OFI May 2016

May 2016 Vol 32 No 4 www.oilsandfatsinternational.com

DAIRY FATS The milk matrix

RUSSIA

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

VOL. 32 NO. 4 MAY 2016

PHOTO: HAPPYALEX / ADOBE STOCK

CONTENTS FEATURES

EDITORIAL:

PROCESSING

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

14

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

Explosive material

TRADE & PRICE FORECASTING

SALES:

16

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

An uncertain and volatile market

MARGARINE & SPREADS

ALTHOUGH DAIRY CONTAINS SATURATED FATS, RECENT EVIDENCE SHOWS DAIRY FOODS MAY HAVE BENEFITS FOR HEART HEALTH P29

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

NEWS & EVENTS

CORPORATE:

2

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

Spotlight on biotech

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 Annual Subscription: UK £145, Overseas £168.

Two years: UK £261, Overseas £302. Single copy £36

19

Healthy & sustainable

22

Keeping frying margarine under control

© 2016 Quartz Business Media ISSN 0267-8853 Website: www.oilsandfatsinternational.com

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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

6

Abengoa agrees to draft rescue plan as Nebraska plants restart 8

Biotech News

10

Transport & Logistics News

11

25

Monsanto threatens to leave India if royalties are slashed

29

Dairy fats and the milk matrix

Renewable Materials News

BASF and Avantium establish joint venture in FDCA and PEF

On the verge of a breakthrough

DAIRY FATS Oils & Fats International

Biofuels News

ADM expanding export terminal in Brazil

Printed by Pensord Press, Gwent, Wales

@oilsandfatsint

News

French Assembly passes palm oil tax

RUSSIA

A member of FOSFA

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

Comment

12

Diary of Events

32

Statistics

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NEWS

COMMENT

Spotlight on biotech B

ack in the late 1990s and early 2000s, the phrase ‘Frankenstein foods’ was often in the headlines and fear about GMOs was at its peak. These days, public concern could be more described as underlying.

Recently, though, there have been several interesting developments that are casting a spotlight on changes in the biotech arena.

For the first time in 20 years, the global GM planted area has declined, with the USA seeing the biggest fall (see p8).

Modern Farmer magazine has reported farmers saying that non-GMO crops are more productive and profitable. Farmers get paid more for conventional corn than GM corn and the market for non-GMO foods is growing. GM seeds cost more than regular seeds, and yields may be no better.

Indeed, a report by the USDA’s Economic Research Service (ERS) in 2014 said that “yields of herbicide-tolerant or insect-resistant seeds may be occasionally lower than the yields of conventional varieties”.

While GM seeds have led to a fall in insecticide use, herbicide use has grown as over-reliance on glyphosate (sprayed on GM crops engineered to be immune to glyphosate) has led to an increase in weed resistance, the ERS said.

Glyphosate is the most widely used herbicide in the world and in February, the US Food and Drug Administration (FDA) announced that it would, for the first time, begin testing foods such as soyabeans, corn, milk and eggs for residues of glyphosate (see p8). World Health Organization (WHO) cancer experts last year said glyphosate was a probable human carcinogen.

GM labelling

At the same time, several major food companies, such as General Mills, Campbell Soup, Mars and ConAgra, have announced that they will be introducing GM labelling for food products across the USA in order to comply with the state of Vermont’s compulsory GM labelling law, which takes effect on 1 July (see p8).

All this is not good news for GM proponents. And for the big seed and farm chemical companies, consolidation is in the air as they face falling sales.

US chemical giants Dow and DuPont announced a merger in December as they struggle with falling demand for farm chemicals, even as their plastics businesses thrive. In February, ChemChina made a US$43bn bid for Swiss pesticide and seeds producer Syngenta.

And yet we must not forget that GM seeds have still been the fastest adopted crop technology in recent times.

Studies have also shown that in developing countries, GM technology has boosted farmer income, reducing their costs with less pesticide use, cheaper and easier weed control and allowing adoption of more sustainable no tillage farming.

Interestingly, in India – which has the lowest soyabean productivity in the world – the recent OFI India conference in April was told by the executive director of the Soybean Processors Association (SOPA) that “GM is not a magic wand” to solve productivity problems. Other factors such as weather, small farm sizes, good quality inputs like fertiliser and seed, and adoption of technology are all issues which need addressing (read the full conference report in our June issue).

At the end of the day, farmers around the world need to grow more crops to feed us. And they will need all the tools available to do so.

They will grow what is most profitable according to market demand, and the cost and benefit of whatever technology is available – so they will ultimately decide how beneficial GM technology is.

French Assembly passes palm oil tax F

rance’s National Assembly approved an additional tax on palm oil used in food on 17 March, a move that has been condemned by top producer Malaysia.

The tax – part of a wider Biodiversity Bill – was earlier approved by the French Senate on 21 January.

It will start at €30/tonne (US$34) in 2017 and rise by €20 per year to €90 in 2020, and is on top of an existing tax of €104/ tonne.

This is significantly lower than the levels passed by the Senate, which amounted to €300/tonne for 2017; €500/tonne for 2018; €700/tonne for 2019; and €900/ tonne for 2020.

The new tax would exclude oils produced in a sustainable way but would also apply to copra (coconut) and palm kernel oil, Reuters said. It would not affect vegetable oils used in cosmetics and biofuels.

According to Reuters, the bill still needs to be reviewed in the upper house, likely in May or June.

Indonesia and Malaysia have

both said the tax is discriminatory and Indonesia raised the issue at the World Trade Organization (WTO) earlier in March.

France has said that the measure does not break WTO rules because it only targets oil that does not meet sustainable environmental criteria.

The Malaysian Palm Oil Council (MPOC) has condemned the move.

MPOC chief executive officer Tan Sri Dr Yusof Basiron, said: “The vote in the National Assembly runs counter to all evidence, and instead supports a protectionist, partisan agenda that discriminates against palm oil from the developing world.

“The ‘differential’ tax proposal is a clear violation of both WTO and EU rules.

“It is extremely disappointing that French MPs have chosen protectionism over evidencebased policy.”

France imports about 100,000 tonnes of Indonesian palm oil a year and imported 11,000 tonnes of Malaysian palm oil last year, Reuters said.

Glencore confirms sale of 40% stake in agricultural business

C

ommodity giant Glencore confirmed on 6 April that it had agreed to sell a 40% stake in its agricultural business to Canada Pension Plan Investment Board (CPPIB).

The sale – which had been expected since last year – would raise US$2.5bn to be used to reduce Glencore’s debt, BBC News said.

The Anglo-Swiss commodity trading and mining giant has been hit by falling commodity prices and has been undertaking a restructuring programme to reduce its US$30bn of debt (see OFI News, November/ December 2015).

Glencore trades in commodities including grains, oilseeds, rice, sugar and cotton. Its agricultural products division reported earnings before interest, tax, depreciation and amortisation (EBITA) of US$734M for 2015, a 39% year-on-year drop in profits, Agrimoney reported on 1 March. Glencore cited a “challenging” environment, attributed to “lower prices, lack of volatility and limited arbitrage opportunities”.

A weaker grains harvest undermined results in Canada, a particularly important market for Glencore, which bought grain handler Viterra four years ago. The company was also adversely impacted by the imposition of a punitive wheat export tax in Russia.

Glencore said processing profits were hurt by the dent to the biodiesel market from “regulatory changes and lower competing diesel prices”, leading to biofuel output dropping by 27% to 556,000 tonnes.

According to BBC News, Glencore accumulated much of its debts through its ambitious takeover of Xstrata in 2013. That deal added dozens of mines in numerous countries to the commodity trader’s business, leaving it as one of the world’s biggest miners and traders of the products of those mines.

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NEWS

Golden Agri aims for full palm oil traceability by 2020

I

ndonesia’s Golden Agri-Resources (GAR) announced a timetable on 26 April to achieve 100% traceability for all the palm oil its buys and processes by 2020.

The move builds on the mapping of GAR’s entire supply chain back to 489 mills which supply crude palm oil (CPO) and palm kernel oil to its processing facilities in eight locations in Indonesia, GAR announced in February.

GAR’s plan is comprised of two phases.

The first phase will establish traceability to plantation for the 44 mills owned directly by GAR, which accounts for about 40% of its total palm oil supply. This will involve tracing fresh fruit bunches (FFBs) purchased by those mills from independent traders and smallholders, which account for 10% of the supply to GAR

Nestlé to acquire Osem in Israel

S

wiss food giant Nestlé SA has agreed to buy the remaining minority stake of Israel’s largest listed food-maker, Osem, for about US$840M, it was reported on 4 March.

Nestlé already owns 63.7% of the company, which makes products including pasta, salad dressings, ice cream and Cheerios breakfast cereal.

The deal would be Nestlé’s biggest food acquisition since 2012, according to Bloomberg.

Osem is Israel’s third-largest food maker by sales, competing with market leader Tnuva and Strauss Group, the report said.

China’s Bright Food bought Tnuva last year for US$1.1bn.

Analysts quoted by Reuters said the timing was right as Osem had been trading at historically low multiples, while Nestlé typically sought to hold 100% of firms that it owned.

mills. The remaining 90% of FFB supply comes from known sources such as GAR’s own estates and plasma smallholders. GAR aims to complete this phase by the end of 2017.

The second phase, which will run concurrently, is to achieve traceability to plantation for the independent third-party mills that supply GAR. This process is expected to be completed by the end of 2020.

GAR said it would kick off a pilot phase involving a GAR-owned mill and an independent mill and use the lessons learnt to replicate the process with other mills.

“This work will focus on tracing smallholders directly and via intermediaries through chain of custody documentation and verification. This will also help identify the suppliers who need

the most support in strengthening their social and environmental practices.”

GAR is one of the world’s leading palm oil plantation companies, with a total planted area in Indonesia of 484,221ha (including smallholders) as of 30 September 2015.

It is also a significant buyer, procuring over 7M tonnes of CPO and palm kernel from independent and GAR-owned mills in 2015.

In Indonesia, its main activities include cultivating oil palm trees; processing FFBs into CPO and palm kernel oil; and refining CPO into products such as cooking oil, margarine and shortening. It also has operations in China and India including a deep-sea port, oilseed crushing plants, and production plants for refined edible oil and other food products.

Unilever cuts artificial ingredients

U

nilever has removed artificial flavours, colours and preservatives from its Becel margarine brand in Canada, the latest consumer packaged goods (CPG) brand to turn to more natural ingredients.

The change affects Becel Original, Buttery Taste, Olive Oil and Vegan in Canada.

Valerie Rousseau, senior assistant brand building manager, Unilever Canada, said all the company’s markets were moving through this recipe change at different rates, with Europe in the lead last year.

In Canada, Becel’s colour comes from beta-carotene, and flavours from buttermilk powder and other naturally-sourced proprietary flavours. Artificial preservatives have been replaced with salt, which reduces shelf-life from seven to six months.

According to Marketing Magazine, several CPG giants had recently made commitments to remove artificial ingredients from their products.

General Mills has pledged that all its cereals will be free of artificial flavours and colours by 2017. Nestlé said last year that it would remove artificial ingredients from all its 250 chocolate products worldwide. And Kellogg’s has pledged to take out artificial ingredients from cereals and snack bars by the end of 2018.

Meanwhile, Unilever’s spreads business, which was put into a stand-alone operating unit last year, continues to be “a drag on the overall foods performance”, CEO Paul Polman said after the publication of Unilever’s 2015 financial results. “We saw a decline of 5% as we have not been able to stem the ongoing market decline compounded by a drop in butter prices ... It is still early for the unit and we will evaluate its course over 2016.”

Asian traders overtake ABCDs as top Brazil buyers

T

he world’s agribusiness ABCDs – Archer Daniels Midland (ADM), Bunge, Cargill and Louis Dreyfus – are no longer the top buyers of Brazilian oilseed and grain, according to Reuters, which analysed 10 years of shipping data from Williams Shipping Agency.

In 2003, the ABCDs accounted for 57% of all oilseed and grain purchases from Brazil, with Asia accounting for 9%. However, in 2015, Asian traders including China’s COFCO, bought 45% of Brazilian soyabeans, meal and corn, with the ABCD traders accounting for a 37% share.

This was a turnaround from 2014, when the ABCDS bought 46% of Brazil’s grain exports, compared to 36% by Asian traders.

Increased population growth in China and other parts of Asia were fuelling the change as Asian traders seek to buy supplies directly from Brazil.

Reuters said that this year, while the ABCDs showed flat growth, Asian traders including Japan’s Itochu, Agrex/Mitsubishi and Mitusi; China’s China Agri, Noble Agri and Nideria (all controlled by state-owned COFCO); South Korea’s CJ Group and Singapore-based Wilmar International expanded their share of export purchases at a much faster rate.

This had led them to invest in infrastructure, including ports and terminals to boost transport efficiencies, as well as their trading skills.

Japan’s Marubeni, for example, was the second largest buyer of Brazil’s grains and oilseeds after Bunge, and conducted a large part of its purchases through a maritime terminal in São Francisco do Sul, which it acquired in 2011. Itochu also boosted its grain purchases 10-fold last year after forming a joint venture with local grain company Naturalle in 2014.

IN BRIEF EGYPT: Archer Daniels Midland Company (ADM) announced on 21 April that it had completed its acquisition of a 50% stake in Cairo-based Medsofts Groups to form the 50-50 ADM Medsofts joint venture. The joint venture, announced in December (see OFI News, March/April 2016), will offer commodity merchandising, transportation and delivery services to customers in Egypt.

It will handle more than 2M tonnes/year of grains, oilseeds and soft commodities destined for Middle East and North Africa; a local grain distribution operation. It will also own a 50% share of Nile Stevedoring & Storage Company, which operates one of the largest grain port facilities in Egypt at the Port of Alexandria.

CHINA: China’s plan to impose tougher standards from 1 April on the percentage of foreign material (dockage) allowed in Canadian canola imports has been postponed until 1 September 2016, reports Real Agriculture. China has been concerned that black-leg disease might be spread from Canadian canola shipments.

The Canadian Grain Commission (CGC) allows a maximum of 2.5% dockage and said there was “virtually no risk” at this level, and that 1% could be physically possible to achieve and extremely costly.

There has been speculation that China is trying to slow imports because of ample domestic inventories (see OFI News, March/April 2016).

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NEWS

IN BRIEF ASIA: Singapore-based commodity producer and supplier Olam International posted a net loss of S$64.3M (US$45.7M) for the year ending December 2015, down from a net profit of S$591M (US$428M) for the same period a year earlier, according to a Nikkei Asian Review report on 29 February. The US$1.2bn purchase of Archer Daniel Midland’s global cocoa business, completed in October 2015, and stock valuation losses weighed on the bottom line.

The report said Olam’s revenue for 2015 fell 3.6% to US$13.79bn due to the closure of lower-margin businesses.

WORLD: Only one of 14 companies surveyed – Ferrero – could trace nearly 100% of its palm oil back to the plantation it is grown on, Greenpeace International said on 3 March when it released its ‘scorecard’ of 14 global consumer goods companies which have ‘no deforestation’ policies in place.

