and the USA – announced plans in December to improve its network by investing US$500M between 2014 and 2016 in the infrastructure of its upper plains network. CP said it was working with customers to enhance transparency of car supply and predictability of service. CP had developed a dedicated train car programme for its larger shippers and implemented a flexible, open distribution system for smaller producers, it said. USA: Tetra Financial Group has announced funding of US$800,000 for an Ohio-based ethanol company to buy a 2M bushels capacity grain elevator, silos, bins and conveyors. The company purchases, stores and sells soyabeans, as well as wheat, corn and other grains.

ADM expands port facilities in Argentina to aid exports

gribusiness giant Archer Daniels Midland (ADM) announced on 21 May that it is investing in substantial improvements and expansions to its port facilities in Puerto San Martin in the Argentine state of Santa Fe to enhance its capability to export grain and other agricultural products from the region. The improvements, which will include the construction of a new berth for barge discharge and the addition of storage capacity, are expected to be complete by early 2016. “From acquiring full ownership of our Black Sea terminals, to quadrupling the capacity at our port in northern Brazil, to this enhancement of our capabilities in Argentina, we are executing our plan to diversify and expand our trade and origination territory,” said Joe Taets, president of ADM’s agricultural services business unit. The Puerto San Martin export facilities had a throughput of some 2M tonnes/year. The improvements would increase capacity by 25% to 2.5M tonnes/year, reducing ADM’s reliance on thirdparty facilities, which was limiting its ability to export increasing volumes from Paraguay, it said. “The improved Puerto San Martin facility, along

with our export elevator just downriver in Arroyo Seco and our deep water port at Bahia Blanca, will have a total annual throughput capacity of 7.5M tonnes, allowing us to take full advantage of expanding agricultural production in Paraguay and Argentina,” continued Taets. The Argentina expansion comes on the heels of ADM’s announcement earlier in May that it was acquiring complete ownership of North Star Shipping and Minmetal, enhancing the company’s European origination and transportation network through the addition of export facilities at the Romanian port of Constanta on the Black Sea. The terminals can handle grains, vegetable oil and biodiesel. It has been estimated that the cost of the deals could exceed US$95M. The North Star Shipping and Minmetal terminals were already part owned by ADM, and have storage capacities of 124,000 tonnes and 138,000 tonnes respectively. t In February, ADM reached an agreement to sell to Glencore Plc a 50% stake in its export terminal in Barcarena, in the northern Brazilian state of Pará, and to quadruple the terminal’s capacity from 1.5M tonnes to 6M tonnes.

Ethanol ‘hazardous’ for pipelines Majority share US Department of Transportation’s Pipeline and Hazardous in CWB taken Safety Administration (PHMSA) finalised its rulemaking TheMaterials in March to include ethanol in its definition of hazardous materials, Ethanol Producer magazine reported. “The demand for biofuels was projected to increase as a result of several federal energy policy initiatives, which would result in greater use of pipelines for transporting biofuels,” the magazine quoted PHMSA as saying. Some believed biodiesel should also have been added but the PHMSA was reported to have said that this was “outside the scope of this rulemaking” but may be addressed in the future.

New regulations for fuel transport in USA, Canada

ew regulations have been announced in both the USA and Canada to confront the growing issue of safety when transporting flammable liquids, including ethanol, by train. Earlier this year, US transportation officials predicted that trains carrying crude oil and ethanol would derail 10 times a year for the next two decades unless something was done. According to The Associated Press, it is forecast that 900,000 cars carrying 30,000 gallons of fuel each would be moved across the country this year. In response to growing concern, on 17 April, the US Department of Transportation announced a package of actions aimed to

enhance the safety of Class 3 flammable liquids transportation, Ethanol Producer magazine said. An emergency order is included which requires a maximum speed limit of 40mph for trains transporting large amounts through highly populated areas. This is in addition to several safety advisories and notices which must be implemented by future dates, including enhancement of mechanical safety and the requirement to provide emergency response information. The Canadian government followed suit and also issued an emergency directive on 23 April enforcing a 40mph maximum speed limit.

Canada’s Minister for Transport Lisa Raitt said: “Transport Canada continues to take strong action to safeguard Canadians that live along our rail corridors. The directive ... serves as yet another measure to ensure railway companies tranpsort dangerous goods safely and securely.” Additionally, US and Canadian officials jointly unveiled regulations on 1 May that completely overhauled the fleet of crude oil tank cars. The crude-by-rail safety rule created a new North American tank car standard, the DOT-117. US shippers must upgrade or scrap cars of the old standard by 2018. Canadians will phase the old cars out by May 2017.

3 Global Grain Group (G3), Canada, announced on 15 April that it was investing C$250M (US$208M) to take a 50.1% majority share of the Canadian Wheat Board (CWB). The CWB markets wheat and barley and also took on canola in 2012, when it lost its monopoly in grain. It operates seven grain elevators in Western Canada and port terminals in Thunder Bay, Ontario and Trois Rivieres, Quebec. It is also building four additional grain handling facilities in Manitoba and Saskatchewan. G3 is a newly established joint venture between Bunge Canada and SALIC Canada Ltd. Bunge has grain operations in eastern Canada and oilseed processing facilities throughout the country. It supplies raw and processed agricultural commodities and food ingredients to the animal feed, food processing, food service and bakery industries. Its export terminal in Quebec City, as well as four elevators in Quebec, are part of the new transaction. SALIC Canada is a whollyowned subsidiary of the Saudi Agricultural and Livestock Co.

10 OFI – JUNE 2015 www.oilsandfatsinternational.com

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11 OFI – JUNE 2015

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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 CANADA: Industrial biotech company BioAmber Inc announced in March that it had begun commissioning its 30,000 tonnes/year bio-succinic acid plant in Sarnia, Ontario, with start-up expected to take around five months and full commercial operation by third-quarter 2015. BioAmber has signed take-orpay agreements with Vinmar and PTTMCC (a joint venture between PTT PLC and Mitsubishi Chemical) that represent sales volumes of over 5,000 tonnes in 2015 and 15,000 tonnes in both 2016 and 2017. It has also signed several supply agreements with non-binding volumes collectively exceeding the plant’s available capacity. ITALY: Bio-based chemicals company GFBiochemicals announced in March that it was starting commercial-scale production of its signature biobased levulinic acid (LA) this summer at its Caserta plant, which would scale up to 8,000 tonnes/year capacity by 2017. The company said its process technology had been developed and tested at demonstrationscale since 2008. WORLD: On 27 February, speciality chemicals company Rennovia Inc, USA and catalyst supplier Johnson Matthey announced an agreement to develop and manufacture catalysts for use in the scaleup and commercialisation of Rennovia’s process to produce bio-based glucaric acid and adipic acid. Adipic acid has applications in nylon-6,6 fibres, engineering resins, polyester polyols for polyurethanes and adipate ester plasticisers. Glucaric acid has applications in detergents, de-icing, cement and anti-corrosion products. The agreement builds on an existing collaboration to construct a miniplant to scale the process. GERMANY: Speciality chemicals company Evonik has launched a new concentrated surfactant based on Roundtable on Sustainable Palm Oil (RSPO)certified sustainable palm kernel oil. It said its concentrated cocamidopropyl betaine product had many applications in the cleansing care market.

PHI and Fusion Crest to set up oleochemicals plant in Johor

S investment firm PHI Group Inc announced on 6 April that it had signed an agreement with Malaysia’s Fusion Crest to jointly set up a US$15M oleochemicals plant in Johor, Malaysia. The plant will be able to process 120 tonnes/day of fatty acid distillates utilising equipment from Swiss company Sulzer Chemtech. Starting the second year of operation, PHI estimates the plant will be able to generate some US$73.4M in revenues and US$13.2M in profits before taxes. The group will provide all investment capital and own 70% of the joint venture company. Fusion Crest owns a number of patented processing techniques to convert non-edible oils or fatty acid distillates into oleochemical products,

such as C16 palmitic acid, C8/C10, C12 lauric acid, C14 myristic acid, methyl ester, methyl sterate/olate, refined glycerin and residue oil. “Demand for oleochemical products from base fatty acids and base esters to fatty alcohols, detergent, metallic soap and other derivatives have seen constant growth over the years in the range of 6%-10%, except for year 2009 where there was a downturn in demand,” said PHI. “From the early 1980s to present, the shift of oleochemical manufacturing facilities from Europe to South East Asia and China has been mainly attributed to availability of raw materials; market demand for end products; manufacturing cost; and growth in technological development,” the company added.

BioAmber to supply succinic acid

enewable technology company Gevo Inc, USA announced on 24 March that India’s Praj Industries had signed an agreement to license up to 250M gallons of isobutanol capacity for sugar-based ethanol plants over the next 10 years. Gevo will market the isobutanol produced by Praj’s sub-licensees. Praj will contribute process engineering and equipment services to expand isobutanol capacity at Gevo’s plant in Luverne, Minnesota, USA as well as to improve yields and optimise energy consumption. “Isobutanol is a high performance biofuel that can solve many of the issues of first generation biofuels,” said Praj executive chairman Pramod Chaudhari. “It also enables a true biorefinery model wherein a number of speciality chemicals and bio-products can be produced using isobutanol as a feedstock.” Praj supplies process engineering, as well as equipment and system manufacturing, to the ethanol, brewery industries, industrial wastewater treatment, pharma, biotech and cosmetic sectors. Gevo has developed proprietary technology that uses a combination of synthetic biology, metabolic engineering, chemistry and chemical engineering to focus primarily on the production of isobutanol, as well as related products from renewable feedstocks. It produces isobutanol, ethanol and high-value animal feed at its fermentation plant in Luverne. Gevo also operates a biorefinery in Texas, in collaboration with South Hampton Resources, to produce renewable jet fuel, octane and ingredients for plastics.

Elevance expanding applications

levance Renewable Sciences Inc announced on 24 March that it was expanding the market applications of its palm oilbased Elevance Clean 1200 ingredient from manufacturing and transportation maintenance into the industrial and institutional laundry, food processing and food service, and oil and gas sectors. The ingredient is produced utilising Elevance’s proprietary olefin metathesis technology at its biorefinery in Gresik, Indonesia, a 180,000 tonnes/year joint venture with Wilmar International. Elevance said it had also obtained three certifications for Elevance Clean 1200. It was now

listed in the US Department of Agriculture BioPreferred catalogue; the CleanGredients database; and certified as a cleaning ingredient by NSF International for non-food contact applications. Elevance has two biorefineries to produce novel speciality chemicals – its Gresik biorefinery now operating on palm oil; and a facility in Natchez, Mississippi, USA with 310,000 tonnes/ year capacity, which is expected to begin production in 2016, initially using canola or soyabean oil. The refineries can run on multiple feedstocks including palm, mustard, soyabean, canola, jatropha or algal oils.

Cargill acquires OPX’s technology

gribusiness giant Cargill announced on 28 April that it had acquired Colorado-based OPX Biotechnologies’ proprietary fermentation-based processes and systems. These technologies are used to produce bio-based chemicals from sugars for use in non-food applications such as lubricants, detergents, plastics, agrichemicals and personal care products. OPX’s EDGE (Efficiency Directed Genome Engineering) technology is up to 5,000 times faster than conventional bioengineering methods for redesigning the genetic code of microbes, according to Biofuels Digest. The company has been focusing on developing applications to produce 3-HP (3 hydroxypropionic acid) via fermentation, which is then converted in one step to bio-based acrylic acid.

Penang project

eading oleochemical products producer Peter Greven started up a new production facility for metallic soaps in April at its site in Penang, Malaysia to serve increasing demand for metallic stearates in the Asian markets. Metallic soaps include salts made from fatty acids, especially stearin, and are used in different applications in the plastic, rubber, paper and building industries, as well as life science applications. The auxiliary and additives products manufactured at the Penang site will be marketed under the brand name Palmstar.

12 OFI – JUNE 2015 www.oilsandfatsinternational.com

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DIARY OF EVEN TS

28 JUNE - 3 JULY 2015

20-21 AUGUST 2015

FOSFA - Middle Managers Course

Palmex Thailand 2015 Exhibition

VENUE: Royal Holloway, Egham, Surrey, UK CONTACT: Anna Baran, FOFSA, UK Tel: +44 20 7283 5511 E-mail: anna.baran@fosfa.org Website: www.fosfa.org

VENUE: CO-OP Exhibition Centre, Surat Thani. Thailand CONTACT: Fireworks Media (Thailand) Co Ltd Tel: +66 2513 1418 E-mail: thai@asiafireworks.com Website: www.thaipalmoil.com

5-9 JULY 2015 14th International Rapeseed Conference

VENUE: The Convention Centre at TCU Place, Saskatoon, Saskatchewan, Canada CONTACT: Nicola Adams, IRC 2015 Event Manager, Canada Tel: +1 306 668 2650 E-mail: nicola.adams@agwest.sk.ca Website: www.event-wizard.com/ira2015

2-4 SEPTEMBER 2015 2nd High Oleic Oils Congress

VENUE: Paris, France CONTACT: FAT & Associés, France Tel: +33 567 339 206 Fax: +33 567 339 203 Website: www.higholeicmarket.com/hoc-2015

6-11 SEPTEMBER 2015 FOSFA - Basic Introductory Course

VENUE: Royal Holloway, Egham, Surrey, UK CONTACT: Anna Baran; FOFSA, UK Tel: +44 20 7283 5511 E-mail: anna.baran@fosfa.org Website: www.fosfa.org

9-11 SEPTEMBER 2015 Australasian AOCS Section Biennial Meeting (AAOCS)

VENUE: Victoria, Australia CONTACT: AAOCS Secretary Jacqui Adcock Tel: +61 352272096 E-mail: jacqui.adcock@deakin.edu.au Website: www.aaocs2015.wordpress.com

8-9 JULY 2015 12th Oleochem Outlook 2015

VENUE: Xiamen, China CONTACT: Jill Zhang Tel: +86 21 5155 1208 E-mail: jillzhang@enmore.com Website: http://oleochemen.cbibiz.com

6-7 AUGUST 2015 Malaysia-Philippines Palm Oil Trade Fair & Seminar (POTS) 2015 VENUE: Manila, Philippines CONTACT: Mr Muhammad Kharibi/Mr Mohd Haezh Adbul Rahman, Malaysian Palm Oil Council, Malaysian Secretariat Tel: +60 37806 4097 E-mail: kharibi@mpoc.org.my or mhafezh@mpoc.org.my Website: www.mpoc.org.my/Palm_Oil_ Trade_Fair_and_Seminar_(POTS)_2015_ Announcement.aspx

OFI events 13-14 April 2016 OFI India 2016 VENUE: Hyderabad International Convention Centre, India

www.ofievents.com/india 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 13 OFI – JUNE 2015 www.oilsandfatsinternational.com

