starch italics 8th edition

GIRACT

Starch Industry OverviewDecember 2010/January 2011

Starch Italics

www.giract.com

Starch Italics

Starch Industry Overview

Dec 2010/ Jan 2011

TABLE OF CONTENTS

June/July 2010 © GIRACT 2010

Crops and grains

p.1 Tanzanian cassava growers boosted

R&D cooperation on genetically

optimized potatoes

p.2 Cargill beefs up in Australia with AWB

grain deal

p.3 China seeks to add more value to domestic

products through innovation

Solution for materials and industrial

production

p.4 Hooghly potato on Israel platter

p.5 Total Supply Of U.S. Distillers‘ Grains

Accelerates Over The Past 4 Years

New staple food needed for food security

goals

Starch and derivatives

p.6 Mitr Phol Sugar to begin PLA production

next year

p.7 U.S. EPA Removes Artificial Sweetener

Saccharin From Hazards List

India: Sugar declines on production

estimates

p.8 Stevia, the alternative sweetener for health

Company News

p.9 AVEBE and BASF Plant Science Start

R&D Cooperation on GM Starch Potatoes

p.10 Cargill goes on USD 1 bio-plus shopping

spree

Cargill to pay Rp 2.2t for AKR‘s Sorini

stake

p.11 Novasep, Danisco develop new co product

Wrigley to launch three new variants in

2011

p.12 ADM To Build Two New Grain Elevators

In Nebraska

US based Corn Products International to

invest between USD 75 mio and USD 100

mio in its Brazil business

Bio-plastics

p.13 Sweet and Biodegradable: Sugar and

Cornstarch Make Environmentally Safer

Plastics

Cheryl Perkins column: Future

generations will see growth of bioplastics

p.14 Not All Bioplastics Are Greener p.15 Israeli scientist finds sweet solution

to plastic waste

p.16 Sustainable Bioplastics

for Future Applications

New biodegradable plastic marketed for

foodstuffs

p.17 Launch of new compostable checkout bag

Green Products: Disposable dinnerware

p.18 Yeast and plant fatty acids produce

durable recyclable plastic; conversion into

biodiesel

New hope for heart patients:

Biodegradable stents

Bio-fuels

p.19 Shock Wave: Cavitation shaking up

ethanol with revenue upside

p.20 Europe searching for right biofuel balance

FTC: US ethanol market still

unconcentrated

p.21 Bioengineers develop bacterial strain to

increase ethanol biofuel production

p.22 Celluosic ethanol estimates revised

downward

Others

p.22 Eco-friendly chromatography

Regional Language News

China

p.23 How will the fate of Hebei corn?

p.24 Corn prices is slightly increasing in

Guangdong market (Table of Contents continued on next page)

http://biofuelsdigest.com/bdigest/2010/12/03/shock-wave-cavitation-shaking-up-ethanol-with-revenue-upside/


Starch Italics

Starch Industry Overview

Dec 2010/ Jan 2011

TABLE OF CONTENTS

June/July 2010 © GIRACT 2010

GLOSSARY

bio ‗000 000 000

cpd cases per day

crore ‗0 000 000

JV Joint Venture

k ‗000

kt ‗000 tons

klpd kilo litres per day

lakh ‗00 000

lpd litres per day

mio ‗000 000

M&A Merger

&Acquisition

pa per annum

t tons

tpa tons per annum

tpd tons per day

tph tons per hour

tpm tons per month

GIRACT Global Starch and Starch Derivatives study

Giract has just published new multi-

client research into global starch

supply, examining in particular the

impact of the recent economic

downturn on the industry. Details on

the following page.

Regional Language News (Contd’)

China

p.24 Corn prices of Hebei province is stable in

December 2010

Celanese to invest USD 300 mio for

Chinese ethanol plants

p.25 Golden Harvest Futures: Corn

Russia

p.25 In getting involved bioethanol wine yeast

Russia cancels import duties on barley,

oats, wheat, rye and maize, import duty on

soybean meal will be saved

p.26 Latvia to build a plant to produce

bioethanol

Germany

p.27 The Swedes have reported a breakthrough

in the production of bioplastics

Bioplastic from non-edible starch

Brazil

p.27 Area corn crop is 18% lower in Parana

Thailand

p.28 Prices tend to rise, Thailand, cassava and

cassava products in demand

p.29 Thailand: Organic growth potential

Cassava starch market in Thailand

South America

p.30 Argentina will provide ethanol and sugar

Vietnam

p.30 Farmers urged to cultivate hardier crops

this winter

https://twitter.com/starchitalics

GIRACT

Starches and Derivatives Impact of the economic downturn Global Production and Supply 2009/10 – 2015

INTRODUCTION The starch industry is one of the world’s largest transformers of agricultural raw material, producing 73 million tons (expressed as primary starch with 12% moisture). For 30 years the starch industry has posted a remarkable average 4% annual growth and shown great flexibility to adapt to changes and opportunities, from raw material sources and changing trade regulations to new production technologies and end-use sector dynamics.

Since 2007, this dynamic has changed abruptly for several reasons:

High demand for agricultural raw materials by the fast growing Asian economies coincided with new competition from the bio-energy boom, especially in USA, leading to a record high in raw material cost

High ingredient costs forced the food industry to undertake a strong cost-cutting drive, and even though starch and their derivatives were earlier seen as ‘low-cost’ ingredients, they have now become a target for replacement in several end-uses

Starch production in Asia continued to expand, fuelled by strong local consumption especially in China, while European players were facing more blows from the ongoing CAP reform in the sugar and potato starch sectors

The economic recession affected starch demand as never before and in almost every end-use sector; e.g. the European paper industry saw a decline by 40% and with enough new mills in low wage countries, this demand in Europe may never be recovered.

Thus, the traditional patterns in starch production and demand have changed dramatically and so did the competitive landscape. The dominant position of Western players and markets is being eroded, both in terms of product portfolios and players and China has emerged as the largest country for supply and demand of starch. Cost-effectiveness and clean labelling have been driving changes in demand.

As these new patterns are emerging, it is the right time for every player and end-user in this field to take stock of new opportunities and threats before making any strategic decisions. This report provides the necessary comprehensive picture of actual global starch production and trade, by product and area, and explores which key factors are likely to influence the future to 2015.

Giract, the ingredients and technologies specialist and leader in market analysis of starches and their derivatives, published landmark studies in ’95, ’00, ’04 and ‘07 which pulled together starch supply by type of raw material and player across the world. These studies have been a reference for all players in the industry and for key end-users. The present update, published in autumn 2010, takes into account the various changes that have occurred across the world in the last few years, and thus acts as an important tool in your strategic planning.

OBJECTIVES • To identify starch and derivative production

- by key country/region - by type of raw material - by type of starch and starch derivative - by key producer • To evaluate trade patterns of different types of starches and derivatives • To estimate availability of starches and derivatives by key country/ region and of starch by type of raw material • To forecast global trends in starches and derivatives to the year 2015

PRODUCTS Primary starch from different raw materials, including maize, wheat, potato and tapioca. Finished products as starches (native and modified) and starch derivatives (glucose syrup, high fructose syrup, dextrose, other hydrolysates and polyols)

MARKETS Global

TIMESCALE 2009/10 and 2015

REPORT Published September 2010

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Starch Italics Starch Industry Overview

Tanzanian cassava growers boosted

About 26 000 Tanzanian cassava small scale

growers are set to benefit from Phase II of the

four-year cassava project which aims to develop

the income generating potential and thereby to

boost their incomes. The Tanzania Food and

Nutrition Centre (TFNC) said this will be

achieved through a broader application of

market-oriented and profitable cassava production

methods. The dissemination of appropriate and

more efficient higher scale processing techniques

for high quality cassava flour (HQCF) production

and vigorous market expansion approaches are

among the ways set to be used, the TFNC said.

Cassava is regarded as versatile raw material for

which diverse markets have been identified. The

project will open up and diversify use of cassava

at household level because various products can

be prepared from it and will find its extensive use

in various industries such as foods,

pharmaceuticals, bakeries, brewing and the textile

industries when converted to starch. As we all

know, said Dr Ndossi, cassava is an important

food security crop in Tanzania and its

contribution to nutrition can not be

underestimated as it feeds a large part of Tanzania

as it is rich in carbohydrates.

The government has for a long time promoted

cultivation of cassava to meet the local demand

for domestic consumption and organize markets

for excess production. Such efforts have resulted

in improved cassava processing methods while

linking the farmers or processors to identified

markets. The TFNC has supported the

Government efforts by carrying out research to

improve post harvest losses in cassava handling,

storage, processing, and marketing.

Dr Nicholas Mlingi, the Coordinator of Phase I

said groups of cassava growers were initially

trained on improved production.

(Continued in next column)

Tanzanian cassava growers boosted (Contd)

The estimated demand for high quality cassava

flour for the whole country is about 1kt per year

while actual production does not meet even three

quarters of the total demand. The cassava

improvement project is funded by the Common

Fund for Commodities (CFC) of Amsterdam and

the Netherlands Government. Similar projects are

also being implemented under the International

Institute for Tropical Agriculture (IITA) in

Zambia and Madagascar. IITA) is Africa's leading

research partner in finding solutions for hunger,

malnutrition and poverty. It works to enhance

crop quality and productivity, reduce producer

and consumer risks, and generate wealth from

agriculture. (busiweek.com 13 December 2010)

R&D cooperation on genetically optimized potatoes

The potato starch manufacturer AVEBE and the

plant biotechnology company BASF Plant

Science announced today a research and

development alliance in plant biotechnology. The

companies are combining their competencies in

biotechnology discovery and genetically modified

potato breeding with the aim of bringing farmers

modern and fungal resistant starch potato

varieties. They will start developing a late blight

resistant amylopectin starch potato.

"We are proud to partner with the world´s leading

potato starch company. This cooperation ensures

European potato farmers the access to best traits,"

said Marc Ehrhardt, Senior Vice President, BASF

Plant Science. "The cooperation underlines our

strategy and our aim to increase efficiency in

farming by bringing BASF‘s competence in plant

biotechnology to farmers around the world in cooperation with the best partners."

(Continued on next page)

Crops and grains



R&D cooperation on genetically optimized potatoes (Contd)

Both companies will bring in their know-how in

the field of developing genetically modified

amylopectin potato varieties. The companies

complement each other with BASF Plant Science

providing the regulatory approval experience and

AVEBE contributing its breeding and starch

application development expertise.

After having switched off the gene for the

production of amylose, the amylopectin starch

potato produces pure amylopectin starch and thus

helps to save resources, energy and costs. In

addition, the resistance against major potato

diseases such as late blight caused by

Phytophthora infestans will lead to a better

control of fungal diseases and thereby reduce the

production costs of amylopectin starch further.

(farminguk.com 14 December 2010)

Cargill beefs up in Australia with AWB grain deal

Cargill has vaulted up the league of crop handlers

in Australia by purchasing AWB's commodity

management business, in a deal termed a

"significant milestone" for the industry. The US

agribusiness giant is to pay cash for the business,

once Australia's monopoly wheat exporter, from

Agrium, the acquisitive Canadian fertilizer and

farm retail group in the process of digesting

AWB.


Cargill beefs up in Australia with AWB grain deal (Contd)

The value of the deal will be decided when it is

completed. However, as of September 30, the

operations being disposed of would have been

worth about Aus$870m (USD 860m), including

some Aus$240m in debt that Cargill will assume.

Mike Wilson, the Agrium Chief Executive, said

that Cargill's purchase of the AWB business "will

be a significant milestone in the evolution of

Australia's grain industry".

Cargill has been a relatively small player in the

Australian grain handling sector, and this spread

over sectors including cattle feedlots, oilseed

processing and flour milling. The deal also comes

amid something a flurry of investment by Cargill,

whose profits have been boosted by the rising and

volatile crop markets.