The other companies reviewed were Colgate-Palmolive, Danone, General Mills, Ikea, Johnson & Johnson, Kellogg, Mars, Mondelez, Nestle, Orkla, PepsiCo, Procter & Gamble and Unilever.

The companies were assessed on responsible sourcing, transparency and industry reform. Ferrero and Nestlé were singled out as on track; while Colgate-Palmolive, Johnson & Johnson and PepsiCo were assessed as ‘failing’.

‘Failing’ was judged as making slow progress towards tracing palm oil to the mill; and was relying on Roundtable on Sustainable Palm Oil (RSPO) certification as verification of ‘no deforestation’ policies, with no other meaningful action to reduce exposure to deforestation, Greenpeace said.

MEXICO: Specialty chemicals company Clariant announced that it had increased production capacity for its Tonsil bleaching earths at its Puebla site by 30%.

The additional capacity came on stream in April, concluding two years of work to expand its production line at Puebla, its second biggest site for bleaching earth.

Solazyme rebrands; signs fiveyear deal to supply Unilever

M

icroalgae pioneer Solazyme, now known as TerraVia, announced a five-year global agreement on 14 March in which it will supply Unilever with renewable algae oils for use in personal care products, representing revenues of more than US$200M. Unilever began incorporating the renewable algae oils in its products in 2014, produced at the Solazyme Bunge Renewable Oils facility in Brazil.

Solazyme CEO Jonathan Wolfson said: “The growth of our partnership reflects over seven years of collaboration, during which we have demonstrated our ability to deliver unique, high performance, and highly sustainable oils at scale, as we continue our shift to focus on higher value products.”

Earlier in March, Solazyme announced it was focusing exclusively on food, nutrition and specialty

ingredients under the new name, TerraVia, while spinning off its industrial arm. The TerraVia portfolio includes: Specialty Food Ingredients including the AlgaVia powder and protein ingredients and AlgaWise algae oils for cooking.

Consumer Food Products including consumer brands such as Thrive culinary algae oil.

Animal Nutrition Ingredients, a new area, where initial products will be announced soon.

Industrial products for markets including fuels, industrial oils and the oilfield business will be grouped together as Solazyme Industrials and will not be part of TerraVia’s focus, with Solazyme seeking partners or buyers in the next 12-18 months.

Xf confirmed as cause of disease 79% rise in olive

T

he European Food Safety Authority (EFSA) said on 29 March that a new study has confirmed that Xylella fastidiosa is responsible for the olive quick decline syndrome destroying olive trees in southern Italy.

An investigation has been taking place over the last few years in Apulia to distinguish which species are hosts of Xf CoDiRO (the specific name of the Xf strain observed in the region).

The study involved exposing different perennial crops, including olive, grape and almond, to the bacterium through artificial inoculation and exposure to infectious insect vectors.

Head of EFSA’s Animal and Plant Health Unit, Giuseppe Stancanelli, said “These findings confirm that the CoDiRO strain of Xf causes olive dieback. This is an important step forward

because we can only accurately assess the risk of an epidemic spreading from Apulia if we fill knowledge gaps on the host range and epidemiology of the Apulian strain.”

Both the inoculated olive plants and field plants exposed to insect vectors showed severe symptoms including desiccation and dieback.

However, some varieties of olive reacted in different ways.

In Coratina, Leccino and Frantoio the bacterium had a lower concentration and took longer to colonise.

According to the study, an insect that is widespread in Apulia, the spittlebug, is able to transmit the bacterium to olive, as well as other species.

Subsequent tests will aim to identify tolerant or resistant varieties of olives.

oil consumption

G

lobal consumption of olive oil has grown by 79% over the last 25 years, powered in part by associated health benefits, according to a report by the Italian farmers’ group Coldiretti published by the Olive Oil Times.

Japan experienced the largest, growth in the 25-year period, showing a 1,400% consumption jump from 4,000 tonnes consumed in 1990/91 against 66,139 tonnes in 2016/16.

Total world olive oil consumption in 2015/2016 was 3.3M tonnes. Italy was the top consumer at 640,443 tonnes, followed by Spain with 540,133 tonnes and the USA, which consumed 339,512 tonnes, a 250% increase against 1990/91.

In contrast, traditional consumer countries like Italy showed modest expansion.

GrainCorp moves to add value and boost efficiency

A

ustralian oilseed crusher, GrainCorp Oils, has started a major value-adding and processing efficiency move in which it will spend US$61M to upgrade its Melbourne food products packing plant and move its spreads and commercial oil production and packing lines from Brisbane, Farm Weekly reported on 6 April.

Work to upgrade the Numurkah plant in northern Victoria to produce refined food grade canola oil had just finished. In addition, the site’s canola seed crushing

operations would be expanded by 25% next year to 240,000 tonnes/year as part of a US$36M upgrade.

GrainCorp also has crushing and refining plants in Millicent, south Australia and Pinjara, western Australia. It also has a refining and blending facility in New Zealand and 14 bulk liquid terminal sites in Australia, China and New Zealand.

GrainCorp announced the upgrades at the Melbourne and Numurkah plants two years ago,

Farm Weekly said. It then began to shift advanced oil processing and packing to the upgraded sites from the 80-year-old former rendering plant in Brisbane.

The Melbourne site includes a new food grade testing laboratory, 1.5M litres of bulk storage, warehousing and an electricity network upgrade.

US-based ADM is GrainCorp’s biggest shareholder, and contributed technical expertise to the Melbourne and Numurkah developments, the report said.

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BIOFUELS NEWS

IN BRIEF FINLAND: Chinese company Kaidi announced plans in February to invest US$1.12bn in a biorefinery in Finland producing 200,000 tonnes of drop-in diesel and gasoline from wood annually, Biofuels Digest reported. The facility would be the first of its kind and was scheduled to be commissioned by the end of 2019.

THAILAND: The government is phasing out 10% ethanol fuel blends by 2018 and 2027 and introducing E20 and E85 instead, Biofuels Digest reported in March. The decision would triple demand to over 25M litres/day of ethanol. Excise taxes will be levied on the blends to counteract cheaper fossil-based fuels.

ARGENTINA: On 4 April, the government boosted ethanol blending to 12% from 10%, with immediate effect. On 11 April, it then announced plans to introduce a 26% ethanol blending mandate from next year. The 26% mandate would bring the country in line with other countries in the region such as Brazil and Paraguay, Biofuels Digest said. On the same day the government also cut the export levy on biodiesel to 3.65% for April, reduced from 6.4% for March.

HONG KONG: First Pacific has disposed of its stake in sugar company Victorias Milling Co and says it plans to build on its investment in sugar and ethanol producer Roxas Holdings, Inc, it was announced on 18 February

by Business World Online.

WORLD: UK petroleum giant BP Plc increased its ethanol production by 47% last year compared to 2014, according to SeeNews. The company’s renewables activities comprise a biofuels business in Brazil and an onshore wind business in the USA, which it said made it the largest operated renewables business among its oil and gas peers, the report said.

It is currently working with DuPont to develop and commercialise advanced biofuel Butamax biobutanol, that can be blended in higher proportions.

Abengoa agrees to draft rescue plan as Nebraska plants restart

H

eavily indebted Spanish renewable energy developer Abengoa agreed to a draft rescue plan on 10 March in an attempt to avoid insolvency, Reuters reports. The rescue plan agreed that creditors would cut debt and inject €1.8bn into the company over a period of five years.

The draft deal still needed to be approved by creditors holding at least three-quarters of Abengoa’s debt, Reuters added. Originally, Abengoa only had until 28 March to reach an insolvency deal. However on 6 April a Spanish court gave the company an additional seven months to reach a deal meaning it would get until 28 October to convince banks and shareholders to sign off the restructuring transaction.

In the USA, Abengoa said on 12 April that a US bankruptcy court had approved financing which would help the company to restart its Nebraska ethanol plants, according to a Biofuels International report.

Up to US$41M was approved by the court “for the six Abengoa Bioenergy companies that had recently filed for Chapter 11 bankruptcy protection”. Abengoa president and CEO, Antonio Vallegspir said in a press release: “Resuming production operations at our Nebraska plants is an important step which we believe will help maximise the value of the assets for the best interests of all stakeholders”.

In further developments, according to Sonoran Weekly Review, a local court in Mexico ordered the seizure of Abengoa’s assets on 13 April, in response to action brought against the company bondholders.

Abengoa also released its 2015 results in March, which showed ethanol margins were lower than in 2014, according to Biofuels Digest. In 2015, it generated €5.76bn in revenue and €515M in EBITDA, compared to €7.15bn in revenue and €1.41bn in EBITDA 2014.

ADM exits Brazil ethanol market

A

rcher Daniels Midland (ADM) announced on 1 April that a deal had been made to dispose of its only ethanol plant in Brazil, Agrimoney reported.

The distillery in Minas Gerais, and the sugarcane plantation attached, had a processing capacity of 1.5M tonnes/year of sugarcane and an ethanol production capacity of 37,000 gallons/ year. Provided it received regulatory approval, the plant would be sold to JFLim Participacoes, the report said.

ADM announced in February that it was mothballing the facility, which had been shut down since December for maintenance. Chris Cuddy, president of ADM’s corn processing segment said, “As our sole sugarcane ethanol operation in Brazil, this asset is too small for ADM to compete effectively in a challenging ethanol environment”.

Demand for ethanol was under pressure in Brazil and consumption was down by 6.6% in the year to April, according to fuel regulator ANP data.

ADM’s announcement followed the news that it is mulling the sale of three of its US ethanol plants. In 2015, ADM’s biofuel segment earnings were down 79% to US$149M, according to Agrimoney.

Global developments in biojet fuel

U

nited Airlines announced on 11 March that it had become the first US airline to begin using commercial-scale volumes of sustainable aviation biofuel for regularly scheduled flights from Los Angeles International Airport.

United agreed to purchase up to 15M gallons of biofuel from AltAir Paramount over a three-year period. Flights would use 30% biofuel and 70% traditional fuel blend, The Washington Post said.

KLM Royal Dutch Airlines announced on 31 March that it was launching a series of biofuel flights from Oslo to Amsterdam.

The biofuel would be supplied by fuel trucks so that its efficiency could be compared with traditional jet fuel. The biofuel was to be

produced from sustainably certified camelina oil and was fully EU RED compliant.

The camelina fuel was produced as part of the ITAKA project (Initiative Towards SustAinable Kerosene for Aviation), which worked on producing and testing sustainable bio jet fuel.

In April, Air Canada announced its participation in Canada’s Biojet Supply Chain Initiative (CBSCI). The project was a threeyear collaboration between 14 organisations and would introduce 400,000 litres of biojet fuel into a shared fuel system at a single Canadian airport. CBSCI’s objective was to begin developing a more efficient operational framework, Air Canada said.

Brazil biodiesel blending boost

B

razil has officially signed into law a bill to boost biodiesel blending in the country, Biodiesel Magazine reports on 29 March.

On 3 March, the House of Representatives approved the bill, which would see blending boosted to 8% by 2017, from the current 7%. This would then increase to 9% by 2018, and up to 10% by 2019. Brazilian President Dilma Rousseff signed the bill into law on 29 March.

Biodiesel Magazine said the measure was viewed as a demand guarantee for Brazil.

The law would also allow blending of up to 15% when engine testing is completed and the National Energy Policy Council approves the results.

Colombia ethanol production up 7%

C

olombia produced 435M litres of ethanol in 2015, an increase of 7% from the 406M litres produced in 2014, Platts reported in February. The figures came from statistics released by Biofuels Federation, a Bogotabased trade group.

In October 2015 the 400,000 litres/day Riopaila plant in southwestern Valle de Cauca was completed. The rise in ethanol production was mainly attributed to the new plant, which boosted installed ethanol capacity in Colombia by 130%, now 1.75M litres/day.

6 OFI – MAY 2016 www.oilsandfatsinternational.com

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BIOFUELS NEWS

Louis Dreyfus’ WTO rules Organization Indonesia plant The(WTO)WorldruledTradein favour several of Argentina’s starts production ofcomplaints filed with the ouis Dreyfus Company (LDC Indonesia) announced on 6 April that its first biodiesel plant in Asia has started production.

The plant is located in Lampung in Sumatra, Indonesia and has a capacity of 420,000 tonnes of palm methyl ester (PME) and 50,000 tonnes of crude glycerine per year.

As the PME production unit is located adjacent to LDC’s crude palm oil (CPO) refinery, it will use palm oil products from the refinery as feedstock.

The new plant would help Indonesia meet its B20 blending mandate, coming into force this year, LDC CEO Imram Nasrullah said.

It was strategically located near a storage terminal and a port, meaning it was well-positioned to supply PME internationally, the company added.

LDC said its Indonesian CPO refineries are Roundtable on Sustainable Palm Oil certified. Its operations also comply with the requirements of Europe’s Renewable Energy Directive and the International Sustainability and Carbon Certification.

Dumping alleged

P

eru alerted competition authorities in April that Argentina was dumping biodiesel on the market though imports facilitated by Repsol and Petroperú, Biofuels Digest reported. Peru said the imports had added up to US$500-600M worth of imported biofuel to the market, and was arriving US$200-250/tonne cheaper than locally-produced fuel.

international body against antidumping duties imposed on biodiesel imports by the EU, Reuters reported on 29 March.

In addition to the ruling, it said that the EU did not violate the WTO’s anti-dumping agreement, the Buenos Aires Herald said. But it did uphold the claims that the EU had been

inconsistent with the pact.

The WTO’s ruling, which began in late 2013, said the EU must bring its measures into conformity.

Head of Argentina’s biodiesel industry chamber, CARBIO, Luis Zubizarreta, said the decision was “excellent news”, according to Reuters. “The EU’s decision regarding Argentine biodiesel was unjust, now we’ll be able to reopen a market that we had developed very well”.

The European Biodiesel

Board (EBB) said it expected the European Commission (EC) to appeal. It noted that the WTO panel did not put into question the possibility of adjustments of costs and prices, but it failed to understand how the panel could, therefore, come to the conclusion that the EC’s methods (used to correct distortions caused by the Argentinean differential export tax (DET) system) were in violation of WTO law.

50 2015

L

in favour of Argentina

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Valero Energy Corp sues EPA over RFS

I

n February, the largest US petroleum refiner and third-largest ethanol producer Valero Energy Corp became the latest company to sue the EPA over renewable fuel targets issued last November, Bloomberg said.

Lawsuits have been filed by both biofuel and petroleum industry advocates over the EPA’s targets.

The petroleum industry said that targets demanded more ethanol than it was safe to use in engines, whereas biofuel supporters said the mandate was designed to increase the biofuel’s share of motor-fuel consumption.

The EPA set a target of 14.5bn gallons of corn-based ethanol in 2016, less than the 15bn first outlined in 2007, but more than the 14bn target proposed in May.

