OFI March/April 2016 by Oils & Fats International

Exhibition catalogue inside March/April 2016 t Vol 32 No 3 www.oilsandfatsinternational.com

OLIVE OIL

The rise of the Italian agromafia? Update on Xylella fastidiosa

SOUTH AMERICA

Uruguayâ&#x20AC;&#x2122;s bulk terminal

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Leading edge technologies for refining plants

Degumming • Acid Degumming (wet/dry) • Ultra-shear acid Degumming • Bio Degumming • Membrane Degumming

Neutralising Short/long mix Neutralising • Multimix Neutralising • Miscella Neutralising • Silica Purification

Detoxification

Bleaching

• Combiclean Process • Active carbon Purification

• Sparbleach Bleaching • Unibleach with prefiltration • Silica Purification

Deodorising

Winterising

• Qualistock Deodorising • Multistock Deodorising • Sublimax Ice Condensing

• Wintrend Winterising • Combifrac Winterising

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

PHOTO: COMUGNERO SILVANA/DOLLARPHOTOCLUB.COM

CONTENTS VOL. 32 NO. 3 MARCH/APRIL 2016 EDITORIAL:

FEATURES

Editor: Serena Lim Tel: +44 (0)1737 855066 E-mail: serenalim@quartzltd.com

OLEOCHEMICALS

Editorial Assistant: Rose Hales Tel: +44 (0)1737 855157 E-mail: rosehales@quartzltd.com SALES:

OLIVE OIL ADULTERATION IS THE EU’S BIGGEST SOURCE OF AGRICULTURAL FRAUD AND IS JEOPARDISING THE CREDIBILITY OF THE WHOLE INDUSTRY

NEWS & EVENTS

Sales Manager: Mark Winthrop-Wallace Tel: +44 (0)1737 855 114 E-mail: markww@quartzltd.com

Sales Consultant: Anita Revis Tel: +44 (0)1737 855068 E-mail: anitarevis@quartzltd.com

Comment

Tackling the problem of childhood obesity

Chinese Sales Executive: Erik Heath Tel: +44 (0)1737 855108 E-mail: erikheath@quartzltd.com

PRODUCTION:

Production Editor: Carol Baird E-mail: carolbaird@quartzltd.com CORPORATE:

SUBSCRIPTIONS: Elizabeth Barford Tel: +44 (0)1737 855028 E-mail: subscriptions@quartzltd.com Address: Subscriptions, Quartz House, 20 Clarendon Road, Redhill, Surrey, RH1 1QX, UK

Noble finalises sale of 49% stake in agri unit to COFCO

Product or waste?

OLIVE OIL

Managing Director: Steve Diprose Tel: +44 (0)1737 855164 E-mail: stevediprose@quartzltd.com

Xylella fastidiosa – a dangerous game

News

Biofuels News

EBB raises alert over ‘unfair’ product exports from Poland 8

Biotech News

ChemChina bids for Syngenta in China’s biggest foreign deal

Transport & Logistics News

New soya and grain terminal at Quequén

A member of FOSFA

Oils & Fats International (USPS No: 020-747) is published eight times/year by Quartz Business Media Ltd and distributed in the USA by DSW, 75 Aberdeen Road, Emigsville PA 17318-0437. Periodicals postage paid at Emigsville, PA. POSTMASTER: Send address changes to Oils & Fats c/o PO Box 437, Emigsville, PA 17318-0437

The rise of the Italian agromafia?

First bioplastic-fromglycerol facility will be built in Italy

SOUTH AMERICA

Published by Quartz Business Media Ltd Quartz House, 20 Clarendon Road Redhill, Surrey RH1 1QX, UK Tel: +44 (0)1737 855000 Fax: +44 (0)1737 855034 E-mail: oilsandfats@quartzltd.com Printed by Pensord Press, Gwent, Wales

Renewable Materials News

Diary of Events

International Market Review

Statistics OFI INDIA 2016

@oilsandfatsint

Oils & Fats International

Grain sailing

Exhibition catalogue inside

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NEWS

COMMENT

Tackling the problem of childhood obesity

t least 41M children under five years are overweight and obese and there needs to be greater political commitment to tackle this global challenge, according to a January report for the World Health Organzisation (WHO) Director-General. The Commission on Ending Childhood Obesity (ECHO) report was two years in the making and made six sets of recommendations for governments, including a tax on sugary beverages. It singled out the marketing of unhealthy foods and non-alcoholic beverages as a major factor in the increased numbers of overweight and obese children, particularly in the developing world. We all know that if we consume more calories than we burn, we will put on weight. Busy families are cooking less and eating out more. Portion sizes are bigger. We are surrounded by cheap and easily available highcalorie, nutrient-poor fast food and junk food. Children are consuming a large amount of sweetened beverages and spending less time actively playing, and more time in front of the TV or computer. None of these factors are in the control of a young child, which is why the ECHO report has recommendations for WHO, international organisations, governments, NGOs and the private sector in six areas covering: promoting intake of healthy foods; promotion of physical activity; preconception and pregnancy care; early childhood diet and physical activity; health, nutrition and physical activity for school-age children; and weight management. (For the full report, go to www.who. int/end-childhood-obesity/final-report/en/). The reports says the number of overweight children has risen from 31M to 41M between 1990 to 2014. In absolute numbers, more overweight and obese children live in low- and middle-income countries than in high-income countries. Paradoxically, the number of children who are overweight or obese in Africa has nearly doubled since 1990, increasing from 5.4M to 10.3M. That is because undernutrition or malnutrition in foetal and early childhood places children at an especially high risk of developing obesity when faced with energy-dense diets and a sedentary lifestyle later in life. “Many countries now face a double burden in which inadequate nutrition and excess weight gain co-exist,” the report says. In high-income countries, the risks of childhood obesity are greatest in lower socio-economic groups. Certain groups – such as migrant and indigenous children – are also at a particularly high risk in some countries. “Many children today are growing up in environments that encourage weight gain and obesity,” the report says. Obese or overweight children are much more likely to stay that way into adulthood. The extra pounds don’t just put kids at risk of health problems including diabetes, heart disease and asthma. Childhood obesity also takes an emotional toll with teasing, low self-esteem and a negative body image. The commission says there is an urgent need to act now to improve the health of this generation and the next. “Government and society have a moral responsibility to act on w behalf of the child to reduce the risk of obesity.”

Noble finalises sale of 49% stake in agri unit to COFCO O

n 4 March, the Noble Group completed the sale of its 49% stake in its agricultural unit to state-owned China National Cereals, Oils and Foodstuffs Corporation (COFCO) for US$750M. The sale leaves COFCO as the sole owner of Noble Agri, having bought a 51% stake in the unit for US$1.5bn in 2014. The unit will be called COFCO Agri and will trade and process a wide range of agricultural products including grains, oilseeds, sugar, cocoa, coffee and cotton. “The acquisition will greatly accelerate COFCO’s internationalisation and global positioning,” chairman Frank Gaoning Ning has said. The sale was announced on 15 December and was approved by Noble Group shareholders on 28 January. Noble chief executive Yusuf Alireza had previously told a shareholder meeting in Singapore that the sale would improve the liquidity and balance sheet of the company. He said although the

company was carrying US$2.6bn in debt that was scheduled to mature, these debts could be rolled over. The Singapore-listed group posted its first annual loss in nearly 20 years on 25 February, reporting a net loss of US$1.67bn for the year ending 31 December against a profit of US$132M a year earlier. Moody’s Investors Service and Standard and Poor’s recently cut the company’s credit rating to junk based on liquidity concerns amid a struggling commodities market, CNBC said. Noble shares had fallen more than 70% since February 2015, when a firm called Iceberg Research published a report alleging that the Singapore-listed trader’s accounting treatment was “unusual,” resulted in “fabricated” profit and “intentionally misleads credit agencies and investors.” Noble has consistently denied the allegations and PricewaterhouseCoopers found its accounting was in line with international standards.

Wilmar’s Yihai subsidiary forms joint ventures to supply China

ilmar International’s Chinese subsidiary – Yihai Kerry Investments – is forming two joint ventures with Singapore Food Industries (SFI) to supply “safe and high quality food to the Chinese market”, the company announced on 22 January. Yihai and SFI will set up an investment holding company and an operating company in China for a registered capital of RMB230M (US$35M) and RMB200M (US$30M) respectively. SFI is a wholly-owned subsidiary of Singapore-listed SATS, a leading Asian provider of gateway and food services including airline catering, institutional and remote catering, and food distribution and logistics. Asian agribusiness Wilmar’s activities include oil palm cultivation, oilseed crushing, edible oils refining, sugar milling and refining, speciality fats, oleochemicals, biodiesel manufacturing and grain processing. Also in January, Wilmar announced it had sold a 33% stake in its German palm products and animal feed trading house, H Boegel, to German agri-commodities cooperative Agravis. The deal will give Agravis direct access to Asian markets for palmbased animal feed ingredients including palm kernel expellers, a byproduct of palm kernel processing. “It secures supply for our own feed production plants and the domestic market as a whole,” Agravis CEO Clemens Grosse Frie said. Agravis had a turnover of US$8.02bn in 2014. It had made some notable acquisitions last year, jointly acquiring the grain trading activities of the Rendsberg-based agribusiness group, Getreide AG, with Danish group DAVA, said Feed Navigator.

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NEWS

ADM expands in Middle East with stake in Medsofts A

rcher Daniels Midland Company (ADM) announced on 14 December that it had agreed to buy a 50% stake in Cairo-based Medsofts Group, which has activities in commodity trading, processing, and logistics in Egypt, Middle East and North Africa. The new 50-50 joint venture will own and manage merchandising and supply chain operations, including: t An international merchandising operation that handles more than 1.5M tonnes of grains, oilseeds and soft commodities for the Middle East and North Africa region; t A local grain distribution operation, serving customers in Egypt; and t An inland logistics network that links port operations to customers throughout Egypt.

In addition, the joint venture will own a 50%

Argentina eases imports of soya

rgentina has cut soya import barriers in a bid to increase exports of soya derivatives such as meal and oil, Reuters reports. The move follows newly elected President Mauricio Macri’s floating of the peso and elimination of export taxes on crops such as soyabeans and corn to encourage farmers to sell hoarded crops. The move to help processing plants, which have an idle capacity of 30% was contained in a resolution published by the government on 18 January. “When the result is exportable soya oil, soya meal or pellets, soyabean imports will not have to be registered with the Register of Authorized Soy Operators (ROSA),” the resolution said. The Reuters report said the previous government had put up barriers to soya imports from neighbouring countries such as Paraguay and Brazil.

share of Nile Stevedoring & Storage Co (NSSC), which operates one of the largest grain port facilities in Egypt. Located at the Port of Alexandria, the facility has a discharge capacity of more than 2M tonnes/year, and includes additional land for future expansion, on which the two companies are now conducting advanced due diligence for a potential oilseed crushing facility. The acquisition is subject to regulatory approval and ADM is hoping to close the deal early this year. The privately-held Medsofts group handles grains and by-products (corn, wheat, dried distillers’ grain, corn gluten meal and wheat bran); oilseeds and by-products (soyabeans, soyabean meal, soyabean oil and sunflower meal) and soft commodities (white sugar and sugar beet pulp pellets).

Its customers include poultry farms, aquaculture farms, feed mills, flour mills, confectionery and large local wholesalers. “This is an excellent addition that helps meet several key goals for strategic expansion in our agricultural services business,” said Joe Taets, president of ADM’s agricultural services business unit, and president of the company’s EMEA operations. “It further diversifies and expands our merchandising footprint, and it helps us grow our logistics services.” Taets said that in 2015 alone, ADM had opened new distribution and merchandising offices in Central America, Asia and Africa; acquired a port and shipping agency in Brazil; announced major expansions at port facilities in Argentina and Brazil; launched ARTCO Stevedoring; and acquired full ownership of terminals on the Black Sea.

Viterra forms canola crush deal

anada’s leading grain and oilseed handler Viterra Inc announced on 5 January that it had formed a supply and marketing agreement with Pacific Coast Canola LLC (PCC), which will crush canola for Viterra at its plant in Warden, Washington, USA. In addition, Viterra affiliate – Glencore Grain Investment LLC – has increased its ownership in PCC to 50% and McKinstry Holdings Inc has bought the remaining 50% of PCC. “This is a great opportunity for our company, allowing us to expand our processing capacity, build on the success we’ve achieved at our crush plant in Ste Agathe, Manitoba, and complement our recent acquisition of TRT-ETGO in Becancour, Quebec” said Viterra president and CEO for North America Kyle Jeworski. PCC’s facility opened in 2013 and is the largest expeller-press canola processing facility in North America with the capacity to crush 1,100 tonnes/day. It produces a variety of canola oils, including non-GMO, halal and kosher-certified, and produces meal products that are sold into the dairy cattle and other livestock markets. Viterra is a global agri-business company with operations in Australia, Canada, China, New Zealand and the USA and activities in grain and oilseed handling and marketing; agri-products; and processing. It is part of the agricultural business segment of Glencore International, which acquired Viterra for US$6.15bn in 2012. Glencore is a leading commodity producer and marketer of metals and minerals; energy products and agricultural products including grains, oils and oilseeds, cotton and sugar.

Sustainable palm oil supply chain pledge by 2020

leven European private sector organisations – backed by their five governments – joined forces for the first time and committed themselves to ensuring a fully sustainable palm oil supply chain in Europe by 2020. The ‘Commitment to Support 100% Sustainable Palm Oil in Europe’ was presented at the EU and Global Value Chains conference in Amsterdam on 7 December and is an initiative of the European Sustainable Palm Oil project, The Netherlands – along with Denmark, France, Germany and the UK – also declared government support for the commitment, which is backed by the Belgian Alliance Sustainable Palm Oil; Caobisco, the Association of Chocolate, Biscuit and Confectionery

Industries of Europe; Danish Food and Drink Federation Initiative; Dutch Alliance Sustainable Palm Oil; German Forum Sustainable Palm Oil; FEDIOL, European Vegetable Oil and Proteinmeal Industry Federation; French Alliance Sustainable Palm Oil; Food and Drink Federation - UK Statement on Sustainable Palm Oil signatory; IMACE, European Margarine Association; Italian Union for Sustainable Palm Oil; and the Swedish Initiative for Sustainable Palm Oil. A FEDIOL spokesperson said Europe had responsibility because it “is the second largest importer of palm oil in the world, and 7.3M tonnes of palm oil enters Europe accounting for 11-12% of world production”.

IN BRIEF USA: Monsanto announced on 13 January that it would build a new US$140M cottonseed processing facility in Lubbock in March 2016, with an expected completion date in mid-2017. The site will become Monsanto’s main US hub for all commercial cottonseed processing operations. Existing cottonseed processing facilities in Arizona, Mississippi and Texas will continue to support manufacturing operations until mid-2017, when they will transition to support storage and warehousing, pre-commercial operations or research. EGYPT: New Zealand dairy co-operative Fonterra and local food company Sakr Group have teamed up to launch Anchor butter in hypermarkets and grocery stores in Egypt, the companies announced in December. Fonterra regional director ingredients, Europe, Middle East and Africa, Hans Huistra, said the launch would help meet Egyptians’ growing demand for high quality dairy products. WORLD: GreenPalm announced at the end of December that it had introduced traceability back to the originating certified mill for every certificate purchased on its trading platform. The GreenPalm Book & Claim system enables buyers to offset palm oil purchases by buying certificates representing an equivalent volume of certified product.

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NEWS

IN BRIEF CHINA: On 10 December, the European Food Safety Authority Panel of Contaminants in the Food Chain gave a positive opinion on the use of detoxified jatropha kernel meal in animal feed. It said processes that almost completely removed or degraded toxic phorbol esters (PEs) in jatropha products were available, resulting in levels below the limit of detection of 3mg jatropha PEs/kg. Therefore, replacing 50% of the protein in compound feeds with treated jatropha materials would result in animal exposures that were still 10 to 200-fold lower than the ‘no observed adverse effect level’ for pigs. “The panel concluded that such use of jatropha material would not pose a health risk to pigs and the risk to other species is likely to be low.” More data was needed to draw firm conclusions on human risks. TUNISIA: On 25 January, the European Parliament (EP) trade committee approved emergency measures to allow 70,000 tonnes of duty-free olive oil imports to help the Tunisian economy in the wake of terrorist attacks in 2015 which hit its tourism industry. An amendment was included for a mid-way review as EU producers had argued that the move gave Tunisia an unfair advantage. The proposal needs the approval of the full EP, and would introduce a two-year temporary zero-duty tariff quota of 35,000 tonnes/year for EU olive oil imports from Tunisia from 1 January 2016 to 31 December 2017 without increasing the overall volume of imports. WORLD: Consumption of olive oil globally fell 7% in 2014/2015 to total 2.85M tonnes due to higher prices and stiff competition, the International Olive Oil Council reported. Worldwide production also fell to 2.4M tonnes, with EU production down 42% to total 1.4M tonnes. Spain was the largest olive oil producer with 841,200 tonnes, followed by Tunisia (340,000 tonnes); Greece (300,000 tonnes) and Italy (220,000 tonnes). Production for 2015/2016 is forecast to rise 22% to reach 2.99M tonnes.

US dietary guidelines released O

n 7 January, the US Department of Agriculture (USDA) and Health and Human Services released the 2015-2020 edition of Dietary Guidelines for Americans, which is updated every five years. While previous guidelines have focused mainly on individual food groups, the new guidelines focus on healthy eating patterns. It recommends a diet with limited sugar and saturated fat, less salt, a rich variety of vegetables, fruits and whole grains, and protein rich foods that contain little or no saturated fat including eggs, seafood, lean meat and poultry, nuts and seeds. For the first time, the guidelines have put a limit on sugar, saying added sugar should make up only 10% of daily calories. The limit on cholesterol has been removed, meaning no limit on eggs since they are high in cholesterol but not high in saturated fat. The guidelines said saturated fats intake

should make up less than 10% of calories per day, and people should shift from foods high in saturated fats to those high in polyunsaturated and monounsaturated fats. And it said average intakes of oils were below the recommendations for almost every age-sex group, although not far from recommendations. “To move the intake of oils to recommended levels, individuals should use oils rather than solid fats in food preparation where possible, increasing the intake of foods that naturally contain oils, such as seafood and nuts, in place of some meat and poultry, and choosing other foods, such as salad dressings and spreads, made with oils instead of solid fats.” The US guidelines are used by policymakers in developing federal food, nutrition and health policies and programmes, including food labelling and food served in school and prisons.

Tougher canola import standard

hina plans to toughen its standard for imported Canadian canola from 1 April, reducing the amount of foreign material it allows per shipment, Reuters reports. China’s quarantine authority, AQSIQ, notified the Canadian Food Inspection Agency (CFIA) on 1 March that it would soon allow no more than 1% dockage, or the amount of foreign material per canola shipment, according to Canola Council of Canada President Patti Miller. The current allowable dockage range was 2-2.5% and the new standard would be difficult and costly for Canadian exporters to meet, said a Canadian-based canola exporter in the Reuters report. Foreign material can include seeds of other plants or straw that gets inadvertently mixed with the shipment. Although China had expressed renewed concerns since December about the possible presence of the blackleg fungus in shipments, exporters suspected its motivation for slowing imports was linked to ample domestic inventories, the exporter said. China was holding about 5.8M tonnes of rapeseed oil following years of stockpiling, the report said. According to Reuters, China was the biggest importer of Canadian canola during the 2014/15 crop year – with Statistics Canada data showing it bought 4.1M tonnes – and Canada was the world’s biggest canola exporter.

