starch italics tenth edition

GIRACT

Starch Industry Overview

Starch Italics

www.giract.com

Apprril /May 2011

Starch Italics Starch Industry Overview

Apr/May 2011 TABLE OF CONTENTS

Crops & Grains

p.1 S. Korea to set up global grain firm

Demand for corn falls

p.2 Cargill's Truvia Now no.2 Sugar

Substitute

Starch & Derivatives

p.3 Iowa companies named in ‗corn sugar‘

lawsuit

Cargill plans to convert corn wet mill into

bio-refinery campus

p.4 China levy anti-subsidy duties on EU

potato starch

Vitamins may hitch a protected ride on

corn starch

p.5 Xylitol for Antimicrobial, Cosmetic

Preservative

Ethanol merits federal support

p.6 Strategic Review of Corn Starch Industry

&Markets-Starch

Derivatives, Sweeteners & Co Products

p.7 Potato research tackles starch content and

pests

Petrobras says gasoline, ethanol prices to

fall

p.8 Fungus process makes ethanol production

more efficient

p.9 Composite Technical Services Introduces

Polycard XFN Bio-Based Polyols

ADM expands South American operations

Company News

p.10 DSM, Roquette to build commercial-scale

succinic acid project in Italy

ADM Starts bio propylene glycol

p.11 ADM to acquire Praire Pride Soy crush

and bio diesel plants

p.12 Tate and Lyle, Electrocomponents

p.13 DuPont building up biotech

Bio-Fuels

p.14 Cargill plans to convert corn wet mill into

biorefinery campus

China Set to Increase Use of Biofuels

p.16 Biofuels can provide up to 27% of world

ransportation fuel by 2050

p.17 Great Falls ethanol plant clears financing

Hurdle

p.18 Next generation of corn products

Entering market

p.19 Company eyes biofuel potential

p.20 Luverne ethanol plant to highlight market-

expanding technology

Renewable Energy In the Pond

Bio-Plastics

p.21 Bakery waste turned into alternative fuel

source

Bioplastics based on potato starch not

necessarily compostable

p.22 Plastics from algae not economic says

analyst

New Bioplastic Features Higher HDT,

Impact

Regional Language News

China

p.24 Food control overweight corn for deep

processing enterprises: "strictly limited"

purchase

Policy control: a rebound inhibition of

deep processing of corn consumption

Decrease of corn starch and potato starch

market price: inflation continued to

influence

p.25 April 26, 2011 corn pice in Heze,

Shandong

(Table of Contents Continued on next page)


Apr/May 2011 TABLE OF CONTENTS

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)

p.28 2010 Sugarcane, cassava, cocoon

production ranked first in the country

Russia

p.29 Bioethanol production in Kyrgyzstan

Biofuels aggravates hunger

p.30 Ukrainian distilleries stimulate the

production of biofuels

p.31 Russia starts production of ethanol in the

next two years

Indonesia

p.31 PTPN X bioethanol plant operation

schedule 2012

Spanish

p.32 The Brazilian government wants

Petrobras controls ethanol prices

Ethanol demand falls for 1st time in 11

years

Steady supply of corn price increases

sufficient demand is not easy

Portuguese

p.34 Minimum proportion of ethanol in

gasoline falls

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

SUBSCRIPTION Please contact us for subscription details

For more info, contact GIRACT V. Krishnakumar, Jo Goossens

24, Pré-Colomb Tel: + 41 22 779 0500

1290 Versoix/Geneva Fax: + 41 22 779 0505

Switzerland [email protected]

www.giract.com

mailto:[email protected]

http://www.giract.com/

Apr/May 2011 www.giract.com Page | 1


Crops & Grains

S. Korea to set up global grain firm

South Korea will officially launch an international

grain procurement company next week to ensure a

steady supply of staple farm products, a state-run

farm trade company said. The Korea

Agro Fisheries Trade Corporation has been

pushing for a new company to better insulate the

country from sudden fluctuations in grain prices

that can adversely affect domestic production and

inflation. The public corporation said Samsung

C&T Corp., Hanjin Shipping Co. and STX will

join as partners and invest in the company on

April 29. The company is to be set up with an

initial capital of USD 2.5 mio.

The agro-fisheries corporation will take charge of

overall management of the procurement company

to be set up in Chicago, with Samsung focusing

on marketing. STX and Hanjin are to handle

transportation of grain products. Company

executives stressed that the new company does

not plan to compete with such major grain

handlers as Cargill and ADM, but wants to look

for unexplored niche markets.

For 2011, the envisioned company will try to

import around 10kt of beans and corn, with the

numbers to go up to 4 mio t or roughly 30% of the

country's grain requirements by 2015, the

state run firm said. South Korea needs an average

of 20 mio t of grains, such as rice, wheat, corn and

beans per year. It produces around 4-5 mio t of

rice, which is sufficient to meet local demand, but

must import most other products.

(english.yonhapnews.co.kr April 22 2011)

Demand for corn falls

The fast rise in food prices could begin to taper

off later this year. The government‘s latest crop

report estimates that the domestic supply of corn,

which had been forecast to shrink, will grow in

the months ahead The Department of Agriculture

report suggested that the high price of corn is

prompting ranchers and feed makers to use less

and farmers to plant more. (Continued in next

column)

Demand for corn falls (Contd) Analysts expect these trends to push corn prices

lower, and this could ultimately make everything

from beef to cereal to soft drinks less expensive at

the supermarket. Corn prices fell sharply last

week as part of a broader sell-off in commodities

They dropped 30 cents, the maximum allowed in

one day, to USD 6.77/bushel. The USDA

estimates corn exports will drop by about 50 mio

bushels this summer. At the same time, farmers

are planting more of it. By late August, when the

harvest begins, the USDA expects the nation‘s

corn supply to be 730 mio bushels, enough to

satisfy demand for 20 days. That‘s an 8% increase

from last month, when an 18-day supply was

forecast by August. By 2012, the supply is

forecast to grow to 900 mio bushels, enough for

24 days. A 30-day supply is the level considered

healthy by most investors.

The forecast doesn‘t guarantee an end to tight

grain supplies. And it might not account for all the

damage caused by a recent spate of extreme

weather in South. Flooding along the Mississippi

has already swamped more than 1.4 mio acres of

corn, cotton, soybeans and rice in Tennessee and

Arkansas alone, said a commodities analyst with

Telvent DTN.

Farmers will likely replant on the soggy soil, but

they‘ll be behind their normal growing schedule.

That could hurt yields. With Southern states

bracing for yet more flooding the USDA

projections for this year‘s crop could turn out to

be too rosy, he said. Corn prices have more than

doubled since last summer because demand from

ethanol producers and overseas consumers has

grown faster than supply and hit an all-time high

of USD 7.76 on April 11.

Prices have fallen steeply over the last week as

investors sold off their contracts for commodities

from oil to copper, worried that demand for

metals, grains and fuel will stay weak

(Continued on next page)

http://english.yonhapnews.co.kr/business/2011/04/22/56/0501000000AEN20110422001200320F.HTML









Crops & Grains


Demand for corn falls (Contd)

The government report suggests the high prices

are finally curbing demand, at least overseas.

Corn exports are likely to decrease by about 3 mio

bushels a week until August. The bulk of

U.S. corn exports go to the overseas livestock

industry, where it is used as a feed. With corn

getting so expensive, ranchers and feed suppliers

cut back their orders and are substituting cheaper

wheat rations for corn.

Corn is used to feed cattle, pigs and chickens and

is a major ingredient in cereals and soft drinks.

But it can take months for high crop prices to

work their way to grocery-store shelves. That‘s

because food processors and grocers are slow to

pass on the savings to consumers after to food

industry swallowed higher costs for months.

(lubbockonline.com May 14 2011)

Cargill's Truvia Now no.2 Sugar Substitute

Truvia, Cargill's no-calorie sweetener made from

the stevia plant, recently surpassed Sweet 'N Low

to become the no. 2 sugar substitute in the

country, according to AC Nielsen. The

two-year-old brand had a 12.8% share of tabletop

sugar substitute sales in U.S. food/mass/drug

retailers for the four weeks ending

March 19, 2010 -- still small next to Splenda's

approximately 60%, but growing by leaps and

bounds. Truvia surpassed Equal's share of the

substitutes market last year, and is now in more

than 5 mio U.S. households, according to Nielsen.

(Continued in next column)

Cargill's Truvia Now no.2 Sugar Substitute (Contd)

The brand's tabletop sales grew by 79% last year,

making it a USD 46 mio business, according to

Zanna McFerson, assistant VP and business

director for Truvia.

Among natural sugar substitutes-a rapidly

growing field of stevia-based sweeteners that

includes PureVia made by a subsidiary of Equal

parent Merisant (developed in partnership with

PepsiCo) and Sun Crystals by Splenda maker

McNeil Nutritionals, to name just two -- Truvia

commands a 66% share, McFerson reports.

Putting the market in perspective,

Mintel International estimated that U.S. sales of

stevia based sweeteners surpassed USD 95 mio in

2009, and could exceed USD 2 bio by the end of

2011. And the tabletop side of the balance sheet is

the tip of the iceberg, compared with the market

for sweeteners for prepackaged foods and

beverages.

A Freedonia Group sweetener analyst recently

told Fast Company that market is worth

trillions annually on a global basis. Cargill -- the

USD 108 bio, privately held agri-giant that counts

high-fructose corn syrup among its innumerable

products and businesses - doesn't reveal its

revenues from use of Truvia in foods and

beverages.

However, it reports that Truvia rebiana is now an

ingredient in more than 30 food and beverage

products, including Glaceau Vitaminwater Zero

(2010 sales: USD 93 mio), Coca-Cola Sprite

Green, YoCrunch 100 Calorie Packs, Kraft

Crystal Light Pure (first-year sales for 2010:

nearly USD 14 mio) and

Minute Maid Pomegranate Tea. (mediapost.com

April 04 2011)

http://www.google.com/url?q=http%3A%2F%2Flubbockonline.com%2Fagriculture%2F2011-05-14%2Fdemand-corn-falls-could-slow-food-inflation&sa=D&sntz=1&usg=AFQjCNHbCFtjgxDGQwdzVwl7-j5Ra-lSjw



http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=149786






Iowa companies named in ‘corn sugar’ lawsuit

Several companies Integral to Iowa‘s agricultural

economy have been named as defendants in a

lawsuit brought by three sugar producers who are

upset by a new marketing pitch for high-fructose

corn syrup that labels the product as ―corn sugar.‖

Those companies named as defendants are

Archer Daniels Midland Co. (ADM), Cargill Inc.,

Corn Products International Inc.,

Penford Products Co., Roquette America Inc.,

Tate & Lyle Ingredients Americas Inc. and the

companies marketing and lobbying organization,

the Corn Refiners Association Inc.

The suit, which was filed in U.S. District Court in

Los Angeles, was brought by the

Western Sugar Cooperative, Michigan Sugar Co.

and C&H Sugar Company Inc. and seeks to end

the corn industry‘s marketing campaign, establish

corrective marketing and collect damages for false

advertising. The Corn Refiners Association

petitioned the U.S. Food and Drug Administration

to allow manufactures the option of using ―corn

sugar‖ as an alternative name for high-fructose

corn syrup — a moniker that has been tarnished in

recent years as a link to obesity and other health

complications.

Independent research, according to the

organization, indicated that despite the fact that

high-fructose corn syrup and table sugar contain

approximately the same amount of fructose,

nearly 58% of respondents believed high-fructose

corn syrup has more fructose than other table

sugar.

The term ‗corn sugar‘ succinctly and accurately

describes what this natural ingredient is and

where it comes from — corn,‖ said

Audrae Erickson, president of the Corn Refiners

Association, in a September 2010 press release

about the government petition for the alternative

name. (Continued in next column)

Iowa companies named in ‘corn sugar’ lawsuit (Contd)

The Western Sugar Cooperative, which represents

American sugar beet producers, argues that the

stunt is false advertising and contends that if the

public had a bad perception of the product,

high fructose corn syrup, then the product should

have been improved or benefits should have been

better explained.

But the battle over use of the word ―sugar‖ comes

at a time when the general public is hearing the

call of some nutritionists and health care experts

who are warning that all such substances — beet

and sugar cane sugar, both white and brown, and

high-fructose corn syrup are ―toxins‖ or

―poisons.‖ But the controversy surrounding sugars

has been ongoing for at least three decades, and is

probably one of the primary reasons, other than

manufacturers‘ cost, that high-fructose corn syrup

became so prevalent. (iowaindependent.com May

03 2011)

Cargill plans to convert corn wet mill into bio-refinery campus

After purchasing a corn wet mill facility outside

of Fort Dodge in March, the Minneapolis-based

company has since stated its hopes that the former

Tate & Lyle facility shuttered two years ago can

replicate a Cargill-owned bio-refinery campus in

Blair.

