Starch Italics Table of Contents Starch Industry Overview April/May 2010

April/May 2010 © GIRACT 2010

Starch Industry Overview

Crops and grains

p.1 Global study on starches and derivatives

proposal

p.2 Maize plunges further in Indian domestic

market

Fusarium factor could increase in north for

wheat growers

p.3 Maize collapses more Than 5% On Fresh

Arrivals of Rabi Crop

Glencore sets up new grain handling facility in

East Anglia

Ethanol byproduct grows in popularity with

Chinese p.4 DA cites importance of cassava p.5 Belarus‟ agricultural industry can be reliable

source of currency supply

Starches and derivatives

p.5 Ohio farmers unhappy with attack on corn

sweetener

p.6 Researchers attempt microscopic chemical

Imaging for starch granule analysis

Team of K-State researchers‟ image ester

modification of microscopic single starch

granules, a scientific first

Plastics

p.7 From pond scum to plastics: Algae might

just be the next big bio-resin

p.8 Bio-plastics “The Reshaping of an Industry”

Scientists in Peru develop a plastic made from

potato starch

US bio-plastics firm monitoring European

market before expanding ops

p.9 Biotechnology to expand biomass use in China

Starch Industry Overview (Contd.) Bio-fuels

p.9 Valeric fuels: a new generation of bio-gasoline

and bio-diesel from lignocellulose

p.10 Petrobras in bio-fuels tie-up with Tereos

p.11 PTT considers B300m biogas-for-

vehicles venture

Nanotechnology for cheaper bio-fuel

Antibiotics concerns ooze into ethanol

process

p.12 Details to come on advanced bio-fuel funds

p.13 ATCO Midstream & Grow-Gen Energy to

Develop Canada's First Integrated Bio-refinery

Winter Barley Shows Promise for Ethanol

Company Information

p.14 Global Bio-chem reported modest net profit

for the year as performance rebounded in 2H

2009

p.15 Tamworth's hard to beat

p.16 Featured Earth Day Company: Cereplast

Natural Plastic (NASDAQ: CERP)

Novamont suffers set-back in bio-plastic patent

p.17 Petrobras acquires significant stake in Guarani

Akzo in Talks With Buyers for National starch

as M&A Rebounds

p.18 Cerealus Announces Licensing

Agreement for Bio-Based Ceregel™, A Next

Generation Strength and Retention System

Vinachem to build sorbitol plant

(Table of Contents continued on next page)

Starch Italics Table of Contents Starch Industry Overview April/May 2010

April/May 2010 © GIRACT 2010

Starch Industry Overview (Contd.)

Company Information

p.19 Return to ethanol profits helps ADM top

estimates

Gulshan Polyols board recommends dividend of

INR 1.25 for 2009-10

Sahyadri Industries board recommends final

dividend of INR 3 for 2009-10

p.20 Anil Products net profit rises 76.53% in the

March 2010 quarter

Tate & Lyle profit down 77% after mothballing

Iowa plant

Tate & Lyle profit dips, promises new focus-

Update 2

Dwayne Wilson elected to corn Products

International, Inc., Board of Directors

p.21 E.T. Horn and Roquette enter into new

distribution agreement

International patent quarrel with Biotec shows

no signs of letting up

p.22 English Indian Clays opts stock-split, up 14%

Anil Products Q4 net profit at INR 75.2mn

p.23 French firm eyes 36% more in Riddhi Siddhi

p.24 AGRANA operating Profit more than doubled

in 2009-10

Major carbon capture and storage project

Advancing at ADM

p.25 MGPI, ALLT, DUSA, NCOC, MEMS, NURO

expected to be lower after earnings releases.

Tongaat to increase sugar production by 25%

p.26 USDA taking applications for renewable

energy funding

ATCO Midstream, grow-gen to develop

integrated bio-refinery in Canada

Others

p.27 Amflora potatoes planted in Germany

p.28 Advertisement rates

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

Starch Italics

is published every 2 months by:

GIRACT 24 Pré Colomb, 1290 Versoix,

Geneva Switzerland

Tel +41 22 779 0500 Fax +41 22 779 0505

marketing@giract.com

www.giract.com

Starch Italics Starch Industry Overview

April/May 2010 © GIRACT 2010 P a g e 1

Giract announces Starches & Derivatives Global Production and Supply Giract has just launched a multiclient project to examine current global production and supply of starches and

derivatives focusing in particular on the impact of the recent economic downturn on the industry and the change in

traditional supply patterns currently taking place. The report will also explore the factors which will influence the

industry to 2015. Details are provided in the following proposal.

The starch industry is one of the world’s largest transformers of agricultural raw material, producing 62 mio tons (expressed as primary starch

slurry with 12% moisture) when Giract published its earlier starch supply study in 2007. The many possible derivatives have long been driving

the growth of the industry, allowing it to respond with great flexibility to changes and opportunities, be they global raw material availability,

trade regulations, new technologies or end-use sector dynamics. The testimony is a remarkable average 4% annual growth over 30 years.

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 many foods and beverages

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.

While many agri-food industries posted record sales and profits when global food prices were exploding, major players such as Tate & Lyle

decided to reduce their presence in this industry, a timely decision given that since then margins have eroded beyond historical lows. Other

companies are also said to be exploring exit options.

Thus, the traditional patterns in starch production as well as the importance of Western players and markets are seriously affected, both in

terms of product portfolios and players. As new supply patterns are starting to emerge, it is the right time to take stock of new opportunities

and threats before making any new strategic decisions. This report thus attempts to provide a comprehensive picture of the actual global

starch production and trade, by product and area, and explore which key factors are likely to influence the forecast for 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, to be published in autumn 2010, will take into account the

various changes that have occurred across the world in the last few years, and will thus act as an important tool in your strategic planning.

• 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

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)

Global

2009/10 and forecast to 2015

Planned for September 2010

Please ask us for details of subscription to the entire report or to a specifically tailored version by product and/or area

Starch Italics Crops and Grains Starch Industry Overview

April/May 2010 © GIRACT 2010 P a g e 2

Maize Plunges Further In Domestic Market On the back of weak demand and higher arrivals, Maize

prices dipped further in the domestic futures market and

spot markets. Benchmark May contract on NCDEX

plunged nearly INR 15.5 to the session low of

INR 871.5 per 100 kg. The counter is now trading at

INR 876, down INR 11 from last close and the open

interest added 2.16% to 16 kt, indicating short selling.

According to the latest data release by Ministry of

Agriculture, the total production of maize during the

current Rabi season is likely to be around 5.6 mio t

against 5.6 mio t reported last year due to favorable

weather conditions during the crop maturity period.

On the other side, weak demand was seen in domestic

and international market. Traders and stockiest were

silent in domestic market due to poor demand of

poultry and starch industries at elevated levels. Similar

trend was also seen in international market as low

prices of maize in other producing countries such as

United States and Brazil along with strengthening in

rupee against dollar makes the Indian corn unviable at

international place.

Fresh arrivals of around 50 000 bags were reported

from Bihar with the price range of INR 775 to 795 per

quintal of cattle feed at Mughal Sarai mandi while the

prices of Nizamabad (Andhra Pradesh) were quoting at

INR 875 per quintal and Aurangabad at INR 850

per quintal. (indiainfoline.com 03 May 2010)

Fusarium factor could increase in north for wheat growers

Fusarium control might take on a greater importance for

northern growers targeting wheat at bio-ethanol

markets, believes Jim Rennie, technical director of CSC

Cropcare. (Continued in next column)

Fusarium factor (Contd.)

Mycotoxins can significantly lower the feed value of

distillers grains, a core component of the financial

viability of bio-ethanol plants, along with the bio-fuel

and carbon dioxide, he explains. Another concern for

bio-ethanol processing is research that suggests

fusarium, microdochium and cladosporium infections

could have a negative effect on enzymes used to

convert starch into alcohol, potentially reducing alcohol

yields or the plant's efficiency.

Historically mycotoxin levels in northern Britain have

been low. But slowly increasing areas of maize being

grown as far north as the Borders will increase risk,

Mr Rennie points out.

All could feature in fungicide programmes for wheat

crops destined for either bio-ethanol or distilling

markets, he suggests. The central aim for both is to

maximise alcohol yield, which is dependent on high

starch content and low nitrogen.

“Nitrogen rates for starch production should be around

40kg/ha below the optimum for milling wheats,

Mr Rennie suggests. That opens up the possibility of

growers applying sub-optimal amounts of N for yield to

maximise starch for alcohol, SAC's Steve Hoad says.

Fungicides are another consideration. Strobilurin and,

potentially, the new carboxamide fungicides have been

shown to increase yields while maintaining protein

levels. That's good for milling wheat growers looking to

boost yields and meet protein targets, but potentially

less favorable when targeting low protein. But

Mr. Rennie believes using the yield-enhancing

properties of the chemistry will still overall be positive

for producing distilling and bio-ethanol

wheats. (fwi.co.uk 11 May 2010)

Starch Italics Crops and Grains

April/May 2010 © GIRACT 2010 P a g e 3

Maize Collapses More Than 5% On Fresh Arrivals Of Rabi Crop

The spot prices of maize shrugged off by almost 5% in

last month. As per market sources, the daily fresh

arrivals of around 60 000 to 70 000 bags were seen in

mandies of Bihar, while 25 000 to 30 000 bags from

Karnataka and Andhra Pradesh. According to the latest

data release by Ministry of Agriculture, the total

production of maize during the current rabi season is

likely to be around 5.6 mio t against 5.6 mio t reported

last year due to favorable weather conditions during the

crop maturity period.

On the other side, weak demand was seen in domestic

and international market. Similar trend was also seen in

international market as low prices of maize in other

producing countries such as United States and Brazil

along with strengthening in rupee against dollar makes

the Indian corn unviable at international place.

Therefore, the spot prices of maize at Nizamabad mandi

were quoting at INR 810 to 815 per quintal from

INR 850 to 855 per quintal while prices at Delhi mandi

were at INR 955 per quintal, down INR 45 per quintal

in last one week. (indiainfoline.com 29 Apr 2010)

Glencore sets up new grain handling facility in East Anglia

Glencore sets up new grain handling facility in East

Anglia. This harvest a new Glencore grain facility will

open specifically handling wheat from the Ely area

destined for the new Ensus bio-ethanol plant on

Teesside.

As sole supplier to the bio-ethanol refinery - which

takes in 1.2 mio t per year - Glencore has been looking

to source greater quantities of feed grade wheat. The

Cambridgeshire area was identified as a good source for

surplus grain following the closure of Syral's

Icklingham starch processing facility near Bury St

Edmunds and so a strategic alliance was set up with

Fengrain. (Continued in next column)

Glencore sets up (Contd.)