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7 OFI – MAY 2016 www.oilsandfatsinternational.com 3381_FM_Tonsil_128x185_en.indd 1

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03/05/2016 14:30

BIOTECH NEWS

IN BRIEF USA: Some Midwest grain elevators may reject dicambatolerant soyabeans, including the Roundup Ready 2 Xtend trait, because it had not been approved by the EU, according to Oilseed & Grain News.

While China had approved the trait in February, firms such as ADM, Alliance Grain and Grainland Cooperative had indicated they would not accept crops containing GM traits not been approved by major export markets.

The EU accounted for around 10% of soyabean and 10% of US meal exports, the report said.

GM crop acreage falls for first time

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he global planted area used for GM crops declined for the first time in 20 years during 2015, according to the International Service for the Acquisition of AgriBiotech Applications (ISAAA).

GM soyabeans, corn, cotton, canola and other crops were sown on 179.7M ha across 28 countries last year, compared to 181.5M ha in 2014, the ISAAA said in its annual report on GM crops.

The USA had the most area planted to GM crops, at 78.9M ha, but saw the largest decline in 2015, with a fall of 2.2M ha.

The country also grew the largest variety of GM crops including soyabean, cotton, sugar beet, squash and potato.

Brazil came in second place, with about 44M ha, and saw a rise of 2M ha.

Argentina, India and Canada made up the rest of the top five countries, with 24.5M ha, 11.6M ha and 10.9M ha planted to GM crops, respectively.

Only two of the top 10 countries saw an increase, Brazil and Argentina (which was up 200,000ha).

The drop in global GM planted areas comes after 19 years of consecutive growth, the ISAAA said.

Despite the fall in planted area in 2015, the organisation said GMO crops were still the “fastest adopted crop technology in recent times,” with the global hectarage used to grow these crops increasing 100-fold between 1996 and 2015.

Monsanto threatens to leave India if royalties are slashed N

umber one global seed supplier Monsanto Co has threatened to leave India if the government imposes a 70% cut in royalties that local firms pay for its GM cotton seeds, Reuters reported on 4 March.

A farm ministry committee has recommended the cut in royalty fees paid to Mahyco Monsanto Biotech (MMB), Monsanto’s joint venture with India’s Mahyco.

MMB licensed a gene that produced its own pesticide to several local seed companies in lieu of royalties and an upfront payment, commanding about 90% of the market, Reuters said.

The committee was set up last year to investigate complaints that MMB fees were too high, but the

farm ministry had yet to make a decision on its recommendation, the report said.

“If the committee recommends imposing a sharp, mandatory cut in the trait fees paid on Bt-cotton seeds, MMB will have no choice but to re-evaluate every aspect of our position in India,” Shilpa Divekar Nirula, Monsanto’s chief executive for the India region, said in a statement.

“It is difficult for MMB to justify bringing new technologies into India in an environment where such arbitrary and innovation stifling government interventions make it impossible to recoup research and development investments,” she said.

In addition, MMB has filed a

case in a Delhi court, challenging the committee’s authority to set the trade fee between MMB and local seed companies.

The committee has also recommended cutting Bt cottonseed prices to about 800 rupees (US$12) for a 400g packet from the current price of 8301,100 rupees (US$12.50-$16.50) in different parts of the country, Reuters said.

MMB launched a GM cotton variety in India in 2002 and Monsanto said the use of Bollgard technology had increased cotton yields to 552kg/ha in 2013/14 from 302kg/ha in 2002-03, transforming India from a cotton importer to the world’s top producer.

USDA to test for glyphosate in food for first time

T

he US Food and Drug Administration (FDA) announced in February that it would, for the first time, begin testing foods such as soyabeans, corn, milk and eggs for residues of the weed killer, glyphosate.

World Health Organization (WHO) cancer experts last year said the chemical was a probable human carcinogen.

Glyphosate is the active ingredient in Roundup, the most widely used herbicide in the world, which is produced by Monsanto. Its use rocketed after Monsanto introduced “Roundup Ready’ crops, such as soyabeans and corn, in the mid-1990s.

These were genetically engineered to be immune to glyphosate, meaning farmers could spray the pesticide directly over their crops, Civil Eats said.

As glyphosate was now off patent, hundreds of herbicide products around the world contain it.

FDA press officer Lauren Sucher told Civil Eats that “the agency is now considering assignments

for fiscal year 2016 to measure glyphosate in soyabeans, corn, milk and eggs, among other potential foods.”

Both the FDA and the US Department of Agriculture (USDA) routinely conduct testing of foods for residues of hundreds of pesticides but have not tested for glyphosate.

“Glyphosate levels, if present in genetically engineered corn and soyabeans, are likely to be reduced by the processing done to those foods,” FDA press officer Lauren Sucher told Newsweek.

While some European countries like Denmark, Sweden, France and the Netherlands had imposed restrictions to limit humans’ direct contact with Roundup, in 2013 the EPA raised the threshold for which humans could be exposed to glyphosate in some foods, Newsweek said.

Monsanto denies that glyphosate is a carcinogen but faces several lawsuits from farmers who say the exposure to the chemical caused their cancer.

US firms introduce labelling after voluntary law rejected

O

n 16 March, the US Senate rejected a bill that would have made GMO labelling in food products voluntary.

The bill would have superseded state legislation, including Vermont’s compulsory GM law, scheduled to take effect on 1 July.

Opponents to the bill said the defeat was a victory for “America’s right to know”.

“People want to know if they food they buy contains GMO ingredients,” said Wenonah Hauter, executive director of Food & Water Watch.

Two days after the bill’s defeat, General Mills announced plans to label products containing GM ingredients across the USA, the second major US food company to do so after Campbell’s Soup Co decision in January (see OFI Biotech News, March/April 2016).

Mars, ConAgra Foods and General Mills have also followed suit.

Jeff Harmening, CEO of General Mills’ US retail business, said the company could not label its products for only Vermont state. “Therefore, consumers all over the US will soon begin seeing words legislated by the state of Vermont on the labels of many of their favourite General Mills products.”

The company still wanted to see a national measure introduced, he added.

The Vermont law requires that any food offered for sale must be labelled as GMO if it is “entirely or partially produced with genetic engineering.”

The law also prohibits such food from being labelled “natural” and sets out statutory damages of “not more than US$1,000 per day, per product.”

8 OFI – MAY 2016 www.oilsandfatsinternational.com

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03/05/2016 09:46

TRANSPORT & LOGISTICS NEWS

ADM expanding export terminal in Brazil

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rcher Daniels Midland Company (ADM) said on 5 April that it has begun significantly expanding and modernising its Brazilian export terminal in Santos, São Paulo.

Work on the terminal will expand storage and grain handling capacity from 6M tonnes to 8M tonnes annually. ADM will also enhance environmental controls significantly.

IN BRIEF BRAZIL: The key Tietê-Paraná waterway re-opened at the end of January after a 20-month closure due to drought and the diversion of water for electricity, reports the Estado de S Paulo newspaper. The waterway is a key transport route for exports of soyabeans, corn, fertiliser and other agricultural products, connecting to the Port of Santos near São Paulo.

Its closure forced more of Brazil’s production from the states of São Paulo, Paraná, Minas Gerais, Mato Grosso and Mato Grosso do Sul onto more expensive and precarious road and rail systems.

The paper said each of the waterway’s barge trains could carry the equivalent of 200 highway trucks of cargo.

Water that could have helped maintain river and canal levels was used instead for electricity due to rising energy demand and the delay of new power projects.

São Paulo, South America’s largest city, came critically close to running out of drinking water, the Estado de S Paulo report said. Rains at the end of 2015 intensified in January, helping water levels on rivers in Brazil’s southeast and central-west to recover from one of the worst droughts in decades.

USA: Southeast oil products and biofuels marketing and logistics firm, Lincoln Terminal, announced in February that it had acquired the Eco (former Crown) terminal in Charlotte, North Carolina, expanding its terminal network to four, reports Tank Terminal. The Charlotte terminal, with a total capacity of 130,000 bbl, serves gasoline, ultra low sulphur diesel (ULSD), ethanol and biodiesel.

According to Greg Morris, president of ADM’s Oilseeds Processing business, “The Port of Santos is one of two major ADM gateways from Brazil to customers around the world, and with this expansion we are enhancing our ability to move crops from there to Asian, African and European customers”.

As well as improving the terminal’s capacity and efficiency,

ADM will install a range of new technologies to help minimise particulate emissions.

In addition, ADM said it was continuing the expansion of its jointly owned export terminal in Barcarena. Volume would be increased to 6M tonnes/year.

According to Reuters, bottlenecks at Brazil’s southern ports are becoming more costly and grain traders in the country

are working to open alternate northerly routes, giving rising to Baracarena terminal, in which ADM recently sold a stake to rival trader, Glencore.

The original Santos Port concession began in 1997 and an agreement was signed last year to continue operations at the port until 2037.

Work at the facility is due to be completed by mid-2017.

Cargill builds joint venture terminal on Black Sea

A

new grain terminal being built by US agri giant Cargill and Ukraine’s MV Cargo at the Black Sea port of Yuzhni is expected to be completed by spring 2018.

Cargill and MV Cargo signed a share purchase agreement on 24 February, legally committing the two companies to building the US$100M terminal.

This follows a memorandum of cooperation signed with Ukraine’s Sea Ports Authority (USPA) on 13 August 2015, when the port authority agreed to dredge the water area adjacent to the terminal down to 16m.

“This will enable the new terminal to handle large vessels with a deadweight of up to 100,000 tonnes,” Cargill said in a statement.

Near Ukraine’s biggest port city of Odessa, the terminal will have a loading capacity of 5M tonnes/ year of grain and other commodities, Ukrainian infrastructure minister Andriy Pivovarsky said in a Reuters report.

The joint venture would operate the terminal and

Cargill would be a major customer, but the facility would also be open to third parties, the report said.

Ukraine was currently able to ship about 35M tonnes of grain from its sea ports but the government would like to double export loading capacity within the next five years, Reuters said.

Andreas Rickmers, head of Cargill’s grains and oilseeds business in Europe, said: “Through this investment, Ukraine’s port infrastructure will be expanded and will provide greater efficiencies to connect Ukraine’s surplus agricultural crops with the parts of the world demanding more food. This new port will benefit Ukrainian farmers, the overall economy and global food security. It will add to our footprint of port facilities in the Black Sea region and confirms our intention to keep investing in Ukraine’s agricultural sector.”

Odessa-based MV Cargo said the company expected the project to generate over UAH 300M (US$11.45M) in tax payments annually and to create employment for around 350 people.

Capesize port in South Australia Record exports

A

ustralia’s Emerald Grain is teaming up with mining company Iron Road to develop a new port in Cape Hardy, which will give it a presence in the South Australian grain handling and export markets, Oilseed & Grain News reported in March.

Once completed, the project would be the only Capesize port (capable of handling ships carrying 180,000-220,000 tonnes) of its size in South Australia, unlocking new options for local growers.

Emerald plans to build a ship loader, grain conveyor and steel bunkers and silos with up to 1M tonnes/year of grain capacity, the report said.

Emerald is owned by Japan’s Sumitomo Corporation and is one of Australia’s largest grain marketing and supply chain businesses, storing and handling wheat, canola and barley.

It handles some three million tonnes/year of grain and owns the Melbourne Port terminal, grain handling sites in Victoria and New South Wales, and owns a share of the new Port Kembla terminal in New South Wales.

Also in Australia, the CBH Group announced in March that it would be halving its receival sites from 202 to 100 in three, five and 10-year timeframes.

The country’s largest co-operative is based in Western Australia and stores, handles, transports, markets and processes grain, barley, canola, oats and lupins.

The group would invest AU$750M in improving and restructuring its remaining sites, with the aim of increasing the speed and efficiency of receivals by 20% during harvest times, according to Oilseed & Grain News. It was also aiming to handle 2.2M tonnes of grain/month through its four port terminals in Albany, Esperance, Geraldton and Kwinana.

from Paranaguá

S

oya was the most important product shipped from the port of Paranaguá in 2015, with 8.5M tonnes exported last year, reports World Grain.

The port shipped 30.3M tonnes of products in 2015, an increase of 8.8% compared to 2014. Soyabeans made up 8.5M tonnes of the total, surpassing the previous high of 7.7M tonnes in 2013. The port also exported 4.12M tonnes of corn.

José Richa Son, secretary of infrastructure and logistics at Paranaguá said the port was able to continue shipping last year despite a 44% increase in rain due to the construction of berths and the investment of US$14.71M between March and December last year to install four new shiploaders, which increased loading capacity by 33%, and loading speed.

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

BASF and Avantium establish joint venture in FDCA and PEF

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hemical companies BASF and Avantium announced on 15 March that they planned to set up a joint venture to produce and market furandicarboxylic acid (FDCA), as well as market polyethylenefuranoate (PEF) based on this new chemical building block.

The joint venture will further develop Avantium’s production process for FDCA using plant-based industrial sugars, and build a 50,000 tonnes/ year FDCA plant at BASF’s Verbund site in Antwerp, Belgium.

“The aim is to build up world-leading positions in FDCA and PEF, and subsequently license the technology for industrial scale application,” the companies said in a press release.

The news follows on from Avantium’s agreement with Japan’s Mitsui & Co to commercialise FDCA and PEF in Asia, announced in December 2015 (see Renewable Materials News, OFI March/April 2016).

FDCA is the essential chemical building block for the production of PEF, which Avantium said had improved barrier properties for gases like carbon dioxide and oxygen, leading to longer shelf life of packaged products; and higher mechanical strength, which results in thinner packaging and less material required. PEF is also 100% recyclable.

“Partnering with the world’s number one chemical company provides us with access to the capabilities that are required to bring this technology to industrialisation,” said Avantium CEO Tom van Aken.

Clariant buys share in South Korea’s BioSpectrum

S

wiss speciality chemicals company Clariant announced on 12 April that it had signed an agreement to buy a 17% share of South Korea’s BioSpectrum Inc, a leading developer and supplier of speciality active cosmetics’ ingredients derived from Asian flora.

“The transaction will allow us to expand in the strategically important and growing global markets for personal care applications”, said Clariant CEO Hariolf Kottmann. “Our investment in BioSpectrum will give us further access to highly innovative active ingredients based on renewable raw materials.”

BioSpectrum’s ingredients are derived from natural products and extracts from exotic Asian plants, particularly those found on the South Korean Jeju Island – an isolated mountain formed by

volcanic eruption and featuring over 1,800 plant species.

Earlier in March, Clariant launched a range of ingredients for the personal care sector at the Home and Personal Care Ingredients (HPCI) event held in Mumbai.

These included ingredients for sun, hair, skin and oral care, as well as anti-microbial

preservatives.

R Kumaresan, head of Industrial & Consumer Specialities (ICS) at Clariant India said a key company strategy was to work with leading and upcoming Indian brands across the personal care industry. This was reflected in its acquisition of part of Vivimed Labs Limited’s personal care portfolio in September 2015.

Vivimed’s personal care offerings in India currently include the Ayurvedic Nisarg range, based on moringa seed (pictured) oil, fenugreek and soapnut.