Cargill withdraws from crop inputs

argill announced on 17 February that it had reviewed its grain and oilseeds businesses in Central and Eastern Europe and had decided to stop providing crop inputs to farmers, ending these activities by the end of May 2016. This would affect Bulgaria, Hungary, Poland, Romania, Russia, Slovakia and Ukraine. Cargill said it would refocus its attention on grain and oilseed origination, merchandising and trading activities in these markets. The Black Sea region was also a key focus and existing investments and operations – including port terminals and oilseed crushing plants – would be strengthened in the region. Cargill said its crop inputs business had some successes in Eastern Europe but it had been “unable to realise many of the expected synergies between origination and crop inputs”.

New food group for Yildiz’s global brands T urkey’s leading biscuits and confectionery group Yildiz Holding has reorganised its global brands – De Met’s Candy, Godiva chocolate, United Biscuits and Ülker – under a new global food group called Pladis, reports the Hurriyet Daily News. Pladis will have US$5.2bn in annual revenue and employ 26,000 staff. “[We want] to leverage the combined power of our individual companies to be a global leader in biscuits and confectionary” said

Yıldız Holding President Murat Ülker. Yildiz produces chocolate, biscuits, confectionery, edible oils, margarine, milk, dairy products, beverages and instant foods and has 49 product categories and 320 food brands. It said it is the world’s third largest biscuit manufacturer, the 10th biggest chocolate producer and uses 2.9M tonnes of purchased raw material in Turkey. In 2007, it bought luxury Belgian chocolatier Godiva for US$850M and in 2014, it

bought the UK’s United Biscuits for US$2.78bn in its largest acquisition. The word ‘Pladis’ comes from ‘Pleiades’, the Latin name of the seven-star cluster which also represents Yildiz’s Ülker brand. Company deputy chairman Cem Karas told reporters on 13 January that Yildiz planned to ramp up investments this year to above US$343M with a new planned project in East Africa and capacity increases in Turkey, the UK and the USA, the Hurriyet report said.

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BIOFUELS NEWS

IN BRIEF WORLD: The International Energy Agency’s 2015 World Energy Outlook estimates that biofuels will only account for about 5% of transport fuel consumption by 2040. The estimated total volume of biofuels used in 2040 is three times higher than current consumption, 4M barrels/day compared to 1.5M barrels/day. GERMANY: On 28 January, UFOP reported that Germany biodiesel exports in the first 11 months of 2015 were down by 25% from the same period in 2014, according to German Federal Statistical Office foreign trade figures. However, 90% of exports went to EU member states. Agrarmarkt InformationsGesellschaft mbH said the drop was caused by massive decline in deliveries to France, the Netherlands and Poland. GERMANY: The country’s certified ethanol output in 2015 reached 739,821 tonnes, a 1.8% year-on-year rise, the German Bioethanol Industry Association (BDBe) reported. A total of 467,273 tonnes was produced from sugar crops, 1.8% less than last year, while there was a 9% increase to 264,665 tonnes from sugar beet. About 3.4% of Germany’s grain harvest and 9.8% of its sugar beet was used in ethanol production, BDBe said. The 2015 volume also included 7,884 tonnes of second-generation ethanol made from feedstocks such as food waste and residues, 3.9% below 2014 levels. BRAZIL: The House of Representatives has approved a bill to increase biodiesel blending to 8% from the current 7%, reported Biofuels Digest on 3 March. This would rise to 9% in the next 24 months and to 10% in the next 36 months. The bill would also allow blending of up to 15% biodiesel if automobile makers approved its use, the report added. While soyabean oil would continue to be the main feedstock, the biodiesel industry had sought the increased blending mandate partly to boost other feedstocks such as tallow and used cooking oil, Biofuels Digest said.

EBB raises alert over ‘unfair’ product exports from Poland

he European Biodiesel Board (EBB) has alerted EU and national authorities on what it says are biodiesel products exported from Poland at unfair low prices, breaching EU and national laws and distorting the internal EU biodiesel market. “An inquiry is to be opened on such unfair practice,” the EBB said in a press statement on 3 March, adding that it had also alerted the AntiFraud office of the European Commission (OLAF). “It seems that some operators active in the Polish and EU market are taking advantage of unfair discounts granted by the Polish national biofuels law, allowing them to export physical quantities of biodiesel that have been declared as blended – under Renewable Energy Directive (RED) mandates – with gasoil sold in the Polish territory. “Cheaper fossil diesel is reported substituting the Polish claimed volumes of biodiesel accounted towards the national blending mandate. This concerns biodiesel quantities which are then sold in Belgium, Italy, the Netherlands, Romania and – once

blended at biodiesel hubs (Amsterdam-RotterdamAntwerp [ARA] and Barcelona) – to also reach the French market.” According to the EBB, the quantities involved are said to be increasing every day and have recently reached figures of 20,000-25,000 tonnes/month. “The same material ends up fraudulently used twice (in Poland and in another EU country) to fulfil RED-based mandatory objectives, which gives the operators a corresponding unfair market advantage.” The EBB said this breached a number of legal and economic concerns at European level, as well as sustainability rules, which would trigger retroactive verification and penalties at national and EU levels. Competition and EU internal market rules were also challenged. “The EBB will actively strive to identify the source of the problem, as well as find effective solutions that will keep the EU internal market for biodiesel united and functioning at a level-playing field again,” said EBB president Alain Brinon.

HPCL makes ethanol venture bid Oslo airport to

ndia’s Hindustan Petroleum Corp Ltd (HPCL) has bid US$9M for two of eight closed sugar mills in India’s eastern province of Bihar, the country’s first oil refiner-marketer to seek captive ethanol capacity through acquisition, reports ICIS News on 19 February. The bid was a “trial case” for HPCL to acquire captive ethanol production capacity compared with public procurement from private mills, a company official said. The Bihar government was expected to announce the winning bidder within the next two months. The ICIS report said previous attempts to re-open the eight closed sugar mills since 2005 had failed because most prospective investors were keen to use the sugar mills’ assets exclusively for ethanol production, which existing laws prohibited. HPCL had pledged to maintain sugar and ethanol production. The Indian Sugar Mills Association has estimated that a planned increase in mandatory ethanol blending with petrol from 5% to 10% would require 2.66bn litres/year of ethanol, while current availability was pegged at 2bn litres/year. ICIS said India’s largest petroleum refiner-marketer Indian Oil Corp (IOC) was investing US$2.4bn to build a 1M tonnes/year synthetic ethanol plant in collaboration with US-based Celanese Corp.

offer bio jet fuel

slo Airport is to offer bio jet fuel to airlines on regular deliveries, the first international hub to do so, Northstar Travel reported on 25 January. Air BP supplied the fuel and Lufthansa, KLM and SAS signed purchase agreements. The biofuel would cost more than normal jet fuel although users would receive tax breaks in Norway and flights run on the biofuel would not count against the EU quota system on greenhouse gas emissions, Northstar Travel said. Only 330,000 gallons were delivered in January but Norway’s airport authority Avinor said the goal was to increase volumes.

Bunge reports 2015 bioenergy loss but improved sales

n February, agribusiness giant Bunge Ltd reported a US$22M loss in its sugar and bioenergy segment for 2015, despite improved prices and sales volumes for Brazilian ethanol. It said improved performance in sugarcane milling was offset by lower results in global trading and merchandising and a US$11M loss related to its Brazilian renewable oils joint venture. Results in its biofuel joint ventures were lower than in 2014, mainly due to weaker ethanol

market conditions in Argentina and the USA. The sugar and bioenergy segment reported adjusted EBIT of US$10M for fourth quarter 2015, compared to a US$21M loss for the same time in 2014. For the full year, the result was a US$22M loss, compared to a US$35M loss in 2014. Bunge chief financial officer Drew Burke said ethanol demand remained strong during the fourth quarter and sugar and ethanol prices had improved.

Bunge CEO Soren Schroder added that the ethanol market in Brazil continued to be favourable and 2016 was expected to be a very good year for milling. Ethanol Producer magazine said Bunge currently operated eight sugarcane mills in Brazil, with the capacity to process 20M tonnes/year of sugarcane. It also had investments in several corn ethanol plants in Argentina and the USA, and a joint venture in Brazil that would use microalgae to convert sugars into tailored oils.

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BIOFUELS NEWS

Abengoa proposes rescue plan; files for bankruptcy in US T restructured company. Reuters said the proposal had been backed by creditors representing about 40% of the company’s debt but needed to be approved by creditors who held at least three-quarters of the company’s debt. Abengoa began insolvency proceedings on 23 November and its insolvency deadline is 28 March. In the USA, Abengoa Bioenergy US Holding filed for Chapter 11 bankruptcy relief in Missouri on 24 March on behalf of itself and five of its US subsidiaries. Two involuntary bankruptcy proceedings were filed earlier in February in Nebraska and

ADM considers sale of ethanol plants

nce a pioneer of ethanol production, Archer Daniels Midland Company (ADM) announced on 2 February that it was considering options including a sale of its ethanol plants in Nebraska and Iowa, the largest in the USA, according to a Reuters report on 3 February. The plants were opened six years ago when the biofuel market was on the cusp of a boom, but recent crush margins and weak prices had resulted in fading financial success. As well as the two largest ethanol plants, ADM chief executive Juan Luciano said another plant in Peoria, Illinois was also being considered for sale. The three plants together represented almost half of the company’s 1.8bn gallons/year US ethanol capacity, Reuters said. Shares fell almost 9% in the last quarter, and ADM blamed poor margins on ethanol and low US grain exports. Reuters said ADM’s decision to consider selling previously prized assets had taken industry experts by surprise, as ethanol prices were withstanding the recent commodities depression. t ADM said on 19 February that it did not expect to restart its sugarcane ethanol plant in Brazil after a seasonal shutdown earlier this year. The company had been trying to sell the plant in Limeira do Oeste since 2012, Reuters said.

Kansas concerning its starch ethanol facilities in Ravena and York, Nebraska; Colwich, Kansas; and Portales, New Mexico, Biofuels Digest said. Motions were filed to consolidate the administration and transfer of all the filings to St Louis. Not included in the bankruptcy filings were starch ethanol plants in Indiana and Illinois, a new cellulosic ethanol facility in Hugoton, Kansas, and a few other subsidiary companies. President and CEO of Abengoa Bienergy, Antonio Vallespir, told Biofuels Digest that the action would give the company “the potential to resume operations and generate revenues at the more profitable of these facilities”.

50 2015

roubled Spanish renewable energy group Abengoa said on 10 March that it had agreed a draft rescue plan with creditors to cut debt and inject fresh cash, in its bid to avoid becoming Spain’s biggest bankruptcy, Reuters reports. Creditors would lend up to US$2bn over five years, giving them the right to 55% of the restructured company, the report said. At the same time, around 70% of existing debt would be swapped for equity, giving those creditors the right to 35% of the company. Creditors who advanced an additional US$890M in financial guarantees to develop projects would get 5% of the

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Output to be doubled

ne of Brazil’s three largest biodiesel producers, BSBIOS, said on 20 January that it planned to invest €18.3M in its Marialva unit in Paraná state to double production from 208M litres/year to 416M litres/year, Biofuels International reported. Expansion was expected to be completed by 2017. The Marialva unit uses soyabean oil and animal fat as feedstocks. Its glycerine production capacity would also be doubled. 7 OFI – MARCH/APRIL 2016 www.oilsandfatsinternational.com 3381_FM_Tonsil_128x185_en.indd 1

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BIOTECH NEWS

IN BRIEF USA: Dyadic International announced in December last year that the sale of its Industrial Technology business to DuPont’s Industrial Bioscience business had closed. Following the closing of the sale, Dyadic will focus on its biopharmaceutical business. USA: A type of corn previously considered a regulated article has been approved by the USDA’s Animal and Plant Health Inspection Service (APHIS), a report in Ethanol Producer Magazine reported in December last year. The corn, known as MON 87403, was developed for increased ear biomass by Monsanto and a public comment period was opened last spring on a draft environmental assessment and a preliminary plant pest risk assessment. In addition, the Federal Register made available a written determination and finding of no significant impact, Ethanol Producer Magazine said.

SGS certified to conduct GM field trials in Argentina

nspection, testing and certification company, SGS, announced last year that it had been granted certification from Argentina’s National Seed Institute (INASE) to conduct field studies on GM crops, in order to support the development of new traits and events. SGS said that a thorough review of its field trial capabilities, bio-safety arrangements and agronomy skills was carried out by INASE and it was subsequently certified. SGS has a new field site in Junin, Argentina, which it said would operate concurrently with existing locations in Brazil. It added that customers could now apply for field trial permits from the National Commission of Biotechnology (CONABIA). Once customers’ trial permits had been approved by CONABIA (a process that could take up to four months), SGS said it was ready to commence trials at the farm in Junin. SGS offers inspection, testing, verification and certification services around the world.

ChemChina bids for Syngenta in China’s biggest foreign deal C

hina National Chemical Corp (ChemChina) announced on 3 February that it had officially made a bid of US$43bn, or US$465 a share, for Swiss pesticide and seeds producer Syngenta AG. The deal would be the biggest ever foreign purchase by a Chinese company. In the conditions of the deal, state-owned ChemChina would retain Syngenta’s management team and ChemChina chairman Ren Jianxin would lead the 10-person board, which will include four Syngenta members. In addition, there are deal breakup fees of US$3bn for ChemChina and US$1.5bn for Syngenta. The deal is scheduled to close by the end of the year. Syngenta is the world’s biggest pesticide producer and has one of the largest seed portfolios, including 6,800 varieties of its own proprietary genetics. According to Global Ag Investing, China is looking to secure its food suppliers by acquiring Syngenta,

Bloomberg said the deal would also mean China could produce more food per acre and would give it the power to take on rivals such as Dow Chemical and DuPont – which are planning to merge – and Monsanto. China was the world’s second biggest corn producer but its yields were 44% less than those in the USA, Bloomberg said. No domestic food grain crops were currently bioengineered, although the country did buy GM crops from abroad. Bloomberg said the Chinese government was already laying the groundwork for the domestic growth of GMOs. A campaign was started in 2014 to increase public knowledge of biotechnology and combat any perceived risks. Syngenta chairman Michel Demare told Reuters that ChemChina would be seeking more deals in the future to further ensure China’s food security.

Monsanto will slash more jobs

onsanto has blamed a souring farm economy, currency woes and low commodity prices for lower than expected earnings that have led to a cost-cutting drive that will see more jobs slashed than previously announced, according to a Reuters report in January. In October last year, Monsanto said it would slash 2,600 jobs worldwide in a global restructuring effort. However on 6 January it announced it planned to cut 3,600 jobs – 16% of its workforce – between now and 2018. Restructuring charges would reach US$1.1bn to US$1.2bn, compared to the previous estimate of US$850M to US$900M. Since rivals Dow Chemical Co and DuPont announced their merger in December, and Monsanto’s bids to takeover Syngenta were unanimously rejected, Reuters said investors and Wall Street had wondered what the company would do to boost its portfolio. There was also a surplus of corn and soyabean globally, which was keeping prices very low for the third year in a row. Reuters said Monsanto had reported a net loss of US$253M in the first quarter ending 30 November, compared to a profit of US$243M a year earlier. The company’s total net sales fell 22.7% to US$2.22bn.

ADM purchases controlling stake in expeller-presser Harvest Innovations

rcher Daniels Midland (ADM) announced at the start of February that it would buy a controlling stake in US-based Harvest Innovations, which uses expeller pressing to produce nonGMO and gluten-free ingredients. “More and more consumers are looking for foods that are gluten-free, that aren’t genetically modified, and that are healthy and organic, and ADM is perfectly positioned to meet those needs,” said Vince Macciocchi, president of ADM’s WILD Flavors and

Specialty Ingredients business unit. Harvest Innovations expellerpresses grains, legumes and oilseeds to produce ranges including non-GMO soya chips, expeller-pressed soya flour and textured vegetable protein, organic soya crisps, and gluten-free flours and pastas. It is based in Indianola, Iowa, and has a second processing facility in Deshler, Ohio. ADM said it expected the deal to close in the next few months.

Campbell’s starts GM food labelling

ampbell’s Soup Co has become the first major US company to begin GMO labelling, although it is not yet a requirement in all the country’s states, Reuters reported on 11 January. The firm is backing a campaign for nationwide mandatory labelling of any GM ingredients in food for sale in the USA, saying consumers have the right to know about their presence. Just-Food said the move was significant because the early movement by one or two companies to instigate change had been key in triggering further changes in the past. Mark Alexander, president of Campbell’s Americas Simple Meals and Beverages unit, told Reuters that about 75% of the company’s portfolio consisted of ingredients derived from GMOs. Legislation is scheduled to come into force in July in Vermont making it mandatory to label food containing GMOs in that state. According to a 14 January Just-Food report, in response to Vermont’s legislation, the food industry is backing federal legislation called the Safe and Accurate Food Labelling Act, which is currently moving through congress. This legislation would create a nationwide policy of voluntary GM labelling and would make opposing legislation by individual states disputable.

8 OFI – MARCH/APRIL 2016 www.oilsandfatsinternational.com

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TRANSPORT & LOGISTICS NEWS

New soya and grain terminal at Quequén A

new soya and grain terminal is being built in Quequén, one of the two deep sea grain ports in Argentina. Dutch development bank FMO and Crédit Agricole CIB announced in January that they had arranged a US$32.5M loan to help fund the US$65M green-field grain terminal, which will be used to store and load soyabeans, soya meal, wheat, corn and barley sourced from the south of Buenos Aires province. The Sitio 0 de Quequen SA terminal is a joint venture between international agri trading companies CHS Inc and Noble Agri, together with Argentinean grain companies Alea y cia SA, E-Grain SA, A&J Nari SA and Lartirigoyen y cia SA. It is expected to begin operations in the first

IN BRIEF AUSTRALIA: TQ Holdings has proposed a new US$124M bulk liquids terminal at Port Kembla, New South Wales (NSW), reports the Illawarra Mercury. TQ – a joint venture between Japanese fuel transport group TonenGeneral and Australian logistics company Qube – plans to build 23 tanks for petroleum and ethanol fuel storage, 13 waste tanks, two fire water tanks, and associated loading equipment. The terminal would replace a previous plan by National Biodiesel for a soya processing and biodiesel facility. The terminal would be located adjacent to GrainCorp’s bulk liquids facility, which includes 10 storage tanks for chemicals, fertilisers, fuel and edible oils. UK: Global agribusiness giant Cargill announced in January that it planned to close the London office of its ocean transportation arm and consolidate its freight activities in Geneva to become as efficient as possible. It said the freight market “is in its most distressed position since the mid-1980s” and this was likely to continue for the foreseeable future. “The reduction in dry bulk demand led by China and the general slowdown in the global economy have led to a significant over-supply in the dry bulk freight market at a moment when many new builds are being delivered.” Cargill Ocean Transportation manages over 500 dry bulk vessels and ships over 220M tonnes of 100 different dry bulk commodities per year.

quarter of this year, as it is mostly completed, and will have a total loading capacity of 2M tonnes/year and a storage capacity of 120,000 tonnes, with the option for further capacity expansion at a later stage. A separate truck yard will be developed just outside the town of Quequén to regulate transport to and from the terminal “A core focus of FMO is to support agribusiness development in a sustainable and responsible manner,” said Suzanne Gaboury, FMO director of agribusiness. “Sitio 0 will add much-needed grain export capacity in a strategic deep sea port in Argentina, using the latest technological and environmental standards,” FMO said in a press release.