The East Anglian grain trader will be the preferred

supplier to the new Ely terminal and will also

contribute significant tonnages to other Glencore

facilities. Glencore will gain long-term use of

Fengrain's store at Wimblington near March. (fwi.co.uk

31 May 2010)

Ethanol byproduct grows in popularity with Chinese

But for more than a year, China has slipped into the

back side of the American corn market by buying dried

distillers grains, a byproduct of ethanol, to feed its

livestock. Distillers grains are the shell and some of the

inside matter of the kernel after the starch is removed to

make ethanol. U.S. ethanol plants annually produce the

equivalent of about 1.2 bio bushels of distillers grains.

Total corn production exceeds 13 bio bushels. In 2008,

with a metric t equaling 39 bushels, the Chinese bought

8 mio t of distillers grains. Last year, they bought

524 mio t. In January and February, they bought

240 mio t of the grains, according to the U.S.

Grains Council.

Those purchases put the U.S. dried distillers grains

export market on its way to surpassing the 5.4 mio t

sold worldwide last year, a big jump from the 1 mio t

exported in 2006. The Chinese are buying American

dried distillers grains to feed their 443 mio hogs

because the price is right. A ton of U.S. corn costs

about USD 125. On Wednesday, a distillers grains

futures contract for July delivery could be purchased for

USD 98 on the Chicago Board of Trade.

Although information is sketchy, the Chinese corn crop

apparently has fallen short. Prices have risen above

USD 7 per bushel in Chinese markets, forcing the

Chinese to look elsewhere for cheaper corn and

distillers grains protein. Distillers grains are generally

put into animal feed at a ratio ranging from 20% for

hogs to 40% for cattle. (Continued on next page)

Starch Italics Crops and Grains

April/May 2010 © GIRACT 2010 P a g e 4

Ethanol byproduct (Contd.)

The exports of distillers grains from U.S. ethanol

plants come at a good time. Just as U.S. ethanol

production is approaching its maximum allowed under

blending limits, so are the boundaries of the domestic

distillers grains market diminished by reduced cattle

and hog herds.

For Iowa's 39 ethanol plants, the boom in distillers

grains exports is not only a financial bonus but also an

answer to the food-vs.-fuel criticism that has dogged

corn-based bio-fuels. Besides China, the biggest

customers for distillers grains are the same folks who

buy U.S. corn: Canada, Mexico and South Korea.

China's hog population is huge-443 mio vs. 66 mio in

the United States and 19 mio in Iowa-and the Chinese

don't have the same qualms about feeding distillers

grains to pigs that many American hog feeders have.

The hog-feed portion of the American distillers grains

market hasn't gone much above 25%, largely because of

fears that the finer-grained distillers grains are harmful

to the hog stomach.

Another development is the opening of a distillers

grains futures contract on the Chicago Board of Trade.

"Foreign buyers particularly want a place where they

can hedge their purchases," said Ives, referring to the

practice of buying options above and below target

prices.

So far, corn and distillers grains have co-existed in

markets. But the Agriculture Department in April

trimmed its export forecast for corn, noting competition

with distillers grains. The department reversed itself last

week and increased the forecast without comment, but

apparently in response to the expected Chinese

purchases of corn.

"I think at some point (distillers grains) will be

considered a competitive threat to corn, especially since

they are cheaper than corn," said Darin Newsom, grain

analyst with DTN in Omaha. (desmoinesregister.com

13 May 2010)

DA cites importance of cassava

According to Milo Gordo, in-charge of the Seed Pieces

of Corn and Cassava unit of DA-Manambolan, pointed

out that cassava can flexibly be used in many ways.

During his lecture on corn and cassava planting, Milo

explained that cassava starch and pellets can be used as

animal food, alcohol, mono glutamates, sweetener,

medicine, glue, biodegradable products, plywood

binder, paper, textile, and food for human consumption.

He said that 5% of cassava production is used as food,

20% as starch, and 75% as animal feeds. Milo refuted

superstitious belief of farmers that planting cassava

makes the soil parched and dehydrated after harvest,

discouraging some farmers not to plant cassava.

Milo said that cassavas sold in public markets are

mainly used for food consumption which draws a huge

demand for animal feeds. He assured the farmer-

participants to the lecture, that San Miguel Corporation

guaranteed to limitlessly purchase cassava for P8.50 per

kilo in granulated or pelletized form. Moreover, Milo

discussed that the methods of planting the cassava is a

factor that every farmer should consider for it greatly

affects production and growth.

According to the study conducted by PhilRoot Crops,

land preparation for cassava can be through flat, ridge,

and flat plus hilling up which have similar effects to

cassava production. Short stems – 25 centimeters –

produces high yield compared to longer stem-cuttings

at 34.8 root yield (ton per hectare).

Valeriano Marqueza, 60-year-old corn farmer in

Davao del Norte, is one of the participants who

received one kilo of hybrid corn during the lecture. He

said that the lecture helped him realized a lot about

cassava production. Meanwhile, Jimmy Adeser, a 48-

year-old farmer from Asuncion said that he is very

thankful of the free lecture on cassava production as he

proudly held a liquid fertilizer he got as freebie during

the event. (mb.com.ph 10 May 2010)

Starch Italics Crops and Grains Starches and Derivatives

April/May 2010 © GIRACT 2010 P a g e 5

Belarus’ agricultural industry can be reliable source of currency supply

The agricultural industry of Belarus can be a reliable

source of foreign currency revenues, Deputy Prime

Minister of Belarus Ivan Bambiza said at a joint session

of the two chambers of the National Assembly and

members of the government of Belarus on 28 May.

The programme provides efficient mechanisms for

intensifying the activity of the agricultural industry,

Ivan Bambiza said. The concept is set to address the

issues concerning the state, economic and socio-

democratic policy as well as the problems of the

regional development.

Also Deputy Prime Minister of Belarus Ivan Bambiza

has admitted that Belarus should reduce the import of

potato products to the maximum. “The issue concerning

the potato market revival and substitution of the import

of potato products should be settled by 2015,” the Vice

Premier said.

The matter concerns the potato culture innovation

development, potato processing with the use of the

latest technologies. “It is not good that, with the annual

potato production of 9 mio t, we import starch, chips

and other potato products,” Ivan Bambiza said.

According to the experts, Belarus can export 1.5 mio t

of potato annually.

Asked by the chairman of the Council of the Republic

Anatoly Rubinov what the prospects of the potato-

growing industry were, the Vice-Premier said that one

of the main reasons hampering the development of the

industry is the absence of advanced potato-storage

facilities. Despite the high production volume (9 mio t

of potatoes a year) Belarus has to import starch and

frozen peeled potatoes.

The problem can be addressed through the selection of

new varieties and construction of potato storage

facilities, he said. Belarusian scientists are working on

the new sorts of potatoes. (Continued in next column)

Belarus’ agricultural (Contd.)

Yet, the content of starch is still low, 8-11%. Its content

should be above 20% for potato processing to be

profitable.

Ivan Bambiza said that by the end of 2010 Belarus

intends to complete the program to construct potato

storage facilities. It has been fulfilled at 58%. Therefore

the government intends to “take its implementation

under control. “There is no alternative for us. This is the

only way we can ensure potato export,” Ivan Bambiza

said. According to him, now the potato storage losses

reach 30-50%, which makes potato production an

unprofitable business.

The Vice Premier is sure that in the future Belarus will

intensify the introduction of sci-tech innovations and

technological modernization, the use of resource-saving

technologies for plant growing and cattle breeding.

These measures will allow the country to increase

agribusiness‟ profitability up to 30%, Ivan Bambiza

underscored. (isria.com 28 May 2010)

Ohio Farmers Unhappy With Attack on Corn Sweetener

Food companies that remove high-fructose corn syrup

from their products threaten the jobs of farmers in Ohio,

the nation's No. 7 grower of corn, state agriculture

leaders say. Nonetheless, PepsiCo Inc. has removed all

high-fructose corn syrup from sports drink Gatorade

and replaced it with cane sugar. And ConAgra Foods

Inc. said last week it has removed high-fructose corn

syrup from its Hunt's brand ketchup. "Farmers are

extremely concerned," said Fred Yoder, whose family

farm near Plain City sends 80% of its corn directly to a

corn-sweetener refinery.

"Not only do farmers lose, but the consumer is the

biggest loser because food costs could go up 20 to 30 %

if they continue to switch from high-fructose corn

syrup." (Continued on next page)

Starch Italics Crops and Grains Starches and Derivatives

April/May 2010 © GIRACT 2010 P a g e 6

Ohio Farmers (Contd.)

Ohio produces USD 2.1 bio worth of corn, according to

the state Farm Bureau. Yoder argues that 1 700 corn-

refining employees and 2 500 corn farmers in Ohio

stand to lose their jobs if food producers turn their

backs on high-fructose corn syrup. About 58% of

consumers say they are concerned that high-fructose

corn syrup poses a health threat in the foods they eat,

according to a study last year by NPD Group Inc., a

market research company in Port Washington, N.Y.

Forty-one new soft drinks and energy drinks were

introduced last year proclaiming they contained no

high-fructose corn syrup, said Mintel International

Group, a Chicago-based research group. So far this

year, at least 14 new soft drinks and energy drinks have

been put on the market advertising their lack of high-

fructose corn syrup, Mintel spokeswoman Christine

Coombes said. (usnews.com 27 May 2010)

Researchers Attempt Microscopic Chemical Imaging for Starch Granule Analysis

The team comprises David Wetzel, Kansas State

University‟s professor of grain science and industry;

John Reffner, a chemistry professor at John Jay

College, City University of New York; and Yong-

Cheng Shi, an associate professor at Kansas State

University for grain science and industry.

The new finding can be used by the starch

manufacturers to analyze whether the modifying agent

is spread uniformly among all individual starch

granules during the production process. The team was

assisted by the K-State graduate research assistant in

the grain science and industry, Mark Boatwright, for

data processing.

(Continued in next column)

Researchers Attempt (Contd.)

As a single starch granule measures 15 µm in diameter,

it is difficult to isolate the modification. For this

analysis, the team used the advanced synchrotron

infrared microscope at the Brookhaven National

Laboratory located in Upton, New York. This

microscope utilizes light that is extremely bright and

does not have thermal noise. Although the light is

focused narrowly resembling a laser, it has a range of

wavelengths.

Wetzel explained that the technology was used to

perform an apparently impossible task, but it was

accomplished. In addition to the food industry, the

newly developed techniques can be applied in various

other starch-using industries such as corrugated board

adhesives, body powder, papermaking and clothing or

laundry starch, Wetzel said.

The techniques can also be used as a viscosity adjuster

in oil exploration for drilling fluid. Wetzel added that

the modified starch is a major business, and it is

adapted to offer suitable emulsifying properties. Further

he said that whoever deals with microscopic-level

material or starch and doubts chemical heterogeneity

can use the same technique for analysis. (azooptics.com

11 May 2010)

Team of K-State researchers image ester modification of microscopic single starch granules, a scientific first

The trio was able to apply microscopic chemical

imaging to single modified starch granules. Starch

manufacturers can use this to determine if the

modifying agent used in the production process is

uniformly distributed across individual modified starch

granules.

Mark Boatwright, K-State graduate research assistant in

grain science and industry, Runnells, Iowa, assisted

with data processing for the study.