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D IARY OF EVEN TS

3-5 NOVEMBER 2015

6-8 OCTOBER 2015

15-17 SEPTEMBER 2015 oils+fats International Trade Fair for the Technology and Trade of Oils and Fats

VENUE: Messe München, MOC Veranstaltungscenter München, Germany CONTACT: Messe München GmbH, Germany Tel: +49 89 949 11 328 E-mail: info@oils-and-fats.com Website: www.oils-and-fats.com/en

PIPOC 2015

VENUE: Kuala Lumpur, Malaysia CONTACT: Malaysian Palm Oil Board E-mail: pipoc2015@mpob.gov.my Website: www.mpob.gov.my

14-15 OCTOBER 2015

7th Palmex Indonesia 2015

VENUE: Santika Premiere Dyandra Hotel & Convention, Medan, Indonesia CONTACT: PT Fireworks Indonesia Tel: +62 21 4290 0030 E-mail: info@asiafireworks.com Website: www.palmoilexpo.com

9th Global Oils and Fats Forum 2015

15-17 SEPTEMBER 2015

VENUE: Los Angeles, USA CONTACT: Mohd Izham Hassan, Haznita Husin, Malaysian Palm Oil Council Tel: +603 7806 4097 E-mail: izham@mpoc.org.my or haznita@mpoc.my Website: www.mpoc.org.my

Deep Fat Frying Symposium

VENUE: MOC, Munich, Germany CONTACT: Euro Fed Lipid, Germany Tel: +49 69 7917 533 Fax: +49 69 79 17565 E-mail: info@eurofedlipid.org Website: www.eurofedlipid.org/meetings/ munich2015/index.php

12-13 NOVEMBER 2015 AOCS Oils and Fats World Market Update VENUE: Dublin, Ireland CONTACT: Jamie Lourash, AOCS, USA Tel: +1 217-693-4823 E-mail: jamiel@aocs.org Website: www.worldmarket.aocs.org

19-23 OCTOBER 2015 82nd National Renderers Association (NRA) Annual Convention

18-19 SEPTEMBER 2015 Malaysia-Poland Palm Oil Trade Fair & Seminar (POTS) 2015

VENUE: Warsaw, Poland CONTACT: Malaysian Palm Oil Council Tel: +603 78064097 E-mail: azriyah@mpoc.my or kumar@mpoc.eu Website: www.mpoc.org.my

22-24 SEPTEMBER 2015

VENUE: Ritz Carlton, Laguna Niguel, California, USA CONTACT: Marty Covert, NRA Convention Coordinator Tel: +1 703 754 8740 E-mail: co@martycovert.com Website: www.nationalrenderers.org/events/ convention/

27-30 OCTOBER 2015

8th Biofuels International Conference

VENUE: Porto, Portugal CONTACT: Ishemin Juma, Biofuels International, UK Tel: +44 20 3551 5751 E-mail: shemin@biofuels-news.com Website: www.biofuels-news.com/conference

27-30 SEPTEMBER 2015

SODEOPEC2015 – Soaps, Detergents, Oleochemicals and Personal Care

VENUE: Miami, Florida CONTACT: Registratio, Doreen Berning Tel: +1 217 693 4813 Fax: +1 217 693 4857 E-mail: doreenb@aocs.org Website: http://sodeopec.aocs.org/index.cfm

31 OCT - 4 NOV 2015

13th Euro Fed Lipid Congress

VENUE: Florence, Italy CONTACT: Euro Fed Lipid, Germany Tel: +49 69 79 17533 E-mail: info@eurofedlipid.org Website: www.eurofedlipid.org/meetings/ florence2015/index.php

World Congress on Oils + Fats and 31st ISF Lectureship Series

4-6 OCTOBER 2015 25th Canadian Conference on Fats and Oils VENUE: Hotel Delta Québec, Québec, Canada CONTACT: David Berthiaume, General Chairperson, Canadian section, American Oil Chemists’ Society (CAOCS) Tel: +1 418 338 1318 ext. 223 E-mail: dberthiaume@oleotek.org Website: http://cribiq.qc.ca/en/cribiq/ events/25th-canadian-conference-fats-andoils-64.html

VENUE: Rosario, Argentina CONTACT: Jeffry Newman, International Society for Fat Research Secretariat Tel: +1 217 359 2344 Fax: +1 217 351 8091 E-mail: jnewman@isfnet.org Website: www.isfnet.org

2-5 NOVEMBER 2015

20-21 NOVEMBER 2015 PORAM Annual Forum and Dinner

VENUE: One World Hotel, Selangor, Malaysia CONTACT: PORAM Secretariat, Malaysia Tel: +603 7492 0006 E-mail: poram@poram.org.my Website: www.poram.org.my

25-27 NOVEMBER 2015 China International Edible Oil & Olive Oil Industry Expo

VENUE: Beijing China International Exhibition Center (CIEC), Beijing, China CONTACT: Nabeel Fahal, Africa and Middle East Regional Manager Tel: +86 135 227 12406 E-mail: nabilfahal@yahoo.com Website: http://www.oilfair.cn/en_index.php

3-5 DECEMBER 2015 7th biennial Journées Internationales d’Etude sur les Lipides (JIEL) conference VENUE: Marrakech, Morocco CONTACT: Prof Ahmed Adlouni, President, Société Marocaine pour l’Etude des Lipides (SMEL) Tel: +212 0522 704 672 Fax: +212 0522 704 675 E-mail: adlounia@yahoo.fr

For French participants: Fabrice Turon, President, Société Francaise pour l’Etude des Lipides (SFEL) Tel: + 33 567 339 206 E-mail: fturon@fat-associes.com

F.O. Lichts World Ethanol and Biofuels

VENUE: InterContinental Budapest, Hungary CONTACT: Informa Agra Customer Services, UK Tel: +44 20 3377 3658 Fax: +44 20 3377 3659 E-mail: registrations@agra-net.com Website: www.worldethanolandbiofuel.com

For a full listing of oils and fats industry events, go to: www.ofimagazine.com

15-16 DECEMBER 2015 Malaysia-Egypt Palm Oil Trade Fair & Seminar (POTS) 2015

VENUE: Cairo, Egypt CONTACT: Zainuddin Hassan, Nur Adibah, Malaysian Palm Oil Council Tel: +603 7806 4097 Fax: +603 7806 2272 E-mail: zainuddin@mpocegypt.com or nuradibah@mpoc.org.my Website: www.mpoc.org.my

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Will the supply boom slow? FIGURE 1: CBOT SOYABEAN FUTURES NEARING FIVE-YEAR LOW

record three-year boom in oilseed raw material supply may finally fizzle in 2015/16 as soyabean and rapeseed crops decline – although record soya stocks and further growth in palm oil supplies should continue to keep input costs down across the complex. Some realignment of market shares between the major oils is also likely as slackening rape and sunflower oil supplies put the onus on palm and soya to meet more of the global demand growth. The current season’s soya supplies seem to be turning out larger than expected, as yields from the mostly harvested Latin American crops come in on the high side of estimates. Some analysts have recently put combined Brazilian and Argentine production as much as 4M tonnes over the latest (May) USDA estimate of 153M tonnes (already revised up from 150.5M tonnes in March). That suggests global oilseed output could finish up as high as 538M tonnes – 33M tonnes more than in 2013/14. That comes on top of an output rise of 29M tonnes in 2013/14 and 28M tonnes in the previous season – in sharp contrast to the 13M tonnes drop that markets had to contend with in 2011/12, when the top three soya producers’ crops all suffered weather losses. With global oilseed crush only growing by about 14M tonnes this season (mostly down to soyabeans) the soya carryover into 2015/16 is currently seen between 85M and 90M tonnes, compared to the previous four-year average of 61M tonnes. The surplus would have been even larger had the USDA not cut its estimates for Argentine stocks to reflect some backdated upward revisions to the country’s domestic use. Unusually large stocks are being carried over in Brazil and Argentina where producers held back their 2014 crops as a hedge against rising inflation and depreciating local currencies. Movement of these record regional crops has also been slowed by a series of stoppages and roadblocks caused by wage disputes between employers and truckers, port and crush plant workers. Some analysts have warned that demand may build to market these in the approach/ aftermath of the next US harvest, leading to intense downward pressure on prices.

Oilseed supply slowing However, the USDA’s first look at the 2015/16 global oilseed outlook suggests the supply juggernaut is slowing. It builds in a US soya crop number close to recent market ideas – about 104.8M tonnes versus last year’s record 108M tonnes. While few might quibble at this stage with the USDA using a trend yield of 46 bu/acre, the department might

CHARTS: JOHN BUCKLEY

It has been predicted that the three-year oilseed raw material supply boom may finally run out in 2015/16 due to crop declines, economic difficulties in Latin America and the Ukraine, as well as difficult weather conditions. John Buckley writes

FIGURE 2: VEGETABLE OIL PRICES MONTHLY AVERAGES

be under-rating planted area (which it has at just +0.9M acres to reach 84.6M acres versus some private analysts’ forecasts of increases by 1.5-2.5M acres). So the 2015 US crop could turn out larger than the USDA thinks, maybe even as big as – or bigger than – last year’s, given an early start to sowing and current ideal growing conditions. The USDA has been more generous with its forecasts for the Latin American crops that will be sown this coming autumn for harvest in 2016. It has Brazil up 2.5M tonnes to 97M tonnes (another new record) and Argentina just 1.5M tonnes under this year’s expected record 58.5M tonnes. The sowing assumptions on which these Latin American estimates are based may be somewhat ‘negotiable’ given the extreme credit difficulties farmers in both countries are suffering due to economic squeezes and government interventions in trade policy. However, looking at past performance under difficult conditions, and the price relationships signalled by Chicago new crop soya and maize futures, Latin American farmers may well continue to favour oilseeds more than cereals when it comes to crop expansion. With smaller Chinese output offset by higher Indian production and no game-changing swings among other main producers, the world soyabean crop next season is expected to finally level off close to this season’s 317M tonnes. Combined with the huge carryover stocks, these ongoing big supplies and affordable prices

are expected to keep global soya crush growing by around 12M tonnes in the year ahead. However, consumption will still again be far out-paced by the influx of new crop supplies, suggesting even bigger stocks by September 2016 (upwards of 96M tonnes – or about as much as the US or Brazil would be expected to produce in a normal year). None of this is supportive of the forward price structure for soyabeans. As OFI went to press, prices have, not surprisingly, begun to falter again after a fairly length period range bound around US$9.50-US$10/bu (compared with last year’s peak of US$15.30/bu). Forward prices don’t yet show much of a discount, given the sheer weight of supplies, with CBOT futures quoting the low US$9’s not only through the next season but right through to the end of the 2017/18 season (see Figure 1, above). That seems to show rather too much faith in (a) producers cutting back on their sowings in North/South America or (b) the odds on these crops encountering one of their occasional severe weather upsets during the next two seasons. Earlier this season, some pundits were speculating that soyabean prices could drop to US$7.50-8.50/bu under the weight of supply. The USDA at least pencils in the possibility of a weaker or stable price scenario, currently quoting an ex-farm average price of US$8.25-9.75/bu for next season. Meanwhile, the speculative funds are heavily short of the CBOT market, betting on price falls – a strategy that currently seems v

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to farm credit issues curbing input use and yields. EU farmers are also seen sowing a bit less for a decline of 440,000 tonnes in the next world crop at 8.5M tonnes. Sunflowerseed crushings are seen at a similar level to this season’s but only with stock drawdown from 2.4M tonnes carried into the next season to 1.7M tonnes by the end of it. Sunflower oil stocks may also tighten if demand is maintained around the 15M tonne plus level, suggesting potential for price premiums to expand in this market too, as Europe competes with the developing world for supplies to feed its domestic deficit. There have already been some signs of this on the Rotterdam benchmark market, where any-origin sunfloweroil prices have risen by about 12-13% since March versus a mere 4% increase in soya oil costs.

FIGURE 3: PALM OIL SUPPLY GROWTH

v anything but reckless. Turning to the demand forecasts for the coming season, crush growth is again seen mainly in China (+3.15M tonnes), Argentina (+2.9M tonnes), Brazil (+900,000 tonnes), the USA (+544,000 tonnes) India (+1.7M tonnes) and Paraguay (+500,000 tonnes). Demand for soyabean oil is expected to expand by almost 1.9M tonnes led by China (+746,000 tonnes) and India (+600,000 tonnes), the remainder spread across the EU, the USA and a host of moderate/ smaller consumers. The main caveat on this list of growth markets is probably China, where a slowing economy and some problems with pig production margins have questioned its demand this year. China is usually a reliable growth market and has been by far the most important component for a decade and more (accounting for 50% of world crush expansion, over 80% of soyabean import growth and 43% of soya oil consumption growth since 2010). Growth of world demand for soya oil has already slowed this season to 3.8% from last season’s 6.4%, mainly due to Chinese demand growth halving to 4.4%. Although that is currently expected to improve somewhat in 2015/16, markets will need to monitor this trend.