The company also on Wednesday unveiled the

purchase of a majority share in Indonesian

sorbitol producer Sorini Agro Asia Corporindo for

INR 2.72 bio (USD 300m), and last week

announced the capacity upgrade of its Gilman

grain facility in Illinois, which will be able to

receive 60 000 bushels of grain an hour, 25 000

bushels an hour more than at present.

Cargill is the latest of a series of grain giants to

target Australia since the deregulation of its grain

export operations, following a breach by AWB of

curbs on shipments to Iraq during the regime of

Saddam Hussein. Canada's Viterra bought

ABB Grain, initially a barley business, last year,

while Japan's Sumitomo Corporation has bought a

stake in Emerald. For Agrium, however, the prime

objective of its USD 1.1 bio AWB purchase was

to snap up the group's retail business, Landmark,

to extend its footprint of farm supply operations

from North America. The Cargill deal "is the best

course of action for all stakeholders involved",

Mr Wilson said. Agrium will also retain

commodity business worth some Aus$55m not

being bought by Cargill. (agrimoney.com 15

December 2010)

Crops and grains



China seeks to add more value to domestic products through innovation Li Wei, Vice President of the sugar producer,

Xiwang Group in eastern China's Shandong

Province, told Xinhua that the market value of

their product would rise 20% by turning corn into

starch, and from starch to crystalline dextrose the

value would further rise 80 to 100%."By turning

corn into crystalline fructose, we can raise the

added value by 20 times," Li said with

excitement, holding up the fructose product which

was put on the market recently.

Through independent research and development

(R&D), Xiwang Group mastered several key

technologies which were previously controlled

only by a few developed countries. Since 2007,

the corn used each year by Xiwang Group has

remained at around 1.8 mio t, but the total output

has increased annually by 30%.

In the plan for the 11th Five-Year Plan, the

government took enhancing the capability of

independent innovation as a crucial step in

China's industrial restructuring and the

transformation of the growth pattern, which

greatly promoted companies all over the country

to invest more in technological innovation and

adding more value to their products.

To gain a foothold at the high end of the global

industry chain, Chinese companies must improve

their technology and raise the products' added

value, according to Zhang. so it turned to the

growth pattern driven by technological

advancement and the improvement of efficiency.

Mao Weiming, Director of Jiangsu Development

and Reform Commission, said the province

increased the investment in R&D in the period of

the 11th Five-Year Plan. (xinhuanet.com 19

December 2010)

Solution for materials and industrial production

By 2025, the country‘s biofuel output will reach

1.8 mio t, meeting 5% of its petroleum demands.

However, developing materials for biofuel

production poses many problems and needs to be

resolved. Vietnam has the potential to develop

biofuel from producing cassava, corn and sugar

which can replace oil and gas. In addition, the

country has a lot of land that can grow cassava

and corn. It is estimated that Vietnam can produce

around 5 mio litres of bio-alcohol every year

Le Minh Duc, head of the Environment and

Sustainable Development Department of the

Institute of Industry, Policy and Strategy (IPSI),

says that Vietnam needs around 1.5 mio t of dried

cassava (around 4 mio t of fresh cassava) by 2020

and about 2.5-3 mio t of dried cassava (equal to

8 mio t of fresh cassava) by 2025. Accordingly,

the country will need around 200 000 ha of

cassava with capacity of 20 t per hectare in 2020

and around 300 000 ha with a capacity of 30 t per

hectare in 2025.

Luu Quang Thai, President of Board of Directors

of Dong Xanh Joint Stock Company in Quang

Nam says the country currently produces

9-10 mio t of fresh cassava. The remainder will be

dried and be around 2.4 mio t of cassava, 700 to

800kt will be used as animal food and the

remainder will be used to produce ethanol or

exported. When cassava is processed into starch

or ethanol, its value doubles. If domestic materials

can meet the country‘s demand for ethanol by

2015 according to a project to develop biofuel by

2015 and vision to 2025, Thai says. Professor

Tran Ngoc Ngoan, Deputy Director of the Thai

Nguyen Agriculture and Forestry University, says

that cassava can grow on uncultivated and fallow

land.


Crops and grains



Solution for materials and industrial production (Contd)

When cassava is processed into starch or ethanol,

its value doubles. If domestic materials can meet

the country‘s demand for ethanol by 2015

according to a project to develop biofuel by 2015

and vision to 2025, Thai says. Professor Tran

Ngoc Ngoan, Deputy Director of the Thai Nguyen

Agriculture and Forestry University, says that

cassava can grow on uncultivated and fallow land.

.

Cassava can help poor people who are not able to

invest in production. If there is a proper policy,

cassava can develop sustainably. Success in

Tay Ninh province is a typical example.

Do Thanh Hoa, director of the Tay Ninh

provincial Department of Industry and Trade, says

Tay Ninh is the country‘s largest cassava area. It

has 46 000ha of cassava with output of 28 t per

hectare. Cassava is now replacing rubber and

sugar. The price of 1kg of cassava is

VND 2 400 to 2 500. (vovnews.vn 18 December

2010)

Hooghly potato on Israel platter Israel is actually getting a taste of potatoes grown

in Hooghly. Recently, 40 t of potato flakes,

processed and packaged at a plant near

Dhaniakhali, was shipped to Israel on a trial basis.

The food processing unit that exported the flakes

has also received orders from Russia and Dubai.

"Should everything move according to plan, our

company would procure nearly a third of the

potatoes produced in Hooghly. This procurement

will be directly from the farmers and there will be

no involvement of middlemen. The farmers will

be assured a fair price for their produce. If the

need arises, we shall also supply better quality

seeds to them," said Apurba Saha, chairman of the

Pailan Group.

This could be the first time potato products from

West Bengal have been exported. The processing

plant at Dhaniakhali was originally set up as a

100% export-oriented unit. Recently, the Indian

government granted it permission to market 50%

of its product in the country. In October, 2010, the

company participated in the World Food

Processing Fair organised in France. It was there

that it was contacted by Poliva, which imports

food items to Israel.


Crops and grains

http://timesofindia.indiatimes.com/topic/Israel

http://timesofindia.indiatimes.com/topic/Russia

http://timesofindia.indiatimes.com/topic/Dubai



Hooghly potato on Israel platter

(Contd) According to Saha, it takes nearly 7 t of Hooghly

potatoes to produce 1 t of flakes. But nothing will

go to waste. The Pailan Group has signed an MoU

with Taiwan to use the residual starch to

manufacture cattle feed cakes. Taiwan will set up

the machinery and buy back the starch cakes

which have a huge demand in countries like

Australia. (indiatimes.com 19 December 2010)

Total Supply Of U.S. Distillers’ Grains Accelerates Over The Past 4 Years The estimated supply of U.S. distillers‘ grains is

expected to total 33.3 mio t for 2009-10, more

than four times that in 2003-04. Most distillers‘

grains come from dry-mill fuel ethanol production

and a lesser amount comes from dry-mill

beverage distilleries. Imports are a minor segment

of the market. Most distillers‘ grains are derived

from corn with smaller amounts coming from

sorghum and wheat. Changes in dry-mill ethanol

technology may further alter the composition of

distillers‘ grains. Growth in distillers‘ grain

production will continue to follow corn use for

ethanol production, but both are expected to slow

compared with the rapid expansion over the past

several years

Production of distillers‘ grains, a feed co-product

from corn dry-mill ethanol production, surpassed

feed co-products from the wet-milling process in

marketing year 2006-07. Between 1992-93 and

2001-02, exports accounted for most of corn

gluten feed‘s disappearance, but export‘s recent

share of corn gluten feed has declined. This

decline in corn gluten feed was due to the

European Union‘s Common Agricultural Policy


Total Supply Of U.S. Distillers’ Grains Accelerates Over The Past 4 Years (Contd) For example, cereal prices declined when CAP

reform stimulated consumption of domestic feed.

EU reforms also reduced the EU cow herd, which

reduced the need for feed. Furthermore, U.S. corn

gluten feed and its derivation from genetically

modified corn may have precluded its use in EU

feed rations. This biotechnology concern may be

present regardless of whether U.S. corn wet mills

used only EU-approved corn varieties, due to fear

of contamination of unapproved varieties.

As the production of corn-based ethanol

increases, DDGS output increases because of the

fixed proportions of ethanol and co-product yield

from corn bushels processed. For example, when

dry-mill fuel ethanol production began to

accelerate between 2002-03 and 2009-10 and

dry-mill corn use rose from an estimated 0.5 to

4.1 bio production of DDGS rose from an

estimated 4.3 to 32.0 mio t

composition of Distillers‘ Grains is beginning to

change growth of U.S. Distillers‘ Grains Supply

expected to moderate. (cattlenetwork.com 16

December 2010)

New staple food needed for food security goals A firmly established culture of rice consumption

in Indonesia may put food security at stake,

potentially hampering the country‘s efforts to

achieve its rice self-sufficiency target by 2014,

scientists say. Office of the State Minister for

Research and Technology deputy minister

Benyamin Lakitan said Tuesday that

diversification into other staple foods, such as

corn, cassava and sorghum, remained stagnant

even though rice fields were deteriorating because

of indiscriminate land conversion and changing

weather.


Crops and grains

http://timesofindia.indiatimes.com/topic/Taiwan



New staple food needed for food security goals (Contd)

In eastern Indonesia, people have traditionally

consumed corn, cassava or sago as their daily

staple food. Papuans, for example, used to eat

primarily sago, as well as sweet potatoes and

cassava. However, they have become accustomed

to eating rice in the last few decades. Suwarno

said rice demand in Indonesia had increased

sharply due to population increases.

According to the Agriculture Ministry,

121 000 hectares out of the 21 mio hectares of

agricultural land in Indonesia had been converted

into non-agricultural land between 2003 and

2008. About 86 000 hectares of the

121 000 hectares were in Java, even though most

of the land in Java is fertile. Between 2008 and

2009, 27 000 hectares of agricultural land had

been converted into non-agricultural land,

seriously threatening farmers. Agricultural land

ownership in Java is now only 0.2 to 0.3 hectares

per farmer, and one to 1.2 hectares per farmer

outside of Java. Land conversion is likely to

continue because the proposed regional regulation

on land submitted by several local administrations

will seize about 3.1 mio hectares of agricultural

land, 1.7 mio hectares in Java and 2 mio hectares

outside of Java.

Apart from land conversion, Suwarno said bad

weather would also impede Indonesia‘s efforts to

meet its rice self-sufficiency target. ―Sorghum is

the most suitable alternative staple food,‖ said

Soeranto Hoeman, a radiation and isotope

technology scientist at the National Nuclear

Energy Agency (BATAN). Sorghum is not only

more drought and heat resistant, but it also has

more resistance to high salinity land. While

lamenting that sorghum was less popular in

Indonesia than other countries like India, Japan

and China. Sorghum, a kind of grain, is a

multifunction crop widely used not only as a

staple food, but also as food for cattle and as a

biofuel. (Continued in next column)

New staple food needed for food security goals (Contd)

Sorghum is number five in the ranking of most

important cereal foods, after wheat, rice, corn and

barley. It also contains more nutrition than other

staples, with high anti-cholesterol and anti-

diabetic elements as well. Soeranto said diversification to more drought resistant staple

crops was one of the best ways to adapt to the

increasingly unpredictable climate. (thejakartapost.com 27 December 2010)

Mitr Phol Sugar to begin PLA production next year

Asia's largest sugar producer, Mitr Phol Sugar

Corp, plans to start commercial-scale production

next year of polylactic acid (PLA), the raw

material for biodegradable plastic. The production

is part of the company's strategic move to expand

into high-value products to maximise the value of

its core business: sugar.

Mitr phol initiated a pilot plant last year and is

now negotiating with strategic partners to

determine the size of a PLA production facility.

