non-food options at farm level annual fibre crops

Non-Food Options at Farm Level

Annual Fibre CropsSteef Lips/Wolter Elbersen

Wageningen UR Institute AFSG

23-April 2008

ENFA - European Non-Food Agriculture, Final Meeting, 23-24 April 200822

Overview

• Introduction• Strategic Niche Management of Non-food products • Bast fibre crops• Production and processing chains• Statistics and • Applications• Environmental effects• Data sheets• Critical success factors• Conclusions


Task 26 Annual Fibre Crop Systems• Quantitative description

of annual fibre crop production systems from field to end product– Flax – Hemp– (Kenaf)

• Discussion and analysis of critical success factors

Harvest of flaxDew retting of flax

Hemp production line



Beyond Agrification; an analysis of policy and innovation for non-food application of agricultural produce since the 1980s in the Netherlands.

(in review) Harriëtte L. Bos, Maja A. Slingerland, Wolter Elbersen, Rudy Rabbinge.

2008. • Innovation policy for non-food chains in the

Netherlands (and EU) is analysed (since the 1980s) using Strategic Niche Management (SNM) theory

• Factors of success for innovations in this field are presented based on a stakeholder study.

• Recommendations for innovators and policy makers in the field of non-food products are derived.

• The quality of the processes at regime level and at niche level has increased considerably in the last years.


Factors for success of a renewable resource based product or innovation

1. A specific market demand is crucial. The entrepreneur who will market the new product has to take the lead for market introduction comes into view.

2. A successful new technology is not enough. Demand still needs to be created. 3. Availability of suitable infrastructure helps in bringing a new development to the

market, the need for a large investment in infrastructure is serious barrier4. Many successful initiatives are spin-offs from existing agro-food production

chains, setting up a completely new production chain, with new players, is much more difficult and costly.

5. Environmental benefits are by themselves not enough, unless these benefits provide specific functional advantages.

6. Existing regulations can obstruct market introduction. New regulations can provide protection for a technological niche and are often give an impulse to products based on renewable raw materials.

7. The end market for biobased products and the raw materials are very different. In the EU the price of raw materials is often too high. Imports are needed. A new product does not mean success for local farmers.

These observations are important on an individual development level to increase the chances of success and should also be considered when taking policy measures.


Conclusions• Drivers renewable resource policies have changed over the last

twenty five years, the stimulating measures of the government have focused mainly on the stimulation of R&D.

• Stimulation of R&D is important. For a market to take off other measures to protect a technological niche can be crucial.

• The measures that need to be taken will have a direct influence on the market and thus require political decisions.

• Mainly investing in R&D and expecting the market to take off by itself, strengthens the “innovation paradox”: a lot of high grade fundamental knowledge, but very few new products in the market.

• Our analysis shows that the trend towards a biobased economy is now far more robust than it was

• There are good opportunities for the government to strengthen these developments with the proper policy instruments, taking into account the lessons of the past.


Bast Fibre Crops

• Flax

• Hemp

• Kenaf

Dew retting of flax


water retting of kenaf

Harvest of flax


Natures construction of a flax stem


Flax Textile production chain

Short fibres

Breeding /seed productionsoil preparationclimatesowingirrigation / fertiliser weed and disease controlharvest / retting Stems

Agricultural production

Storage/transport

calanderingrefining, drafting, and doublingspinning

weaving

finishing and designFabric

Textile processing

Decortication scutching (cleaning)hackling (combing)

Fibres

Fibre extraction

Sliver

Yarn

Marketable end-product

Hurds/Shives


Textile production chain

€primary processing

spinning

weaving

consumer

marketing &design

processing


Hemp short fibre production chain

Short fibres

Breeding /seed productionsoil preparationclimatesowingirrigation / fertiliser weed and disease controlharvest / retting

Stems

Agricultural production

Storage/transport

Decortication scutching (cleaning)

Fibre extraction

Hurds


Applications of short fibres

• Textile– 40% of flax

• Paper – 85% of hemp fibres– 35% of flax fibres

• Composites – 12% of hemp fibres– 25% of flax fibres

• Building/insulation– 3% of hemp fibres


Production areas

• FAO and EU databases not always reliable, sometimes straw and fibres are mixed up. FAO stopped data collecting on hemp production.

• China is largest producer of flax and hemp fibres.

• In EU 95 % of flax is produced in the area Northern France, Belgium and Netherlands. France produces most of the flax in Europe.

• Hemp production area is 13% of the flax production area.

• France also produces most of the hemp in the EU.