Now, after the Iowa Department of Economic

Development has awarded Cargill with USD 2

mio in loans and incentives for the Fort Dodge

facility that could produce up to 115 MM of

ethanol, the state of Iowa should also be hopeful

for some similarities. (Continued on next page)

http://www.sweetsurprise.com/sites/default/files/CRA_CitizenPetition.pdf





http://www.youtube.com/watch?v=dBnniua6-oM











http://www.nytimes.com/2011/04/17/magazine/mag-17Sugar-t.html?pagewanted=all











http://iowaindependent.com/55528/iowa-companies-named-in-corn-sugar-lawsuit






Cargill plans to convert corn wet mill into bio-refinery campus (Contd)

Nicole Reichert, Senior Communications

Counselor for Cargill Corn Milling North

America said, ―The corn wet ethanol plant will

provide the base load corn grind and we hope to

grow additional bio-based businesses at the site in

the coming years.‖

At the Blair facility, Cargill has partnered with a

number of other industry leaders including

Novozymes, Evonik and also a Cargill-owned

bio-plastics facility, Natureworks LLC, to

produce a wide range of products, from

bio plastics to animal feed additives and catalysts.

The ―over the fence‖ (OTF) experience Cargill

has gained in Nebraska will also correlate to the

success of the Fort Dodge facility, Reichert said.

―By providing a host of services, from starch or

dextrose for the OTF fermentation carbohydrate

source, to steam, to wastewater treatment,‖ she

said, ―the OTF model has proven successful in

allowing our plants to run more consistently at a

larger scale and for the customer to enjoy the

economies of scale, which come with being part

of a shared manufacturing base.‖

The plan is to produce a wide range of products

similar to those produced in Blair and Eddyville,

but the new facility will not produce corn-based

sweeteners or industrial starch.

(ethanolproducer.com April 29 2011)

China levy anti-subsidy duties on EU potato starch

EU Business reports that China would levy

anti subsidy duties of up to 11.19% on imports of

EU potato starch. The commerce ministry said

that importers of potato starch will have to pay a

deposit based on the alleged European Union

subsidy rates of 7.7 to 11.19% of the import price.

The statement also says that French starch

producers Roquette and Avebe of the Netherlands

are affected by the decision. (Continued in next

column)

China levy anti-subsidy duties on EU potato starch (Contd)

The taxes are to be imposed on top of

anti dumping duties of 12.6 to 56.7% which the

ministry started to levy from last month, remarks

EU business.

The European Commission announced its final

ruling to impose countervailing tariffs, ranging

from 4 to 12%, and anti-dumping duties of 8 to

35.1% on Chinese coated fine paper. The move

"severely hurt the interests of Chinese

enterprises," Chinese commerce ministry

spokesman Yao Jian said. "China is strongly

discontent with the EU's wrong decision and

firmly opposes it", he said.

EU-China trade has exploded in recent years,

making the EU the top destination for Chinese

exports, while China is the Europe's

second biggest trade partner after the United

States. (finchannel.com May 16 2011)

Vitamins may hitch a protected ride on corn starch

Vitamins and medications may one day take rides

on starch compounds, creating stable

vitamin enriched ingredients and cheaper

controlled-release drugs, according to Penn State

food scientists. The technique may offer drug and

food companies a less expensive, more

eco-friendly alternative in creating, among other

products, medications and food supplements. In a

series of experiments, researchers formed pockets

with corn starch and a fatty acid ester to carry

oil soluble vitamins such as vitamin A and

vitamin C, into the body, according to Gregory

Ziegler, professor of food sciences.

To form the pocket, the researchers, who released

their findings in a recent issue of Carbohydrate

Polymers, used a type of corn starch called high

amylose maize starch. (Continued on next page)

http://www.ethanolproducer.com/articles/7721/cargill-plans-to-convert-corn-wet-mill-into-biorefinery-campus



http://finchannel.com/Main_News/Economic/87040_China_levy_anti-subsidy_duties_on_EU_potato_starch/






Vitamins may hitch a protected ride on corn starch (Contd)

When amylose comes into contact with fatty acids

esters of vitamin A, for example, it creates a coil

with an internal wall that repels water --

hydrophobic -- and an exterior wall that attracts

water -- hydrophilic. The oil-soluble molecules

automatically move into the coil that encapsulates

the medication or vitamin.

The pharmaceutical industry uses other

ingredients and techniques to create inclusion

complexes, Ziegler, professor of food sciences,

said. For example, cyclodextrin complexes --

doughnuts of sugar molecules -- form in a similar

way to deliver controlled-release substances, such

as Ibuprofen. Ziegler said that because the cavity

in starch is a different size than that of

cyclodextrin, it can increase the size range of

molecules that can be encapsulated

(theindependent.com May 15 2011)

Xylitol for Antimicrobial, Cosmetic Preservative

Xylitol—natural sugar alcohol derived from

plants, fruits and vegetables—has antimicrobial

activity and could be considered as an alternative

preservative for cosmetic formulations.

Researchers aimed to evaluate the antimicrobial

effectiveness of C-8 xylitol monoester, for its use

as a preservative in cosmetic formulations. The

minimum inhibitory concentration (MIC) was

determined by the broth macro dilution method,

and the antimicrobial effectiveness of C-8 xylitol

monoester was determined by using challenge test

method

The results obtained in the determination of MIC

were between 1% and 1.25% for

Staphylococcus aureus, Escherichia coli and

Candida albicans and between 1% and 1.5% for

Pseudomonas aeruginosa and Aspergillus niger.


Xylitol for Antimicrobial, Cosmetic Preservative (Contd)

The amount of 1% of C-8 xylitol monoester was

added to the lotion used in the challenge test,

observing a rapid decline in the number of CFU/g

in stages of evaluation after contamination of the

product by all bacteria. The same occurs in

relation to C. albicans, which showed a 90%

reduction in the number of CFU/g. Regarding

A.niger, a similar reduction was observed when

pH value of the lotion was adjusted from

5.5 to 7.0. (insidecosmeceuticals.com May 11

2011)

Ethanol merits federal support

Bob Vander Plaats, leader of an Iowa group that's

pressing GOP presidential candidates to hew to

conservative stands on social issues, was put on

the spot on federal bio-fuel policy at a tea party

news conference, after a leader of the movement

took a swipe at ethanol subsidies.

William Temple, who will be chairman of a tea

party national convention this fall in Kansas City,

Kan., said Congress was borrowing money in part

to "buy up a third of the U.S. corn croporation for

ethanol subsidies that spike food prices for the

world's poor." He demanded that House

Republicans force deep cuts in spending by

resisting an increase in the debt limit.

Vander Plaats said that the federal government

should support all forms of domestic energy and

that "ethanol is a piece of that."

The existing ethanol subsidy, 45 cents a gallon, is

worth USD 1.7 bio to Iowa's industry at its current

production capacity of 3.7 bio gallons/year. The

state also benefits from the impact that subsidies

and federal ethanol mandates on refiners have on

corn and soybean prices. (desmoinesregister.com

May 10 2011)

http://www.theindependent.com/articles/2011/05/15/news/ag/13347247.txt






Strategic Review of Corn Starch Industry & Markets - Starch Derivatives, Sweeteners & Co Products

Several developed economies globally remain in

recession and as the recession ends there will be

great opportunities for starch processing industry

especially to fulfill the demands of new

developing economies in Asia, South America

and Africa.

During mid-2010, finally National Starch Food

division found an acquirer in Corn Product

International. National will be managed as an

independent business unit. Recent demand on

starch from ethanol has greatly enhanced the

margins including HFCS.

In the US, HFCS demands declined significantly

in the past 3 years accounting for a drop of 11%

due to concerns of obesity and glycemic trends

among others. To compete, even the larger food

processors are introducing new extensions to their

lines claiming no fructose. From the company

point of view with sugar shortage and historical

high sugar prices, HFCS position will not erode

further significantly as in the past 3 - 4 years.

The total utilization of dried starch in the world in

2008 was 66.5 mio t (USDA, EU Commission).

Companies estimate for 2010 is 68 mio t with

annualized global growth of 2-3%. They

previously estimated this would reach 70 mio t by

2010; they missed this mark by 2 mio t manly due

to slowdown in US and EU.

China had the biggest growth with 17.5 mio t

production and has surpassed US with 13 mio t

for dry starch and fermentation; not including

sweeteners and alcohol. The US , EU and Japan

has lower growth of 2% per year, EU at 2%, and

Japan at 1-2%; in China and India the growth is

strong as expected to be 4-5 %


Strategic Review of Corn Starch Industry&Markets Starch Derivatives, Sweeteners & Co-Products (Contd) The rest of the world grows at 3-4%. Both the

US and EU will have to compete for this growth

in China, India, other regions the rest of the world

grows at 3-4%. Both the US and EU will have to

compete for this growth in China, India, other

regions. There are only few starch processors left

in the US and even ADM and Cargill are

positioning themselves in EU and Asia.

National Starch remains a dominant specialty

player in the US. Cassava in South East and South

Asia and Central America will become more

dominant starch commodity as more production

technology is deployed. Cassava is 7.5 % of world

starch. This figure will have been rising faster as

China, India, South America and SE Asia

continue to improve their production. Above

values do not include corn utilization for dry corn

ethanol which more than double of corn used for

corn wet milled derivatives.

US corn production for 2009 was 13.2 bio bushel

a record vs. previous record of 13 bio bushels of

2007; it is due to increase demands for corn

ethanol by the dry corn milling plants. Farmers

planted 90 mio acres of corn compared to 79 mio

acres during 2009. According to RFA (Renewable

Fuel Association) and other reports, right now

there are 178 corn ethanol plants in operations and

24 plants under construction and 10 expansions of

current operations; these include 11 wet mill

operations. (sbwire.com April 29 2011)

GIRACT

2nd Starch Forum

Based on the success of our first Starch

Forum, one of its kind in India, we propose to

launch the 2nd Starch Forum to be held on

October 3, 2011 in Mumbai. Details on the

following page.

http://www.sbwire.com/press-releases/sbwire-91192.htm



FORUM, India(venue to be announced)

MUMBAI, OCTOBER 3, 201118h15 to 20h00

GIRACT CONSULTANCIES INDIA PRIVATE LIMITED Tel: 91 422 420 4270

1420, Trichy Road, Coimbatore 641018 [email protected]

Note: It may be necessary for reasons beyond the control of the organisers to alter the content and/or timing of the agenda

Transnational Business Research & Consultancy

GIRACT

AGENDA

18h15 Registration/ Refreshments

18h25 Welcome and opening remarks R. Badrinath, Project Manager

GIRACT Consultancies India Pvt Ltd

18h30 Introduction

V. Krishnakumar, Managing Director

GIRACT, Geneva, Switzerland

18h40 Sustainability in the supply of starch

Speaker from a leading Pharmaceutical/Paper company

19h05 Recent amendments in FSSAI on modified starch

Speaker from FSSAI

19h30 Global trend in modified starch Industry

Speaker from a leading European/Asian starch company

19h55 Summing up and Conclusion

20h00 Buffet dinner and Networking

Geneva, Switzerland

The starch industry has faced numerous challenges and opportunities from other commodities like

emulsifiers and fine chemicals. Based on the success of our first Starch Forum, one of its kind in India,

we aim to bring together a working group from the starch industry (end users, suppliers, distributors,

R&D institutions, Government organizations and analysts) with paper and pharma being one of the

frontiers for growth in India, in order to:

offer an interactive forum for identifying common opportunities and threats in paper and pharma

discuss recent industry developments and their future, with particular focus on the potential for starch

obtain relevant views from eminent speakers from India and other major starch stake holders.

GIRACT has more than 30 years experience in

conducting landmark studies for the global starch

and derivatives market and is recognized as a

leading reference in this sector.

Its nine Starch Conferences held successfully in

Geneva, Switzerland have brought together all the major companies in the industry.

2ND STARCH FORUMINDIAN STARCH & STARCH DERIVATIVES INDUSTRY

UNLEASHING THE POTENTIAL




Potato research tackles starch content and pests

New research projects aim to modify potato starch

content to improve nutritional benefits and to

reduce the effect of the crop's major pathogenic

threat, Sean Ottewell reports.

World production of potatoes stands at about

320 mio t/year, but late blight remains an ongoing

challenge. Caused by a fungus-like microbe, this

disease is difficult and economically challenging

to eradicate. It was largely responsible for the

Irish potato famine of the mid-19th century.

Today the cost of the disease is estimated at more

than EUR 5 bio/year, easily enough to drive

farmers out of business and increase food prices.

Howard Judelson at the University of California,

Riverside, has received a USD 9 mio

(EUR 6.2 mio), five-year grant from the United

States Department of Agriculture, National

Institute of Food and Agriculture USDA-NIFA to

research late blight and ensure a sustainable and

long-term control of this devastating disease.

"More than 40% of current crop production

among the top ten food crops is lost to pests and

diseases annually and that is a huge loss for

farmers," said Cathie Woteki, USDA under

secretary for research, education and economics.