(Continued on next page)

Starch Italics Starches and Derivatives Plastics

April/May 2010 © GIRACT 2010 P a g e 7

Team of K-State (Contd.)

Wetzel said the techniques developed in the study can

be used in industry, not only for food, the largest

industry for starch, but also for papermaking,

corrugated board adhesives, clothing/laundry starch,

body powder and as a viscosity adjuster for drilling

fluid used in oil exploration, among other uses.

"Now, we can basically show that anyone dealing with

starch or any other particle of material that's

microscopic in size and that suspects chemical

heterogeneity can follow the same lead and use the

same technique to check," Wetzel said.

Isolating the modification within an individual granule

was no easy feat, as a single modified starch granule

has a diameter of 15 microns -- or one-fifth the width of

a human hair. A normal human hair measures

80 microns wide. A micron is one-millionth of a meter.

To analyze the single granule at that size, the

researchers travelled to the National Synchrotron Light

Source at Brookhaven National Laboratory in Upton,

N.Y., to use the facility's advanced synchrotron infrared

microscope. The synchrotron microscope uses

extremely bright light that has no thermal noise. It is

narrowly focused like a laser but contains a continuum

of wavelengths.

"We used this high technology to accomplish this

supposedly impossible task," Wetzel said. "But, as it

turns out, this task was achievable.

The results were reported in the March 2010 edition of

the journal Applied Spectroscopy, "Synchrotron

Infrared Confocal Microspectroscopical Detection of

Heterogeneity Within Chemically Modified Single

Starch Granules.

"Wetzel has recently pursued this work further, using

the Wisconsin synchrotron instrumentation. Wetzel has

been a guest lecturer at synchrotrons in Germany,

Canada and Taiwan on the subject of studying

biological material with synchrotron radiation.

(articleant.com 4 May 2010)

From pond scum to plastics: Algae might just be the next big bio-resin

Even as the general appreciation for all things natural

reaches stratospheric heights, most of us probably

remain noncommittal about algae. On the one hand it‟s

great in sushi, but on the other hand it chokes the boat

propeller in shallow water.

Bio-plastics maker Cereplast Inc., however, hopes to

turn these simple sea-borne organisms into a game-

changer for plastics manufacturers looking to go green.

The company is planning to commercialize its first

grade of algae-based resins by the end of the year,

intended to complement its existing Compostables and

Hybrid resins product lines.

Obviously no stranger to the world of renewable

materials, Cereplast already uses starches from corn,

tapioca, wheat, and potatoes in the manufacture of the

Compostables and Hybrid materials. So why bother

adding yet another biomass to the mix? Because,

according to Cereplast researcher William Kelly, algae

is cheap, plentiful, doesn‟t take away from the human

food chain, and represents the near-perfect closing of

the renewable products loop.

Cereplast dries the material at its new plant in Seymour,

Ind. until the biomass becomes a powder. To date,

Cereplast has made a hybrid prototype, with organic

ingredients and polypropylene or other traditional resins

mixed with between 35 and 50% algae powder using a

proprietary process.

The algae-based biomass behaves like traditional

starch-based resins, Kelly continued, and also has a

high heat tolerance. Cereplast is currently in contact

with several companies that plan to use algae to

minimize the carbon dioxide and nitrous gases from

polluting smoke-stack environments, and also with

potential chemical conversion companies that could

convert the algae biomass into viable monomers for

further conversion into potential biopolymers.

(canplastics.com 15 May 2010)

Starch Italics Plastics

April/May 2010 © GIRACT 2010 P a g e 8

Bio-plastics “The Reshaping of an Industry”

The Plastics Industry is undergoing a dramatic

transformation as bio-plastics primarily derived from

renewable feedstocks continue to gain recognition in a

market dominated by petroleum-based products. Bio-

plastics have already reached over 1 mio t capacity,

with 2011 growth rates conservatively projected at 15-

20%.

Initial plant sugar-/starch-based offerings targeted

single-use applications. These generally advocated

composting as a new disposal option, coupled with a

lower “carbon footprint” than traditional plastics. The

bio-plastics market is now refocusing on the more

durable, and potentially more demanding, applications

sector of the plastics landscape. Reducing oil

dependence, environmental impact and human health

concerns, are now the key drivers.

To meet this challenge the bio-plastics industry is

reshaping to further enhance performance of existing

bio-based products by the use of additives, blends and

alloys. Another recent exciting dynamic is the potential

to manufacture new and existing building blocks

(monomers) derived from non-oil-based sources,

heralding the vision of conventional plastics with

known properties but no longer made from oil.

(packagingessentials.com 27 May 2010)

Scientists in Peru develop a plastic made from potato starch

A team of Peruvian scientists from the Universidad

Católica del Perú has created a plastic made from

potatoes, that is bio-degradable and can become an

alternative to mitigate the effects of pollution and also

provide added value to Peruvian agricultural

production.

The new material, made from potato, sweet potato and

yuca starch, is bio-degradable and suitable to

biocompost, according to the project's Coordinator,

Fernando Torres. (Continued in next column)

Scientists in Peru (Contd.)

Most bio-degradable plastics are made from corn,

which is abundant in the US, but this new product,

which is still under research, is made from Peruvian

potato, and the scientists team are currently trying to

find out which variety is better for these purposes.

The team has already produced plastic plates and films,

that can be used for making trays and bags.

However, the biggest challenge for the team will be

moving from researching stage to actual large-scale

production, since plastic production industry is almost

non-existent in Peru.

(livinginperu.com 21 May 2010)

US bio-plastics firm monitoring European market before expanding ops

Cereplast said a new deal with Bunge will see it expand

production of its bio-plastic food packaging in Brazil

but that any European growth plans were under review

for up to two years while it assesses regional demand.

The US-based company told FoodProductionDaily.com

that it expected its European bio-plastics development

strategy to crystallise by mid-2012. Cereplast outlined

its plans for Europe as it announced a boost to its

operations in South America. (Continued on next page)

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US bio-plastics (Contd.)

The company said it had signed a deal with Bunge

Alimentaris, a Brazilian subsidiary of Bunge Ltd, that

will see the food giant expand its use of Cereplast‟s

eco-friendly resins in food packaging.

Cereplast said it had launched its products in the

European arena this year. It added that its direct

presence in France and Germany and a distribution deal

with A Schulman to sell its range of resins was “only

the start”. Under the agreement, Schulman distributes

Cereplast Compostables and Hybrids Resins to

converters and manufacturers throughout Europe.

The bio-plastics producers said all its resins replace a

“significant percentage” of petroleum-based additives

with starches made out of corn, wheat, tapioca and

potatoes.

The company is targeting Europe as it believes there is

huge growth potential for bio-plastics – which currently

account for less than one per cent of the European

plastics market. Citing a 2007 report from analysts

Frost and Sullivan, the company said that Europe had

“experienced an exponential growth and demand for

bio-plastics that has outstripped supply”. Cereplast

added that as demand remained higher than supply,

there was “sufficient room for new participants as well

as existing companies to grow”.

(foodproductiondaily.com 25 May 2010)

Biotechnology to expand biomass use in China

Novozymes, a global bio-innovation company based in

Denmark, and Dacheng Group, a major starch

processing company based in China, announced April

29 an agreement to make plastics from agricultural

waste. The two companies have agreed to expand their

cooperation in developing biochemicals derived from

biomass and to promote the industrialization of plant-

based glycol. (Continued in next column)

Biotechnology to expand (Contd.)

Glycols are biochemicals used in household cleaning

products, cosmetics, and used as building blocks for

making polyesters and plastics.

Under the agreement, Novozymes will provide

Dacheng Group with knowledge and the enzymes for

converting biomass such as corn stover, wheat and rice

straw into sugar. Dacheng Group will then convert the

sugar into glycol. The facility, located in northeastern

China, is expected to produce plant-based biochemicals

within a few years.

China currently produces 700 mio t of agricultural

waste per year, including corn and wheat stovers, rice

straws, and others. Much of this waste is burned

directly in farm fields, which can cause serious air

pollution, rather than using this waste to develop new

technologies and new sources of clean energy.

Moreover, the development of plant-based glycols

could generate new income sources for China‟s farmers

and lessen China‟s dependence on imported crude oil.

Novozymes also released its first quarter performance

results showing strong performance in the first quarter

and increased expectations for 2010.

(biomassmagazine.com 29 April 2010)

Valeric fuels: a new generation of bio-gasoline and bio-diesel from lignocellulose

Jean-Paul Lange and his co-workers at Shell in

Amsterdam (Netherlands), Cheshire (UK), and

Hamburg (Germany) have now developed a highly

promising new generation of bio-fuels based on wood.

As the scientists report in the journal Angewandte

Chemie, modern vehicles could use it without

modification, and the existing network of fueling

stations could be used for distribution.

(Continued on next page)

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Valeric fuels (Contd.)

The first generation of bio-fuels was based on sugars,

starch, and oils derived from plants. However, because

these raw materials are primarily used for food, they

could not be supplied in the quantities required by the

transportation sector. One potential alternative is

lignocellulose (latin lignum = wood), which makes up

the cell walls of woody plants. This material is more

widely distributed and cheaper, and its use can be

produced more sustainably. However, until now

lignocellulose has required complex and expensive

processing for conversion to bio-fuels.

There is one compound that is claimed to be obtained

from lignocellulose through a simple acid hydrolysis:

levulinic acid, a product otherwise produced from

glucose and used as an additive in the cosmetics,

plastics, and textile industries. However, to date, it has

not been possible to convert levulinic acid into any

fuels with satisfactory properties.

Lange and his co-workers have now found the right

trick: they hydrogenated levulinic acid in a newly

developed process to make valeric acid, which they

then esterified to make valerates (some valerates are

used as artificial flavors). This produces a new family

of fuels, known as valeric bio-fuels. Depending on the

reactants used in the esterification, the fuel may be in

the form of bio-gasoline or bio-diesel, and can be mixed

with other fuels currently available. Modern cars can

use them without any modification to their motors;

similarly, the existing network of fueling stations could

be used for their distribution.

The new fuels have passed a long list of exacting tests.

In one road test, ten current types of vehicle, new and

used, were fuelled exclusively with a mixture of normal

gasoline mixed with 15% by volume of the vareric bio-

gasoline, and were sent out on the road to cover 500 km

a day. After a total distance of 250 000 km, no negative

impacts were found in the motor, tank, or fuel lines.

(physorg.com 10 May 2010)

Petrobras in bio-fuels tie-up with Tereos

Petrobras, Brazil‟s national oil company, and Tereos, a

French maker of sugar and starch products, have agreed

to invest up to RD2.2bn (USD 1.2bn) in a strategic

partnership to develop opportunities in Brazil‟s fast

growing ethanol industry. It follows other significant

investments in Brazilian bio-fuels by international oil

companies including BP and Shell.