“The personal care industry in India offers us immense potential supported by the growing middle-class consumer population and the rising disposable income,” said Deepak Parikh, region president, India, Middle East and Africa, Clariant.

Corbion to build bioplastic PLA plant in Thailand

D

utch bio-based firm Corbion confirmed at the start of March that it plans to build a 75,000 tonnes/ year polylactic acid (PLA) plant at its existing site in Rayong province, Thailand.

It said the plant was scheduled to open in 2018 and would able to produce a complete portfolio of PLA polymers, ranging from standard PLA to innovative high-heat resistant PLA. “PLA is a unique bioplastic, being both biobased and biodegradable,” Corbion said.

“As part of our Disciplined Value Creation strategy announced in 2014, we are accelerating our thrust into the biotechnology arena, making the next step in the bioplastics value chain by becoming a PLA producer.”

Corbion also said it would expand its existing lactide plant in Thailand by 25,000 tonnes/year.

“With this expansion, the company will be able to serve both its own PLA plant and current and future lactide customers. The lactide expansion will also enable the production of a wider range of lactides than is currently possible.”

Construction was expected to cost US$73M for the PLA plant and US$22M for the lactide plant and was expected to start later this year, with a targeted startup in the second half of 2018, it said.

Corbion is a global market leader in lactic acid, lactic acid derivatives and lactides, with two business units focusing on bio-based ingredients and bio-based innovations.

IN BRIEF SOUTH KOREA: Oil refiner GS Caltex will construct a US$44M commercial-scale biobutanol facility in the first half of this year using corn and cassava as feedstocks and based on technology the firm has been developing since 2007, Biofuels Digest reported in March.

USA: Green Biologics Inc announced two distribution agreements in April for its renewable n-butanol and acetone. Nexeo Solutions will become the firm’s national distributor focused on coatings, adhesives, sealants, household and industrial cleaners and personal care intermediates.

Acme-Hardesty would focus marketing for high-value applications in food ingredients, cleaning products and biolubricants.

Croda launches surfactants site

S

peciality chemicals manufacturer Croda International Plc, UK held a groundbreaking ceremony on 28 April on the first North American plant to produce sustainable nonionic surfactants.

The US$170M plant, set to begin operations next year, will use bio-ethanol as a feedstock and is located at the Croda’s Atlas Point facility in New Castle.

During construction, Atlas Point will continue producing nonionic surfactants made from petrochemical ethylene.

In March, Croda also broke ground at its Chocques manufacturing site in northern France, which will produce surfactants for personal care and other applications. The plant will increase capacity at the site by more than 20% and become fully operational in early 2017.

At the end of last year, Croda Polymer Additives announced plans to expand its fatty acid amide capacity at its manufacturing site in Hull, UK, which it said would satisfy growing demand for slip additives into polymers through to 2020 and beyond. The Hull site is one of Croda’s three fatty acid amide manufacturing plants with the others located in Gouda, Netherlands and Mianyang, China.

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D IARY OF EVEN TS

20-23 JUNE 2016

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

National Advanced Biofuels Conference & Expo + International Fuel Ethanol Workshop & Expo VENUE: Wisconsin Center, Milwaukee, Wisconsin, USA CONTACT: BBI International, USA Tel: +1 866 746 8385 E-mail: service@bbiinternational.com Website: www.fuelethanolworkshop.com www.advancedbiofuelsconference.com

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

2-3 JUNE 2016 Veg Oils & Meals 2016 VENUE: Hilton Hotel, Rotterdam, Netherlands CONTACT: APK Inform, Ukraine Tel: +380 562 320 795, +380 562 321 595 E-mail: globoil@apk-inform.com Website: www.apk-inform.com/en/ conferences/vegoils2016/about

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

16-17 JUNE 2016

6th International Conference on Algal Biomass, Biofuels & Bioproducts VENUE: San Diego, USA CONTACT: Elsevier Conferences, UK Tel: +44 1865 843 337 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: Euroefedlipid, Germany Tel: +49 69/79 17533 E-mail: info@eurofedlipid.org Website: www.eurofedlipid.org/meetings/ goettingen2016/index.php

13-14 JULY 2016

Marginality of Ukrainian Soyabeans: Processing and Exports?

VENUE: Premier Hotel Rus, Kiev, Ukraine CONTACT: Irina Ozip Tel: +380 562 320 795, +380 562 321 595 E-mail: market@apk-inform.com Website: www.apk-inform.com/en/ conferences/soybean2016/about

19-24 JUNE 2016 FOSFA Middle Managers Course VENUE: Royal Holloway, University of London, Egham, Surrey, UK CONTACT: Anna Baran, FOSFA International, UK. Tel: +44 20 7283 5511 E-mail: anna.baran@fosfa.org Website: www.fosfa.org/events/ middle-managers-course/

13th Oleochem Outlook 2016 VENUE: Chengdu, China CONTACT: Cris Zhou, Enmore Group Tel: +86 21 5155 0927 E-mail: criszhou@enmore.com Website: www.enmore.com

9-10 AUGUST 2016 Malaysia-China Palm Oil Trade Fair & Seminar (POTS) VENUE: Tianjin, China CONTACT: Lim Teck Chaii, Malaysian Palm Oil Council; lim@mpoc.org.my or Desmond Ng, E-mail: desmond@mpoc.org.my Website: www.mpoc.org.my/Palm_Oil_ Trade_Fair_and_Seminar_(POTS)_2016_ Announcement.aspx

4-9 SEPTEMBER 2016 FOSFA Basic Introductory Course VENUE: Royal Holloway, University of London, Egham, Surrey, UK CONTACT: Anna Baran, FOSFA International, UK. Tel: +44 20 7283 5511 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 5244 000 Fax: + 1 202 8333 636 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: +33 567 339 206; Fax: +33 567 339 203 Website: www.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: www.biofuels-news.com/conference/

21-23 SEPTEMBER 2016 Globoil 2016 VENUE: Grand Hyatt, Goa, India CONTACT: Tefla’s, India Tel: +91 22-26304816/17 Email: events@teflas.com/teflas@gmail.com Website: www.globoilindia.com

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

12 OFI – MAY 2016 www.oilsandfatsinternational.com

May diary.indd 1

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DI ARY O F E V E NT S

www.dsengineers.com

First OFI India attracts over 600 attendees in Hyderabad

I

ndia is a country with large unrealised potential, according to several leading industry figures who spoke at the OFI India 2016 business conference, held on 13-14 April at the Hyderabad International Convention Centre.

Attracting over 600 attendees, the first OFI India show received a very positive response from those who attended it.

Dr B V Mehta, Executive Director of The Solvent Extractors’ Association of India (SEA), said, “The papers presented by renowned speakers were excellent and very useful”.

The OFI India show also included an exhibition with over 30 exhibitors, and a parallel Smart Short Course.

Read the full OFI India 2016 review in the June issue of OFI. OFI India business conference presentations can be downloaded from www.ofievents.com/india/conference/presentations

28-29 SEPTEMBER 2016 7th International Oilseeds & Oils 2016 VENUE: Barcelona, Spain CONTACT: APK-Inform, Ukraine Tel: +380 562 320 795, +380 562 321 595 E-mail: globoil@apk-inform.com Website: www.apk-inform.com/en/conferences/oo2016/about

12-13 OCTOBER 2016 Malaysian Palm Oil Trade Fair & Seminar (POTS) VENUE: Kuala Lumpur, Malaysia CONTACT: Mohd Izham Hassan, Malaysia Palm Oil Council E-mail: izham@mpoc.org.my or Muhammad Kharibi E-mail: kharibi@mpoc.org.my; Website: www.mpoc.org.my/ Palm_Oil_Trade_Fair_and_Seminar_(POTS)_2016_Announcement.aspx

17-21 OCTOBER 2016 National Renderers Association (NRA) 83rd Annual Convention VENUE: The Ritz-Carlton Amelia Island, Florida, USA CONTACT: NRA, USA. Tel: +1 703 6830 155, E-mail: co@martycovert.com Website: www.nationalrenderers.org

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

Serving the Vegetable Oil Industry From Basic Engineering to Full Turnkey Project Single Point Responsibility through EPC ou EPCM+® with guaranteed: � Process Performances � Time Schedule � Budget

7-10 NOVEMBER 2016 19th Annual FO Lichts World Ethanol & Biofuels VENUE: Steigenberger Wiltcher’s Hotel, Brussels, Belgium CONTACT: Informa Agra Customer Services, UK Tel: +44 20 3377 3658; E-mail: registrations@agra-net.com Website: www.worldethanolandbiofuel.com

10 NOVEMBER 2016 FOSFA Annual Dinner Battersea Evolution, London, UK Contact: Gemma Hale, FOSFA, UK. E-mail: contact@fosfa.org Tel: +44 20 7283 5511; Website: www.fosfa.org 13 OFI – www.oilsandfatsinternational.com

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Engineers & Contractors Brussels • Belgium Tel.: +32 (0)2 634 25 00 Fax: +32 (0)2 634 25 25 info@dsengineers.com

Reliability through Experience

04/05/2016 09:25

PROC ESSIN G

PHOTO: DOLLARPHOTOCLUB

Explosive material

Kevin Spiess of BS&B Safety Systems looks at the risk of dust explosions during oilseed processing, and the need for explosion protection during organic materials handling and storage in the vegetable oil production process

T

he processing of vegetable oils is punctuated with dangers at every step.

If not properly addressed, these dangers can lead to the destruction of process equipment, structural facilities and in the worst case, loss of life.

The combustibility of vegetable oils is usually perceived as the primary cause of fire hazards and explosions. However, the handling of oilseeds prior to their pressing is also the origin of one of the highest risks of explosion. Seeds generate dust during the first part of the vegetable oil production process, usually due to their potential for self-heating and ignition during conveyance and storage.

In 2008, a combustible dust explosion occurred at a canola processing plant in Sainte Agathe, Canada. At the time, this was reported to be the largest expeller-pressed oilseed crushing plant in the world. Similarly in 2014 in Saskatchewan, an explosion halted production in a canola crushing plant, luckily without any fatalities. The suspected culprit was dust.

Organic dusts, whether they are from seeds, grains, or wood have caused devastating explosions, destroying process facilities and injuring personnel worldwide. In 2011, a study carried out by HFL Risk Services found that 2,000 dust explosions occurred in factories and refineries in Europe, of which 50 were attributed to the UK. The explosive danger

exists wherever there is a plant handling, processing and grinding organic materials.

Why is organic dust a danger?

Dust explosions originate from various causes: abrasion on ill-maintained machinery, a spark, grinding and milling friction or even an electrical fault. The fuelling and propagation of such a primary explosion is usually caused by suspended or accumulated dust in the immediate surroundings and atmosphere. It is a voluminous and efficient fuel that can turn initial combustion into an explosive inferno.

These often fatal secondary explosions are caused by three elements: ignition, fuel and oxygen. When they come together in an enclosed area, with rising pressure and rapid increases in temperature, combustion occurs. The primary explosion is carried on a pressure wave that disturbs accumulated dust and causes a deflagration. This is subsonic combustion propagating through heat transfer, as hot burning material heats the next layer of cold material and ignites it. At this point in events, nearby personnel and property are put at imminent risk of damage and injury.

Now in suspension, the agitated dust becomes the origin for the extremely dangerous secondary explosion risk, which has the ability to spread to other parts of processing equipment risking its

complete destruction. It travels through pipes, ductwork or silos until the entire processing facility is in peril from this mobile explosion risk.

Good housekeeping & regulations Control and removal of dust as potential ignition sources are vital for eliminating explosion hazards in any process industry handing organic materials.

Apart from good housekeeping – removing dust and keeping facilities clean, employers are subject to guidelines and regulations, which set out other methods by which this can be achieved. For example, in the UK, employers are subject to certain basic requirements according to DSEAR (Dangerous Substances and Explosive Atmospheres Regulations 2002), which focus on assessing, identifying and controlling explosion risks.

Europe-wide, the ATEX directive is made up of two EU directives specifying what equipment and work environment is allowed in a location with an explosive atmosphere. ATEX (Appareils destinés à être utilisés en ATmosphères EXplosibles) classifies such combustible environments into danger ‘zones’, according to substance, length of exposure and operating conditions.

In theory when one element of the incendiary trio is either interrupted or controlled, an explosion can be prevented. This necessitates different methods of protection to counteract fire risks: n Chemical suppression solutions detect the start of an explosion in process equipment and deliver dry chemical extinguishing agents into a developing internal deflagration. It suppresses further flame propagation and protects interconnecting process equipment from any spreading explosion damage. n Spark detection devices detect sparks, hot particles and flame that could primarily ignite a fire or explosion if allowed to travel on through pneumatic ducting and conveyors towards other materials handling equipment. n The most advanced flameless vents intercept, extinguish and retain all burning materials, preventing them from hazardous release into the surrounding environment.

Why protect against dust explosions?

The legal obligation to comply with regulations for the purposes of safety highlights the paramount obligation to prevent endangerment of personnel.

Recently in the media we have seen how dust explosions around the world have claimed lives, not to mention decimated businesses. Economic loss due to halted production because of destruction of property and equipment is an unprofitable and regressive position.

Safeguarding process facilities against dust explosion brings other advantages; possible insurance benefits in terms of reduced premiums if an employer demonstrates compliance and diligence by installing correct explosion prevention controls.

Even though accidents may happen, why take the risk of life, limb and property for want of precaution? The quality of reputation and brand is not only reflected in the final product, but how it got from one end of the process chain to the other.

It pays to protect the process.

Kevin Spiess is from BS&B Safety Systems, USA

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An uncertain and volatile market

Global uncertainty caused by extreme weather such as the worst El Niño in 18 years, and exceptionally low crude oil prices has created an edible oil market that is volatile and unpredictable. There is real concern that supply will not meet demand, now, and in the future. Rose Hales reports from the recent Price Outlook Conference (POC) held in Kuala Lumpur, Malaysia

M

arket volatility and global uncertainty are two of the biggest issues affecting palm and lauric oils prices globally, the Price Outlook Conference held in Kuala Lumpur, Malaysia 7-9 March 2016 heard. Speakers said that the volatility and uncertainty are coming from a handful of different factors including climate change and weather, Brent crude oil prices, Chinese and Indian imports, Indonesia’s biofuel mandate and increasing trade restrictions on palm oil.

Weather and climate

DR JAMES FRY SAID THAT THE 2015/16 EL NIÑO WOULD RESULT IN A 2M TONNE DECLIN

output picks up, the July-December average price would fall back to US$625 FOB, and the price would fall further as 2017 unfolds. Palm kernel oil (PKO) would be supported by weak output of both oil palm and coconut oil to average US$425-450 above CPO over the year. If Brent hit US$40, in June FOB CPO would be US$735 and BMD RM2,900.

Fadhil Hasan, executive director of the Indonesian Palm Oil Association (IPOA), also made projections based on the current El Niño, commenting in particular on reduced productivity and production in 2016, and that the impact on production might be more severe than originally expected. Hasan estimated a drop in production of between 4% and 8% this year and added that he did not think new harvest crops could compensate for the decline.