Rape/sunseed stocks down

Global rapeseed crops turned out better than expected this season, slightly exceeding the record 2013/14 total of 71.7M tonnes and meeting expanded crush (+2.2%) without depleting comfortable carryover stocks. Mostly, that good result was due to a record European crop (+3M tonnes), more than offsetting a smaller Canadian one (–2.4M tonnes). The coming 2015/16 season is likely to see some drawdown of global stocks, however, as world output dips back to around 68M tonnes. The key factor will be an expected drop in the European crop by an estimated 2.7M tonnes to 21.5M tonnes due partly to reductions in area and partly to yields easing from last year’s high 3.59 tonnes/ha average. The ban on neonicotinoid pesticides is seen as an important factor in both trends. Recent seeding intentions signalled by its government statistics agency suggest a 4.5% decline in Canadian area too, which with unchanged yields suggests a drop in production of 760,000 tonnes to 14.8M tonnes. However, given that this crop has had its best start in

years (after weather-induced planting delays in recent seasons) it’s possible that it could beat the forecasts by anything up to 1M tonnes. If not, Canadian supplies could get quite tight before the end of the coming season. Amid higher crush (+5.4% so far) and export trade, the recent Canadian government quarterly stock count has already come in below trade forecasts and its latest update suggests end-season carryout of only 950,000 tonnes shrinking to an 18-year low of just 500,000 tonnes by August 2017. While there were some concerns about a dry autumn and financial squeezes crimping planting plans in Russia and Ukraine, these crops are currently seen around 3.4M tonnes in total compared with last year’s 3.65M tonnes, which should enable them to continue a reasonable level of exports to customers including the EU. Australia’s crop is meanwhile seen increasing to 3.6M tonnes from the past season’s 3.4M tonnes – which should allow this key exporter to maintain a fair level of trade to the EU and other importers. Despite the smaller crop, the USDA sees global rapeseed oil consumption holding up next season around the 27.4M tonne level as global stocks of the oil are drawn down by about 700,000 tonnes. Demand in the largest market, the EU, is expected to slip slightly as food use holds steady at around 2.5M tonnes but the much larger industrial outlet sheds about 200,000 tonnes at just under 7.5M tonnes. However, in terms of global use, this will be offset by expected small increases in Chinese and Indian consumption. EU rapeseed futures have recently been trading at their highest for a year. While further strong price gains may be kept in check by a huge, competitively-priced soya supply, price premiums for rapeseed oil over the other soft oils and palm may well expand in the months ahead to reflect the tighter global balance. After its growth spurt last season, world sunflowerseed supply also seems to be approaching a second year of relatively tighter supply and stock drawdown to support slightly higher oil consumption. World sunflowerseed production for 2015/16 is currently forecast similar to last year’s (down almost 7% from the bumper 2013/14 figure on a combined 3M tonne drop in Russian and Ukrainian output). This year’s Russian crop is currently expected by the USDA to recover halfway back to the 2013 level at 9.4M tonnes but Ukraine’s could slip again due

Palm supplies better than expected Earlier in the year it seemed palm might push vegetable oil markets up as excess rain and floods resulted in the steepest drop in Asian monthly output figures for some years (see Figure 3, above). In the event, with big oil importers like China shifting demand to now cheaper soya oil, the impact on origin stocks was less severe than expected. Price gains were also forecast by the palm producer countries planning to soak up their surpluses with expanded biodiesel programmes, especially Indonesia. However, in recent months, doubts have persisted about the timing and impact on supplies for food oil users, given the need for vast investment in infrastructure at a time when collapsed crude oil prices question the viability of alternative fuel schemes. At the same time, palm production – far from sustaining a long-term hit from the winter floods, – seem to be benefiting from the abundant oil moisture reserves with sharp jumps in Malaysian March and April output promising an impressive surge during the seasonally strong summer months. Even if yields simply return to trend, much better exports will be required than seen during the first four months of this year, when Malaysian shipments actually fell by over 13%. China was the main factor, its demand down by a third although other key buyers like Bangladesh, Pakistan, the USA and Europe also took less than last year. As OFI went to press, Malaysian exports seemed to be picking up after duty cuts and a weakening of the ringgit, leading to a mild price rally. However, origin stocks – which have already crossed the 2M tonne level in Malaysia to a fivemonth high – will be closely watched by traders in the months ahead. Markets will also be keeping an eye on a developing El Niño, which can often lead to adverse dry conditions in east Asia. However, unless a full-blown El Niño actually occurs, supplies look set to increase over the summer months, begging competitive palm oil prices. Last year’s seasonal output increase from March to the August peak was a hefty 35.7%. Palm also has to contend with a huge soyabean oil supply trading at far lower premiums to palm oil than in past years. Soya and palm’s combined share of the global edible oil market has remained fairly constant in recent years at around two-thirds. w John Buckley is Oils & Fats International’s market correspondent

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Celebrating 30 years of OFI Biofuels Issue May 2015 t Vol 31 No 4 www.oilsandfatsinternational.com

RAPESEED

Risk or opportunity?

ASIA

Powering China

ITALY

Held back by EU policy

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OILSEEDS

Supercharged safﬂower

TRANSPORT

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January 2014 Vol 30 No 1 www.oilsandfatsinternational.com

POC PARTNER

CHINA

Yihai Kerry takes the lead

ASIA

Rice bran’s liquid gold

PALM OIL

THIS YEAR MARKS THE 30TH ANNIVERSARY OF OILS & FATS INTERNATIONAL (OFI). UP UNTIL THE FIRST ISSUE OF OFI IN 1985, NO PUBLICATION HAD FOCUSED COMPLETELY AND EXCLUSIVELY ON THE INTERNATIONAL OILS AND FATS AND OILSEEDS TRADE. “The straightforward objective of this unique bi-monthly magazine will be to single-mindedly pursue the interests of all sectors of the trade it seeks to serve, from producers through processors and on to end-users and their markets,” the then editor Michael Segal wrote. “OFI will be completely independent and objective. It will be authoritative, totally international in scope, approach and readership and fully worthy of the diverse and fascinating industry it now begins to serve.” Looking back on that first issue of OFI certainly makes interesting reading – some things have changed considerably over the past 30 years while other topics still remain as relevant now as three decades ago. Some of the headline news then – ‘Will EC crushers be staved of supply’, ‘Record oilseed production forecast in Australia’, ‘Record coconut supply from the Philippines’ and ‘Spain olive production up sharply’ reflect how feedstock supply is still fundamental to our industry. John Buckley – our long-serving market correspondent – wrote about the Soviet Union’s impact on the global market. While it may be China and India we now look to as the key influencers, we are still an industry impacted by the trade patterns of the big global buyers. Some of the articles back in 1985 show how far we have moved on. Our first feature in Issue 1 of OFI saw the Chicago Board of Trade introducing Europeans to an American novelty – agricultural options – with 1984 seeing the options market for soyabeans begin trading on the Chicago exchange. Nowadays, where would we be without hedging instruments like forward contracts, swaps, futures contracts, options, foreign

OFI Nov cover_feature.qxp 10/4/12 9:14 AM Page 1

Maximising biomass

Oct/Nov 2012 Vol 28 No 8 www.oilsandfatsinternational.com

OFI April.May cover _feature.qxp 28/03/2012 11:14 Page 1

FLAXSEED

Recovering from the Triffid gene

RUSSIA

Readying for biofuels April/May 2012 Vol 28 No 4 www.oilsandfatsinternational.com

SPREADS

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BUTTER

Industry keeps spreading

Puff pastry margarine on trial

COMMODITY TRADING Smoke clears on US trading reform

SOUTH AMERICA

HIGH OLEIC OIL From niche to speciality

THE COV ER OF TH E OFI MAG AZINE IN VERY FIRST ISSU E OF MAY 198 5

exchange hedges and numerous derivative products. The US Food and Drug Administration had just ruled that canola oil was safe for human consumption. A feature looked at how Brazil’s groundnut production had become the victim of mechanised, large-scale agriculture in the traditional growing areas of São Paulo and Paraná states, where soyabean production was increasing. Brazil is now a top world soyabean producer of over 90M tonnes/year from under 20M tonnes then. Another feature wrote that in 1984, palm oil had dislodged petroleum as Malaysia’s largest single source of export earnings, with palm oil exports totaling US$2.4bn (RM6.1bn). Malaysia’s palm oil production was 4.1M tonnes in 1985, but has grown nearly ﬁve-fold to reach 19.6M tonnes in 2014, earning the country US$17.4bn (RM63.4bn) in export earnings. The article looked at the need for research to improve planting and harvesting techniques and discover new end uses. “One of the more interesting research plans is a project to test the technical suitability of palm oil as a diesel fuel substitute.” Who could have predicted the growth of the biodiesel industry worldwide and the impact that it would have on the vegetable oil market? The oils and fats industry has evolved in the past 30 years to meet increased demand for this vital commodity resulting from a world population which has grown from 4.84bn in 1985 to over 7bn now. The technology to do this, the research to achieve it, the new end-uses which have developed and the work to address sustainability concerns are a testament to the whole industry. A lot has changed in the last 30 years but for OFI, its initial goal set out by its ﬁrst editor still remains the same: “To promote more and better business in every sector of the industry by giving companies and executives the essential information they must have if they are to make the most of the opportunities presented in this expanding and complex global industry.” Serena Lim Editor

SOUTH AMERICA

The China factor Brazil addresses infrastructure woes

Examining Brazilian and Argentine shipping sectors

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Plant & technology listing 2015 Oils & Fats International’s updated global selection of plant and equipment suppliers to the oils and fats industry, accompanied by a chart of the company activities

Austria GIG Karasek GmbH Neusiedlerstraße 15-19 Gloggnitz-Stuppach 2640 Tel: +43 2662 42780 E-mail: dsv@gigkarasek.at Website: www.gigkarasek.com Other: Evaporators, turnkey plants

Belgium *Desmet Ballestra Group Belgicastraat, 3 - B-1930, Zaventem Tel: +32 2 716 1111 Fax: +32 2 716 1109 E-mail: info@desmetballestra.com; Website: www.desmetballestra.com; Contact: Olivier Hanne VYNCKE N.V. Gentsesteenweg 224 Harelbeke 8530 Tel: + 32 56 730 630 E-mail: info@vyncke.com Website: www.vyncke.com Other: Biomass energy plants

Canada Solex Thermal Science Inc 250, 4720 - 106 Ave SE, Calgary Alberta T2C3G5 Tel: +1 403 254 3500 Fax: +1 403 254 3501 E-mail: info@solexthermal.com Website: www.solexthermal.com

China *Dalian Baofeng Machinery Manufacturing Co Ltd No 198, Section 2, Xinhua Road, Zhuanghe City, Dalian, Liaoning Tel: +86 411 8983 4668 Fax: +86 411 8981 3505 E-mail: sale@baofeng.net.cn Website: www.baofeng.net.cn Contact: Maggie Tang

Myande Group No. 199, South Ji’an Road, Yangzhou City (225127), Jiangsu Province Tel: +86 514 8784 9000 Fax: +86 514 8784 8883 E-mail: myande@gmail.com, lxd@myande.com Website: www.myande.com Contact: Li Xudong Scikoon Industry Co Ltd Building C, Runcheng Industry Zone, No.68, Huagang Avenue, Huadu District Guangzhou, Guangdong 510800 Tel: +86 20 3938 8895 Fax: +86 20 3686 2630 E-mail: info@scikoon.com; export@scikoon.com Website: www.scikoon.com Contact: Isabella Tran

Costa Rica Shutek Oleo S.A. 52 Condominio Interamericana Calle Cordero, San Pablo, Hered Tel: +506 8309 1555 E-mail: hkshukla@shutek.com Website: www.shutek.com Contact: Hari Krishna Shukla

Denmark Alfa Laval Copenhagen A/S Maskinvej 5, Soborg DK-2860 Tel: +45 3953 6000 E-mail: bent.sarup@alfalaval.com Website: www.alfalaval.com Contact: Bent Sarup Gerstenberg Services A/S Vibeholmsvej 21, PO Box 196 Brøndby Copenhagen 2605 Tel: +45 4343 2026 Fax: +45 4343 2028 E-mail: info@gerstenbergs.com Website: www.gerstenbergs.com Novozymes A/S Krogshøjvej 36 Bagsværd 2880 Tel: +45 4446 0000 E-mail: hch@novozymes.com Website: www.novozymes.com Contact: Hans Christian Holm *SPX Flow Technology Copenhagen A/S Oestmarken 7, 2860 Soeborg Tel: +45 7027 8222 Fax: +45 7027 8223 E-mail: gs.dk.sales@spx.com Website: www.gs-as.com

Finland *Outotec oyj Riihitontuntie 7D, Espoo, 02200 E-mail: filtration@outotec.com Website: www.outotec.com Contact: Inka Tuononen

Germany *Air Liquide Engineering & Construction Lurgi GmbH Lurgiallee 5, D-60439, Frankfurt am Main Tel: +49 69 58080 Fax: +49 69 5808 3888 E-mail: communication@lurgi.com Website: www.lurgi.com Contact: Daniela Kriener Buss-SMS-Canzler GmbH Kaiserstrasse 13-15, Butzbach 35510 Tel: +49 6033 850 Fax: +49 6033 85 249 Email: info@sms-vt.com Website: www.sms-vt.com Other: Molecular distillation, evaporators CPM Sket GmbH Schilfbreite 2, Magdeburg 39120 Tel: +49 391 682 251 E-mail: kirsten.ruff@cpm-sket.de Website: www.cpm-sket.de Contact: Kirsten Ruff GEA Westfalia Separator Group GmbH Wener-Habig-Straße 1, Oelde, 59302 Tel: +49 25 22 770 E-mail: ws.info@geagroup.com, EventsRenewableResources@geagroup.com Website: www.westfalia-separator.com Contacts: Klaus-Peter Eickhoff, Robert Zeldenrust GEA Wiegand GmbH Am Hardtwald 1, Ettlingen 76275 Tel: +49 7243 7050 Fax: +49 7243 705 330 E-mail: gea-wiegand.info@gea.com Website: www.gea.com Other: Evaporators *GekaKonus GmbH Siemensstr. 10, Eggenstein-Leop, 76344 Tel: +49 721 943 740 Fax: +49 721 943 7444 E-mail: info@gekakonus.net Website: www.gekakonus.net Contact: Knut Fellbaum Haarslev Industries, Press Technology GmbH & Co. KG Hasteraue 9, 42857 Remscheid Tel: +49 2191 20199 12

18 OFI – JUNE 2015 www.oilsandfatsinternational.com

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India

Fax: +49 2191 20199 29 E-mail: monika.hoettges@haarslev.com Website: www.haarslev.com Contact: Monika Höttges

Fenix Process Technologies Pvt Ltd K 6/1, Malini, Erandwane Co-op Housing Society, Erandwane, Pune - 411004 Tel: +91 20 66508772, 6500 8773 Fax: +91 20 2545 8454 E-mail: info@fenix.in; Website: www.fenix.in Contact: Mr Jankar Ghosh

HF Press+LipidTech Seevestrasse 1, Hamburg, 21079 Tel: +49 40 771 79 488 E-mail: jan.ikels@hf-group.com Website: www.hf-group.com Contact: Jan Ikels HTI - Gesab GmbH Sauerbruchstraße 9-11, Ellerau Schleswig Holstein 25479 Tel: +49 4106 7009 / 0 Fax: +49 4106 7009 / 99 E-mail: info@hti-ellerau.de Website: www.hti-ellerau.de Other: Process heating

Fortune Natural Resources 402 Lenyadri Tower, Plot No 49 -2 Sector 19-A Nerul East Navi Mumbai, Maharashtra 400 706 Tel: +91 22 2772 5497 Fax: +91 22 2772 4909 E-mail: pawankpoddar@gmail.com Website: www.fortunenatural.com Contact: Pawan Kumar Poddar

*Koerting Hannover AG Badenstedter Str. 56 Hannover 30453 Tel: +49 511 2129 0 Fax: +49 511 2129 223 E-mail: schibau@koerting.de Website: www.koerting.de Contact: Frank Schibau

*Kay Jay Chill Rolls Pvt Ltd 27 Industrial Area Phase – II, Panchkula – 134 113 Tel: +91 172 259 1209 / 1505 / 4531 Fax: +91 172 256 8256 E-mail: sales@kjrolls.com Website: www.kjrolls.com Contact: Nikhil Jindal

