OILS & FATS INTERNATIONAL

M AY 2019 ▪ V O L 35 N O 4

SHORTENINGS
Customising new
solutions
EASTERN
EUROPE
Snapshot of
Romania
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 CONTENTS

OILS & FATS INTERNATIONAL IN THIS ISSUE – MAY 2019

 FEATURES Shortenings

21 A role for high oleic soya

NEWS & EVENTS
The US soyabean industry has worked
Central Asia
to develop new shortenings utilising high
oleic soyabean oil

Eastern Europe

16 New players in oilseeds

Comment
While the growing of oilseeds in Central
Asia has previously been underdeveloped 3 A good deal?
due to the area’s mountainous terrain,
News
several countries in the region are now 22 Snapshot of Romania
looking to boost production Romania is becoming an increasingly
4 China widens ban on Canadian
important producer and exporter of
Shortenings
oilseeds thanks to its position on the
canola as trade tensions grow
Black Sea and the advantages of being Biofuel News
an EU member state
8 China to review DDGS
Plant & Technology anti-dumping tariffs
26 Global projects round-up Biotech News
The latest projects, technology and
processing news around the world 10 US jury awards over US$80M
in first US Roundup test case
Commodity Trading
Transport News
29 Biofuels drive demand
18 Customising new solutions growth 12 Traders may invest in Brazil
Today’s shortenings cannot merely highway
The recent POC2019 conference in
replace partially hydrogenated oils but
Malaysia focused heavily on rising palm Renewable News
must offer better functionality as well
oil demand and combating the negative
image the industry faces 14 Vantage to acquire Textron
Plimon natural oils business
Diary of Events

31 International events listing

Statistics

32 Statistical data from Mintec

www.ofimagazine.com OFI – MAY 2019 1

Contents 19.indd 1 29/04/2019 10:37:10

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 EDITOR'S COMMENT

VOL 35 NO 4
A good deal?
OILS & FATS INTERNATIONAL MAY 2019 Back in 2016/17 when the world’s major agrichemical firms were
busy merging and acquiring each other, Germany’s Bayer agreed
EDITORIAL: to buy US biotech corporation Monsanto for some US$63bn in
Editor: Serena Lim
the largest takeover in German history.
serenalim@quartzltd.com
+44 (0)1737 855066 While publicly backing its decision, Bayer is now holding the bag
for billions of dollars in potential damages after losing two
Assistant Editor: Gabriel Day
gabrielday@quartzltd.com
US court cases where plaintiffs have claimed they contracted
+44 (0)1737 855157 non-Hodgkin’s lymphoma from using Monsanto’s Roundup
glyphosate-based weedkiller (see Biotech News, p10).
SALES:
Sales Manager: Mark Winthrop-Wallace Bayer has lost more than 60% of its value since acquiring Monsanto, according to
markww@quartzltd.com Bloomberg, and it faces more than 11,000 Roundup cases in the USA.
+44 (0)1737 855114

Sales Consultant: Anita Revis One of Bayer’s largest shareholders, Deka Investment, has attacked the company’s
anitarevis@quartzltd.com management for underestimating the legal risks of its takeover.
+44 (0)1737 855068
“It’s quite drastic when a takeover triggers such value destruction and reputational
PRODUCTION:
damage so quickly,” Deka’s head of sustainability and corporate governance, Ingo Speich,
Production Editor: Carol Baird told Reuters. “There can be no talk of a successful takeover any more.”
carolbaird@quartzltd.com

CORPORATE:
At Bayer’s AGM on 27 April, 55.5% of its shareholders voted against the management
board, down from 97% support last year.
Managing Director: Steve Diprose
stevediprose@quartzltd.com
+44 (0)1737 855164 When the Bayer/Monsanto deal was finalised in June last year, it created the world’s
largest seeds and pesticides company.
SUBSCRIPTIONS: Elizabeth Barford
subscriptions@quartzltd.com Some analysts said Bayer’s hand was forced by other major agrichemical deals occurring
+44 (0)1737 855028
as a result of falling crop prices and lower demand for seeds, herbicides and pesticides.
Subscriptions, Quartz House, 20 Clarendon Road,
Redhill, Surrey RH1 1QX, UK
So the Big 6 in agrichemicals and crop biotechnology became the Big 3, as ChemChina
bought Swiss agribusiness Syngenta, Dow Chemicals and DuPont merged, and Bayer
© 2019, Quartz Business Media bought Monsanto.
ISSN 0267-8853
Bayer continues to defend its herbicide, citing scientific studies and agencies, such as
WWW.OFIMAGAZINE.COM the US Environmental Protection Agency and European Chemicals Agency, which have
found that glyphosate is not likely carcinogenic to humans. The one exception is the
A member of FOSFA World Heath Organization, which classified glyphosate as “probably carcinogenic to
humans” in 2015.
Oils & Fats International (USPS No: 020-747) is
published eight times/year by Quartz Business Glyphosate is the world’s most widely used herbicide, sprayed on crops such as
Media Ltd and distributed in the USA by DSW, soyabeans, corn, canola and cotton, which are genetically modified to be immune to it.
75 Aberdeen Road, Emigsville PA 17318-0437. Bayer says glyphosate is indispensable for modern agriculture. But for a company whose
Periodicals postage paid at Emigsville, PA. motto is “science for a better life”, being linked to cancer and negligence is not ideal.
POSTMASTER: Send address changes to Oils &
Fats c/o PO Box 437, Emigsville, PA 17318-0437
And glyphosate is not the only product over which Bayer faces litigation.
Published by Quartz Business Media Ltd
Quartz House, 20 Clarendon Road, Scores of growers across the US Midwest have filed court claims over alleged damage
Redhill, Surrey RH1 1QX, UK to soyabeans, cotton, fruit trees and vegetable crops after spraying Monsanto’s Dicamba
oilsandfats@quartzltd.com weedkiller last year. Several US states and cities have sued Monsanto, claiming that it
+44 (0)1737 855000 hid the risk to humans and wildlife of polychlorinated biphenyls (PCBs), banned in 1979
in the USA. Bayer also faces thousands of lawsuits from women claiming bleeding,
Printed by Pensord Press, Gwent, Wales
pain or organ damage over its contraceptive Essure device, which it has pulled from all
countries.

Time is going to tell whether Bayer can sustain all these potential hits to its reputation
and bottom line, and whether its Monsanto acquisition was a good deal.
@oilsandfatsint Oils & Fats International