Dorab Mistry, director of Godrej International Limited, blamed three factors for the decline in palm production in Indonesia: dry weather (caused

by El Niño), a biological low cycle and a seasonal low period. According to Mistry, the most important factors for 2016 and for pricing are “production, production, production”.

Malaysian production of CPO in 2015 fell short of 2014 production, which was very important, as previously each year had seen an increase. Mistry believes that the low production will continue JAMES FRY POC / A.H. LING

Although countries pledged to a landmark agreement in Paris in January to keep global temperatures under 2oC rise, the effects of climate change are becoming clearer, the conference heard.

Sunny Verghese of Olam International Limited said that extreme weather events are more frequent than ever and the world is having more extreme hot days than ever before. For example, 14 of the 15 hottest years on record have occurred after 2001; 2015 was the hottest year ever recorded; and January 2016 was the hottest January on record. Global warming can no longer be ignored. A harmony must be found between increasing food production by more than 100% to meet future global demand, but doing this without further negative affects on the environment. Water was also a major problem with water tables receding fast – to the point of a global emergency. Verghese said that 93% of the extra heat produced through global warming goes into the oceans, which has multiple impacts.

Also on the theme of weather, the consequences of El Niño were a significant factor in many price

forecasts. James Fry, chairman of LMC International, said that the 2015/16 El Niño was the worst in 18 years, stronger than the 2009-10 event, and at least as strong as the 1997-98 event but could prove to be worse. Fry illustrated his comments using a graph of the Oceanic Niño Index (ONI)’s ocean warming tracking, which showed that sea temperatures had climbed to the same level as during the peak of the 1997-8 El Niño.

In particular, El Niño had been causing widespread drought across Malaysia and Indonesia. Fry used photographs of oil palms impacted by drought to prove his findings (shown below). Drought stress begins by causing leaves to droop, but as it worsens it causes a complete drop, followed by the total loss of leaves altogether. Fry said it was clear that there would be a period of negative growth due to the effects of drought on the palms, which would continue to affect yield into next year.

In addition, it is also possible that El Niño will shift into a La Niña later on this year. Thomas Mielke of Oil World said in his presentation that the longer El Niño had reduced the possibility of a La Niña event by August. A La Niña event would cause dryness in the US Midwest in July and August. A drought would affect the whole sector.

Fry’s price outlook for 2016 predicted that the El Niño would result in a 2M tonne decline in world crude palm oil (CPO) output in 2016. If La Niña in the third and fourth quarters of the year caused heavy rains, the 2016 output would be reduced by a further 0.4M tonnes. In terms of prices Fry gave two scenarios depending on the price of Brent crude oil.

If Brent crude oil was at US$35/barrel, he said FOB CPO would be US$700 by June. For Bursa Malaysia Derivatives (BMD), assuming the Malaysian government applied export taxes, CPO futures would be at RM2,750 (with RM/US$ at 4.175). As

THESE PHOTOS SHOW THE IMPACT OF DROUGHT ON OIL PALMS IN EAST AND SOUTH KALIMANTAN. FIRST IS THE ‘HAWAIIAN SKIRT EFFECT’ (LEFT), WHICH IS LATER FOLLOWED BY THE ‘SARONG EFFECT’ (RIGHT)

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it was thanks to rain rather than the programme, and he believed that Indonesia should not push the programme too hard and squeeze the market.

Fadhil Hasan of the IPOA said that the CPO Fund in Indonesia had been successful in preventing any further decline in CPO prices and was even causing a gradual increase in the price of CPO – prices of palm oil had reached US$572/tonne at the present time. Hasan added that it was estimated that if total absorption of B20 reached 2.5M kilolitres in 2016, the price of CPO would increase by a further US$35/tonne, and this would become even higher if absorption reached the target of 3.2M kilolitres. Forceful and efficient implementation of the programme was therefore extremely important. In addition, problems with the B20 programme did need to be resolved, including weak supervision and enforcement, logistical problems, the lack of incentive for state-owned oil and gas group Pertamina and other companies to implement the programme with the current price of crude oil, and a lack of commitment from stakeholders to accelerate the programme.

Restrictions on palm oil

IN A 2M TONNE DECLINE IN WORLD CRUDE PALM OIL OUTPUT IN 2016

until at least June this year when the low cycle is expected to come to an end.

Mistry estimated palm oil production in Malaysia in 2016 to fall short of 19M tonnes and Indonesian production would also be down 1M tonnes yearon-year. Such figures place 2015/16 world palm production down 3M tonnes in total.

The impact of the energy market According to James Fry, alongside the current El Niño, two other factors have had a major impact on the CPO market – the introduction of Indonesia’s biodiesel mandate, and the failure of crude oil supplies to fall back as they were predicted to, after months of low prices.

Fry showed a graph that displayed the relationship between vegetable oil (soya, rapeseed and palm oil) and petroleum. On average, CPO had traded US$210/tonnes over crude oil, however when Brent crude fell right down to the bottom at just over US$200/tonne, vegetable oil did not follow.

According to Fry, the price of crude oil fell as the operation of rigs became more efficient in the US. In addition the lifting of sanctions on Iran meant total world shale production remained stable.

Indeed, crude oil output is ahead of demand, with considerable surplus – stocks are at the highest they’ve ever been in the USA. Fry therefore predicted that another price band would be created for crude oil, in which it would never again come up to US$100/barrel. Fry predicted no sudden change in petroleum prices, even though next year’s prices would come down.

Indonesia’s biodiesel mandate was ‘ingenious’, Fry said. Producers paid for the subsidies but by taking CPO out of the market, prices would be lifted by more than the cost of the export levy in order to pay the subsidies. In doing so, Indonesia had introduced a mechanism that took palm oil out of the market as biodiesel, and also stablised CPO prices.

Mistry also discussed the effects of the Indonesian biodiesel mandate, but was less optimistic. He said that although the mandate appeared to be working,

Palm oil was facing an increasing trend in trade restrictions from the traditional import countries, Fadhil Hasan said. He cited France’s imminent plan to impose a tax on palm oil as part of a Biodiversity Law as well as Russia’s plan to apply an additional import tariff of US$200/tonne on palm oil by next July. Russia’s motives for imposing the import tariff included health concerns as well as to protect domestic vegetable oil industries, according to Hasan.

Dorab Mistry also discussed the worrying trend of trade restrictions, in particular in France. He said the restrictions and taxes due to be imposed would obstruct palm oil imports and had no relationship to sustainability. Mistry called France’s plan a ‘demented action’ and ‘an assault on economic wellbeing’ – which prompted a round of applause from delegates. He called on developing countries to join together to oppose the plans. Fadhil Hasan also suggested Indonesia’s response to the restrictions should be to strengthen its relationship with other producing countries to establish the CPOPC (Council of Palm Oil Producing Countries).

Through the CPOPC, palm oil producers could better dispute misleading proposals, legislations and campaigns which threatened to damage the demand for CPO in the EU and USA, in particular.

India and China Fadhil Hasan from the IPOA said India and China were both sources of market uncertainty as they were the largest palm oil importers. Economic slowdown was being observed in China, which would affect the Indonesian economy as China was one of Indonesia’s major trading partners. Exports to China from Indonesia dropped sharply between January and December 2015. Palm oil demand in China was weakening, although it could be compensated by what happened in India.

According to Thomas Mielke, India was a huge determining factor in the price of palm oil. Mielke said that a lack of government actions had created a crisis in Indian agriculture. Oilseed production in the country was at a 10-year low and imports had

gone through the roof – oil imports had increased by 11M tonnes. Although India was happy to import and Malaysia and Indonesia were happy to export, it was still a very serious situation. India imported 75% of its oil needs from only two locations, which was extremely dangerous, especially in such a volatile market. Domestic consumption in India was rising rapidly – although in 2015 this was not a problem, Mielke said in 2016 the same could not happen because discretionary blending of biodiesel was now at zero.

Figures from Dorab Mistry showed that Indian imports of soya, palm and sunflower oil had increased from 10.2M tonnes in 2011-12 to 15.6M tonnes in 2015-16. However, India was approaching the limit of its possible substitution of palm to soyabean oil. Mistry reiterated that India was a price sensitive market and higher prices led directly to lower consumption.

Mistry discussed what he called the ‘Indian biting point’ – the point at which, in a price sensitive market, the average consumer feels the bite and decides to cut consumption. This was around 60,000 rupees (US$904) for CPO, meaning that prices would have to rise by 20% before the Indian biting point hit, currently at 49,000 rupees (US$739). With production finished for the year, it was only consumption that could be changed now.

Mielke said China was not contributing to price increases in the oilseed market at the moment.

Imports of soyabeans were increasing in China, Mistry agreed, in 2015-16 he predicted they could be as high as 84M tonnes. But generally vegetable oil imports were flat. Mistry confessed to remaining bullish on the China economy.

Ample soyabean supply To what extent can soyabean save the situation and at what price? Thomas Mielke of Oil World asked.

“Production of soyabean has increased significantly in past years and we now have ample supplies of the oil crop. This is in the face of a decline in other oilseeds such as rape and cotton”. The drop in rapeseed was particularly critical, the current season had seen a drop of 5M tonnes, which only added to the supply problems being experienced by palm.

“Soyabean supplies are, however, sufficient.”

Supplies would increase to 90M tonnes by the end of August. Production of soyabeans would remain flat at 319M tonnes, but this would still exceed estimated consumption by 3M tonnes – which was unprecedented, Mielke said. He put this down to weather conditions in South America, which had been favourable for the last four years. Soyabean supplies would remain ample until the next drought, he predicted. This drought may come in the form of La Niña in the coming months.

There was only one choice, which was to boost soyabean crushing worldwide in order to offset the drop in rape and other oilseeds. But unfortunately, Mielke said, soyabean could not solve the oil supply deficit without creating a surplus in meal. Soyabean oil prices were rising, but meal prices were under pressure. It was becoming increasingly difficult to find a home for the excess meal and the prices of meal needed to be pushed down.

Fadhil Hasan said that the price differences between soyabean oil and palm oil were narrowing.

In 2015 this was US$104/tonne. Previously the price difference was higher, indicating the

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TR ADE & PRIC E FOREC ASTIN G

competitiveness of palm oil over soyabean oil.

Current price differences were about US$66/ tonne, in which palm oil had almost lost its competitiveness. With price differences narrowing, countries importing oil preferred to use soyabean oil over palm oil, he said.

Dorab Mistry said prices of soyabean oil had held, with India in particular keeping the market afloat. Soyabean oil was taking market share from sunflower and palm oil.

Other oils 2015 crops of rapeseed oil in Canada turned out better than expected, according to Mistry, and the Indian winter crop may be higher. On the other hand, crops in the EU and Ukraine might not be good. China was also selling its reserve stocks of 6M tonnes of rapeseed oil.

In general, Mielke said that the global oils and fats market was in a difficult situation. Many years had gone by in which stocks had been accumulating.

However, 2016 would be the first year that stocks would decrease by 1.3M tonnes.

In addition, Mielke gave an overview of the world output and consumption of 17 of the top oils and fats. For 2015/16, Oil World forecast world production to be 206.5M tonnes, an increase of 2.7M tonnes. World consumption on the other hand was forecast to be 207.8M tonnes, a total growth of 5.7M tonnes, which would be difficult for the market to accomplish.

World exports of palm oil from Malaysia and Indonesia dropped in the four weeks leading

up to the conference, and India also delayed its purchases. However, additional demand would have to come as purchases would have to be stepped up again and Mielke expected demand to improve in April and June, resulting in a price recovery. Mielke forecast palm oil futures would recover to MR27003000/tonne (US$688-765) until June.

Mielke’s price forecasts until June or July were CPO US$700-750, PKO US$1,000-1,050 and coconut oil US$1,250-1,300. However, there was still big uncertainty and question marks about these forecasts. Mielke encouraged a long-term vision, reminding delegates that the global market needed 90M tonnes of palm oil by 2025 in order to satisfy global demand.

Lauric oils Harald Sauthoff, vice president of global procurement, natural oils and oleochemicals, BASF Personal Care and Nutrition GmbH, described two oils in the lauric family – palm kernel oil (PKO) and coconut – as an old couple in crisis. Although palm kernel oil and coconut oil were very similar, and previously had a very close price relationship, their price collaboration had been disturbed and the relationship challenged.

This was due, in part, to their different behaviours during El Niño, Coconut oil was more vulnerable to drought than PKO, Sauthoff said. However, coconut oil, which had become a niche oil, was less affected by price swings in PKO. The prices of lauric oils were high due to low supply, Mistry said. A new craze for coconut

tankstorage, maritime shipping, blending, multimodal shift, inland shipping, overland transport

water was having a negative affect on coconut oil availability. Coconut farmers had taken to farming for coconut water as it was more profitable.

Coconuts were harvested earlier so the profits were greater; copra took considerably longer and was a more complex process, he added. However, Mistry said he was not bearish on lauric oil prices.

According to Sauthoff’s predictions, lauric oils would trade in the range of US$900-US$1,210/ tonne, averaging at US$1,070/tonne. CNO will be high at US$1,350/tonne, and PKO would be low at US$800/tonne.

Conclusions In conclusion, Dorab Mistry said he believed palm oil held the key to prices. He predicted that Brent oil would trade at US$30-50/barrel and the Federal Reserve Bank of St. Louis (FED) would not raise its rates until June 2016. In addition, he said the ringgit, rupiah, real and peso had bottomed out and the US dollar had peaked.

The industry would have to wait and see what the final impact of El Niño would be, and whether or not La Niña came later in the year, causing fresh problems. Although the industry may have to accept a longer-term bearish market for commodities.

Range-bound, higher lows and lower highs may be the new normal, according to Emily French from

ConsiliAgra.

Rose Hales is OFI’s editorial assistant. This feature is based on presentations given at the Palm & Lauric Oils Conference (POC) and exhibition, held in Kuala Lumpur, Malaysia from 7-9 March 2016

food, biodiesel, base oil, oleochemicals, mineral specialties, non-hazardous chemicals fuel oil, gasoline, gasoline components, ethanol, methanol, gasoil, gasoil components

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MARGARIN E & SPREAD S

PHOTO: DUPONT

Healthy and sustainable Margarine producers are responding to the global trends of wellness and sustainability by developing reduced and low-fat options. Pia Stensgaard Petersen and Pernille Gerstenberg Kirkeby of DuPont Nutrition & Health write

O

ils and fats producers around the world develop products to meet global trends. Health and wellness is one of them and producers have responded to this by developing reduced, low and non-fat products defined as spreads. Another global mega trend is sustainability which, for producers of oils, fats, emulsifiers and antioxidants, covers the use of sustainable raw materials.

interface of the water and fat phase. Emulsifiers are defined as surface-active components that reduce the interfacial surface tension between the oil and the water. Polar lipids, as well as some proteins and hydrocolloids, fit this definition.