PLA or polylactide is a biodegradable,

thermoplastic, aliphatic polyester derived from

renewable resources, such as corn starch (in the

United States), tapioca products (roots, chips or

starch mostly in Asia) or sugarcane (the rest of the

world). Although PLA has been known for more

than a century, it has only been of commercial

interest in recent years.


Crops and grains



Mitr Phol Sugar to begin PLA production next year (Contd) Mitr Phol Group has been active in Thailand's

cane and sugar industry for 53 years and its five

core business categories are sugar, particle boards,

bioenergy, ethanol and warehouses/logistics. It

has five sugar mills in Thailand in Chaiyaphum,

Suphan Buri, Khon Kaen, Kalasin and Sing Buri.

The company expects its total sugar output in this

crop year will rise by 25% to 2.6 mio t from 2 mio

the previous crop year. Of that total, 1.4 mio t will

come from Thai operations, up from 1 mio a year

earlier, while 1.2 mio t will come from China, up

from 1 mio. Some 60kt are expected from Laos, a

surge from 24kt last crop year.

The company reported total sales in the 2009-10

crop year rose by 20% to 58.8 bio baht due to

rising global sugar prices. Sugar made up 84% the

company's sales revenues, with 9% from energy

global sugar price may stand above 20 cents per

pound for many years due to rising demand in

Asia, while production is likely to further drop

due to drought in many countries," said

Mr Krisda.

The demand next year is about 3 mio t higher than

domestic production, and the country is on track

to import more sugar every year. China's sugar

demand is projected to be 14.5 mio t while its

domestic production is for 12 mio t or lower.

(bangkokpost.com 15 December 2010)

U.S. EPA Removes Artificial Sweetner Saccharin From Hazards List The U.S. Environmental Protection Agency

(EPA) said it has removed common artificial

sweetener saccharin, long believed to be a

potential cancer-causing substance, from its list

of hazardous substances.


U.S. EPA Removes Artificial Sweetener Saccharin From Hazards List (Contd) Saccharin, an artificial sweetener found in diet

drinks and chewing gum, is no longer considered

a potential hazard to human health, it said.

Saccharin, which is 300 times sweeter than

sucrose or sugar, can also be found in cosmetics

and pharmaceuticals.

Saccharin was labeled a potentially cancer-causing substance in the 1980s.

Human epidemiology studies - studies of patterns,

causes, and control of diseases in groups of

people - have shown no consistent evidence that saccharin is associated with bladder cancer

incidence, the National Cancer Institute.

In the late 1990s, the National Toxicology

Program and the International Agency for

Research on Cancer re-evaluated the available

scientific information on saccharin and its salts

and concluded that it is not a potential human

carcinogen - a substance known to cause cancer.

Because the scientific basis for remaining on

EPA‘s lists no longer applied, the agency said it

proposed the removal of saccharin and its salts

from the lists on April 22, 2010 and did not

receive any comments opposing the proposal.

(ibtimes.com 15 December 2010)

India: Sugar declines on production estimates

Sugar spot prices and futures declined 1.36% and

0.72% respectively on Tuesday with sugarcane

crushing gathering pace in major producing

regions. According to the agri ministry, Sugar

exports have not been put on hold and mills are

asked to fulfill the necessary conditions by

January 31. 5 lakh t of Sugar exports are allowed

under Open General License (OGL).



http://www.ibtimes.com/topics/detail/702/cancer/

http://www.ibtimes.com/topics/detail/702/cancer/



India: Sugar declines on production estimates (Contd) International markets reopened on Tuesday,

however, settled slightly higher as compared to

the Friday´s closing. Uncertainty with regards to

Indian exports due to inflationary pressure is

prompting the international markets to adopt wait

and watch policy. Indian Sugar production is

estimated at 24.5-25 mio t in the current year

2010-11, up by 30% compared to last year. As on

13th January 2011, 158 sugar factories in

Maharashtra crushed 295 lakh t sugarcane and

produced 30 lakh t sugar with 10.31% recovery.

Sugar output in Karnataka is up by 11% at

9.77 lakh t in the first three months of 2010-11

season that began on 1st October, 2010

(State Farm Department).

Trade: India is normally a net sugar exporter, but

had to import in the previous two seasons due to

fall in output. However, the government during

the last month had permitted exports under Open

General License (OGL) to the extent of 5 lakh t

and thus mills are asked to fulfill the necessary

obligations by January 31. Indian government has

imposed 60% duty on sugar imports. Total raw

sugar imports in 2010-11 are expected to be lower

at around 1.2 mio t compared to 4.5 mio t in

2009-10.

Outlook: Sugar prices are expected to remain

decline in the intraday due to sufficient supplies in

the domestic markets. Currently, Sugar prices at

Kolhapur are trading around INR 2800 per qtl

levels. We expect Spot prices at Kolhapur to trade

in the range of INR 2750 and 3000 per qtl levels

for the rest of the month. Ongoing crushing may

put some pressure on the prices. In the medium to

long term domestic Sugar price movement would

be dependent on the permissible sugar exports

from the country. Domestic sugar could gain if

exports are allowed given the high sugar prices

prevailing in the global markets. (udop.com 19

January 2011)

Stevia, the alternative sweetener for health

As the number of people afflicted with diabetes is

ever increasing, the search for healthy alternative

sweeteners is on sold to the company that needs

the stevia. An alternative to the table sugar is

needed to control the glucose in the daily diet of

diabetics in Malaysia.

The Second National Health and Morbidity

Survey estimated that there are 3.4 mio

Malaysians suffering from diabetes in 2010.

Stevia, a sub tropical herb from South America is

among the latest alternative sweeteners available.

Stevia is also used as the alternative sweetener in

the production of food and beverages and is

increasingly gaining international recognition.

In Malaysia, its use is gaining wide acceptance

especially following the recent rise in sugar

prices. A health drink manufacturer CT Lang Sdn

Bhd now uses stevia as the alternative sweetener

in its products. Its manager Abdullah Mohamad

noted that stevia has big potential as it could be

grown easily and the leaves harvested within three

months. In Japan 50 to 60% of the sweeteners

used are from stevia and it is used in many of its

food products, he said. Abdullah said the extract

from the stevia leaves is between 300 and 400

times sweeter compared with sugarcane extract.




Starch Italics Starch Industry Overview Company News

Stevia, the alternative sweetener for health (Contd)

So far, farmers in Bagan Serai in Perak and Silam

in Sabah have agreed to this idea and are expected

to start cultivation shortly. The stevia cultivation

starts with the seed maturing process that takes a

month. Within 3 months of planting the leaves are

harvested and the sweet juice is extracted from the

leaves and processed into sweetener. Abdullah

pointed out the planting process is straight

forward and does not cost much and the

impressive revenue cycle guarantees stevia‘s

potential within and outside the nation. By

introducing small planting modules to the

smallholders, this will help to establish a

commercial stevia planting network.

For a start RM 40 000 is needed for planting

stevia on an area about 0.4 to 0.8 hectares, said

Abdullah.With stevia, Malaysians have an

alternative to table sugar and good economic

potential as stevia trade is valued at RM5 bio

annually. Abdullah noted that many Malaysians

were still ignorant of stevia‘s potential and its

benefits. However, it is hoped that the company‘s

undertaking will help expose the plant‘s potential

and emerge as one of the economic drivers for the

nation‘s agricultural sector, he said. — Bernama

(theborneopost.com 27 December 2010)

AVEBE and BASF Plant Science Start R&D Cooperation on GM Starch Potatoes

The potato starch manufacturer AVEBE and the

plant biotechnology company BASF Plant

Science have announced a research and

development alliance in plant biotechnology. The

companies are combining their competencies in

biotechnology discovery and genetically modified

potato breeding with the aim of bringing farmers

modern and fungal resistant starch potato

varieties. They will start developing a late blight

resistant amylopectin starch potato.


AVEBE and BASF Plant Science Start R&D Cooperation on GM Starch Potatoes (Contd)

Late blight is a serious problem in potato farming

in Europe. The companies expect the first

varieties to be available on the market by 2019

onwards. Financial details of the collaboration

were not disclosed.

"We are proud to partner with the world´s leading

potato starch company. This cooperation ensures

European potato farmers the access to best traits,‖

said Marc Ehrhardt, Senior Vice President, BASF

Plant Science.

Both companies will bring in their know-how in

the field of developing genetically modified

amylopectin potato varieties. The companies

complement each other with BASF Plant Science

providing the regulatory approval experience and

AVEBE contributing its breeding and starch

application development expertise.

Conventional potatoes produce a mixture of

amylopectin and amylose starch. For many

technical applications, such as in the paper, textile

and adhesives industries, only amylopectin starch

is needed. Separating the two starch components

is uneconomical and environmental unfriendly.

After having switched off the gene for the

production of amylose, the amylopectin starch

potato produces pure amylopectin starch and thus

helps to save resources, energy and costs.

(foodingredientsfirst.com 5 December 2010)

GIRACT Sweeteners & Starch Price Monitoring

Giract provides quarterly prices of white sugar,

key starches and their principal derivatives used

in the food industry across major regions. The

report comprises tables and commentary on

price movements as well as charts which track

annual running price series. Details on the

following page.


GIRACT

Sweeteners & Starch Price Monitoring Quarterly Price Review of Starches, their derivatives and Sugar in Key World Markets

Now in its 10th successful year !

Giract provides quarterly prices of white sugar, key starches and their principal derivatives used in the food industry across major countries. This report comprises tables and commentary on price movements. In addition, charts track annual running price series.

Why should you subscribe to this Price Monitoring?

Because you are closely involved with these products and often find it difficult - or impossible - to obtain ex-manufacturer price estimates on a comparative scale across countries

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What does this Price Monitoring contain?

Compact tables which provide ex-factory prices in local currency and USD for the key products and countries as shown below (relevant raw materials for each country), along with charts tracking price trends.

Glucose syrup HFS Native Starch Cationic Modified White

DE 40-42 DE 63-65 DE <20 42% 55% Maize Wheat Potato Tapioca Starch*

Starch

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Sugar

LatAm China EU India Russia Thailand USA

* LatAm, China, India, Russia, Thailand + EU, USA

How do you subscribe to this Price Monitoring ?

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07/10-1



Cargill goes on USD 1 bio-plus shopping spree Cargill Inc. has gone on a USD 1 bio-plus holiday

shopping spree, with the announcement on

Wednesday that it is acquiring a large Australian

grain handling and trading operation as well as a

major Indonesian ingredient producer. The

Minnetonka-based agribusiness giant is paying

USD 800 mio to the Canadian firm Agrium Inc.

for the commodities business that Agrium

recently took over when it bought Australia's

AWB Ltd. In a separate deal, Cargill is spending

USD 300 mio for an 85% stake in PT Sorini Agro

Asia Corporindo Tbk, one of the world's leading

producers of sorbitol, an ingredient in food,

cosmetics and pharmaceuticals.

Agrium, a fertilizer producer and retailer of

agricultural products based in Calgary, Alberta,

last month bought AWB for about USD 1.2 bio.

But Agrium isn't in the grain trade, and Cargill, of

course, is one of the planet's biggest grain

companies. AWB, which was founded in the late

1930s as the government-run Australian Wheat

Board, is Australia's leading agribusiness,

according to its website. With the deal, Cargill

will pick up 22 grain storage sites across Australia

and a 50% stake in a grain export terminal

in Melbourne.

In the Sorini deal, Cargill will nab a controlling

stake in a company that has seven ingredient factories in Indonesia. Sorini's chief product,

sorbitol, is derived from starch sources, primarily

corn and the root of the cassava plant; Indonesia

is a major exporter of the latter. Sorini will

become a subsidiary of Cargill, which already has

a foothold in the starches and sweeteners trades.