Maschinenfabrik Reinartz GmbH & Co. KG Industriestraße 14 Neuss, 41460 Tel: +49 213 197 6124 Fax: +49 213 197 6112 E-mail: g.strupat@reinartz.de Website: www.reinartz.de Other: Screw presses

Kumar Metal Industries Private Ltd 101 Kakad Bhavan 30th Road, Bandra (West), Mumbai 400050 Tel: +91 22 26441673, 28458200 28458300 E-mail: kumarind@vsnl.com Website: www.kumarmetal.com Contact: Rishabh S Maniktala

*ÖHMI Innovation GmbH Berliner Chaussee 66 Magdeburg, Saxony-Anhalt, 39104 Tel: +49 391 850 7150 E-mail: ptransfeld@oehmi.de Website: www.oehmi-engineering.de Contact: Dr Peter Transfeld

Sharplex Filters (India) Pvt Ltd Plot No. R-664, TTC Industrial Area Rabale, MIDC, Navi Mumbai - 400 701 Tel: +91 22 2769 6322/31/39 Fax: +91 22 27696325 E-mail: sharplex@vsnl.com Website: www.sharplex.com Contact: Satish V Khadk

*Rieckermann GmbH Mönckebergstrasse 10 D-20095 Hamburg Tel: +49 40 32020184 E-mail: k.wurl@rieckermann.com Website: www.rieckermann.com Contact: Kirsten Wurl

Indonesia Best Industry Group Jl. Pemuda No. 60-70, Sinar Mas Plaza Building (ex-BII) 9th floor Surabaya 60271 Tel: +62 31 545 0200/+62 81 330 797 388 E-mail: lynchesalamony2288@gmail.com Website: www.bestindustrygroup.com Contact: Lintjee Salamony (Lynche)

SIWACO GmbH Huettenweg 2, Netphen 57250 Tel: +49 2737 21 6060 Fax: +49 2737 21 6065 11 E-mail: info@siwaco.com Website: www.siwaco.com Other: Cracker and flaker rolls

Italy

VTA Gmbh & Co. KG Bernrieder Strasse 10 Niederwinkling 94559 Tel: +49 9962 9592 0 Fax: +49 9962 9592 200 E-mail: info@vta-process.de Website: www.vta-process.de Contact: Oliver Stoll Other: Wiped film and short path distillation, monoglyceride production

Andreotti Impianti S.p.A. Via Di Le Prata, 148, 50041 Calenzano (FI) Tel: +39 055 44870; Fax: +39 055 44917 35 E-mail: info@andreottiimpianti.com Website: www.andreottiimpianti.com Contact: Lorenzo Petruzzi C.M. Bernardini International S.p.A. Via Appia Km. 55,900 04012 Cisterna Di Latina (LT) Tel: +39 06 9687 1028 Fax: +39 06 9294 2564

E-mail: info@cmbernardini.it Website: www.cmbernardini.it Contact: Mario Bernardini, Vito Muraca, Andrea Bernardini Other: Meal processing, glycerine treatment refining, biodiesel distillation, fractionation & esterification Mazzoni LB Spa Corso Sempione 212/bis Busto Arsizio 21052 Tel: +39 03313 56111 E-mail: sales.soap@mazzonilb.it Website: www.mazzonilbgroup.com Servizi Industriali s.r.l. Marie Curie n. 19, Ozzano dell’Emilia Bologna, Emilia Romagna 40064 Tel: +39 051 795 080; Fax: +39 051 799 337 E-mail: macfuge@macfuge.com Website: www.macfuge.com Other: Dynamic centrifugal mixer

Malaysia Alfa Laval Malaysia Sdn Bhd Lot No. 4, Jalan Anggerik Mokara 31/54, Kota Kemuning, 40460 Shah Alam, Selangor Tel: +603 5122 2880; Fax: +603 5122 2378 E-mail: malaysia.info@alfalaval.com Website: www.alfalaval.com *Bruker Malaysia Sdn Bhd 303, Block A, Mentari Business Park No 2 Jalan PJS 8/5, Dataran Mentari 46150 Petaling Jaya, Selangor Tel: +603 5621 8303; Fax: +603 5621 9303 Website: www.bruker.com Farri (M) Sdn Bhd Block B-7-18, No 2, Jalan PJU 1A/7A Oasis Office Suite Ara Damansara 47301 Petaling Jaya, Selangor Tel: +603 7831 2686 / 7831 3375 Fax: +603 7831 2394 E-mail: henry@farri.com.my Website: www.farri.com.my Contact: Henry Pang Felda Global Ventures Holding Berhad (FGV) Level 42, Menara Felda, Platinum Park, No 11, Persiaran KLCC, 50088 Kuala Lumpur Tel: +603 2859 1754 E-mail: syuhada.naziri@gmail.com Website: www.feldaglobal.com Contact: Noor Syuhada Naziri Graceland Industries Sdn Bhd 02-07 Jalan Austin Perdana 2/23, Taman Austin Perdana, Johor Bahru, Johor, 81100 Tel: +60 12 2007133 E-mail: a.sinclair@graceland.com.my Website: www.ndcinfrared.com/ndc/ industries%20mt.aspx Contact: Alan Sinclair *Hisaka Works SEA Sdn Bhd Hisaka Works, Lot 4882, 5 Jalan SS13-2, Subang Jaya, H7180 Selangor Darul Ehsan Tel: +603 5621 8588; Fax: +603 5621 7588 E-mail: hkyeong@hisaka-asia.com Website: www.hisaka-asia.com

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PL ANT, EQU IPM EN T & TEC H N OLOGY

INTEC Energy Systems Sdn Bhd 6F-21, IOI Business Park, Bandar Puchong Jaya, 47170 Puchong Selangor Tel: +603 589 16642; Fax: +603 587 99824 E-mail: yap.fw@intec-energy.de Website: www.intec-energy.com Contact: Yap F W

*Geelen Counterflow Peter Schreursweg 38, Haelen, 6081 NX Tel: +31 475 592 315 Fax: +31 475 592 767 E-mail: info@geelencounterflow.com Website: www.geelencounterflow.com

JJ-Lurgi Engineering Sdn Bhd 16, Jalan 51A/225, Petaling Jaya Selangor 46100 Tel: +603 7861 6188 E-mail: jj-lurgi_enquiry@jjsea.com Website: www.jj-lurgi.com Contact: Anthony Kai Yuin Chang

MAHLE Industrial Filtration (Benelux) BV Schinkelwaard 20 1824 DS Alkmaar Tel: +31 72 52 73 445 Fax: +31 72 51 25 207 E-mail: hans.kok@nl.mahle.com Website: www.mahle-industrialfiltration.com Contact: Hans Kok

*Lipochem (M) Sdn Bhd Lot 34, Jalan Delima 1/3 Subang Hi-Tech Industrial Park 40450 Shah Alam, Selangor Tel: +603 5631 6666 Fax: +603 5632 6363 E-mail: sales@lipochem.com Website: www.lipochem.com.my

Schutter Group Kralingsweg 219-223, NL – 3062 CE Rotterdam Tel: +31 102 582 700 Fax: +31 144 23 532 E-mail: oscar.smit@schuttergroup.com Website: www.schuttergroup.com Contact: Oscar Smit

*Mettler Toledo (M) Sdn Bhd Unit 1-01 (1st Floor), Lot 8 Jalan Astaka U8/84 Seksyen U8, Bukit Jelutong Shah Alam Selangor 40150 Tel: +603 7844 5888; Fax: +603 7845 8773 Website: www.my.mt.com Contact: Joo Yen Shen

Serbia

*Muar Ban Lee Group Berhad JR52, Lot 1818, Jalan Raja, Kawasan Perindustrian Bukit Pasir, 84300 Muar, Johor Tel: +606 985 9998; Fax: +606 985 8889 E-mail: mbl@mbl.com Website: www.mbl.com Contact: H W Chua Oiltech Sdn Berhad Lot 6, Jalan Pasaran 23/5 Kawasan Miel Phase 10, Petaling Jaya, Selangor 40300 Tel: +603 5542 8288; Fax: + 603 5541 8288 E-mail: enquiry@oiltek.com.my Website: www.oiltek.com.my *Swisslog Malaysia Sdn Bhd 2 Jalan SS 7/9, Kelana Jaya 47301, Petaling Jaya, Selangor Tel: +603 7494 8609; Fax: +603 7492 0909 E-mail: wds.my@swisslog.com Website: www.swisslog.com Contact: Lee Chew Wan

Netherlands CPM Europe BV Distelweg 89, 1031 HD, Amsterdam Tel: +31 20 49 46 134 Fax: +31 20 63 64 294 E-mail: arthur.vom.hofe@cpmeurope.nl Website: www.cpmeurope.nl Contact: Arthur vom Hofe Dinnissen BV Horsterweg 66, Sevenum 5975 NB Tel: +31 77 467 3555 Fax: +31 77 467 3785 E-mail: powtech@dinnissen.nl Website: www.dinnissen.nl

T-1 Ada SZR Karadordeva 60, Ada 24430 E-mail: sales@t-1.rs Website: www.t-1.rs Contact: Tamas Toth

Singapore *Andritz Singapore Pte Ltd 25 Tuas Avenue 4, Singapore 639375 Tel: +65 6512 1800 Fax: +65 6863 4482 E-mail: separation.sg@andritz.com; mengyeong.chong@andritz.com Website: www.andritz.com Contact: Meng Yeong *DNR Process Solutions Pte Ltd 1 Bukit Batok Street 22 #01-01 GRP Building Singapore 659592 Tel: +65 689 637 68 E-mail: dinesh.sharma@dnrps.com Website: www.dnrps.com; Contact: Dinesh Sharma LIPICO Technologies Pte Ltd 61 Bukit Batok Crescent Unit 06-03/06 Heng Loong Building Singapore 658078 Tel: +65 6316 7800 Fax: +65 6316 7830 E-mail: sg.enquiry@lipico.com Website: www.lipico.com Other: Refining: biodiesel, oleochemical *Lipotech Project Engineering Pte Ltd 21, Bukit Batok Crescent #27-75 WCEGA Tower, Singapore 658065 Tel: +65 6515 0027 Fax: +65 6515 0037 Email: sudarshan@lipotechprojects.com Website: www.lipotechprojects.com Contact: Narayandas Sudarshan

Spain *Fundiciones Balaguer SA Polig Ind los vasalos parc 104, Onil, Alicante, 03430 Tel: +34 96556 4850 Website: www.balaguer-rolls.com Lipidos Santiga SA Ctra B-141, km 4,3 08130, Santa Perpetua de Mogoda, Barcelona Tel: +34 93 544 31 10 Fax: +34 93 574 19 36 E-mail: iribera@lipsa.es Website: www.lipsa.es Contact: Joan Ribera

Switzerland Bühler AG Gupfenstrasse 5, Uzwil 9240 Tel: +41 71 955 11 11 Fax: +41 71 955 33 79 E-mail: buhler.uzwil@buhlergroup.com Website: www.buhlergroup.com Buss ChemTech AG Hohenrainstrasse 12A, Pratteln 4133 Tel: +41 6182 56 462; Fax: +41 6182 56 737 E-mail: info@buss-ct.com Website: www.buss-ct.com Other: Hydrogeneration process technology, Buss loop reactor

UK Chemtech International Ltd Crown House, 1a High Street, Theale, Berkshire RG7 5AH Tel: +44 1189 861222 E-mail: nigel@chemtechinternational.com Website: www.chemtechinternational.com Europa Crown Limited Waterside Business Park, Livingstone Road, Hessle, East Yorkshire HU13 0EG Tel: +44 1482 640099 Fax: +44 1482 649194 E-mail: sales@europacrown.com Website: www.europacrown.com Other: Soya protein concentrates and speciality extraction Lovibond Tintometer Lovibond House, Solar Way Solstice Park Amesbury, Wiltshire SP4 7SZ Tel: +44 1980 664800 Fax: +44 1980 625412 E-mail: sales@tintometer.com Website: www.lovibondcolour.com Other: Colour measurement for quality control *Milling Trade Limited Celsius House, Aintree Road, Keytec 7 Business Park, Pershore, Worcestershire WR10 2JN Tel: +44 1386 55 65 19 Fax: +44 1386 55 26 71 E-mail: sales@millingtrade.com Website: www.millingtrade.com Contact: Tim Cox

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USA Anderson International Corp 4545 Boyce Parkway Stow, OH 44224 Tel: +1 216 641 1112 Fax: +1 330 688 0117 E-mail: melissa.occhionero@andersonintl.com Website: www.andersonintl.net Contact: Melissa Occhionero Crown Iron Works Co 2500 West Country Road C, Roseville Minnesota 55113 Tel: +1 651 639 8900 Fax: +1 651 639 8051 E-mail: ghaider@crowniron.com Website: www.crowniron.com Contact: Gregg Haider *French Oil Mill Machinery Co 1035 W. Greene Street PO Box 920 Piqua, Ohio 45356 Tel: +1 937 7733 420 Fax: +1 937 773 3424 E-mail: oilseedsales@frenchoil.com Website: www.frenchoil.com Contact: Jim King GA Expertise Inc 13501 SW 128th Street Suite 211, Miami, Florida 33186 Tel: +1 786 732 6291

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plant and technology listing 2015.indd 4

Fax: +1 786 842 3972 E-mail: hposschelle@gaexpertise.com Website: www.gaexpertise.com Contact: Hugues Posschelle Other: Palm oil mill equipment, palm oil fractionation, methyl ester process, margarine shortening plastisation, biomass boilers and turbo generators Hydro-Chem, a division of Linde Engineering North America 125 Hickory Springs Industrial Drive Canton, GA 30115 Tel: +1 770 345 2222 Fax: +1 770 345 2821 E-mail: sales@hydro-chem.com Website: www.hydro-chem.com Other: Fabricate SMR hydrogen plants, Reformer, PSA INOLEX Inc 2101 South Swanson Street Philadelphia PA 19148 Tel: +1 215 271 0800 E-mail: cheminfo@inolex.com Website: www.inolex.com Other: Ester manufacturing, biolubricants Oil-Dri Corporation of America 410 N. Michigan Avenue, Chicago, Illinois 60611 4213 Tel: +1 312 321 1515 E-mail: fluidspurification@oildri.com Website: www.oildri.com

Pope Scientific, Inc PO Box 80018, 351 N. Dekora Woods Blvd, Saukville, Wisconsin 53080 Tel: +1 262 268 9300 E-mail: info@popeinc.com Website: www.popeinc.com Contact: Dean Segal *Seed2Oil 706 16th Street, Bellingham, WA 98225 Tel: +1 360 224 4106 E-mail: info@seed2oil.com Website: www.seed2oil.com Contact: Alan Brewis Westway Terminals 9325 East Avenue S, Houston, TX 77012 Tel: +1 713 514 1015 Fax: +1 713 924 5032 E-mail: kortnie.joyner@westway.com Website: www.westwayterminals.com The above companies are a selection of plant, equipment and technology suppliers to the oils and fats industry who have replied to an Oils & Fats International questionnaire this year. Please refer to ‘Summary Table of Company Activities’ chart for companies’ areas of operation. * Denotes entries from 2014 questionnaire ‘Other’ refers to other activities selected in the accompanying chart