“This will result in increased supply chain efficiency through reduced loading times in the port and improved preservation of goods. Furthermore the project will generate additional direct and indirect employment in the region. “Being one of the lowest-cost producers of grains in the world, Argentina plays an important role in serving the increasing global demand for food. Next to that, agricultural exports are an important source of tax and foreign currency income for Argentina.” FMO said Argentina’s new government lifted disputed export controls in grain and beef soon after being sworn into power in late 2015 and the country was one of the world’s largest producer of livestock and grain.

New Winnipeg facility to handle soya and grain

oronto-based BroadGrain Commodities is planning to build a CAN$25M terminal to handle grain and soyabeans at the CentrePort Canada Rail Park in Winnepeg, Manitoba province, Canada. The development would take up around 12ha of the 280ha rail park, CBC News said. A CentrePort spokesperson said BroadGrain was new to Winnipeg and the development would bring significant rail movement through the port. BroadGrain is a leading Canadian-based marketer and handler of grains, oilseeds, by-products and specialty crops for the feed and food markets. It said the development marked the beginning of an

expansion into Western Canada. CBC News said BroadGrain’s investment also triggered the construction of Phase I of CentrePort’s new rail park. CentrePort is investing CAN$2.4M to build the lead tracks and switches off the Canadian Pacific Railway mainline, which will connect to BroadGrain’s dedicated tracks. CentrePort Canada is Manitoba’s 8,000ha inland port and foreign trade zone. The new rail park is being built just south of the CP mainline and west of CentrePort Canada Way. The rail park is being developed in phases as further projects are secured.

Ukraine launches new ‘Silk Road’ New export route for Brazilian soya cargo route to bypass Russia new US$384M soya terminal

kraine launched a new cargo train route to China on 15 January that will bypass Russia along a new ‘Silk Road’ designed to counter Moscow’s trade embargo on Kiev, AFP reported. Minister of Infrastructure Andriy Pyvovarskiy said Ukraine would be “able to offer a new alternative route for goods from Europe to China, and from Ukraine to China and other Asian countries” with this “historic event”. He added that all formalities between the transit countries had been settled, particularly establishing competitive reduced tariffs for freight transportation along the way. The first shipment, partially of iron ore, was loaded onto a 10-car and 20-container train at Iliychevsk city in Odessa Oblast province, and then moved to a ferry to cross the Black Sea for the former Soviet republic of Georgia. The route will cross the Caspian Sea and traverse Azerbaijan and

the Central Asian republic of Kazakhstan before reaching China nearly 12 days later. In January, Russia imposed new sanctions on Ukraine in response to its decision to enter a free trade and political association agreement with the EU, the AFP report said. The ban included transit restrictions on Ukrainian products to former Soviet republics in Central Asia and the Caucasus. Prime Minister Arseniy Yatsenyuk said the move “significantly complicated” Ukraine’s trade. “An absence of several months from these markets would immediately see us lose them for good,” Ukrainian Economy Minister Aivaras Abromavicius added. The Ukraine transported 25.48M tonnes of goods to China in 2015, making China the country’s largest export market, according to the Ukrainian embassy in Israel.

in Miritituba, Brazil will start exports in July this year, easing pressure on crowded southern ports, reports Reuters. Bruno Serapião, CEO of logistics firm Hidrovias do Brasil, said the terminal on the Tapajos river in Pará state would serve international traders such as Noble Agri, Nidera and Multigrain. It would be able to move up to 6.5M tonnes within five years. Soyabeans trucked from Mato Grosso state on the BR-163 highway would be loaded onto barges at the terminal, and then taken along the Amazon River to the coastal port of Barcarena. The voyage would cost less and be faster than trucking 2,000km from Mato Grosso to the main ports of Santos and Paranaguá in the southeast, Serapião added. In 2014, agribusiness giant Bunge also teamed up with the Amaggi group to open a port complex in Miritituba linking to Barcarena.

10 OFI – MARCH/APRIL 2016 www.oilsandfatsinternational.com

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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 ARGENTINA: Gevo Inc announced on 2 February that it had signed an agreement with Porta Hnos SA to build multiple isobutanol plants in Argentina using corn as a feedstock. The first facility will be wholly owned by Porta and is set to begin production in 2017, with 5M gallons/year of capacity. Porta may also build at least three additional plants for certain existing ethanol plant customers. USA: Australia’s Algae Tec Ltd has completed commissioning and start-up of a 50 tonnes/ year plant producing algaebased nutraceutical products at its manufacturing and development centre in Atlanta, USA, Biodiesel Magazine reported on 6 January. Algae Tec said the global market for algae-based nutraceutical products was currently more than US$250M/ year. Algae used in nutraceutical products could sell from US$10,000/tonne to more than US$100,000/tonne, depending on the type of algae produced and its nutritional value. The plant can produce and test multiple algal strains. Algae Tec said it expected to secure organic certification within the next few months and that it could supply modular plants each producing a range of different algae species. USA: Industrial bioscience company Amyris Inc announced on 4 January that it had signed its first multi-million-dollar agreement supplying its Biofene brand of renewable farnesene to an undisclosed leading nutraceuticals manufacturer. “Initial volumes of farnesene were delivered to the customer in the fourth quarter for conversion to the final product,” it said in a press release. Amyris expects 2016 sales revenue under this agreement to exceed its annual renewable fuel revenues to date. And if forward volumes were agreed beyond 2016, revenues could be around US$20M/year following successful commercialisation. Biofene is a long-chain branched hydrocarbon molecule made using Amyris’ microbes in fermentation of plant sugar feedstock.

First bioplastic-from-glycerol facility will be built in Italy T

he world’s first plant to produce bioplastic from glycerol is being built by Italian companies Bio-on and SECI Spa in Italy. The two companies signed an agreement on 22 December to build the plant, which will have capacity of 5,000 tonnes/year, expandable to 10,000 tonnes/year. SECI will invest €55M in the plant, which will use glycerol from biodiesel production to produce polyhydroxyalkanoates (PHAs) biopolymers. PHAs are bioplastics that can replace traditional polymers made from petrochemical hydrocarbons. They can be produced from other renewable feedstocks or agricultural waste including molasses and sugarcane and sugar beet syrups. Bioplastics have applications in general and food packaging, and the design, clothing and automotive sectors The new facility will be located at a site belonging to Eridania Sadam, a group which the two companies are working with to develop levulinic acid, another renewable platform chemical. “We are investing €4M in purchasing the license

for this new technology developed by Bio-on because this all-natural bioplastic represents a technological challenge that can contribute towards the growth of our group in the new ‘green’ chemistry industry,” said Eridania Sadam chairman Massimo Maccaferri. SECI is part of Gruppo Industriale Maccaferri holding, which operates in various business areas including environmental engineering, tobacco, food and agro-industry, construction and renewable energy. Bio-on has its own process to produce PHAs. Last September, it signed an agreement with US hedge fund Moore Capital to build the first Brazilian plant to produce PHA from sugarcane co-products, with a capacity of 10,000 tonnes/year (see Renewable Materials News, OFI November/December 2015). According to a recent report by market intelligence company Allied Market Research, the global market for bioplastics will grow at a compounded annual growth rate of 14.8% to become a US$30bn market by 2020. PLA was projected to be the fastest growing segment in the overall biodegradable plastics markets, in terms of revenue and volume.

DuPont and ADM announce new FDME process

uPont Industrial Biosciences and Archer Daniels Midland Company (ADM) announced a new breakthrough process on 19 January for producing furan dicarboxylic methyl ester (FDME) from fructose, with applications in packaging, engineering plastics, textiles and other industries. “This molecule is a gamechanging platform technology. It will enable cost-efficient production of a variety of 100% renewable, high-performance chemicals and polymers,” said DuPont global business director

for biomaterials Simon Herriot, FDME is a high-purity derivative of furandicarboxylic acid (FDCA), one of the 12 building blocks identified by the US Department of Energy that can be converted into a number of high-value, biobased chemicals or materials. It has not yet been available at commercial scale at a reasonable cost. In a press release, ADM said one of the first polymers under development utilising FDME is polytrimethylene furandicarboxylate (PTF), a novel polyester.

“PTF is a 100% renewable and recyclable polymer that substantially improves gasbarrier properties compared to other polyesters,” the press release said. “This makes PTF a great choice for customers in the beverage packaging industry looking to improve the shelf life of their products.” ADM and DuPont are now planning to build an integrated 60 tonnes/year demonstration plant in Decatur, Illinois, which will supply potential customers with FDME for testing and research.

Avantium to commercialise FDCA at new plant

utch renewable chemicals company Avantium signed an agreement with Japan’s Mitsui & Co Ltd last December to commercialise its bio-based furandicarboxylic acid (FDCA) and polyethylene furandicarboxylate (PEF) in Asia. Mitsui has the right to buy a sizeable volume of FDCA from the first commercial FDCA plant being constructed by Avantium. Avantium said further details on the plant’s capacity, time-line and location would be released in the first quarter of this year. Avantium’s technology enables a catalytic conversion of bio-based sugars to FDCA, a building block for new chemicals and plastics such as PEF polyester, which Avantium said had strong performance benefits over conventional polyethylene terephthalate (PET). These included a higher barrier to oxygen and CO2 for oxygen-sensitive goods such as food, beer and

health care products, and higher mechanical strength. The two companies will also work on launching and growing the market for other FDCA-based applications, such as co-polyesters. Avantium CEO Tom van Aken said: “This partnership with Mitsui is a unique opportunity for Avantium to unlock the growth opportunities in the Asian market, one of the fastest growing markets for packaging materials. It expands our PEF developments beyond bottles – as supported by The Coca-Cola Company, Danone and ALPLA – into the new application of thin PEF films.” Japan is a very attractive market for a high performance material like PEF as its packaging industry is highly innovative.” Mitsui is one of the largest corporate groups in the world with operations in iron and steel products; mineral and metal resources; infrastructure projects; chemicals; energy; and food products and services.

12 OFI – MARCH/APRIL 2016 www.oilsandfatsinternational.com

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D IARY OF EVEN TS

13-14 APRIL 2016

5-7 JUNE 2016

OFI India 2016 VENUE: Hyderabad International Convention Centre, India CONTACT: Mark Winthrop-Wallace, Sales Manager, OFI, UK. Tel: +44 1737 855114 E-mail: markww@quartzltd.com Website: www.ofievents.com/india

20-21 APRIL 2016 6th Annual European Algae Biomass Summit VENUE: Berlin, Germany CONTACT: Dimitri Pavlyk, Active Communications International (ACI), UK Tel: +44 20 31410627 E-mail: dpavlyk@acieu.net Website: www.wplgroup.com/aci/event/ european-algae-biomass-conference-europe

1-4 MAY 2016 107th AOCS Annual Meeting VENUE: Salt Lake City, Utah, USA CONTACT: AOCS Meetings Department, USA Tel: +1 217 6934821 E-mail: meetings@aocs.org Website: http://annualmeeting.aocs.org

29 MAY – 3 JUNE 2016 19th International Sunflower Conference VENUE: Balkan Congress Center, Edirne, Turkey CONTACT: International Sunflower Association (ISA) organising committee Tel: +90 284 226 1218 E-mail: info@isc2016.org Website: www.isc2016.org

1 JUNE 2016 International Sunflower Oil Quality Symposium VENUE: Balkan Congress Center, Edirne, Turkey CONTACT: International Sunflower Association (ISA) organising committee Tel: +90 284 226 1218 E-mail: info@isc2016.org Website: www.isc2016.org

1-4 JUNE 2016 16th EFPRA Congress VENUE: Costa Navarina Resort, Messinia, Greece CONTACT: KAFSIS Bio-Industries SA Tel: +30 210 89 60 100 E-mail: info@kafsis.com Website: www.efpramessinia2016.com

2-3 JUNE 2016 Veg Oils & Meals 2016 VENUE: Hilton Hotel, Rotterdam, Netherlands CONTACT: APK Inform, Ukraine Tel: +380 562 320795, +380 562 321595 E-mail: globoil@apk-inform.com Website: www.apk-inform.com/en/ conferences/vegoils2016/about

International Symposium on Lipid Oxidation and Antioxidants VENUE: University of Porto, Portugal CONTACT: Eurofedlipid, Germany Tel: +49 69/79 17-533 E-mail: info@eurofedlipid.org; Website: www.eurofedlipid.org/meetings/ porto2016/index.php

14 JUNE 2016 IGC Grains Conference 2016 VENUE: Jumeirah Carlton Tower Hotel, London, UK CONTACT: International Grains Council, UK E-mail: conf@igc.int Website: www.igc.int/en/conference/ confhome.aspx

19-24 JUNE 2016 FOFSA Middle Managers Course VENUE: Royal Holloway, University of London, Egham, Surrey, UK CONTACT: Anna Baran, FOSFA International, UK. Tel: +44 20 72835511 E-mail: anna.baran@fosfa.org Website: www.fosfa.org/events/ middle-managers-course/

21-22 JUNE 2016 Oleofuels 2016 VENUE: Exhibition Centre Liverpool, UK CONTACT: Stergios Zacharakis, Active Communications International (ACI), UK Tel: +44 20 3141 0609 E-mail: szacharakis@acieu.net Website: www.wplgroup.com/aci/event/ oleofuels/

26-29 JUNE 2016 6th International Conference on Algal Biomass, Biofuels & Bioproducts VENUE: San Diego, USA CONTACT: Elsevier Conferences, UK Tel: +44 1865 843337 E-mail: n.clear@elsevier.com Website: www.algalbbb.com

3-8 JULY 2016 22nd International Symposium on Plant Lipids VENUE: Paulinerkirche, Göttingen, Germany CONTACT: Eurofedlipid, Germany Tel: +49 69/79 17533 E-mail: info@eurofedlipid.org Website: www.eurofedlipid.org/meetings/ goettingen2016/index.php

4-9 SEPTEMBER 2016 FOFSA Basic Introductory Course VENUE: Royal Holloway, University of London, Egham, Surrey, UK

CONTACT: Anna Baran, FOSFA International, UK. Tel: +44 20 72835511 E-mail: anna.baran@fosfa.org Website: www.fosfa.org/events/ middle-managers-course/

5-9 SEPTEMBER 2016 12th Congress of the International Society for the Study of Fatty Acids and Lipids (ISSFAL) VENUE: Stellenbosch University, Cape Town, South Africa CONTACT: ISSFAL Congress Organiser Tel: +1 202 5244000 Fax: + 1 202 8333636 E-mail: admin@issfal.org Website: www.issfalcongress.com

6-8 SEPTEMBER 2016 3rd High Oleic Oils Congress VENUE: Toulouse, France CONTACT: FAT & Associés, France Tel: +33 567 339206; Fax: +33 567 339203 Website: http://higholeicmarket.com/ hoc-2016

18-21 SEPTEMBER 2016 14th Eurofedlipid Congress VENUE: International Convention Center (ICC) Ghent, Belgium CONTACT: Eurofedlipid, Germany Tel: +49 69 79 17533 Fax: +49 69 79 17564 E-mail: info@eurofedlipid.org Website: www.eurofedlipid.org/meetings/ ghent2016/

20-22 SEPTEMBER 2016 9th Biofuels International Conference VENUE: Ghent, Belgium CONTACT: Tracy Whitehead, Biofuels International, UK Tel: +44 20 8687 4138 E-mail: tracy@biofuels-news.com Website: http://biofuels-news.com/ conference/

19-21 OCTOBER 2016 OFIC 2016 VENUE: Hotel Istana, Kuala Lumpur, Malaysia CONTACT: OFIC 2016 Secretariat, c/o Malaysian Oil Scientists’ and Technologists’ Association (MOSTA), Malaysia. Tel: +603 7118 2062/2064 E-mail: mosta.secretariat@gmail.com Website: www.mosta.org.my

8-11 NOVEMBER 2016 18th Annual FO Lichts World Ethanol & Biofuels VENUE: InterContinental Budapest CONTACT: Informa Agra Customer Services, UK Tel: +44 20 3377 3658 E-mail: registrations@agra-net.com Website: www.worldethanolandbiofuel.com

14 OFI – MARCH/APRIL 2016 www.oilsandfatsinternational.com

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DI ARY O F E V E NT S

www.dsengineers.com

19th sunflower conference to be held in Edirne, Turkey T

he 19th International Sunflower Conference will be held on 29 May–3 June 2016 at the Balkan Congress Center in Trakya University, Edirne, Turkey. The event is being organised by the International Sunflower Association (ISA) and Trakya University. “The conference will cover broad scientific subjects, providing great opportunity for the sunflower community to present their work that can be of great value for global sunflower production and trade,” said the organisers. “It will bring science, research and private communities together in a friendly environment, sharing their knowledge and gaining benefit from each other.” Plenary sessions with oral and poster presentations will be held on 30 May–1 June covering subjects including production, agronomy, breeding and genetics, genomics, genetic resources, physiology, biology, biotechnology, plant protection, trade and economy.

A technical tour of the research fields of Trakya Agricultural Research Institute will be held in the morning of 2 June, and an Edirne city excursion in the afternoon. A sightseeing post conference tour to Istanbul, including a Bosphorus yacht tour and dinner, will be held on 3 June. In addition, an International Sunflower Oil Quality Symposium will be held on 1 June at the same venue. The symposium will cover oil quality, processing, oil industry, marketing and trade. Edirne is a border city with Greece and Bulgaria, located 220km from Istanbul airport and with comfortable intercity bus services between Istanbul Bus Terminal and Edirne. For full event details, contact: International Sunflower Association (ISA) organising committee Tel: +90 284 226 1218 E-mail: info@isc2016.org Website: www.isc2016.org

OFI India 2016 13-14 April 2016 Hyderabad International Convention Centre

www.ofievents.com/india Featuring a two-day exhibition, a free two-day Business Conference; a two-day Smart Short Course on oilseed and oil processing technology; and a free tour of the Council of Scientific and Industrial Research – Indian Institute of Chemical Technology (CSIR-IICT). To register, go to: www.ofievents.com/india/register

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Reliability through Experience

15/03/2016 09:26

I NTE RN ATION AL M ARKET REVIEW

rices across the oilseed complex have held up better than might have been expected a few months ago amid this season’s record large soyabean supplies. Values have been propped by relatively tighter outlooks and more stable prices for palm, sunflower and rapeseed oils, some trimming of excess global oilseed stock estimates and some Latin American weather issues. Although the seasonal weight of new South American crop supplies could yet push markets lower across the board, some seller caution may be demanded as the focus turns increasingly to 2016 crop prospects in the Northern Hemisphere. The US Department of Agriculture (USDA)’s first guess at 2016 domestic soyabean production came in its annual Outlook Forum, which in February offered a planting figure well below trade forecasts and about 80,900ha under last year’s 82.7M acres (33.5M ha). The latter number had also been revised down in January from 83.2M acres (33.6Mha), resulting in a 2015 crop trimmed to 106.95M tonnes – almost identical to the 2014 harvest. Assuming a yield of 46.7 bushels/acre, the 2016 number points to the next US crop reaching around 103M tonnes – still one of the biggest ever. Even that 5M tonne on-year drop would be more than offset by next season’s expected larger starting stock of 12.5M tonnes – 7.3M tonnes more than the year before. Supplies might be even larger than this if trade guesses are right that US farmers will sow closer to 83.3M acres (33.7M ha). The USDA was due to issue a more reliable forecast at the end of March based on a survey of farmers’ planting intentions, rather than its economists’ best guesses. Some pundits suggest the retreat of El Niño might mean a drier US growing season ahead, and possibly lower yields. But other long-range weather forecasts are looking at the opposite – a mild, moist, crop-friendly June/ July. The US 2015 crop is meanwhile being used up much as forecast earlier. Exports are catching up after their slow start but crush, after a stronger beginning, has recently lagged behind the needed seasonal pace, resulting in the USDA trimming its forecast and adding about 300,000 tonnes more to stocks. Chicago Board of Trade (CBOT) bulls have been cheered by top importer China riding out the recent welter of negative economic news and still absorbing vast amounts of soya from the world market – althogh switching more of its purchases to cheaper South American suppliers. The USDA has been able to boost its Chinese import figure to a new record 82M tonnes while state trader COFCO’s estimate has gone up to 83M tonnes. It still means trade will only grow by about 4-5M tonnes against an 8M tonnes gain the previous year and 10.5M tonnes the year before that but it is heading in the right direction.