Cargill is the world's largest food additive and

ingredient producer, according to a July report by

Leatherhead Food Research. The company

already has extensive operations and over 8 000

employees in Indonesia. (startribune.com 15 Dec

2010)

Cargill to pay Rp 2.2t for AKR’s Sorini stake

US-based Cargill says it will pay chemical

company PT AKR Corporindo Rp 2.2 trillion

(USD 244 mio) for its 69% stake in publicly listed

PT Sorini Agro Asia, the world‘s leading

producer and supplier of sorbitol.

The company said in a statement that it had

agreed to pay Rp 3 500 a share for AKR‘s stake in

Sorini, a 6.9 premium over Sorini‘s closing price

of Rp 3 375 on Monday.

Cargill — which produces and markets

agricultural, financial and industrial products and

services — said it would also buy 16.19% of

Sorini‘s ordinary shares from UOB Kay Hian Pte

Ltd. of Singapore at the same share price in a

separate transaction that would be completed

simultaneously with the AKR purchase.

After the purchases are complete Cargill will hold

85.01% of Sorini‘s outstanding shares valued at

more than Rp 2.72 trillion.

This acquisition will be an anchor point for future

growth of our food ingredients business in Asia,

particularly in Indonesia and southeast Asia,‖

Cargill Asia-Pacific president and regional

director Bram Klaeijsen said in a statement.

Indonesian-based Sorini currently operates 7

factories in East Java and Lampung, producing

several starch and starch derivative products, such

as liquid and powdered sorbitol, maltitol, dextrose

monohydrate, maltose, and maltodextrin, which

are mainly used in consumer goods such as

toothpaste, ice cream and soft drinks.

Following completion of the transaction with

AKR, Cargill will make a mandatory tender offer

to acquire the remaining shares of Sorini as

required by Indonesian law.

(thejakartapost.com 16 Dec 2010)

Company News



Novasep, Danisco develop new co-product

Novasep Process and Danisco announced the

scale-up of an innovative process for the

production of natural betaine. And a new plant

will be the first to exploit a new extraction

process using vinasse, a byproduct of sugar-beet-

derived bioethanol. Its use will enable Danisco to

substantially increase the availability of natural

betaine, which is globally used as a technical

animal feed ingredient and currently in short

supply.

Danisco pioneered the research and application of

natural betaine in animal nutrition in the early

1990s and has clearly demonstrated superior value

compared to synthetic alternatives. Unlike

synthetic betaine, natural betaine acts as an

osmolyte, improving intestinal health and

reducing the negative impact of heat-stress on

animal production. Currently, market demand for

natural betaine outweighs production. The betaine

from the new plant will be sold by Danisco as

Betafin. As well as increasing the availability of

betaine, the new process will allow the betaine-

extracted bioethanol vinasses (residues) to be

further recycled and sold as crop fertilizer. Until

now, it was possible to extract natural betaine

only from sugar-beet molasses, a side stream of

sugar production. The new process will be

increasingly valuable as the increase of the

bioethanol production using beets will generate

more and more vinasses.

Novasep Process is responsible for the

engineering of the new plant and will provide the

complete process line which combines Danisco‘s

proprietary chromatographic technology, known

as NS2P, with membrane and evaporation steps.

This project is the latest development of the

alliance between Novasep and Danisco in the

field of betaine extraction and purification, which

has already given birth to several betaine

production plants. (Continued in next column)

Novasep, Danisco develop new co-product (Contd)

Danisco and Novasep will provide technological

support for the betaine production plant with De

Smet Engineering and Contractors, being in

charge of building construction, erection services

and auxiliaries supply of the new development.

Tereos, a world player in sugar, starch and

bioethanol production, will supply the vinasses

and operate the plant at its facility in Origny,

France.

Wrigley to launch three new variants in 2011

Wrigley is bidding to lure in new consumers with

a trio of revamped gum products next year, with

claimed health benefits. The company is

launching three new variants: Wrigley‘s Extra Ice

Peppermint, Extra Ice Spearmint and Extra Ice

White, as it looks to increase interest in a gum

market that has struggled in recent years.

Extra Ice Peppermint and Spearmint variants,

which will hit shelves in February, are to relaunch

with new ingredients, including the sugar-free

sweetener Xylitol, which is claimed to prevent the

formation of plaque. The revamped range will be

sold in single packs priced at 46p.

Extra Ice Peppermint will be supported by

sampling, point-of-sale activity and PR activity.

Wrigley hopes that the launch will help lift sales

of Wrigley‘s Extra core brand.


Company News



Wrigley to launch three new variants in 2011 (Contd) Concurrently, Wrigley is to relaunch Wrigley‘s

Extra Ice – which will also include Xylitol – with

new white packaging, with the aim of achieving

better standout on the shelves. Wrigley said the

three products had been accredited by the British

Dental Health Foundation.

The chewing gum market has endured a difficult

few years, but Wrigley ramped up its activity this

year with a GBP 10m advertising support for

Extra. In the UK, 59% of all gum sales come

through the convenience channel. And, according

to AC Nielsen data, the gum markets were worth

GBP 136.7m in the year ending August 21.

(marketingmagazine.co.uk 10 December 2010)

ADM To Build Two New Grain Elevators In Nebraska

Archer Daniels Midland Co. (ADM) has

announced plans to construct two new country

grain elevators in Nebraska, a move expected to

expand the company's domestic grain storage

capacity by nearly 2%. A statement this past

Thursday from the Decatur, Ill., company said the

facilities will be near Fullerton and Newman

Grove in Nebraska, and will primarily buy cash

corn, soybeans and wheat from local growers.

Each will have capacity for 1.5 mio bushels of

upright permanent storage, plus another 2 mio

bushels of temporary storage. Both will feature

two high-speed receiving pits, plus inbound and

outbound truck scales. Crops received at the new

elevators will help supply ADM's Nebraska grain-

processing plants, including a corn-milling

complex in Columbus and a soybean-crushing

facility in Fremont, as well as a flour mill,

soybean-crushing facility and vegetable oil

refinery in Lincoln. ADM currently operates 191

U.S. grain elevators with an aggregate storage

capacity of more than 420 mio bushels.

(foxbusiness.com 13 Dec 2010)

US based Corn Products International to invest between USD 75 mio and USD 100 mio in its Brazil business

Corn Products International announced Thursday

it is planning investments in its Brazilian business

to bolster its operations in the country, Latin

America‘s biggest economy. Corn Products

International is a leading provider of ingredient

solutions to diversified industries. Its

announcement reiterated the firm‘s plans to invest

between USD 75 mio and USD 100 mio over the

next several years to support the growth of its

Brazilian business. The capital expenditures

would be used to expand capacity and develop

new ingredient solutions in Brazil, particularly to

support the rapid growth of the food, beverage

and industrial sectors.

Ilene Gordon, Chairman, President and Chief

Executive Officer of Corn Products International

said the intended investment reaffirms Corn

Products International‘s commitment to growing

with and supporting its customers over the long

term. Brazil has been an outstanding market for

Corn Products historically, and the firm believes

that it will continue to provide superior growth

and returns in the future, noted Gordon. For the

nine months ended September 30, 2010,

USD 874 mio, or 29.5%, of Corn Products‘ sales

were generated in South America, where Brazil is

the largest contributor

Corn Products continues to invest in growth

opportunities on a global basis, highlighted by the

acquisition of National Starch, which added

USD 1.3 bio of largely value-added sales

primarily to the food industry. The acquisition

also further strengthened the company‘s Asian

business and provided a European platform for

additional growth. (investinbrazil.biz 10 Dec

2010)

Company News

http://quote.foxbusiness.com/symbol/ADM/snapshot

http://www.foxbusiness.com/markets/2010/12/13/adm-build-new-grain-elevators-nebraska/

http://www.foxbusiness.com/markets/2010/12/13/adm-build-new-grain-elevators-nebraska/



Sweet and Biodegradable: Sugar and Cornstarch Make Environmentally Safer Plastics

Environmentalists around the world agree --

plastic bags are choking our landfills and

polluting our seas. Now a Tel Aviv University

researcher is developing new laboratory methods

using corn starch and sugar to help sustainable

plastics -- those that biodegrade and are even

tougher than those made from petrochemicals --

compete in the industry. Prof. Kol is improving

the process of making these "green" plastics

stronger and more heat-resistant, allowing them to

be used in a variety of ways, from the automotive

industry to Starbucks coffee cups.

The type of plastic the partners are working on,

polylactic acid or PLA, is a kind of biodegradable

plastic made from renewable plant sources such

as corn, wheat or sugarcane. It's already used in

bottles, bags, and film, and like polyester can

even be woven into clothes.

The new catalysts enable the polymerization of

lactide, which is the building block of a corn-

based plastic. the corn-based molecules -- are

assembled -- and they may be toxic. But Prof.

Kol's catalysts can be used more safely and

efficiently, making "green" plastics more

commercially feasible. "The structure of these

corn-based plastics depends on several

parameters. The most important is the character of

the building blocks, like Lego blocks, that hold

the material together," says Prof. Kol. He aims to

make sustainable corn-based plastics complement

or replace the petroleum-based plastics which can

take a millenium to degrade, leaving harmful

pollutants in the soil and in water. Corn-based

plastic wouldn't cause any adverse health effects

and would be expected to biodegrade in a compost bin in a matter of months.


Sweet and Biodegradable: Sugar and Cornstarch Make Environmentally Safer Plastics

(Contd)

For disposable items, a perfect plastic material

would be a polymer made from renewable

resources, that degrades to its original non-toxic

form. Plastics made from corn sugar are the most

desirable in the industry at the moment. The

preliminary results of Prof. Kol's efforts are in,

and the plastics that he and his team produce in

the lab look and feel like polystyrene, which

could be used for making drinking cups, for

example. Rigid and transparent, the drinking cups

currently only work for liquids under 122 degrees

Fahrenheit, but they represent a first big step into

greening plastics and the chemical industry.

(sciencedaily.com 14 December 2010)

Cheryl Perkins column: Future generations will see growth of bioplastics

Bioplastics are a type of plastics derived not from

petroleum, but from organic and renewable

sources like corn starch, sugar cane, vegetable oil,

cellulose or even evergreen shrubs. Either way,

they are created from renewable resources. Just

like auto companies are searching for alternative

sources of energy for transportation vehicles,

chemical companies are searching for alternatives

to the manufacture of plastic materials. Fossil

fuels won't be available forever, and currently

billions of pounds of plastics are being produced

and consumed annually, just in the flexible

packaging industry alone. As an emerging area of

development, bioplastics represent a small

fraction of that, but usage has been growing. For

example, DuPont has been producing a polymer

called Sorona for several years. It is a bioplastic

material that can be used in apparel and fabrics

due to its soft touch, durability, dye-ability and

stain. (Continued on next page)

Bio-plastics



ot All Bioplastics Are Greener (Contd)

Eco Geek suggests that producers of petroleum-

based plastics and bioplastics ―could work with

this study to identify the most damaging aspects

of their methods in order to reduce their

environmental impacts.‖

Perhaps researchers are currently developing a

bioplastic that is greener than the current crop.

The Japanese electronics manufacturer, NEC

Corporation, announced it developed bioplastic

from non-edible plant resources last August. The

main ingredients of the bioplastic are cellulose,

the main compound in plant stems, and cardanol,

an oil-like material from cashew nutshells and a

byproduct of cashew nut processing. In other

words, the bioplastic is made from agricultural

waste. NEC will continue to develop the

bioplastic with goal of using it in electronic

devices by the end of 2013.

Dr. Richard Gross, professor of chemical and

biological science at Polytechnic Institute of New

York University (NYU-Poly) created a way to

produce bioplastic from yeast and the fatty acids

of plant oils. Gross‘ production method does not

use fossil fuels to process the yeast, and the

bioplastic produced is resistant to moisture, unlike

starch-based bioplastics. The U.S. Defense

Advanced Research Projects Agency (DARPA)

had Gross‘ company SyntheZyme develop the

bioplastic from yeast. DARPA intends to use the

bioplastic as packaging material in its solid state,

and as biodiesel for military engines after it is

broken back down.