"USDA is funding this project to help agricultural

producers win the future by ensuring our country

can keep producing the food needed to meet rising

global demand in a sustainable way."

"This grant to Dr Judelson builds on historic

UC Riverside strengths in research on this

pathogen and is one more acknowledgement that

UC Riverside is a leader in agricultural research,"

said Donald Cooksey, divisional dean for

agriculture and natural resources in UCR's

College of Natural and Agricultural Sciences.


Potato research tackles starch content and pests (Contd) "By leading research on managing late blight, we

will help protect the productivity of potato

farmers worldwide."

The research project will focus on providing

growers with better tools for managing the

disease. (scientistlive.com May 25 2011)

Petrobras says gasoline, ethanol prices to fall

Ethanol and gasoline prices in Brazil are likely to

continue falling as the sugar harvest gets

underway, a senior executive at the

government run oil company, Petroleo Brasileiro

SA (PBR, PETR4.BR), or Petrobras, said.

Brazil's government mandates that one quarter of

gasoline sold at the pump is ethanol, so declining

prices for the cane-based product alleviate all fuel

prices, said Jose Lima de Andrade Neto, head of

Petrobras' distribution unit, BR Distribuidora.

"Ethanol prices continue to fall and therefore the

prospect is for gasoline prices to fall further,"

Lima said.

Ethanol costs have fallen to between

1.25 and 1.30 Brazilian reais (USD 0.77 and

USD 0.80)/liter, having peaked at BRL 2.70 in

recent months, Lima told reporters on the

sidelines of a conference

He denied that prices had been cut because of any

ministerial decision.

Petrobras seeks to keep gasoline prices steady by

ironing out international oil price volatility,

absorbing losses when the price is high and

making more money when global oil prices fall.





Petrobras says gasoline, ethanol prices to fall (Contd)

But the surge in ethanol prices is harder to

control, and had pushed up overall gasoline prices

because of the mix.

Government ministers had vowed to force

Petrobras to bring down prices, but Lima said

they came down naturally as the sugar-cane

crushing season got underway in April.

Meanwhile, fuel consumption continues growing

in Brazil. In the first quarter, fuel consumption

rose 5%-6% over the first quarter 2010, a faster

pace than overall economic growth, he said.

More consumers are moving into the middle class,

which means more are buying cars and travelling

by airplane, he said.

Aviation fuel consumption grew 14% to 15% in

2010 over 2009, he said. (marketwatch.com

May 19 2011)

Fungus process makes ethanol production more efficient Hans van Leeuwen of Iowa State University is

leading a research team that has developed a

process that uses a fungus to make a high-protein

animal feed from the leftovers of ethanol

production.

Growing Rhizopus oligosporus fungus also

cleans the water used in the ethanol

production process so that it can be recycled

back into fuel production. The process, called

MycoMeal, could one day produce a low-cost

nutritional supplement for people.

For every gallon of ethanol produced, there

are about 5 gallons of leftovers known as

stillage. The stillage contains solids and other

organic material. Most of the solids are

removed by centrifugation and blended with

dried distillers grains that are sold as livestock

feed, primarily for cattle. (theengineer.co.uk

May 23 2011)

http://www.theengineer.co.uk/sectors/energy-and-environment/news/fungus-process-makes-ethanol-production-more-efficient/1008750.article








Composite Technical Services Introduces Polycard XFN Bio-Based Polyols Composite Technical Services (CTS) has

introduced Polycard XFN, a new class of

bio based polyols designed to improve the

physical properties of applications like bio-based

rigid spray foams, sandwich panels and

pour in place insulation systems

CTS say that Polycard‘s polyols exhibit high

thermal stability and have also demonstrated the

capability to enhance compressive strength,

increase fire retardancy and improve dimensional

stability. Polycard permits manufacturers to

increase the amount of renewable content in

end products like foams.

CTS developed Polycard with Italian partner

Cimteclab to meet the demand for a low-cost

renewable resource-based raw material without

the supply restraints of conventional polyols or

the environmental issues associated with

petroleum-based organic compounds.

Polycard is made from cashew nutshell liquid

(CNSL) using solvent-free technology. CNSL, an

abundant agricultural by-product, is considered an

industrial waste stream making the material less

sensitive to changes in food and oil prices. The

flexibility of Polycard‘s chemical structure allows

the material to be modified into other polyol

structures suited to the polyurethane and

composite industries. (netcomposites.com

May 20 2011)

ADM expands South American operations

Archer Daniels Midland Co. is building a new

port terminal in Uruguay to export corn,

soybeans, wheat and soybean meal from

South America to markets in Europe and

elsewhere. The agribusiness conglomerate said

the port terminal will be located at Nueva Palmira

and will export crops to Asia, Latin America and

Africa as well as European markets. "ADM

continues to invest in South America as we

expand the size and reach of our processing and

transportation operations in the world's key

agricultural regions," Domingo Lastra, president

of Archer Daniels Midland South, said in a

statement.

The company said construction will begin

immediately on the port terminal, which should be

completed in about two years. Global supplies of

corn, wheat and soybeans remain at historically

low levels because growing demand is

outstripping supplies. Prices for all three grains

have risen this year, nearly doubling in the case of

corn and wheat.

Archer Daniels Midland and other companies

have been beefing up their operations in South

America, where land is relatively cheap and crop

production is on the rise.

The company's new port will be able to store

180kt of crops. It is expected to handle 2.8 mio t

of grain and soybeans in its first year of operation,

and will employ about 100 people. Shares of

Archer Daniels Midland fell 27 cents, or nearly

1%, to close at USD 31.49. (chicagobusiness.com

May 20 2011)

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.

http://www.netcomposites.com/newspic.asp?6684



http://www.chicagobusiness.com/article/20110519/NEWS05/110519821/adm-expands-south-american-operations



GIRACT

Sweeteners & Starch Price Monitoring Quarterly Price Review of Starches, their derivatives and Sugar in Key World Markets Now in its 11th 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 Because this is an efficient mechanism to remain abreast of developments Because this monitoring programme has been endorsed by key industry players including ADM, Avebe, BASF, Cargill, CPI, Danisco, GEA, Grain Processing, Lyckeby, Novartis, Novidon, Unilever, … Because Giract is well-known for its in-depth analyses of the world starch and sugar industries over the last 30 years. 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<20 DE 63-65 DE 40-42 42% Maize Wheat Potato Tapioca Starch*

Starch

food grade+ Sugar

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

How do you subscribe to this Price Monitoring ? By simply filling in the form below and returning it to us or subscribing online at www.giract.com.

Name ______________________________________ Company __________________________________________

Address ______________________________________ Zip/City __________________________________________

Country ______________________________________ E-mail __________________________________________

Tel ______________________________________ Fax __________________________________________

O I would like to receive 4 issues (one year): subscription EUR 1680 O I would like to receive 8 issues (two years): subscription EUR 3050

For more info, contact V. Krishnakumar GIRACT Tel: + 41 22 779 0500 24 Pré Colomb Fax: + 41 22 779 0505 1290 Versoix/Geneva email: [email protected] Switzerland www.giract.com 02-11-1




Company News

DSM, Roquette to build commercial scale succinic acid project in Italy The so-called fossil-age will make a shift to the

bio-based-economy. In two or three centuries

from now, people will look back on our

civilization as a merely brief moment in history

where we in a period of just about 250 years

shifted our total economy to coal, oil and gas. To

make the shift back to living with, and especially

off, nature, we need to start this shift now. We are

at a turning point towards a next green industrial

revolution to secure our feed and fuel needs in the

future.‖

With those words, Feike Sijbesma, CEO of DSM,

accepted the George Washington Carver award

for innovation in biotechnology at the BIO World

Congress on Industrial Biotechnology, as he

announced that DSM and Roquette Frères will

build a commercial scale plant for the production

of bio-based succinic acid. With a capacity of

about 10kt/year, the plant will be Europe‘s largest

bio-based succinic acid facility. It is expected to

come on stream in H2 2012 and will be built on

the premises of Roquette in Cassano Spinola

(Italy). Financial details of the investment will not

be disclosed

Succinic acid is a chemical building block used in

the manufacture of polymers, resins, food and

pharmaceuticals among other products. Bio-based

succinic acid, a renewable and versatile chemical

building block, is an alternative to

petroleum derived chemical building blocks such

as adipic acid and 1.4- butanediol. As a result of

price competiveness and its renewable nature,

bio based succinic acid is addressing a larger

market than fossil feedstock based succinic acid.

The commercial scale bio-based succinic acid

plant is another important step in the successful

cooperation between DSM and Roquette that

started in 2008. (Continued in next column)

DSM, Roquette to build commercial scale succinic acid project in Italy (Contd)

Early 2010 DSM and Roquette opened a

demonstration plant in Lestrem (France), which

has been running at full capacity. In 2010

DSM and Roquette also announced their intention

to establish a joint venture (which will be carrying

out business under the name Reverdia) for their

cooperation, subject to regulatory approval.

The new commercial production facility in Italy

will be producing fermentation based bio-succinic

acid. The proprietary yeast-based fermentation

process, which operates at a much lower pH than

competing processes, allows succinic acid to be

produced with a significantly higher energy

efficiency compared to the traditional method.

It is also one of the first bio-based processes that

sequesters carbon dioxide in the production

process. The new production facility will for the

time being use starch derivatives as feedstock. In

the longer term the aspiration is to switch to

second generation feedstock (cellulosic

biomass.(biofuelsdigest.com May 10 2011)

ADM starts bio-propylene glycol unit

Archer Daniels Midland Co. has opened a facility

for bio-based propylene glycol in Decatur. The

facility started operations in late March, according

to ADM, and is now producing industrial-grade

propylene glycol.

The company hopes to increase the plant‘s

capacity over the next few months, adding the

production of propylene glycol, which meets USP

(US Pharmacopeia) specifications.


http://biofuelsdigest.com/bdigest/2011/05/10/dsm-roquette-to-build-commercial-scale-succinic-acid-project-in-italy/





Company News

ADM starts bio propylene glycol unit (Contd)

Paul Bloom, business director of Industrial

Chemicals, said, ―Company will be piloted with

the necessary design modifications, reviewed and

updated our operational safety program and then

implemented the improvements at scale to bring

the facility online in late March, because ADM is

committed to safely producing high-quality,

biobased propylene glycol, we took time to ensure

our facility was getting the right results, the right

way.‖

The facility has also produced certified kosher

glycerin, which meets USP specifications since

April 2009. (plasticsnews.com April 21 2011)

ADM to acquire Prairie Pride soy crush and biodiesel plants

Decatur, Ill.-based agribusiness firm, Archer

Daniels Midland Co. has agreed to acquire a

soybean crushing facility and 30 MMgy biodiesel

production plant from Prairie Pride Inc. in

Deerfield, Mo. ADM will also form a partnership

with PPI for the biodiesel portion of the business.

PPI responded to ADM‘s acquisition of its soy

crushing and biodiesel production assets, stating

―Earlier this year, in conjunction with a division

of General Electric, we worked to find partners

and potential purchasers of the crush and

biodiesel facilities. After a bidding process

conducted by GE, ADM has agreed to purchase

the debt held by GE and will become our primary

creditor. (Continued in next column)

ADM to acquire Prairie Pride soy crush and biodiesel plants (Contd)

Not only has ADM offered to infuse more capital

into the crush and biodiesel facilities, they also

have requested that Prairie Pride participate

alongside ADM in the future of the biodiesel

facility.‖

Al Decker, treasurer of PPI‘s board of directors,

told Biodiesel Magazine that the biodiesel plant

ceased production in February last year and has

sat idle prior to ADM‘s stepping in with the

acquisition. Decker said the company had spent

over a year working for a solution to resume

operations, but the company became financially

distressed, citing the lapsed tax credit as the

primary culprit behind the decision to halt

production

The Deerfield biodiesel plant broke ground for

construction in 2006 and began producing

biodiesel in 2007. For ADM, the acquisition of

PPI‘s soy crush and biodiesel production assets

was attractive because it further highlights the

company‘s growth strategy in the U.S. and

internationally

―ADM‘s growth strategy involves expanding the

volume and diversity of crops that we source and

process; expanding the reach of our origination,

transportation and processing assets and

expanding our value-added product portfolio,‖

ADM said in an email correspondence. ―The

Prairie Pride facility will increase our North

American crush capacity and it fits well within

ADM‘s integrated business model.‖

Alan Willits, president of Cargill Corn Milling

North America, said the company believes the

facility will fit well into its bio-product portfolio

when the acquisition was announced, and Iowa

Governor Terry Branstad praised Cargill‘s

investment in the state, noting the 100-plus jobs

the new facility is expected to create.

(ethanolproducer.com April 29 2011)

http://www.plasticsnews.com/headlines2.html?id=21755








Company News

Tate and Lyle, Electrocomponents We have become used to companies grumbling

about rising raw material prices, but those

grumbles are often music to the ears of food

ingredients firm Tate & Lyle.