Focus on new crops amid tighter outlook FIGURE 1: WORLD SOYA OIL CONSUMPTION – GROWTH ACCELERATING

The steep expansion in China’s crush has for many years been dependent on imports and China is still accounting for two-thirds of world growth in soya trade. Some wet weather hold-ups to the Brazilian harvest, flooding in parts of Argentina and the drier than expected start to the Latin American season (in a typically wetter El Niño year) have probably helped maintain good demand for US soyabeans from China and others, as insurance against the sort of shipping problems the Latin Amerian suppliers have experienced in recent past seasons. US trade has also been helped by a firming of the Brazilian currency in late February/early March and by threats of a truck strike there.

Big Brazil and Argentine exports Brazil’s harvest estimates have been slipping in the past few weeks but were creeping back up as OFI went to press, some now exceeding the USDA’s forecast 100M tonnes (local analyst Agroconsult was at 101.6M tonnes as OFI went to press). Big supplies are expected to boost Brazilian exports by over 7M tonnes to a new record 58M tonnes. Just four years ago, the figure was only 36M tonnes. Argentina’s crop estimates continue to hover around the 58.5M tonne level, down from last year’s 61.4M tonnes but, like Brazil, is still huge by historical comparison. On top of that, the two countries started this new season with nearly 51M tonnes of stocks – over 9M tonnes more than last year (which were already far above normal levels). Although Argentina will export at least 1M tonnes more soyabeans in 2015/16, it is expected to put far more of the extra supplies into domestic crush, expanding that from 40.2M tonnes to 45.7M tonnes

CHART: JOHN BUCKLEY

Despite record soyabean supplies, prices across the oilseed complex have held up, amid tighter outlooks and more stables prices for palm, sunflower and rapeseed oils. John Buckley writes

against just 34M tonnes at the start of this decade. That is expected to bump up its soyabean oil exports to a new record 5.9M tonnes – half of global trade in the oil and accounting for about three-quarters of the growth in world soya oil exports. In total, world soyabean oil consumption is now expected to grow by about 3.4M tonnes or almost 7% versus the average 6% of recent years. It is also far ahead of the growth rate for world total vegetable oil consumption of 3.8% (up from the previous year’s 2.8%). As usual, growth of vegetable oil demand is being led by India, then China, followed by Indonesia (if its ambitious biodiesel plans are fully carried out). About a third of the growth in world consumption will be down to direct imports of vegetable oil, and some of it (especially within China) down to expanding crush of imported oilseeds. The smallest share of consumption growth will come from oilseed and oil producing countries’ own indigenous oilbearing crops (dominated by Indonesia). The big role played by imports in feeding world vegetable oil demand growth continues to leave consumers exposed to currency volatility, not least the strong US dollar in which most commodities are traded. Fortunately for many, the meteoric rise in the dollar versus other major currencies over the past year has been countered, to some extent, by the weakness in vegetable oil prices.

Mixed signals on palm oil supply Palm oil retains its ability to inject a more bullish element into the market place – if the lagged effect of the El Niño climate phenomenon curbs Asian production in the first half of 2016 and producers’ plans to divert more oil to biodiesel succeed. Opinions continue to diverge on the El Niño impact. Origin industry and plantation sources v

16 OFI – MARCH/APRIL 2016 www.oilsandfatsinternational.com

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FIGURE 2: WORLD PALM OIL CONSUMPTION WITH POSSIBLE RANGE OF 2016/17

v paint a far more bullish picture – very slow to no growth or even the first reversal in production for some years for 2016. The official January data from the Malaysian Palm Oil Board certainly showed a steeper than usual seasonal slide of 19.3% on the month but was only down by 2.7% versus January 2015. Producer sources such as Felda and Golden Agri Resources have been looking for possible annual declines of 5-10%. Others suggest that Malaysian production will be down in the first half of 2016, then revive in the second half into the peak fruiting period, with Indonesia following a similar pattern. Along with the biodiesel plans, this could reduce surplus stocks of palm oil considerably from the record levels seen late last year. In seasonal (October/September) terms, the USDA is still forecasting a modest 0.5% (300,000 tonnes) increase in global palm oil output for 2015/16, but a far steeper 6% (3.5M tonnes) rise in consumption, reducing stocks by about 1.8M tonnes to a five-year low of 6.6M tonnes. However, that ‘bottom line’ is a fairly notional figure amalgamated for the seasonal picture. The markets will keep a closer eye on Malaysian end-month stocks, which are expected to drop to perhaps 1.6/1.7M tonnes at some stage in mid2016. The Malaysian Bursa futures market has drawn considerable support from the tighter supply forecasts, reaching near two-year highs at one stage recently as the weakening ringgit currency lent additional strength. In dollar terms, futures are more than a third above the lows reached in mid2015. The main restraint on palm oil continues to come from disappointing export trade as buyers switch more demand to soya oil, in abundant supply and priced more competitively than usual versus its lauric oil rival. Malaysian January exports dropped 14% on the month and February is expected to show a similar slide. Second largest importer China’s halving of imports from Malaysia has been a key factor and a concern. Palm oil supplying countries are also getting jittery about plans to levy higher import taxes on the oil in France, Russia and possibly other countries. A French tax, ostensibly in response to the longstanding sustainability and environmental issues surrounding palm production, could rise to as much as 800% by the end of this decade. On its own, a dent in French demand might not

much affect the palm exporters’ overall balances but if other EU countries follow suit, it could be very damaging to trade.

Cheaper rapeseed and oil The Canadian market has led a cheaper trend in rapeseed/canola seed and oil prices since my last review, falling to 10-month lows and, in the process, shedding about 17.5% of its value. The weaker move was initially set in motion by the larger than expected official Canadian harvest estimate last December (despite many traders continuing to think this too optimistic) and by Statistics Canada then reporting plentiful end-year supplies. More recently, the emphasis has switched to two conflicting factors – the faster than expected disappearance of the crop into exports and domestic crush, and top importer China’s decision to tighten its quality specs to levels that Canada shippers think may be tough to meet and likely to result in contraction in this trade. China is far and away the largest importer of rapeseed and its products. The last USDA estimates had it consuming 7.65M tonnes of rapeseed oil this season, up from 7.25M tonnes in 2014/15 and 6.75M tonnes the season before – 27-29% of total global use of the oil. About a quarter of China’s rapeseed crush of 18.7M tonnes is imported seed, mainly from Canada. It also imports an average 800,000 tonnes of rapeseed oil annually. Canadian shippers are concerned that China wanting a maximum 1% of dockage or admixture (foreign matter, thought to be chiefly aimed at ‘blackleg’ mould) will slow trade markedly when these terms are introduced in April (see ‘Tougher canola import standard’, p4). Some sources suggest this is less of a justified attempt to quarantine China’s own rapeseed crop from a yield-reducing disease than a ruse to allow its authorities to start drawing down their own huge strategic stocks of rapeseed oil, recently estimated by the USDA to have reached around 2.88M tonnes. The impact on the market has been muted somewhat by the fact that Canada’s crush and exports have been going strong until now. For the season to date, crush was recently estimated by Canadian Oilseed Processors Assocation (COPA) to have risen by 12.5% and exports by as much as 20%. That contrasts with the USDA forecasting crush to rise 10% and exports actually going down by 2.3%. As OFI went to press, the Canadian trade was

CHART: JOHN BUCKLEY

I NT E RN ATION AL M ARKET REVIEW

waiting to see how the China factor would pan out in practice and was gearing up for an end-of-March stock count that would shed more light on total ‘disappearance.’ On the plus side, some traders think there will be more opportunities to sell extra rapeseed/oil to India, where local oilseed production may see a bigger than usual shortfall after a sub-par monsoon. It is also getting near planting time for the next Canadian (mainly spring-sown) crop for which the government has offered a preliminary estimate of 4.2% or 700,000 tonnes below the 17.2M tonnes supposedly harvested in 2015. Unusually mild weather has recently caused snowmelt and raised chances for earlier-than-usual fieldwork. In the EU, the crop outlook for 2016 remains much as OFI reported in December, at best similar, maybe a little smaller than last year’s 21.4M tonnes (although one forecaster, MDA Cropcast, has it as low as 20.4M tonnes). The European Commission sees EU 2016/17 crush possibly dropping by 1.4M tonnes to 23.9M tonnes, which would mean either fewer imports or less tight stocks. That would be useful with less rapeseed available for export next season from the Ukraine, where the crop could be down 30% or more after dry sowing curbed acreage and left crops more than usual exposed to winter losses. The USDA earlier projected that EU rapeseed oil consumption would drop slightly in 2015/16 for the first time in some years. Along with the drop in Canadian prices, this may have helped European crude rapeseed oil offers to come down a bit from their December highs of around €760/tonne to about €675 recently. The collapse in crude rapeseed oil prices has also helped constrain the oil with its heavy demand from the biodiesel sector – although a recent rally in the energy markets has reduced that pressure somewhat.

Sunflower oil prices ease Sunflower oil prices have eased in dollar terms during the calendar year to date, reflecting the up-rating of last year’s CIS crop results and more recently, reports of slackening demand. Ukrainian exports have done well so far this season, with January shipments reaching a record for the month at 340,000 tonnes and the season to date clocking up 1.807M tonnes, also a record. More recently, traders there have encountered less demand than usual from India (so far taking 31% of sales) and China. There has have also been reports of less demand for high oleic sunflower oil, reducing its cost to par versus standard varieties. Despite that, early pointers suggest sunflowerseed will take the lion’s share of the extra Ukrainian cropland freed up by failed winter wheat crops. Last year, Ukraine, by far the world’s main source of sunflowerseed and oil exports, sowed 5.4M ha and produced 11.3M tonnes versus the previous year’s 10.2M tonnes. In total, it is expected to ship 4.1M tonnes in seed and 3.4M tonnes in oil in the current season. Russian sunflower oil exports for the season to date have meanwhile drifted down by about 5% on the year at 498,000 tonnes. Its agriculture ministry in early March was expecting a dip in sunflower planted area. w John Buckley is OFI’s market corrrespondent

18 OFI – MARCH/APRIL 2016 www.oilsandfatsinternational.com

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OLEOC H EM IC ALS

PHOTO: HXDYL/DOLLARPHOTOCLUB

products that enable the reuse of asphalt, chewing gum, drink stabilisers and more. Arizona Chemical announced last December that it is beginning construction on a 100% recycled asphalt bike lane in the Netherlands. A biobased rejuvenator for recycled asphalt was derived from CTO, and regenerated the used bitumen in the asphalt mix. TOFA is primarily used to produce intermediates such as alkyd resins, dimer acids and fatty acid esters – alkyd resins being the most in-demand intermediate. End-use industries for TOFA include soaps and detergents, paints and coatings, plastic additives, fuel additives, lubricants, metal working fluids and adhesives. The largest markets in terms of volume are soaps, detergents and coatings.

Tall oil fatty acid (TOFA)

Product or waste?

A by-product of paper production, tall oil has traditionally been used in the biochemical industry. Recent changes in EU legislation prompting its use as a biofuel has sparked fierce debate over this finite resource. Rose Hales writes

s the EU’s latest renewable energy targets come into force, biofuel companies are on the lookout for new feedstocks to meet the requirements. In the latest indirect land use change (ILUC) Directive the EU lists, among other things, tall oil as a specially protected energy feedstock. Although tall oil may not be universally well known, it has essential applications in the biochemical industry. Biochemical companies have reacted angrily to the EU’s decision to include tall oil as a protected energy feedstock, arguing that it is a scare resource and a product not just waste.

Tall oil production The kraft pulping process of converting wood into wood pulp produces three major by-products: lignin, hemicellulose and tall oil. Lignin is already prized as a biofuel feedstock or burned directly as a fuel by the mill, and hemicellulose has applications in food packaging, but what happens to the third by-product, tall oil? Tall oil or crude tall oil (CTO) is mainly a byproduct of the pulping of coniferous trees. The cooking liquid used to convert the esters and carboxylic acids into lignin, rosin and fatty acids

is concentrated and the soaps that begin to float are skimmed off. The collected soaps are allowed to settle to release any further liquid, and finally the soap is heated and acidified resulting in the production of crude tall oil. Around 30-50kg/tonne of tall oil is produced from the pulping process. Tall oil quality is ascertained through the oil’s acid number. A higher acid number means a higher quality oil. When the tall oil has been produced from pure pines the acid number falls between 160 and 165. Less pure sources yield a tall oil with an acid number between 125 and 135. Further conversion of CTO results in tall oil fatty acid (TOFA). TOFA is obtained by fractional distillation of tall oil rosin. It is a rich source of oleic and linoleic acid, together comprising 85% of total fatty acid composition. There is a high demand for TOFA because of the high fatty acid content. Additionally tall oil pitch (TOP) is another derived substance, a non-volatile fraction separated from crude tall oil during vacuum distillation.

Traditional applications The biochemical industry currently refines and upgrades CTO to use as substitutes for antibiotics in animal feed, in tyres, paints, inks, adhesives,

TOFA is obtained from the fractional distillation of CTO, according to a report titled ‘Tall Oil Fatty Acid Market by Applications for Soaps & Detergents, Coatings, Lubricants, Plastics, Fuel Additives, Metal Working Fluids, and Other End-user Industries – Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014-2022’, TOFA accounts for 15-20% of the yield from the process. TOFA is one of the primary varieties of natural fatty acids in the western hemisphere. Other sources of natural fatty acids include vegetable oils such as safflower oil fatty acids, olive oil fatty acid and peanut oil fatty acid. The report says that vegetable oil fatty acids are priced considerably higher than TOFA, which is why they are far less likely to be used in industrial applications. According to the report, the major producers as well as consumers of TOFA are North America and Europe, which account for over 75% of the global market. These two regions dominate the industry due to an abundant availability of high quality raw materials and high production capacity of the pulp and paper industries. It is projected that TOFA demand in North America and Europe will remain stable in the period between 2014 and 2022. The report says that the market is highly concentrated, with five companies controlling the majority of the market. These companies are Arizona Chemical Company LLC, MeadWestvaco Corporation and Georgia Pacific LLC based in the USA; Forchem Oy based in Finland; and Harima Chemicals Group Inc based in Japan.

Product or residue? Recent changes in Europe of the classification of CTO and its use in the biofuel industry have sparked fierce debate. The debate is mainly over the difference between the term ‘product’ and the term ‘residue’. The CEOs of biochemical giants Arizona Chemical, Respol Resins and Forchem published a release in March last year in which they expressed their concerns that the EU’s legislation on biofuel policy, chiefly the indirect land use change (ILUC) Directive, gives special protection to CTO as an energy feedstock. In the statement the companies say, “we are seriously concerned that the Parliament’s earlier recognition of the equal importance of the green bio-based chemical industry, next to the biofuel industry, is no longer reflected in the text”. By including CTO in Annex IX of the ILUC Directive, v

19 OFI – MARCH/APRIL 2016 www.oilsandfatsinternational.com

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v the companies maintain that bio-based chemical producers will be put in “a severely disadvantageous position on the market”. It is explained that the directive must ensure that legally correct classifications of materials are used and the companies say that CTO is a product rather than a residue, “The fact that tall oil is registered under the REACH Regulation further confirms that tall oil is not a waste or a residue, but indeed a product.” In addition the statement says that the status of tall oil was already considered by the European Commission (EC) and it was concluded that tall oil is indeed a product – “materials that are wastes and residues cannot be registered under the REACH Regulation”. See Figure 1 (right), which explains how a substance is given the status as a product or a residue.

Is the substance intentionally produced? E.g. is production the result of a technical choice?

YES

A residue

Is there certainty of an economically advantageous use of the substance?

Arizona Chemical, Respol Resins and Forchem’s statement estimates that there is “theoretically about 2M tonnes of CTO, with the right quality, available in the world”. They therefore describe it as a “scarce resource”. The volume produced is completely dependent on the production of paper and, for this reason, quantity will always be limited. They said that if all 2M tonnes of CTO available in the world were used for biofuel production and consumed in the EU, it would still only contribute 0.4% of the EU’s 2020 target for 10% of the transport sector’s energy to come from renewable sources. Regardless of the statement released by Arizona Chemical, Respol Resins and Forchem, the EU’s most recent ILUC Directive (date) still includes tall oil in Annex IX. Many still consider this to be both illegal and scientifically wrong.

CTO for biofuel Various sources including Real Green Gold and EuroActiv point the finger at the governments of Sweden and Finland who were reportedly convinced by fuel companies to manipulate their national legislation for renewables and reclassify CTO as a residue. Thanks to this classification, fuel companies in the two countries can avoid sustainability criteria in the EU’s renewable energy legislation if they use CTO to produce biofuel, Kees Verhaar, CEO of Arizon Chemical told The Timber Network. CTO is therefore a very attractive feedstock in Finland and Sweden. Risto Näsi, CEO of Forchem added, “CTO is a scarce product… In the EU, there

Will the substance be used or sold on economically advantageous terms, in a subsequent process without prior processing Or Does the manufacturer wish to discard the DISCARD substance?