This process uses no fossil fuels, and every step is

biologically-friendly, from fatty acids in plant oils

through the end product, which is a versatile,

100% biodegradable plastic. (triplepundit.com 16

December 2010)

Israeli scientist finds sweet solution to plastic waste

An Israeli researcher said he has found a sweet

solution to a sour worldwide problem: mountains

of disposed plastic items that pack landfills and

wash out to sea, and take decades, if not centuries

to melt down.

Prof. Moshe Kol of the Tel Aviv University

(TAU) School of Chemistry, working in tandem

with colleagues at the University of Aachen in

Germany and the University of Bath in England,

is using corn starch and sugar to help create

"green" plastics for hundreds of common items

that is as strong as or stronger than oil-based

versions of the products.

"The structure of these corn-based plastics

depends on several parameters. The most

important is the character of the building blocks,

like Lego blocks, that hold the material together,"

says Prof. Kol, in a statement from TAU released

this week.

Early results of tests, in this case to create a

transparent disposable drinking cup, looks and

feels like the more familiar polystyrene, although

the cup can only hold liquids under 122 degrees

Fahrenheit. But Prof. Kol said he is improving the

process in order to increase the heat-resistance

and strength of the material. The polylactic acid

or PLA material that the team is working with is

made of biodegradable, renewable plant sources

such as corn, wheat or sugarcane, according to the

statement, and is already in use in thin film

products like bottles and bags.

Kol is still looking for ways to improve the

material as a replacement for steel and concrete in

many industrial areas. Such corn-based plastic

would have no toxicity and would be able to

biodegrade within several months instead of

millennia, according to the statement.

(xinhuanet.com 15 December 2010)

Cheryl Perkins column: Future generations will see growth of bioplastics (Contd)

Cargill's Ingeo bio-based plastics and resins are

developed from natural plant sugars and are being

used in a broad range of applications from fresh-

food containers to beverage packaging and

textiles. The Brazilian company Braskem is

producing sugarcane-based bioplastics that might

be an alternate, but renewable, source for

conventional petroleum-based HPDE plastic

resins. About half of the bioplastics produced

today are created from plant starches.

All plastics eventually degrade, but for petroleum-

derived plastics the process is usually so slow that

it may take hundreds of years. Starch-based

bioplastics decompose much faster, however, and

are considered biodegradable. One example

would be in medical applications where

degradable biopolymers dissolve in the body after

surgery and save the cost of additional intrusive

procedures. Another would be compostable weed

barriers and mulch for farming where the material

doesn't have to be removed from the field each

season, just tilled back into the soil and left to

decompose.

Bioplastics still have their challenges, including

limited production capability, high cost, poor

thermal properties, and slow adoption even in

light of the growing public interest in renewable

resources.

Adoption may also conflict with current recycling

programs, as mixing in large quantities of

biologically derived plastics with conventional

oil-based plastic products can yield unusable

materials. However, some research is showing it

may be possible to create bioplastics from

recycled conventional plastic

materials using bacteria.


Cheryl Perkins column: Future generations will see growth of bioplastics (Contd)

There is great potential for collaboration with

start-ups and universities to help overcome these

challenges and realize the commercial and

environmental potential of bioplastics as

replacements for the less sustainable oil-based

plastics. Companies that are being proactive in

driving innovation and development in these

disruptive areas are laying a foundation for future

business growth. Whether it's the 21st century or

beyond, bioplastics may inevitably become a part

of our everyday life. (postcrescent.com 17

December 2010)

Not All Bioplastics Are Greener

A study by University of Pittsburgh researchers

found that bioplastics are not necessarily greener

than petroleum-based plastic when the use of

pesticides and synthetic fertilizers are factored in.

When the extensive land needed to produce the

feedstock to make the bioplastics is also

considered, petroleum-based plastic comes out

ahead in the study. Not All Bioplastics Are Greener. However, bioplastics beat out

petroleum-based plastics when it comes to

biodegradability, low toxicity, and the use of

renewable resources.


Bio-plastics

http://www.japanfs.org/en/pages/030405.html


http://www.physorg.com/news/2010-10-plant-based-plastics-necessarily-greener-oil-based.html



Not All Bioplastics Are Greener (Contd)

Eco Geek suggests that producers of petroleum-

based plastics and bioplastics ―could work with

this study to identify the most damaging aspects

of their methods in order to reduce their

environmental impacts.‖

Perhaps researchers are currently developing a

bioplastic that is greener than the current crop.

The Japanese electronics manufacturer, NEC

Corporation, announced it developed bioplastic

from non-edible plant resources last August. The

main ingredients of the bioplastic are cellulose,

the main compound in plant stems, and cardanol,

an oil-like material from cashew nutshells and a

byproduct of cashew nut processing. In other

words, the bioplastic is made from agricultural

waste. NEC will continue to develop the

bioplastic with goal of using it in electronic

devices by the end of 2013.



York University (NYU-Poly) created a way to

produce bioplastic from yeast and the fatty acids

of plant oils. Gross‘ production method does not

use fossil fuels to process the yeast, and the

bioplastic produced is resistant to moisture, unlike

starch-based bioplastics. The U.S. Defense

Advanced Research Projects Agency (DARPA)

had Gross‘ company SyntheZyme develop the

bioplastic from yeast. DARPA intends to use the

bioplastic as packaging material in its solid state,

and as biodiesel for military engines after it is

broken back down.

This process uses no fossil fuels, and every step is

biologically-friendly, from fatty acids in plant oils

through the end product, which is a versatile,

100% biodegradable plastic. (triplepundit.com 16

December 2010)

Israeli scientist finds sweet solution to plastic waste

An Israeli researcher said he has found a sweet

solution to a sour worldwide problem: mountains

of disposed plastic items that pack landfills and

wash out to sea, and take decades, if not centuries

to melt down.

Prof. Moshe Kol of the Tel Aviv University

(TAU) School of Chemistry, working in tandem

with colleagues at the University of Aachen in

Germany and the University of Bath in England,

is using corn starch and sugar to help create

"green" plastics for hundreds of common items

that is as strong as or stronger than oil-based

versions of the products.

"The structure of these corn-based plastics

depends on several parameters. The most

important is the character of the building blocks,

like Lego blocks, that hold the material together,"

says Prof. Kol, in a statement from TAU released

this week.

Early results of tests, in this case to create a

transparent disposable drinking cup, looks and

feels like the more familiar polystyrene, although

the cup can only hold liquids under 122 degrees

Fahrenheit. But Prof. Kol said he is improving the

process in order to increase the heat-resistance

and strength of the material. The polylactic acid

or PLA material that the team is working with is

made of biodegradable, renewable plant sources

such as corn, wheat or sugarcane, according to the

statement, and is already in use in thin film

products like bottles and bags.

Kol is still looking for ways to improve the

material as a replacement for steel and concrete in

many industrial areas. Such corn-based plastic

would have no toxicity and would be able to

biodegrade within several months instead of

millennia, according to the statement.

(xinhuanet.com 15 December 2010)

Bio-plastics





Sustainable Bioplastics for Future Applications

Increasing worldwide production and

consumption of plastics has resulted in increasing

public health risks, emission of hundreds of

millions of tons of CO2 and consumption of

petroleum. Petro-plastics are not usually made for

long term usage and are not biodegradable by

microorganisms. Therefore, non-biodegradable

petroleum based plastics are an environmental

burden and even also sometimes harmful for

terrestrial and sea animals as well as birds that

tend to eat plastic residues.

Materials from complete biological sources

including starch, cellulose and proteins can all be

consumed by microorganisms. They can be

processed into environmentally friendly materials

for various applications despite their various poor

properties. Many biological metabolic compounds

and their derivatives are useful as monomers for

plastic polymers, and these monomers have been

used to produce various bio-based plastics

including polyhydroxyalkanoates (PHA),

polylactic acid (PLA), poly(butylene succinate)

(PBS), polyethylene (PE), poly(trimethylene

terephthalate) (PTT), polypropylene (PPP),

polyethylene terephthalate (PET) and

poly(propylene carbonate) (PPC). Except for bio-

based PE, PP, PTT and PET, all other bio-based

polymers are biodegradable at different levels.

Since they are bio-based and biodegradable, PHA,

PLA, PBS and PPC have been proposed as

sustainable, environmentally friendly, less

petroleum dependent and CO2 reducing

bioplastics for future applications. Over the past

20 years, commercialization efforts have been

achieved. (Continued in next column)

Sustainable Bioplastics for Future Applications (Contd)

Bio-based plastics including biodegradable PHA,

PLA, PBS, PPC and non-biodegradable PE, PTT

are now available in large quantities to develop

applications. These plastic polymers are normally

produced by the combination of biological

transformation and chemical synthesis with the

only exception of PHA that is completely

synthesized by microorganisms in an aqueous

environment.

These bio-based plastics have been studied by

organic chemists, polymer scientists and

engineers for their methods of polymerization,

their different properties and applications. There

are many possibilities to copolymerize these bio-

monomers with existing petro-monomers for

forming new bio-based plastics with new

properties and different applications

Now, a new special issue highlights the exciting

work done in this burgeoning field, with

spotlights on reviews by Xuesi Chen, Dehua Liu

and Jun Xu presenting recent developments of

PLA, 1,3-propane diol, succinic acid and their

copolymers and carbon dioxide-based

copolymers, respectively. (materialsviews.com 14

Dec 2010)

New biodegradable plastic marketed for foodstuffs

Biodegradable and compostable Ecomann PHA,

from Bioresins, is being marketed for food contact

applications after independent tests established

compliance with European Commission Directive

2002/72/EC (and its amendment 2007/19/EC).

The EU seal of approval enables the UK-based

supplier to pursue European food and drink

manufacturers.


Bio-plastics

http://doi.wiley.com/10.1002/biot.v5.11

http://dx.doi.org/10.1002/biot.201000135





New biodegradable plastic marketed for foodstuffs (Contd)

―The green light by the EU corroborates what

we‘ve already discussed with major brands

owners but it was good to get official

authorisation from the SGS test house,‖ said

Mike Hughes, general manager of Bioresins.

The versatile polyhydroxyalkanoate (PHA) is

derived from GM-free, non-food maize starch

grown in China, and represents one of the best

opportunities to date for large volume packagers

to include in their products up to 100%

sustainable content plus the potential to home

compost, claimed the company.

(europeanplasticsnews.com 13 Dec 2010)

Launch of new compostable checkout bag

A company in Oxfordshire is one of the first in

the UK to offer a 100% compostable checkout

bag. Polythene UK has produced the Polycomp

bag, which contains biopolymers made up of

starch. It will biodegrade completely within 10

days. The process is accelerated even further

when temperature is increased, for example

during the summer season, where the bugs are

more active in the garden. The bags are certified

as fully biodegradable and compostable according

to the European norm EN13432, which was set up

to regulate products which are disposed of in

composting sites. The checkout bags will be on

displayed at the easy Fairs ECOPACK show next

February in Birmingham's NEC. (edie.net 13 Dec

2010)

Green Products: Disposable dinnerware

It is easier to use disposable since it certainly

saves time and energy on washing up. However,

washing up plates is far more eco-friendly than

tossing a bunch of plastic plates in the landfill.

Consider disposable plates made from bamboo,

sugarcane and areca nut bark. All of these

products are available from countless online

retailers and artisans, and can also be found at

some larger stores, such as Target. Bamboo can

be converted to eco-friendly disposables by

pulping and molding it into plates, cups or bowls.

Making sugar leaves a product called bagasse

which is usually burned, however it is being

converted into eco-friendly disposable plates and

cups. It is totally bio-degradable and also comes

from a renewable resource. Most southern US

sugar growers are able to bring two or three crops

to maturity per year so there is a lot of sugarcane

available. Many bagasse items are also imported

from sugar-cane growing areas like Thailand.