Serena Lim – serenalim@quartzltd.com

www.ofimagazine.com OFI – MAY 2019 3

May comment.indd 1 29/04/2019 10:40:11

 NEWS
IN BRIEF
BELGIUM: Global agribusi-
China widens ban on Canadian
ness giant Cargill announced
on 4 March that it plans canola as trade tensions grow
to acquire Smet, a leading China is no longer accepting canola imports from Meng, who is the daughter of Huawei’s founder,
Belgium-based supplier of Viterra Inc, the second Canadian grain trader to was arrested on 1 December at the request of
chocolate and sweet deco- have its registration cancelled as a result of trade US tax authorities.
rations to the food service tensions between the two countries. “We’re disappointed that differing viewpoints
and confectionery markets. China’s General Administration of Customs cannot be resolved quickly,” World Grain quoted
Cargill had its own cocoa made the announcement on its website on CCC president Jim Everson as saying. “Under the
bean sourcing operations for 26 March, effective immediately, World Grain circumstances, Canadian canola seed exporters
buying, handling and export- reported. who normally ship to China have no alternative
ing cocoa beans in Brazil, The announcement came days after the but to supply customers in other countries.”
Cameroon, Côte d’Ivoire, Canola Council of Canada (CCC) reported on World Grain said China was a major market for
Ghana and Indonesia. 21 March that the initial ban on imports from Canadian canola, taking 40% of all canola seed,
The transaction was Richardson International had widened, with Chi- oil and meal exports. The CCC said seed exports
expected to close in the first nese importers “unwilling to purchase Canadian to China were worth US$2.7bn in 2018.
half of 2019. canola seed”. Everson urged the Canadian government
China cancelled Richardson’s registration on “to continue to intensify efforts to resolve the
INDIA: Indian consumer 1 March, with officials citing concerns over situation”.
goods company Patanjali insect infestation as the reason. “Canadian ministers and government officials
Ayurved has increased its However, there is speculation that the move is have responded quickly to Chinese concerns,
bid for bankrupt edible oil linked to Canada’s arrest of Meng Wanzhou, vice however, technical discussions are unlikely to
business Ruchi Soya, the president of Chinese technology firm Huawei. lead to an immediate resolution.”
Financial Express reported on
13 March.
“We have revised our bid
to INR43.5bn (US$626.1M) Ferrero to acquire Kellogg’s cookie brands
from our earlier offer of Global confectionery group facturing plant in Baltimore, Ferrero uses around
INR41.6bn (US$606.1M),” Ferrero announced on 1 April Maryland, as part of the deal. 160,000 tonnes/year of palm
said Patanjali spokesperson that it had agreed to buy the CNBC said that in the past oil, Oliver Charrier, Nutella
S K Tijarawala. cookie, fruit snack, ice cream two years, Ferrero had built global president of market-
Ruchi Soya entered a cor- cone and pie crust business- up its presence in the USA, ing and innovation, said in
porate insolvency resolution es of Kellogg Company for buying Ferrara Candy Co for November 2017.
process in December 2017. US$1.3bn. US$1bn and Nestle’s US can-
In August last year, cook- The acquisition – expected dy business for US$2.8bn.
ing oil business Adani Wil- to close in the second half The latest deal was part of
mar emerged as the highest of the year – includes the Ferrero’s US strategy to buy
bidder for Ruchi Soya with Keebler and Famous Amos and modernise neglected
a INR60bn (US$875M) cookie brands, Fruity Snacks, brands within broader food

Source: Frenzeelo
bid but withdrew from the and Keebler’s ice cream cones companies. The Italian group
bidding process because of and pie crust products. released a “better Butterfin-
delays in the completion Ferrero will also acquire ger” candy bar last year with a
of Ruchi’s insolvency, the six US food manufacturing new recipe with no hydroge-
Financial Express said. facilities and a leased manu- nated oils, Eater reported.

Historic flooding in Nebraska to hit soya and corn planting decisions

Major flooding in the Nebraska, USA is hit- corn and soyabeans as little wheat was to move grain, the flooding had affected
ting grain transport and would affect soya planted in the flood-affected areas. transportation with at least 15 bridges on
and corn planting decisions in mid-April, “In most of the area we’re talking about, the state highway system washed out or
World Grain reported on 25 March. you would have early planting normally damaged, and major disruptions to the
US President Donald Trump declared beginning about mid-April through mid- BNSF Railway service, World Grain added.
on 21 March that a major disaster existed May,” he said of corn and soyabeans. Reuters also reported on 22 March that
in Nebraska and ordered federal aid to However, fields may not be dry enough the flooding had shut down some 13%
supplement state, tribal and local recovery for planting during that 30-day period and of the USA’s ethanol production capacity,
efforts in areas affected by severe winter farmers could wait until early June to plant with plants in Nebraska, Iowa and South
storms, straight-line winds and flooding. corn or wait until July to plant soyabeans. Dakota forced to shut down or scale back
“What we have is practically every river “If planting gets delayed, there’s a later production.
in the state of Nebraska affected by this window to plant soyabeans,” Nelson said, The Reuters report quoted three traders
event,” said Steve Nelson, president of the adding that yield reductions would be who said that about 100,000-140,000
Nebraska Farm Bureau. “considerable.” barrels/day of the 1.06M barrels/day of US
He said the flooding would affect mostly With both trucks and railways used ethanol capacity had been taken off line.

4 OFI – MAY 2019 www.ofimagazine.com

General news.indd 2 29/04/2019 11:08:59

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 NEWS
GrainCorp creates new oilseed business
Australia’s GrainCorp will be spinning off with operations in Australia, New Zealand, was expected to benefit from a range of
its malting business and integrating its Ukraine, Asia and North America. initiatives which would increase EBITDA by
grains and edible oils operations into a new New GrainCorp’s storage and logistics in- A$55-80M (US$40-57M)/year, including
business called New GrainCorp. frastructure assets comprised 145 country expanded footprints in Canada, Ukraine,
“The proposed demerger would en- receival sites, with 20M tonnes of storage and India; expansion in organics; improve-
able both MaltCo and New GrainCorp to capacity and seven export terminals. ments in stock management; grain cost
pursue independent operating strategies, After the demerger, New GrainCorp reductions; new rail contracts; supply chain
with discrete capital structures, and attract would continue to engage with potential integration and improved asset utilisation.
investors with different priorities,” the com- buyers for either all or parts of the com- The news of GrainCorp’s demerger
pany said in a press release on 4 April. pany, including Long-Term Asset Partners, comes just weeks after it announced on
New Grain Corp would become a which made a takeover offer of US$1.69bn 4 March that it had agreed to sell its Aus-
domestic and international grain handling, in December last year. tralian Bulk Liquid Terminals business to
storage, trading and processing company The company said New GrainCorp ANZ Terminals Pty Ltd for some US$246M.

IN BRIEF Barry Callebaut pledges sustainable coconut oil use

UK: The City of London is Global cocoa and chocolate
banning junk food in adverts products leader Barry
on its public transport sys- Callebaut has pledged to use
tem to tackle childhood obe- sustainable coconut oil as
sity, Olive Oil Times reported part of its Forever Chocolate
on 20 March. commitment for 100%
The ban – which took sustainable ingredients by
effect on 25 February – pre- 2025.
vents food and drinks that “Coconut oil is an important
are high in fat, sugar or salt ingredient for our custom-
(HFSS) appearing in adver- ers, used in many ice cream
tisements on the Transport applications and confectionery
for London (TfL) network. fillings,” Barry Callebaut said
The profiling model used on 2 April, a month after the ability to invest in their farms.” the world’s largest producers
would produce a score for a company and the US Agency With over 80 representa- of coconut oil, with 95% of
product based on its nutri- for International Develop- tives, the roundtable meeting global coconut harvested by
tional contents in 100g to ment organised a roundtable was attended by companies smallholder farmers.
determine whether or not it on sustainable coconut and representing over 50% of the In separate news, Barry
was a HFSS product, mean- coconut oil. global coconut oil supply and Callebaut announced that it
ing cooking ingredients such “It is estimated that around included some of the largest had inaugurated a new cocoa
as olive oil would face the 50% of the world’s coconut buyers and processors in the grinding unit in Abidjan, Côte
advertisement ban, wrote trees are beyond their most sector, Barry Callebaut said. d'Ivoire on 29 March as part
Olive Oil Times. productive years. The meeting showcased of a CHF55M (US$55M) in-
"Combine this with falling initiatives to address sustain- vestment that would increase
EU: The EU Commission is prices and coconut farmers able sourcing, transparency its cocoa bean processing
forecasting a 6% decline to face a cycle of stagnating and investment challenges in capacity by more than 40% in
11.5M ha in its total oilseed yield, low income and an in- the Philippines and Indonesia, the country.
area for the 2019 harvest,
UFOP reported on 26
March.
The Commission said COFCO to double oilseed purchases in Black Sea region
increases in rapeseed yields Chinese agribusiness giant COFCO International and Foodstuffs Corporation – is the overseas
were expected to offset the announced plans to double its grain purchases in agriculture business platform for COFCO
decline in area and projected Black Sea-producing regions as part of an initia- Corporation. It sources, stores, handles,
a harvest of 19.9M tonnes tive to increase its reach in grains and soyabeans processes, trades and transports grains, oilseeds,
in 2019. procurement, the Financial Times (FT) reported cotton and coffee around the world.
Sunflower production on 26 March. FT wrote that COFCO’s early interest in
was expected to fall slightly COFCO chairman Jingtao Chi said that the becoming an international trader to rival the
by 0.7% to reach 10.1M company planned to double the volume of ABCD traders – ADM, Bunge, Cargill and Louis
tonnes, which would still grain it sourced from Ukraine and Russia this Dreyfus – was initially greeted with skepticism as
exceed the long-term mean year compared to last year, as part of aims to it struggled to integrate its 2017 acquisitions of
by 7%, UFOP wrote. The serve markets beyond China and reach a goal of Dutch grain trader Nidera and the Noble Group's
soyabean area would remain sourcing more than 60M tonnes/years of grains agricultural unit. However, it was progressing in
at about 1M ha, with a crop and oilseeds by 2022, from 40M tonnes/year building operations outside China, with just 20-
estimate of 2.9M tonnes. currently, the FT wrote. 30% of the 106M tonnes of grains and oilseeds
COFCO – the China National Cereals, Oils it moved last year going to buyers in China.