Emulsifiers facilitate the formation of the emulsion and increase the stability of the system

TABLE 1: EXAMPLES OF REDUCED-FAT SPREAD (60% FAT CONTENT) AND LOW-FAT SPREAD (30% FAT CONTENT) COMPOSITIONS Ingredients Reduced fat spread 60% Low fat spread 30% Water phase

Spreads include lower fat versions of margarine.

These are typically referred to as reduced-fat when the fat content is around 50-70% and low-fat when the fat content is below 41%. Very low-fat spreads with 20% fat or lower are also sold in some markets.

The variety of products in this category ranges from relatively simple recipe compositions to complex products, all of which provide a different sensory experience compared to conventional fullfat products. Low-fat spreads normally only target household use for spreading on bread.

Usually, spreads are water-in-oil (w/o) emulsions.

An emulsion is thermodynamically unstable due to the missing attraction of the molecules in the lipophilic fat phase and the hydrophilic water phase, resulting in an energy imbalance in the system. The dispersed phase, which in the case of spreads is water droplets, collides frequently due to the instability of the system. This calls for a stabilising force, such as an emulsifier, at the

Water

Up to

Salt

1.0

0.5

Skimmed milk powder

0.5

0.1

GRINDSTED®LFS Stabiliser*

Fat phase

Composition of spreads

during emulsion formation and during the crystallisation or manufacturing process. Lipid emulsifiers such as monoglycerides contain a glycerol part (the hydrophilic part) esterified with a fatty acid, acetic acid, lactic acid, tartaric acid or citric acid (the lipophilic part). Depending on the type of acid esterified to the glycerol part of the molecule, the emulsifier will have specific functionality. The hydrophobic part repels water, and the hydrophilic part attracts water.

Relatively high iodine value (IV) emulsifiers are recommended for use in low-fat spread emulsions.

1-1.5

Potassium sorbate

0.1

0.1

Butter flavouring

0.01

0.01

pH

5.5

5.5

Interesterified fat blend

15

7.5

Palm oil

15

Liquid oil

30

DIMODAN®P PEL/B

0.4

22.5

DIMODAN®U/J

0.5

GRINDSTED®PGPR

0.2

2% sol. beta carotene

0.04

0.02

Guardian Green Tea Extract 20M

0.03

0.03

Butter flavouring

0.02

0.02

SFC @ 5°C

31

16

SFC @ 10°C

26

13

SFC @ 20°C

14

6

SFC @ 30°C

6

3

SFC @ 35°C

4

2

SFC @ 40°C

1

0

SFC Profile

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FIGURE 1: WATER DROPLET SIZE DISTRIBUTION

These are unsaturated and have a lower melting point than the emulsifiers used for reduced-fat spreads or full-fat margarine products. Some lowfat recipes contain milk proteins in order to slightly destabilise the emulsion and, in this way, improve the flavour release in the final low-fat spread.

In other words, it is not just the fat content but also the amount of protein that can influence the recommended choice of emulsifier for a specific low-fat spread recipe. In order to stabilise the high level of water in the emulsion further and improve flavour release, hydrocolloids or stabiliser systems can be added to the water phase. For low-fat spreads, pectin, alginate, starch and blends of all three can be used to stabilise the low-fat emulsion and the final low-fat spread over time. Standard

recipe suggestions are listed in Table 1 (previous page).

In addition to choosing the right emulsifiers and stabilisers for a specific spread, another key factor is the actual composition of the fat blend, which should be determined by the application, functionality and temperature of usage. The fat blend is characterised by the solid fat content (SFC) which, measured at specific temperatures, describes the ratio between the solid fat and the liquid oil in the fat phase. Naturally, the saturation of the fat phase has an impact on the SFC profile.

Generally speaking, the higher content of saturated fatty acids results in a higher SFC value at specific temperatures. The SFC profiles of the reduced and low-fat spread products are listed in Table 1

(previous page). Compared to the reduced-fat spread formulation, the amount of emulsifier is higher in the low-fat spread product. When the amount of solid fat in the fat blend is reduced, both due to the lower level of solid fat in the fat blend and the overall lower level of fat in the product overall, then the stabilising effect of the crystallised fat matrix is also lower. This makes the role of the emulsifier system even more important with regard to the incorporation of higher levels of water droplets and liquid oil in the limited crystallised matrix compared to a product with more fat.

The table shows that different emulsifiers are recommended according to the fat content of the various spreads. When the fat blend is altered to a softer version by changing the ratio between the liquid oil and the hard stock, as is the case for 30% low-fat spreads, the emulsifier can function both as an emulsifier and as a structurant. As an emulsifier, it promotes a stable emulsion during processing.

As a structurant, it optimises fat crystallisation and secures the 3-D crystal network that gives the spreads the appropriate textural and sensory properties.

Various stabiliser systems are added to the lowfat spreads at different levels compared to the emulsifier system. Due to the current availability and price of pectin on the world market, producers are interested in finding alternative stabiliser systems. The stabilising effect of pectin and a blend of pectin and alginate has been tested and compared to GRINDSTED® PECTIN RS 400.

GRINDSTED® PECTIN RS 400 is a high-ester pectin standardised with sugars. GRINDSTED® LFS 560 is a blend of food-grade stabilisers containing amidated pectin standardised with dextrose and alginate. GRINDSTED® LFS sample one is a blend of stabilisers containing pectin and alginate. All three hydrocolloid systems stabilise the water phase of low-fat spreads and ensure a good flavour and salt release. The preferred stabiliser system may depend on the availability of raw materials and price.

Evaluation of spreads The low-fat spreads have been evaluated by DuPont using standard procedures. Figure 1 (above) shows

FIGURE 2: THE RESULTS OF SENSORY EVALUATION OF GRINDSTED® PECTIN RS 400, GRINDSTED® LFS AND GRINDSTED® LFS 560

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MARGARIN E & SPREAD S

DuPont’s palm-based emulsifiers

T

o meet today’s manufacturer needs, all the palm oil for DuPont’s palm-based emulsifiers is certified by the Roundtable on Sustainable Palm Oil and delivered from a mass balance or, if requested, segregated supply source.

DIMODAN® P PEL /B Distilled monoglyceride is made from edible refined palm oil and recommended for its ability to stabilise the liquid emulsion and ensure a fine water distribution. It is mainly used in lower fat products (40-60% fat content). The melting point of the emulsifier is approximately 60°C. DIMODAN® U/J Distilled monoglyceride is made from edible refined sunflower oil. It prevents syneresis in low-fat spreads by contributing a

stable water dispersion to the emulsion and the crystallised product. The relatively low melting point of approximately 45°C is also suitable for low-fat products.

GRINDSTED® PGPR is a polyglycerol ester of polycondensed ricinoleic acid from castor oil. It ensures a very stable emulsion in low-fat spreads through its excellent water-binding effect, which can stabilise unstable w/o emulsions.

GUARDIAN™ Green Tea Extract 20M is a natural green tea extract with maltodextrin as a carrier. It exhibits flavour and antioxidant activity characteristic for green tea extract and improves the shelf life of the spreads by retarding lipid oxidation.

the water droplet size distribution measured by Bruker NMR. All three spreads show relatively narrow distributions relating to stable low-fat spreads with mean water droplet sizes less than 6µm. It is important to correlate the results from water droplet size distribution analysis with sensory evaluation in order to determine the flavour release, as narrow water droplet size distribution can result in spreads with slow or no flavour release.

Descriptive sensory analysis is used to describe the impact on sensory attributes. The descriptive analysis method is described by ISO 13299 “Sensory analysis – Methodology – General guidance for establishing a sensory profile”. The analysis evaluates the intensity of each descriptor, such as the hardness, shininess or body of the spread, on a linear scale with two anchor points that indicated low and high intensity.

Figure 2 (previous page) shows the results of the sensory evaluation. Only minor differences are observed between GRINDSTED® LFS sample one and GRINDSTED® LFS 560. However, there are significant differences in the “shininess” and “hardness” attributes. The same differences can be observed when comparing the spider diagrams from the analysis of the blends with the spider web from the standard containing GRINDSTED® PECTIN RS 400. This could be due to minor differences in the processing parameters as previous tests did not show these differences. According to the results, GRINDSTED® LFS sample one or GRINDSTED® LFS 560 could be suitable alternatives to the reference.

Easy oil, water & solid fat analysis using the MQC benchtop analyser Breeding: optimise oil content in seeds

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Oils and fats producers around the world can respond to the health and wellness trend with relative ease. The sustainability trend can be met by using suitable sustainable raw materials of good quality. In addition to producing fat products with reduced fat content, the oils and fats industry has taken other health-improving initiatives.

For the past decades, fat products low in trans fatty acids have been developed and marketed worldwide. Salt reduction in foods has been in focus as the total intake of salt is too high in many countries. In the EU, for example, it is generally recommended to lower the content of salt in food. Thus spreads low in sodium chloride can contribute to meeting this goal. Fortified fat products can also contribute to the health trend. Through the addition of ingredients, such as cholesterol-lowering plant sterols, good for the heart and cardio health ω-3 fatty acids, or bone and teeth improving calcium, the healthiness of fat products can be further improved.

Pia Stensgaard Petersen and Pernille Gerstenberg Kirkeby are application specialists at DuPont Nutrition & Health

21 OFI – MAY 2016 www.oilsandfatsinternational.com

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MARGARIN E & SPREAD S

PHOTO: PALSGAARD

Keeping frying margarine under control With increased demand for lecithin-free, non-GM and non-allergenic products, developing a low-spatter margarine has become increasingly difficult. Palsgaard explains the key strategies margarine manufacturers need to employ to achieve the best results

A

‘Category 5’ frying margarine isn’t something you want in your kitchen.

Crackling and spitting like a fire in a pine forest, it can clear a radius of five meters in under a minute, and demand hours of cleaning once the heat has died down.

Of course, no manufacturer would ever want its product to act so aggressively – yet Palsgaard has seen more than one customer’s formerly peaceful margarine turn into a kitchen tyrant. The cause?

Most often, it is the result of relatively minor changes in salt, lecithin type and/or milk solids content. One small step for frying margarines, it seems, can be a giant step for their frying performance.

Spitting image Frying margarines – either in stick or liquid form – contain combinations of mono-diglycerides, lecithin, citric acid esters and salt in order to reduce ‘spattering’ – the spitting of hot fat that occurs when the margarine, or other frying aid such as oil or frying fats, melts in the pan. As vapour pressure increases, spattering occurs when coalesced droplets sink to the pan’s hot surface, rapidly converting to steam, and causing small explosions that send fat globules flying.

In the vast majority of frying margarines, lecithin or alternatively citric acid esters are used both as emulsifiers and for their anti-spattering properties, along with a number of other functionalities.

Both products emulsify water droplets, reducing their tendency to coalesce, and facilitating fast evaporation before gravity can bring them into contact with the pan.

Is spattering a problem solved, therefore? Not for European manufacturers, especially – and even less so as time goes on.

GM and allergen troubles To begin with, an increasing proportion of lecithin production is based on genetically modified (GM) crops. That’s hardly a problem in North America, for example, where GM-based products are commonly accepted. Manufacturers in that part of the world, therefore, continue to reap the advantages of highly functional soya lecithin.

For European and American manufacturers, however, allergens such as lecithin based on soyabean oil must be declared in foods. And in Europe, GM products are widely viewed with suspicion by consumers, activists and politicians alike. So using high-quality North American lecithin is not an option. In its place comes products sourced from South America or India. Typically inferior across a broad spectrum of attributes, these products rarely have the same power to reduce spattering. For most European manufacturers, the simple reaction has been to increase salt levels as anti-spattering properties are positively influenced by salt content in the margarine because of its effect on partial steam pressure in the water droplets.

Down with salt Maintaining high salt content in markets that are increasingly demanding salt reduction is, however, hardly a strategy for long-term success. Instead, manufacturers have started down the path to creating frying margarines with ‘normal’ salt levels – while still using lower-grade lecithin. And many are finding the going tough, with increased spattering as a result.

But salt reduction is not the only demand from the marketing departments of leading manufacturers.

With buyers beginning to favour lecithin-free,

non-allergenic solutions as well, requiring the removal of milk solids or the replacement of soya lecithin with less efficient rapeseed or sunflower lecithin, developing low-spatter frying margarines is becoming increasingly difficult.

R&D teams are finding themselves caught between a rock and a hard place. And many are surprised when they make a comparatively simple change with, quite frankly, horrible results.

Who would have thought it would make such a difference?

New solution ‘engine’ To assist manufacturers with these challenges, Palsgaard has invested almost two years in compiling more than 1,000 multi-parameter trials into a comprehensive ‘solution engine’ that can determine how best to maintain or improve frying performance when swapping out ingredients, altering their proportions or changing process equipment and parameters.

While similar testing has been carried out in the past, this is the first time the task has been approached with such diligence. Palsgaard used, for example, an extremely sensitive ‘worst-case’ test methodology that put recipes through their paces using electric, induction and gas stoves, different frying pan types (steel pans on gas turned out to be the toughest challenge) and different quantities of margarine. The company’s application specialists have documented, for example, the effects of: n Reducing or increasing salt content from 0.2% up to 1.5% n Altering production parameters n Optimising emulsifier systems The results of the many tests are now being used to support real-life trials at Palsgaard’s application

22 OFI – MAY 2016 www.oilsandfatsinternational.com

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Emulsifiers and know-how in margarine put to work Licence no.: RSPO-1106336

Aeration, crystallization, fat reduction and plastification: Control these four basic properties and you can craft your margarine products to meet almost any requirement. With application centers on three continents Palsgaard’s specialists can help you throughout the entire process of preparing a new product for production or adjusting an existing recipe.

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Bakery margarines

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Spreads

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Frying margarines

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Table margarines

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Shortenings

Visit www.palsgaard.com to learn more about how we can help you in your product development.

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M ARGARIN E & SPREAD S

labs or on-site at customers’ manufacturing plants, speeding up the time it takes to identify the best recipe for the lowest possible spattering.

Additionally, as part of the research effort, five distinct categories were created defining different levels of spattering. These range from mild-mannered Category 1 frying margarines to Category 5 recipes with fat-spitting qualities so aggressive they could only be used with special protection. Manufacturers trying to reduce salt content, for example, while using the same emulsifier system as for their regular recipe, are almost without exception certain to go a category or two in the wrong direction – most likely at the expense of market share.

Complex interdependencies As any margarine application specialist worth his or her salt knows, the effect of salt in a frying margarine, for example, also depends on the emulsifier system and the milk solids present in the margarine. The processing set-up, however, also has an influence as pressure, capacity, cooling and the actual set-up of pin machines, crystalliser and tube chillers will affect the spattering performance of the frying margarine.

It is such interdependencies that make the job of maintaining spattering performance so tough. And the list is long, indeed.

Consider the role of milk solids, for example.

Their inclusion in frying margarine has a number of beneficial effects, ranging from the desirable browning effect of the Maillard reaction to improved taste and smell. Milk solids also destabilise the margarine, causing water droplets to become less regular, which reduces the tendency to spatter.

And deposits of tiny particles on the base of the

pan attract heat to enable the creation of small ‘chimneys’ that channel steam from the base of the pan safely up to the surface.