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P&E Chart.indd 1

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Sharplex Filters (India) Pvt Ltd

Kumar Metal Industries Private

Kay Jay Chill Rolls Pvt Ltd*

Fortune Natural Resources

Fenix Process Technologies Pvt

India

VTA Gmbh & Co. KG

SIWACO GmbH

Rieckermann GmbH*

w OILSEED CRUSHING MILLS w SOLVENT EXTRACTION w FISH OIL/MEAL PROCESSING Science behind Technology w RENDERING/FAT MELTING PLANT w PELLETING MILLS w OTHER w w DEGUMMING w w WINTERISING w w w CRYSTALLISATION w w w w OIL DISTILLATION/FRACTIONATION w w ALKALI & PHYSICAL REFINING w w w INTERESTERIFICATION 87x265Annonce -OFI-2015v001.indd 1 w w MISCELLA REFINING w w w DEODORISERS w BLEACHERS w w OIL DRYERS w w FAT SPLITTING w w FATTY ACID DISTIL’N/FRACT’N w w OTHER

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ÖHMI Engineering GmbH*

Maschinenfabrik Reinartz

Koerting Hannover AG

HTI – Gesab GmbH

HF Press + LipidTech

Technology

Haarslev Industries Press

GekaKonus GmbH*

GEA Wiegand GmbH

GEA Westfalia Separator

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Extraction

Refining

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CPM Sket GmbH

Construction Lurgi GmbH*

Air Liquide Engineering &

Germany

Outotec oyj*

Finland

Copenhagen AS*

SPX Flow Technology

Buss-SMS-Canzler GmbH

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HYDROGEN GENERATORS HYDROGEN SYSTEMS OTHER COOKING/SALAD OILS BUTTER FORMULATION SHORTENING/MARGARINE PROD’N VITAMIN E PRODUCTION LECITHIN PRODUCTION SULPHONATION ETHOXYLATION/PROPOXYLATION DETERGENT FORMULATION DETERGENT PRODUCTION SOAP PRODUCTION SOAP FINISHING COSMETICS PRODUCTION GLYCERINE REFINING FATTY ACID DERIVATIVES PHARMACEUTICALS BIODIESEL/METHYL ESTER OTHER PNEUMATIC CONVEYORS BELT CONVEYORS VIBRATORY CONVEYORS SLATTED CONVEYORS ELEVATORS LOADING ARMS/CHUTES AUGER FEEDERS STORAGE SILOS STORAGE TANKS OTHER SCREENS CENTRIFUGAL SEPARATORS GRAVITY SEPARATORS MAGNETIC SEPARATORS MEMBRANE SEPARATORS FILTER PRESSES PRESSURE LEAF FILTERS OTHER PACKING EQUIPMENT INSTRUMENTATION PUMPS/FLUID HANDLING VACUUM SYSTEMS/EJECTORS PROCESS HEATING SYSTEMS STEAM BOILER THERMAL OIL HEATER HEAT RECOVERY SYSTEM OTHER

Hydrogenation

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Gerstenberg Services A/S

Alfa Laval Copenhagen A/S

Denmark

Shutek Oleo SA

Costa Rica

Scikoon Industry Co Ltd

Myande Group

Manufacturing Co Ltd*

Dalian Baofeng Machinery

China

Canada

VYNCKE N.V.

Desmet Ballestra*

Belgium

Solex Thermal Science Inc

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4/29/15 6:0

PROCESS PLANT & EQUIPMENT

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End user processes/equipment

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Storage & handling

ANCILLARY EQUIPMENT

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Screens & filtration

Hydrogenation

OILSEED CRUSHING MILLS SOLVENT EXTRACTION FISH OIL/MEAL PROCESSING RENDERING/FAT MELTING PLANT PELLETING MILLS OTHER DEGUMMING WINTERISING CRYSTALLISATION OIL DISTILLATION/FRACTIONATION ALKALI & PHYSICAL REFINING INTERESTERIFICATION MISCELLA REFINING DEODORISERS BLEACHERS OIL DRYERS FAT SPLITTING FATTY ACID DISTIL’N/FRACT’N OTHER HYDROGEN GENERATORS HYDROGEN SYSTEMS OTHER COOKING/SALAD OILS BUTTER FORMULATION SHORTENING/MARGARINE PROD’N VITAMIN E PRODUCTION LECITHIN PRODUCTION SULPHONATION ETHOXYLATION/PROPOXYLATION DETERGENT FORMULATION DETERGENT PRODUCTION SOAP PRODUCTION SOAP FINISHING COSMETICS PRODUCTION GLYCERINE REFINING FATTY ACID DERIVATIVES PHARMACEUTICALS BIODIESEL/METHYL ESTER OTHER PNEUMATIC CONVEYORS BELT CONVEYORS VIBRATORY CONVEYORS SLATTED CONVEYORS ELEVATORS LOADING ARMS/CHUTES AUGER FEEDERS STORAGE SILOS STORAGE TANKS OTHER SCREENS CENTRIFUGAL SEPARATORS GRAVITY SEPARATORS MAGNETIC SEPARATORS MEMBRANE SEPARATORS FILTER PRESSES PRESSURE LEAF FILTERS OTHER PACKING EQUIPMENT INSTRUMENTATION PUMPS/FLUID HANDLING VACUUM SYSTEMS/EJECTORS PROCESS HEATING SYSTEMS STEAM BOILER THERMAL OIL HEATER HEAT RECOVERY SYSTEM OTHER

Other equipment

Science behind Technology

87x265Annonce -OFI-2015v001.indd 1

Screens & filtration Other equipment

ANCILLARY EQUIPMENT

Storage & handling

End user processes/equipment

PROCESS PLANT & EQUIPMENT

Refining

Extraction

Austria

Desmet Ballestra, proud sponsor of the 2015 OFI Plant & Equipment Guide.

GIG Karasek GmbH

Plant & technology chart 2015: Summary table of company activities

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P&E Chart.indd 2

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Westway Terminals

Pope Scientific Inc

Oil-Dri Corporation of America

INOLEX

Engineering North America

Hydro-Chem, A Division of Linde

GA Expertise

French Oil Mill Machinery Co*

Crown Iron Works Company

Anderson International Corp

United States

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OILSEED CRUSHING MILLS SOLVENT EXTRACTION w FISH OIL/MEAL PROCESSING RENDERING/FAT MELTING PLANT PELLETING MILLS w w OTHER w DEGUMMING w WINTERISING w CRYSTALLISATION w w OIL DISTILLATION/FRACTIONATION w w ALKALI & PHYSICAL REFINING w w87x265Annonce -OFI-2015v001.indd 1 INTERESTERIFICATION w MISCELLA REFINING w w w DEODORISERS w w BLEACHERS w OIL DRYERS w FAT SPLITTING w w FATTY ACID DISTIL’N/FRACT’N w w w OTHER HYDROGEN GENERATORS w HYDROGEN SYSTEMS w w OTHER w COOKING/SALAD OILS BUTTER FORMULATION w SHORTENING/MARGARINE PROD’N w VITAMIN E PRODUCTION w LECITHIN PRODUCTION SULPHONATION ETHOXYLATION/PROPOXYLATION w DETERGENT FORMULATION w DETERGENT PRODUCTION SOAP PRODUCTION SOAP FINISHING w w COSMETICS PRODUCTION w GLYCERINE REFINING w w FATTY ACID DERIVATIVES w PHARMACEUTICALS w w w BIODIESEL/METHYL ESTER w w w OTHER PNEUMATIC CONVEYORS BELT CONVEYORS VIBRATORY CONVEYORS SLATTED CONVEYORS ELEVATORS LOADING ARMS/CHUTES AUGER FEEDERS STORAGE SILOS w w w STORAGE TANKS w OTHER SCREENS CENTRIFUGAL SEPARATORS GRAVITY SEPARATORS MAGNETIC SEPARATORS MEMBRANE SEPARATORS FILTER PRESSES w PRESSURE LEAF FILTERS OTHER PACKING EQUIPMENT w INSTRUMENTATION w PUMPS/FLUID HANDLING VACUUM SYSTEMS/EJECTORS w PROCESS HEATING SYSTEMS w STEAM BOILER THERMAL OIL HEATER w HEAT RECOVERY SYSTEM w w OTHER

Science behind Technology Extraction

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Lovibond Tintometer

Europa Crown Ltd

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Chemtech International

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United Kingdom

Buss ChemTech AG

Bühler AG

Switzerland

Lipidos Santiga SA

Fundiciones Balaguer SA*

Spain

Pte Ltd*

Lipotech Project Engineering

LIPICO Technologies Pte Ltd

DNR Process Solutions Pte Ltd*

Andritz Singapore Pte Ltd*

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Leading Oils & Fats technologies 4/29/15 6:08 PM

Refining

Singapore

T-1 Ada SZR

Serbia

Schutter Group

(Benelux) B.V.

MAHLE Industrial Filtration

Geelen Counterflow*

Dinnissen BV

CPM Europe BV

Netherlands

Muar Ban Lee Group Berhad*

OILTEK Sdn Berhad

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Hydrogenation

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JJ-Lurgi Engineering Sdn Bhd

INTEC Energy Systems Sdn Bhd

Farri (M) Sdn Bhd

Graceland Industries Sdn Bhd

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PROCESS PLANT & EQUIPMENT

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PREPARATION Cleaning • Cracking • Dehulling Conditioning • Flaking • Expanding

PRESSING Full Pressing • Prepressing

EXTRACTION Extractors • Desolventing Toasting Distillation • Solvent Recovery

End user processes/equipment

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REFINING Degumming • Neutralising • Bleaching Winterising • Deodorising

FAT MODIFICATION Fractionation • Hydrogenation • Interesterification

OLEOCHEMICALS

Storage & handling

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Alfa Laval Malaysia Sdn Bhd

Methylesters • Glycerine • Biodiesel Fatty Acids • Fatty Alcohols

ANCILLARY EQUIPMENT

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Malaysia

Servizi Industriali s.r.l.

Mazzoni LB Spa

C.M. Bernardini International SpA

Andreotti Impianti SpA

Italy

Best Industry Group

Screens & filtration

Other equipment

Hydrogenation

Screens & filtration Other equipment

ANCILLARY EQUIPMENT

Storage & handling

End user processes/equipment

PROCESS PLANT & EQUIPMENT

Refining

Extraction

Indonesia

Plant & technology chart 2015: Summary table of company activities

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Science behind Technology

4/30/15 10:34 AM 15/06/2015 09:32

MARGARIN E & SPREAD S

MARGARINE IS TYPICALLY USED IN HOUSEHOLDS FOR BAKING, FRYING AND SPREADING ON BREAD

Blends with benefits The removal of trans fats and the reduction of saturated fats are becoming common in margarine products, but this is resulting in a reduction in texture and stability requiring the addition of functional ingredients in order to obtain optimal margarine quality. DuPont Nutrition & Health explains

here is a trend in the marketplace, not only to avoid trans fatty acids, but also to decrease the amounts of saturated fatty acids in various margarine products. When trans and saturated fats are reduced from fat blends, they are mostly replaced with liquid oils, which do not contribute to the structural integrity of the emulsion or food matrix. This often results in loss of texture and oiling-out issues, so other structural aids must be added if the texture and stability of the crystal matrix should remain unchanged. However, a holistic view needs to be taken in order to produce high quality margarine products that are low in trans and saturated fats, with similar functionality as traditional products high in trans or saturated fats. Good product quality can be defined as those products that comply with expectations in respect to appearance, functionality and performance. For fat products, it is also crucial to: t Choose optimal oils, fats and functional ingredients for the fat blend related to the functionality of the particular end product; t Select appropriate processing equipment and respective processing parameters, as well as secure proper storage and logistic environments in order to achieve good quality products. Margarine is the traditional alternative to butter, but the product line has broadened over the years. Margarine and spreads used domestically cover, among others, bakery margarine, table

margarine and low fat spreads which typically are used in households for baking, frying and spreading on bread. This article focuses only on the industrial segment, which mostly covers baking applications including the production of puff pastries, cakes and decoration creams.

What is margarine? Margarine is typically a water in oil (w/o) emulsion. An emulsion is thermodynamically unstable due to the missing attraction of the molecules in the two liquids, resulting in an energy imbalance of the system. The emulsion droplets (the dispersed phase) â&#x20AC;&#x201C; which in the case of margarine are water droplets â&#x20AC;&#x201C; will collide frequently due to the instability of the system and a stabilising force is required at the interface of the two liquids (the water and the oil phase), for example an emulsifier. Emulsifiers are surface active components which decrease the interfacial surface tension between the oil and the water. Emulsifiers facilitate the formation of the emulsion and increase the stability of the system during emulsion formation and during the crystallisation or manufacturing process. Lipid emulsifiers such as monoglycerides contain a hydrophilic part and a hydrophobic (lipophilic) part. The hydrophobic part that repels water may consist of a fatty acid. The hydrofilic part that attracts water may consist of glycerol, esterified with an acid such as fatty acid, acetic acid, lactic acid, tartaric acid or citric acid. Depending on the type of acid esterified to the glycerol part of the molecule the emulsifier will have specific functionality. Apart from the importance of the right choice of emulsifiers for a specific fat product, the actual composition of the fat blend of margarine and other fat products depends on the application, v

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functionality and temperature of usage. The fat blend is characterised by the solid fat content (SFC) measured at specific temperatures, which describes the ratio between the solid fat and the liquid oil in the fat phase. Naturally, the saturation of the fat phase has an impact on the SFC profile, and generally speaking, the higher the saturation the higher SFC value at specific temperatures.