6 OFI – MAY 2019 www.ofimagazine.com

General news.indd 3 29/04/2019 11:09:02

 BIOFUEL NEWS
China to review DDGS anti-dumping tariffs
China’s Ministry of Commerce has tein byproduct of corn ethanol production, In January 2017, China raised the
confirmed that it will start reviewing its it forms a key part of profits for biofuel anti-dumping duties on US DDGS to be-
anti-dumping tariffs on US imports of dried producers. tween 42.2-53.7%, with anti-subsidy tariffs
distillers grains with solubles (DDGS), a The USA is the world’s top exporter of ranging from 11.2% to 12%. The tariffs
byproduct of biofuel production used as a DDGS and China the top buyer. were meant to be in force for five years.
feed ingredient, Reuters reported on In January 2016, China launched an The commerce ministry said the new
15 April. anti-dumping probe against imports of US review should be completed in a year.
The ministry said it would “review DDGS following complaints from Chinese It comes amid trade talks between Beijing
whether it is necessary to continue to producers that US DDGS was being sold and Washington to end their ongoing trade
impose anti-dumping and anti-subsidy at prices “below normal value”, hurting the dispute, which has seen both countries
measures on imported DDGS from the domestic industry. The country imposed impose tariffs on each other’s products,
United States,” according to a statement 33.8% tariffs on US DDGS in September including soyabeans and edible oils.
posted on its website. that year and Chinese DDGS imports in A 90-day truce that took effect on
DDGS is used in animal feed as a substi- 2016 fell 55% from 2015, to total 3M 1 January saw China pledge to increase its
tute for corn or soya meal. As a high-pro- tonnes, according to Reuters. imports of US farm goods, Reuters wrote.

IN BRIEF Palm biodiesel exports to China and EU surge

THAILAND: State-owned
Surging biofuel demand from months”, although that would the Malaysian Reserve wrote.
oil and gas company PTT Plc
China and Europe has led still depend on diesel prices, The price slide wiped out gains
has agreed to buy 100,000
to palm methyl ester (PME) said Heather Zhang, an analyst made in January, and also came
tonnes of crude palm oil
exports from Indonesia and at consultancy firm PRIMA. as the European Union (EU)
(CPO) to produce biodiesel
Malaysia climbing by more than “The arbitrage opened in moved to cap the amount of
for export in a move to
30% in the first quarter of this February with the plunging palm-based biofuel that can be
shore up prices and use up
year, the Malaysian Reserve prices, which makes palm more used in the bloc.
400,000 tonnes of existing
reported on 8 April. attractive to European buyers Shipments of PME from Ma-
stock, the Bangkok Post
This was mainly due to the versus other feedstock such as laysia and Indonesia to Europe
reported on 14 March.
widening gap between the price waste-based biodiesel.” probably climbed more than
Last year’s volume had
of palm oil and Brent crude oil, The increased exports were 30% to 145,000 tonnes in first
left a surplus of 500,000
which had jumped 27% in the a rare bright spot for Malaysia quarter 2019, Zhang said.
tonnes and the government
first three months of the year, and Indonesia, as they saw The Malaysian Reserve said
had increased the methyl
the report said. palm prices falling by more than China’s PME imports grew
ester content of biodiesel to
“China started buying and 8% in the past two months almost 50-fold to 751,056
20%, as well as using CPO
the flows are seen to be amid concerns over the size of tonnes last year, thanks to the
to generate electricity.
healthy in the next several stocks and lacklustre demand, low price.

Argentina/Indonesia lead to tripling of EU biodiesel imports

EU biodiesel imports nearly producer of biodiesel, with an
tripled in 2018 against 2017, output of 13M tonnes includ-
when anti-dumping tariffs on ing hydrotreated vegetable oil,
the fuel from Argentina and production capacities had not
Indonesia were removed, says been used fully for many years.
Source: Eurostat, AMI

Germany’s oil and protein “We fear that in the case of

plants association, UFOP. Indonesia, pending EU pro-
“Whereas biodiesel imports ceedings will result in a trade-
from Argentina and Indonesia based compromise. The reason
only played a secondary role is that the EU has launched an
in previous years, things have initiative for resuming nego-
changed profoundly since tiations with members of the
October 2017,” UFOP said on UFOP’s figures show that with Argentina accounting for Association of Southeast Asian
28 February. in 2017, EU biodiesel imports 1.648M tonnes, and Indonesia Nations and the EU must have
The European Commission totalled 1.165M tonnes, with taking a 785,000 tonne share. something to offer.”
imposed anti-dumping duties Argentina accounting for In contrast, the EU imported Following a European Bio-
on Argentine and Indonesian 356,000 tonnes and Malaysia just 545,000 tonnes of bio- disel Board request for further
biodiesel in 2013 but had to taking a 387,000 tonne share. diesel in 2016, with Malaysia investigations, the EU reached
remove most of them in 2017 (see Figure, above). supplying the majority share of an agreement on Argentine
after losing challenges at the However, in 2018, the EU’s 285,000 tonnes. biodiesel imports in January
World Trade Organization and biodiesel imports nearly tri- UFOP said that although the but its investigation into Indo-
European Court of Justice. pled, totalling 3.329M tonnes, EU was the world’s biggest nesia is still ongoing.

8 OFI – MAY 2019 www.ofimagazine.com

Biofuel news May.indd 2 29/04/2019 08:54:17

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 BIOTECH NEWS
IN BRIEF
USA: Calyxt Inc announced
Jury awards over US$80M
the launch of a gene-edited
high oleic soyabean oil for
the US market which will
in first US Roundup test case
be sold to the food service A 70-year-old Californian res- the 11,200 Roundup cases in Monsanto and some analysts
industry for frying and salad ident has been awarded more the USA had been consolidat- believed settling lawsuits over
dressings, as well as sauce than US$80M in damages ed in Hardeman’s case. Roundup could cost more than
applications. after a jury ruled that Roundup, Last year, California US$5bn, Bloomberg said.
“Calyno oil contains ap- the weedkiller produced by groundskeeper Dewayne John- The jury in Hardeman’s case
proximately 80% oleic acid German chemical firm Bayer, son was awarded US$78M in found that Bayer had failed to
and up to 20% less saturat- had been a ‘substantial factor’ damages and another Roundup warn of the product’s risks and
ed fatty acids compared to in giving him non-Hodgkin’s trial was under way in Oakland, had acted with negligence.
commodity soyabean oil, as lymphoma. California, Bloomberg said. ▪ A French appeals court ruled
well as zero grams of trans The US District Court in A spokesman for Bayer – on 11 April that Bayer’s Mon-
fat per serving,” Calyxt said San Francisco awarded Edwin which acquired Monsanto santo was legally responsible
in a press release on 26 Hardeman compensatory dam- last June for US$63bn, and for the ill health of a farmer
February. ages of US$5.3M and punitive its Roundup brand – said the who inhaled vapour from
The company said the damages of US$75M on company would continue to its Lasso herbicide in 2004,
oil – produced via gene 27 March. defend the herbicide. reported BBC News. Paul Fran-
editing – had up to three The trial was the first US The company planned to ap- cois’ case had been ongoing
times the fry life compared “bellwether” or test case aim- peal the latest verdict, accord- since Monsanto was first found
to commodity oils, providing ing to reach a large-scale res- ing to the Bloomberg report. legally responsible for poison-
a more sustainable product. olution over glyphosate-based Bayer had lost more than ing him in 2012. Lasso was
The oil was sourced from Roundup. More than 760 of 60% of its value since acquiring banned in France in 2007.
Calyxt high oleic soyabeans
grown over 13,700ha of
land in Upper Midwest
region.
New ‘bee safe’ pesticides may still cause harm
According to Forbes, New pesticides regarded as safe for bees could
Calyxt was originally formed be causing harm to these vital pollinators when
in 2010 as a subsidiary of combined with fungicides being applied to
French biotech company crops, reported the Independent newspaper on
Cellectis. Scientists used the 11 April.
gene-editing TALEN tech- In 2013, the EU introduced a partial ban on
nique to engineer the high three neonicotinoid pesticides – clothianidin,
oleic soyabean in 2014, thamethoxam and imidacloprid – widely used
and the company had other on crops including rapeseed and maize, but
gene-edited foods, such linked to global bee declines. The ban was wid-
as high fibre wheat and ened to all outdoor use in April 2018.
reduced browning potatoes, The Independent wrote that flupyradifurone,
in the pipeline. sold by German chemical firm Bayer under bees tested. Along with flupyradifurone, the EU
Gene editing edits a the brand name Sivanto and authorised by also authorised another pesticide, sulfoxaflor,
plant’s existing genome, the EU in 2015, had been marketed as a safer in 2015.
compared with traditional insecticide. However, a study by University of The Pesticide Action Network said both
genetic modification (GM), California scientists found that exposing honey chemicals were so similar to neonicitinoids that
where foreign DNA is in- bees to realistic doses of flupyradifurone, in it was wrong to consider them separately.
serted into the organism. combination with a common fungicide, led to Sivanto was available in Greece, Italy, the
abnormal behaviour and death in many of the Netherlands and the USA, the Independent said.