Petrobras, via its subsidiary Petrobras Biocombustível,

will invest an initial RD682m in a subsidiary of Açúcar

Guarani, a publicly traded Tereos subsidiary in Brazil

that makes sugar and ethanol from sugar cane. It also

committed to a further RD929m as the partnership buys

new assets and otherwise develops its business in Brazil

over the next five years. Tereos may also invest an

additional RD600m during the first year of the

partnership.

Petrobras has set aside USD 2.8bn between 2009 and

2013 for investment in ethanol and bio-diesel, mostly in

Brazil, to meet increasing domestic and global demand

for bio-fuels.

These engines may run on gasoline, ethanol or any

mixture of the two, allowing motorists to decide at the

pump which fuel to buy.

Guarani will be delisted and Petrobras will then take an

initial 26% stake in the company, rising to 45.7% as it

injects the second-stage RD929m. It may ultimately

increase its stake in Guarani to 49% should it decide to

make further investments.

In April last year, BP made the oil industry‟s first

significant investment in bio-fuels when it joined two

Brazilian agribusiness and sugar and ethanol companies

to create Tropical Bio-Energia, in which it is committed

to funding half of total investments of RD1.66bn.

(ft.com 2 May 2010)

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PTT considers B300m biogas-for-vehicles venture

PTT Plc will spend about 300 mio baht to develop

biogas for vehicles, according to Permsak

Shevawattananon, a senior executive vice-president of

the majority state-owned energy company.

Biogas or methane would be processed from

agricultural waste into gas and could be an alternative

to liquefied petroleum gas (LPG) or natural gas for

vehicles (NGV). PTT is developing two methane gas

production units with an investment of 200 mio baht on

a pig farm in Chiang Mai. Daily methane output of 6.5 t

would be equivalent to 6 400 lpd of diesel.

Another project is in Ubon Ratchathani, where methane

gas will be made from cassava starch waste. PTT will

spend 80 mio baht to build the facility that is expected

to start operating by the middle of next year. Its daily

output of 8t would be equivalent to 8 kl of diesel.

(bangkokpost.com 17 May 2010)

Nanotechnology for cheaper bio-fuel

Researchers at Louisiana Tech University are planning

to decrease the cost of the process of bio-fuel

production by using new nanotechnology processes

developed at the university. The new technology can

immobilize the expensive enzymes used to convert

cellulose to sugars, allowing them to be reused several

times over, thereby significantly reducing the overall

cost of the process.

Novozymes‟ tech to convert agricultural waste into bio-

fuel: Danish biotechnology company Novozymes has

developed a new enzyme that can convert maize, wheat,

straw and woodchips into ethanol for as little as

32 pence per l. The new enzyme, known as Cellic

CTec2, breaks down cellulose in the waste into simple

sugars, which are then used to produce the ethanol.

(ecofriend.org 31 May 2010)

Antibiotics concerns ooze into ethanol process

Washington, D.C. - The worries about antibiotic

resistance and the rise of superbugs have reached into

the ethanol industry. Ethanol producers have long used

antibiotics to control bacteria that can contaminate the

fermentation process. But now, the Food and Drug

Administration is developing a policy to regulate the

use of the drugs and is conducting tests in Iowa and

nationwide to determine the extent to which the

antibiotics are getting into livestock feed produced by

the plants.

The feed product, known as distillers grains, is a

lucrative byproduct of the industry and a major source

of feed for beef cattle and dairy farms, helping to keep

down their production costs even as the price of corn

has risen in recent years. The FDA's concern is with the

potential human health hazards from using antibiotics

such as penicillin and viriginiamycin that many plants

use to prevent bacteria from contaminating the

fermentation tanks.

Golden Grain, which produces about 1 mio t of

distillers grains daily, uses virginiamycin. It is approved

by the FDA as an animal drug but not for use as a feed

additive because it's not a permitted food additive,

Allen said. The company currently had FDA clearance

for the drug to be used by ethanol plants, the

spokesman said.

Monte Shaw, executive director for the Iowa

Renewable Fuels Association, said the FDA seems to

be regulating distillers grains as human food, and "that

might be overdoing it. The concern for ethanol

producers is that the alternatives to antibiotics typically

cost more.

One product, made from hops, an ingredient in beer, is

being used in more than 40 of the 201 ethanol plants

nationwide, according to the manufacturer, BetaTec

Hop Products, the offshoot of a company that supplies

hops to brewers. (Continued on next page)

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Antibiotics concerns (Contd.)

The company said the cost to producers can be more or

less than the antibiotics they're now buying, depending

on how big the contamination problem is. With large

amounts of contamination, antibiotics will be cheaper.

Seven Iowa plants use the hops product and five more

are trying it, said Lloyd Schantz, senior vice president

of BetaTec. Poet produces 1.6 bio gallons of ethanol

annually at 26 plants in Iowa and other states.

DuPont makes another alternative, chlorine dioxide,

which is sold under the trade name FermaSure. DuPont

said the costs of FermaSure vary by facility. In a

statement, DuPont said sales of FermaSure have been

doubling annually since it was launched in 2007, but

the company would not disclose how many plants use

it.

Central Minnesota Ethanol Cooperative of Little Falls,

Minn., started using the DuPont product in 2007 and

markets its distillers grains as free of antibiotics. The

issue could have implications for the dairy industry,

which relies heavily on distillers grain as a less

expensive substitute for some corn.

Depending on FDA testing finds, dairy producers may

not be able to feed the distillers grains to their cattle,

Jamie Jonker, vice president of scientific and regulatory

affairs with the National Milk Producers Federation,

recently told the National Research Council. "We have

very strict regulations guiding what kind of antibiotics

can be used in feed for lactating dairy cattle," he said.

(desmoinesregister.com 30 May 2010)

Details to come on advanced bio-fuel funds

Agriculture Secretary Tom Vilsack announced on May

4 that the USDA is planning to accept applications for

the Bio-refinery Assistance Program, Repowering

Assistance Program and the Bio-energy Program for

Advanced Bio-fuels.

The Bio-energy Program for Advanced Bio-fuels works

to support and ensure expanding production of

advanced bio-fuels by providing payments to eligible

advanced bio-fuels producers.

Advanced bio-fuels are derived from renewable

biomass, other than corn kernel starch. These include

cellulose, sugar and starch, crop residue, vegetative

waste material, animal waste, food and yard waste,

vegetable oil, animal fat, and biogas

The advanced bio-fuels program is an important part of

achieving the Obama administration's goal to increase

bio-fuels production and use.

USDA's Bio-refinery Assistance Program provides

guaranteed loans to develop and construct commercial-

scale bio-refineries or to retrofit existing facilities using

eligible technology for the development of advanced

bio-fuels. The amount of a loan guaranteed for a project

under this program cannot exceed 80% of total

eligible project costs.

The Repowering Assistance Program is designed to

encourage the use of renewable biomass as a

replacement fuel source for fossil fuels used to provide

process heat or power in the operation of eligible bio-

refineries. Vilsack today also announced that USDA is

seeking applications to increase the production and use

of renewable energy sources. Funding is available from

four USDA Rural Development renewable energy

programs authorized by the Farm Bill.

(biodieselmagazine.com 5 May 2010)

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ATCO Midstream & Grow-Gen Energy to Develop Canada's First Integrated Bio-refinery

ATCO Midstream and Grow-Gen Energy announced

today that they have signed an initial partnership

agreement to develop Canada's first Integrated Bio-

Refinery(TM). The refinery will use organic wastes and

high-starch wheat to create green electricity, bio-

fertilizer and fuel ethanol. "ATCO is proud to be a

partner in this world leading technology," said Nancy

Southern, President and CEO of the ATCO Group.

"This project will generate clean electricity as well as

produce ethanol and bio-fertilizer. It is at the forefront

of environmental innovation." The project involves the

expansion of an existing biogas-to-electricity facility

east of Edmonton, near Vegreville, Alberta. The plant

currently uses manure from Highland Feeders, one of

Canada's largest feedlots, to create biogas and green

power.

The resulting green energy will be used to fuel a new

ethanol production system. The ethanol will be derived

from locally grown high-starch wheat, as opposed to

high-protein wheat used for human food products.

Under the terms of the agreement, ATCO Midstream

would operate the bio-refinery and be a part-owner.

Grow-Gen Energy L.P. of Hairy Hill, Alberta would be

the other significant owner, along with several investors

including a farmer-owned grain procurement partner,

Providence Grain Group Inc. of Fort Saskatchewan.

"This project greens Alberta's energy basket using our

own home-grown, globally patented technology," said

Shane Chrapko, CEO of Grow-Gen Energy.

"By linking efficient food production with the growing

demand for renewable energy, we are taking a major

step forward in improving the sustainability of two key

industries in the province. (Continued in next column)

ATCO Midstream (Contd.)

"The entire process is virtually waste-free. The residual

grains that remain after the ethanol is made will be fed

to cattle at a nearby feedlot, while biofertilizer, a

byproduct of the biogas production, is sold to local

farmers and oil and gas drilling companies for soil

enhancement and remediation.

The completed bio-refinery will generate 40 mio l of

fuel ethanol, 10 kt of premium bio-fertilizer and

2.5 MW of green electricity each year. It will also

create more than 100 kt of greenhouse gas emissions

offset credits annually. Operations are scheduled to

commence in mid-2012. ATCO Midstream provides

natural gas gathering, processing, storage and natural

gas liquids solutions to the Canadian natural gas

producing sector. (digitaljournal.com 4 May 2010)

Winter Barley Shows Promise for Ethanol

Researchers at Virginia Tech are developing winter

barley varieties with an eye on improving the traits

needed to make a successful ethanol feedstock. The

hull-less barley cultivar named Eve has a 62% starch

content, 9.3% protein, 58 pound test weight. That

compares with corn‟s 70% starch content, 8% protein

and 56 pound test weight. Research results on winter

barley quality were reported in a paper published in the

Journal of Cereal Science 51 (2010):

“Grain composition of Virginia winter barley and

implications for use in feed, food, and bio-fuels

production.”

Field trials indicate that Eve is likely to yield up to

80 bushels per acre. The newest hull-less cultivar Dan

exceeds Eve in yield and test weight. Newer hull-less

lines have yields that are 10 bushels per acre higher

than that of Eve. (Continued on next page)

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Winter Barley (Contd.)

Work on the region‟s first barley-based ethanol plant,

65 MMgy Appomattox Bio-Energy in Hopewell, Va., is

progressing and on track for a late spring completion.

Perdue Agribusiness is procuring grain for the new

ethanol plant which is expected to use between 20 mio

and 30 mio bushels of barley per year.

The relative price of feed barley is typically lower than

both of these crops, and it has the potential of

producing distillers grains with higher protein and

lysine content for livestock feed than that from corn. To

date, use of traditional hulled barley as an alternative to

corn in ethanol production has been limited by its lower

starch concentration, higher fiber concentration, and

abrasive nature of the hull which contains silica that

causes excessive wear on equipment.