In a trading update at the end of March the

company said that operating performance over the

company‘s full year had been in line with market

expectations, save for the company receiving a

late boost to co-product income from the rise in

corn prices. That sent investment analysts

scurrying to revise their earnings estimates, and

market consensus is now for profit before tax of

GBP 247.7m on sales of GBP 2.6bn. Credit

Suisse thinks those estimates might still

undervalue the corn price boost; the Swiss bank is

forecasting profit before tax of GBP 255m.

―With another 2 months trading behind us [since

the March update], we believe the outlook for

2011/12 is probably a bit better now as well. US

starch volumes are robust, by-product credits

remain strong, exports to Mexico continue to

offset US HFCS declines and European sweetener

prices are rising with the EU sugar price,‖

Credit Suisse said.

Broker Charles Stanley is expecting

Tate & Lyle‘s Bulk Ingredients business, which

accounts for around 70% of group sales, to have

had a strong year but thinks the market might be

more interested in what new boss Javed Ahmed

has to say regarding the outlook for the Speciality

Food Ingredients business; the division only

accounts for 30% or so of group sales but 555 of

EBIT. ―We look for robust volume growth across

divisional product categories and will be

interested in what Tate has to say regarding

prospects for operating margins both on fixed and

multi-year contracts.


Tate and Lyle, Electrocomponents (Contd) These results should provide investors with an

update on the ‗Focus, Fix, Grow‘ strategy and

perhaps greater clarity regarding the way forward

in Speciality Foods,‖ the broker said. Electronics

and maintenance products supplier Electrocompo

nents upped full-year profits guidance at the

beginning of April, but Singer Capital Markets

thinks profits might still come in ahead of

expectations. Market consensus is for pre-tax

profit of GBP 113.5 mio on sales of GBP

1.17 bio.

―For the full year to March 2011, we are

anticipating revenue of GBP 1 151 mio, up 18.4%

on 2010, gross profit of GBP 539 mio up 15%,

with operating profit of GBP 120.4 mio, up 52%,

highlighting the operational gearing implicit in

distributors. We are anticipating a gross margin of

46.8% for the year, in line with the first half, as it

appears that the company has finally arrested the

constantly declining margin that was a feature of

the company for a number of years,‖ Singer said.

As for profit before tax, ―we are forecasting

growth of 54% to GBP 114.4 mio, vs a consensus

of GBP 113.5 mio and a narrow range of

GBP 110.6 mio to GBP 115.4 mio. We expect

EPS [earnings per share] to grow 53% to 17.9p,

with a maintained DPS [dividend per share] of

11p. Full year net debt should be around GBP

147.9 mio, down from GBP 172.1 mio a

year ago,‖ the broker added. Charles Stanley,

however, thinks market consensus is a little on the

optimistic side and predicts profit before tax of

GBP 113 mio, EPS of 18p

and a full-year divi of 11p.




Company News

Tate and Lyle, Electrocomponents (Contd) Charles Stanley also downplays the effect of the

Japanese earthquake. ―The business in Japan (3%

of group sales) was not directly affected by the

earthquake and current sales are running at similar

levels to last year,‖ the broker said.

―Products sourced from Japan for sale around the

rest of the group account for another 3% of sales.

Any disruption should not have any material

impact on the group as it sources products from

some 2 500 global suppliers,‖ Charles Stanley

noted. (sharecast.com May 27 2011)

DuPont building up biotech

Wilmington's DuPont Co. doubled down on

biotechnology last week, completing its

USD 6.4 bio bid for Danish enzymes firm

Danisco and beginning the process of combining

the two companies.

With the Danisco purchase, DuPont moves yet

further away from its storied history in explosives

and commodity chemicals and further into what

may be considered a third era for the 209-year-old

Delaware company -- this one defined by

biotechnology.

DuPont is already a force in agricultural biotech

through its ownership of Pioneer Hi-Bred

International, a USD 5.3 bio Iowa firm that sells

genetically altered soybean seeds.

DuPont purchased Pioneer for USD 7.7 bio in

1999, in its last major acquisition. Architects of

the Danisco deal say the addition of the

Copenhagen-based company makes DuPont a

major player in industrial biotechnology and will

bolster efforts to produce materials from

renewable sources like corn starch and soy.


DuPont building up biotech (Contd) Danisco, which makes food ingredients and

additives, also markedly strengthens

DuPont's food business. Its addition will create a

standalone USD 3 bio nutrition and health

segment.

"We would call this a strategic acquisition," said

Craig F. Binetti, a DuPont president who will lead

the newly created nutrition and health business.

DuPont completed its purchase of Danisco after a

five-month-long public negotiation with holdout

shareholders. According to company statements in

January, when DuPont launched its bid, the deal

will be financed with debt plus USD 3 bio in

existing cash.

DuPont expects it could cost 45 cents/share in

2011 earnings but add to earnings by next year.

Jefferies & Co. analyst Laurence Alexander, who

follows DuPont, expects Danisco to add

20 cents/share in 2012. Alexander said the

DuPont purchase values the company at

USD 6.89 bio.

Alexander expects integration "should run fairly

well due to the close partnerships over the past

decade." The companies currently partner on a

project to produce ethanol from corn cobs and

switchgrass (delawareonline.com 22 May 2011)

http://www.delawareonline.com/article/20110522/BUSINESS/105220331/DuPont-building-up-biotech?odyssey=tab%7Ctopnews%7Ctext%7CHome








Company News

Bio Fuels

Cargill plans to convert corn wet mill into biorefinery campus

Fort Dodge, Iowa, may be nearly 150 miles away

from Blair, Neb., but Agriculture giant Cargill

Inc. might hope the two areas are close in some

ways. After purchasing a corn wet mill facility

outside of Fort Dodge in March, the

Minneapolis based company has since stated its

hopes that the former Tate & Lyle facility

shuttered two years ago can replicate a

Cargill owned biorefinery campus in Blair. Now,

after the Iowa Department of Economic

Development has awarded Cargill with

USD 2 mio in loans and incentives for the Fort

Dodge facility that could produce up to

115 MMgy of ethanol, the state of Iowa should

also be hopeful for some similarities

―We see an opportunity in Fort Dodge to replicate

the success we have had at our Blair, Neb., and

Eddyville, Iowa, biorefinery campuses,‖ said

Nicole Reichert, senior communications

counselor for Cargill Corn Milling

North America.

―The corn wet mill ethanol plant will provide the

base load corn grind for the facility, and we hope

to grow additional biobased businesses at the site

in the coming years.‖ At the Blair facility, Cargill

has partnered with a number of other industry

leaders including Novozymes, Evonik and also a

Cargill-owned bioplastics facility,

Natureworks LLC, to produce a wide range of

products, from bioplastics to animal feed

additives and catalysts

The ―over the fence‖ (OTF) experience Cargill

has gained in Nebraska will also correlate to the

success of the Fort Dodge facility, Reichert said.

―The OTF model has proven successful in

allowing our plants to run more consistently at a

larger scale and for the customer to enjoy the

economies of scale, which come with being part

of a shared manufacturing base.‖ (Continued in

next column)

Cargill plans to convert corn wet mill into biorefinery campus (Contd)

While she did not give specifics on what Cargill

has planned for the facility in Fort Dodge, she did

say that the company will work to increase the

efficiency of the facility. And, she said, ―Cargill

anticipates making a series of additional

investments to develop this facility into a

biorefinery complex.‖ The plan is to produce a

wide range of products similar to those produced

in Blair and Eddyville, but the new facility will

not produce corn-based sweeteners or industrial

starch.

China Set to Increase Use of Biofuels

China can become a leader in the production of

second generation (2G) biofuels, made from

agricultural waste instead of foodstuffs, such as

sugar, starch and vegetable oils said a senior

executive from one of the industries' leading

companies. That's as the nation attempts to

improve energy efficiency and reduce reliance on

fossil fuels. "The United States is the biggest

producer of first-generation (1G) biofuels.

Regarding 2G production, no other country has

shown leadership, so maybe China will move

faster on this because it has been put on the

political agenda," said Michael Christiansen,

President of Novozymes (China) Investment Co

Ltd, referring to the nation's 12th Five-Year Plan

(2011-2015). Christiansen made the remarks in

an exclusive interview with China Daily on

April 15 at Boao, a small town on the east coast of

Hainan province, where he was attending the

annual "Forum for Asia" conference.




Bio Fuels

China Set to Increase Use of Biofuels (Contd)

The Denmark-based Novozymes is the largest

provider of industrial enzymes and market leader

in enzyme technology for biofuels. Christiansen

said Novozymes has a market share of about 50%

in China in 1G biofuel production, but more

opportunities will be created as the nation's new

Five-Year Plan places a heavy focus on

2G production, although detailed plans are not yet

available. Global biofuel consumption will

increase from the current level of 55 mio t of oil

equivalent - the amount of energy obtained by

burning one standard barrel of oil - to 750 mio t in

2050.

Meanwhile, over the same period, the proportion

of biofuel used in the transportation-fuel market

will rise from 2% to 26%, with 2G biofuels

accounting for roughly 90% of all biofuels used,

according to a report by the International Energy

Agency.

By developing 2G technology, China can reduce

the import volume of crude oil, and reduce CO2

emissions by 90% from current levels, he said. `

"It fits perfectly with China's next Five-Year Plan

to reduce inefficiency."

The nation has announced plans to reduce CO2

emissions by 40 to 45% by 2020. It's expected

that energy consumption of non-fossil fuels could

account for more than 11% of the country's total

energy consumption by 2015. Christiansen

suggested that between 2.4 and 2.8% of China's

total energy consumption could be produced from

biomass (organic material) by that date. "That's a

big increase compared with the existing situation

five, seven or even 10 times more." Currently,

Chinese annual biofuel production stands at

2 mio t, he estimated.



In addition, 2G biofuel production could benefit

the economy with less effect on food supply and

prices. "1G biofuel has become very popular, but

we worry that if it becomes too popular, too much

food goes into the production of biofuels.

Production of the fuel from agricultural waste will

have a lower effect on food prices."

Food security concerns have led the government

to restrict grain-based ethanol production and to

promote non-grain-based fuel ethanol production

instead, according to a report by the

World Economic Forum (WEF) in June 2010.

In May 2010, Novozymes, China National

Cereals, Oils and Foodstuffs Corporation, and

China Petrochemical Corporation announced the

construction of a 10kt-capacity demonstration

plant for commercial-scale production of

advanced biofuels from corn stover - the leaves

and stalks of maize plants - which will begin this

year. "By the end of 2011, we plan to take the

next step moving from a pilot scale, which is

20 times bigger than what we have today. Then by

2013, we will move to a commercial size, which

will be somewhere between 50 and 100kt," said

Christiansen.

In common with other companies in the industry,

Novozymes is also eyeing China's biochemical

market, he said. In April 2010, Novozymes and

Dacheng Group, a leading corn processer located

in Jilin province, made an agreement to make

plastics from agricultural waste.

The companies have agreed to expand their

cooperation in developing biochemicals derived

from biomass and to promote production of

plant based glycol. Now the two are evaluating

different production methods.




Bio Fuels


Christiansen predicted the company will maintain

an annual growth rate of around 20% in the

biofuel and biochemical business in China over

the next five years. "That's a lot of fantastic

benefits in this. We are in the starting phase of

creating a new industry.

The new ways of producing chemical and fuels

will take time. In five years, we will see a more

mature industry." According to the WEF report,

the conversion of biomass into fuel, energy and

chemicals has the potential to generate upwards of

USD 230 bio for the global economy by 2020.

China's use of biofuel ethanol will reach

12.7 bio liters by 2020, while automotive ethanol

gasoline usage will be 100%, and annual

consumption of biodiesel will reach 2.3 bio liters,

according to the targets set by the National

Development and Reform Commission

(english.cri.cn April 27 2011)

Biofuels can provide up to 27% of world transportation fuel by 2050

A new report from the

International Energy Agency (IEA) says that the

widespread deployment of biofuels can play an

important role in reducing CO2 emissions in the

transport sector and enhancing energy security,

when produced sustainably.

Most conventional biofuels (produced mainly

from starch, sugar and oilseed crops) must

therefore be improved in terms of conversion- and

land-use efficiency to achieve considerable

greenhouse-gas reductions.

In addition, advanced biofuel technologies

currently at the demonstration stage (produced

mainly from lignocellulosic biomass such as

wood and straw), need to be commercially

deployed within the next ten years and will

provide the major share of biofuels in 2050.