Bolivia allows planting of GM soya to make biodiesel

Bolivia has authorised farmers to plant a EFE wrote that Bolivian Institute of representative in Cuatro Cañadas, Santa
GM soyabean as part of a project to pro- Foreign Trade (IBCE) data showed Bolivia Cruz, of the National Association of Oil-
duce biodiesel, Spanish news agency EFE spent around US$900M on imports of seed and Wheat Producers (Anapo).
reported on 20 March. conventional diesel fuel. Associations representing small and
The authorisation calls for planting IBCE director Gary Rodriguez said pro- large producers in Santa Cruz had jointly
250,000ha with GM soya to be used ducing its own biodiesel would reduce Bo- declared an agricultural emergency in the
exclusively to make biodiesel and includes livia’s need to import conventional diesel. region, pointing to damage affecting more
roughly US$2bn in public funds for the Planting the drought-resistant HB4 strain than a third of the soya crop planting.
necessary infrastructure and machinery, of GM soya could boost yields for growers Destruction due to drought, floods and
according to Hydrocarbons Minister Luis by 20-30% from the current average of other causes had already cost more than
Alberto Sanchez. 2,500kg/ha, according to Fidel Flores, the US$168M in losses, the associations said.

10 OFI – MAY 2019 www.ofimagazine.com

Biotech news.indd 2 29/04/2019 08:57:24

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www.ofimagazine.com OFI – MAY 2019 11
 TRANSPORT NEWS

Traders may invest in Brazil highway

Brazilian commodities giant, the Amaggi 2018, according to Reuters. year or early in 2020.
group, and the world’s big four ‘ABCD’ ag- EDLP director Roberto Meira said the Meira said the grain traders could invest
ricultural traders could make a joint bid to plan – with a proposal for handing over in both the road and the rail projects,
operate a road connecting Brazil’s oilseed the BR-163 highway to private investors – although the bidding could attract other
belt to northern ports, while also consid- would involve convincing the government investors. The firms hoped that making the
ering an investment in a parallel railway, to offer a 10-year concession on the road, investments would cut costs and remove
Reuters reported on 11 March. shorter than the typical 20-30-year tenure the uncertainty of trying to move crops up
Archer Daniels Midland Co (ADM), on projects currently approaching auction. north without a railroad, he added.
Bunge Ltd, Cargill Inc, Louis Dreyfus Co The shorter tenure would allow for Amaggi is active in large-scale soyabean
and Amaggi had commissioned a study on oilseeds and grains shipped by truck to be production and trading in Brazil. It trans-
operating a 968km stretch of the BR-163 migrated to the proposed Ferrograo rail ports crops from the northwest regions of
highway for 10 years, according to infra- line that would run a similar route to the Mato Grosso and southern Rondônia via the
structure and logistics business develop- BR-163 starting in 2025, Meira said. Northwest Export Corridor; and also oper-
ment firm EDLP. The highway was the main In January, the government’s privatisa- ates in the Tapajós Corridor in a joint ven-
route to northern ports responsible for tion secretary had said that the Ferrograo ture with Bunge to transship crops between
28% of Brazilian soya and corn exports in rail project could be ready for bidding this Miritituba and Barcarena in Pará state.

IN BRIEF
AFGRI to expand storage in South Africa
NETHERLANDS: HES Western Australia. Through
Botlek Tank Terminal (HBTT) Philafrica Foods, it owns and
announced on 11 April that operates maize and wheat
it had contracted SJR Tank mills; an oilseed crushing,
Construction to supply six extraction and refining plant;
biofuel storage tanks. and animal feed plants.
The tanks were due to Venter said the creation of
be installed in August at the strategic storage platform
HBTT’s terminal at the Port vehicle, AFGRI Grain Silo
of Rotterdam. Company Proprietary Ltd, had
HBTT said the six tanks been made in collaboration
represented the latest in- with a consortium of leading
vestment in its tank storage. South African institutional in-
Capacity was doubled to South Africa’s AFGRI Group but to expand into the storage vestors to enable the growth
490,000m3 in 2017 and Holdings (AGH) is creating a of other types of commod- of grain storage capacity in
the new tanks increased commodity/grain storage plat- ities,” said AGH CEO Chris South Africa and on the con-
its total storage capacity to form to expand the country’s Venter on 8 April. tinent, and to strengthen food
510,000m3. current storage capacity from AGH is an investment hold- security in the region.
HBTT stores and trans- some 4.7M tonnes to 6M ing company with interests in AGH’s current 4.7M tonnes
ships liquid bulk products tonnes in the near future. food, agriculture and financial of grain silos and bunker com-
including clean petroleum “This will allow us to not services, operating in 11 plexes are spread across six
products and biofuels. only cater for grain storage, African countries as well as provinces in South Africa.

European Commission urges IMO to change ‘scrubber’ rules

The European Commission (EC) is urging expected to lead to a degradation of the emerge without further guidance.
the International Maritime Organization marine environment due to the toxicity of “By adopting measures applicable to all
(IMO) to change its rules under which water discharges,” the EC said in a draft ships, the IMO will limit the proliferation of
liquid effluents can be discharged from submission to the IMO on 8 February. local or regional measures, which … could
marine ‘scrubbers’ into the sea. The EC would like current guidelines har- contribute to the administrative burden on
The use of ‘scrubbers’ or exhaust gas monised, defining the areas and conditions crews,” the EC submission said. “A uniform
cleaning systems (EGCS) is expected to under which liquid effluents from scrub- measure will also limit the risk of prosecu-
grow as a result of the IMO’s global 0.5% bers can be discharged into the sea. tion and detention of ships in the context
sulphur cap on marine fuel, coming into Ship & Bunker wrote that the EC was of port state control inspections.”
effect on 1 January 2020 (see Editor’s Com- concerned that current guidelines did not However, the Clean Shipping Alliance
ment, OFI February 2019). address the discharge of certain metals or 2020 – representing over 30 commercial
The EC would like the IMO’s Marine specify discharge criteria specific to certain and passenger shipping firms – said the
Environment Protection Committee to con- geographical areas. EC was needlessly creating concerns at
sider its proposal when it meets in May. As a result, some areas like Singapore a time “when there are already issues in
“The operation of ships installed with and Fujairah had introduced their own the maritime industry regarding the future
EGCS – particularly in port waters, coastal rules for scrubber wastewater discharge, availability, suitability and costs of fuels and
areas or ecologically sensitive areas – is and a patchwork of different rules could the effects on global trade and shipping.”
12 OFI – MAY 2019 www.ofimagazine.com