New hull-less varieties developed at Virginia Tech

solve the problem via incorporating a trait that results in

a loosely attached hull that easily separates during

combining and grain cleaning. Complementary research

being conducted at the USDA Agricultural Research

Service‟s Eastern Regional Research Center in

Wyndmoor, Pa., has developed beta-glucanase enzymes

which both decrease viscosity problems and improves

ethanol conversion. (ethanolproducer.com 10 May

2010)

Global Bio-chem reported modest net profit for the year as performance rebounded in 2H 2009

Given that the market recovery momentum continues

since the second half of 2009, Global Bio-chem

Technology Group Company Limited and its

subsidiaries sees continuous improvement in its

operating environment and is optimistic about the

outlook for 2010. Despite incurring a net loss in the

first half of 2009, the Group reported a modest net

profit for the year of HKD 14 mio for the year ended

31 December 2009. (Continued in next column)

Global Bio-chem(Contd.)

However, after taking into account the minority

interests, the Group reported a loss attributable to

owners of the Company of HKD 15 mio. The revenue

and gross profit for the year amounted to

HKD 7 838 mio and HKD 1 057 mio respectively.

The decline in operating results was mainly attributable

to significant decrease in the average selling prices of

various products and lower sales volume of certain

businesses due to the challenging operating

environment in 2009.

"2009 was by far the most challenging year for the

Group since its listing. However, the Group's operations

had started to rebound since the second half from rock

bottom in the first half, with improvement in both sales

volume and selling prices of various products.

The Group's overall operating performance in early

2010 surpassed that of the same period in 2009,

indicating a positive trend for the current year," said Mr

Liu Xiaoming, Co-chairman of Global Bio-chem.

The board of directors of Global Bio-chem did not

propose any final dividend for the year ended

31 December 2009 (2008: HK 1.0 cents).

Although the average selling prices of the Group's

upstream products and some of its downstream

products gradually rebounded in the second half of

2009, the Group's average selling prices for the full

year of 2009 were inevitably depressed by

approximately 10% year on year.

The revenue and gross profit of upstream products,

including corn starch, gluten meal and other corn

refined products, amounted to HKD 2 354 mio and

HKD 286 mio respectively, representing a year-on-year

decrease of 15% and 19% respectively.

(Continued on next page)

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Global Bio-chem(Contd.)

Revenue and gross profit of downstream products,

including amino acids, corn sweeteners, modified starch

and polyol chemical products, in 2009, amounted to

HKD 5 348 mio and HKD 770 mio respectively,

representing a year-on-year decrease of 10% and 44%

respectively.

The Group's polyol chemicals business displayed poor

performance, affected by a few unfavorable factors

including the slip of crude oil price and high market

inventories of imported chemicals, which caused the

price of related chemicals to plunge to rock bottom. A

provision of closing inventories of polyol chemical

products amounting to approximately HKD 91 mio had

been made.

The operating environment of sweeteners in the first

half of 2009 remained severe after the outbreak of

melamine-tainted food incident in PRC and the global

financial crisis in 2008. The sales volume and revenue

of the sweeteners division dropped by approximately

16% and 15% respectively, as compared with those of

2008.

However, the demand and selling prices picked up

rapidly since the second half of 2009. As a result of a

relatively stable average selling price and tight cost

control, the gross profit of the sweetener division

declined only by approximately 3 per cent year on year.

Global Bio-chem is the largest vertically integrated

corn-based biochemical product manufacturer in Asia

with an annual corn processing capacity of 3.4 mio t.

The Group is one of the pioneers in applying corn

starch as raw material for the commercial production of

polyol chemical products. (irasia.com 2009)

Tamworth's hard to beat

Japan is developing quite an appetite for manufacturing

materials derived from northern NSW Prime Hard

wheat–products processed right on our growers‟

doorstep in Tamworth. Itochu Corporation, whose

diverse manufacturing business ranges from fishcakes

to plasterboard, is so impressed with northern NSW‟s

starch and gluten quality the company has invested

heavily in the newly-formed supplier, Grain Products

Australia (GPA).

Itochu already consumes all GPA‟s 3 500 t of glucose

production each year. It now wants to buy vast

quantities of modified starches from GPA from 2011

following an USD 8 mio upgrade at the Tamworth plant

later this year which it has helped fund.

The upgrade and Itochu starch order will return the site

to full production capacity for the first time since GPA

purchased it and possibly result in a small expansion of

staff which already numbers around 50. GPA currently

consumes about 45 mio t of hard wheat annually from

farms north of Tamworth and is expected to need

65 mio t in 2011, if not closer to 90 mio t to fill its

expanding order book.

New machinery from Finland, Sweden, Spain and

Japan is expected to be installed and operating in

November. It will enable native starch to be further

refined into a premium product for use in Itochu‟s food

products. GPA‟s drive to secure the Japanese market

has delivered the Tamworth plant greater profitability

than it enjoyed under previous owner, the US-based

Penford Corporation.

The key to this turnaround has been former Penford

employee and Tamworth plant general manager, Henry

Segerius, who is also a director of GPA. With more

than 20 years‟ experience in the industry–plus a

previous career with sugar refiner CSR – Mr Segerius is

one of four GPA directors who took over management

of the Tamworth plant last November.

(theland.farmonline.com.au 17 April 2010)

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Featured Earth Day Company: Cereplast Natural Plastic (NASDAQ: CERP)

Today is Earth Day so it seemed appropriate to

highlight one of our “green” companies, and shed some

light on a real-world application and how resources are

renewed for bio-plastics and bio-resins is a company

which designs and manufactures proprietary starch-

based and algae-based bio-plastic resins. The stock

began trading on the NASDAQ earlier in the month.

The company holds 48 patents and patent applications

in the U.S. and Worldwide.

These are exciting times for bio-plastics as demand is

growing exponentially and by most accounts should

continue. According to a recent article by CNN Online,

some predict the U.S. market for these plastics will

reach USD 10 bio a year by 2020 a tenfold increase

from 2007.

Cereplast has developed and is commercializing its bio-

based resins through two complimentary families;

Cereplast Compostables and Cereplast Hybrid Resins.

Furthermore, the company has recently been exploring

algae-based bio-plastics. Moving forward the company

is involved in expanding its product applications as it is

working on a new algae-based initiative. If the

company can use algae as a component for bio-plastics

this would be breakthrough.

When we asked CEO Fredrick Scheer about this he

responded, “The difference between ethanol in bio-

plastic is significant. First the quantity of corn used to

make bio-plastic is less than half of the amount of corn

required to make Ethanol. Second, Cereplast used a

basket of starches allowing a better diversification that

using only one single component. Third the quantity

used today represents less than 0.1% of the corn used in

the USA, now on a longer prospective Cereplast has

studied the possibility of using alternative feedstock

and will launch later this year the first ever algae based

plastic.” (worldmarketmedia 22 April 2010)

Novamont suffers set-back in bio-plastic patent

Italian bio-plastics manufacturer Novamont suffered a

set-back in its patent enforcement programme last

month when claims of infringement against French

films group Sphere and German bio-plastics producer

Biotec were not upheld by a French court.

Novamont‟s action against the two companies, which

dates back to 2007, alleged infringement of three

patents relating to production of polymer compositions

containing thermoplastic starches – EP0327505 (now

expired), EP0937120 and EP0947559. In its ruling, the

Tribunal de Grande Instance court in Paris found that

two of the Novamont patents were valid and the third

(EP0937120) was partly valid.

However, it ruled the Italian company had not provided

proof of infringement. Novamont was ordered to pay

compensation of EUR 50 000 each to Sphere and

Biotec and to pay the costs of the action. Novamont

told European Plastics News it will challenge the Paris

court decision. “The Paris court ruled…that the

analyses presented by Novamont were not by

themselves able to support the infringement claim. The

court, therefore, did not rule that Sphere and Biotec are

not infringers: it did not enter into the merits of the

evidence,” said Novamont public affairs manager

Andrea di Stefano. “Novamont feels that the evidence it

brought does indeed prove that infringement has

occurred and will appeal against the decision,” he said.

The court action related to Biotec‟s supply of its

Bioplast 106/02 starch-blend bio-plastic to Sphere and a

number of its subsidiaries. The German company‟s

defence included counterclaims against some of

Novamont‟s patent claims, two of which were upheld.

In a statement, Biotec, a joint venture company set up

by Sphere and UK-based Stanelco, described the court

ruling as a significant victory. “This judgement is

legally effective for the whole of France and also sends

a signal,” it said. (Continued on next page)

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Novamont suffers (Contd.)

Novamont is pursuing legal action against Sphere and

Biotec in the Italian courts over the same patents. The

French court decision has no impact on this action. The

Italian bio-plastics materials company is also

continuing a legal action against German bio-plastics

development company BIOP Polymer Technologies in

the Munich court. This involves three patents. Last year

BIOP obtained a ruling of invalidity from the Munich

patent court, which Novamont is appealing, on one of

these – the same EP0327505 patent involved in the

French action. BIOP declined to comment to European

Plastics News on progress with this action.

France-based Sphere is a major producer of household

and waste collection packaging with 17 manufacturing

subsidiaries across Europe. Listed in the European

Plastics News ranking of European Film Producers and

Converters with annual sales of EUR 375m, the

company is a major player in production of bio-based

plastics film products. German company Biotec has

been jointly owned by Sphere and Stanelco of the UK

since 2005. With an annual production capacity of

around 20 mio t, it is one of Europe‟s leading producers

of bio-based plastics. It supplies to Sphere and also

manufactures the range of bio-based resins marketed by

Stanelco subsidiary Biome Bio-plastics.

While not directly involved in the Novamont legal

action, Stanelco chief executive Paul Mines welcomed

the Paris court decision, saying it would help the

development of its bio-plastics business. “We are

pleased that our efforts in defending Biotec‟s

technology have been validated by the first court to

hear the case. We would hope that this positive result

previews the findings of other courts on this matter,” he

said.Novamont is one of the world‟s leading producers

of bio-plastics materials with a claimed annual capacity

of 80 mio t. (europeanplasticsnews.com 5 May 2010)

(Continued in next column)

Petrobras acquires significant stake in Guarani

Brazilian oil giant Petrobras is to purchase a 45.7%

share in ethanol producer Acucar Guarani, previously

controlled by France-based sugar, starch and ethanol

producer Tereos. Petrobras Bio-combustive will acquire

the stake for USD 920 mio (EUR 706.3 mio), valuing

the Guarani company at USD 2.01 bio.

Petrobras will make the payment in three stages in the

hope that this will increase the firm‟s growth in the

ethanol industry, as well as boost Guarani‟s investments

into bio-fuels R&D. In stage one USD 393 mio will be

invested in Guarani‟s subsidiary Cruz Alta

Participações and Tereos will supply its sugarcane from

the Indian Ocean and starch assets from Europe.