Areca nut plates are not so common in the West

but are readily available in India and many

Eastern countries. It is quite a hardy material

which can even be microwaved and reused, yet it

is from all natural sources and is 100%

biodegradable. (Continued on next page)

Bio-plastics



Green Products: Disposable dinnerware (Contd)

All of these can even be composted. There are

many biodegradable cutlery options as well.

Cereplast is a biodegradable resin made from corn

and potato starch which can be composted, a

Californian company called Nat-Ur makes cutlery

out of this material. Switchgrass from North

America is covered in cornstarch to make it

stronger and even dishwasher safe. Gaiam makes

a whole place setting from this high-yielding

grass. Another company EarthShell, makes a wide

range of compostable plates, cups, cutlery and

food storage containers from fully biodegradable

renewable materials like limestone and starch.

The company has been supplying food service

giants like SYSCO and McDonald's for years. Ver

Terra is company born from an eco-idea from

India: this all-natural range of dinnerware is made

from only fallen leaves, steam, heat and pressure.

(justmeans.com 3 Dec 2010)

Yeast and plant fatty acids produce durable recyclable plastic; conversion into biodiesel



York University (NYU-Poly), has developed a

method for producing a strong, highly ductile

bioplastic using yeast and fatty acids of plant oils.

The findings were published in the Journal of the

American Chemical Society.

The monomer itself is relatively new. The units

are called omega-hydroxyfatty acids, and when

strung together to form a polymer, they can

produce a biologically friendly plastic. Until now,

omega-hydroxyfatty acids were difficult and

expensive to produce using traditional methods,

prohibiting their widespread use. Gross produced

the monomer in a first-of-its-kind fermentation process, a fairly quick, low-cost method.


Yeast and plant fatty acids produce durable recyclable plastic; conversion into biodiesel (Contd)

The monomer is then polymerized to form a uniquely ductile, strong natural plastic that

biodegrades completely in soil. Gross and his

team devised a new way to produce these

monomers by using a genetically modified strain

of the yeast Candida tropicalis. The engineered

yeast is capable of converting fatty acids of plant

oils into large quantities of omega-hydroxyfatty

acids. When polymerized, the new material may

be a suitable substitute for petroleum derived

plastics such as polyethylene for uses such as

disposable gloves, multilayer food packaging

films, and films for ice, trash, garments, produce

bags and more.

The new bioplastic is highly resistant to moisture,

which is an important improvement over currently

sold bioplastics such as polylactic acid and starch-

based plastics.Gross‘ company, SyntheZyme, was

tapped by the US Defense Advanced Research

Projects Agency (DARPA) to develop this

bioplastic. The material was originally intended to

serve a dual purpose: as packaging material in the

solid state, and as a biodiesel for military engines

after being broken back down or de-polymerized

to monomer units. The material development and

performance in the solid state has been

successfully completed; research into converting

the plastic to diesel is currently under way.

(favstocks.com 9 Dec 2010)

New hope for heart patients: Biodegradable stents

Retired Income tax officer from Patna, M.P.

Singh, 65, became the first patient in India to be

implanted a new scaffold—biodegradable stent—

made from cornstarch instead of metal.

Dr Ashok Seth, chairman, Fortis-Escorts Heart

Research Institute, also the principal investigator

in India for the trial, did the procedure.


Bio-plastics

http://www.justmeans.com/editorials?action=readeditorial&p=38874

http://www.favstocks.com/tag/performance/



New hope for heart patients: Biodegradable stents (Contd) "Clinical trials are ongoing on across 100 centres

all over the world but it is too early to talk about

costs and long-term results," said Dr Seth.

The chances of restenosis— formation of new

blockages within three to six months of stenting—

at the site of angioplasty are 5%, same as that

with metal stents.

"Unlike the metal stents, which remain in the

body even after they have served their purpose,

these biodegradable scaffolds will dissolve after

the artery is repaired, turning into carbon dioxide

and water after about two years," he said. Also,

once the scaffold dissolves, the arteries will be

able to contract and relax like normal ones," he

said.

Other potential advantages over metal stents

include the patient being able to undergo MRI and

even stopping his blood-thinning medicines

without the risk of clots forming in the arteries."

Another big advantage will be that a patient with

multiple stents, who had reached a no-option

situation—they need repeat stenting or surgery

but cannot go for it because of the long length of

metal inside the arteries—will have both options

available to them," he said.

Manufactured by Abbott, the biodegradable

scaffold was first fitted in a patient in Australia

four years ago. Besides Fortis Escorts (Delhi),

four institutes across India—Apollo (Chennai),

Care Hospital (Hyderabad), Madras Medical

Mission and SAL hospital (Ahmedabad) — will

carry out the trials in the next one year."

Although a date hasn't been decided, these stents

should be commercially available in one and a

half years," said Dr Seth. (hindustantimes.com 11

Dec 2010)

Shock Wave: Cavitation shaking up ethanol with revenue upside

In Ohio, Arisdyne Systems has pioneered

technology that can increase ethanol production

by 10%, or reduce the use of catalyst by 25% in

biodiesel production. Taken across the US ethanol

fleet (outside of POET, which uses its own

proprietary system to achieve, potentially, a 5 to

10% improvement in productivity per gallon), that

could translate to roughly 1.8 bio additional

gallons of ethanol for the same delivery of corn,

barley and wheat bushels.

When you introduce a controlled cavitation into,

say, a corn slurry at an ethanol plant, the shock

waves destroy all particles in their pathway and

the cell structure – making large particles into

smaller ones. That increases the overall surface

area and – voilá – you expose more starch surface

area to enzymes, resulting in more reactivity as

enzymes convert starches into sugars. It works

somewhat the same in biodiesel – which is why

you need less catalyst. In ethanol, you get a 3-5%

lift in yields.

When corn famers deliver to ethanol plants, a

percentage of the kernel consists of corn fiber.

That usually ends up as low-cost animal feed.

With cavitation, you can destroy that fiber‘s cell

structure and release sugars that are available for

enzymes.

Overall, you can increase a standard ethanol yield

of 2.7 gallons per bushel to around 2.85 gallons

with the cavitation of the existing starch, and

bump that up to 3.0 gallons per bushel

with the cellulosic fiber. (biofuelsdigest.com 15

Dec 2010)

Bio-plastics

cellulosic conversion, if you have the right

Bio-fuels Bio-plastics







































Europe searching for right biofuel balance

Europe needs to make sure the increased use of

biofuels doesn't have indirect impacts on the

regional environment, a climate commissioner

said.

Europe in 2009 outlined a measure that calls for a

6% reduction in greenhouse gases for fuels in the

transportation sector by 2020. As much as 10% of

the energy used in the sector, meanwhile, needs to

come from renewable energy resources. The

European Commission said biofuels are expected

to make a "significant" contribution to those

targets.

The commission said there is a risk that the

growing demand for biofuels could cut into the

amount of land used for agriculture. Carbon sinks

such as forest and wetlands could also vanish if

used for biofuels crops.

The European government said it needs to find the

right balance between advancing the use of

biofuels while at the same time preventing an

increase in emissions associated with the

conversion of land indirectly.

"We have to ensure that the biofuels we promote

deliver clear greenhouse gas savings,"

Connie Hedegaard, the European climate action

commissioner, said in a statement. (upi.com 23

Dec 2010)

FTC: US ethanol market still unconcentrated

The US ethanol market is still unconcentrated,

with 160 firms nationwide either producing the

motor fuel additive or likely to be producing it in

the next 18 months, according to the Federal

Trade Commission in its sixth annual report.


FTC: US ethanol market still unconcentrated (Contd)

The annual examination, which is required under

the 2005 Energy Policy Act, found that there were

the same number of US ethanol producers as of

September 30 as the federal antitrust regulator

listed in its 2009 report.

It said the largest producer‘s share of total US

production capacity grew to 12% this year from

11% in 2008 and 2009, but remained below its

16% share from 2001 to 2007 and its 41% share

in 2000. The Dec. 3 report did not identify the

producer.

Ethanol production and production capacity both

increased this year, the report said. US production

increased 23% to 12.3 bio gal in 2010 from 10 bio

gal in 2009, reaching a level more than 750% of

what it was in 2000 when it was 1.6 bio gal, it

said.

―Domestic ethanol production capacity, including

capacity under construction, also rose from 14.5

bio annualized gal as of October 2009 to 15.2 bio

gal as of October,‖ it continued. ―Industry

participants expect some of the expansion projects

currently under way to come online by the end of

2010.‖

The report said that while there is enough ethanol

production capacity in existence and under

construction to meet federal Renewable Fuel

Standard requirements this year, additional

capacity will be needed to meet future RFS

mandates under the 2007 energy Independence

and Security Act, including volume requirements

for advance biofuels (defined as cellulosic ethanol

and other biofuels derived from feedstocks other

than corn starch).

It said that while there is no commercial-scale

cellulosic ethanol production in operation today,

investment in its research and development is

continuing. (ogj.com 8 Dec 2010)

Bio-fuels



Bioengineers develop bacterial strain to increase ethanol biofuel production

Georgia, US - A team of Bioengineers in the

United States have modified a strain of bacteria to

increase its ability to produce ethanol. The

research, published in Biotechnology and

Bioengineering, reveals how adaptation and

metabolic engineering can be combined for strain

improvement, a positive development for the

biofuel industry.

The team focused their research on Zymomonas

mobilis, a bacterium noted for its bio-ethanol

producing potential. However, the team believed

that ethanol production could be increased

through improvement of xylose fermentation.

"Zymomonas mobilis is a superb ethanol producer

with productivity exceeding yeast strains by

several fold," said lead author Rachel Chen from

the Georgia Institute of Technology. "In this study

we sought to improve ethanol production by

enhancing the ability of Z. mobilis to use and

ferment xylose. Fermenting xylose at high

concentration could in turn increase ethanol

concentration, resulting in much improved

productivity."

The team found that by metabolically altering the

strain, sugar fermentation time was reduced from

over 110 hours to about 35 hours. (Continued in

next column)

Bioengineers develop bacterial strain to increase ethanol biofuel production (Contd)

This improvement in fermentation allowed the

strain to ferment higher concentrations of xylose.

"This demonstrated increase in fermentation and

xylose utilization enabled us to produce ethanol to

a concentration of 9% (w/v), the highest ever

shown for this organism in mixed sugar

fermentation," said Chen.

This research also investigated the underlying

mechanism for the improvement. Interestingly, by

adapting a strain in a high concentration of

xylose, significant alterations of metabolism

occurred. One noticeable change was reduced

levels of xylitol, a byproduct of xylose

fermentation which can inhibit the strain's xylose

metabolism. In addition, the first step of xylose

metabolism, believed to be the rate-limiting step,

was accelerated 4-8 times in the adapted strain,

with the net effect of channeling xylose to ethanol

instead of xylitol.

"This research illustrates the power of adaptation

in strain improvement," concluded Chen. "This

confirms that xylitol metabolism is the key to

efficient use of xylose in this bacterium, which in

turn can be vital for producing ethanol. This

shows that adaptation is not only useful in

improving strains, but is equally useful for

pinpointing key bottlenecks in metabolically

engineered strains." (eurekalert.org 9 Dec 2010)

Bio-fuels



Celluosic ethanol estimates revised downward

The future of renewable fuels is supposed to be

largely about breaking down the stubborn

cellulose fiber in such cheap materials as wheat

straw, cornstalks, switch grass and wood chips,

converting them to energy and putting the results

in your fuel tank. That's when the Environmental

Protection Agency lowered its 2011 expectations

for cellulosic output from 250 mio gallons to

6.5 mio gallons.