Biofuels can provide up to 27% of world transportation fuel by 2050 (Contd) In total, the report assesses the expenditure on

biofuels required to meet the roadmap targets

between USD 11 trillion to USD 13 trillion over

the next 40 years, depending on the actual

production costs. ―This figure may seem large,

but in fact even in the worst case biofuels would

only increase the total costs of transport fuels by

around 1% over the next 40 years, and could in

fact lead to cost reductions over the same period.‖

―With world population growing by more than

30% to 9 bio people in 2050, and food demand

increasing approximately 70% according to

estimates by the Food and Agriculture

Organization of the United Nations, competition

of biofuel production for land with food, fodder,

as well as fiber production needs to be carefully

addressed to avoid negative impacts from biofuel

expansion on food security,‖ said Mr. Diczfalusy

There is a great potential for using low-risk

sources that require limited land expansion, and

should not compete with food production, to

provide feedstock for the expanding biofuel

industry. The report says the use of residues and

high yielding energy crops as feedstocks, and the

efficient use of biomass, for instance through

integrating biofuel and bio-material production

(so-called biorefineries), will be vital to reduce

land competition.

In addition, sustainability certification of biofuels,

following internationally agreed sustainability

criteria, will be an important step towards

ensuring that biofuel production and use have a

positive environmental, social and economic

impact. Around 3 bio t of biomass per year will be

needed in 2050 to produce the amount of biofuels

envisioned in the IEA roadmap.


http://english.cri.cn/6826/2011/04/28/168s634645.htm






Starch Italics Starch Industry overview

Bio Fuels

Biofuels can provide up to 27% of world transportation fuel by 2050 (Contd)

The report assesses that 1 bio t of biomass

residues and wastes would be needed, and this

would need to be supplemented by production

from around 100 mio hectares of land - around

2% of total agricultural land. This would be a

three-fold increase compared with today, but the

yield of biofuels could increase by a factor of 10

through the use of wastes and residues and

through the use of more productive crops and

processes. (bioenergy.checkbiotech.org April 26

2011)

Great Falls ethanol plant clears financing hurdle

A USD 400 mio ethanol plant proposed for Great

Falls has cleared a key hurdle required to qualify

for a loan guarantee from the U.S. Department of

Energy, an official said late this week. Although

the project still is not assured of receiving the

federal loan guarantee, "we have successfully

met" Part II criteria of the program,

Gary Hebener, President of Montana Advanced

Biofuels, announced late this week.

"We have moved to the final due diligence phase

of the process," Hebener said. "While this is

expected to take a number of months as the

Department of Energy brings in additional market

consultants and engineers for a final review, we

are very optimistic."


Great Falls ethanol plant clears financing hurdle (Contd)

The plant, which would be located near

Malmstrom Air Force Base, would provide about

100 manufacturing jobs, and provide hundreds of

temporary jobs during the construction phase,

officials said.

Montana Advanced Biofuels applied for an air

quality permit from the state of Montana April 20.

Hebener said the plant will produce no odors.

Hebener has been working to bring an ethanol

plant to Great Falls for more than 20 years. The

plant would use grain from the region's farmers to

create ethanol for vehicles, gluten and wheat bran

for human consumption, and grain feed for

livestock.(greatfallstribune.com April 30 2011)

Corn ethanol is inefficient and drives food prices higher The United States loves corn. We use it for

everything, from Coca-Cola sweetener to cow

feed to ―plastic‖ cup base. And we grow a lot of

it: about 730 bio pounds in 2010 On par with

America‘s love for corn is its oil addiction—and

over the past 10 years we have combined these

two great infatuations in the form of ethanol, a

biofuel that can be mixed with gasoline to power

cars and trucks.

While the process of making corn ethanol

involves simple fermentation and distillation—not

unlike making whisky or vodka—the impacts of

moving nearly 126 bio pounds of corn off the

table and into the tank are enormous, and

infinitely more complex.

Corn, like any plant, needs sunlight, soil and

water to grow.


http://bioenergy.checkbiotech.org/news/biofuels_can_provide_27_world_transportation_fuel_2050





http://www.google.com/url?q=http%3A%2F%2Fwww.greatfallstribune.com%2Farticle%2F20110430%2FBUSINESS%2F104300304&sa=D&sntz=1&usg=AFQjCNGGGYtoSrmguGlOanL-tvj1iDyUuQ



http://www.cornproducts.com/



Bio Fuels

Corn ethanol is inefficient and drives food prices higher (Contd)

In the United States, it gets myriad additional

inputs: in 2005, farmers applied 10 bio pounds of

nitrogen fertilizer to our nation‘s corn, irrigated

more than 80% of the cropland and sprayed about

170 mio pounds of herbicides and that‘s while the

plants were still in the field.

And unfortunately, that‘s the lowest energy ratio

out there for biofuels. For comparison, Brazil—

the world‘s second largest biofuels producer after

the United States—gets an output ratio of 2 from

their sugar cane ethanol.

Also, studies on net energy output of biofuels are

convoluted and often hard to sift through: while

some say it takes more energy to produce biofuels

than the fuel provides, others say just the

opposite. We‘ll attempt to clarify the situation in

the Nitty Gritty.

While energy ratios give a valuable metric for

comparison, judging the impacts of biofuels—and

their ultimate value as a sustainable fuel source—

is more complex than comparing energy outputs

or piecing together lifecycle analyses.

Corn ethanol has environmental, economic and

social impacts that reach far beyond the gas tank.

And by almost any analysis, those impacts make

it a poor choice for fuel in the United States.

One such negative impact is diverting corn from

food to fuel: the 14 mio acres of corn we used for

biofuels in 2008 could have fed 26 mio cows to

maturity, or have sustained as many as 100 mio

people for a year. Further, choosing to use that

corn for fuel decreased the amount available as

food on the international market and may have

contributed to skyrocketing food prices and

increasing deforestation rates in the Amazon.


Corn ethanol is inefficient and drives food prices higher (Contd)

Even characters in fables are susceptible to

economic incentives, evidently. With the help of

decades of farm subsidies keeping inputs cheap, a

tariff on foreign ethanol, 40% of production costs

being covered by tax dollars, and government

mandates for production, sending corn to the tank

earns famers a lot more money. Is that really our

primary goal from an alternative fuel source?

Almost certainly not, so lets look elsewhere for

fuel and leave the corn for the cola and cows.

(peninsulapress.com April 26 2011)

Next generation of corn products entering market This year, the dedicated efforts of agribusiness,

farmers, biotechnology advocates and others,

including the National Corn Growers Association,

are producing results as a new generation of corn

technologies are set to enter the market. Now,

farmers can look forward to specialty products

intended for specific markets and corn capable of

better coping with climate-based stressors.

―Fifteen years of biotechnology advocacy and

support for science-based regulation created the

conditions for approval of these exciting new

products,‖ said the NCGA Trade Policy and

Biotechnology Action Team‘s Chad Blindauer.

―We applaud the release of products that provide

growers with options that allow them to diversify

or improve their operations. At the same time, this

success renews our dedication to grower access to

technology. I strongly urge farmers to consider

the power that grassroots activism has as

demonstrated by these events.‖

Earlier this year, the Animal and Plant Health

Inspection Service deregulated corn engineered to

produce a common enzyme called alpha-amylase

that breaks down starch into sugar, thereby

facilitating a vital step in ethanol production.


http://www.springerlink.com/content/r1552355771656v0/

http://www.transportation.anl.gov/pdfs/AF/265.pdf

http://www.stanfordalumni.org/news/magazine/sage/201104/biofuels/nittygritty.html



http://www.stanfordalumni.org/news/magazine/sage/201103/impact/essential.html



http://www.science20.com/news_articles/ethanol_mandates_may_spike_food_prices_economists_warn





http://www.scientificamerican.com/article.cfm?id=biofuels-bad-for-people-and-climate



http://peninsulapress.com/2011/04/26/corn-ethanol-is-inefficient-and-drives-food-prices-higher/





Bio Fuels

Next generation of corn products entering market (Contd)

This represents a major change in the types of

corn traits available to growers. Until the

deregulation of corn amylase, traited corn

products protected yield and reduced stress from

biotic factors such as insects or weeds. This

reduced inputs needed to protect the crop and

maintain yields. Corn amylase opens new options

as the first output trait approved and

commercialized.

Now, APHIS is in the final stages of

consideration for deregulation of the first biotech

corn variety that targets abiotic stress, drought.

This will be the first variety available that reduces

stress from a purely climatic factor. In the future,

further abiotic traits better suiting corn for cooler

weather and other climate-based stressors are

expected. ―APHIS deregulation of corn amylase

represented a major triumph for science-based

regulations,‖ said Blindauer. ―The introduction of

additional options continue to allow growers to

produce the corn needed for food, feed, fuel and

fiber in a rapidly growing world.‖

(southwestfarmpress.com May 23 2011)

Company eyes biofuel potential

CORE BioFuel Inc. is holding an information

session May 27 to provide more details ―We think

there‘s an opportunity in Terrace. There are

locations and there‘s fibre,‖ says Toronto-based

CORE BioFuel official Doug Sheppard. One

possible location is the city‘s airport industrial

lands, the Skeena Industrial Development Park.

―We‘ve had discussions with members of your

town council and also several of your

lumbermen,‖ Sheppard said. CORE BioFuel is

also holding a session in Smithers and one in

Houston where it has already been spending time

and effort on selecting a plant site. (Continued in

next column)

Company eyes biofuel potential (Contd)

The company developed an interest in the

northwest when it built a connection with a Burns

Lake business group with access for wood.

―We now have investors throughout the area,‖

said Sheppard.

The decision to hold information meetings

follows the signing of a memorandum of

understanding with so-far unnamed project

developer to develop as many as four plants. ―For

now they don‘t want their name known, but they

will be at the Houston meeting and possibly the

others,‖ said Sheppard.

He stressed that CORE is not the inventor of the

wood-into-gas method, but is working on

developing it as a commercial process

Intense heat is used to convert primarily waste

wood into 92 octane gas.

―We wouldn‘t own the plant. We would license

the technology,‖ Sheppard said.

Each plant would cost USD 100 mio and require

220kt of fibre a year to produce 67 mio litres of

gas.

―And we‘d be profitable without a subsidy, but

we won‘t turn down any help if offered,‖ said

Sheppard. ―We‘ll take help where we can get it.

―We believe we‘re the leading edge biofuel

company in the world,‖ he added.

In addition to 40-50 inside workers, a plant

capacity of the size proposed by CORE BioFuel

would required approximately 150 outside

workers to provide the wood. (bclocalnews.com

May 25 2011)

http://southwestfarmpress.com/grains/next-generation-corn-products-entering-market




http://www.bclocalnews.com/bc_north/terracestandard/business/122369964.html





Bio Fuels

Luverne ethanol plant to highlight market-expanding technology

Gevo Inc., an Englewood, Colo., company, has

bought the Agri-Energy ethanol plant in Luverne,

Minn., and will retrofit it with new technology it

hopes will be a game-changer in the ethanol

industry. By the middle next year, Gevo plans to

make commercial quantities of iso-butanol which

can be used as liquid fuel, like ethanol. But the

additional carbon in its structure makes it burn

with more energy than ethanol

Because it repels water, like gasoline, isobutanol

can be transported in existing oil pipelines and

shipped directly to gasoline refineries for fuel

blending. Also, isobutanol can be used as a

building block to make the ubiquitous plastic

polymers that until now were made only with

isobutanol refined from oil. That has the potential

to open the enormous plastics, synthetic fiber and

rubber and chemical solvents markets to what is

now the renewable fuels industry.

Jack Huttner, Gevo's executive vice president for

corporate development, "Our conception is

isobutanol as a fermentation alcohol can be a

bridge between the agricultural supply chain and

the petrochemical and refining supply chain".

Calculated on the spread between the price of oil

and the cost of growing corn, "we have very

favorable market conditions," Huttner said. And

as cellulose-based ethanol technology comes to

the commercial market, it also can be adapted by

Gevo to make isobutanol. This opens a whole new

range of potential feed stocks that are cheaper

than oil. (argusleader.com May 23 2011)

Renewable Energy In the Pond

Ethanol has traditionally been produced using

corn. The problem with using corn for ethanol is

that corn is a food staple for humans and the

removal of corn from the food cycle is seen by

some as anti-human.

The theory is that by using corn as the basis of an

energy source, we are taking a potential

life saving food source from the mouths of those

in need. Because of this ―corn is food, not fuel‖

perception, corn-based ethanol has struggled to

gain the widespread footing needed to rise as a

major player in the world of alternative energy

sources.

Duckweed is a food source for ducks and other

water-based birds, and has been used as a food

source by some residents in the countries of

Vietnam, Korea and others in that area. However,

Duckweed is not a major source of food for these

people and the use of Duckweed in ethanol

production is widely accepted as a sustainable

practice.

North Carolina State University researchers

discovered that Duckweed has an appetite for

animal waste, quickly converting it to leafy starch

that can then be converted into ethanol. The

really exciting thing for those that are purely

interested in the power of the plant as a fuel, and

less concerned about its environmentally friendly

characteristics, is that the researchers found

Duckweed produced four to six times the starch

that corn could produce.