Removing milk solids as part of creating a nonallergen product, therefore, has a profound effect on margarine performance.

Control strategies To control spattering, you need to enable gradual rather than rapid evaporation of the water droplets released as the margarine heats up. Additionally, foam formed as the frying margarine heats up, and generated by citric acid ester or lecithin, also helps to keep a lid on the flying fat droplets resulting from the small explosions of heated water.

A good emulsifier system is essential to distribute the inevitable explosions in a delayed pattern. For example, mono-diglycerides can be used to achieve a good emulsion, then hydrolysed or native lecithin can be added to make the emulsifier blend more hydrophilic. Lecithin, in particular, supports the creation of an emulsion that isn’t strong enough to form uniform water droplets that can simultaneously evaporate – and helps to avoid the extreme situation where larger droplets agglomerate to trigger massive explosions. (See Figures 1A and 1B (below) for tests of emulsifier systems with IP soya lecithin and rapeseed lecithin respectively). From the two figures it is evident that the type of lecithin plays a huge role in antispattering behaviour, especially when the salt content is reduced.

Used in isolation, however, lecithin is likely to cause problems, so it is usually necessary to combine it with mono-glycerides and a little citric acid ester. Removing lecithin altogether calls for careful selection of a new emulsifier system as a key

FIGURES: PALSGAARD

FIGURE 1A,B & C: RESULTS OF FRYING TESTS WITH VARIOUS EMULSIFIERS

aspect of the recipe, but also requires the balancing of multiple other elements in the ingredients and production mix.

Copy/paste won’t do it For manufacturers making frying margarine recipe changes, our solution engine tells a clear story: The copy/paste product development model, where R&D takes an existing recipe and ‘tweaks’ it by removing or replacing an unpopular substance (salt, milk solids or soya lecithin), then adjusts the content of the remaining ingredients to combat the inevitable increases in spattering, simply isn’t good enough. A few hundred hours later, at least, the product is still likely to be one, two or more categories higher up the spattering ladder – and probably failing to live up to other functional requirements, too.

In fact, selecting the right emulsifier system is the one thing every R&D team should be focused upon to effectively control spattering.

What works best?

The many screenings have, for the first time, revealed exactly why manufacturers have been encountering such difficulties every time they want to make a change. Of course, it is not possible to summarise the results of so many trials with so many different parameters and values. Key insights, however, from Palsgaard’s work include: n Soya lecithin, used together with specific emulsifier systems, gives the best spattering performance of the different lecithin types (See Figure 1B, left) n Combining mono-/diglycerides and lecithin reduces some spattering in margarines with low salt content n Pressure, capacity, cooling and the actual set-up of pin machines, crystallizer and tube chillers also have an influence n Adding citric acid esters of mono- and diglycerides (Citrem) is perhaps the most effective solution (See Figure 1C left)

An effective new tool

1A 1B 1C 1A: RESULTS OF FRYING TESTS OF A BRICK MARGARINE MADE WITH AN EMULSIFIER MADE FROM A MIXTURE OF MONO- AND DIGLYCERIDES OF EDIBLE FATTY ACIDS, RAPESEED LECITHIN AND CITRIC ACID ESTERS. WITH THIS EMULSIFIER SYSTEM, THE BEST RESULTS ARE ACHIEVED WITHOUT MILK SOLIDS - EITHER SMP (SKIM MILK POWDER OR WHEY) AND WITH A HIGH SALT CONTENT. 1B: RESULTS OF FRYING TESTS OF A BRICK MARGARINE MADE WITH AN EMULSIFIER MADE FROM A MIXTURE OF MONO- AND DIGLYCERIDES, IP SOYA LECITHIN, AND CITRIC ACID ESTERS. COMPARED TO FIGURE 1A IT IS EVIDENT THAT THIS EMULSIFIER SYSTEM WITH AND WITHOUT MILK SOLIDS AND WITH LOW OR HIGH SALT CONTENT OFFERS MUCH BETTER FRYING RESULTS. 1C: RESULTS OF FRYING TESTS OF A LIQUID MARGARINE MADE WITH AN EMULSIFIER MADE FROM PURE CITRIC ACID ESTERS. COMPARED TO FIGURE 1A IT IS EVIDENT THAT THIS EMULSIFIER SYSTEM WITH AND WITHOUT MILK SOLIDS AND WITH LOW OR HIGH SALT CONTENT OFFERS MUCH BETTER FRYING RESULTS. AS OPPOSED TO THE EMULSIFIER SYSTEM TESTED IN FIGURE 1A, THIS SYSTEM DOES NOT CONTAIN ANY LECITHIN, WHICH MAKES IT A GOOD CHOICE FOR AN ALLERGEN-FREE MARGARINE.

Naturally, this focused effort around frying margarine trials has enabled Palsgaard to build a huge base of analytical data and spattering knowhow. Having uncovered the key role emulsifier systems can play in countering spattering, along with greater clarity around the mix of other ingredients, the solution engine has become an effective new tool for adjusting frying margarine recipes to meet a wide variety of demands.

In application labs, the focus is to move manufacturers back down the categories to a safe place – or to help them keep their product’s performance within the same category. The weapon of choice is typically a combination of emulsifier systems based on citric acid esters with or without lecithin (based on soya, sunflower or rapeseed, hydrolysed and non-hydrolysed) – guided by the solution engine’s vast library of test results.

In this way, frying margarine manufacturers have a new opportunity to use their emulsifier partner as a sounding board, sending samples to assess and repair spattering performance and speeding up the new product development process.

Anders Mølbak Jensen, is Product & Application Manager, Lipid & Fine Foods, Palsgaard A/S

24 OFI – MAY 2016 www.oilsandfatsinternational.com

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RUSSIA

On the verge of a breakthrough Although the oils and fats industry in Russia occupies a leading position in the agroindustrial complex, Western sanctions are having a negative effect on domestic producers.

Eugene Gerden reviews the Russian market structure, crops, and oils and fats consumption

T

he Russian government has designed a package of measures aimed at supporting the domestic producers of oils and fats who have been negatively affected by the ongoing economic crisis caused by Western sanctions, according to recent statements of an official spokesman of Alexander Tkachev, Russia’s Ministry of Agriculture.

Currently, the oils and fats industry continues to occupy a leading position in the Russian agroindustrial complex, and part of the plans of the Russian government is to increase its share in total volume of agricultural production in the country during the next several years.

Implementation of these plans is expected to take place within the existing state programme (the development of oils and fats industry in Russia for the period of 2014-2016), which was approved by the Russian Ministry of Agriculture in 2014 and is expected to be extended until 2020.

According to the report of the Russian Ministry of Agriculture, the current situation in the domestic oils and fats industry remains complex.

The provision of state support is an acute need as many domestic producers have been forced to significantly cut their production capacities this year, mainly due to the beginning of the economic recession in Russia.

The situation is aggravated by the fact that the majority of industry enterprises continue to be heavily dependent on foreign equipment and spare parts, while the devaluation of the Russian ruble, caused by Western sanctions, has resulted in many domestic enterprises deciding to suspend their plans for re-equipment for the next several years.

At present, the technical condition of the majority of the industry’s enterprises remains poor, as a significant part of them was built about 60-70 years ago and is now outdated. According to calculations by the Russian Ministry of Agriculture, the average oil extraction plant produces oil with a comprehensive loss of 3-4%, compared to 0.5-0.6% in the case of the EU states.

Planned state support will include the provision of subsidies for the covering of interest rates on loans, provided to producers by domestic banks, as well as the abolishment of duties on the imports of some types of equipment for the industry’s needs.

Personnel and logistics The Russian oils and fats industry is mostly dominated by large vertically integrated companies, which control all stages of production.

However, according to state plans, the majority of subsidies this time will be provided for the support of small and medium-sized enterprises.

Lack of qualified personnel remains another problem of the industry. At present, industry

specialists are trained only in the Moscow and Krasnodar technological institutes, while a significant part of them prefer to find employment in other spheres. According to state plans, this problem will be solved through the establishment of new higher education institutions that will focus on the training of specialists for the industry’s needs.

Still, the government hopes that successful implementation of these measures will help to

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PHOTO: MASSON/ADOBE STOCK

RUSSIA

increase the production of the majority of oilbearing crops as well as processed products, and to increase their exports abroad. In the latter case, the increase of exports is expected to take place through the construction of new trans-shipment terminals, as well as building a new rail fleet designed for the same needs.

Possibility of expanding sunflower

Industry and market share Currently the Russian oils and fats industry is comprised of more than 100 large industrial enterprises with an overall processing capacity estimated at 3,700 tonnes of oilseeds/year; 913,000 tonnes of margarine/year; and 193,000 tonnes of mayonnaise/year.

Since 2013 the annual rate of commissioning of new processing capacities in the industry is estimated at about 1-1.5M tonnes/year.

However, the current financial crisis in the country has resulted in a significant decline in these figures.

In terms of market structure, vegetable oil accounts for 75% in the overall structure of oil production in Russia. In 2014 about 4.7M tonnes of vegetable oil was produced in Russia, which is 23.4% more than in 2013. The results for 2015 have not yet been published, however, according to some sources in the Russian Ministry of Agriculture, the decline may be in the range of 30-32%.

In the case of margarine products, last year the production volume amounted to 1M tonnes, which is significantly higher than 2014, which was 800,000 tonnes. Among the main consumers of these products are the confectionery, dairy,

PHOTO: ALENKADR/ADOBESTOCK

According to data from the Russian Ministry of Agriculture, the main cultivated oil-bearing crops in Russia are sunflower, soyabean and canola.

These account for about 97% of the country’s

total production of oilseeds and the Ministry of Agriculture plans to increase their production further in the coming years.

In the case of sunflower, according to an official spokesman of Alexander Tkachev, the Russian government is considering expanding its sowing area up to 5,000-5,500 ha with an increase in average yield up to 10-12 centners/ha.

According to state plans, this will allow total production of sunflower in Russia to increase up to 5-6.5M tonnes/year by 2017-2018. Overall, the production of oil-bearing crops in Russia should reach 8.5M tonnes/year in the next several years.

Part of the state plans is to increase capacity utilisation of industry enterprises.

The collapse of the USSR and the series of economical and political crises in Russia associated with it have resulted in a decrease of 35-40% in the capacity utilisation in the majority of domestic oils and fats enterprises. However, there is a possibility that such a situation will be improved in the short-term.

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RU SSIA

baking, canning and other segments of the Russian food industry.

Currently Russia remains one of the global leaders in terms of mayonnaise consumption. The average per capita mayonnaise consumption in the country is estimated at about 5kg, compared to 2-2.5kg in EU states. The Russian mayonnaise market currently accounts for 35% of the global market and up to 70% of the domestic sauces market. For comparison, the share of ketchup and other tomato sauces accounts for only about 18% of the market.

Raw material shortage According to Valentina Grigoryeva, PhD Deputy Director of the All-Russian Research Institute of Fats, one of Russia’s leading research institutions in the field of oils and fats, the major problems in the industry are currently a shortage of raw materials, (which leads to the growth of imports of cheaper alternatives such as palm oil, soyabean oil and other products), low quality of domestic products compared to imported alternatives and ever growing production costs.

According to Yuri Morozov, executive director of the Russian Union of Oils and Fats, (a public association which unites Russia’s leading oils and fats producers), high dependence on imported seed material currently remains another problem of the industry. This is mainly observed in the case of sunflower, as well as some other crops.

Morozov also added that in recent years, prices for raw materials have almost doubled, along with fertiliser prices, and there is a possibility that they will continue to grow in the coming years, which will contribute to further increases in production costs.

According to state plans, the increase in the quality of domestic production will take place through the harmonisation of Russian standards with international regulations, as well as the development and introduction of new production technologies and quality standards.

In the meantime, the state’s position on the need to improve the current situation in the industry is contrary to the position of some local producers.

Vladislav Romantsev, director of strategic development of OJSC Efko, Russia’s largest fats and margarine producers, comments: “Currently the Russian oils and fats industry remains one of the most powerful in Europe. The volume of oilseeds production in Russia has almost doubled in the past 10 years.

“The same situation is observed in the case of vegetable oil, production of which has grown to 16M tonnes. This has resulted in the decline of imports, which currently account for no more than 15% of the Russian oils and fats market.”

linoleic acid content, as well as low lipolytic activity.

There are also plans for the increase in production of varieties which are characterised by a high content of protein, and a minimum percentage of husks.

With regards to soyabeans, particular attention will be paid to increasing the production varieties with high protein content, as well as with oil content up to 22-24%.

Finally, there are also plans for the increase of the production of cole crops, oilseed flax and oats.

In contrast to other segments of agriculture, the Russian oils and fats industry is characterised by rapid turnover of capital, which has already attracted interest from some leading Russian oil companies and agricultural holdings. For example Rusagro, one of Russia’s largest agricultural producers and processors, recently acquired a

controlling stake in the Anninsky oil extraction plant, Russia’s leading oil extraction plant and the shares of Krasnodar oil and fat plant.

Favourable climatic conditions One of the main competitive advantages of Russia is favourable climatic conditions for the production of different kinds of oilseeds. For example, the majority of Russian soyabeans are produced in the country’s far east region.

In the case of sunflower, rapeseed, soyabean, oilseed flax and camelina, most of the sowing areas are located in the European part of the country, while corn, sunflower and soyabeans are mostly

produced in the south of the country.

Eugene Gerden is a freelance writer

Increased consumption of healthy fats In addition, the Russian government hopes for the increase of per capita consumption of healthy oils and fats among the population by 7-8kg/year.

At present the average per capita consumption of vegetable fats in Russia is estimated at 15kg/ year, which is significantly lower than EU figures.

However, according to state plans, it should reach 35-40kg during the next 10 years.

Part of state plans is the increase in production of oilseeds with a short growing period, maximum 27 OFI – MAY 2016 www.oilsandfatsinternational.com

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The Industry’s Number 1 Choice

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SUSTAINABILITY

RTRS: Expense without return?

CASTOR OIL

Deadly opportunity

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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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D AIRY FATS

Dairy fats and the milk matrix PHOTO: IVONNE WIERINK/ADOBE STOCK

Although dairy contains saturated fats, recent evidence shows dairy foods may have benefits for eart ealt . rica Hocking, Lydia Cooper and Anne Mullen from The Dairy Council and Dr Adam Lock, Michigan State University detail the nutrient compositon of dairy and its relationship to cardiometabolic health

M

ilk and dairy foods have been an important part of the human diet for many thousands of years. They provide high-quality protein, calcium, iodine, phosphorus and vitamins B2 and B12 in significant amounts. Over time, the dairy industry has advanced to produce a wide variety of products from milk, including cheese and yogurt, and their lower-fat versions.

For decades the public health message has been to reduce fat, particularly saturated fat, from the diet. However, recent evidence suggests saturated fats may not have a negative effect on cardiometabolic health. Even more interestingly – they point to the beneficial role of dairy, despite its saturated fat content, on heart and vascular health.