Within the next five years Petrobras and Tereos may

have the opportunity to invest further in the company –

USD 527 mio and USD 345 mio respectively, which

may result in Petrobras owning a 49% share by the year

2015. (biofuels-news.com 4 May 2010)

Akzo in Talks With Buyers for National Starch as M&A Rebounds

Akzo Nobel NV, is in talks to sell National Starch,

resuming a planned disposal of the food additives

business that analysts estimate may fetch as much as

USD 1.7 bio. Several parties have expressed an interest

in acquiring the unit, which generated EUR 865 mio

(USD 1.14 bio) of sales last year, the Amsterdam-based

company said in a statement. Akzo earmarked the

business for disposal when it bought rival paint maker

Imperial Chemical Industries in 2008.

Akzo Nobel expects to reach an agreement inside

12 months as potential buyers have better access to

funding, Chief Financial Officer Keith Nichols said on

a call today. Akzo doesn't have the focus to develop

National Starch, and the renewed talks are coinciding

with improving markets for food additives, Nichols

said. (Continued on next page)

Starch Italics Company Information

April/May 2010 © GIRACT 2010 P a g e 1 8

Akzo in Talks (Contd.)

"A year ago the M&A market was essentially closed,"

Nichols said. "The interest is really a reflection of the

market feeling a little bit more confident." Akzo also

today said first-quarter earnings before interest, taxes,

depreciation and amortization, excluding National

Starch, jumped 38% to EUR 399 mio. Analysts on

average predicted EUR 390 mio, including starch

revenue.

National Starch may fetch as much as EUR 1.3 bio,

according to JPMorgan analyst Neil Tyler. Akzo

inherited the business following its USD 15.9 bio

takeover of ICI, which added the Glidden and Dulux

brands. Possible buyers may include U.S. edible oil

maker Bunge Ltd., Christopher Shanahan, an analyst at

Frost & Sullivan, has said.

Last year, National Starch's profitability came under

pressure from higher corn prices. Still, it generated

Ebitda of EUR 78 mio in 2009 and the business is

improving, Nichols said."There's nothing wrong" with

the National Starch business, the CFO said. "We're not

a food company and we don't have in-house

competencies to run a business with this scale."

(sfgate.com 23 April 2010)

Cerealus Announces Licensing Agreement for Bio-Based Ceregel™, A Next Generation Strength and Retention System

Cerealus Holdings, in collaboration with the University

of Maine, is excited to announce their latest bio-based

technology, “Ceregel™, A Next Generation Strength +

Retention System.” Originally patented by DuPont and

later developed by the UMaine Process Development

Center, Ceregel™ is a smart process proven technology

for paper mills that will enable improved productivity

and lower production costs. (Continued in next column)

Cerealus Announces (Contd.)

Ceregel™ utilizes five patents and involves cooking

cationic polyacrylamides with cationic starch to form

“super” starch molecules, which have improved

retention properties for commercial paper machines.

Ceregel™ benefits and validated effects include

increased strength, increased retention, and higher press

solids. Cerealus has secured exclusive licensing rights

for Ceregel™ from the University of Maine and

recently initiated a full sales and installation campaign.

"Our process improvements will provide paper mills

with various optimization solutions and should enable

mills to save up to USD 14 per t.” Mike Bilodeau,

Director of the Process Development Center at the

University of Maine, went on to say, “This

groundbreaking new low-capital technology gives

paper makers a range of options to improve product

quality, productivity, and lower manufacturing costs.

We believe this technology will soon be considered

“best known practice” in the industry, deployed across

a wide range of paper grades and manufacturing

processes.” (prweb.com 16 April 2010)

Vinachem to build sorbitol plant

Tay Ninh- The Viet Nam National Chemical Group and

the Tay Ninh People's Committee have signed a deal to

build a sorbitol (sugar alcohol) plant with an annual

output of 20 mio t.

This will be the first plant producing biological

products in the south-western province.

It will use starch from cassava, grown by local farmers

on an area of about 30 mio ha. The plant which will

occupy a 6 hectare site in Tan Bien District is expected

to cost USD 22.1 mio. (vietnamnews.vnagency.com.vn

15 May 2010)

Starch Italics Company Information

April/May 2010 © GIRACT 2010 P a g e 1 9

Return to ethanol profits helps ADM top estimates

Archer Daniels Midland's first profits from ethanol

refining for more than a year have helped the

agribusiness giant negotiate a slump in agricultural

services earnings to post results ahead of Wall Street

forecasts. ADM said that its bioproducts unit, which

manufactures crop extracts including corn-based

ethanol and citric acid, had posted a USD 119m

operating profit for the September-to-December

period.

The profit was the unit's first since the summer of

2008, ahead of a year-long losing streak prompted by

the collapse of ethanol prices during which the unit

racked up losses of USD 374m. The improvement

helped ADM limit to 1.9% its decline in group

earnings for the period.

Profits from oilseed processing rose by 10.3% to USD

352m, reflecting stronger crush margins in North

America and the lack of a fertilizer writedown which

dragged results lower a year ago. The company's

earnings of USD 567m, or USD 0.88 a share, were

well received by analysts, who had forecast a

USD 0.72-a-share result. ADM shares closed up

USD 1.47 at USD 31.63 in New

York. (agrimoney.com 2 February 2010)

Gulshan Polyols Board recommends Dividend of INR 1.25 for 2009-10

Gulshan Polyols Ltd has announced that the Board of

Directors of the Company at its meeting held on May

27, 2010, inter alia, has recommended a dividend of

25% (INR 1.25 per equity share) on the Equity Share

Capital of the Company. The stock was trading at

INR 96.45, up by INR 2.7 or 2.88%. The stock hit an

intraday high of INR 96.45 and low of INR 93.The total

traded quantity was 62 compared to 2 week average of

1073. (equitybulls.com 27 May 2010)

Sahyadri Industries Board recommends Final Dividend of INR 3 for 2009-10

Sahyadri Industries Ltd, starch producer, has announced

that the Board of Directors of the Company at its

meeting held on May 29, 2010, inter alia, has

recommended payment of final dividend at INR 3 per

share for the year ended on March 31, 2010, subject to

the approval of shareholders.

The stock closed the day at INR 135.6, up by INR 3.65

or 2.77%. The stock hit an intraday high of INR 137.85

and low of INR 133.10. The total traded quantity was

8 455 compared to 2 week average of 20 655.

(equitybulls.com 30 May 2010)

Tate & Lyle profit dips, promises new focus-Update 2

British sugar refiner and sweetener group Tate & Lyle

Plc promised a shake-up of its business to focus on

speciality food ingredients as the downturn cut annual

profit by 7%, in line with forecasts. But the group gave

a cautious outlook for its key sweetener, starch, ethanol

and sugar products with little sign of a pickup in

demand in its main market of the United States.

The London-based group which makes the Splenda

sweetener posted pretax profits of 229 mio pounds

(USD 330 mio) for the year to end-March largely in

line with a consensus forecast of 226 mio pounds,

according to Thomson Reuters I/B/E/S.

Tate had already warned of lower profits as the

economic downturn had cut the prices of its key

sweeteners and starches while it is struggling to break

even in sugar cane refining under stiff competition from

beet sugar producers. (marketwatch 27 May 2010)

Starch Italics Company Information

April/May 2010 © GIRACT 2010 P a g e 2 0

Anil Products net profit rises 76.53% in the March 2010 quarter

Net profit of Anil Products rose 76.53% to

INR 75.2 mio in the quarter ended March 2010 as

against INR 42.6 mio during the previous quarter ended

March 2009. Sales rose 17.90% to INR 1022.1 mio in

the quarter ended March 2010 as against INR 866.9 mio

during the previous quarter ended March 2009.

For the audited full year, net profit rose 128.14% to

INR 240 mio in the year ended March 2010 as against

INR 105.2 mio during the previous year ended

March 2009. Sales rose 35.38% to INR 3741.0 mio in

the year ended March 2010 as against INR 2763.3 mio

during the previous year ended March 2009.

The company has announced the revised financial

results for the quarter and year ended March 2010 on 19

May 2010. (indiainfoline.com 18 May 2010)

Particulars Quarter Ended Year Ended

Mar.

2010

Mar.

2009

%

Var.

Mar.

2010

Mar.

2009

%

Var.

Sales 102.21 86.69 18 374.10 276.33 35

OPM % 18.05 12.34 46 13.89 9.90 40

PBDT 12.69 8.55 48 36.50 19.67 86

PBT 11.33 7.23 57 31.31 15.44 103

NP 7.52 4.26 77 24.00 10.52 128

Tate & Lyle profit down 77% after mothballing Iowa plant

London (MarketWatch) -- U.K. sugar producer Tate &

Lyle said Thursday said it's scrapped plans for a new

milling plant in Iowa and taken a charge of

217 mio pounds (USD 314 mio) on the project, which

was hit by poor ethanol markets and rising costs.

(Continued in next column)

Tate & Lyle profit (Contd.)

The decision, which also came as the group set out a

new strategy to shift its focus away from sugar towards

higher margin food ingredients, resulted in a 77% drop

in fiscal-year net profit to GBP 15 mio.

The corn milling plant in Fort Dodge, Iowa, would have

produced 100 mio gallons of ethanol and

300 mio pounds of industrial starch a year, but the

company said it is now "highly unlikely" to ever begin

operating. "The continued depressed and volatile

outlook for ethanol, and uncertain conditions in

industrial starch and corn gluten feed markets, do not

provide any basis to complete and commission the

plant," Tate & Lyle said.

The group said the modest decline in U.S. sweetener

demand will be offset by increased demand from

Mexico, but industrial starch margins are expected to

remain at lower levels, while it sees no improvement in

ethanol margins and says sugar profits will be

constrained by tight supplies.

The poor outlook for its products in the U.S. has

prompted the group to conclude that its Fort Dodge

corn plant in Iowa is highly unlikely to start up in the

foreseeable future and it has taken a 217 mio pounds

exceptional write-off charge. Around two-thirds of

Tate's profits come from supplying sweeteners, starches

and ethanol-where profits have been hit by lower

demand-with the rest coming largely from its sugar and

sucralose sweetener units. (forexyard.com 27 May

2010)

Dwayne Wilson Elected to Corn Products International, Inc., Board of Directors

Corn Products International is one of the world's largest

corn refiners and a major supplier of high-quality food

ingredients and industrial products derived from the wet

milling and processing of corn and other starch-based

materials. (Continued on next page)

Starch Italics Company Information

April/May 2010 © GIRACT 2010 P a g e 2 1

Dwayne Wilson (Contd.)

The Company, headquartered in Westchester, Ill., is a

leading worldwide producer of dextrose and a major

regional producer of starches, sweeteners and other

ingredients. In 2009, Corn Products International

reported net sales of USD 3.67 bio, with operations in

13 countries at 28 plants, including wholly owned

businesses, affiliates and alliances

Mr. Wilson is Group Executive of Fluor Corporation,

one of the world's largest publicly owned engineering,

procurement, construction, maintenance and project

management companies, headquartered in Irving,

Texas. Prior to assuming this role in 2007, Mr. Wilson

served as Group Senior Vice President and General

Manager of Fluor's Mining and Metals Group, a

position that he assumed in 2004.