Corn also uses a tremendous amount of water and

chemicals to grow, something Duckweed does not

need. What I like about Duckweed is that instead

of taking pesticides and water to produce corn for

ethanol production, we can actually use a plant

that absorbs toxins and works with water,

eliminating the two major environmental barriers

to corn-based ethanol‘s claim of being a green

alternative fuel source. (Continued on next page)



Bio Fuels

Bio Plastics

Renewable Energy In the Pond (Contd) The term that is most commonly used for this fuel

source is Aquatic Biofuel. To date, Aquatic

Biofuels have been identified as either fish waste

to produce bio-diesel, micro-algae to produce

crude oil for diesel production, and micro-algae to

produce bio gas. But the finding that Duckweed

can be used for ethanol is a major breakthrough.

A company called Ceres is working on a

duckweed production process that can yield one

megawatt of power from a single acre of

duckweed pond production. Many others have

tried to do similar projects, but have run into

issues when the harvesting of the Duckweed

comes into play. Ceres believes they can

overcome these obstacles and make Duckweed

viable.( reston.patch.com May 28 2011)

Bakery waste turned into alternative fuel source Fats and oils from waste pies, sausages rolls and

pastries are being extracted to make bio-diesel in

a project that is expected to be rolled out across

the UK. Road fuel supplier Greenergy has teamed

up with Brocklesby, a specialist in recycling

edible oil, to convert into biofuel misshapen and

out-of-date bakery products that would have gone

to landfill or compost.


Bakery waste turned into alternative fuel source (Contd)

The savory products, which contain between 25%

and 30% oil and fat, are sourced from bakery

manufacturers and the oil is extracted by East

Yorkshire-based Brocklesby. It is then purified by

Greenergy and converted into biodiesel, which is

blended into the diesel supplied to petrol stations

Any food solids left after processing are dried and

then composted or used to produce energy

through anaerobic digestion, but could be used to

make biomass fuel pellets. A Greenergy

spokesperson said the company was keen to hear

from bakers interested in supplying waste

products. Greenergy is also a major shareholder in

a firm called Scarab, which produces bioethanol

from starch-rich foods such as bread and cakes.

Greenergy already uses more than 20 mio litres of

biodiesel a month from used cooking oil.

Andrew Owens, Greenergy chief executive, said:

"As oil prices continue to rise, it's important to

develop alternative sources of fuel. The quantities

of biodiesel we currently produce from solid food

waste are small, but we're expecting to scale up,

so that this soon becomes a significant proportion

of our biodiesel."(bakeryinfo.co.uk May 25 2011)

Bioplastics based on potato starch not necessarily compostable

It‘s a general assumption that bioplastics made

from potato starch can be composted. However,

that is not necessarily the case. In the picture you

see a supposedly biodegradable fork and spoon

after 60-90 days in San Francisco's commercial

composting operation.

Taterware, the manufacturer of the items in the

picture, states that its utensils are made from

GMO free potato sources. But while the material

used is purportedly a green one, Taterware itself

doesn‘t claim all its products are compostable.


http://reston.patch.com/

http://www.greenenergy.uk.com/

http://www.bakeryinfo.co.uk/news/fullstory.php/aid/8427/Bakery_waste_turned_into_alternative_fuel_source.html





http://www.google.com/url?q=http%3A%2F%2Fwww.earth-to-go.com%2Fproducts%2Ftaterware%2Fcutlery&sa=D&sntz=1&usg=AFQjCNFgVLtJe9m8gZSTwBAYGdZm7Oafvg



Bio Plastics

Bioplastics based on potato starch not necessarily compostable (Contd)

They do make an ASTM D6400 compliant line,

but these are visually almost indistinguishable

from their non biodegradable varieties. As such,

it‘s easy to see why commercial composters may

be compelled to remove all utensils from the

compost stream, because even when they are

made from the same material, it‘s no guarantee

they are equally designed to break down. This

identifies the other key problem, that too many

non-biodegradable items are mis-sorted by

consumers which commercial composters cannot

recognize.( potatopro.com May 19 2011)

Plastics from algae not economic says analyst

Using algae to create bioplastics is attracting

increased attention according to a report in the

journal Bioplastics World, although the

publication points out that a number of firms in

the arena ―are sticking with starch-based futures‖.

Mark Bunger, lead analyst at Lux Research, told

the publication: ―Generally, algae are used as a

fuel source – their composition contains a lot of

oil and therefore that can be a positive from that

perspective. In terms of packaging there are

people looking at doing this, but there are issues

and I‘m not aware of companies that haven‘t

encountered issues.‖

According to Bioplastics World, Bunger is unsure

as to why companies would want to go down the

path of developing packaging from algae. From

his perspective, there are many easier ways to

make packaging and, given the nature of how

algae work, the alternatives are potentially more

valuable from a commercial sense. (Continued in

next column)

Plastics from algae not economic says analyst (Cont’d)

―The issue, as with any biomass, is you need to

convert the monomer, regardless of its source,

whether it is cellulosic or not,‖ he explained.

―Now with algae, that conversion first requires

cultivation. The cultivation is hard to do as it is

cost-intensive. You need lots of water and lots of

space and you also need lots of capital to pump

the water. ―Then, because the algae are very

dilute, you might achieve 1g of material from

1 litre of water.‖ (prw.com May 23 2011)

New Bioplastic Features Higher HDT, Impact

A Rhode Island compounder says it has improved

impact strength and heat deflection temperatures

for a major bioplastic.

As a result, the material, polylactic acid (PLA),

may become a candidate for injection-molded,

semi-durable and durable applications. The

bioplastic is also now better suited for high-end

disposable food service items such as cutlery,

coffee lids and containers for microwavable

products.


http://www.google.com/url?q=http%3A%2F%2Fwww.potatopro.com%2FLists%2FNews%2FDispForm.aspx%3FID%3D5305&sa=D&sntz=1&usg=AFQjCNFzCvBIza0ECCi4Y7tnTLnhdiSwXQ



http://www.prw.com/subscriber/headlines2.html?cat=1&id=1306145508





Bio Plastics

New Bioplastic Features Higher HDT, Impact (Contd) Teknor Apex says it has overcome an inverse

relationship between heat distortion temperature

(HDT) and Izod impact strength in PLA, creating

a new series of compounds, Terraloy BP-34001,

that provide up to two times the HDT and up to

six times the impact strength of standard

PLA resins.

Previous work to enhance PLA performance

beyond standard levels had generated resins with

either higher HDT or greater impact strength - but

not both in the same grade, according to the

Bioplastics Div. of Teknor Apex.

There are other benefits to the newly developed

PLA compound.

In comparison with previous

enhanced performance PLA resins, the new

Terraloy compounds process faster - cycle times

are 28 to 30% shorter.

Another benefit: The compounds incorporate a

larger percentage of renewably resourced content,

about 10 to 30% more. Nearly all of the new

Terraloy compounds are said to comply with

FDA requirements for food-contact applications.

"Terraloy BP-34001 Series compounds

dramatically improve the heat and impact

resistance of PLA while largely retaining the

environmental benefit of this polymer as a

bioplastic," says Edwin Tam, manager of new

strategic initiatives. "These innovative

formulations promise to expand the applicability

of PLA, making possible new uses in higher-heat

food service items as well as consumer goods."

In property tests, a typical grade in the new series,

Terraloy BP-34001D, exhibits a heat distortion

temperature of 112C and Izod impact strength of

135 J/m. (Continued in next column)

New Bioplastic Features Higher HDT, Impact (Contd)

By comparison, approximate values for standard

PLA are 65C and 33 J/m.

The new compound complies with FDA 21 CFR

requirements and has a renewable content of 78%.

The base polymers for Terraloy BP-34001

products are Ingeo resins supplied by

NatureWorks.

"Teknor Apex built upon research by

NatureWorks to develop higher-performance

PLA compounds," says Gregory J. Anderson,

Teknor Apex technical manager.

"By discovering alternative formulations and

compounding techniques, we succeeded in

eliminating a chronic property trade-off between

heat resistance and impact resistance, while

improving processability and reducing the

petrochemical content."

Tam says that the price for the PLA compound

will be greater than for standard PLA. No specific

data was available.

The Bioplastics Division of Teknor Apex is a

custom compounder of plastics derived from

renewable resources. Product families include:

hybrids that combine thermoplastic starch (TPS)

with standard petrochemical-based polymers such

as polyolefins or polystyrene; biodegradable or

compostable blends of bioplastics; recycled-

content hybrids that combine post-industrial or

post-consumer polyolefins with TPS; and

PLA based masterbatches that incorporate

additives such as impact modifier or melt strength

enhancers. (designnews.com may 10 2011)

http://www.teknorapex.com/



http://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfcfr/cfrsearch.cfm



http://www.natureworksllc.com/

http://www.designnews.com/article/518100-New_Bioplastic_Features_Higher_HDT_Impact.php






These are the news derived from regional

publications, translated using online tools,

hence the medium quality of translation.

China Food control overweight corn for deep processing enterprises: "strictly limited" purchase

April 21st, the reporter got the information from a

deep-processing enterprise at Weifang, Shandong,

that they purchased standard corn at RMB 2260/t.

It rose by RMB 30/t as compare to last week. In

Harbin, Heilongjiang province the price of corn is

RMB 1960 ~ 4980/t, rose by RMB 20/t than last

week. The manager of Nongken North & South

Trade Company told the Daily Economic News

reporter that they have suspended acquisitions of

corn. Due to poor storage, at the end of January, related

ministries requested processing enterprises in

Northeast Chian and Jilin Province stop buying

corn. Food Bureau in Heilongjiang also asked the

processing enterprise and 70 qualified traders to

suspend the purchase. Insiders of Jilin Changchun

Dacheng company said that they also informed to

stop purchase of corn from farmers in order to

ensure that the takeover of corn reservoir, and the

tax deduction policy.

An anonymous general manager of the food

processing group said that national policy strictly

limits the development of corn processing

enterprise. Relevant statistics show that the

expected requirements of annual domestic

industrial corn demand in 2010-11 will be

increased from 11% to 29%. Also the quantity of

corn in processing will reach 5kt. Industry

analysts pointed out that as domestic demand for

food is decreasing it is necessary to restrict

this energy intensive, low output and polluting

enterprise. (feedtrade.com.cn April 22 2011)

Policy control: a rebound inhibition of deep processing of corn consumption

After the Spring Festival, there is a drastic

change in domestic corn futures market. The price

of spot corn rose sharply, The purchase price of

corn in February increased from RMB 1920-30 to

2090-2100/t, the growth rate being 8.83%. And in

northeast, the purchase price rose to a maximum

of RMB 2000/t. The author thinks that, drop in

the price of futures market is limited, with the

strong influence of intense demand in the

international market

During this year, the bank raised deposit reserve

rate at four times which resulted in short supply of

capital for the purchase and storage of corn

processing enterprises. Moreover, National

Development and Revolution Committee

requested the bank to stop providing loan to the

buyer, and urged the borrowers to sell and return

the loans.

On April 20th

, Department of Finance have

withdrawn the VAT deduction policy for corn

purchase and deep processing enterprises. So

from Apr 20th

to June 30th

, the buyer could not

issue invoices for the purchase of corn from

farmer. There is no doubt that this is the key

reason to inhibit the deep process development

and long-term adjustment in corn market. In

addition, the guys let futures market price to

adjust the pressure. (feedtrade.com.cn

April 22 2011)

Decrease of corn starch and potato starch market price: inflation continued to influence

The price of corn starch is rising slightly. In the

north east and northwest area, the price is around

RMB 3150 to 3200/t, while in southern, the main

price is 3450-3600/t. (Continued on next page)

http://www.feedtrade.com.cn/yumi/yumi_china/20110422092753_2.html

http://www.feedtrade.com.cn/yumi/forecast/20110422091920.html




Decrease of corn starch and potato starch market price: inflation continued to influence (Contd)

But until now, they still cannot purchase the corn

starch. Also some of the down-stream products

followed the price rise. Most of the distributors

show that there is a possibility to increase the

price, but need to take the down-stream

cooperator into consideration. In North of China

and Shandong province, the price is stable.

Different food enterprises have different points,

some of them need to sell their stock first and no

need to purchase any more as to the price of corn

without obvious change.

The potato starch market is still not good, some of

the enterprises just expect the price to be stable

and the market can be better. As to the notice of

stop the VAT deduction policy from Finance

Department on April 19, the price of corn starch

rose which made the starch market energetic.

According to the Zhuochuang News, the

production capacity of potato starch will be about

25kt in Spring season. After the bad market, the

potato starch will have the new market two weeks

later as the down-stream need buy more. Those

days, the potato market is not good, there are two

reasons, firstly, the excessive production too

much than market demand, also some factory

down regulation as to panic.

Secondly, as to the impact of bank credit-funds,

some buyers have not enough money to purchase,

also the factory sales the potato starch at small

profit to get money return. The down-stream

buyer still carry out the food safe inspection

which is influence the market accordingly.