Transport news May.indd 2 29/04/2019 09:14:15

 Koole Pernis (Rotterdam)
(NL), cap. 675,000 m3
Koole Amsterdam
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Koole Nijmegen
(NL), cap. 79,000 m3
Koole Zaandam
(NL), cap. 43,000 m3
Koole Gdynia
(PL ), cap. 29,900 m3
Koole Minerals (Rotterdam)
(NL), cap. 1,200,000 m3
Koole Botlek (Rotterdam)
(NL), cap. 1,622,000 m3
Koole Liverpool
(UK), cap. 22,004 m3
Koole Avonmouth
(UK), cap. 24,553 m3

Robert Guijs
T. +31 (0) 613 340 360
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www.ofimagazine.com OFI – MAY 2019 13


 RENEWABLE NEWS
IN BRIEF
GERMANY: German
Vantage to acquire Textron
oleochemicals firm Oliqem
GmbH announced on
1 March that it was changing
Plimon natural oils business
its name to Golden Agri-Re- US-headquartered Vantage Textron’s portfolio includes care business, said the acqui-
sources (GAR) Germany, Specialty Chemicals has agreed cosmetic oils, food oils, bismuth sition – expected to close by
completing its integration to buy Textron Plimon SLU, a derivatives, cosmetic ingredi- June – would create a global
into GAR, which bought it in producer and processor of nat- ents and preservatives. leader in the increasingly
2013. GAR is a leading In- ural oils for the personal care, “This strategic combination demanding world of traceable
donesian oil palm plantation food and chemical industries. builds on Vantage’s existing and sustainable natural oils for
company with operations “Located in Granollers, Spain, leadership position in jojoba oil personal care.
in palm oil processing and Textron is focused on supplying and further establishes Vantage Textron is the fourth acqui-
refining, and production of high quality, natural oils out of and Textron as premier provid- sition Vantage has completed
palm-based products such a new, state-of-the-art manu- ers of natural oils for personal since private equity firm HIG
as cooking oil, biodiesel and facturing facility that sources care and food,” said Vantage Capital acquired it in October
oleochemicals. oils and seeds from all over the CEO Andy Harris. 2017. In 2018, it agreed to buy
world,” Vantage said in a press Serge Rogasik, senior vice speciality surfactants producer
USA/INDIA: US renewables release on 4 April. president of Vantage’s personal LEUNA-Tenside GmbH.
firm Gevo Inc announced
on 9 April that it had signed
a deal with Indian process
engineering company Praj Bio-glue model from bee saliva and flower oil
Industries to commercialise adhered,” said Carson Meredith, a professor at
the production of renewable the institute’s School of Chemical and Biomo-
isobutanol from sugar-based lecular Engineering. “Being able to withstand
feedstocks such as juice, those kinds of changes in humidity is still a
syrup and molasses from challenge for synthetic adhesives.”
sugarcane or sugar beets. The institute published a study on 26 March
Praj will provide engi- in the Nature Communications journal de-
neering and construction scribing how a bee’s own salivary secretions,
services to customers using produced from drinking nectar, coated pollen
a process design package grains, allowing them to stick together. The
incorporating Gevo’s propri- second ‘glue’ ingredient was a plant-based oil
etary isobutanol biocatalyst. that coated the pollen grains, called pollenkitt,
In addition, Gevo also which helped stabilise the nectar’s adhesive
agreed that Praj would properties and protected it from humidity.
commercialise Gevo’s “It works similarly to a layer of cooking oil
renewable hydrocarbon Researchers at the US Georgia Institute of covering a pool of syrup,” Meredith said. “The
products in India, including Technology are looking at how bees combine oil separates the syrup from the air and slows
its alcohol-to-jet fuel and their own saliva and flower oil to carry pollen, down drying considerably.
isooctane. The first step as a model for a bio-inspired glue. “We believe you could take the essential
would involve Praj setting “A bee encounters not just wet and humid concepts of this material and develop a novel
up a pilot plant to introduce environments but windy and dry surroundings adhesive with a water-barrier external oil layer
Gevo’s technology to poten- as well, so its pollen pellet must counteract that could better resist humidity changes in the
tial customers, Gevo said. those variations in humidity while remaining same way,” he added.

Danimer to open canola biopolymer plant in USA in September

US bioplastics producer Danimer Scientific plant in Kentucky, which would produce develop biodegradable plastic bottles, the
– which produces a polyhydroxyalkanoate bioplastic resins or pellets that could be Western Producer wrote.
(PHA) biopolymer from canola oil – says used to make items such as food packag- The company combined its PHA polymer
its new manufacturing plant in Kentucky, ing, drinking straws, cups, bottles and bags. with other bio-polymers to manufacture its
USA is expected to open in September, the “Customers can use (the pellets) … in bioplastic pellets.
Western Producer reported on 4 April. existing equipment to make their (plastics),” For the next few years, Danimer would
“The amount of inquiries and people Ivey said. “That’s something we’ve invested be focusing on refining its process and
reaching out to us, looking for sustainable heavily in … formulations that will work in proving the technology could work on
alternatives [to plastic], has grown expo- existing equipment.” a commercial scale, the report said. The
nentially,” said Richard Ivey, marketing man- Danimer – which had partnerships with canola oil for the plant would likely come
ager for Danimer, which holds 125 patents global food giants PepsiCo and Nestlé – from canola growers in the US southeast.
in 20 countries for its PHA fermentation had developed a biodegradable potato Ivey said it required about one pound
technology. chip bag in collaboration with PepsiCo, (0.45kg) of canola to produce one pound
The company had been retrofitting a and signed a deal with Nestlé in January to of PHA.
14 OFI – MAY 2019 www.ofimagazine.com

Renewable news May.indd 2 29/04/2019 09:04:49

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www.ofimagazine.com OFI – MAY 2019 15

 CENTRAL ASIA
Prior to the beginning
of the 2000s, production
of oilseeds in the vast
area of Central Asia was
underdeveloped, mainly
due to mountainous terrain.
However, the region is now
looking at becoming a centre
of oils and fats production
in Asia in the coming years
Eugene Gerden

C
entral Asia is a region that stretches
from the Caspian Sea in the west
to China in the east, and from
Afghanistan in the south to Russia in the
north. With a population of 70M, the
region may become a new centre for
oils and fats production in the next few
years, mainly through rising production of
oilseeds.
Several regional governments have
recently stressed the need to ensure
regular supplies of oilseeds and oils for the
domestic market and for export .
Prior to the 2000s, the production of
oilseeds and edible oils in Central Asia
was largely undeveloped, mainly due to
New players in oi
mountainous terrains, which hindered of Agriculture, annual vegetable oil about 35% of the total oilseed area in
growing activities. production in the country ranges from Kazakhstan, and the plan is to grow this
However, the situation has changed in 340,000 to 360,000 tonnes but should share in the next few years.
recent years, with a significant increase in increase significantly in the next two to In the meantime, Kazakhstan is not the
demand for high-quality vegetable oils and three years. only country in Central Asia planning a
fats. This has mainly been due to the rise Kazakhstan’s total oilseeds area stands significant increase in oilseed production
in the local population’s purchasing power, at about 3M ha and has increased almost and processing.
coupled with the introduction of new five-fold in the last six years.
technology in the countries’ agricultural According to recent statements of Uzbekistan
sectors. an official spokesman of Kazahkstan In January, the Uzebek government
According to Olzhas Tursunkulov, a President Nursyltan Nazarbayev, the announced plans to expand the country’s
senior manager of Syngenta Kazakhstan, country has the potential to increase its oilseed sown area seven-fold. It said this
the annual consumption of vegetable oils oilseed area to 5M ha by 2022-2023. would help increase vegetable oils and
in Central Asia is estimated at about 1M Sunflower accounts for almost fats output so the country could start
tonnes and continues to grow. 864,000ha of Kazahkstan’s 3M ha of exports.
This is significantly higher than total oilseeds, most of which is grown in Currently the total oilseeds area in
production in the region, which last year eastern Kazakhstan. Uzbekistan is estimated at 150,000ha to
amounted to 660,000 tonnes. As a result, According to Kazakh government plans, 160,000ha. Like Kazakhstan, sunflower
a significant volume of oils and fats must particular attention will also be paid to accounts for most of the sown area,
be imported. increasing rapeseed and rapeseed oil followed by rapeseed and flax.
production. According to the Prime Minister of
Kazakhstan Kazakh Ministry of Agriculture figures Uzbekistan, Abdulla Aripov, one way to
Kazakhstan – one of the most show that, over the past five years, the increase oilseed production is by creating
economically developed Central Asian country’s rapeseed area has expanded conditions to consolidate the industry.
countries – is the leading producer of by 40%, compared with 2013, with Unlike Russia, where most oilseed
vegetable oils and fats in the region. most sowing areas located in northern production and processing has been
The country accounts for more than Kazakhstan. carried out by large agricultural holdings,
80% of Central Asia’s total oilseeds area. The area under flax will also be Uzbekistan and other Central Asian states
According to the Kazakh Ministry expanded. Currently, flax occupies mostly have individual farming enterprises,