YES A product

A scarce resource

PHOTO: PSAMTIK/ DOLLARPHOTOCLUB

FIGURE 1: FLOWCHART FOR THE CLASSIFICATION OF MATERIALS

A residue

USE OR SELL A product

Source: C C-235/02 Saetti and Frediani [2004] ECR 1-1005, paragraphs 34, 45 and 47, and Case C-188/07 Commune de Mesquer [2008] ECR 1-4501, paragraph 42ff

FOLLOWING THE CRITERIA SET OUT IN THE CASE LAW OF THE EU COURT OF JUSTICE

is a shortage of CTO and the refiners have to source it from around the world. There is no net gain for society to direct it, by artificial demand, from lucrative biochemical business to state-aided biofuels.” In January 2015, UPM Biofuels announced that commercial production had started at the world’s first wood-based renewable diesel biorefinery in Lappeenranta, Finland. The Kaukas mill site biorefinery produces 120M litres/year of renewable UPM BioVerno diesel, which is produced from crude tall oil sourced from forest product company UPM’s own pulp mills in Finland. UPM said in 2012 that it planned to invest €150M in the project. Petri Kukkonen, UPM’s vice president for biofuels told Biomass Magazine in 2012 that CTO makes an attractive feedstock for biofuel production because such significant quantities are on hand through its forestry company. By refining crude tall oil, the value of pulp wood is improved without increasing logging. Kukkonen also said that UPM’s technology is innovative and yields are higher than with any other existing processes using CTO. The fuel produced at the Kaukas mill site is called UPM BioVerno and can be used to reduce greenhouse gas emissions by up to 80%, the company says. The process of producing renewable diesel from CTO has several phases, UPM says. Pre-treating the CTO makes up the majority of the steps, including hydrotreatment, recycle gas purification and fractionation. CTO contains a large amount of impurities, solid particles, salts and metals that need to be removed before the CTO is introduced to the hydrogenation reactor. Furthermore in December 2015, a new biofuel plant was opened at the Port of Gothenburg belonging to Swedish fuel company Preem. Preem’s new plant produced renewable fuels based on a variety of raw materials, including tall oil, according to Port News. Port of Gothenburg says the new plant will allow Preem to double its renewable fuel production to 200,000 tonnes/year. A total of 335M kronor was invested in the refinery. Port News also reported that the low-temperature characteristics of the tall oil-based diesel will be improved – the proportion of renewable fuel in

the tanks will therefore be able to remain high throughout the year.

Other industry developments Neste Jacobs announced in September 2015 that it had been selected by Forchem to optimise the production of its tall oil distillation plant in Rauma, Finland. Neste Jacobs, a technology, engineering and project management company, will optimise production using its state of the art NAPCON Controller, the goal of which is to increase the throughput of tall oil rosin and fatty acids by 5-10%. Neste says the installation should be completed by July or August this year and will also increase the energy efficiency of the production. In October 2015 Pöyry was awarded an EPC agreement by Metsä Fibre to deliver a tall oil plant for a bioproduct mill in Äänekoski, Finland, Oil and Gas Technology reported. Under the agreement Pöyry will design, procure and deliver the main and auxiliary equipment over a period of approximately two years, beginning in October last year. Oil and Gas Technology says the plant will be the largest single-line plant delivered by Pöyry, with a capacity of 10 tonnes/hour of tall oil. The company has already delivered more than 20 plants based on its patented HDS technology in Canada, China, Europe and the USA.

Biochemical or biofuel? As tall oil is a scarce resource, with only 2M tonnes currently available worldwide, competition is increasing between companies with varying purposes for the paper process by-product. It has for years been converted into tall oil fatty acids and rosins and used to produce various biochemicals, but changes in EU legislation mean fuel companies are trying to reclassify tall oil as a residue rather than a product and therefore justify its use as a renewable biofuel feedstock. In particular in Sweden and Finland, biofuel companies are opening refineries that use CTO to produce biodiesel. Biochemical companies are fighting the changes, arguing that such a reclassification is both incorrect w and unlawful. Rose Hales is OFI’s editorial assistant

20 OFI – MARCH/APRIL 2016 www.oilsandfatsinternational.com

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15/03/2016 22:21

OLIVE OIL

Xylella fastidiosa – a dangerous game Since it was first discovered in Italy in summer 2013, the Xylella fastidiosa bacteria has spread across Italy’s ancient and most productive olive growing region. If it is not controlled, it threatens to spread even further, but the Italian response to the emergency is not completely in line with the EU’s. Rose Hales writes

he Xylella fastidiosa (Xf) bacterium first discovered on a tree in southern Italy in 2013 threatens to wipe out ancient and important olive groves in Italy, Spain and France and could cause significant damage to Europe’s valuable olive oil market. The bacterium is hosted by more than 150 plant species around the world. Although it is not always destructive, it has the potential to be deadly when it infects the olive tree, causeing Olive Quick Decline Syndrome (OQDS)

Background Xf was first spotted in Europe on 21 October 2013 when a case was confirmed in Apulia, Italy. The bacterium has since been confirmed by several independent research groups elsewhere in the region. According to information provided by the University of California, Berkeley (UCB), although it is not known in what year the disease first appeared or was introduced, it is scientifically speculated that the introduction occurred 10 or more years previously due to the size of the affected area. The strain of Xf found in Europe has been dubbed CoDiRo (Complesso del Disseccamento Rapido dell’Olivo) because it is linked to the emergence of OQDS in the region. Research conducted in Italy has revealed that this particular strain was only

Olive oil Xf muyang.indd 1

previously found in Costa Rica, making it probable that it arrived via the import of infected plant material from Central America, according to UCB scientists. Olive is not the only species associated with Xf, although it is the main plant species affected in Italy. Other host species include almond, oleander, cherry and several other perennial ornamentals, UCB professors say. It is spread exclusively through insect vectors, making it difficult to control. Researchers in California conducted a study that indicated that Xf does not cause disease in olive, however the strains of Xf used in the study were different to the strain found in Italy, which belongs to a different subspecies. Scientists in Italy are still working to prove that CoDiRo is causing olive disease in the country. Olive Quick Decline Syndrome causes leafscorch and die-back. Symptoms begin to appear very quickly after infection and the olive tree dies quickly, severe pruning only worsens the situation and speeds up the decline.

Spread outside Italy The bacterium has devastated tens of thousands of acres of olive groves in the Apulia region of Italy, Olive Oil Times reported. It has also been confirmed in France. This is on mainland France in the region of Provence-Alpes-

Côte d’Azur and on the French island of Corsica, where the first case was identified in July 2015. By January 2016, a total of 233 cases had been confirmed on the island, Olive Oil Times reported, and 40% of the island had been demarcated as a buffer zone. A buffer zone of a radius of 10km must be maintained around each infected area. The increasing spread of the bacterium on Corsica is causing concern. In France, the infection has been identified as a sub-species of Xf called multiplex. This sub-species is not harmful to olive trees, according to an Olive Oil Times report in November. The European Commission (EC) has introduced new measures to attempt to stop the spread of Xf inside Italy and into other European countries. These new measures were introduced on 18 May 2015, and tighten conditions for import and movement within the EU of plants susceptible to Xf. The list of plants that are regulated has been expanded to 160 species and 27 genera. According to the EC, imports from infected non-EU countries of the specified plants are only possible if the plants are grown under protected conditions and, prior to their export and on entry into the EU, they are inspected, sampled and tested

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OLIVE OIL

the disease on this incredibly important olive oil producing region. Olive trees grown in Puglia are generally directed towards producing oil, he says. The region produces 250,000 tonnes/year of olive oil, 40% of this is extra virgin olive oil. This region accounts for 13% of world olive production and is also the world leader in terms of volume. It is a very important region for the production of olive oil and the area worst affected by Xf in Italy. The Italian Council of Ministers declared a state of emergency on 10 February 2015 because of the spread of Xf in Puglia.

What is being done in Italy?

for the absence of the bacterium. The conditions for these imported plants to move within the EU are strictly applied. The import from pest-free countries or pest-free areas is possible only if the Commission has officially been previously notified of the health status of these areas. Imports of coffea plants for planting from Honduras or Costa Rica are prohibited.

An important oil-producing region According to an Olive Oil Times report in December 2015, olive oil production in the EU decreased by 42% in the 2015 season compared to the previous season. Production was assessed to be 1.4M tonnes in the EU overall. Spain was the highest producer with 841,200 tonnes. Tunisia was second highest at 340,000 tonnes, followed by Greece (300,000 tonnes) and Italy (220,000 tonnes). Puglia, the southern region in Italy’s heel most affected by the current crisis, has over 60M trees and is the region with the greatest number of live olive trees in the world. In an interview with CIHEAM in June 2015, commissioner for the Xf emergency in Puglia, General Giuseppe Silletti, discussed the effect of

The first EU emergency measures to prevent the spread of Xf were adopted on 13 February 2014 – Decision 2014/87/EU. An audit was carried out in Italy to evaluate the situation and it was confirmed that Xf was spreading rapidly in the Lecce region of southern Italy. On 23 July 2014, more detailed emergency measures were adopted – Decision 2014/497/EU was created to prevent both the introduction and the spread of the bacterium. Silletti implemented an action plan in response to the crisis, calling for the selective uprooting of infected trees. The EU measures recommend destroying all infected olive trees and all trees within a 100m radius. Some 300,000ha of olive groves have been devastated in Puglia’s Salento region, Olive Oil Times said, and more than 1,000 trees had already been destroyed by October last year. At which point the destruction was halted by a court-ordered suspension, which set a new precedent for Italy’s response to the crisis.

Disobedience in Italy On 11 December last year, the EU said that it was not sufficiently reassured that Italy was doing what it should to eradicate the spread of Xf. A letter was sent from the EC to Italy as the first step of an infraction procedure, according to Enrico Brivio, the EC spokesman for health and food safety, who said that “Italy is not implementing all its commitments on eradication, containment and surveillance of Xylella”. Olive Oil Times said containment measures were approved by Brussels in May last year and Italy only began to implement the measures in late June. Giuseppe Silletti presented a second plan in September demanding about 3,000 olive trees in

Lecce and Brindisi be eradicated. In Italy, the disease has hit a very sensitive and historic olive oil producing area. Many olive trees in Puglia are more than a century old and despite the risks and dangers, olive growers and activists want to avoid the destruction of the trees. Authorities are focusing in particular on whether or not the disease infecting the trees is Xf, and if eradication is the best solution to the outbreak. In October, it was reported by Olive Oil Times that 21 olive growers had filed a complaint in which they demanded proof that their trees were infected by Xf. The Italian regional court suspended the destruction of trees temporarily to allow time for further tests to determine that it is definitely Xf that is bringing down the trees. The EC says it waited a reasonable period of time, but its wishes were again disregarded, prompting the sending of the letter. According to an Olive Oil Times report, by 11 December last year, only 1,600 of the planned 3,000 olive trees had been eradicated.

Is it or is it not Xf? An Associated Press report published on 19 December last year said that Italian prosecutors in Lecce claim a rapid drying-out that is afflicting some olive trees is not being caused by Xf. Apparently some dried-out trees show no signs of the bacterium, while others that do not appear to be dried-out are infected. They are therefore arguing that just because an olive tree has turned dry, this is not a reason to cut them down. Evidence or scientific backing of such claims could not be found, and countries such as France reacted to the claims by announcing a boycott of vegetables from the Puglia region. Subsequently Italian authorities ordered that measures put in place to contain the spread should be halted immediately. Not enough is currently understood about the disease to justify the extreme measures, public prosecutors said. According to Phys.org, Italian prosecutors claim the EU’s facts are “inaccurate” and there is no link between Xf and the dying trees, so eradication measures are only making things worse. This was just over a week after the EC opened an infringement procedure over Italy’s failure to implement containment measures quickly enough. With all measures now blocked completely in Italy, EC spokesman Enrico Brivio told Nature he did not know what would happen. “The emergency measures are necessary and need v

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PHOTO: POMOGAYEV/DOLLARPHOTOCLUB

FIGURE 1: AREAS DEFINED FOR XYLELLA FASTIDIOSA (EU DECISION NO.54, 13 MARCH 2015) Italy: Puglia region

France: Provence-AlpesFrance: Corsica Côte d’Azur v

to be implemented”, he said. “Xylella in all its strains is the most dangerous pathogen for plants, and epidemics have huge economic impact.”

Scientists under investigation In a new twist to the situation, Nature published a report in late December last year that revealed scientists in Italy are being investigated, accused of spreading disease causing olive tree deaths. A new order to halt tree culling was subsequently issued. Nature said nine scientists are being investigated for a possible role in enabling the outbreak of Xf. The formal investigation was announced at a press conference on 18 December. Head of the Bari unit of Italy’s Institute for Sustainable Plant Protector, Donato Boscia, who is one of the scientists accused, responded to the accusations by calling them “crazy”. Details of the evidence held against the scientists have not been made public. According to the Nature report, there are concerns that the strain of Xf may have been imported from California for a training workshop at the Mediterranean Agronomic Institute of Bari in 2010 and then escaped into the environment from field experiments. Scientists have previously said that the Xf strain under investigation was not used in the workshop, the report said. Furthermore the strain detected in Italy has only previously been found in Costa Rica.

Treatment and monitoring Phages have been used by scientists to eradicate a disease caused by Xf in grapevines, Olive Oil Times reported in September last year, and there are hopes that a similar approach could be used to treat and prevent Xf in olive trees. Four phages, which are viruses of bacteria, have been created by a research team from Texas A&M University in College Station, Texas. The lethal phages were tested on grapevines affected by Pierce’s Disease (PD), which is caused by Xf.

Once treated, the Xf levels in the grapevines were significantly reduced. Furthermore, the scientists found that only one week after treatment, the symptoms of PD were controlled and no symptoms occurred in the plants that were preventatively treated, Olive Oil Times said. In regards to how the phage cocktail might be used on olive trees with Xf, Carlos Gonzalez, one of the authors of the study, told Olive Oil Times, “at this time we can only speculate since we have not been able to test the Xylella fastidiosa strains from Italy. However, based on our results with grapevines and the genetic similarity of the olive strains, the phages have a high probability of working (on olives)”. Such a discovery is a significant breakthrough in the fight against Xf, as no other prevention technique exists, and treatment has only previously been effective using insecticides – however, the neonicotinoid insecticides are now banned by the EC due to concern over their effects on bee colony survival and development. The phage cocktail is “an environmentallyfriendly, effective and sustainable biocontrol treatment for disease caused by Xf”, Gonzalez concluded. Monitoring the spread of the disease and therefore arming the industry with information is another important tool in the fight against Xf. A report in Teatro Naturale in February looked at the role that drones could play to monitor the spread of the disease. According to the report, which was published prior to the Drones for Agriculture conference in Rome on 17 February, sophisticated infrared and multi-spectral sensors would be utilised by the flying machines to understand to spread of the bacteria in areas like Puglia, which has been so affected by Xf. Luciano Castro, president of the drone conference, told Teatro Naturale that emergencies such as Xf can show the efficiency of drones to provide updated data and enable agronomists, farmers and institutes to make appropriate decision.

EU disease prevention measures In reaction to the outbreak of the disease in the EU, and Italy’s apparent disregard of the EU’s wishes regarding eradication, the European Parliament informally agreed a package of new measures to curb the influx of plant pests on 16 December last year in Luxembourg. The deal includes preventative measures for important plants and those considered to be at high risk. Under the new rules, professional operators, postal services and internet clients will need to hold a phytosanitary certificate – which is an official document issued by the plant protection organisation in the exporting country to the plant protection organisation of the importing country. Private travellers will be allowed to import small volumes of particular plants without needing a certificate. Now that the deal has been informally agreed, it must be endorsed by the European Council and the EU’s agricultural committee before going before the full parliament, Olive Oil Times said. Although eradication measures and methods to curb the spread of the disease are finally being put in place, Italy and the EU were slow to react, and Italy is still fighting against the destruction of their ancient olive trees – with what appears to be little regard for the spread of Xylella fastidiosa. Some argue this is because it is not certain that the bacterium is causing the drying-out and dieback of the olive trees in southern Italy, although scientists say that trees in the area have tested positive. In November last year, the EU announced it was setting aside funds of €7M under Horizon 2020 for research on the prevention, detection and control of Xf, and it is hoped that with new directives and money to investigation the disease further, more olive trees can be saved and the decline in the production of Italian olive oil can be halted. w Rose Hales is OFI’s editorial assistant

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THANKS TO PERCEIVED SUPERIORITY OF ITALIAN EXTRA VIRGIN OLIVE OIL, THE AGROMAFIA CAN MAKE HUGE PROFITS FROM THE SALE OF FRAUDULENT PRODUCTS

The rise of the Italian agrom

Olive oil adulteration is the EU’s biggest source of agricultural fraud and is an issue that is jeopardising the credibility of suppliers and the whole industry. Rose Hales looks at the allegations and testing of extra virgin olive oil, while global quality, grading and labelling requirements are explained by SGS

ood scandals have surfaced with alarming frequency in recent years as criminals take advantage of high prices, poor harvests and limited supply of popular commodities to produce and sell counterfeit products. Just such a situation has emerged in recent years in the extra virgin olive oil (EVOO) industry. In particular, various Italian EVOO suppliers have been accused of adulterating or wrongly labelling their oil to command a higher price, and the allegations are shaking an industry that could do without any further problems. Rumours and scandals surrounding the legitimacy or purity of extra virgin olive oil have been bubbling for a number of years, although it was only early this year that a 60 Minutes investigation aired on 3 January revealed the extent of the problem of adulterated EVOO and the agromafia in Italy. Italian extra virgin olive oil producers are still reeling, whilst authorities consider what to do about the prominent fraud that is threatening

Italy’s thousands of honest producers and the country’s respected export.

How is olive oil tested? Italians (and producers around the world) are already working hard to ensure extra virgin olive oil is pure and unadulterated. The traditional and primary test in Italy is the ‘panel’ test, or taste test. According to Gizmodo Australia, olive oil should taste almost exactly like ibuprofen. In a report published online in December last year, it said that both olive oil and ibuprofen produce the same throat burning chemical response, which scientists named oleocanthal. The unique taste of pure olive oil is the reason behind Italy’s ‘panel test’, the test is needed because chemical tests cannot inform on aroma or taste. According to Tom Mueller, author of ‘Extra Virginity: The Sublime and Scandalous World of Olive Oil’, who wrote in The New Yorker in February

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was tested in laboratories as well as through sensory tests. According to the results, negative sensory results were confirmed by chemical data in 86% of cases. Samples failed due to being oxidised, being adulterated with cheaper refined olive oil or being of poor quality. Olive Oil Times reported in 2013 that at the Workshop on Olive Oil Authentication in Madrid in June of that year, figures had been released that showed one in four olive oils sampled in Spain and nearly one in three sampled in Canada had failed official fraud tests. The workshop was hosted jointly by the European Commission (EC) and the IOC. The hosts released a newsletter in which it was stated that, in particular, there are three problems for which a solution has not yet been found. These problems were: the blending of virgin or extra virgin olive oil with soft deodorised olive oil; blending with other adulterant oils; and the evolution of quality parameters related to freshness. The Olive Oil Times report on the workshop said current monitoring methods were being evaluated and alternatives suggested. Contemporary options included near-infrared (NIR) spectroscopy, which Christian Gertz of the German Society for Fat Science (DGF) predicted would become a dominant analytical tool in quality control. DNA-based methods were also discussed, as well as using DAGs (diaclyglycerols) and PPPs (degradation of the olive oil’s chlorophyll pigment to pyropheophytin), which showed promise in determining old, poorly stored or refined oils. However, the challenges of these methods were also discussed as the use of DAGs and PPPs are both influenced by storage time and conditions.

New tests being developed

romafia?

2012, a taste panel is made up of a group of eight tasters, plus a panel leader who meet regularly to train their palates to recognise the 17 official sensory flaws listed by international regulation. Olive Oil Times said that because olive oil consumption is increasing, a greater number of well-trained sensory panels are required, but these are expensive to maintain. At the Workshop on Olive Oil Authentication in 2013, devices such as electronic noses and tongues, as well as analytical methods were introduced as they could lighten the workload of sensory panels.