The EPA retreat raises questions about reaching

the lofty federal goal of 16 bio gallons of

cellulose-based fuel by 2022. But Chris Standlee

is not ready to hit the panic button. ―And look at

what the starch-based industry has done in the last

five years,‖ said the St. Louis-based spokesman

for Abengoa Bioenergy, which also expects to

break ground in Kansas early next year on a

USD 400 mio to USD 500 mio cellulosic plant of

commercial scale. Sturdevant, director of Poet's

Project Liberty, a 25 mio gallon-per-year plant

planned for Emmetsburg, Iowa, that would turn

corn cobs into cellulosic ethanol.

Sioux Falls-based Poet's pilot-scale plant in

Scotland, S.D. is currently producing cellulosic

ethanol at a rate of about 20 000 gallons per year.

Standlee said the rapid ratcheting up of ethanol

made from corn from 2 bio gallons five years ago

to more than 13 bio gallons now supports his

point about big transitions happening in short

periods of time. (Continued in next column)

Celluosic ethanol estimates revised downward (Contd)

At the same time, he conceded that progress has

been pretty limited so far toward the next

generation of renewable fuels. Poet is still working

to secure a guarantee from the U.S. Department of

Agriculture for its USD 200 mio Project Liberty

plant, which would be built next to its corn ethanol

plant in the Northwest Iowa city of Emmetsburg.

Critics of the effects that corn for ethanol use can

have on water quantity and quality, the cost of

livestock feeding and other parts of everyday life

have been eager to see how quickly renewable fuels

production might evolve away from corn.

Reaction from prominent people in ethanol circles

to the latest EPA news ranged from concerns about

the shortage of private financing to a professing of

faith in the ability of corn farmers to rise to a new

production challenge. Schmit, a former state

senator and crafter of state incentives for corn

ethanol, said corn farmers have much more

potential to double their output than champions of

cellulosic ethanol have for reaching their goal.

(siouxcityjournal.com 5 Dec 2010)

Eco-friendly chromatography

Spanish scientists have devised a greener form of

liquid chromatography by using cyclodextrins as

additives in the mobile phase. This results in more

water being used in the chromatographic process.

Cyclodextrins are a natural, renewable compound

made from starch and are totally biodegradable.

They can be modified and tailor made, and as a

result are used in a variety of fields including the

pharmaceutical, food and cosmetic industries.

Antonia Martin and colleagues from the

Complutense University of Madrid investigated

ways of reducing the amount of acetonitrile and

developing chromatographic methods that use an

increasing amount of water and renewable solvents

like ethanol. (rsc.org 9 Dec 2010)

Bio-fuels Others



These are the news derived from regional

publications, translated using online tools,

hence the medium quality of translation.

China

How will the fate of Hebei corn?

Under the influence of the cloudy weather this

year in most area of Hebei province, the new grain

has been highly moisture, so that the process to

sell grain is slow in Hebei province. According to

the latest survey report of China corn net, as of

early December the sales process of new corn is

only 12.67%.

Because the supply of new corn is very low in

market, while the demand for corn is increasing,

there are a lot of cooperate need for new corn, so

the price remains high.

First, the work of new grain harvest has been

basically finished in some areas of Hebei province

in the middle of October. But the new corn can not

be dry sufficiently because of foggy weather. So

the new corn trading activities begin in November

in most areas of Hebei province.

Just when the new corn exchange in market stage,

some deep-processing enterprises increase the

price again and again to improve acquisition

situation, for example, at the end of October,

Qinhuangdao Lihua Starch Factory adjusted the

corn price to 2 000 yuan per t, while the purchase

price of new grain of Changli starch factory has

been adjusted to 2 000 yuan per t, both of them

increase 70-80 yuan compared with beginning.

However, the enterprises did not improve the

purchasing situation due to the local famers are

reluctant to sell the new gain.

Some of deep-processing enterprises in

Qinghuangdao city Hebei province begin to

purchase new grain from Chin Northeast areas

under the lacking stock situation.

(Continued on next column)

How will the fate of Hebei corn? (Contd)

And the purchasing price already reach to

2010 yuan per t. The corn price fall slightly along

with the new corn coming to market, but the price

still remain rising. Second, although the

enterprises have repetitive raise in purchasing

price, but the situation of new corn entering the

market can not be changed. because of the

generally optimistic outlook, the majority of

farmers are reluctant to sell corn, price to be

gradually increased, the worth of helpless,

Eventually climbed to the highest point of the year

at an average purchase price of 2003 yuan per t,

then the purchasing price keep in high step.

Third, under the various negative factors, Hebei

corn fall down slightly. Recently regulated by the

State policy and farmers face the pressure of loan

to repay, the supply of new grain market was

gradually rised in most areas of Shandong and

Henan, corn prices began to fall back, and the

purchase price is also shows weak tendency along

with the supply rising.

The work of drying new grain has been basically

completed along with the weather turn better. So

the supply of new corn is rising. Under the

macroeconomic policies of the State, the situation

of farmers were reluctant to sell corn has been

released. Some of famers, who work outside,

come back to hometown to sell corn before the

Chinese new year. Therefore, the recent corn price

in Hebei has started "allay fever‖.

The new corn price has fallen recently in some

areas of Hebei province along with the raise in

supply. But because some farmers are still

reluctant to sell, and the local corn was dried by

nature, almost dry, it is easy to store.The majority

of farmers will sell the new corn after the Chinese

New Year. There is limited space to fall for Hebei

new corn. The purchasing price will be stable.

(chinafeed.org.cn 15 Dec 2010)




Corn prices is slightly increasing in Guangdong market Due to the price falling, the positive of north

trader declined, the shipment is also down, leading

to the reduction in the arriving quantity in

Guangdong Port recently, then stock pressure

decreased, the price is slightly increasing.

At present, the corn stock of Guangdong Port

reduce to 25 mio t. the price for the first class corn

is 2170 yuan per t it is 10 yuan per t more than last

week, the price of old corn is 2170 yuan per t (the

freight from North port to Guangdong shekou

sport is 60-65 yuan per t)Corn prices increase

slightly in Guangdong made balance between

North and the South Port. (chinafeed.org.cn 17

Dec 2010)

Corn prices of Hebei province is stable in December 2010

At present, the corn price in Hebei province is

stable, under the influence of Government

macro-control that State store bureau can not be

permitted to purchase and store corn, so the space

for further increasing of corn price is small.

Purchasing price of Limin starch is

RMB 1960 yuan per t at present, below is Hebei

Starch market information:

Starch factory Purchase

price

yuan/t

Moisture-

bearing

Price

Trend

Limin Starch 1960 14 stable

Xinjirede Starch 1920 16 stable

Shijiazhuanghuashu

Pharmaceutical

1960 15 stable

Under the influence of snowing of China

Southeast area in January, the corn price in Hebei

province will be increasing a little, the farmer is

positive to sell corn. (82158.com 23 Dec 2010)

Celanese to invest USD 300 mio for Chinese ethanol plants

Dallas-based chemical company Celanese said it

will invest about USD 300 mio to build an ethanol

plant in China.

The announcement was made along with that of

the signing of a deal with Wison (China) Holding

Co., a Chinese synthesis gas supplier, for

production of unidentified nonfood feedstocks

used in Celanese‘s advanced ethanol production

process.

Celanese previously announced its intention to

construct manufacturing facilities in China that

will use its newly-developed and proprietary

advanced technology to produce industrial

ethanol.

Celanese said it intends to construct one, and

possibly two ethanol complexes in China to serve

the fast-growing demand in Asia.

The company also announced its intention to

explore opportunities in China and other countries

for the application of its technology in the global

fuel industry.

Industrial ethanol is used widely in chemical and

industrial applications such as paints, coatings,

inks and pharmaceuticals.

China‘s demand for industrial ethanol is

approximately 3 mio t yearly, and is expected to

increase between 8 and 10% per year.

Celanese‘s technology makes use of a variety of

hydrocarbon resources such as coal. In addition to

producing industrial ethanol, the company is

working on to produce fuel-grade ethanol.

(ecoseed.org 24 Jan 2011)


http://www.google.com/url?q=http%3A%2F%2Fwww.82158.com%2Fbj-22279.html&sa=D&sntz=1&usg=AFQjCNF3zf1kAD9hlJRLKJV-1-8i1UjJ-g

http://www.google.com/url?q=http%3A%2F%2Fwww.82158.com%2Fbj-22279.html&sa=D&sntz=1&usg=AFQjCNF3zf1kAD9hlJRLKJV-1-8i1UjJ-g



Golden Harvest Futures: Corn

Corn (fundamentals) acquired by the local peer

companies at high prices is not ideal due to the

acquisition of corn, Jilin Province, Huanglong and

Gongzhuling COFCO Biochemical Company

purchase price of corn rose again on Friday. The

current listing price is 1600 yuan per t, from the

previous month rose 80 yuan per t, but no

noticeable increase in the acquisition of nearly

three days, the acquisition of two companies at a

total volume of 5kt. New listing price of corn

liquor Denon 1630 yuan per t, from the previous

month rose 20 yuan per t, at the acquisition

volume of 4-5kt.

Recently, a comprehensive domestic prices

sharply higher corn starch, sales areas from

production companies to market prices tens of

dollars to one hundred yuan per t range. Corn

prices also affect the overall high price of the key

spot. In addition, the recent rainfall in North China

generally cool weather also affected the transport

situation in maize, it is worth attention. (flounder-

regina.zhfy66.cn 15 Dec 2010)

Russia

In getting involved bioethanol wine yeast

In yeast species Saccharomyces cerevisiae,

researchers at Stanford University have identified

a gene that may play a significant role in the

process of getting ethanol from plants, which

could be an alternative to fossil fuels. Combining

new technologies with traditional definitions of

the genome by genetic methods, researchers have

shed light on previously unknown ability of yeasts

Saccharomyces pyatiuglerodnye convert sugars

such as xylose, into ethanol.


In getting involved bioethanol wine yeast (Contd)

Despite the enormous activity of yeast in

shestiuglerodnyh sugars such as glucose, the

researchers did not anticipate that they may also

actively fermenting and pentoses, which abound in

agricultural residues or crops, for example millet.

As the industry became interested in fuel from

plant material, type of yeast that can vzbrazhivat

both types of sugars equally well, was of particular

interest.

So scientists Jared Wenger (Jared Wenger) and

Katja Schwartz (Katja Schwartz) have turned their

attention to the previously studied species of yeast

that can ferment xylose into. They found several

kinds of yeast, mainly used in making wine that

can absorb this sugar. Scientists have identified a

gene that is responsible for the possible occurrence

of this process, called XDH1.

Although the natural ability of yeast to process

this sugar is low, and they are not yet able to use

xylose as well as genetically-modified yeast, the

discovery scientists may in future result in new

species of yeast that will be used in ethanol

production. (strf.ru 17 Dec 2010)

Russia cancels import duties on barley, oats, wheat, rye and maize, import duty on soybean meal will be saved

First Deputy Prime Minister Victor Zubkov

chaired a meeting of the Sub-Commission on the

customs tariff and nontariff regulation, protective

measures in foreign trade. This was reported by

the government press service. As a result of the

discussion, members supported the proposal to

move from May 1 to March 1 this year period for

the low (USD 50-250 per t) size of the import duty

on raw sugar.



http://flounder-regina.zhzhfy66.cn/

http://flounder-regina.zhzhfy66.cn/



Russia cancels import duties on barley, oats, wheat, rye and maize, import duty on soybean meal will be saved (Contd)

Now apply the scale of customs duty on raw sugar

in the range of USD 140-270 per t. The meeting

participants agreed on the abolition of the term

until June 30 this year currently in import duties

on barley, oats, wheat, rye and corn (the current

rate - 5%). According to members of the

Commission, such a measure would encourage the

domestic market additional volumes of these

goods, the maintenance of price stability in the

consumer market and curb inflation on the

mentioned products.