2 OFI
16 OFI––MONTH
MAY 2019
2018 www.ofimagazine.com

CA 3.indd 2 25/04/2019 09:23:50

 CENTRAL ASIA
Almaty, the largest city in Kazahstan, is located in mountainous area of southern Kazakhstan,
where the terrain has hindered oilseed production

country’s oilseeds area and to create by the end of the year.

conditions for a significant increase in Turkmenistan Deputy Prime Minister
vegetable oil production. Chary Gylijov has confirmed that there
Currently, the production of are also plans to increase sunflower oil
vegetable oils in Turkmenistan remains production, saying that two plants for
relatively low, not exceeding 100,000 sunflower oil production, with a combined
tonnes. However according to the capacity of 24,000 tonnes, will be officially
president, these figures should increase commissioned in the country this year.
by three to four times at the beginning of
2020. Tajikistan
As part of these plans, particular Another country in Central Asia which
attention will be paid to increasing is ready to expand its oils and fats
cottonseed oil production, a significant production in the coming years is
part of which will be for export. Tajikistan.
According to the Turkmenistan Ministry Currently, Tajikistan has enough capacity
of Agriculture, current domestic capacities to process oilseeds within the country
for the daily production of cottonseed but its main problem is that most of its
oil is around 300 tonnes. However these facilities were established in the Soviet era
figures should grow around 1.5 times by and are in need of modernisation.
2019- 2021. The lack of modern processing facilities
Implementing these plans will be has been one of the major problems for
achieved through building new production the Tajik oils and fats industry. However,
plants and expanding existing facilities. local authorities have reportedly said they
Cottonseed is currently the main raw would like to invest US$150M in the
material for the Turkmenistan oil and fats technical modernisation of the industry in
industry. However, local authorities are the next two to three years.
planning the expansion of sown areas The annual production of vegetable oils
under sunflowers and other crops. in Tajikistan is estimated at about 100,000

n oilseeds The large-scale production of olive oil is

also planned in the southern part of
the country, where there is a subtropical
climate. Several hundred hectares of
olive trees are to be planted in this region
tonnes. However, the local government
plans to create conditions to double these
figures by 2021.

Eugene Gerden is a freelance journalist

●

mostly of small and medium size.

The Uzbek government set up
the Association of Fat and Oil
Industry Enterprises of Uzbekistan
(Uzegmoisanomaut) in 2017 to help the
country increase local production.
According to Aripov, in addition to the
association’s establishment, a new state
strategy to grow the Uzbek oils and fats
industry will soon be developed.
The new strategy involves the
implementation of more than 30
investment projects, worth more than
US$350M, between 2019 to 2022, and
the development of a raw materials base.
This should bring the level of the
industry’s utilisation up to 90%.
The majority of funds to implement
these plans will be provided by the
state, while the rest will come from both
domestic and foreign investors.

Turkmenistan
Although agricultural development has
never been considered a priority by the
government of oil-rich Turkmenistan,
President Gurbanguly Berdimuhamedov
instructed the national government at
the beginning of the year to expand the

www.ofimagazine.com OFI – MAY 2019 17



CA 3.indd 3 25/04/2019 09:23:52

 SHORTENINGS
Today’s shortenings
cannot be mere
replacements of
partially hydrogenated
oils but must offer better
functionality as well
Charlotte Atchley

With the phase-out of partially

hydrogenated oils (PHOs) in the USA,
innovation in shortenings is no longer
linked to just replacing them but is now
driven by improving today’s alternatives.
“Now, these new shortenings must
compete on their own merit instead of
as a PHO replacement,” said Frank Flider,
consultant for Qualisoy.
This means shortenings must have
better functionality, a healthy profile, clean
labels, or a sustainable base oil.
Customising
new solutions
“Shortening manufacturers are juggling
a lot of balls right now looking for the
right shortenings to meet the various
needs of the bakers,” Flider said. This trend
will eventually lead down the road to
customisation. To meet specific shortening improvement in functional attributes, applications, Daniels said.
needs, suppliers are diversifying their which increases the working Bunge Loders Croklaan’s portfolio
base oils and hard stocks while using tools temperature range to overcome firm of shortenings, with palm, soya and
such as blending and interesterification to or soft consistencies,” said Tom Tiffany, high-oleic oils, provides bakers with a
come up with the right solution. senior technical sales manager, oils, wide range of temperatures and other
ADM. “With the use of high-oleic functional needs.
Functionality first oils, modification techniques such as “Bunge’s shortenings are made with
First and foremost, a shortening must be enzymatic interesterification and optimal high oleic soyabean oil, offering greater
functional. Depending on the application, crystallisation conditions, positive strides stability and functionality in tough
those functions may be different, but in functionality are being developed.” applications like icings and donuts,” said
shortenings need to be stable and easy- An example is the blending of high- Mark Stavro, senior director of marketing,
to-use. They must work well in the baker’s oleic soyabean oil with palm oil and palm Bunge Loders Croklaan.
process, maintain structure and quality fractions. “This reduces the amount The company also offers its PhytoBake
throughout the baked good’s shelf life of saturates of palm oil, thus making shortening for improved rollability and
and meet consumer expectations in taste, it less firm and widening the process longer shelf life in tortillas, which can also
texture, appearance and quality. temperature range,” Tiffany explained. be used in cookies, pie crusts, cakes and
“Even with PHOs behind us, some “Also, by using high-oleic soybean oil, the other baked goods.
of the existing challenges or key needs oxidative stability is maintained to help Functionality and stability can
remain,” said John Satumba, North address shelf life concerns.” certainly be improved through blending
America R&D director, global edible oil ADM’s second generation of soyabean and interesterification, but emulsifier
solutions, Cargill. “Bakers still want reliable oil-based shortenings also features a technology can also be employed.
supply, consistency in the fat system, wider working temperature range through “If removing PHOs took away a lot
ease-of-use and high stability for a long enzymatic interesterification of high-oleic of critical functionality, the use of high
shelf life.” soyabean oil with fully hydrogenated diglycerides, or distilled diglycerides,
Without physical and oxidative soyabean oil. has brought it back,” said Jim Robertson,
stability, shortenings cannot perform in product management director, emulsifiers,
a formulation and will lose some shelf Industry solutions Corbion. “When you combine a healthier,
life. They have to stay solid at room Today’s shortenings must meet high unsaturated oil with the binding capability
temperature and remain solid in the standards on all fronts, according to and accelerated crystallisation provided by
dough until they reach the oven, where Roger Daniels, vice-president, R&D and Trancendium, Corbion’s high-diglyceride
the high heat puts them to work. If the innovation for Stratas Foods. Stratas solution, you get the structure, flavour and
shortening melts ahead of the oven, it uses its proprietary Flex crystallisation texture needed for baking applications.
cannot do its job. process to produce a non-PHO high You also get low levels of saturated fat
“The future of shortening product oleic soyabean shortening which has and good oxidative stability, which means
development may take into consideration versatility across baking, icing and donut a better product shelf life.” u

www.ofi
18 OFImagazine.com
– MAY 2019 www.ofi
OFI magazine.com
– MONTH 2018 1

Shortenings.indd 1 24/04/2019 11:46:20

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www.ofimagazine.com OFI – MAY 2019 19