He has also served Fluor as President, Mining &

Minerals; President, Commercial and Industrial

Institutional; Vice President & Executive Director,

offices of the Chairman and Chief Operating Officer;

and in a variety of positions of increasing responsibility

from 1980 to 2001. (pr-inside.com 19 May 2010)

le profit dips, promises new focus-[ATE 2

E.T. Horn and Roquette Enter Into New Distribution Agreement

The E.T. Horn Company, a leading distributor, supplier,

marketer, and manufacturer of specialty chemicals and

ingredients announced today that it has entered into a

new agreement to represent Roquette products in the

western United States. The company will focus on

distribution within the nutraceuticals, cosmetics, and

personal care industries.

With headquarters in France, Roquette transforms

renewable resources - corn, wheat, potatoes, and peas -

into an extensive line of high quality ingredients for a

wide range of food and non-food industries throughout

the world.

(Continued in next column)

E.T. Horn (Contd.)

E.T. Horn will be distributing powdered, granular, and

liquid polyols. These branded ingredients find a variety

of applications as humectants and emollients in

cosmetic and personal care, and as low-calorie, sugar-

free sweeteners and tablet fillers in a variety of

nutraceutical products.

Asis Jain, Pharmaceutical and Nutraceutical Business

Unit Manager for Roquette, offered his view of the new

partnership with E. T. Horn. “We are pleased and

impressed with E.T. Horn‟s in-depth knowledge of the

industry and wealth of customer contacts.

The entire organization is confident that their front-line

representation of Roquette will further our market

penetration and brand awareness in the western US,” he

concluded. (finance.com 18 May 2010)

International patent quarrel with Biotec shows no signs of letting up

A Europe-wide patent dispute between Novamont and

Biotec Biologische Naturverpackungen concerning

biologically degradable materials has entered its next

round. Novamont told PIE that it intends to appeal a 16

April 2010 Paris court ruling in the case.

The legal dispute centres on three Novamont patents for

reinforcing blends of the first Mater-Bi generation. The

Paris-based Tribunal de Grande Instance confirmed the

legal validity of two patents (EP0327505 and

EP0947559), but declared the third (EP0937120) to be

invalid. The ruling also stipulated that the Italian

company pay EUR 50 000 each to Biotec and SPhere –

one of Biotec‟s holding companies.

Biotec says it has won the legal quarrel, which has been

raging since 2007. A company press release asserts that

the judges categorically dismissed Novamont‟s lawsuit

alleging patent abuse – a decision, Biotec says, that will

influence the ongoing patent dispute. A related lawsuit

is currently being heard in Italy.

(Continued on next page)

Starch Italics Company Information

April/May 2010 © GIRACT 2010 P a g e 2 2

International patent (Contd.)

One of the three Novamont patents in force (EP032755)

had meanwhile expired, Biotec added, and was declared

inadmissible by the German Federal Patent Court.

According to Novamont, the Paris court in fact

confirmed the legal validity of two patents and was

unable to prove a patent violation in the third case since

production samples of the accused company had not

been examined by a court-ordered expert appraisal.

Stefano Fracco, director of Novamont‟s product

development, says the court ruling is a stalemate. While

the court failed to prove that patents had been violated,

it also did not prove that they had not. Biotec director

Uwe Beythin dismisses such claims.

“We did not violate any patents,” he says, adding that

his company had its own research and development

efforts and was exploring entirely different avenues.

One example: While Novamont uses corn starch and

plasticisers in its products, Biotec prefers using potato

starch without any plasticisers. (plasteurope.com 20

May 2010)

English Indian Clays opts stock-split, up 14%

India-based clay products and starch maker, English

Indian Clays Ltd (BOM:526560) zoomed on the

Bombay Stock Exchange (BSE) in the morning trades

on Wednesday after the company board approved sub-

division of one equity share of INR 10 each into five

equity shares of INR 2 each. The company stocks

jumped by 14% on the BSE striking 52-weeks high, in

the morning session on Wednesday. The company

approved issue of bonus shares of INR 2 each in the

ratio of five shares for every four shares of INR 2 each

fully paid up.

The board of directors of the company also

recommended a final dividend of 50% or INR 5 per

share for the year ended March 31, 2010. (Continued in

next column)

English Indian Clays (Contd.)

English Indian Clays' net profit jumped 117.67% to

INR 65.3 mio on 30.53% increase in net sales to

INR 885.1 mio in Q4 March 2010 over Q4 March 2009.

Net profit surged 54.63% to INR 294.1 mio on 19.46%

rise in net sales to 3364.5 mio in the year ended March

2010 over the year ended March 2009.

The small-cap stock had outperformed the market over

the past one month till 18 May 2010, rising 5.85% as

compared to the Sensex's 4.07% decline. It had also

outperformed the market in the past one quarter, rising

22.29% as compared to the Sensex's return of 3.36%.

English Indian Clay operates in two segments, clay

products and starch products. Clay Products segment

manufactures and supplies the clay products to various

industries, such as paper, paint, rubber and fiberglass,

while starch products segment comprising

starches/specialty starches, syrups and modified

starches, supplies the starch products to various

industries, such as paper, textile, food and pharma.

(commodityonline.com 19 May 2010)

Anil Products Q4 net profit at INR 75.2mn

Anil Products Limited (APL), the flagship company of

food and bio-industrial focused Anil Group, has

announced a higher profit of INR 239.9mn for the

financial year March 31, 2010, a 128.02% increase over

INR 105.2mn registered for last fiscal.

Total sales and income from operations rose to

INR 3.74bn from INR 2.76bn in the previous year.

EBIDTA for the financial year 2009-10 shot up 74.29%

to INR 524.3mn against INR 300.8mn in 2008-09.

APL‟s EBIDTA margin (EBIDTA/Sales) was higher at

14.02% against 10.89% for the previous fiscal. The

Board of Directors has recommended a final dividend

of Rs1.25 per equity share for the year ended

March 31, 2010. (Continued on next page)

Starch Italics Company Information

April/May 2010 © GIRACT 2010 P a g e 2 3

Anil Products Q4 (Contd.)

For the quarter ending March 31, 2010, APL registered

a higher sales of INR 1.02bn, an increase of 65.1%

against INR 619mn in the previous year. The company

closed the quarter with Profit Before Tax (PBT)

standing at INR 113.3mn against INR 51.6mn recorded

in the corresponding period of last fiscal. Profit for the

quarter stood at INR 75.2mn against INR 28.9mn in

previous fiscal.

Speaking on the results, Mr. Amol Sheth, Managing

Director of APL said, “Anil‟s focus on moving up the

value ladder has begun to show up in the financial

performance. The growth in profits and higher EBIDTA

have been achieved through higher contribution of

value added products and better operational

efficiencies. APL is committed to leverage the

opportunities in the bio-industrial and food space.

We are aggressively strengthening our R&D

infrastructure and building partnerships with research

institutes to create a pipeline of innovative value added

products.”

During the 2009-10, Anil Products introduced several

new value added products for its customers across

Food, Textile, Paper, Pharma and Feed industry.

The Company has expanded the manufacturing capacity

for modified and specialty starches to meet the growing

demand for its innovative modified starches. APL‟s

revenues for Value Added Paper starches increased by

64%, Value Added Textile starches grew by 79% and

Food, Pharma and Feed business grew by 51% in value.

The Company exports registered a significant increase

to reach Rs270mn during the year. Anil Products

launched its products in many new countries in Middle

East and Africa. (indiainfoline.com 18 May 2010)

French firm eyes 36% more in Riddhi Siddhi

France‟s Roquette Freres is in advanced talks to buy

Riddhi Siddhi Gluco Biols, India‟s largest starch and

starch derivatives maker, in a deal that will significantly

amplify its presence in a fledgling, but growing market.

The 77-year-old French company is looking to raise its

stake to 51% from 14.93% in Gujarat-based Riddhi,

which has a 25% share in the country‟s starch and

starch derivatives market, two persons close to the

development told ET.

“Both parties have signed a non-disclosure agreement

and are in the process of giving a final shape to the

deal,” said one person who is privy to the talks.

Roquette‟s interest in Riddhi also stems from the Indian

company‟s three production units in Karnataka,

Uttranchal and Gujarat as well as exports to more than

25 countries. Ridhi director R Sathyamurthi said: “We

do not comment on speculation.” Executives of

Roquette Freres could not be reached for comment.

Roquette is likely to pay nearly INR 1500 mio for the

36% stake, a premium of up to 30% over the current

market price, said the second person who is close to the

Indian company. Roquette will then have to launch an

open offer to buy 20% more in Riddi, which may cost

another INR 75 mio, he said.

Riddhi shares closed at INR 264.90 on the Bombay

Stock Exchange last Friday. The e2.5-bio Lestrem-

based company employs more than 6 000 people and

has production facilities in Europe, the US and Asia.

The company sells its products in more than 100

countries, backed by its global network of subsidiaries

and agents. Riddhi Siddhi, which was established a

decade ago, has more than 1 600 employees. The

company posted a net profit of INR 270 mio on

revenues of INR 5150 mio for the nine months to end

December. (economictimes.com 17 May 2010)

Starch Italics Company Information

April/May 2010 © GIRACT 2010 P a g e 2 4

AGRANA Operating Profit More than Doubled in 2009-10

The 2009-10 financial year (ended 28 February 2010)

of AGRANA, the sugar, starch and fruit group, was

marked by a combination of volume growth and lower

sales prices. As the increase of 16.7% in sales volume

from the prior year could not fully make up for the

price effect, Group revenue in 2009 to 10 eased slightly

by 1.8% to EUR 1.99 bio (prior year: EUR 2.03 bio).

The largest revenue contribution was generated by the

Fruit segment, at about 41%, followed by Sugar at

approximately 34% and Starch at about 25%, broadly in

line with the proportions of the previous year.

Group operating profit before exceptional items more

than doubled from EUR 37.8 mio in the prior year to

EUR 91.9 mio, driven above all by stabilised earnings

in fruit juice concentrates, the direction in raw material

markets and a satisfactory trend in the profitability of

the Starch segment.

In the Sugar segment, total sales volume rose while

revenue eased by 2.6% to EUR 684.1 mio (prior year:

EUR 702.5 mio). Against the backdrop of the EU sugar

regime, after having surrendered quota, AGRANA

registered a decrease in quota sugar sales as budgeted

coupled with lower sales prices. The sales quantities of

non-quota sugar grew thanks to a good crop and the

development of new export markets.

The Sugar segment generated an operating profit of

EUR 15.2 mio before exceptional items (prior year:

EUR 15.8 mio). With the EU sugar market reform

concluded, AGRANA is clearly well-positioned

strategically, particularly as many Eastern European

countries where AGRANA holds important market

positions became net importers.

Although higher volumes of starch products were sold,

revenue eased just under 4% to EUR 499.2 mio (prior

year: EUR 519.4 mio) as a result of the adjustment of

sales prices to reflect raw material costs.

(Continued in next column)

AGRANA Operating (Contd.)

Revenue in the bio-ethanol business expanded as lower

ethanol prices were more than offset by the full

utilisation of the bio-ethanol plants in Austria and

Hungary and by sales of the main co-product, ActiProt,

a high-protein feed.