Alternate blends for alternate uses Figure 1 (below) shows suggested blends for laminating margarine products like puff pastry margarine, Danish pastry and croissant, as well as the corresponding SFC profiles. The main demands for laminating margarines are plasticity, stretchability and firmness since these types of products are used to produce flaky baked products. The laminating margarine acts as a barrier between the dough layers and the procedure involves several folding and rolling sequences where the margarine is stretched and reduced in thickness. To function as a barrier, the margarine must remain as a continuous film throughout the rolling process. It should be plastic, since soft and greasy margarines tend to be absorbed by the dough layers, and hard and brittle margarines are difficult to spread between the dough layers. In both cases the baking performance will be affected negatively, thus the final baked product will not be flaky. In order to produce a plastic margarine, a relatively flat SFC profile is recommended. The amounts of solid at a given temperature will

‘The actual composition of the fat blend of margarine depends on the applications, functionality and temperature of usage’ depend on the amount of layers required in the final bakery product and thus mechanical treatment during the rolling and folding procedure. It can be noted that puff pastry margarine exhibits the highest SFC values compared to Danish pastry and croissant margarine, since the baked puff pastry has the highest number of alternative

FIGURE 1: SUGGESTED BLENDS FOR LAMINATING MARGARINE PRODUCTS Puff pastry

Danish pastry

Croissant

Palm stearin Interesterified fat Palm oil Liquid oil

50% 5% 28% 17%

32% 2% 48% 18%

30% 4% 44% 22%

SFC @ 10C 20C 30C 40C

54% 38% 21% 10%

48% 31% 16% 7%

46% 29% 14% 6%

FIGURE 2: BLEND EXAMPLES FOR BLOCK AND LIQUID CAKE MARGARINES Margarine

Block cake margarine

Liquid cake margarine

8% 17% 42% 33%

6% 4% 90%

Palm stearin Interesterified fat Palm oil Liquid oil

FIGURE 3: FAT CONTENT OF BLOCK AND LIQUID CAKE MARGARINES Pr. 100g of fat

Saturates Monounsaturates Polyunsaturates

Block cake margarine

Liquid cake margarine

Fat content of liquid margarine versus block

46.25% 40.00% 13.75%

18.75% 55.00% 26.25%

100%

- 60% +37.5% +91.0%

margarine and dough layers. The trend in the market to decrease the level of saturated fatty acids also covers the laminating margarines. There are two clear paths to use. One is to reduce the fat content overall by using a reduced fat margarine, a strategy that results in a saturated fat reduction of around 10%. This is typically a way to decrease the level of saturates for laminating margarine. Another path is to decrease the content of the saturated fat in the margarine without compromising the specific functionality of the margarine. This is not recommended in respect to laminating fats as a softer SFC profile jeopardises the performance of the margarine as previously mentioned. However, this is not the case for cake margarines. An example of blends for standard block cake margarine and liquid cake margarine is shown in Figure 2 (below). Due to the higher level of liquid oil it is clear that the SFC profile for the liquid cake margarine must be significantly lower when compared to the block cake margarine. Compared to the standard block margarine, the liquid alternative contains 60% less saturates and a considerably higher content of monoand polyunsaturated fatty acids. Although the total fat remains the same, the higher amount of unsaturated fatty acids in the product is associated with a healthier profile (see Figure 3 below). Despite the high level of liquid oil in the liquid margarine, test baking shows excellent ingredient distribution in the cake batter. In the finished cake, no difference in volume is found when using the liquid alternative compared to the standard block margarine and, furthermore, the liquid margarine has a positive impact on the sensory quality including an improvement in crumb softness and texture. The liquid margarine is processed in a standard margarine line. Due to the liquid state of the product, relatively limited crystallisation is taking place during processing and the emulsifier acts as a structurant by stabilising not only the crystal network of the oil phase, but also the emulsion of the finished liquid margarine. During processing, the emulsion is cooled and crystallised under mechanical treatment prior to the finishing maturing step in a holding tank, where the margarine is held for up to 16 hours under slow agitation. The agitation time is typically two to 16 hours and directly related to the level of hard stock – a low amount of hard stock results in low agitation time. The liquid margarine structure remains pumpable over time for easy handling on industrial cake production lines.

Equipment and processing When producing fat products low in saturates with similar functionality and performance as traditional products, a combination of the correct choice and dosage of oils, fats and functional ingredients like emulsifiers; suitable processing equipment; appropriate processing parameters; and proper storage and logistic environment are key in obtaining processing security and high w quality products. This article has been written by Kaustuv Bhattacharya, Pernille Gerstenberg Kirkeby and Brian Sehested, senior oils and fats application specialists at DuPont Nutrition & Health

24 OFI – JUNE 2015 www.oilsandfatsinternational.com

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utter, once spurned as a source of unhealthy saturated fat or an inaccessible luxury good, has been making a slow but steady comeback. Global butter production reached just over 10M tonnes in 2013 according to data from the Canadian Dairy Information Centre, up from 7.6M tonnes in 2005. One country in particular has driven this growth: India. The world’s largest producer of milk, as well as the world’s largest butter factory, India produced 4.8M tonnes of butter in 2014, most of which was destined for domestic consumption, according to the United States’ Department of Agriculture (USDA)’s dairy Annual on India report. It says India has almost doubled its butter production in just 10 years. Distinguished Professor Harjinder Singh from the Riddet Institute, a food science research centre at New Zealand’s Massey University, says that while India’s increased butter production could in part be attributed to a growth in population, it is mostly due to increasing affordability. “There are more and more people moving into the middle classes now [in India] and they have more economic possibility than previously,” he says. Ghee [clarified butter] is the predominant form of butter used in cooking in India and is also used in religious ceremonies. USDA researchers note that changing incomes and lifestyles are also affecting dairy consumption patterns in India. “More women are pursuing careers, especially those living in urban areas. With less time to cook meals at home, more families are buying ready-made dairy products like table butter, yoghurt, paneer and ethnic dairy desserts,” says the USDA report. Projections for India’s future butter needs suggest that domestic production could fall short of satisfying demand, despite an ambitious plan by the government, partly financed by the World Bank – The National Dairy Support Project – to improve productivity and efficiency in the dairy sector. USDA predicts that Indian production of butter and ghee will rise 3% to 5M tonnes in 2015 on the back of strong domestic

The butter half

Butter is bouncing back following a lengthy period of rejection and, in recent years, both production and consumption have increased globally. Lee Adendorff reports on where the greatest increases are being seen and what is driving the change demand; indeed consumption is likely to surpass 5M tonnes this year. The Indian industry is characterised by successful dairy cooperatives owned by millions of small-scale rural producers, such as the Gujarat Cooperative Milk Marketing Federation Ltd, that oversees distribution of the Amul and Sagar dairy brands. The company turned over US$3bn in the last financial year but these cooperatives may struggle to meet future demand, with projections that dairy production will have to increase by 5.5% annually to satisfy demand in 2021-22, according to an Indian government forecast.

Satisfying Indian demand This could mean good news for other butterproducing nations if India’s current restrictive import regulations and tariff regime are relaxed. New Zealand’s giant dairy cooperative, Fonterra Co-Operative Group, is eagerly pursuing better access to the Indian market, announcing in 2013 plans to open an office in New Delhi (it is

not yet operational) and actively lobbying the government for more favourable market access. New Zealand dairy farmers are not subsidised by the government, and focus on low-cost, high productivity farming systems. Processing facilities are mostly co-operatively-owned by farmers, with the largest being Fonterra, Westland Milk Products and Tatua Co-operative Dairy Company Ltd. Professor Singh says that scientific cooperation between New Zealand and India in the dairy sector is thriving. “There are interests on both sides and a very cooperative approach,” he explains. The Riddet Institute signed a ‘memorandum of understanding’ with India’s National Dairy Research Institute last year and they are currently working together to develop probiotics in milk, with research co-funded by the governments of India and New Zealand. Other major butter producing regions globally include the European Union (EU), which produced 2.1M tonnes of butter, but exported only around 102,000 tonnes outside the EU in 2013, according to EU statistical agency Eurostat. The United States and New Zealand produced 844,824 tonnes and 509,000 tonnes in the same year respectively, with Russia making 222,000 tonnes and Australia

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118,228 tonnes, according to the Food & Agriculture Organization (FAO) of the United Nations. New Zealand, while producing around a third of the EU’s total butter production, is the world’s largest exporter of butter, exporting 556,000 tonnes out of a production total of 570,000 tonnes in 2014, according to USDA figures.

Changing consumption trends Butter consumption in the developed world is also undergoing significant changes. Interestingly, this demand appears as motivated by health concerns as by economic convenience. The American Butter Institute (ABI) reported last year that US butter consumption in 2013 had reached its highest level in 40 years. The institute’s executive director, Anuja Miner, says that the increase was in part due to shifting consumer preference towards more natural ingredients and away from the negative image of trans fats associated with vegetable oils, that are being targeted by the US Food & Drug Administration (FDA) as a cause of coronary heart disease. Americans have increased their butter intake by 25% since 2002, and now consume 5.6 pounds (around 2.5kg)/year, up from 4.1 pounds (1.9kg) in 1997, according to the ABI. Meanwhile, Dr Stefanie Oude Elferink, senior scientist, nutritional sciences, at the FrieslandCampina corporation’s innovation department says there is a similar, although scattered, trend in Europe. “Europe butter consumption differs very much between the different countries – but, for example, in the Netherlands (a country with more margarine than butter consumption), we are also seeing a decline in margarine sales and an increase in butter sales, although not as drastic as in the USA,” she says. Figures from the Canadian Dairy Information Centre show that butter consumption in developed markets has remained generally stable over the last six years but, in some cases, has increased significantly. Consumption per capita rose to 7.9kg/head in France in 2013 for example, up from 7.4kg/head in 2008. New Zealand consumption rose a significant 1.2kg in the same period, from 3.7kg/head in 2008 to 4.9kg/head in 2013. In Australia, where both consumption and production has remained relatively static, there has still been a move away from margarine towards dairy spreads. The latest ‘Australian Dairy Industry in Focus 2014’ report by Dairy Australia notes that: “consumer concerns about margarine consumption have meant a continuing decline in share, with dairy spreads taking further retail market share from margarine. This has been a continuing trend over the last decade, as dairy spreads’ share of the category has steadily increased from 30% in 2000/01 to approach 45% in recent years.” However, it will be developing markets in Asia and demand in China that will probably contribute the most to an increase in butter demand over the next decade, according to the Organisation for Economic Co-operation & Development (OECD)FAO Agricultural Outlook 2014-2023. It forecasts a 0.7% rise in global butter trade to 2023 to meet this demand. Increased supply from the world’s largest butter exporters, namely New Zealand (that has a 47% share of the international market), Australia, the EU and the USA, will meet this growth, according to the report. Russia, followed by Egypt and Saudi Arabia, are expected to remain the

IT IS PREDICTED THAT INDIAN PRODUCTION OF BUTTER AND GHEE OR CLARIFIED BUTTER (PICTURED) WILL RISE 3% TO 5M TONNES IN 2015 DUE TO STRONG DOMESTIC DEMAND (PHOTO: ZKRUGER / DREAMSTIME.COM)

world’s largest butter importers to 2023, according to the OECD-FAO projections, although the effects of Russia’s ban imposed in August last year on EU and Australian dairy products in the wake of the Ukraine crisis were not included in these estimates. The USDA, however, forecasts the Russian ban should have a lesser effect on butter than other dairy products, expecting EU butter exports in 2015 will grow by 11% to reach 150,000 tonnes. An EU Private Storage Aid (PSA) support scheme, opened by the European Commission, has provided a buffer to the Russian ban for EU butter producers, notes the USDA report, and PSA butter stocks had reached around 21,000 tonnes by November last year.

Trade and free-trade agreements Looking ahead, the end of EU milk production quotas on 1 April this year is expected to boost dairy production within Europe, although it remains to be seen how this will affect the global milk market. Butter-producing countries such as New Zealand and Australia are counting on free trade agreements to buffer any negative effects, although the TransPacific Partnership (TPP) trade deal, currently under negotiation, appears to be far from reaching a consensus on what form this will take. Dairy industry associations from Australia, New Zealand and the USA have criticised the relative inflexibility of TPP partner nations Japan and Canada in terms of trade access for their dairy, going so far as to write an open letter to the agriculture and trade officials of their respective countries in March this year. The Australian dairy industry has shown overwhelming support, on the other hand, for the Australia-China free trade agreement (FTA) – negotiations for which were completed in November last year – that will eliminate mainland Chinese tariffs for Australian butter by 2019. Although the agreement has yet to be ratified, the Australian Dairy Industry Council’s chair Noel Campbell says

that in the long-term, the agreement will allow the Australian dairy industry to capitalise upon robust demand in the Chinese market. “The FTA will strengthen Australian dairy’s competitiveness by providing our industry with a significant advantage compared to other countries in the market that do not have a FTA with China,” Campbell says. “It also puts the industry on a more level playing field against key competitors in the Chinese market, such as New Zealand,” he adds. Meanwhile, Australia is actively courting the interest of more foreign multinationals in its dairy industries. An AU$3bn (US$2.3bn) agricultural (including dairy) projects fund called the Beijing Australia Agricultural Resource Cooperative Development Fund was established last year, as a joint initiative of the state-owned Beijing Agricultural Investment Fund and Shenzhen-based Yuhu Agriculture Investment Group. The fund was launched at the inaugural Dairy Farm Investment Forum, hosted by Dairy Australia in Melbourne last September, with attendees including the Hangzhou Wahaha Group, CK Life Sciences, Ningbo Dairy Group, Greenland Investment Holdings and the China Development Bank. Multinationals have been active for many years in the Australian dairy sector, including Fonterra, Japan-based Kirin Holdings Co Ltd and the Francebased Lactalis Group. Hong Kong investor William Hui purchased the Victorian-based milk broking and cheese manufacturing company United Dairy Power – a significant butter producer – in 2014 (although Hui’s parent firm subsequently went into receivership). One of Australia’s oldest dairy processors, the Warrnambool Cheese & Butter Factory Company Holdings Limited, is now controlled by major Canadian dairy company Saputo Inc that mounted a successful and high profile takeover in 2014, outbidding local rivals Bega Cheese Limited and Devondale Murray w Goulburn. Lee Adendorff is a freelance journalist based in Australia

27 OFI – JUNE 2015 www.oilsandfatsinternational.com

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COM M OD ITY TRADIN G

A balancing act The declining price of crude oil paired with Asian palm diesel mandates, will be crucial factors in the oils and fats market this year. Dorab Mistry provides an outlook for 2015

ast year was a great year for consumers of commodities and a bad year for edible oil producers. The start of 2014 saw the peculiar phenomenon of vegetable oil prices trading below the price of mineral oil, for only the third time in 11 years. However, from around the time of the November meeting of OPEC, the price of crude mineral oil declined dramatically and then stabilised. Furthermore the Indonesian government had imposed a 10% palm diesel mandate in 2014. The world’s supply and demand (S&D) looked tight given that an El Niño was also forecast. Brent crude oil had fallen to less than US$50 a barrel. There was also a standstill of new palm biodiesel purchases in Indonesia, the world’s largest producer of palm oil. Discretionary blending demand for palm or soya biodiesel had fallen dramatically to zero. In more recent months, the Indonesian government made new announcements, most importantly a subsidy to promote and make viable the consumption of palm biodiesel within Indonesia. Unfortunately this was followed with backtracking and some doubt as to how much would be subsidised, of which there is still no clarity. It is no help that Indonesia has a tendency to both over promise and underperform. Therefore Indonesia is predicted to consume between 1.5-2M tonnes of palm biodiesel in 2015, somewhat more than in 2014.