 SHORTENINGS
u Taking aim at fat lists more appealing. texture, flavour and colour attributes that
Once a shortening is fulfilling its job in a “In some cases, antioxidants can be set them apart from the competition.”
formulation, bakers may look to improve removed completely by formulating with “More shortenings have been
the Nutrition Facts Panel and take aim at high-oleic oil, whether its soya, canola or developed to fit more specific needs, from
the fat. “One thing we’re clearly seeing sunflower, while maintaining a moderate the sharp melt point profile needed for
now is a drive toward healthier options,” level of saturation,” Tiffany said. frying pastries to the cold temperature
Satumba said. “For some, this means Some shoppers also look for products hardness to provide the perfect crust for
reducing overall saturated fat content.” made from sustainable ingredients, or pies,” Cummisford said.
Bunge’s PhytoBake shortening has those that are grown and harvested in a “Function in the finished product and
replaced saturated fat with phytosterols, way that does minimal harm to the land or customer process is only one part of the
reducing saturated fat by up to 50%. farmers who own and work those fields. whole equation,” he continued. “Other
AAK’s Essence line of shortenings In the case of palm oil, bakers can rely factors include cost, stability, label-
is made from a blend of palm-based on organisations, such as the Roundtable friendliness as well as softer aspects
hardstocks and liquid oil, is non- on Sustainable Palm Oil (RSPO), to meet such as organic and non-GMO sourcing,
hydrogenated and lower in saturated fat these concerns. sustainable sourcing or natural.”
compared with all-purpose shortenings. “More often than not, providing Blending hard stocks and oils or using
“With a hardstock, you can design sustainable palm oil products is relatively enzymatic interesterification can address
a shortening blend to give the simple as it does not alter the properties gaps that exist if a baker were to use a
functionality and structure needed in of the finished shortening, just the supply single source of fat or oil for his or her
bakery applications while reducing total chain and documentation,” said Rick shortening, Tiffany explained.
saturated fat,” said James Jones, vice- Cummisford, director of quality, Columbus “Palm oil alone at times can form a
president, customer innovation, AAK USA. Vegetable Oils. very firm shortening, which can create
“Depending on our customers’ processing difficulties in mixing,” he said. “By blending
parameters, nutritional requirements and Customisation for the future palm oil with soybean oil, the solid fat
desired finished product attributes, we can From straight PHO replacement to other content and crystallisation tendency of
modify the hardstock to liquid oil ratio to challenges such as improved functionality, the shortening improves to allow for more
produce the ideal shortening for them.” a better nutritional profile and cleaner uniform mixing.”
Stratas has developed its Superb Select labels, each baker’s priorities are different. The company has also addressed the
1020 Shortening, which lowers saturated To meet these varying needs, shortening same issue with a line of soyabean oil-
fats by more than 40% and eliminates suppliers are creating customised based interesterified shortenings that are
hydrogenated fats. The shortening is solutions for bakers. also less firm than palm-based options.
made from a non-PHO soyabean oil and “One size does not fit all,” said Rudy When working on customising a
also satisfies another need bakers have: Nava, customer innovation applications shortening, it’s important the ingredient
cleaning up the label. specialist at AAK. “There are many supplier has a thorough understanding of
specialised shortening needs coming from how the elements of fat can be blended
Clean labels bakeries today. They need their products or interesterified to find the right ratio. It’s
A growing segment of US consumers are to deliver consistent high quality with also important to understand the baker’s
also concerned with issues such as a clean finished product goals.
ingredient list and sustainably-sourced “Many companies use the addition of
ingredients.
For some bakers, having a clean label
FDA ruling on PHOs vegetable hard fat or saturated fat to
provide the structure needed to replace
is the next challenge they face. With The FDA determined that partially PHOs in shortening,” said Steven Council,
shortening, clean label concerns seem to hydrogenated oils (PHOs) are not customer innovation manager, AAK USA.
have fallen on the word ‘hydrogenation’. ‘Generally Recognized as Safe’ (GRAS) “A technique employed more recently
Fully hydrogenated oils do not contain in 2015. PHOs are the primary dietary to produce shortenings from vegetable
trans fats but PHOs do, and both oils source of artificial trans fats, which oils is to blend fully hydrogenated oils
seem to have been lumped together in are linked to an increased risk of heart with unsaturated soft oils and then
consumers’ minds. That link appears to be disease. interesterify them.” This process allows
weakening, however. The FDA set a deadline of 18 formulators to use the benefits of the
“Some companies don’t want the term June 2018 as the date from which hard fat structure of fully hydrogenated
hydrogenation on their label, so they manufacturers cannot add PHOs oils with the pliability of the softer oils in
focus on palm oil hard fat,” Flider said. to foods. However, it extended the one shortening.
“What we find in surveys, though, is that a compliance date for products produced The array of shortening solutions for
consumer wanting something sweet isn’t before 18 June 2018 to 1 January bakers today is vast, from palm- and
super concerned about hydrogenation. 2020. The FDA also denied a food soya-based to new high-performance
That’s less of a priority to them, and additive petition from the Grocery options. This diversity in base oils, as
the connection between the word Manufacturers Association to approve well advancements in blending and
hydrogenation and trans fat is weakening.” certain limited uses of PHOs. To allow interesterification, have enabled ingredient
With hydrogenation becoming less of time for reformulation, the agency suppliers to deliver custom, application-
a concern, formulators are turning their has extended the compliance date specific shortening solutions to bakers. ●
attention to the antioxidants used to for these petitioned uses until 18
maintain the shelf life of shortenings and June 2019, and until 1 January 2021 Charlotte Atchley is senior editor at Baking
finished product. Formulators can lean on for these products to work their way & Snack magazine. This article is published
natural antioxidants instead of employing through distribution. courtesy of Sosland Publishing Company,
synthetic ones to make their ingredient Baking & Snack