Flax production area (ha)

Country 1999 2000 2001 2002 2003 2004 2005 2006 2007 Belgium 12198 13308 16990 15316 19250 19827 18670 15959 14700 Denmark 32 45 19 0 0 0 0 0 Germany 569 402 297 299 225 180 38 30 Spain 126226 13895 215 55 0 0 0 0 France 48000 55629 68000 68434 75900 80080 81843 75965 75000 Lithuanian 10000 5700 3599 1200 425 Latvia 2400 2072 1490 Italy 0 0 0 6 20 80 18 0 Netherlands 3568 4016 4415 4053 4605 4517 4691 4358 3438 Poland 6000 9000 6823 4225 2055 Czech Rep 6000 5500 4318 2752 824 Austria 336 450 130 171 142 110 133 129 Portugal 4430 3522 0 0 0 0 0 0 Finland 604 1016 405 192 97 67 57 Sweden 1327 21 54 0 30 0 62 UK 14163 11816 4430 177 1900 1820 21 EU 211453 106120 94955 88703 124139 129311 122283 106170 Data from CELC (Confédération Européenne du Lin et du Chanvre)


Flax production area (ha)

Country 1999 2000 2001 2002 2003 2004 2005 2006 2007 Belgium 12198 13308 16990 15316 19250 19827 18670 15959 14700 Denmark 32 45 19 0 0 0 0 0 Germany 569 402 297 299 225 180 38 30 Spain 126226 13895 215 55 0 0 0 0 France 48000 55629 68000 68434 75900 80080 81843 75965 75000 Lithuanian 10000 5700 3599 1200 425 Latvia 2400 2072 1490 Italy 0 0 0 6 20 80 18 0 Netherlands 3568 4016 4415 4053 4605 4517 4691 4358 3438 Poland 6000 9000 6823 4225 2055 Czech Rep 6000 5500 4318 2752 824 Austria 336 450 130 171 142 110 133 129 Portugal 4430 3522 0 0 0 0 0 0 Finland 604 1016 405 192 97 67 57 Sweden 1327 21 54 0 30 0 62 UK 14163 11816 4430 177 1900 1820 21 EU 211453 106120 94955 88703 124139 129311 122283 106170

Data from CELC (Confédération Européenne du Lin et du Chanvre)


Hemp production area (ha)


Country 1999 2000 2001 2002 2003 2004 2005 2006 2007 Denmark 23 7 8 0 5 40 80 1 Germany 4003 2967 1948 2035 2628 1750 1985 1235 864 Spain 13473 6103 4 694 704 600 853 13 France 10500 7700 7000 7730 9452 8400 9718 8038 8800 Hungary 500 277 Ireland 22 6 0 0 0 0 0 0 Italy 197 151 200 239 750 940 157 236 Netherlands 872 806 946 2106 1469 25 49 23 118 Austria 289 287 860 310 352 399 342 545 500 Poland 200 1000 129 1000 1376 Czech Rep. 150 156 1162 Portugal 185 4 0 0 0 0 0 0 Finland 264 59 116 33 10 24 6 Sweden 0 0 0 0 0 140 200 377 820 UK 2500 2245 2556 1409 2438 1400 1274 1600 EU 32328 20335 13638 14555 18008 15368 15226 14230


Hemp production area


Country 1999 2000 2001 2002 2003 2004 2005 2006 2007 Denmark 23 7 8 0 5 40 80 1 Germany 4003 2967 1948 2035 2628 1750 1985 1235 864 Spain 13473 6103 4 694 704 600 853 13 France 10500 7700 7000 7730 9452 8400 9718 8038 8800 Hungary 500 277 Ireland 22 6 0 0 0 0 0 0 Italy 197 151 200 239 750 940 157 236 Netherlands 872 806 946 2106 1469 25 49 23 118 Austria 289 287 860 310 352 399 342 545 500 Poland 200 1000 129 1000 1376 Czech Rep. 150 156 1162 Portugal 185 4 0 0 0 0 0 0 Finland 264 59 116 33 10 24 6 Sweden 0 0 0 0 0 140 200 377 820 UK 2500 2245 2556 1409 2438 1400 1274 1600 EU 32328 20335 13638 14555 18008 15368 15226 14230


Flax long fibre data France

0

50

100

150

200

250

300

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

year

pri

ce (

€/to

n)

or

area

(10

00 h

a)

0

20

40

60

80

100

120

sell

ing

s o

r st

ock

(10

00 t

on

)

price

area

sellings

in stock


Increased area and higher yields led to higher sales at lower prices and increasing stock in the last years


Growth last year <3% primarily based on the new techniques of flow-moulding and injection moulding

No clear direction for NF materials: Insider said Successes in the past, weakening at the moment, and an interesting future”


3.6 kg/passenger car in 2004 and 2005 only slightly higher than in 2003 (3.5 kg/passenger car).