At the points of Zhuochuang, the potato market

will be better as the buyer will have much

demand. The notice of stop the VAT deduction

policy from Finance Department on April 19,

what make the corn starch market unrest and

result in the bad potato starch market followed

hope. (Continued in next column)

Decrease of corn starch and potato starch market price: inflation continued to influence (Contd)

Some merchant at the support of corn starch,

never provide price and waiting for the cassava

starch can result in some profit. However, the

news show that some of the vermicelli is used by

ink and paraffin, what have impacted the cassava

starch market seriously. Moreover the food

quality issue always happened in difference place,

and the related department pays much attention to

do food safe quality. The cassava starch market is

not good due to less business. In Zhuochang's

opinion, as so many negative impact, this week,

the cassava starch market will be same as before,

some merchant with the pessimistic attitude for

the current market. (futures.jrj.com.cn April 24

2011)

April 26, 2011 corn pice in Heze, Shandong

April 26th

2011, the price of corn in Heze,

Shandong :

At the beginning of this week, the price of corn in

Linqing Shandong is rebounded slightly.

Following is the market details:

1. Local food grain storage listing price

RMB 2.08/kg, down RMB 0.01 from last

week/kg, bulk density is more than 700

2. Dezhou, Shandong, the price of corn is

RMB 2090/t, the products with 15% moisture

3. Local corn purchase price is around

RMB 1840-1850/t, and the corn with 15 to

16% moisture, the feed factory buy the

corn with the price of RMB 1900/t, which

with 14% moisture.

Although the policy issued to control the process

enterprises last week, in fact, there is no function

in Shandong, followed is the example: (Continued

on next page)




April 26, 2011 corn pice in Heze, Shandong (Contd)

Country Amount

(RMB/kg)

Heze,Shandong 2.08

Heze,Shandong 2.09

Heze,Shandong 1.84

Shouguang jin Corn

Co.,ltd

2.4

Xinfeng Starch Co.,ltd 2.4

Zhuchengxingmao

Co.,ltd

2.23

Binzhoujinhui Co.,ltd 2.17

Runsheng Starch

Co.,ltd

2.23

Yingxuan Alcohol

Co.,ltd

2.26

Shouguangzhonghui

Co.,ltd

2.20

Boxinxiangchi Co.,ltd 2.17

Xiwang Group Co.,ltd 2.19

Zoupinghuayi Co.,ltd 2.26

Shengtai Medicine

Co.,ltd

2.24

Dezhoufuyuan Co.,ltd 2.16

Zhonggu Starch Sugar

Co., ltd

2.12

Yangkou Wine Co.,ltd 2.18



From the weekend, the price of corn rise slightly,

what is wrong with the market. At present, the

feed factory in Guangdong purchase more corn,

but the followed production capacity is less, so

the price will be rise. While in northern region,

the market is stable. With the new policy come,

lots of food process factory with difference

purchase plan last weekend with up and down

price as followed

：

Country Amount

RMB/kg)

Shouguang jin Corn

Co.,ltd

2.4

Xinfeng Starch Co.,ltd 2.4

Zhuchengxingmao Co.,ltd 2.23

Binzhoujinhui Co.,ltd 2.17

Runsheng Starch Co.,ltd 2.23

Yingxuan Alcohol Co.,ltd 2.26

Shouguangzhonghui

Co.,ltd

2.20

Boxinxiangchi Co.,ltd 2.17

Xiwang Group Co.,ltd 2.19

Shengtai Medicine Co.,ltd 2.24

Dezhoufuyuan Co.,ltd 2.16

Zhonggu Starch Sugar Co 2.12

Yangkou Wine Co.,ltd 2.18






From March to April, the corn price in future

market is not stable, pure events and farmer

concentrated sales the grain make the market with

big pressure. In the same time, followed the

policy which is prevent the price from rising.

With time going, the short-term factors will be

disappeared, as the corn with the long term

shortage cannot be changed, and the price of corn

will be up.

Continue the situation of demand much than supply With the increase of the global economic, the

demand of corn will be increased. According to

the Agriculture Department of USA, latest report,

in 2010 to 2011, the global demand of corn will

be increased from 22.63 mio t to 838.32 mio.

However the production capacity just increased

2.51 mio t, it cannot meet the request market

demand, which will make the global corn stock

will down to 122.43 mio t, which is 14.6% of the

sales quantity.

While in domestic markets, although the corn

production capacity is increased in several years,

it still cannot meet the market demand, so there is

no choice but import corn from foreign country to

meet the market demand. In 2010-11, will import

200kt to 1.5 mio t corn from foreigners.

Moreover, as to the price competition in 2009-10

when sales, we have not any stock now, also the

nation regulations for the corn price will be

weakness. With the strain situation of supply and

demand of corn market, the corn harvest will very

important. At present, during the Northern

hemisphere sowing period, the market about

planting area and the weather changes theme hype

or futures market price trends will be dominated.



With the high price situation, the corn acreage

will be increased in USA and China, the weather

will have a big difference in the production

capacity. So the weather will be the key factors

for the future market of corn after the second

season. Regulation policy issued, in the short

team will be pressure for the future market price.

Frequent introduction of control policies,

short-term price pressure that period

In order to fight inflation, avoid excessive rising

commodity prices, national policy measures to

control for commodity prices, recently the typical

behavior is "interview" communicate each

industry association to stabilize prices. Of course,

and monetary policy levels of measures, such as

China's central bank has raised interest rates twice

within four times, 'reserve-requirement ratio, all is

for the recovery of excess liquidity, to avoid the occurrence of the vicious inflation.

For corn industry, also have the corresponding

policies. The latest "a seven-item corn market

regulation measures" limits the corn downstream

processing industry, including the corn

consumption this year shall not exceed the

amount of corn processing industry in 2009, speed

up and improve the productivity of eliminate

backward processing industry value-added tax

rate, etc.

April 19, the state administration of taxation

suspended some corn processing enterprise

purchase corn VAT deduction for policy of 70

days, period. A series of policies are to control

prices rise considerably, also make corn price

pressure.

However, adjustment and control policies enacted

or just short-term behavior, long-term or difficult

to change the upward trend of corn prices.






Downstream breeding to restore the corn

consumption as the largest feed raw materials,

corn prices by feed industry and breeding industry

with the influence of vigorous downturn. Early in

"lean meat fine events" under the influence of

the consumption of corn pig industry formed certain dozen strike, but the impact of these

factors have in the past.

According to understand, since mid-April, most

feed enterprise pig feeding early sales are growing

by 10-15%. Because of this, the future 1-2 months

time, the consumption demand will be great

support factors of corn future market price.

Summary, although the regulation policy issued

frequently, the supply demand factors give much

support on the corn market for a long time, also

with the limited down in short-term. The weather

impact factors and demand of breeding may result

in the corn price rise again. (nfinv.com April 26

2011)

2010 Sugarcane, cassava, cocoon production ranked first in the country

Statistics from the Guangxi Zhuang Autonomous

Region in 2010, held a news conference to

understand the economic operation, Guangxi's

sugar cane, cassava, silkworm cocoon output

ranks first in the country, while a variety of

agricultural production in the forefront of the

country.


2010 Sugarcane, cassava, cocoon production ranked first in the country (Contd)

According to statistics, the 2010 production of

71 196kt sugarcane, cassava yield 1.732 mio t,

cocoon production of 27 mio t, accounting for

60% of national output, 70% and 33%, and ranked

first in the country.

In addition, wood, high quality rice, bananas,

oranges, longan, mango, litchi, vegetables, edible

mushrooms, herbal medicines and other

agricultural production ranked the country.

In recent years, through the full implementation of

agricultural taxes, grain, seeds, farm machinery

purchase, home appliances and a series of

subsidies and increase investment policy of

benefiting the agriculture, agricultural production

capacity in Guangxi significantly improve the

rural economy to achieve new development.

Guangxi 4 consecutive years of grain yield high,

stable output of 1400 t or more; "shopping basket"

steady growth products, meat, aquatic products

ranked first in the country for 4 years 8.

According to reports, "Twelve Five" period,

Guangxi will actively develop high-yield, high

quality, efficient, ecological and safe modern

agriculture.

Implementation of new food production capacity

planning in the construction of grain production in

15 countries and 35 autonomous counties base

counties grain resources, the implementation of

standards for grain construction, land

improvement, soil engineering, plant protection

projects, and strive to grain production capacity

by 2015 up to 1500 t.


http://www.nfinv.com/2011/0426/85113.html




2010 Sugarcane, cassava, cocoon production ranked first in the country (Contd) It will also build vegetables, fruit, livestock,

aquatic products and construction of production

bases across the Taiwan Strait (Yulin) agricultural

cooperation experimental zones and other

agricultural park, build 5 over RMB 5 bio sales

income and 20 bio over 10 leading agricultural

enterprises. (cncassava.com May 27 2011)

Russian

Bioethanol production in Kyrgyzstan

The Ministry of Economic Regulation (IEG) of

the Kyrgyz Republic held its first meeting of the

interdepartmental working group on introduction

of technology of bioethanol production in

Kyrgyzstan, created by the decree of the

Government of the Kyrgyz Republic.

As the press service of Ministry of Economic

Development of Kyrgyzstan, at a meeting of

Working Group Chair A. Aidaraliev a

presentation of global development

Bioetanolovoy technology.

Following the meeting, members of the working

group was mandated before May 1 of this year to

submit their proposals for a pilot project

"Development and introduction of obtaining

ethanol in conditions of Kyrgyzstan."

(kabar.kg/index.php April 27 2011)

Biofuels aggravates hunger

Year by year an increasing share of world

agricultural products - corn, sugar, palm oil,

cassava - diverted to produce biofuels. Developed

countries to adopt legal regulations to expand the

share of non-fossil fuel resources, while

developing giants such as China, are seeking new

sources of energy for its industries and transport,

writes the business portal with reference to the

publication in the New York Times.

But in a sharp rise in food prices in recent months,

many experts urge States to limit the activity of

the development of "green" fuels, because due to

the ambitious plans in this industry and poor

harvests in key crop ultimately increases the

number of hungry people. In February, the Food

and Agriculture Organization (FAO) has fixed the

maximum value of the food price index for

20 odd years of its existence.

True, in a recent report for the March 2011 report

on the first eight months of the index decline by

2.9%. But previously only from October to

January prices rose by 15%, resulting in another

44 million people in low and middle income

below the poverty line, according to the World

Bank.

Rise in prices of products was one of the causes of

political turmoil in some countries with low

incomes, including in Algeria, Egypt, and

Bangladesh, where, in particular, palm oil, used in

the production of biofuels is an important food

ingredient. In the second half of 2010

dramatically increased the price of corn - its rise

in the U.S. reached 73%, such a jump, according

to UN World Food Programme, partly associated

with increased turnover of maize in the

production of bioethanol.

The U.S. Congress decided that the use of

biofuels by 2022 should reach 36 bio gallons a

year (more than 160 bio liters).


http://cncassava.com/

http://kabar.kg/index.php?option=com_content&task=view&id=18117&Itemid=64










Biofuels aggravates hunger (Contd)

In the EU, stipulates that by 2020, 10% of

transport fuel should come from renewable

sources. Trust regulations on the use of biofuels

have also been established by China, India,

Indonesia, Thailand and other countries.

It is difficult to predict how the demand from the

biofuel sector will affect the supply and food

prices. In some cases, for example, cassava and

maize, the increase in commodity prices is

triggered by direct competition of its customers.

In other situations, there is scarcity and price

increase.

China has learned that almost ten years ago when

we began to produce ethanol from corn, and as a

result of this program has caused a terrible

shortage and price hike of food. In 2007 the

government banned the use of cereals in the

production of biofuels. Then the Chinese

scientists were to develop technology making

ethanol from cassava, root crops with good energy

efficiency.

As a result, several years ago opened its first plant

for its commercial production. Now this direction

is actively developed. Cultivating cassava on its

territory, China buys raw materials in addition to

Cambodia, Laos and Thailand.

Cassava, which recently has become widely used

for biofuel, is a valuable cash crop. Lands are

limited, so the more their allocated for biofuel

production, the less food. In the Asian diet, it is

not a key product, such as in Africa, although in

China, it played an important role as a food

reserve in recent years.

Therefore, China decided that the production of

biofuel from the raw material will not exert a

direct effect on food inflation or provoke a deficit,

at least on the domestic market. As a result, the

proportion of cassava used as ethanol feedstock

has increased from 10% in 2008 to 52% in 2010.


Biofuels aggravates hunger (Contd)

Nevertheless, there may be some indirect effects.

Since cassava is also used as a forage crop,

demand from the biofuel industry could affect the

availability and cost of meat products.

Thanks to the generous Chinese purchases of

cassava in South-East Asia, it could become the

main crop, which farmers would be actively

cultivated at the expense of, for example, rice or

vegetables. In developed countries, the

development of biofuels is already having a

noticeable effect on prices and crop structure.

Thanks to government subsidies in the U.S., this

industry is actively developing, diverting nearly

40% of corn grown in the country.