Dairy has many other components within its food matrix. Interest in the bioactive properties of milk components has grown considerably over the years. In turn, research and product development has grown in the area of ‘bioactives’ or ‘functional food components’. Bioactive food components may play an important role in the prevention of chronic diseases, cancer and coronary heart disease (CHD).

Epidemiological studies suggest risk for certain diseases can be substantially reduced by diet modification. However, the importance of these functions may be outweighed by the overall message around single nutrients, i.e. to reduce saturated fat in the diet, and their impact on health.

rich mineral and vitamin content.

The main constituent of milk fat is triglycerides, which accounts for about 97-98% of total fat. The remaining 2-3% is composed of phospholipids, cholesterol, diacylglycerol, monoacylglycerol and free fatty acids. About 64% of the fatty acids found in whole milk fat are saturated fatty acids (SFA). Of these about 12% are short-chain SFA (C4:0-C10:0) and stearic acid (C18:0) makes up a further 12%.

The remaining SFA are a mixture of lauric acid (C12:0), myristic acid (C14:0) and palmitic acid (C16:0). Approximately 30% of the fatty acids in milk are monounsaturated fatty acids (MUFA) and 4% are polyunsaturated fatty acids (PUFA). The majority of these contain only cis-double bonds. A smaller proportion, approximately 4%, are naturally occurring trans fatty acids (TFA), which have one or more trans-double bonds.

UK milk composition and consumption

SFA and cardiometabolic health

The nutrient composition of milk will vary depending on cow breed, stage of lactation, feed composition, season of milking and even geographical location. Generally though, cow’s milk is high in protein, calcium, iodine, riboflavin (B2) and vitamin B12 and is a source of phosphorus, pantothenic acid (B5) and potassium. Skimmed and semi-skimmed milks are low in fat. Whole milk, however, is not high in fat as is often perceived.

The main constituent of milk is water, at approximately 88-90%, followed by carbohydrate (lactose) at 4.6-4.8%, protein at 3.3-3.5%, fat ranging from 0.3% (skimmed milk) to 3.5% (whole milk) and the remaining percent represents milk’s

The term saturated fat is an umbrella term for a now recognised diverse family of SFA. For the past several decades, public health advice has been to limit the intake of saturated fat in the diet. The Seven Countries Study is credited with the ‘diet-heart hypothesis’ whereby dietary SFA were associated with raised total plasma cholesterol and total plasma cholesterol was associated with cardiovascular mortality. It was proposed that a diet low in SFA would reduce plasma cholesterol and therefore reduce risk of CHD. This association was translated into public health messaging in many Western countries and has been the given dogma in the UK since the 1980s.

In the UK, current government public health advice is to reduce all types of fat in the diet and to replace saturated fat with unsaturated fat, according to the Department for Health. The Scientific Advisory Committee on Nutrition (SACN) advise that intakes of saturated fat should not exceed 11% of total energy intake. This equates to a daily recommendation of around 20g SFA for a women and 30g SFA for a man; current National Diet and Nutrition Survey (NDNS) data shows that women in the UK consume 22.1g and men consume 28.4g SFA per day, about a fifth of which comes from dairy.

More recently, research suggests that the relationship described in the ‘diet-heart hypothesis’ is overly simplistic. With over 270 factors now identified as affecting plasma cholesterol, dietary saturated fatty acids are no longer thought to be the sole causal agent of increased plasma cholesterol. Furthermore, an Institute of Medicine expert panel recently question whether LDL (‘bad’) cholesterol is a good biomarker for cardiovascular outcomes in dietary interventions. The relationship of fats, cholesterol and health is far more complex than initially thought. After reviewing the 50 years of research related to the diet-heart hypothesis, Taubes concluded that there was little evidence that a diet low in saturated fat prolongs life.

Siri-Tarino et al and Chowdhury et al have both demonstrated that there is insufficient evidence from prospective epidemiologic studies to conclude that dietary saturated fat is associated with an increased risk of cardiovascular disease (CVD), CHD or stroke. Chowdhury et al also suggested that not all saturated fatty acids are equal in

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TABLES: THE DAIRY COUNCIL

D AIRY FATS

TABLE 1: NUTRIENT CONTENT OF MILK, YOGURT AND CHEESE PER 100G Milk Yogurt

Cheese

Whole

Semiskimmed

Skimmed

Plain

Plain low-fat

Fromage frais

Cheddar

Cottage cheese

Cheese spread

Energy (kcal)

63

46

34

79

57

99

416

103

237

Protein (g)

3.4

3.5

3.5

5.7

4.8

5.8

25.4

9.4

11.3

Carbohydrate (g)

4.6

4.7

4.8

7.8

7.8

13.2

0.1

3.1

6.5

Total Fat (g)

3.6

1.7

0.3

3.0

1.0

2.9

34.9

6.0

18.6

Sat Fat (g)

2.3

1.1

0.1

1.9

0.7

1.9

21.7

3.2

12.9

Trans fat (g)

0.1

0.1

Trace

0.1

Trace

N

1.4

0.30

0.9

MUFA (g)

1.0

0.4

0.1

0.8

0.2

N

9.4

1.7

4.8

PUFA (g)

0.1

Trace

Trace

0.1

Trace

N

1.1

0.2

0.7

Potassium (mg)

157

156

162

280

228

143

75

161

219

Calcium (mg)

120

120

125

200

162

140

739

127

498

Phosphorus (mg)

96

94

96

170

143

123

505

171

835

Iodine (µg)

31

30

30

63

34

17

30

24

29

Thiamin (mg)

0.03

0.03

0.03

0.06

0.12

0.11

0.03

0.05

0.05

Riboflavin (mg)

0.23

0.24

0.22

0.27

0.22

0.29

0.39

0.24

0.36

B12 (µg)

0.9

0.9

0.8

0.2

0.3

0.5

2.4

0.6

0.6

TABLE 2: PARTIAL LIST OF BIOACTIVE COMPONENTS IN MILK THAT HAVE HUMAN HEALTH IMPLICATIONS Milk Protein Components Milk Fat Components Other Components Cancer Whey proteins

Conjugated linoleic acid

Calcium

Casein

Vaccenic acid Sphingolipids

Lactose

Lactoferrin

Butyric acid

Vitamins A and D

a-Lactalbumin

13-Methyltetradecanoic

Oligosaccharides

Peptides

Acid

Nucleosides

Ether lipids

Probiotics

Cardiovascular Health Whey proteins

Conjugated linoleic acid

Calcium

Casein

Oleic acid

Vitamin D

Omega-3 fatty acids Hypertension Whey proteins

Calcium Potassium Immune Response

Whey proteins

Conjugated linoleic acid

Probiotics

MFGM* proteins Bone Health Peptides

Conjugated linoleic acid

Calcium Phosphorus Vitamin K

*MILK FAT GLOBULE MEMBRANE

their effects on coronary outcomes and current recommendations should be reviewed, as has been done in France where individual SFA were recently drawn into consideration in updated dietary guidelines. Chowdhury’s research shows that some of the SFA biomarkers associated with milk intakes are associated with lower CHD risk, particularly circulating levels of pentadecaenoic acid, which was associated with a reduced incidence of

coronary outcomes.

Indeed, further research is beginning to investigate the effect of SFA on other cardiometabolic diseases, including obesity and type 2 diabetes (T2DM). A systematic review by De Souza et al recently reported that saturated fats are not associated with all-cause mortality, CVD, CHD, ischemic stroke or T2DM. However the story is not the same for trans fat

(TFA). TFA have been associated with all-cause mortality, total CHD, and CHD mortality in several studies.

TFA have been suggested as being the most potent cholesterol-raising dietary fatty acids and are found in the diet by means of: 1) Processing of hydrogenated vegetable oils 2) Naturally occurring in ruminant meats and milk products Over the years, TFA have been reduced significantly from industrial food processing and the latest NDNS data shows that around 1.3g of TFA are consumed by adults daily in the UK, with 27% (0.35g) of those coming from milk and milk products, excluding butter.

The content and isomeric profile of TFA found in dairy products differs significantly from those in industrialised TFA and growing evidence suggests that TFA from natural sources may not have the same adverse effect on human health as those from industrial sources. These differences are of importance because the position of the transdouble bond can influence both physiological properties and the rate of biochemical reactions.

Dairy and cardiometabolic disease Despite the fact that 64% of milk fat is SFA, there is a growing body of evidence which supports the positive role of dairy in cardiometabolic health, as shown by a number of prospective epidemiologic studies. In meta-analysis, Soedamah-Muthu et al examined the associations of milk, total dairy, and high-and low-fat dairy with the risk of CVD; including CHD, stroke and total mortality, and found that milk intake was not associated with total mortality but may be inversely associated with overall CVD risk. Further studies by SoedamahMuthu et al investigated dairy consumption and incidence of hypertension.

The dose-response meta-analysis of prospective cohort studies suggested that low-fat milk and dairy can play a role in the prevention of hypertension but needed further randomised control trials to

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D AIRY FATS

confirm this. In addition, dairy fat consumption does not appear to be associated with obesity, CVD or T2DM. Several recent literature reviews in this area also support the beneficial role of dairy in cardiometabolic health.

The milk matrix It has been suggested that components found in milk such as milk proteins/peptides, fat and calcium are beneficial for reducing blood pressure, inflammation and T2DM risk. Hjerpsted et al demonstrated that there is no association between cheese consumption and elevated blood pressure.

Soerensen et al found that total cholesterol and LDL cholesterol were significantly lower following a short dietary intervention with milk and cheese, each containing 1,700mg calcium per day among healthy young men, compared to an isocaloric non-dairy diet containing 500mg calcium per day.

Chen et al concluded that no association was found between consumption of cheese with risk of T2DM. Tapsell et al concluded that there is a reduced risk of CVD to consumers of fermented dairy foods, such as cheese and yogurt.

Conjugated linoleic acid (CLA) isomers from milk fat, including rumenic acid have been found to have beneficial properties in relation to cancer and atherosclerosis due to their anti-inflammatory properties. However, it should be noted that extensive work supports these effects of CLA in vitro and in animal studies; studies in human subjects have been less conclusive.

A new area of research on the role of milk

components appears to be moving towards the investigation of the milk fat globule membrane (MFGM) in human health. Milk contains a unique fat globule, which is encased within a double layered membrane. It comprises carbohydrates, membranespecific proteins, glycoproteins, phospholipids, and sphingolipids. The composition and form of the globule varies in different dairy products and possesses different physicochemical properties specific to each dairy product depending on the size of the globule.

Rosqvist et al hypothesised that different dairy foods may have distinct effects on plasma lipids because of their varying content of MFGM. Their feeding study among overweight subjects showed that milk fat enclosed by MFGM did not impair lipoprotein profile whereas the control diet of butter oil, which has a greatly reduced MFGM content, increased plasma lipids.

Conway et al found that consumption of buttermilk MFGM significantly reduced systolic blood pressure, mean arterial blood pressure and plasma levels of the angiotensin I converting enzyme compared with the placebo, indicating that short-term buttermilk consumption reduces blood pressure in normotensive individuals. An earlier study by this group investigated the effect of buttermilk MFGM consumption in humans and suggested that reduced cholesterol concentrations in men and women may be primarily through inhibition of intestinal absorption of cholesterol.

It seems clear that the relationship between dairy fats and cardiometabolic disease is more complex than initially thought, and not all fats

are created equal or have negative implications for metabolic health. Milk and dairy products contain a number of bioactive food components, for which there is a growing interest in their role in human health. Milk contains an impressive array of bioactive proteins, peptides and fatty acids (see Table 2, left). Fermented milk products have also shown beneficial effects on health-related variables and may have a beneficial role to play in cardiometabolic disease, but there are limited interventional trials in this area.

Summary In summary, milk and dairy foods are nutritious and provide a number of nutrients to the diet. Emerging research suggests that saturated fats may not appear to have such a negative effect on cardiometabolic health as once perceived. Further investigation is needed to clarify the amounts that are suitable for a healthy lifestyle. More interestingly, dairy components – including fats and dairy bioactive components – appear to have a protective role in cardiometabolic disease, including CHD, T2DM, hypertension and stroke, and mortality. Larger human randomised controlled trials are needed to confirm the bioactive properties found in milk.

This feature was written by Erica Hocking, Lydia Cooper and Anne Mullen, registered nutritionists and dietitians from The Dairy Council; and Dr Adam Lock of Michigan State University; and reproduced with permission. For references please go to www.ofimagazine.com/milkmatrix

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STATISTIC S

EU SUNFLOWER OIL AND SEED PRICES (US$/TONNE)

STATISTICAL NEWS FROM MINTEC Sunflower seed and oil Global sunflower oil production in 2015/16 is estimated at 15.1M tonnes, up 1% year-on-year, driven by good supply from Argentina and favourable conditions in Ukraine and Russia. Ending stocks are estimated to fall 20% year-on-year to 1.4M tonnes. Production of sunflower seed is expected to fall slightly by 1% to 39.1M tonnes, although still high by historic standards.

Exports of sunflower oil from the Black Sea are estimated at near record amounts. Ukraine exports in 2015/16 are estimated at 4.1M tonnes, up 6% year-onyear, and exports from Russia are estimated at 1.5M tonnes, up 3% year-on-year. Production in Ukraine is up 7% year-on-year to 4.7M tonnes and up 5% year-on-year at 3.5M tonnes in Russia. Spring plantings are well ahead of last year in both countries with potential for record planted area in Ukraine and both countries are expected to have record high crushing levels next season.

SOYABEAN OIL PRICES ROTTERDAM (EU€/TONNE)

Soyabean oil Soyabean oil prices have risen in recent weeks, driven by concerns over severe flooding delaying harvest in Argentina and southern Brazil, and also strength in other vegetable oil markets, primarily palm oil.

Soyabean production is expected to remain close to last year’s level at 320.2M tonnes. Production of soyabean oil is expected to rise 6% to 52M tonnes in 2015/16. Ending stocks of soyabeans are forecast to rise 2% to 79M tonnes. These forecasts, however, do not take into account potential damage to the South American crop, and the impact of this damage is yet to be seen in the weeks to come.

CRUDE PALM OIL PRICES ROTTERDAM (US$/TONNE)

Palm oil Palm oil prices remain at high levels due to tightening stocks. Although global production in 2015/16 is forecast to remain stable year-on-year at 61.7M tonnes, consumption is forecast 6% up year-on-year to 62.1M tonnes. As a result, ending stocks are forecast to fall 20% year-on-year to 6M tonnes. Dry conditions continue to reduce Malaysian yield, adding further upward pressure to palm oil prices.

PRICES OF SELECTED OILS (US$/TONNE)

Soyabean Crude Palm Palm Olein Coconut Rapeseed Sunflower Palm Kernel Average price INDEX

2013

2014

Jan 16

Feb 16

Mar 16

April 16

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

897 825 762 1,276 906 905 1,120

715 608 596 1,161 781 836 914

749 658 630 1,220 781 851 994

759 690 662 1,441 773 842 1,208

799 727 702 1,571 811 858 1,289

964 228

956 226

802 190

840 199

911 216

965 229

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

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