Starch segment operating profit before exceptional

items increased to EUR 41.1 mio (prior year: EUR

27.5 mio), reflecting improved margins and the

earnings contribution from the bio-ethanol activities,

which have passed the establishment stage and are now

profitable. (foodingredientsfirst.com 10 May 2010)

Major Carbon Capture and Storage Project Advancing at ADM

Archer Daniels Midland Company (NYSE: ADM) and

its research collaborators today marked a milestone in

one of the nation‟s first large-scale projects intended to

confirm that carbon dioxide emissions can be stored

permanently in deep underground rock formations. The

project may also help determine whether geologic

carbon sequestration can further improve the

environmental footprint of alternative fuels such as

ethanol by capturing and storing carbon emissions

associated with their production.

In February 2009, Schlumberger Carbon Services

began drilling the approximately 8 000-foot-deep

injection well at the 207-acre project site near ADM‟s

corn wet mill in Decatur, Ill., which produces starch for

fuel ethanol and a number of other products. Once the

injection well is completed, a carbon dioxide

dehydration/compression facility will be constructed

near the corn wet mill and a 3 200-foot-long pipeline

will also be constructed to transport carbon dioxide to

the well.

Beginning in early 2010, carbon dioxide emitted during

the ethanol fermentation process at the corn wet mill

will be injected into the Mount Simon Sandstone, a

large, saline water-bearing rock formation, at a rate of

1 mio t per day. (ethiopianreview.com 4 May 2010)

Starch Italics Company Information

April/May 2010 © GIRACT 2010 P a g e 2 5

MGPI, ALLT, DUSA, NCOC, MEMS, NURO Expected To Be Lower After Earnings Releases on Tuesday

MGP Ingredients, Inc. (NASDAQ: MGPI) produces

ingredients and distillery products in the United States.

It processes wheat flour and corn into various products

through an integrated production process. The Distillery

Products segment offers food grade alcohol; fuel grade

alcohol, commonly known as ethanol; and distillers

feed and carbon dioxide, which are co-products of the

company distillery operations. The Other segment

products comprise resins, and plant-based polymers and

composites.

This technology is designed to help the stock trader

identify those companies that seem to have a consistent

pattern of movement before or after the earnings release

date, based on the history of earnings releases for that

company. It combines a calendar of expected earnings

releases with a history of past earnings releases in a

way that lets you see if a pattern exists.

(tmcnet.com 10 May 2010)

Tongaat to increase sugar production by 25%

Tongaat Hulett lifted profit from operations by 28% to

R1.6 bio in the 15 months to March and is looking to

lift its sugar production by up to 25% in the coming

year. The company changed its financial year-end to

correspond with the sugar season. The financial results

reported on Friday are for the 15 months to March and

include the revenue of a single sugar milling season and

the increased value of the crop. Tongaat chief executive

Peter Staude said at the weekend that the business was

driving to increase sugar production from 957 mio t

milled in the 2009 to 10 season to 1.9 mio t a year in

the next three years. "The biggest increase is likely to

come from Mozambique, where we predict we will go

from 133 mio t to 250 mio t per year," he said.

(Continued in next column)

Tongaat to increase (Contd.)

Profit from sugar operations in Zimbabwe was

R576 mio, as relevant economic fundamentals were

reintroduced into the local economy and the business.

Mozambican profits from operations fell from R301m

to R192m as a result of currency gains in the previous

year.

"Zimbabwe can produce up to 600 mio t of sugar (a

year), but is currently producing less than half of that. I

expected Tongaat to ramp up the Zimbabwean

operations much sooner than now," said Abdul Davids,

an equity analyst and head of research at Kagiso Asset

Management. He said the group's South African

operation was currently only producing at 70% of its

capacity and that it could easily produce 1 mio t per

year.

John Thompson, an equity analyst from Investec, said

Tongaat's expansion into Mozambique would help the

company reach its targets, but that its existing assets in

South Africa would likely contribute more. "In South

Africa, they have to incentivise growers in their areas.

In doing so, the risk is passed on to the farmer but if

they incentivise more growers, they could effectively

double their sugar output within the next year," he said. Headline earnings grew by 37% to R858m in the

review period. Starch and glucose volumes declined by

5% in the review period.

"Lower demand was experienced in the alcoholic

beverage, paper, coffee creamer and confectionery

sectors, with the contraction of consumer spending,"

Staude said. The South African sugar milling, refining

and agriculture operations contributed R158m to profit

for the review period as a result of higher local and

export sale realisations. Sugar production decreased to

564 mio t from 644 mio t in the previous season.

"Almost all the group's sugar production was sold in the

local market," Staude said. On Friday, Tongaat's shares

closed 0.4% lower at R97. (busrep.co.za 31 May 2010)

Starch Italics Company Information

April/May 2010 © GIRACT 2010 P a g e 2 6

USDA Taking Applications For Renewable Energy Funding

Agriculture Secretary Tom Vilsack today announced

that USDA is seeking applications to increase the

production and use of renewable energy sources.

Funding is available from four USDA Rural

Development renewable energy programs authorized by

the Food, Conservation, and Energy Act of 2008 (Farm

Bill).

"This funding will help spur investments in

technologies that will reduce reliance on fossil fuels,

conserve natural resources and help build a sustained

renewable energy industry in rural America," Vilsack

said.

USDA is accepting applications for grants and loan

guarantees in the Rural Energy for America Program

(REAP) until June 30, 2010. More information on how

to apply for funding is available in the April 26, 2010

Federal Register.

The Rural Energy for America Program provides funds

to agricultural producers and rural small businesses to

purchase and install renewable energy systems and

make energy efficiency improvements. Eligible projects

include installing renewable energy systems such as

wind turbines, solar, geothermal, biomass, anaerobic

digesters, hydroelectric, and ocean or hydrogen

systems. Funding may also be used to purchase energy-

efficient equipment, add insulation, and improve

heating and cooling systems. In fiscal year 2009, this

program helped fund 1 485 REAP projects in 50 states,

the commonwealth of Puerto Rico and the Western

Pacific Islands.

In addition to the REAP program, Secretary Vilsack

announced that USDA is also planning to accept

applications for three other renewable energy programs:

the Bio-refinery Assistance Program, Repowering

Assistance Program and the Bio-energy Program for

Advanced Bio-fuels.

(Continued in next column)

USDA Taking Applications (Contd.)

Details on how to apply will be released later this week

in the Federal Register. USDA's Bio-refinery

Assistance Program provides guaranteed loans to

develop and construct commercial-scale bio-refineries

or to retrofit existing facilities using eligible technology

for the development of advanced bio-fuels.

The Repowering Assistance Program is designed to

encourage the use of renewable biomass as a

replacement fuel source for fossil fuels used to provide

process heat or power in the operation of eligible bio-

refineries (those bio-refineries in existence on June 18,

2008- the date the 2008 Farm Bill was enacted).

The Bio-energy Program for Advanced Bio-fuels works

to support and ensure expanding production of

advanced bio-fuels by providing payments to eligible

advanced bio-fuels producers. Advanced bio-fuels are

derived from renewable biomass, other than corn kernel

starch. These include cellulose, sugar and starch, crop

residue, vegetative waste material, animal waste, food

and yard waste, vegetable oil, animal fat, and biogas

(foodmanufacturing.com 5 May 2010)

ATCO Midstream, Grow-Gen To Develop Integrated Bio-refinery In Canada

ATCO Midstream and Grow-Gen Energy have signed

an initial partnership agreement to develop an

integrated bio-refinery in Canada. The refinery will use

organic wastes and high-starch wheat to create green

electricity, bio-fertilizer and fuel ethanol.

The project involves the expansion of an existing

biogas-to-electricity facility east of Edmonton, near

Vegreville, Alberta. The plant currently uses manure

from Highland Feeders to create biogas and green

power. The resulting green energy will be used to fuel a

new ethanol production system. The ethanol will be

derived from locally grown high-starch wheat.

(Continued on next page)

Starch Italics Company Information Others

April/May 2010 © GIRACT 2010 P a g e 2 7

ATCO Midstream (Contd.)

Under the terms of the agreement, ATCO Midstream

will operate the bio-refinery and be a part-owner.

Grow-Gen Energy of Hairy Hill, Alberta, will be the

other owner, along with several investors including a

farmer-owned grain procurement partner, Providence

Grain Group of Fort Saskatchewan. Shane Chrapko,

CEO of Grow-Gen Energy, said:

"This project greens Alberta's energy basket using our

own home-grown, globally patented technology. By

linking efficient food production with the growing

demand for renewable energy, we are taking a major

step forward in improving the sustainability of two key

industries in the province."

According to the companies, the entire process is

virtually waste-free. The residual grains that remain

after the ethanol is made will be fed to cattle at a nearby

feedlot, while bio-fertilizer, a byproduct of the biogas

production, is sold to local farmers and oil and gas

drilling companies for soil enhancement and

remediation. The completed bio-refinery is expected to

generate 40 mio l of fuel ethanol, 10 kt of premium bio-

fertilizer and 2.5MW of green electricity each year.

Operations are scheduled to commence in mid-

2012. (biofuel.energy-businessreview.com 5 May 2010)

Amflora potatoes planted in Germany

On a 15-hectare field in Zepkow, Germany (county

Mueritz in the state of Mecklenburg-Lower Pomerania),

genetically modified (GM) Amflora potatoes were

planted on 19 April 2010. Gene-technology opponents

have called upon the Federal Minister for Agriculture,

Ilse Aigner (CSU), to prohibit the cultivation of this

potato in Germany.

The EU Commission issued approval at the beginning

for March for the cultivation of the Amflora potato,

which provides starch for industrial purposes.

(Continued in next column)

Amflora potatoes (Contd.)

Since then, the field in Zepkow is the sole area in

Germany upon which genetically modified crops have

been planted in 2010.

Gene-technology opponents also have concentrated

their protest on the Amflora field. After the blockage by

Greenpeace activists of a storehouse containing seed

potatoes at the company farm in question, planting was

carried out under police protection. As stated by a

spokesperson for BASF Plant Science, the field is now

secured by guard personnel.

In the approval decision, the EU Commission

determined that no conventional potatoes may be

planted on an Amflora field in the following year.

Furthermore, Amflora fields must be checked for

„secondary growth‟, i.e. for leftover potatoes from the

previous year. BASF is obliged to provide Amflora

only to specified manufacturers who agree contractually

to the spatial separation of Amflora production from

that of conventional potatoes. This separation applies

from the storage of seed potatoes to the industrial

processing of their starch.

Since 2008 in Germany, an additional regulation has

been in effect that establishes general rules to guarantee

the „co-existence‟ of agricultural systems „with…‟ and

„without gene technology‟. Since then, additional,

special rules have become applicable to maize. To date,

such rules do not exist for potatoes. (gmo-compass.org

22 April 2010)

April/May 2010 © GIRACT 2010 P a g e 2 8

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