Palm oil production Price outlooks for 2015 will depend on both the price of Brent crude, as well as the resilience

Key markets India

ndia’s new government has yet to make an impact on agriculture; understandable as it takes two to three years for policies to take effect. The new government appears to be favourably disposed towards improvement in seed culture and even in adoption of GM seeds. Furthermore the government has aroused high expectations and unleashed a feeling of positivity – the results of which will be better than normal consumption growth for vegetable oils and increased imports (see Table 1, opposite page). Production outlook is familiarly depressing

or otherwise of demand. The market has vastly overlooked the factor of production of edible oils. Most analysts have forecast high production for 2015 in Malaysia as well as Indonesia. While output in Malaysia, the biggest grower after Indonesia, was expected to decline until June, a recovery in the second half will boost stockpiles and pressure prices. The production problem in the first half of the year is based on the theory of the biological cycle of palm oil. There is always a production problem when the biological low cycle and the season low cycle coincide; we entered a new biological low cycle in November 2014 (which will last until at least July 2015), and the seasonal low cycle is from December until March. In the three months between November 2014 and January 2015, 765,000 tonnes of crude palm oil (CPO) production were lost, compared to the previous year. Weathermen have forecast a mild El Niño weather phenomenon for 2015 and some signals of its arrival are already apparent. In 2014, Malaysia produced approximately 19.7M tonnes of palm oil. Malaysian production in 2015 is forecast to be equal to 2014. Indonesia produced 30M tonnes in 2014 and is expected to produce 31.5M tonnes in 2015. Thus, world palm oil production for 201415 will rise by less than 2M tonnes. However world production in 2015-16 (October to September) is likely to rise strongly, by as much as 3-4M tonnes. The biggest impact is likely to be felt in Malaysian and Indonesian stock in June and July this year. At the end of January, stocks reported by the Malaysian Palm Oil Board (MPOB) had fallen to 1.77M tonnes. This is expected to keep falling month after month and hit the ‘tight zone’ of less than 1.5M tonnes. in India though; monsoon rains caused problems in 2014 and oilseed production will subsequently lag behind. However, the new government showed concern for oilseed farmers and raised the import duty on unrefined oil and also increased the spread between refined and unrefined oils. This movement has now run its course and no further changes are expected in Indian import duties in 2015. Palm oil has lost some market share to soya oil as a result of the narrowing spread between the two oils. That development has resulted from poor demand for soya oil and the tightening outlook for palm oil. It would be no surprise if in June this year, RBD olein trades at a spot premium to crude degummed soya oil on a FOB basis.

Stocks are expected to go much lower and that should make strong inverses a feature of price outlooks this year. Indonesian stocks are expected to bottom out at around 2.5M tonnes in July and then climb steadily to reach 4.65M tonnes by December.

Export taxes It has been reported that Indonesia and Malaysia are making moves to lower the threshold for export taxes. This measure is being encouraged in order to help local refineries that are on negative refining margins. It will also create revenue for the governments which will enable them to subsidise palm biodiesel consumption. Export taxes will raise world prices partially. Some portion of the export tax will fall on the domestic plantation and the smallholder. However, if these export taxes are recycled by way of subsidy for consumption of palm biodiesel, they will result in higher absolute prices. Palm oil is the world’s dominant

China

n November, China carried forward its huge stock of almost 5M tonnes of rapeseed oil. In a year of low prices, the Chinese government is likely to take the line of least resistance, which is to sweep the problem under the carpet. China continues to exceed expectations on import of soyabeans and other oilseeds. The result of this can be seen in the absence of China from the soya oil market for periods of time. The absence of the financial buyer from this market is also responsible for lower import of vegetable oils by China. However, at some stage local stocks and pipelines will need to be replenished because stocks are very low.

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COM M OD ITY TRADIN G

Oilseeds and other major oils DO OV/ ADK IN R IVEL TO: PHO LUB TOC PHO LLAR

oil because of its prodigious productivity and low price; export taxes simply hinder palm oil demand, possibly inviting retaliation from importing countries.

t Soya: The world has been blessed with three big harvests – 2014 South America, 2014 USA and now 2015 South America. As a result the market is seeing a soft trend in soyabean oil prices. The situation on soyabean oil demand would have been much worse but for the enhanced biodiesel mandate in Brazil. Clearly soyabean oil is most under pressure this year. The world’s quintessential “swing consumer” – India – is increasing its imports of soyabean oil precisely for this reason. Soyabean prices have declined over the past year. Despite big crops, further price declines have been averted primarily due to restrained farmer selling and buoyant demand from China. t Rapeseed: The production and crushing of rapeseed in 2014-15 will be almost the same as in the previous year. However, it remains to be seen how much EU rapeseed oil will find its way into biodiesel this year. t Sunflowerseed: Production of sunflowerseed in almost all parts of the world is lower than in the previous year and that is why sunflower oil rules at a significant premium to soyabean oil. As a result, India will import less sunflower oil and more soyabean oil this year. Prices of sunflower oil would have been higher but for the extreme weakness of currencies in Ukraine and Russia. In 2015, attention needs to be paid to further chances of disruption and lack of working capital in Ukraine and parts of Russia. t Groundnut and cottonseed: Production of cottonseed oil will be slightly lower but groundnut

oil will be considerably lower on account of India. t Lauric oils: Supply of coconut oil should finally recover this year. The production of palm kernel oil will only expand in line with the production of palm oil. Lauric oils find their way into oleochemicals and these face intense price pressure from lower petrochemical prices.

Demand factors World food demand is expected to grow by a robust 4M tonnes mainly as a result of lower prices. Discretionary demand for biodiesel has collapsed and Indonesia may, at best, consume half a million tonnes more in this year. The saviour of demand is Brazil. In Europe, International Sustainability and Carbon Certification (ISCC) certified palm oil will gain market share from soft oils in electricity generation. This is because it gives higher savings in greenhouse gas emissions. Overall, world biodiesel demand is expected to shrink by about 500,000 tonnes. Hence total demand will expand by about 3.5M tonnes. Incremental supply and demand in the current year are broadly in balance. However, this is going to be a year of two halves, with demand outstripping supply in the first six months and gradually supply will increase in the second half of the year. Producers will then face challenges and will need to w focus on cost control and innovation. This article is based on the presentation delivered by Dorab Mistry, Director of Godrej International Limited, at the Price Outlook Conference (POC) in Kuala Lumpur, Malaysia, in March 2015

29 OFI – JUNE 2015 www.oilsandfatsinternational.com

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DEEP FAT FRYIN G

THE EDIBLE OIL USED TO FRY FOOD PLAYS AN IMPORTANT ROLE WHEN PRODUCING HIGH QUALITY FRIED PRODUCTS

Deep fat frying: science or art?

Fried food is popular in nearly all cultures across the world due to its quick cooking speed and the taste of the final product. Although it appears simple, deep fat frying is a complex process and many factors need to be taken into account to protect flavour and ensure health concerns are addressed as far as possible. Christian Gertz, Bertrand Matthäus and Richard Stier write

eep fat frying is one of the most popular food preparation techniques in today’s world. Even though there are health issues, it remains a large and expanding industry. Fried products are enjoyed by consumers of all ages and in virtually all cultures because they are quick and easy to prepare and taste and smell good. Additionally, since frying is done at such high temperatures, fried foods are generally microbiologically safe and, depending on the type of product being manufactured, can be stored at ambient temperatures. This allows industrial processors to easily package fried foods whether they are snacks or coated products for storage and retail distribution. Although the process itself appears relatively simple, deep fat frying is a dynamic process with many pitfalls that must be taken into consideration in order to produce high-quality tasty products that are attractive to consumers.

Frying oils The frying medium, edible oil, is a very important part of the equation when it comes to producing high quality fried foods. Not only is the food fried in the oil but it is also taken up by the food, becoming a significant part of the end product. In recent years the selection of suitable frying oils has changed due to health concerns, decreased availability of vegetable oils suitable for frying and the placing of regulatory limitations on trans-fatty acid content in frying oils and fried food in Canada, the USA and some European countries. The end result is that many producers are looking for trans-free alternatives that have the high heat stability of trans-fats. In addition, frying oils should be free of synthetic antioxidants or other additives such as dimethylpolysiloxane (E900, antifoam) and should not be manufactured from sources that are genetically modified (GM). Finally, oils used for deep fat frying must be free from food allergens. Since most oils used for industrial and restaurant frying are refined, bleached and deodorised, the oils will not contain allergens or GM organisms. Today, there are several alternative oils with healthier fatty acid profile and no trans-fatty acids available to food processors and restaurant operators that have good oxidative and heat stability. Examples are oils from rapeseed or sunflower with modified fatty acid composition showing a high content of oleic acid and reduced amounts of polyunsaturated fatty acids such as linoleic or linolenic acid.

Minimising degradation The heating of edible oils and fats results in both thermal and oxidative degradation of the frying oil. Fried foods such as potato chips have up to 40% oil that is absorbed during frying. Thus, it is extremely important to minimise the degree of oil degradation during frying to ensure the quality of fried foods. The composition of the fat in fried products has nearly the same composition as that of the used frying fat. Therefore, the quality of the frying oil will strongly affect the flavour, aroma, appearance, storage stability and content of potentially harmful degradation products in the fried product. The minimisation of degradation during deep fat frying is a real challenge for the fryer operator with respect to the minimisation health risks. During frying, a constant formation of polar components from triacylglycerols can be observed. About 50% of the polar fraction (= total polar compounds) is oxidised monomeric triacylglycerols. These compounds are absorbed in the human stomach and intestinal tract due to their more hydrophilic property. Oxidised products may react with amino acid like lysine following the Maillard reaction. These advanced lipoxidation end products (ALE) and advanced glycation end products (AGE) have been shown to play an important role in the development and progression of different oxidativebased diseases including cardiovascular disease, diabetes and neurological disorders. Also the formation of heat-induced contaminants such as 3-MCPD-esters in fried fish products, heterocyclic aromatic amines in meat as well as acrylamide in French fries has to be taken into consideration. Therefore, it is important to optimise the frying process in order to minimise the potential for oil degradation and the formation of heat-induced v

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DEEP FAT FRYIN G

contaminants. This includes utilising temperature control and managing oil quality through the use of treatments, good frying processes and proper training of restaurant and food plant workers. To understand oil degradation and the development of mitigation strategies, it is necessary to understand the mechanisms of thermal-oxidative degradation during processing and storage. Proper processing and stability of vegetable oils are the critical factors for quality during frying. Oxidation is the predominant mechanism of degradation below 140°C due to better solubility of oxygen in oil. At higher temperatures (>140°C), other mechanisms of degradation take place. Many phenomena such as the ineffectiveness of some antioxidants under frying conditions cannot be explained only by autoxidation. New mechanisms have to be discussed which might help to develop heat-stabilising agents based on natural sources and their role in optimising the frying processing. It is especially important for industrial food producers to understand the different thermo-oxidative changes occurring in frying operations. The formation of undesirable oxidation products has to be avoided since it may result in the formation of off-flavours and can reduce shelf life, even in frozen foods. To properly evaluate what happens in the deepfat frying process and the suitability of vegetable oils or stabilising ingredients and additives used in deep fat frying, a systems approach to the process including detailed chemical analyses of the changing frying oil is essential. Utilising a single test, such as Rancimat, is not recommended since simply not enough information is provided.

Oil uptake and heat transfer Studies show that, in general, only 20% of the total fat of a product being fried is absorbed during the frying process. The major part (80%) is taken up while food cools down. In this phase, a vacuum is formed in the capillaries of the crust that will suck the oil from the surface into the interior of the food. Therefore, it is important to understand the frying process and the impact of deep fat frying on the product. Finished product quality is a function

of the frying process and the quality of the oil. Degraded oils contain higher levels of surfactant materials, which adversely affect heat transfer and ultimately the quality of the product. The first seconds of the frying process are crucial for the development of flavour and textural characteristics of the fried food. These characteristics include crust formation and oil pickup during the later cooling phase. The structural characteristics (porosity) directly affect the heatmass transfer between oil and food. Heat energy is transferred from the oil to the food, while moisture is released from the food to the oil. Excessive temperatures may cause a non-uniform crust with less, but larger pores, so that moisture is released in a rapid and uncontrolled way. If moisture release decreases too fast, the temperature in the boundary zone increases resulting in an increased rate of acrylamide formation. For instance, moderate temperatures at the beginning of deep fat frying encourage the development of a more structured crust through controlled heat-mass-transfer.

Analytics and quality assurance Polar compounds and polymeric triacylglycerols are the most reliable chemical indicators for the assessment of used frying oils and fats. Other analytical criteria such as content of free fatty acids or anisidine value are not representative and the changes depend strongly on the type of oil. These analyses do, however, add to the overall understanding of the frying process. A more detailed analysis of the level of polar compounds, polymerised triacylglycerols, monomeric oxidised triacylglycerols and colour index helps to detect the critical points during the production of fried foods. In this context, Near Infrared Spectroscopy (NIR) is a valuable tool as this system rapidly provides all this information within a few seconds. Validated standard methods are available today. In fast food restaurants where the products are prepared for direct consumption, it is possible to monitor oil degradation by measurement of the dielectric constant which is related to the degree of degradation. Results are expressed using a value that roughly corresponds to the amount of polar material present in the frying oil. It is necessary to validate these quick tests with other validated standard methods. Be aware, however, that it is very difficult to implement and maintain a monitoring programme such as this in the restaurant environment.