The history of olive oil fraud On 14 July 2010, the University of California Davis (UCD)’s Olive Centre released a report in which it was said that 69% of imported olive oil samples and 10% of California olive oil samples labelled as extra virgin did not meet the International Olive Council (IOC)/US Department of Agriculture (USDA) standards for extra virgin olive oil. The oil

In the wake of the criticism that followed the UCD Olive Centre report in 2010, researchers at the Universidad de Alcalá in Madrid patented a new system for testing the purity and quality of oil, which they hope will be used in food testing labs worldwide, Olive Oil Times reported in May 2011. The detection method uses betaine as a selective marker, one of the team behind the new system, Laura Sánchez-Hernández told Olive Oil Times. The test looks for other seed oil using capillary electrophoresis with UV detection. The betaine compound trigonelline is found in seed-based oils but not in extra virgin olive oil, and is very easy to detect in this method. Mérieux NutriSciences has also developed a method to test for adulterated olive oil. Food Quality News said in November last year that the company has designed a non-targeted approach in which specific olive oil components are assessed using mass spectrometry in order to detect their presence and concentration. A profile of extra virgin olive oil has been generated through a large number of samples – over 500 components were revealed in the oil, with 63 allowing the tester to distinguish between different oils. Chief scientific officer, corporate food chemistry and molecular biology, Bert Popping, told Food Quality News that fraudsters would have to “manipulate 63 parameters without knowing which ones the laboratory actually choose to build this profile”, to deceive testers. Apparently, older methods only assessed a handful of parameters, which made it easier to manipulate.

Types of fraud Not extra virgin A scandal hit seven of Italy’s best-known olive oil companies in November last year, reported The Telegraph, UK, with companies accused of conning consumers by selling inferior virgin olive oil labelled as ‘extra virgin’. According to The Telegraph the fraud was first discovered by an Italian consumer magazine in May and was then investigated by the authorities. It was announced in November that of the 20 brands tested, nine were confirmed to be oil of a lower quality. The Telegraph said producers involved in the investigation included big-name brand such as Bertolli, Santa Sabina, Primadonn, Antica Badia and Carapelli. President of the Italian Federconsumatori consumer association, Rosario Trefiletti, said: “The damage caused by this deceit is enormous, not just for consumers but also for the entire country and for the image of products that are made in Italy.” Coricelli, a company also under investigation, disputed the findings saying they were based only on taste tests, and has launched legal action against the consumer publication. Deoleo – which manages Bertolli, Carapelli and Sasso – agreed, saying the controls used “are considered inappropriate for many aspects”. It affirms that all its products “are in accordance with the Italian law about extra virgin olive oil and meet all the physical and chemical parameters”. Deoleo requested a countercheck to verify the results, Olive Oil Times said. Not Italian or not olive oil Olive oil is one of Italy’s greatest and most famous exports. In 2014, 410,700 tonnes of olive oil was exported from Italy abroad. Consumers prize what they see to be more authentic olive oil from Italy. Unfortunately the country of origin is muddied in the confusion between where the olives are grown and where the olives are pressed, a subtle distinction that some vendors are taking advantage of with ambiguous labelling. It is famously said that Italy is the biggest importer and exporter of olive oil. In 2014 it imported 666,100 tonnes of olive oil, the majority (558,100 tonnes) came from Spain, but other countries of origin included Greece and Tunisia. As ‘Italian Olive Oil’ commands a much higher price than olive oil from other countries, Italy can cash in on this premium by importing olive oil to blend with its own olive oil, or olives to press into oil. On 13 December 2014 amended labelling laws came into force in the EU on marketing standards for olive oil (regulation 29/2012). The regulation requires information on olive oil packaging to be “in the main field of vision in a uniform body of text”. This is in response to the practice of placing information such as quality of oil or country of origin in a smaller font or in a less visible location. In addition the regulation only allows the oil to display a harvest year if all of the olive oil is from that harvest. What is still a grey area is if olives are brought to Italy from abroad and processed into olive oil on Italian soil or waters. Then it can still be labelled as ‘Produced in Italy’ – when the olives are not of Italian origin. The Boston Herald reported in January that olives come to Italy from Turkey or Greece and are v

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pressed in ships in Italian Mediterranean water, making the oil technically produced in Italy. A Washington Post report in July 2015 said that, in 2012, as much as 60% of Greece’s olive oil was exported to Italy, where it was packaged with Italian labels and exported again. The profits of this oil go to Italy, with an estimated 50% premium compared to Greek oil. Unfortunately, to take advantage of these economic opportunities, Greece would need greater financial stability and better infrastructure including packaging facilities so that oil could be bottled and labelled and sold from source. Late last year, Olive Oil Times reported the discovery of a massive fraud between Brindisi and Bari, in Italy. It was revealed that 7,000 tonnes of olive oil sold and labelled as ‘100% Italian’ extra virgin olive oil was, in fact, blended oils from nonEU countries such as Morocco, Syria, Tunisia and Turkey. According to the report, six people were investigated for commercial fraud and counterfeiting geographical indications, including dozens of companies in Apulia and one certification laboratory. It was estimated that illicit turnover from the fraudulent oil could be “tens of millions of euros”, the Forestry Corps said. The geographical origin of the oil was established through molecular analysis using DNA extraction. It must be acknowledged that olive oil fraud is

not just an Italian problem. Greek police made arrests in 2013 relating to two separate olive oil fraud rings, Olive Oil Times said. It was reported that four suspects faced accusations that they tried to sell coloured soyabean oil as extra virgin olive oil; the suspects tried to sell 1,000 litres of oil for over €2,500. Extra virgin olive oil produced in California has also come under investigation.

What happens now? Recent worrying developments suggest that instead of cracking down on the oil fraud, legitimate producers in Italy are protesting a decree that seeks to decriminalise counterfeit olive oil, Olive Oil Times said in December last year. Producers, trade associations and industry representatives said the law would decriminalise counterfeiting and would undermine those struggling to stop people selling products as Italian made when they are not. Instead of being a criminal offence, producers told Olive Oil Times it would be reduced to a simple administrative sanction. If the decree is approved, offenders would be punished with a fine of between €1,600 and €9,500. Those against the proposed law argue that this is not enough to deter fraudsters, who stand to make significantly more in the sale of counterfeit olive

oil. In a joint statement, Justice Minister Maurizio Martina and Agriculture Minister Andrea Orlando retorted by saying that the penalties in the new law were not a step back. Olive Oil Times reported on 25 January that in Italy, reactions to the 60 Minutes report have changed “from anger to resolve”. The president of the CEQ consortium (Consortium to Guarantee Quality Extra Virgin Olive Oil), Elia Fiorillo said the solution to the problem is unambiguous labelling. This would safeguard the interests of both 100% Italian produced olive oil and Italian exports of blended oil from different origins. An earlier CEQ proposal wanted to institute official recognition for “High Quality Italian EVOO”. By assessing social networks, Olive Oil Times concluded that the feeling across the olive oil industry was a “healthy and honest desire to fight the problems of counterfeiting by organised crime infiltration”, by improving legislation, consumer awareness and the promotion of high-quality food. Regulators in Italy and around the world are looking at new ways to test the purity and authenticity of olive oil, as the traditional panel test method may not be enough. It is hoped that better tests that are harder to manipulate, stricter rules on labelling and harsher ramifications for those that are caught will begin to  deter the agromafia in Italy and abroad. Rose Hales is OFI’s editorial assistant

Global olive oil quality, grading and labelling requirements A brief summary of voluntary industry standards and government/state regulations; and an outline of common issues relating to adulteration and contamination

he olive oil industry faces increased pressure to prove that its products live up to the quality and origin on the bottle. Consumers are now more aware than ever that olive oils may not always be what is claimed or advertised. Recent poor harvests and increasing demand for olive oil once again raises the risk of olive oil adulteration or fraud for short-term financial gain. To protect olive oil’s long-term reputation, all those involved in the supply chain must remain vigilant against such activity – and ensure consumer confidence and demand for olive oil remains high.

all olive oils. Extra virgin olive oil only appeared after stainless steel milling techniques were introduced in the 1960s and 1970s. The technology allowed a much higher grade of olive oil than had been previously possible. By far the largest percentage of olive oils is extra virgin olive oil, which accounts for around 50% of world production. Extra virgin olive oil must pass certain chemical analysis and even more importantly sensory evaluations by a panel of testers before it receives classification.

Grades and requirements

Olive oil grades

Olive oil grades and requirements are defined by the various agencies in chemical terms and by titles, which all use as a reference point the most common grades of olive oil: extra virgin olive oil, virgin olive oil, ordinary/lampante virgin olive oil, refined olive oil, olive oil, olive pomace oil, refined olive pomace and crude olive pomace oil.

Olive oil grades must meet the technical characteristics and regulations of the intended market/country. Each market/ country may name and/or grade olive oil differently. In Table 1 (following page), a comparison of olive oil grades/titles is presented from the various agency/ countries mentioned.

Extra virgin olive oil Extra virgin olive oil offers the highest quality and most expensive grading of

Quality parameters and grading Olive oil quality and grading is evaluated on the basis of certain limits set for chemical and sensory testing. Most agency/country

testing criteria follows limits set by the IOC. Chemical testing Due to advances in analytical processes such as gas chromatographic and spectrometric methodologies, many texts exist to give growers, producers, exporters and importers accurate information on the quality, authenticity, shelf life and overall characteristics of oil extracted from olives. Some of the more common chemical tests for olive oil are outlined briefly below: n Oil content n Moisture content n Free fatty acids (FFA) n Peroxide value (PV) n Absorbance in ultraviolet region (K value) n Fatty acid profile (FAP) n Wax content n Other tests Sensory testing Sensory testing or organoleptic assessment is the evaluation of olive oil quality via a panel test (PT). PTs follow strict methodologies and members of the panel must be trained in how to accurately assess specific sensory characteristics. The sensory aspects commonly assessed are fruitiness, pungency and bitterness.

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Regulations and standards setting EU During recent years, the EU has issued several new legislations to combat olive oil fraud, in addition to the prior standard EEC 2568/91, which established the EU characteristics of olive oil, olive residue oil and the relevant methods of analysis. EU regulations include: n Regulation (EEC) 2568/91: sets out the characteristics of olive oil and olive-pomace oil and the relevant methods of analysis. Defines the physical, chemical and organoleptic characteristics of olive oils and olive-residue oils and the methods for evaluating these characteristics n Regulation (EEC) 1308/2013: establishes the commercial definitions of olive oils such as extra virgin, virgin, ordinary, lampante, olive oil (refined and virgin) and kernel oil. This regulation also defines requirements, characteristics, production and FFA content. These new regulations coupled with others have changed the way the determination of quality and purity of olive oil is performed. n Regulation (EEC) 29/2012: establishes the marketing standards for olive oil (codification), including specific labelling rules. n Regulation (EEC) 1151/2012: lays down the rules on the protection of designation of origin and geographical indications. n EU regulations require trained sensory panellists to perform the sensory evaluation, testing each batch at each point of the processing and distribution chain for K values (K232, K270), FFA, peroxide value, diglycerides, triglycerides, pyropheophytines, waves, alkyl esters, fatty acid composition, (and other required tests) to assure compliance with the regulations and confirm that no economic adulteration has taken place. USA In the USA, all states apart from four have only voluntary standards known as ‘the United States Standards for Grades of Olive Oil’ since 1948. The standards facilitate orderly marketing by providing a convenient basis for buying and selling and act as a basis for inspection and grading by the Federal inspection service. Connecticut, New York, Oregon and California are the four exceptions. Connecticut set quality standards to protect the quality of olive oil first, these standards mirror the IOC’s own standards. California most recently passed legislation in 2014 to protect the region’s fast-growing olive oil industry. The California standards are the first in the world to require testing of every lot of oil produced. Australia The Australian Standard for Olive Oils and Olive Pomace Oils – AS 5264-2011 – came into effect on 20 July 2011. Developed and owned by Standards Australia, the new standard has been formed in parallel with the ‘Australian Olive Industry Code of Practice’ and the ‘Consumer Awareness and Education Campaign’ – with the overall aim being to protect the integrity of the entire olive oil supply chain, with particular focus on the consumer. The Australian Olive Association (AOA) has been instrumental in the new standard, funding world-leading research, as has the Department of Agriculture, Fisheries and Forestry (DAFF) through its long-term work on international trade standards.

Labelling requirements EU In the EU, regulations have recently been amended to make information clearer and less ambiguous to the consumer. Changes to regulations such as how and where information appears and in what font size have been implemented to make it more obvious what is contained in the bottle and how to store the olive oil. In addition, harvest year can now only be stated if the olive oil in its v entirety comes from the harvest, aimed at ensuring consumers

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TABLE 1: COMPARISON OF TITLES FOR OLIVE OIL GRADES BY AGENCY/COUNTRY United States

IOC

Australia

Codex

US Extra Virgin Olive Oil

Extra Virgin Olive Oil

US Virgin Olive Oil

Virgin Olive Oil

US Virgin Olive Oil Not Fit For Human Consumption Without Ordinary Virgin Olive Oil Further Processing

Lampante Virgin Olive Oil

Lampante Olive Oil

Ordinary Virgin Olive Oil

US Olive Oil

Lampante Virgin Olive Oil

Refined Olive Oil

US Refined Olive Oil

Refined Olive Oil

Olive Oil - composed of refined olive oils and virgin olive oils

Olive Oil - composed of refined olive oils and virgin (or extra virgin) olive oils

Olive Oil

US Olive-Pomace Oil

Olive Oil

Olive Pomace-Oil

Olive Pomace-Oil - composed of refined olive pomace and Olive-Pomace Oil virgin (or extra virgin) olive oils

US Refined Olive-Pomace Oil

Olive Pomace-Oil

Refined Olive Pomace-Oil

US Crude Olive-Pomace Oil

Refined Olive Pomace-Oil

Crude Olive Pomace-Oil

–

Crude Olive-Pomace Oil

–

know the freshness of the olive oil before purchase. USA In the USA, the Food and Drug Administration (FDA), except in a few instances, enforce food labelling regulations in the country: however, one specific exception is the ‘country of origin marking requirement’ which is enforced by the US Customs Service (the FDA can also enforce this requirement). Nutrition is the major focus on food labelling in the US. Australia In Australia, for signatories in the Australian

PHOTO: RICCARDO BRUNI/DOLLARPHOTOCLUB

Olive Association (AOA), labelling is per the AOA code of conduct, which builds on those of the Codex General Standard for the Labelling of Pre-packaged Foods and the standards for food intended for direct sale to consumers of the Food Standards Australia New Zealand – Food Standards Code.

Conclusion Olive oil is a staple of the Mediterranean diet. Consumers around the world are drawn to its many presumed health benefits, and of course the ‘premium’ nature of the product. If manufacturers, producers and retailers

are to continue successfully selling olive oil at a premium price, the words ‘extra virgin olive oil’ may no longer be enough to convince consumers of authenticity. The many well-documented media exposés have placed a greater emphasis on testing – both chemical and sensory – to determine quality, grade and origin/variety. Labelling has come under increased scrutiny for the role it plays in clearly identifying the product contained within the bottle. Not just in terms of quality, but also origin and freshness. As voluntary standards and regulatory requirements are becoming stricter in terms of what is expected of the final product, it is up to the manufacturers, producers and retailers to ensure they can not only demonstrate the product meets all quality/ grading and labelling requirements; but it is also prudent to have transparency and traceability throughout the entire supply chain. Risk of contamination, adulteration and fraudulent product are all significant threats to consumer confidence in olive oil. Only by establishing stringent controls that address testing, verification and good practices can the olive oil industry protect its reputation –  and the trust of the consumer. This section is extracted from the SGS White Paper ‘Understanding Global Olive Oil quality, grading and labelling requirements’, May 2015 To read the full white paper go to: www.sgs.com/oliveoil

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Clean and efficient vacuum systems for refining and deodorising

ICE Ice condensation ACL Alkaline Closed Loop

Grain sailing A new bulk grain terminal to be used for the export of soyabeans was opened in Uruguay’s capital city, Montevideo, late last year. As the country’s deepest bulk terminal, it has the potential to transform Uruguay’s soyabean export industry. Rose Hales writes

new bulk grain terminal with an initial storage capacity of 120,000 tonnes began operation in Montevideo, Uruguay last December. Originally the project was known as Obrinel but has now changed its name to Terminal Granelera de Montevideo (TGM). The original plan for the terminal was to export wood chips, but the focus has since changed to grain exports, including soyabeans.

Uruguay’s economy and grain Uruguay, a country in eastern South America nestled between the two giants of Brazil and Argentina, is an economy supported greatly by its agricultural exports, including soyabeans. According to the USDA Global Agricultural Information Network (GAIN) Report, Uruguay: Oilseeds and Products Annual 2015, the forecast for the marketing year 2015/16 is for a slight decrease in the country’s soyabean planting area at 1.3M ha. However, despite the decrease in planted area it is forecast that production will come in at 3.65M tonnes, a small increase from v

Körting Hannover AG 30453 Hannover/Germany Tel.: +49 511 2129-253 st@koerting.de

www.koerting.de

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v the 2014/15 season. Uruguay imports soyabean oil and soyabean meal as it has only marginal crushing facilities. It exports nearly 95% of the soyabeans it produces as whole beans, according to the GAIN report. Soyabean exports for the 2015/16 season are forecast to reach 3.385M tonnes, which would be a record for the country (although only marginally). The biggest importer of Uruguayan soyabeans is China – importing 75% of all exports. But Bangladesh, Egypt, the EU and Mexico also import soyabeans from the country. With a huge soyabean export industry, Uruguay needs an efficient and supportive logistics and transportation system. In general, soyabeans are exported out of Uruguay via cargo ships. The GAIN report says that, historically, 75% of the country’s soyabeans have been exported from the western port of Nueva Palmira. This port is geographically well positioned as it is relatively close to the centre of Uruguay’s production region in the west. It also sits on the Uruguay River so can receive barges from Paraguay and Argentina. The other 25% is traditionally shipped from Montevideo, which is a public port. Being a public port means it has not previously been set up for continual grain exports.

A new grain terminal A project to construct a new terminal at the port of Montevideo, built on an area of nine hectares reclaimed from the sea, got underway in January 2014. The new terminal was intended to increase the port’s capacity, improve efficiency and allow for continual grain exports and reached completion in early December 2015 – although the opening was delayed along the way. According to the GAIN report, the new grain terminal at Montevideo will double the port’s capacity to 2M tonnes. The grain terminal is located at the north end of the port of Montevideo, and has its own pier for loading ships. The terminal was dredged and it will be able to dock vessels up to 41 feet (12.5m) deep. The depth of the dock is significant because this makes the bulk terminal unique in Uruguay. It will allow the terminal to ‘top-off’ ships from shallow water ports such as Rosario in Argentina and Nueva Palmira in Uruguay on their way to Asia. To top-off a ship means to fill a ship to capacity when it has already been partly loaded at a previous port. For example, ships can be filled to 40,000 tonnes at Nueva Palmira and can top-off with the final 20,000 tonnes at TGM, departing with the desired 60,000 tonnes.