Flax short prices (France) and share in German automotives

0

10

20

30

40

50

60

70

1998 1999 2000 2001 2002 2003 2004 2005 2006

year

pri

ce €

/100

kg

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

shar

e

price short flax fibre share exotic fibres in automotives

share flax in automotives share hemp in automotives

Sources: NOVA and CELC

High flax prices resulted in higher imports of other fibres. No turn back at lower prices again. Hemp short of availability.


Environmental aspects

• Linen shirt compared to cotton shirt (Bio Intelligence Service)– 15% more primary energy consumption, ¼ of water consumption,

18% less eutrophication, 1/8 of aquatic ecotoxicity potential, equal global warming potential.

• Hemp requires no crop protection chemicals.

• Bast fibres can only compete in specialty pulps for paper making— high transport costs and chemical recovery required

• In disposable tissues and diapers the persistence of synthetic fibres is in favour for the use of renewable and degradable fibres, provided that the technical performance is the same



• Biodegradable plant pots based on plant fibres – Can not compete with plastic pots on price. – Ecological advantage for using biodegradable products is not yet

included in the product costs. – UK has marked plastic plant pots with extra tax.– Increased interests of consumers and producers.

• Fibre crops could play a more important role in building and construction applications.– Insulation, fibre board material, lightweight concrete, bricks and loam

buiding blocks.– Abaca fibres can replace asbestos in cement– Kenaf insulation panels have lower impact than other products, 50% of

the energy consumption originates from the 15% polyester fibre that is added as a glue.



• Natural fibres in composite– Agrofibres composites have lower impact in transport applications than

glass fibre composites due to lower weight.

– Hemp reinforced car parts compared with ABS parts have not only a small environmental advantage in the production phase, but also the weight saving leads to energy savings during the use phase.

– Miscanthus reinforced PP transport pallets has an environmental advantage of 30% over glass fibre. Significant reduction of energy consumption due to weight saving during the use phase was reported.


Flax datasheet for ENFA model

crop protectionbentazon 3 litre 32.50 97.50mineral oil 6 litre 5.00 30MCPA 0.5 litre 6.50 3triallaat 3.5 litre 15.20 53

deseases and plaguesdeltametrin 0.3 litre 37.00 11

energyfuel 100 litre 0.75 75

fertilizerN (kalkammonsalpeter??) 40 kg 0.83 33P2O5 (tripelsuper) 80 kg 0.57 46

K2O (Kali-60) 200 kg 0.40 80

based on participation contract "Kwin", PPOcorrected for fuel, fertilizer and inspection costs and yield

Fibrecrop FLAX participation contractcountry Netherlands

amount/ha unit price/unit income/costsincomestraw 7000 kgfibre long 1200 kg 1.6 1920fibre short 1000 kg 0.25 250seeds 1000 kg 0.68 680gross income 2850

costssowing seed 115 kg 1.78 205labor 14 hour





K2O (Kali-60) 200 kg 0.40 80

other costsinspection costs 1 ha 30.00 30interest 5.5 % 15.0insurance 0.90 % 2560 23.0productschapsheffing 1 ha 14 14N-mineral samples 0.5 sample 45.4 23

harvest costs contract 1 ha 950 950scutching 1 ha 707 707haulage 7 ton 35.00 245output seeds 1000Total costs 2640

Gross margin 210

subsidy farmer EU single area payment

Processing /hainput quantity 7000 kgoutput seeds 1000 kg 0.68 680output fibres long 1200 kg 1.6 1920output fibres short 1000 kg 0.4 400output core 2500 kg 0.028 70output dust 600 kg -0.01 -6labour 15 h -355electricity 600 kWh 0.12 -72administration -212management -139depriciation -89interest -26payment to the farmer -2850costs scutching charged to farmer 707Margin processor 28Margin farmer and processor 238

Eu subsidy seeds and fibres in 2008seed 1000 kg 0.22 220long fibre 1200 kg 0.16 192short fibre 1000 kg 0.09 90EU processor 1 ha 120 120total subsidy in 2008 622

amount/ha unit price/unit income/costs

Composed from literature and interviews

Contains environment related data


Flax Datasheet for ENFA model

amount/ha unit price/unit income/costs

based on participation contract "Kwin", PPOcorrected for fuel, fertilizer and inspection costs and yield