Building the bottom line

POTATO CHIPS HAVE UP TO 40% OIL THAT IS ABSORBED DURING FRYING (PHOTO: PAULISTA/DOLLARPHOTOCLUB.COM)

Today, food processors and restaurant operators working in the area of fried food and suppliers to these industries – which includes oil producers, food and ingredient suppliers, equipment manufacturers and the service trade – must understand that the foods they manufacture or serve must not only be safe and wholesome, but also tasty and palatable, in order to remain in business. The pressure on the industry is great and the competition is tough, but understanding the science and technology of frying as well as the markets and demands is essential and helps to build the bottom line.  Dr Christian Gertz is the co-founder of Maxfry GmbH, Germany; Dr Bertrand Matthäus is a food chemist and scientist at the Max Rubner-Institute, Germany; and Dr Richard Stier is a consultiing food scientist based in the USA

Congress gives new information on deep fat frying T

he 8th International Symposium on Deep Fat Frying will be held on 15-17 September 2015 in Munich, Germany. “The aim of the symposium is to provide participants with new information on frying and discuss the latest findings in order to make the market of fried products fit for the future,” says the organiser of the event, the European Federation for the Science and Technology of Lipids (Euro Fed Lipid). “Although the process of deep fat frying has been known for nearly 4,000 years, the complex process taking place at the surface of the food – and also in the oil – is still not understood comprehensively. “Since a remarkable part of oil is taken up by food, the focus of interest also has to be on aspects important for maintaining the oil quality.” “In this context, new mechanisms taking place during the frying process have to be discussed. This may help to develop heat stabilising agents based on natural sources and to optimise the frying process.” The symposium is aimed at food producers, official and commercial laboratories and those involved in producing fried food, researching the frying process, assessing used frying oils or interested in deep fat frying in general. The programme will cover all aspects necessary for a better understanding of the frying process and features six sessions:      

Theory of Frying Contaminants and Degradation Products Quality and Analytics Stabilisation Modelling of the Frying Process Industrial Frying

The symposium will take place in the MOC Veranstaltungscenter München, parallel to the oils+fats trade fair taking place on the same dates. Euro Fed Lipid has negotiated a joint deep-fat frying exhibition space within the main oils+fats trade fair. This space will host all social/networking events of the symposium. For further information, contact: Euro Fed Lipid, Germany Tel: +49 69 7917 345 Fax +49 69 7917 564 E-mail: info@eurofedlipid.org Website: www.eurofedlipid.org/meetings/ munich2015/index.php

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WITH PARTICIPATION FROM

30 SEPTEMBER - 2 OCTOBER

Join us to celebrate the 10th Anniversary of the Oilseed & Grain Trade Summit! The 10th Annual Summit is the premier destination for learning, networking, and conducting business in the global oilseed and grain industries. Last year over 400 buyers and sellers of oilseed products, feed grains, and food ingredients from 38 U.S. states and nearly 20 countries convened at the Oilseed & Grain Trade Summit, where more than 45 industry experts discussed cutting-edge knowledge and industry trends.

Who Should Attend: • • • • • • • • • •

Oilseed and grain processors, importers, and exporters Manufacturers of food, animal feed, biofuels and bio-based industrial products Commodity merchandisers and buyers Food ingredient buyers Trade financing and risk management professionals Livestock, poultry, and aquaculture producers Ports, freight forwarders, shipping/ocean line companies, transload/container companies, rail Technology, equipment, and service providers Plant operations management Trade groups, government agencies, and academics

Leading Industry Experts Will Share Their Insights on: • Oilseed and Grain Supply and Demand Trends and Outlooks • Outlook for Animal Proteins Sector and Upstream Impacts • Challenges and Opportunities in Transportation Logistics • The Impact of Weather and Climate on Global Agriculture • Trends and Challenges in the Commodity Food Ingredient Market • Innovative Technology for the Ag Value Chain • Emerging Origin and Destination Markets for Commodities • New Developments in Animal Feed Production

To discuss sponsorship opportunities, please contact Ann Parker, Event Director, aparker@highquestpartners.com, +1.810.660.8683

www.oilseedandgrain.com

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SOU TH AM ERIC A

PHOTO: REVOLUCIONALIMENTARIA.WORDPRESS.COM

olombia’s oils and fats sector is seeing industry profits siphoned off by criminal networks thanks to a contraband smuggling boom linked to illegal armed groups, organised crime and money laundering. Contraband smuggling in Colombia has evolved into a sophisticated criminal business worth US$6bn/year, according to the estimates of the Colombian National Tax and Customs Directorate (DIAN – Dirección de Impuestos y Aduanas Nacionales), and has become one of the principal threats facing national industries. “Contraband today is enormously important and relevant for the future of the country, for the future of its businesses and the generation of employment in the years and months to come,” says Juan Camilo Nariño, the vice president of Commerce at the National Association of Business of Colombia (ANDI – Asociación de Industriales de Colombia). “Combating contraband in an open and convincing way is a priority for national security because these networks are linked to money laundering and drug trafficking. It is also a political priority for strengthening national industry and the development of the country.”

Vegetable oils and cheese

IT IS ESTIMATED THAT AROUND A QUARTER OF THE COOKING OIL CONSUMED IN COLOMBIA IS CONTRABAND. IT ENTERS THE COUNTRY THOUGH THE EDUCADORIAN AND VENEZUELAN BORDERS AS WELL AS THROUGH THE COUNTRY’S PORTS

Smuggler’s run Colombia is facing a thriving smuggling trade in oils and fats which is not only difficult to control, due to the clever methods used by smugglers, but is also threatening the country’s economy and legal trade. James Bargent reports

Any type of product that can turn a profit, from motorbikes to meat, floods in through Colombia’s borders, but two products in particular from the oils and fats sector have proven popular with smugglers: cooking oils and cheese. In 2014, Colombia’s tax and customs police (POLFA – Policia Fiscal y Aduanera) seized 70,140 litres of cooking oil. However, this is just a fraction of what makes it onto the market and around a quarter of cooking oil consumed in Colombia is contraband, according to the estimates of palm oil industry guild Fedepalma. The contraband oil is moved across Colombia’s borders with Ecuador to the south and Venezuela to the east, as well as in through the country’s ports. The trade in contraband cheese is more focused on the Venezuelan border and, according to officials from ranchers guild FEDEGAN (Federación Colombiana de Ganaderos), at least 100 tonnes of Venezuelan cheese passes through the sales and distribution hub of Colombia’s Caribbean city Barranquilla every week. Around 60% of this is then moved on into the interior of the country and the rest is sold locally. FEDEGAN has also identified a thriving trade in the southern border region of Arauca, where it reports smuggled cheese is selling at less than US$1/kilo. Although the Venezuelan border remains the hotspot for cheese smuggling, FEDEGAN officials warn of the trade in contraband cheese on the southern border with Ecuador and how, at both borders, the trade is also linked to contraband powdered milk, which is smuggled in daily from both countries and used to make cheese in Colombia. On the Ecuadorian border, the contraband trade is predominantly what the Colombian authorities refer to as ‘technical contraband’ – products that are moved into the country through legal channels but then disappear into the illegal market.

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Smugglers take advantage of the Special Economic Export Zone in the border town of Ipiales, which allows for basic food products to be imported duty free from Ecuador as long as they are for consumption in the region. “That opens up a big gap and people bring in a lot of these foods to this area on the border with Ecuador, then they smuggle them to the rest of the country,” says Angela Orozco Gómez, president of the country’s oils and fats industry association, Asociación de Industrias de Grasas y Aceites Comestibles (Asograsas). “If you look at what legally enters Ipiales and what is declared to come from Ipiales, you will see that the people there have the largest per capita consumption of oils, which is not the case,” she says. On the border with Venezuela though, smugglers favour ‘open contraband’ methods – bringing products into the country through covert routes. Rather than exploiting tax breaks, smuggling is instead fuelled by the economic policies of Colombia’s socialist neighbour. Price controls on basic goods and the black market currency exchange created by the large gap between officially fixed exchange rates and the unofficial rates found on the border have generated huge price differences between the two countries and huge profits for smugglers. The city of Cúcuta is the epicentre of the contraband trade on the Venezuelan border and was the site of close to 80% of seizures of cooking oil along the border in 2014. At the lowest levels, Cúcuta smugglers use a technique police call ‘smurfing’ – crossing the border at legal checkpoints, either on foot or in vehicles, carrying small quantities of goods but making up to 20 trips a day. The method leaves the police near powerless to intervene. “Although it is contraband and logically we have to seize it, you have to take into account the costs of the administrative process,” says the head of the POLFA’s operations in Cúcuta, Lt. Colonel Rodolfo Carrero. “The cost [of making the seizure] is higher than the value of what you’re seizing.” Once in Colombia, these ‘smurfs’ sell on their products to local shops or in the market place, where stores are piled high with everyday products that have been smuggled in, including cooking oils and cheeses. The POLFA periodically raid such sales points, but it is an endless task. “It’s constant,” says Lt. Colonel Carrero. “We carry out these operations against these establishments, we go to the site and confiscate the merchandise and by the next day they are filled with contraband again.” However, while the sheer scale of smurfing is a threat in itself to the local economy it is not the police’s primary concern, as the profits on offer from contraband have also spurred the development of sophisticated smuggling networks. “[Smuggling] is an international criminal business that manages the entire contraband logistical chain; its entry, transport, storage, distribution and sale, and they have all the contacts they need at a national and international level,” says General Gustavo Moreno, POLFA national director. Cooking oils, cheese and powdered milk are among the multitude of products smuggled in bulk and distributed by these networks. Around Cúcuta, these mafias use an estimated 35 clandestine dirt tracks that skirt official border

PHOTO: RCH/DOLLARPHOTOCLUB.COM

Taking advantage of loopholes

SMUGGLERS TAKE ADVANTAGE OF THE SPECIAL ECONOMIC EXPORT ZONE IN THE BORDER TOWN OF IPIALES

‘Cúcuta smugglers use a technique police call ‘smurfing’ – crossing the border at legal checkpoints, carrying small quantities of goods but making up to 20 trips a day’ crossings. They post lookouts, known as ‘flies’, around the exit and entry points to keep watch over police movements. Once the contraband products are in Colombia they are either sold in the border region, or stockpiled then distributed around the country.

Protecting legal trade However, the smuggling of cooking oils through the Venezuelan border appears to be on the decline. Seizures fell by nearly 52% between 2013 and October 2014 and, according to Asograsas, the

presence of unregistered Venezuelan trademarks on sale has also fallen by more than half over the last two years. Orozco believes this is a result of Venezuela’s economic crisis, which has caused a shortage of basic goods in the country. The decline could also be linked to a wider drop in smuggling on the Venezuelan border, which the POLFA attributes to renewed efforts to tackle smuggling by both the Colombian and Venezuelan authorities and the decision by the Venezuelan government to temporarily shut the border at night. The booming trade in contraband products such as cooking oils and cheese also intersects with the interests of Colombia’s guerrilla rebels and the criminalised remains of the country’s paramilitary counter-insurgency movement. Much of both the Venezuelan and Ecuadorian border is territory under the influence of Marxist guerrillas and the neo-paramilitary groups, which charge any contraband smuggler a ‘tax’ to move their products. In return they offer secure routes and intelligence on the movements of the security forces. The trade has also become one of Colombian criminals’ favoured methods of laundering profits from the drug trade and other illegal activities. According to Moreno, criminals have turned to the contraband trade due to measures taken to tighten up monitoring of the financial system. “This has made it more difficult to make their illegal profits invisible in the Colombian financial markets, which pushed them towards bringing their money in the form of merchandise that can be easily distributed once it is in Colombia,” he says. The growing involvement of major players in the Colombian underworld as well as the threat to Colombia’s economy has seen both the authorities and the oils and fats sector step up their attempts to combat the trade. In October 2014, the Ministry of Commerce, Industry and Tourism joined forces with industry bodies to launch a public awareness campaign against contraband oils, as well as adulterated oils (used oil repackaged and resold after chemicals are added to change the colour) and oils produced by illegal refineries seeking to avoid taxes. The campaign targets consumers and shop owners, encouraging them not to buy or sell oils from unknown or illegal suppliers or oils in reused packaging, or without labels. Over the past two years, efforts to tackle the contraband trade have also been boosted by measures to reform and reinforce POLFA, boosting its operational capacity and trying to weed out the corruption that has in the past undermined efforts. Moreno is now calling for an integrated approach that not only tackles contraband smuggling by targeting the criminal elements behind the running of it but also the business networks that facilitate the trade. “It is clearly an economic issue and we are taking aim at the economic part,” he says. Nevertheless, if the oils and fats sector and other industries are to be protected from the insidious impact of smuggling, more must be done, say industry representatives. “We still think it is not enough,” says Orozco. “It is very hard to be a legal actor in Colombia, the government closely supervises your every action, while these illegal actors are in the market and no one takes a look at w them because they aren’t even registered.” James Bargent is a freelance writer based in Colombia

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STATISTIC S

PALM OIL PRODUCTION, EXPORTS, STOCKS (US$/TONNE) STATISTICAL NEWS FROM MINTEC Palm oil production Forecasts for global palm oil production in 2015/16 have increased 6% year-on-year to a record 65.2M tonnes, 10% above the five-year average. This is due to rising production in Indonesia and Malaysia, the world’s largest producers. In May, confirmation of the El Niño weather phenomenon in Southeast Asia raised concerns about potential disruptions to the harvest.

Palm vs soya oil

SOYABEAN VS PALM OIL PRICES (US$/TONNE)

Soyabean oil prices remain low. Global production for 2015/16 is forecast up 5% year-on-year to 49.6M tonnes. Demand growth in the biofuel industry is expected to slow due to low crude oil prices. As a result ending stocks are expected to increase 8% year-on-year to 3.5M tonnes. However, soyabean oil prices rose in May due to strikes by crush and port workers in Argentina which caused concerns about possible delays to oil shipments. Palm oil prices have been relatively stable in recent months. However, concerns about the effects of El Niño will be the driving influence in the short term.

RAPESEED OIL PRICES (US$/TONNE)

Rapeseed oil Rapeseed oil prices rose due to forecasts for lower production in 2015/16. Rapeseed oil production is forecast to fall 2% year-on-year to 26.7M tonnes, driven by a decrease in the planted area of rapeseed. As a result rapeseed oil ending stocks are forecast to decrease by 20% year-on-year to 2.8M tonnes.

PRICES OF SELECTED OILS (US$/TONNE) 2013

2014

Feb 15

Mar 15

Apr 15

May 15

Soyabean 1,052 897 750 737 742 780 Crude Palm 854 825 693 668 658 665 Palm Olein 803 762 651 625 606 624 Coconut 948 1,276 1,152 1,085 1,066 1,119 Rapeseed 1,080 906 754 740 740 764 Sunflower 1,108 905 808 802 843 907 Palm Kernel 904 1,120 1,042 998 957 954 Average price 964 INDEX 228

956 226

835 198

808 191

802 190

830 197

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 endusers 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

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OILS & FATS INTERNATIONAL

13 - 14 April 2016 Hyderabad International Convention Centre (HICC) Hyderabad, India

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Proven technology meets new design. Bühler’s latest champion in hull separation, the SMA™ 203-3 OL, impresses with high quality and excellent performance. While relying on well-known process technology for hull separation, the new hull separator not only offers high throughput capacities but also an optimal separa-tion of sunflower and soybean kernels from hulls. Operation and maintenance is simplified by easily adjustable aspiration devices and quick access to the screens. Designed especially for oilseed hull separation, this hull separator exceeds industry standards and meets the highest requirements. www.buhlergroup.com/oilseeds

Hull Separator SMATM 203-3-OL. Reduces your oil loss with hulls. – Excellent separation results of cracked sunflower and soybean oilseed from hulls. – High capacity hull separation due to large screen area. – High operating reliability and availability. – Quick access to the screens and simple maintenance. – Easy adjustable aspiration devices. – Compact and sturdy design.

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