Why is the new terminal so important? In the Uruguay: Oilseeds and Products Annual report, it is predicted that a new terminal will reduce shipping times and costs and will decrease demurrage rates at Montevideo. Additionally, according to the president of the National Port Authority, Alberto Diaz, the venture will be beneficial for traffic decongestion and for trucks coming in and out of the port, Presidencia reported. The terminal is also significant due to its location and its proximity to future soyabean production areas. As previously mentioned, the busiest soyabean export port is currently Nueva Palmira – situated in the west of the country, close to the main production region in the coastal areas, particularly along the west coast. The new terminal

FIGURE 1: MAP OF URUGUAY ARGENTINA

BRAZIL

ROUTE 5 HIGHWAY

MONTEVIDEO PORT

URUGUAY RIVER

NUEVA PALMIRA PORT

will complement Nueva Palmira; a busy port that can be susceptible to bottlenecks due to the huge concentration of grain produced in the region during harvest time. In addition, El Diario says it is hoped the terminal will help realise the potential of newer production regions, particularly in the east and along the Route 5 highway in the middle of the country. Montevideo would be better placed for the transportation of soyabeans from this region. The USDA’s GAIN report says that the new terminal will make a difference to these new production areas – increasingly their viability. In addition, the USDA’s report says that there is a growing trend in Uruguay for container shipping. In 2015, approximately 10% of the country’s whole soyabean exports were shipped via container out of Montevideo. Container shipping is viable for two reasons: firstly because markets in Southeast Asia do not always have a need for larger, bulk shipments of soyabeans; and secondly as exporters can take advantage of lower haul back costs. Goods arrive in Uruguay from Asia in shipping containers and Uruguayan exporters can benefit from the ships returning to Asia with otherwise empty containers. According to the report, exporters believe this will be a growing trend for Uruguayan soyabeans.

Fast loading The Terminal Granelera de Montevideo has an initial capacity of 120,000 tonnes (12 silos), although this will be extended in 2016 to a final capacity of 200,000 tonnes (with eight additional silos). The loading rate of the terminal is 1,200 tonnes/hour, which equates to an average daily rate of approximately 20,000 tonnes. ABC reported that the terminal’s opening loading rate was 2M tonnes/ year. This is a significant speed in comparison to older terminals, TradeWinds says as an example that a 60,000-dwt bulker can be fully loaded at the TGM in approximately 70 hours. It has three loading shoots on a 300m long pier. It also has its own barge berth for transhipment cargo coming up from the river, Ian Caig, agency manager bulk, heavy lift and conventional operations, at DPA/CSO Cosmar (UK) Ltd says.

Alpemar Shipping Agency reported in July last year that the terminal has one conveyor belt, with a second planned for future installation. Finally the terminal has no air draft limitation, meaning that ships of any height will be able to enter. It is not just state-of-the-art facilities and fast loading that the new terminal boasts but competitive port charges and demurrage factors. As an example, TradeWinds reported in January that port charges for a Panamax ship at TGM are around US$30,000 per port call, compared to up to US$150,000 at competitor terminals which also deal with top-offs. It added that the top-off market for soyabean exports is estimated to be currently worth US$8M/year, with figures expected to grow in the coming years. This market was previously divided between Brazil and Argentina, so it puts into perspective the importance of the new terminal for Uruguay. Various reports also say that there are additional developments underway for the terminal. For example, plans are in place to increase loading speeds to up to 2,400 tonnes/hour in the future.

Is it worth it? According to the GAIN report, some people are sceptical of the new terminal in Montevideo because they believe the costs are too high. The work to build the new terminal required an investment of US$100M. Ian Caig at DPA/CSO Cosmar (UK) Ltd said in a post published via LinkedIn that the project was a joint venture between the Christopherson Group and Brazilian finance backers. Port Technology reported that Laskaridis Group’s holding company Lavinia, made 51% of the investment in the terminal through its controlling stake in local ship agency Christopherson Group. The remainder was invested by private-equity firm P2 – which is a joint venture linked to São Paulo-based Patria Group and engineering firm Promon. According to TradeWinds, Laskaridis has traditionally always had strong links with Obrinel, and the new terminal is a natural extension of Laskaridis’ shipping business – hence the investment. Local company Obrinel was awarded the construction of the terminal and Spanish company Silos Córdoba was commissioned to provide the storage silos and grain transportations systems, ABC said. Christopherson chief executive Guillermo Jacob told TradeWinds in July 2014 that; “The project will render services to all trading companies operating in Uruguay, including ADM, Glencore, Dreyfus, Bunge, Cargill and other international grain traders, as well as local traders”. It also has firm support from the Uruguayan government. At the ceremony marking the beginning of construction works in January 2014, the president at the time, José Mujica, said: “The terminal is of great importance for faster loading and unloading of ships, and that will lower freight costs, which represent a significant portion of costs.”

Updating transport to the terminal In an interview with The Worldfolio, Emilio Perazzio, general manager of Obrinel SA Terminal said that

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the most pressing issue is to solve the problem of the port’s access. Developing access to the terminal is essential if the port wants to grow, although this must be done sensitively and without causing problems to the city of Montevideo itself. Perazzio mentioned what he says are indirect infrastructure investments, for example working with more efficient transportation, such as railways and using the waterway for barges. Both investments would not cause additional problems to the city. Rail and barge transport are also safer and more environmentally friendly than other transportations options, Perazzi said. “We are also realising that no matter how many things we do in the provinces, if the railway network can’t reach and unload in the port, it really makes no sense to activate it.” Perazzio continued, “therefore, we are working on the bulk load issue, so that the railway becomes operational, which is what the country needs.”

Resolution 1108/13 The opening of Montevideo’s new grain terminal has come at an ideal time due to the recent revoking of Argentina’s Resolution 1108/13 in January. Resolution 1108/13 was issued by Argentina on 25 October 2013 and banned trans-shipping in countries that do not have maritime cargo accords with Argentina (only Paraguay and Brazil have these agreements). The resolution in particular affected the Port of Montevideo as it prevented cargo originating in Argentina’s Port of Rosario from being trans-shipped in Montevideo.

According to the Buenos Aires Herald, the resolution was made in response to increased output from a UPM pulp mill in Uruguay, which Argentina said was contaminating its environment. Although media reports also say that Argentina had attempted to introduce a similar measure in 2005 because the two ports (Rosario and Montevideo) were in competition. Although the resolution was made with the idea to handicap Montevideo and Uruguay, its implementation has had a negative effect on Argentina too. Buenos Aires Herald said Uruguay’s government estimated that the cost to Uruguayan exports could be US$100M, with container trading falling a possible 25%. The measure could turn Montevideo into a “small port”, Jose Polak, former director of Uruguay’s National Ports told the Buenos Aires Herald. Meanwhile in Argentina, trade from the Rosario Port Complex declined 25-30% from October 2013 to August 2014. The Port of Montevideo – which had two regular lines with Rosario – had been the port of choice for Rosario local traders because of its regularity and good service. After only 10 months in force it was reported that the resolution had had a “highly negative impact” and had “failed to meet its goal”, an Ente Administrador Puerto Rosario (ENAPRO) statement said. The outcome of the resolution was that loaders opted to send products to the Puerto de Navegantes (in Brazil, operated by an international shipping company) or take them to the Port of Buenos Aires – causing truck bottlenecks along the roads. FarmUY

reported in June 2015 in a South American Crop Report that the Resolution 1108/13 had “officially failed”. The president of Argentina, Mauricio Macri’s decision to revoke the resolution will allow the flow of goods to return to normality.

Conclusion With the new terminal at Montevideo finally in operation, a few problems still need to be ironed out before it can reach its full potential. In order to complement Uruguay’s busiest soyabean port, Nueva Palmira, TGM will top off ships departing from Nueva Palmira towards Southeast Asia, but it must also become an independent terminal for the transportation of soyabeans from Uruguay’s new and potential production regions in the centre of the country. In order for this to happen, port officials have admitted that product transportation via rail and barge to the port must be improved, as well and truck access to the port, which could have a negative effect on Uruguay’s capital city, Montevideo, if the port grows and becomes busier. A TradeWinds report in January says that plans are underway to secure a direct rail link to the terminal, which will allow a further increase in capacity. Nevertheless, TGM is Uruguay’s deepest bulk terminal and will deliver opportunities for growth in the country, especially now that Resolution 1108/13 has been revoked and trans-shipping between Argentina and Uruguay can resume. w Rose Hales is OFI’s editorial assistant

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STATISTIC S

EXTRA VIRGIN OLIVE OIL PRICES (EU€/KG)

STATISTICAL NEWS FROM MINTEC Olive oil

SUNFLOWERSEED OIL PRICES ROTTERDAM (US$/TONNE)

EU olive oil prices fell in the second half of 2015, following the high prices throughout the first half of 2015 due to extremely tight supplies. As the harvest progressed and more supply became available, prices fell down to levels seen at the end of 2014. EU production is forecast at 2.1M tonnes for 2015/16, up 35% yearon-year on the very poor production in 2014/15 and reflecting a similar level to the five-year average. EU ending stocks, however, remain historically very tight at 0.07M tonnes, down 20% year-on-year. In India, increasing demand has resulted in olive oil imports, mainly from Spain, doubling in the past five years. The recent high prices of olive oil in 2014 and 2015, coupled with the low prices of other vegetable oils, has resulted in a slowing of this import growth.

Sunflowerseed oil Sunflowerseed oil prices rose at the start of 2016 as lower levels of crushing in Ukraine temporarily limited supply. However, downward pressure was added to prices in February by increased availability from Argentina. The Argentine government removed export taxes resulting in increased farmer selling. Global production in 2015/16 is forecast at 15.1M tonnes, up 1% year-on-year. Consumption is expected to remain relatively unchanged compared with the previous season at 14.1M tonnes.

COTTONSEED OIL INDIA (US$/T)

Cottonseed oil Cottonseed oil prices have risen since the start of 2016 due to lower production expectations. Global production of cottonseed in 2015/16 is forecast at 32.8M tonnes, 15% down year-on-year. Production in India is expected to fall by 6% to 11.8M tonnes, while China is expected to see a 21% decline in production to 9.3M tonnes. Global crushings are set to fall slower than production, by 12% to 29.8M tonnes.

PRICES OF SELECTED OILS (US$/TONNE) 2013

2014

Dec 15

Jan 16

Feb 16

Mar 16

Soyabean 1,052 897 748 715 749 732 Crude Palm 854 825 600 608 658 648 Palm Olein 803 762 579 596 630 620 Coconut 948 1,276 1,151 1,161 1,220 1,278 Rapeseed 1,080 906 811 781 781 746 Sunflower 1,108 905 850 836 851 830 Palm Kernel 904 1,120 862 914 994 1,060 Average price 964 INDEX 228

956 226

800 190

802 190

840 199

845 200

Mintec works in partnership with sales, purchasing and supply chain professionals to deliver valuable insight into worldwide commodity and raw materials markets using innovative technology and a knowledgeable team of specialists. We provide independent insight and trusted data to help the world’s most prestigious brands to make informed commercial decisions. Tel: +44 (0) 1628 851313 E-mail: sales@mintec.ltd.uk Website: www.mintecglobal.com

34 OFI – MARCH/APRIL 2016 www.oilsandfatsinternational.com

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

Exhibition catalogue

Organised by

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EXHIBITION CATALOGUE HYDERABAD INTERNATIONAL CONVENTION CENTRE | INDIA | 13-14 APRIL 2016

over 1.2bn people. It imports some 14M tonnes/year of edible oil, against domestic production of 7-8M tonnes. The country consumes around 20M tonnes/year of edible oil and per capita consumption stands at around 14-15kg, compared with a global average of 22.8kg. Increases in India’s population and lifestyle changes are driving a growth in edible oil consumption. An emerging health and wellness trend means wealthier consumers are becoming increasingly aware of the quality and health value of the oils and fats they consume. From all of us on the OFI team, we hope you will have a beneficial and enjoyable show and leave with new information, contacts and perspectives.

elcome to the inaurgural OFI India 2016, being held on 13-14 April at the Hyderabad International Convention Centre (HICC), an exceptional, state-of-the-art facility. This three-in-one event combines an exhibition showcasing the latest products and services from the worldwide oils and fats marketplace, a free business conference, and a parallel Smart Short Course. OFI’s own business conference is a two-day event packed with speakers from across the world. The conference has the theme, ‘Fostering Market Growth and Facing Challenges in the Oils and Fats Industry’ and will include four key modules: Outlook on

the Global Oils and Fats Scenario; Drivers and Challenges in the Indian and South Asian Markets; Geographic and Feedstock Factors Impacting the Indian Market; and New Markets, New Applications and New Opportunities. Smart Short Course is partnering with OFI for the first time in India with a two-day conference titled, ‘Oilseed and Oil Processing Technology and Utilisation’ and will focus on oilseed processing; oil processing and refining; and quality control and component valorisation. An emerging market India is the world’s largest edible oil importer and the second most populous nation in the world, with

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

Paul Michael CEO Quartz Business Media Ltd

CONTENTS

Welcome

OFI India 2016 cover

Paul Michael welcomes visitors to OFI India 2016

Show Guide

C3 OFI India business conference programme C4 Smart Short Course programme C5

Floorplan and listings

C6-8

Exhibitor profiles

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BUSINESS CONFERENCE HYDERABAD INTERNATIONAL CONVENTION CENTRE | INDIA | 13-14 APRIL 2016

Fostering Market Growth and Facing Challenges in the Oils and Fats Industry McDonald & Pelz Global Commodities Q&A

WEDNESDAY 13 APRIL 9.00-10.00: Arrival and registration

12.40-2.00 LUNCH

10.00-10.05: Opening remarks Quartz Business Media, UK

2.00-2.30 The benefits of sustainable soyabean production in India Dr Suresh Motwani, Programme Head, Sustainable Soya, Solidaridad South and South-East Asia (SSEA) Q&A

10.05-10.15: Welcome address Pravin Lunkad, President, Solvent Extractors’ Association of India (SEA) Module 1: Outlook on the Global Oils and Fats Scenario Chair: Serena Lim, Editor, Oils & Fats International (OFI), UK 10.15-10.25 Global oil and oilseed scenario – India’s priorities Dr Davish Jain, Chairman, Soybean Processors Association of India (SOPA); President and Group Managing Director, Prestige Group of Industries Q&A 10.30-11.00 Price outlook and factors impacting on world supply and demand for oils and oilseeds James Fry, Chairman, LMC International, UK Q&A 11.05-11.30 BREAK 11.30-12.00 Mapping the market thought of the oil and oilseed market Nagaraj Meda, Managing Director, Transgraph Consultancy, India Q&A Module 2: Drivers and Challenges in the Indian and South Asian markets Chair: D N Pathak, Executive Director, Soybean Processors Association of India (SOPA) 12.05-12.35 The challenges of Indian oilseed origination – addressing quality, supply, logistics and hedging issues Sumit Gupta, Business Manager,

2.35-3.05 Trends in nutrition and consumption of edible oils and fats in India Aravind Chander, Head of Business Development, Giract Consultancies India Pvt Ltd Q&A 3.10-3.40 Palmonomics: the external factors influencing palm oil and their impact on Indian edible oil markets Ali Muhammad Lakdawala, Assistant Manager, Procurement, Foods Division, ITC Limited, India Q&A END OF DAY 1

THURSDAY 14 APRIL 9.00-10.00: Arrival and registration Module 3: Geographic and Feedstock Factors Impacting the Indian Market Chair: G Chandrashekhar, Economic Advisor, Indian Merchants’ Chamber 10.00-10.30 Meeting India’s current and future demand for palm oil – the global and domestic supply and demand scenario Sushil Goenka, Director, 3F Industries Ltd, India; Former President, SEA, India Q&A 10.35-11.05 Soyabean production in India – how to break the jinx of low yields D. N. Pathak, Executive Director, Soybean Processors Association of India (SOPA) Q&A

11.10-11.40 BREAK 11.40-12.10 Outlook on the global sunflowerseed and oil market Fabrice Turon, Head of Oilseeds and Oils Research, Fats & Associés, France Q&A 12.15-12.45 The global rapeseed market and its impact on India David Jackson, Director of Oils and Oilseeds Research, LMC International Q&A 12.50-1.45 LUNCH Module 4: New Markets, New Applications and New Opportunities Chair: Sushil Goenka, Director, 3F Industries Ltd, India; Former President, SEA, India 1.45-2.15 The Indian castor oil industry – supply, consumption and exports G Chandrashekhar, Economic Advisor, Indian Merchants’ Chamber Q&A 2.20-2.50 Rice bran oil processing and value added products Dr R B N Prasad, Platinum Jubilee Mentor, Centre for Lipid Research, CSIRIndian Institute of Chemical Technology, Council of Scientific & Industrial Research, India Q&A 2.55-3.15 Market overview and new applications for oleochemicals in Asia Gabriele Bacchini, Oleochemical Product Manager, Desmet Ballestra Oleo Q&A 3.20-3.40 Optimisation for gross margins of oils and oilseeds processing Sana Shaikh, Product Specialist - NIR, Buchi India Pvt Ltd Q&A END OF CONFERENCE

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Oilseed & Oil Processing Technology and Utilisation Session 2: Oil Processing and Refining

WEDNESDAY 13 APRIL

14.30-15.00: Advanced Technologies for Edible Oil Refineries – Case Studies Anik Roy, MecTech Process Engineers, India

Session 1: Oilseed Processing 8.50-9.00: Opening remarks 9.00-9.30: Oils & Fats Chemistry Speaker to be confirmed

15.00-15.30: BREAK

9.30-10.00: Oilseed Dehulling Dirk Heinrich, Buhler Group, Switzerland 10.00-10.30: Making a Better Flake: The Art of Proper Conditioning William Morphwe, CPM Crown Iron Works, USA

15.30-16.00: Review of Degumming and Refining Technologies Ling Hua, Food & Life Science, Alfa Laval, Denmark 16.00-16.30: Latest Developments in Filtration of Edible Oils & Fats Satish Khadke, Sharplex Filters, India 16.30: END OF DAY ONE

10.30-11.00: BREAK 11.00-11.30: Energy Recovery Optimisation in Preparation Plants Farah Sköld, Solex Thermal Science Inc, Canada 11.30-12.00: Solvent Extraction, Belt vs Rotary Type Mario Bernardini, Techoilogy, Italy 12.00-12.30: Crude Oil and Miscella Clarification for Production of High Quality Lecithin Robert Zeldenrust, GEA Mechanical Equipment, Germany 12.30-13.30: LUNCH 13.30-14.00: Full-Pressing of Canola and Sunflower Seed with the Two-step Pressing Process Harald Boeck, HF Press+LipidTech, HF Group, Germany 14.00-14.30: Protein Concentrate Plant Design for Food and Aquafeed Applications William Morphwe, CPM Crown Iron Works, USA

THURSDAY 14 APRIL 9.00-9.30: Process Automation and Remote Condition Monitoring for Centrifuges and Plants Robert Zeldenrust, GEA Mechanical Equipment, Germany 9.30-10.00: Bleaching Basics and Practical Optimisation Andri Camus, Clariant Adsorbents, Indonesia 10.00-10.30: Optimising Deodorisation for Quality and Energy Atul Joshi, Desmet Ballestra India 10.30-11.00: BREAK 11.00-11.30: Fundamentals of Oils and Fats Processing – Deodoriser Design and Optimisation Greg Waranica, CPM Crown Iron Works, USA Session 3: Quality Control and Component Valorisation

11.30-12.00: Micronutrient Recovery and Concentration from Deodoriser Distillates Ling Hua, Food & Life Science, Food & Life Science, Alfa Laval, Denmark 12.00-12.30: Mechanism of Oxidation and Oil Quality Management in Frying and Cooking Oils Ignace Debruyne, ID&A, Belgium 12.30-13.30: LUNCH 13.30-14.00: Enzyme Solutions Improve Process Yield and Final Product Qualities Hans Christian Holm, Novozymes, Denmark 14.00-14.30: Fat Modification Processes: Dry Fractionation, Chemical and Enzymatic Interesterification and Hydrogenation Marc Hendrix, Desmet Ballestra Group, Belgium 14.30-15.00: Oleochemical Derivatives – Opportunities for Downstream Integration Thomas Blocher, Buss ChemTech, Switzerland 15.00-15.30: BREAK 15.30-16.00: Hydrogenation as a Tool for Making Hardstocks and in Oleochemistry Michael Paul, BASF, Germany 16.00: Recycling Solutions for Spent Catalysts Generated from the Oils and Fats and Oleochemical Industries Ben Ortlepp, Nickelhuette Aue, Germany 16.30: END OF PROGRAMME

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Please join us at the next meeting in Seville, Spain • June 7-9, 2016 to be held at the Gran Melia Col�n

Castor oil is the most versatile vegetable oil in the world. Its applications reach across numerous industries. The meetings discuss production prospects, crop outlooks, demand forecasts, new applications and sustainability efforts being carried out by the industry. Meetings of The International Castor Oil Association bring together major participants in the industry to exchange views on the latest news about Castor oil. While networking with the participants in the Castor oil industry, enjoy the sights and sounds of the friendly Spanish people. Check the ICOA website for hotel registration form and additional meeting details.