Fibrecrop FLAX participation contractcountry Netherlands

amount/ha unit price/unit income/costsincomestraw 7000 kgfibre long 1200 kg 1.6 1920fibre short 1000 kg 0.25 250seeds 1000 kg 0.68 680gross income 2850

costssowing seed 115 kg 1.78 205labor 14 hour





K2O (Kali-60) 200 kg 0.40 80

other costsinspection costs 1 ha 30.00 30interest 5.5 % 15.0insurance 0.90 % 2560 23.0productschapsheffing 1 ha 14 14N-mineral samples 0.5 sample 45.4 23

harvest costs contract 1 ha 950 950scutching 1 ha 707 707haulage 7 ton 35.00 245output seeds 1000Total costs 2640

Gross margin 210

subsidy farmer EU single area payment

Processing /hainput quantity 7000 kgoutput seeds 1000 kg 0.68 680output fibres long 1200 kg 1.6 1920output fibres short 1000 kg 0.4 400output core 2500 kg 0.028 70output dust 600 kg -0.01 -6labour 15 h -355electricity 600 kWh 0.12 -72administration -212management -139depriciation -89interest -26payment to the farmer -2850costs scutching charged to farmer 707Margin processor 28Margin farmer and processor 238


Margin processor 28Margin farmer and processor 238


Composed from literature and interviews

Also contains economic data


Critical success factors

• Crucial for a successful initiative is the existence of a specific market demand for the new product, but a market does not develop by itself, it needs to be created.

– Automotives-- Replacing glass fibre by natural fibre was technically feasible and slowly growing with limited impact on the market.

– The demand for this alternative to glass fibre composites has only developed when new laws were introduced (in Germany) which made companies responsible for recycling their products.



• The development needs to be technologically feasible, but a successful new technology is in itself not enough to guarantee a successful market introduction, the market demand still needs to be created

– new process in which granules of natural fibres and plastic composites was developed.

– Numerous products can be moulded with this composite that are recyclable and can be used as fuel at the end of the life cycle.

– This half product creates new possibilities in the use of natural fibres composites.

– The technology is ready but the market for this product needs to be created.



• The availability of suitable infrastructure helps in bringing a new development to the market, the need for a large investment in infrastructure can be a serious barrier for new developments.

– Hemp processing in the Netherlands

– To be competitive large scale processing is necessary

– large investments.

– Less risk by starting by installing a full-scale second hand fibre extraction line in existing buildings and using existing infrastructure for equipment and storage



• Environmental benefits such as biodegradability and renewability and sustainability in general are by themselves not enough to sell a (biobased) product, unless these benefits provide specific functional advantages.

– LCA claims are difficult to quantify.

– Even when there are obvious environmental advantages, most of the consumers will make their choices on price and performance.

– Natural fibres are thought to equalize the humidity in living spaces better than mineral and glass wool.

– This selling point is much more relevant in the market as this is specifically demanded.

– A positive environmental impact is less relevant as this is not specifically required for in the market.



• Existing regulations can obstruct market introduction.

– Warm water retting of fibres in Iceland to get high quality was feasible but import taxes made it to costly to get the fibres back for further processing.

– Kyoto: High wheat prices combined with low fibre prices forces farmers to switch from fibres to wheat. Expectation 2008 - 20% less flax in the Netherlands and -10% flax in Spain

• On the other hand new regulations which forbid or discourage current products or directly promote or facilitate biobased products are often necessary to give an impulse to products based on renewable raw materials.

– EU support for fibre crops is essential

– UK Pot plants

– Recycling of car parts



• The end market for biobased products and the raw materials market are very different. – In Europe the price of agricultural raw materials is often so

high that raw materials are cheaper imported from abroad.

– Successful introduction of a new product based on agricultural raw materials does not automatically mean success for potential local producers of raw material.

– In Italy insulation materials are produced from local grown kenaf. However the company has started to import kenaf fibres from Asia which can be delivered at about the same price. Larger scale processing and higher growing yields are necessary to be competitive with fibres from Asia.


Conclusions

• Natural fibres can be used in many products to make them renewable and more sustainable.

• This is not enough to create a market for these new products.

• A product must have specific advantages in the use phase as the majority of consumers will buy on price and performance.

• Or the use of these products has to be stimulated by regulations.

• The cultivation of fibre crops in the EU does need EU-support .

• Current high food prices should make fibre crops less competitive. This has not taken into account in the analyses presented.


END

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non-food options at farm level annual fibre crops

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