In this case, Zubkov emphasized the temporary

nature of the measures taken, stressing that they

should not be a signal to the Russian agribusiness

to reduce production volumes similar domestic

products. In this regard, Zubkov instructed the

Ministry of Agriculture Ministry of Economic

Development and Russia to carry out operational

monitoring of the implementation of these

measures and their impact both on the price

situation and the dynamics of domestic

production.

"The results beg to report regularly to the

government commission to monitor and respond

quickly to changing conditions of food markets", -

said Victor Zubkov.

To further support the positive dynamics of

growth of soybean production in the Russian

Federation - in 2010 the harvest has exceeded

1 mio t - the meeting participants acknowledged

the favor of maintaining the currently valid rate of

import duty on soybean meal (5%). Decisions of

the Sub-Commission recommended for

consideration by the Commission of the Customs

Union. (apk-inform.com 28 Jan 2011)

Latvia to build a plant to produce bioethanol

Latvia to build a plant to produce bioethanol.

Company Jaunpagasts Plus is going to build on the

territory of Latvia, the largest in Northern Europe

plant for the production of bioethanol. The project

cost is estimated at EUR 122 mio. Assistant to the

Chairman of the Board Jaunpagasts Plus Una

Ulme reported that banks are not willing to lend

such large projects, so the company sought

assistance from the authorities of the country.

In order that the enterprise could compete at the

European level, should be increased and higher

production capacity. The company has already

begun work on a project - JP terminals, providing

for the establishment of a modern factory in

Riga. According to the draft, the new plant will

annually produce approximately 110 mio liters of

bio-ethanol.

In order to produce bio-ethanol plant in such

volumes will need to process about 400kt of grain,

which in turn contributes to employment in

agriculture. The new plant will provide about

200 jobs. (elektrovesti.net 17 Jan 2011)




Germany

The Swedes have reported a breakthrough in the production of bioplastics

In Sweden, a project on commercial production of

plastics for domestic purposes without the use of

oil products is launched. A pilot project using this

scheme, was launched by AnoxKaldnes two years

ago. It involves recycling of liquid waste into

polyhydroxyalkanoates (PHA), which can be used,

for example, for the manufacture of plastic

containers.

Proper waste management is carried out by

microorganisms. To do this, they first need to

enrich the oxygen and nutrients, then the bacteria

will begin to select and "store" the PGA as an

energy source.

Swedish researchers were able to increase the

content of PGA in the waste (for example,

remaining in production of wood or paper) to 42%

of their dry weight.

Technology, scientists believe, can compete with

the traditional method of obtaining plastics from oil

products. Moreover, as argued in AnoxKaldnes,

cost close to USD 2 per 1 kg of plastic - its current

price. Other companies working on the same

process technology, yet can offer only USD 45-55

per kg.

Experts predict that global production of

bioplastics will increase considerably in the near

future. It is estimated the company BCC Research,

by 2015, annual growth reached 40%. (e-plastic.ru

28 Dec 2010)

Bioplastic from non-edible starch

Biopar, from BIOP Biopolymer Technologies AG

(Dresden-Germany), is a non-edible potato starch

based biopolymer with the capability to 100%

biodegrade – EN 13432 – into water and carbon.

It biodegrades in the environment by the help of

the micro organism present in this environment.

There is no need to compost it in an industrial

composting facility but of course you can. On the

other hand the so called shelf-live of the

converted BIOPAR® is at least 5 years without

the loss of properties.

This bioplastic does not use starch predestined for

the food chain, human nor animal. The starch

used comes from a potato especially grown to

produce starch. This is usually a non edible

potato. This particular starch finds its use already

for decades in the Paper, Textile, lubricants for

oil drilling, glues, wall paints etc. Changing the

world‘s environment by using plastics is so

common spread that it is hard to resist discussions

about the usage of plastics in general. Plastics

preserve the quality of foods keeps away dirt and

prevents contaminations etc. of many non food

products.

The negative side effects – the consequential

damage – of the use of plastics occur during the

second live of the plastics, or the irresponsible

disposals of the plastics are the main focus of this

bioplastic. (biopol.free.fr 2 Feb 2011)

Brazil

Area corn crop is 18% lower in Parana

The area with summer corn is 18% lower in

Parana. The producer discouraged with the crop

price last winter and migrated much of their land

to soybean in the first season of 2011. The

producer José Roberto Mortari, for example,

reduced the maize crop by 60% compared to the

winter of 2010. (Continued on next page)


http://www.biop.eu/index.php?english



Area corn crop is 18% lower in Parana (Contd)

Without the grain price to remunerate, he planted

only 50 acres only for soil health. This summer,

Paraná should harvest 5.34 mio t of corn. The

volume will hardly surpass the previous harvest,

even if productivity remains at 7.5 kilos per

hectare, record last year.

State expected to increase in winter maize

Prices were pulled by the valuation of commodity

in foreign markets, but it happened after the

decision is taken by the producer. At the time the

bag was priced at USD 13 in Parana. Today, with

the average price of USD 22, the farmer has

already expressed interest in the latter season.

The first official estimate of planting winter maize

should be disclosed by the Secretary of Agriculture

by the end of next week. However, the technicians

of the Department of Rural Economy of the

Secretariat has estimated a 10% increase in area

over the past winter. For two years running in 2009

and 2010, the Paraná reduced the area with winter

maize.

However, there is an expectation that the effects of

La Niña may extend through the planting of corn

for winter. An additional worry, since the cereal

crop is very sensitive to climate, as well as having

a high deployment cost.

We always say this: when has a lot in one month,

may miss the other. We are now plenty of rain in

January, and as La Nina is characterized by

climatic uncertainties, we have a dry month of

February. And particularly those who planted

soybeans early enough can start to sow maize as

second crop in February - says Rodolfo Bianco, a

researcher at the Agronomy Institute of Paraná

(Iapar), who believes that most producers will sow

in March. (canalrural.com.br 25 Jan 2011)

Thailand

Prices tend to rise, Thailand, cassava and cassava products in demand

According to Thailand "World News" reported on

January 15, President of Nepal Association of

Thai tapioca Yong said the factory, cassava and

cassava products export prospects, particularly in

China and Europe, will become the major export

markets for cassava and cassava products in

2011.

With the increased market demand, especially in

the winter time when the country to take

advantage of cassava production of alternative

energy sources, promote Thai cassava and

cassava products price tends to rise, the current

international market price of cassava is as high as

18 baht per kg with cassava purchase price of

3.5-4 per kg baht. Thailand's cassava production

in 2011 may not meet market demand, as the

outbreak of the 2010 floods in many parts of

Thailand has resulted in reduced cassava

cultivation with an export volume of only

1 800-1 900 t of cassava in 2011. The export

value has shrunk from 900 mio baht to 600 bio

baht.

Yong said Nigerian cassava farmers suffering

from floods, aphids have not been eased disaster,

the relevant Committee and the Ministry of

Agriculture and Cooperatives, parasitic wasps

and parasitic insects to accelerate breeding in

order to solve the aphid problem. Meanwhile, the

official but also to the farmers of soil

maintenance training, and instill in planting

vetiver grass in the rainy season water ways in

which agricultural production increased.

Cassava production decreased in 2011, fear of

affecting domestic consumer demand, but supply

the international market trend is not being tight,

as Vietnam will export cassava 1-3 months.





Thailand: Organic growth potential (Contd) While currently the majority of organic products

are basic unprocessed commodities such as rice,

fresh fruits and vegetables, there is a trend

towards intermediate processed products such as

sugar, tapioca starch and palm oil. According to

the International Foundation for Organic

Agriculture Movements, Thailand has yet to

produce sufficient quantities of raw organic

material to feed a large-scale industry that could

turn out finished processed organic products.

Importers generally prefer to buy raw materials

from Thailand for processing overseas.

With higher levels of investment in the organic

segment and greater acceptance by farmers of

green agriculture practices, the scale of the

industry could be expanded to the point where

end-product processing could develop and help

drive up the levels of profitability.

Though organic farming is unlikely to challenge

mainstream agriculture in Thailand in the

immediate future, it has the potential to develop

into a significant niche segment, both in the

increasingly aware domestic market and for

overseas trade. (thailand-business-news.com 18

Dec 2010)

Cassava starch market in Thailand

CAAEE market January 26, 2011 Information:

manufacturers have said that while raw materials

such as cassava are abundant in Thailand, but

only barely able to support the plant needs,

today's purchase price of cassava in Thailand is

3200-3400 baht per t, or about RMB 711 - 756

yuan per t. Price of cassava starch in Thailand is

higher than that of cassava. The Cassava starch

Association yesterday reported that the FOB price

of 560 dollars. (foodqs.cn 26 Jan 2011)

Prices tend to rise, Thailand, cassava and cassava products in demand (Contd)

If there is not enough production in Thailand will

export may lead to tension in the international

market supply and demand, the lack of

production of industrial raw materials, to

stimulate cassava product prices. (cncassava.com

15 Jan 2011)

Thailand: Organic growth potential Thailand‘s state and private sector are joining

forces in a bid to develop the country‘s small

organic agriculture sector into a major export

earner. However, finding the right incentives to

convince farmers to make the switch from

traditional methods is proving difficult.

The global market for organic produce estimated

to be worth more than USD 100 bio annually,

with demand set to rise by 10-15% a year

according to a European Commission study.

However, Thailand was only able to register

some USD 110 mio in exports of organic

products last year, according to Commerce

Ministry figures.

Though the over-the-counter price of organic

produce is around 30% higher than similar

conventional products, this does not seem to

bother many consumers, with demand for organic

farm goods standing at 10 times the current

output, according to a recent report citing figures

from the Bank of Thailand.

There are other financial benefits to adopting

organic farming, with estimates putting the cost

of importing agricultural chemicals and pesticides

at some USD 975 mio a year in Thailand.



http://thailand-business-news.com/



South America

Argentina will provide ethanol and sugar

The government signed an agreement with the

sugar company in the province of Tucuman in

Argentina to the Balkans that will provide for

ethanol and sugar, according to press reported that

country. Employers Lonac Jorge Rocchi and

Catherine would have met with President José

Mujica in Montevideo to define the details of the

agreement.

Tucumanos media said the agreement between

Argentina and the government company states that

the firm will assign a distillery to produce 240,000

liters of ethanol in addition to providing white

sugar and raw sugar. Despite these negotiations,

nor had yesterday ALUR Ancap or more details on

the signing of this agreement was confirmed by El

Pais. However, official sources said they leaked so

far, in the coming days ALUR and the Balkans

would be able to sign a cooperation agreement.

(elpais.com.uy 31 Jan 2011)

Vietnam

Farmers urged to cultivate hardier crops this winter

HA NOI — Northern mountainous provinces need

to drastically change their crops to cope with

drought and strong cold spells forecast to dominate

this winter-spring crop, said yesterday head of the

Agriculture and Rural Development Ministry's

Cultivation Department Nguyen Tri Ngoc.

The department recommended the provinces shift

about 10,000 hectares of rice to other crops

including maize, peanuts and soya-beans which are

more suited to the prolonged drought.


Farmers urged to cultivate hardier crops this winter (Contd)

Midland and mountainous provinces plan to grow

250,000 ha of rice, 40% of which will be hybrid

varieties, with expected average productivity of

5.3 t per hectare.

Deputy minister Bui Ba Bong said that rice would

remain the dominant crop; however, the provinces

should sow rice seeds this month and take

measures to protect crops from cold and brown

hopper pests. It is estimated that corn-growing

area stood at about 150,000ha, 10,000ha larger

than previously, potentially yielding about 700kt.

(vietnamnews.vnagency.com.vn 8 Jan 2011)


starch italics 8th edition

Documents

global starch supply

new variants

gm starch potatoes

month giract global

day mio

day tph tons

ethanol biofuel production

new grain elevators