For information on the Association, its meetings or copies of the technical bulletins, contact: icoa@icoa.org www.icoa.org 41 OFI – MARCH/APRIL 2016 www.oilsandfatsinternational.com

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EXHIBITOR PROFILES

HYDERABAD INTERNATIONAL CONVENTION CENTRE | INDIA | 13-14 APRIL 2016

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ALFA LAVAL (INDIA) LTD Bombay Pune Road, Dapodi Pune Maharashtra, 411012 India Tel: +91 20 2710 7100 Fax: +91 20 2714 7711 Email: lalita.vasu@alfalaval.com Website: www.alfalaval.com Stand contact: Dhiraj Singh Alfa Laval offers high yield, efficiency and performance solutions from a single critical component to complete turnkey process lines. It provides customised scope and design from refining to edible oil and effluent treatment for refinery capacity 50 to 2,000 t/d. It has experience from thousands of vegetable oil installations worldwide.

C07

ANDREOTTI IMPIANTI SPA Via Di Le Prata 148, Calenzano (FI), 50041, Italy ANDREOTTI IMPIANTI INDIA PRIVATE LTD Flower Valley, Tower 2, 1st floor Off Eastern Express Highway Thane, 400099, India Tel: +39 055 44870 Email: info@andreottiimpianti.com Website: www. andreottiimpianti.com Stand contact: Tommaso Tori Andreotti Impianti is one of the world leaders in the design, manufacture (in its own workshops in Italy) and supply of state-of theart plants and equipment for the industries of edible oils (crushing, solvent extraction and full refining) and oleochemicals (fatty acids, glycerine and biodiesel). The presence of the company extends worldwide, with over 700 plants successfully installed and started-up in over 60 countries.

C23

BUCHI INDIA PVT LTD 201, Magnum Opus, Shantinagar Industrial Estate Vakola Santacruz Mumbai, Maharashtra 400 055, India Tel: +9757341641 Fax: +91 22 6671 8986 Email: ghugare.a@buchi.com Website: www.buchi.com Stand contact: Ashwini Ghugare For 75 years BUCHI has been a leading solution provider in laboratory technology for R&D, quality control and production worldwide. Its solutions for laboratory, industrial and

parallel evaporation, spray drying, melting point, preparative chromatography, extraction, kjeldahl, dumas and NIR meet the highest needs of its customers around the globe.

C06

BUHLER (INDIA) PVT LTD 13D, K.I.A.D.B. Industrial Area Attibele, Bengaluru Karnataka 562107, India Tel: + 91 806 777 0000 Fax: + 91 8022 890 001 Email: tripal.meshram@buhlergroup.com Website: www. buhlergroup.com Stand contact: Tripal Meshram When it comes to oilseed preparation, Bühler is the natural partner for processing soyabeans, sunflower, rapeseed and mustard. It offers high-availability, low-downtime technology for the preparation of oilseeds prior to extraction. Products include seed cleaning, conditioning, cracking, de-hulling and flaking equipment for the extraction process.

B11

BUSS CHEMTECH AG Hohenrainstrasse 12A Pratteln 1, CH-4133 Switzerland Tel: +00 41 61 825 6462 Fax: +00 41 61 825 6737 Email: thomas.blocher@buss-ct.com Website: www buss-ct.com Stand contact: Thomas Blocher For 65 years, Buss ChemTech has been delivering innovative, reliable and safe process design solutions to oleochemical companies around the globe. From fatty acids to fatty amines, from non-ionic surfactants to quaternary ammonium compounds, Buss ChemTech can provide a design and scope of supply that fits your particular needs.

B02-A

CHEM-PROCESS SYSTEMS PVT LTD 15 Natraj Industrial Estate, Sanand-Viramgam Highway, Vasna-lyava, Sanand, 382170, Ahmedabad India Tel: 91 2717 284 148/50 Fax: 91 2717 284 194 Email: chem@chemprosys.com Website: www.chemprosys.com Stand contact: Mr Pankaj Nagdev

B15

CHEMTECH INTERNATIONAL LTD – TMCI PADOVAN GROUP Crown House, 1A High Street Theale Berkshire RG7 5AH, UK Tel: +39 0438 4147 Fax: +39 0438 501 044 Email: milenafavero@tmcigroup.com Website: www.padovan.com Stand contact: Milena Favero Chemtech International is a manufacturing and process engineering company supplying equipment to the butter, margarine, bakery, gelatine, cocoa and confectionery industries. Its technology caters for a diversity of formulations, enabling the discerning processor to vary both feedstock and finished product, should market conditions or consumer requirements dictate.

A28

C.M. BERNARDINI INTERNATIONAL S.p.a. Via Appia km 55.900 Cisterna Di Latina (LT), 04012 Italy Tel: +39 069 687 1028 Fax: +39 069 294 2564 Email: marco.muraca@cmbernardini.it Website: www.cmbernardini.it Stand contact: Marco Muraca

B01

DESMET BALLESTRA INDIA PVT LTD NITON, Block B First Floor, 11 Palace Road Bangalore, 560052 Karnataka, India Tel: +91 80 2235 2491/6659 8200 Fax: +91 80 2235 2492 Email: nsshetty@desmetindia.com Website: www.desmetballestra.com Stand contact: N Srinath Shetty Desmet Ballestra is the world leader in the fields of engineering and supply of plant and equipment for oil and fat, the oleochemical and biodiesel industries. The group has 60 years of unequalled experience, strong R&D capacity and the most extensive customer’s reference in the industry. The group has 17 local subsidiaries throughout the world and has set up more than 7,000 units in 152 countries.

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EXHIBITOR PROFILES

HYDERABAD INTERNATIONAL CONVENTION CENTRE | INDIA | 13-14 APRIL 2016

A25

DVC PROCESS TECHNOLOGISTS DVC House, Sr. no. 111/11/1 Oppt. Mercedes Benz Showroom, Pune Bangalore Highway Service Road Balewadi, Pune Maharashtra 411045, India Tel: +90 96858584 Email: ajinkya.chame@dvcprocesstech.com Website: www.dvcprocesstech.com Stand contact: Ajinkya Chame OEM DVC Process Technologists design, manufacture and supply various process technologies, equipment and turnkey solutions for oilseed extraction, refining and other value added processes for byproducts. DVC Process Technologists design and supply high degree process automation solutions to existing and new process plants.

B21

FAT & ASSOCIES 1 Rue d’Astorg, Toulouse 31000, France Tel: +33 567 339 206 Fax: +33 567 339 203 Email: contact@fat-associes.com Website: www.fat-associes.com Stand contact: Olivier Delannoy FAT & Associés is a privately owned economic and technical consultancy serving exclusively the oilseeds, oils and lipids industry. Founded in 2010, with an office in Toulouse, France, FAT & Associés provides market intelligence, analysis, and training to clients including agribusinesses, trading companies, oils producers and users in food, oleochemicals and biofuels.

A16

FENIX PROCESS TECHNOLOGIES PVT. LTD K-6/1, Malini, Erandwane CHS Nr Deenanath Mangeshkar Hospital, Erandwane, Pune Maharashtra, 411004 India Tel: +91 20 6500 8772 / 73 3254 2601 Fax: +91 20 2545 8454 Email: raomv@fenix.in; bd@fenix.in Website: www. fenix.in Stand contact: M. V. Rao

B04

FERRO OILTEK A-98, Anand Nagar, M.I.D.C. Ambernath East Thane, 421506, Maharashtra, India

Tel: +91 251 262 1779 Fax: +91 251 262 1362 Email: jenendra@ferrooiltek.com Website: www.ferrooiltek.com Stand contact: Janendra Bohr

A23

FIBROGRATS PVT LTD 30 - SK1 Compound, Lasudia Mori Behind Mittal Tol Kanta, Indore MP, 452 001 India Tel: +91 731 2802176; +98 20262129 Email: tarun@fibrograts.com Website: www.fibrograts.com Stand contact: Tarun Surana

B02-B

FINEPAC STRUCTURED PVT LTD J-25, S Block, MIDC, Bhosari Pune, Maharashtra 411026, India Tel: +91 20 6612 0661 Fax: +91 20 2711 9512 Email: sunilnaikwadi@finepacindia.in Website: www.finepacindia.in Stand contact: Sunil Naikwadi Finepac Structures Pvt Ltd can solve all your mass-transfer related needs (distillation, absorption, extraction and mixing).

A03

GEA INDIA 1406, Tower - B, Signature Tower 14th Floor, NH-8 South City 1, Gurgaon, 122 001, India Tel: + 91 124 4425 900 Fax: + 91 124 4425 943/944 Email: prabhat.kumar@gea.com Website: www.gea.com Stand contact: Prabhat Kumar GEA is one of the largest suppliers of process technology and components for sophisticated production processes in the food industry. For the oils and fats industry, it provides centrifugal separators, decanters and membranes for recovery and refining processes and dry condensing plants for oil deodorisation, fatty acid distillation, fractionation as well as glycerine distillation.

A10

HF PRESS+LIPIDTECH Seevestrasse 1, Postfach 90 05 52 Hamburg, 21079, Germany Tel: +49 40 77179 167

Fax: +49 40 77179 451 Email: nora.grupe@hf-group.com Website: www.hf-press-lipidtech.com Stand contact: Jan Ikels HF Press+LipidTech’s portfolio ranges from individual machines to complete systems for oilseed preparation, oilseed pressing and crude oil refining. The company also supplies special screw presses for animal waste products or special applications in the dewatering sector. Its crude oil refining technology (degumming/neutralisation, bleaching as well as deodorisation) is trendsetting.

A27

ISOTEX CORPORATION PVT LTD 1st Floor ‘Energy Center’ 178/1/C, GIDC Industrial Estate Naroda Ahmedabad, Gujarat 382330, India Tel: + 91 79 2280 4321 Email: sales@isotexcorp.com Website: www.isotexcorp.com Stand contact: Karan Vadodariya Isotex is a company established in 1978 and recognised for excellence in design, development and manufacturing of boilers and heaters. The product range covers natural circulation thermosyphon, thermic fluid heaters, steam boilers & high pressure steam boilers suitable for oil, gas & various coal/ biomass fuels.

A29

JIANGSU MUYANG GROUP CO LTD No. 1 Muyang Road Yangzhou Jiangsu, 225127 China Tel: +86 514 8777 0799 Cell Phone: +86 139 5105 6892 Fax: +86 514 8777 0733 Email: maniqian@muyang.com Website: www.muyang.com Stand contact: Mani Qian Muyang oils & fats is a subsidiary of Muyang Group, with a professional R&D team comprised of internationally and domestically well-known experts, committed to machinery engineering research and development of oilseed pretreatment, solvent extraction, oils and fats refining, and industrial automation. Muyang oils & fats is an integrated solution provider of engineering and services in oils and fats processing.

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EXHIBITOR PROFILES

HYDERABAD INTERNATIONAL CONVENTION CENTRE | INDIA | 13-14 APRIL 2016

B13

KEVIN ENTERPRISES PRIVATE LTD Plot 11, Street 10, M.I.D.C, Andheri East 400 093, Mumbai, Maharashtra, India Tel: +91 22 6147 8000 / +91 9860 6767 28 Fax: +91 22 6147 8001 Email: nickyd@kevincpp.com Website: www.kevincpp.com Stand contact: Nicky Dandwani Kevin Enterprises Private Limited is an ISO 9001 certified company, engaged in design, manufacture, supply and installation of mass transfer equipment, namely trays, packings (random and structured), internals and mist eliminators etc. Kevin Enterprises firmly believes that quality alertness is the prime focus conducive to achieving organisational goals â&#x20AC;&#x201C; total customer and employee satisfaction.

C05

KUMAR METAL INDUSTRIES PVT LTD + CROWN IRON WORKS + CPM SKET Plot #7, Mira Industrial Estate Mira Road (E) Western Express Highway Thane, 401104, India Tel: +91 98 200 20 406 ; Fax: +91 22 284 56 263 Email: kumarind@vsnl.com Website: www.kumarmetal.com Stand contact: Akshaya Manaktala Kumar Metal Industries is one of the leading manufacturers and exporters for edible oil mills, refineries and solvent extraction plants, with 70 years of expertise in this field and worldwide plant installation on a turnkey basis. It is ISO 9001-2008 certified and has a joint venture with Crown Iron Works USA in India (www.crowniron.com).

B03

MECTECH PROCESS ENGINEERS PVT LTD 366, Phase - II, Udyog Vihar, Gurgaon, 122016 Haryana, India Tel: +91 124 4700 800 ; Fax: +91 124 4700 801 Email: rajesh.bhandari@mectech.co.in anik.roy@mectech.co.in Website: www.mectech.co.in Stand contact: Rajesh Bhandari

C19

NICKELHUETTE AUE GMBH Rudolf-Breitscheid-Str. 65-75, 08280, Germany Tel: +49 377 150 50

Fax: +49 377 150 5209 Email: ortlepp@nickelhuette-aue.de Website: www.nickelhuette-aue.de Stand contact: Ben Ortlepp Nickelhuette Aue GmbH is offering a unique recycling service for Ni, Cu, Co, V, Mo and W containing spent catalysts from the oils and fats industries. These waste materials are converted into Ni, Cu, Co and V chemicals, which could be used as important raw materials in the chemical industries again.

C04

OILS & FATS INTERNATIONAL Quartz House, 20 Clarendon Road Redhill Surrey RH1 1QX, UK Tel: +44 1737 855000 Fax: +44 1737 855 034 Email: oilsandfats@quartzltd.com Website: www.oilsandfatsinternational.com Stand contact: Mark Winthrop-Wallace

A26

SAP FILTER PVT LTD Plot No.5, Sector 1, Vasai Taluka Ind Estate, Valive Phatta, Sativli, Vasai East Thane, Mumbai 401 208 India Tel: +91 250 2458982 Email: info@sapfilter.com Website: www.sapfilter.com Stand contact: Pradeep Pankan Since its genesis in 1996, SAP Filter Pvt Ltd has made a mark in manufacturing and exporting a spectrum of filtration equipment. Its product range is renowned for its quality and durability. The range of filtration equipment finds applications in various industries, such as vegetable oil refinery, chemicals, pharmaceutical and bulk drugs.

B20

SERVOTECH INDIA LIMITED 501, Triveni Kripa, Carter Road No. 3 Ambaji Mata Temple Borivali (East), Mumbai 400066 India Tel: +91 22 3373 5800 Fax: +91 22 2808 3296 Email: info@servotech-india.com Website: www.servotech-india.com Stand contact: Murli Lahoti

B16

SHARPLEX FILTERS (INDIA) PVT LTD R-664,Rabale MIDC, Navimumbai Navimumbai, Maharashtra State 400701 India Tel: +91 22 6940 9850 Fax: +91 22 27696325 Email: sales@sharplexfilters.com Website: www.sharplex.com Stand contact: Satish Khadke Sharplex is a leading manufacturer of process filtration equipment to the edible oil industry, having supplied 2,000 filters to more than 60 countries in the last 20 years. Sharplex is an ISO 9001:2004/14001/18001 company. Its manufacturing facilities are approved by Lloyds Registers for PED inspection. Sharplex is a CRISIL highest rating company.

A17

TECHNOILOGY â&#x20AC;&#x201C; CMBITALY Via D. Federici, 12 - 04012 Cisterna di Latina (LT) - Italy Tel: +39 06 9696 181 / +39 335 369 348 Fax: +39 06 9696 181 Email: mario.bernardini@technoilogy.it Website: www.technoilogy.it Stand contact: Mario Bernardini Technoilogy is an international engineering company specialising in the design and manufacture of plants for vegetable oils. The company is owned by the Bernardini family, active in the above field since 1948. Bernardini has developed into one of the foremost international companies in the field of vegetable oils, oleochemicals and biodiesel technologies.

A11

UNITED ENGINEERING (EASTERN) CORPORATION Plot 75, Sector 3, IMT Manesar Gurgaon, Haryana 122051, India Tel: +91 124 427 3011 14 Email: sales@uec-india.com Website: www.uec-india.com Stand contact: Rabindra Ghandhi United supplies turnkey projects for mechanical pressing of seed. It manufactures screw press for pre-pressing, full and final pressing with a capacity up to 500 TPD. It has installations in more than 40 countries worldwide. United has experience in cold pressing, with the largest cold-pressed canola oil plant just commissioned in Australia.

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Flaking Mill OLFB. The best way to treat your oilseeds. The flaking mill opens a new dimension when processing soy, rapeseed, sunflower and corn, among others. More than 500 tons of throughput per day, about 25 % less space requirements and a high-performance motor increase efficiency. The flake thickness is constant at all times during operation and can be set while running. This ensures a consistently high product quality and optimizes extraction yield. In addition, large swinging doors ensure good accessibility and facilitate maintenance. This is how to get the best out of oilseeds. More at www.buhlergroup.com /olfb

Innovations for a better world.

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The Industry’s Number 1 Choice

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March 2014 Vol 30 No 3 www.oilsandfatsinternational.com

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SUSTAINABILITY

RTRS: Expense without return?

CASTOR OIL

Deadly opportunity

RENEWABLE RESOURCES

Serving the international oils and fats industry for nearly 30 years

OLIVE OIL

The drive towards bioplastics in cars Exhibition catalogue inside

Maintaining standards

HIGH OLEIC OIL From niche to speciality

MIDDLE EAST

Staying afloat

SOUTH AMERICA

The China factor Brazil addresses infrastructure woes

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