Prices for this growing, and there is reason to talk

about the correlation between the quotations on

the Chicago Mercantile Exchange, which rose by

73% and, for example, prices in Rwanda, where

the corn last year increased by 19%. And if, for

Americans it means a few extra cents for a pack

of cereal for breakfast, then for the poor in other

countries may not be available the most important

products of the diet.( newsru.com April 13 2011)

Ukrainian distilleries stimulate the production of biofuels Ministry of Agricultural Policy and Food plans to

increase biofuel production in the Ukrainian

distillery in connection with the trend of rising oil

prices.


http://www.newsru.com/finance/11apr2011/bioetanol.html






Ukrainian distilleries stimulate the production of biofuels (Contd)

According to head of the ministry

Prisyajnyuk Nicholas said, when the price of oil

above USD 93 a barrel, biofuel production will be

economically attractive and profitable.

The Minister said that currently 80 plants exist in

Ukraine are producing alcohol and only 25 of

them produce alcohol for beverage purposes, and

the food industry. From about 60 ideal factories,

we analyze which of them can be derived from

excise under control and, given that rising demand

for biofuels, we begin this work

N. Prisyajnyuk said that the two plants are already

running pilot projects and a further four-mounted

unit for production of biofuels. The minister also

stressed that biofuels will contribute to increase of

sugar beet.( news.infocar.ua April 13 2011)

Russia starts production of ethanol in the next two years

Russia in the next two years will start producing

ethanol, stated by Russian Agriculture Minister

Alexey Gordeev, the German-Russian Forum

"Biomass energy", held in AGROFORUM East-

West ", ITAR-TASS."Currently, in the south and

in Siberia there are several major projects to

produce bio-fuels. Through a year or two, we will

begin to produce the first 10000 t of bioethanol."

Minister of Agriculture said that the issue of

energy security is relevant not only for Russian

agriculture, but in general for the European

economy.

"In Europe the emphasis is on the production of

biodiesel in this regard, Russia is ready to become

a producer of rapeseed as raw material for

biodiesel." He added , ―We are waiting for new

technologies and investments from western

companies in Russia and are willing to negotiate

with them". (Continued in next column)

Russia starts production of ethanol in the next two years (Contd)

In turn, the presidential envoy in the Southern

Federal District Dmitry Kozak said that in the

Krasnodar Territory is planned to build a plant for

processing rapeseed as raw material for biofuel

production. The project cost is estimated at

15 mio euros. In addition, he said, Volgograd

region will have a plant for the production of

bioethanol, the total capacity of 300kt in the

project and will invest EUR 380 mio. Raw

materials will be low-grade grain. (24auto.ru May

16 2011)

Indonesian

PTPN X bioethanol plant operation schedule 2012

President Director of PT Perkebunan Nusantara

(PTPN) X, Subiyono states, it soon operate a

bioethanol plant in 2012. The plant is the result of

government cooperation Indonesia and Japan

through the New Energy and Industrial

Technology Development Organization (NEDO).

"Construction of the plant will begin in mid May

and is expected to be completed by February

2012. In sugarcane milling season of 2012,

molasses (sugar industry waste) can be processed

into bioethanol," said Subiyono, the Ministry of

Industry, Jakarta. Bioethanol factory is projected

to be able to process 100kt from 250kt of

molasses produced every year by the company to

become the alternative fuel.

"Bioethanol is produced is estimated at

100 thousand liters per day or equivalent to

30 thousand kl of fuel-grade ethanol per year.

Estimated production figures that if the ethanol

plant can produce over 300 days per year," said

Subiyono. That bioethanol factory will be built in

an integrated way with Sugar Factory

Gempolkrep Mojokerto, East Java, owned by

PTPN X. (primaironline.com April 27 2011)

http://news.infocar.ua/ukrainskie_spirtzavody_aktiviziruyut_proizvodstvo_biotopliva_52334.html





http://www.24auto.ru/news/id-3400/




http://www.google.com/url?q=http%3A%2F%2Fyogya.gresnewslocal.com%2Fch%2Fyogya%2Fid%2F2051341%2FPTPN-X-jadwalkan-operasionalisasi-pabrik-bioetanol-2012&sa=D&sntz=1&usg=AFQjCNElMVznmk3VMiIIDjq4ExgtaGrOmg












http://www.primaironline.com/berita/ekonomi/149214-ptpn-x-jadwalkan-operasionalisasi-pabrik-bioetanol-2012






Spanish

The Brazilian government wants Petrobras controls ethanol prices Brazilian state oil company Petrobras is

expanding its role in ethanol production, said the

government, comes as the country tries to prevent

the rise in fuel prices accelerated inflation.

The Mines and Energy Minister Edison Lobao

said Petrobras would raise its stake in ethanol

producer to 15% of total production in Brazil over

the next four years, from 5%

The country currently produces 29 000 mio liters

per year of biofuel. An increase in ethanol prices

this year prompted the authorities to work on

measures to regulate the biofuel market, in an

attempt to have more control over production and

supply

In April, the government extended the minimum

of the range that can be set mandatory blending of

ethanol in gasoline and determined that the

National Agency of Petroleum, Natural Gas and

Biofuels (ANP) supervise the industry.

(minutoaminuto.com May 09 2011)

Ethanol demand falls for 1st time in 11 years

Ethanol consumption in South-Central region of

Brazil in 2011 should be 24.839 bio gallons, down

4.1% from the 25.895 bio gallons last year,

according to Bioagência, one of the major traders

in the fuel Country Retreat is the first since 2000,

when there was no flex fuel vehicles, and occurs

because the supply of ethanol is stable against a

backdrop of growing fleet of cars.

The vehicles use more gasoline consumption in

2011 and derived from oil will jump 10.4% in the

country between 2010 and this year, according to

Bioagência. Gasoline C, sold in the ranks, must

have a demand of 26.211 bio gallons this year

from 23.747 bio liters in the previous one. The

use of gas will supply, thus the bottleneck created

by the collapse of ethanol, since the total demand

of fuels in vehicles powered by gasoline and

alcohol, will reach 37.536 bio gallons, up 6.5%

compared to 2010.

According Tarcilo Rodrigues, director of

Bioagência, demand for ethanol will be controlled

by changing the use of hydrated by gasoline in

flex fuel vehicles. This occurs when the fuel price

of cane sugar is 70% charged by the gasoline at

stations, which makes use fuel oil more

economically advantageous. "For the first time

since 2000 the industry [sugarcane] is stagnant

and the supply of cane will be limited, the

adjustment of consumption must occur at the

price of fuel," said Rodrigues (brasilagro.com

May 04 2011)

Steady supply of corn price increases sufficient demand is not easy

Since late March, the domestic spot price of corn

market is basically stable, somewhat lower price

in some areas. The author believes that the current

supply and demand is relatively relaxed, corn

prices unlikely to rise sharply again.


http://www.google.com/url?q=http%3A%2F%2Fwww.minutoaminuto.com.ve%2Fcontent%2Fel-gobierno-brasile%25C3%25B1o-quiere-que-petrobras-controle-los-precios-del-etanol-0&sa=D&sntz=1&usg=AFQjCNHT5SY2k6QPKBDp9EIdIuaZflt_LQ



http://www.google.com/url?q=http%3A%2F%2Fwww.brasilagro.com.br%2Findex.php%3Fnoticias%2Fdetalhes%2F11%2F35366&sa=D&sntz=1&usg=AFQjCNFY2biXqy5TfnP8oy-SGAFCK5V6JQ






Steady supply of corn price increases sufficient demand is not easy (Contd)

April is expected to stabilize the domestic price of

corn based, small correction could not be ruled

out. Northeast corn price range for the

RMB 1950-2050/t the price of corn in North

China in RMB 2050-2200/t. High corn prices

stabilized in Northeast. Due to recent frequent

rainfall in Northeast China, corn production has

decreased

However, due to difficulties in maize exports,

traders purchasing enthusiasm reduction, stop

rising market prices have been mostly stabilized.

Heilongjiang Harbin current first-class enterprise

purchase price the RMB 1980-2020 corn feed/t,

Jiamusi first-class corn deep processing

enterprises purchase price for the

RMB 1980-2020/t Jilin Changchun First corn

deep processing enterprises purchase price for the

RMB 2060-2080/t, Siping region

RMB 2040-2080/t; Liaoning Jinzhou first-class

corn deep processing enterprises purchase price

for the RMB 2120-2160/t, flat. Maize prices in

North China highs Huanghuai countries have

started to feed enterprise auction sales imperfect

grain wheat, feed corn farming enterprises

purchase high-priced slow progress, corn

procurement requirements of the market

decreased.

Early April, Hebei Shijiazhuang First corn deep

processing enterprises purchase price for the

RMB 2080/t, Qinhuangdao is RMB 2060-2080/t;

Henan Zhengzhou, first-class corn into ex-factory

RMB 2020-2060/t, Anyang area first-class

purchase price for the corn traders is

RMB 2000-20/t; with basically the same as in late

March. Shandong Weifang in first-class price for

the corn deep processing enterprises

RMB 2140 to 2180/t, Texas, area purchase price

for the first-class corn traders is

RMB 1980-2040/t, in late March were down

RMB 20/t. North Port periodic pressure corn

prices. (Continued in next column)


Dalian Port First the current purchase price for the

RMB 2110-2130/t corn trade, down the middle of

March RMB 20-3/t; Dalian and Jinzhou Port are

first-class price of corn trimming

RMB 2180-2190/t, In mid-March fell more than

RMB 10 to 20/t. Shekou Port in Shenzhen First

current board distribution of corn price

RMB 2250-2260/t, was essentially flat, but prices

fall than in mid March RMB 40-50/t, the current

ship from Dalian to Shenzhen Shekou,

Hong Kong 70 per freight/t to RMB 2 180 dalian/t

trimming prices, the cost of corn-to-port

RMB 2250/t, considering the wear and tear and

other costs, North Port is still upside down corn

prices.

Expected corn price is difficult to rise in April.

Recently, the domestic corn market supply

increased, while the procurement requirements

remained stable, the market buying and selling

both the short term bullish corn market is

expected to weaken, prices of maize are expected

in April unlikely.

From the supply point of view, the amount of corn

market will continue to increase. Especially for

the northeast region, the temperature rises,

increasing the difficulty of keeping corn, common

corn farmers and small traders to sell the

enthusiasm will continue to increase. Huang-Huai

Region in North China, as a result of narrowing

the spread between the corn, Hebei, Henan,

reduce the number of corn for export, making the

local high corn prices fall, some traders will

increase sales of corn.

From the demand point of view, short-term needs

cannot effectively enlarged. First, demand for

corn feed livestock and poultry industry is still in

the recovery process, the enterprise is relatively

adequate corn stocks, and some companies have

already signed the purchase contract there, so no

hurry to fill Yongliangqiye library. (Continued on

next page)





In addition, the state enterprises on the auction

sales imperfect feed wheat, wheat instead of corn

to some extent, feed corn farming enterprises

purchase high-priced slow progress, market

purchases of corn demand has decreased. Second,

the domestic prices of downstream products of

deep processing industry down, corn processing

gains reduce the number of industrial

consumption of corn to maintain previous levels.

In late March, the domestic starch prices down

again, most of the starch producing factory price

fall than early March RMB 50 to 100/t range,

mid-fall more than RMB 2 100 to 200/t.

April seasonal domestic starch consumption in the

off-season, a corresponding reduction in market

demand, prices continued to rise does not support

the starch.(sinobcm.com May 04 2011)

Portugese

Minimum proportion of ethanol in gasoline falls

The President of the Republic, Roussef, signed an

interim measure on the proportion of ethanol in

gasoline. The MP reduces the minimum amount

to 18% against 20% previously required. The

maximum remains at 25%.

The main objective of the measure is to reduce

fuel prices. With lower insertion into gasoline,

ethanol does not increase both the value of the

derivative of petroleum. In the bargain, there is a

greater supply of alcohol at stations, which also

helps reduce the figures tabulated for the product

made from sugar cane.


Minimum proportion of ethanol in gasoline falls (Contd)

Break, ethanol is no longer an agricultural

product, also according to the MP, to officially be

a fuel, and now under the regulatory responsibility

of the National Petroleum Agency (ANP). With

this, the body is in charge of marketing, pricing,

storage and export of the product. How is an

interim measure, the ordinance shall only last 90

days. (allthecars.wordpress.com May 03 2011)

http://www.google.com/url?q=http%3A%2F%2Fwww.sinobcm.com%2Farticledetail.asp%3Fid%3D462&sa=D&sntz=1&usg=AFQjCNHDRo15p-1JdCFuDKjECr4kPAW2yA



http://www.google.com/url?q=http%3A%2F%2Fallthecars.wordpress.com%2F2011%2F04%2F29%2Fproporcao-minima-de-etanol-na-gasolina-cai%2F&sa=D&sntz=1&usg=AFQjCNG40EZDGfsn4tj9-7HNmakMP0AKIA































starch italics tenth edition

Documents