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 SHORTENINGS

A role for high oleic soya

The US soyabean industry
has worked to develop
new shortenings utilising
high oleic soyabean oil
Gabriel Day
Food manufacturers have been working to
develop healthier alternatives to partially
hydrogenated oils (PHOs) since the US
Food and Drug Administration (FDA)
revoked their “generally recognized as
safe” status in June 2015.
The FDA’s long-awaited ban, introduced
due to PHOs’ link to heart disease, gave Figure 1: Comparison of puff pastry shortenings
food manufacturers three years to remove
the ingredient from their products. doughnuts,” Flider said produced pie crusts with the most desired
Since then, a great deal of work has Tests were also carried out on puff characteristics and also proved to be
gone into trying to find suitable functional pastries, with soya-based baker’s versatile, performing equally as well under
substitutes to PHOs, including blends of margarines formulated with high oleic hand-rolling and a pie press. Additionally,
liquid oils and hard stocks and interester- soyabean oil, conventional soyabean oil or the ingredient performed as well as, or
ified oils with fully hydrogenated hard- combinations of the two. better than, PHOs.
stocks, Qualisoy oil expert Frank Flider “We hypothesised that a 50/50 mix of In terms of mouthfeel, Qualisoy wrote
told Oils & Fats International. oleic and stearic in a shortening might that high oleic soyabean shortenings
“Some functionality was achieved, but approach the functionality of PHOs,” said reduced moisture uptake in the pie crusts,
overall, these products were severely Flider “Also, it was deemed necessary preventing them from becoming damp.
lacking in terms of oxidative stability and to reduce the polyunsaturates (PUFAs) Conventional soyabean shortening was
melting characteristics – they just weren’t as much as possible in order to get the comparable to high oleic soyabean
good enough. Much of the functionality oxidative stability normally seen with shortening in this respect.
of PHO shortenings came from the trans PHOs. The only real possibility of getting Flider described the functionality
fatty acid, elaidic acid, which is the trans this type of a ratio while achieving low of high oleic soyabeans compared to
form of oleic acid and has a melting point PUFAs was to utilise a high oleic liquid high oleic sunflower oil as “100%
exactly halfway between oleic acid and phase such as high oleic soyabean oil. interchangeable”.
stearic acid.” Our hypothesis turned out to be correct – “Both are incredibly great high stability
Undettered, Qualisoy – which studies determined that high oleic oils with a lot of functionality.
represents all sectors of the US soyabean shortenings came closer to PHO function- “In terms of availability to the world
industry – worked to develop applications ality than any other system attempted.” market, of course, high oleic sunflower
for high oleic soyabean oil, which it says Qualisoy said that the ideal puff pastry oil is much more available than high oleic
contains no trans fats, and has a lower should show an even layer and height, soya. In the US market, we’re getting
saturated fat content and three times the which it maintains after baking. The pretty close to being able to approach the
amount of beneficial monounsaturated experiments conducted showed that volume of sunflower production.”
fatty acids (MUFAs) compared to palm-based baker’s margarine produced As for the future, Flider says high oleic
conventional soyabean oil. the pastry with the least amount of soyabean oil shortenings are already
Qualisoy carried out functionality tests, height, resulting in pockets rather than available from a number of companies and
in collaboration with fats and oils supplier layers. Whereas, butter-based pastries with consumers increasingly demanding
Stratas Foods, to show that US-grown, showed the greatest height but toppled cleaner labels and sustainably-grown
high oleic soya-based shortenings are a over after baking (see Figure 1, above). products, the market should grow.
good ingredient for frying and baking, However, puff pastries made with high “The US planted area of sunflower
thanks to its heat stability and neutral oleic soyabean baker’s margarine is about 550,000-570,000ha and high
flavour. produced the ideal height and had the oleic soya is only a couple years from
conventionally desired honeycomb layers. that.”
Tests on pastries and crusts The margarine also maintained better Flider said about 150,000-160,000ha of
Flider said Qualisoy’s first prototypes were plasticity under both cool and warm high oleic soyabeans are currently planted
made in 2015 and tested on doughnuts. temperature conditions compared to in the USA. “We expect by 2021 to be
“Back a number of years ago when alternatives. over 500,000ha and we’re shooting by
they first announced the PHO ban, Time Similar to the puff pastry study, pie 2028 to have 6.5Mha planted in the USA,
Magazine had a tongue and cheek article crust shortenings were also tested at both which would make it the fourth largest
with the top five [foods] that would never refrigerated and room temperatures. In row crop in the country.” ●
be the same, and top of the list were the study, high oleic soyabean shortening Gabriel Day is OFI’s assistant editor

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 EASTERN EUROPE

Snapshot of Romania

The port of Constanta is regarded as a commodities trading hub for Romania and its neighbours

Romania is becoming an 2017 and US$194M worth of rapeseed, Sunflowerseed is Romania’s top oilseed
Romania’s combined exports of rapeseed, crop, with a US Department of Agricul-
increasingly important sunflowerseed and soyabean was worth ture’s (USDA) Global Agricultural Informa-
producer and exporter US$1.32bn, according to the OEC. tion Network (GAIN) report forecasting
a 2.4M tonne harvest for 2018/19.
of oilseeds thanks to its Sunflowerseed is key crop Sunflowerseed exports for 2018/19 were
Romania’s total oilseed area stands at just projected at 1.47M tonnes.
position on the Black sea below 2M ha. According to Oil World, its “In terms of destinations, there is a
and the advantages of oilseed production for 2017/18 was 4.5M clear preference for EU countries, such as
tonnes (see Table 1, p24). France (128,000 tonnes), the Netherlands
being an EU member state Its total edible oil production in 2017 (90,000 tonnes), Spain (65,000 tonnes)
was 683,600 tonnes, out of the EU’s total and Portugal (30,000 tonnes),” the 2017
Gabriel Day production of 3.5M tonnes (see Table 2, GAIN report said. “The major buyer out-
p24). Sunflower was the leading oil pro- side the EU was Pakistan (29,500 tonnes).”
duced, with production reaching 253,600 In terms of domestic consumption, sun-
Strategically located on the Black Sea, tonnes in 2017 (see Table 3, p24). flower oil accounts for 90% market share
Romania has its own small, yet strong
stake, in the oilseed industry, especially in
sunflowerseed production.
The country is one of the main sunflow-
er producing countries in the EU – along
with Bulgaria, France, Hungary, Italy and
Spain – and it is also the EU’s highest
sunflowerseed exporter, accounting for
17% of total EU sunflowerseed exports in
2017, with a market price of US$622M,
according to a 2017 report from the Ob-
servatory of Economic Complexity (OEC).
The country’s port of Constanta sits on
the Romanian coast, enabling Black Sea
shipments.
Romania and Bulgaria are the only
EU countries located on the Black
Sea. However, while Bulgaria exported
US$473M worth of sunflowerseed in Figure 1: Romanian regions with countries that have edible oil manufacturing facilities

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 EASTERN EUROPE
in terms of oil used for food purposes. Poland’s per capita consumption in the “Products derived from processing are
Sunflower oil consumption totalled same year was about 19.7kg, with Slovakia used in various fields including animal
253,600 tonnes in 2017 compared with at 16.1kg and Czech Republic at 16kg. feed, soap, cosmetics, textiles and
the second highest consumed oil – rape- The edible oil industry is worth an chemicals.”
seed, at 122,500 tonnes, according to Oil estimated €230M (US$261M), of which The industry has developed rapidly in
World figures (see Table 3, p24). €185M (US$210M) is the value of the the past few years, with concentration
“Similar to sunflower meal, half of domestic market, with €45M (US$51M) increasing dramatically with the entrance
sunflower oil production is use for domes- being the value of exports, according to of large international players, especially
tic consumption while the other half is the ‘Palm Oil Market in Romania’ report by from the USA, which currently account
exported,” the GAIN report said. the Indonesian Embassy and marketing for more than two-thirds of the country’s
In the 2017/18 marketing year, sun- firm Visionwise. edible oil production, the report said.
flower oil production was forecast at “Just over half of the processed edible “The industry is an oligopoly, as the top
338,000 tonnes and exports estimated at oil produced in Romania is distributed for four players control 80% of the market
125,000 tonnes, with Spain, South Africa, household consumption, while the rest in terms of value and volume. The most
Italy and France being notable buyers. is used as ingredients in other industries, important players are Bunge, Argus, Cargill
Rapeseed is an increasingly popular mainly in the food sector. and Agricover,” the Visionwise report said. u
crop among Romanian farmers and an-
nual production ranges between 1.5-2M
tonnes. Production for 2017/18 was
forecast at 1.75M tonnes by GAIN, with
exports being the main driver for farm-
ers. EU states are the main recipients of
Romanian rapeseed with 1.3M tonnes of
rapeseed exported in the first five months
of 2016/17.
“In the case of rapeseed oil, the main
purpose is for biodiesel, for which a
volume of some 120,000 tonnes was uti-
lised, with the country’s biofuel blending
volume rising to 6.5% from 5% in 2016,”
the GAIN report said. The balance of
35,000-40,000 tonnes of rapeseed oil is
exported, mainly to France, Germany and
the Netherlands.
Soyabeans remain a minor crop in
Romania, with some 285,000 tonnes of
forecast production in 2017.

Production and consumption

Romania produces around 550,000
tonnes/year of edible oil but, while having
an oilseed crushing capacity of 1.6M
tonnes/year, its utilisation rate is only
around 40%, according to the EU’s Special
Accession Programme for Agricultural and
Rural Development (SAPARD), which was
replaced in 2007.
The edible oil industry in the country is
focused more in the eastern, southern and
north-western regions, with facilities built
around an abundance of raw materials,
according to the Romanian research firm
Interbiz Group. The counties in these re-
gions with manufacturing facilities are Iasi,
Vaslui, Galati, Constanta, Ialomita, Dolj,
Bucuresti, Bihor and Satu Mare (see Figure
1, previous page).
Romania’s per capital consumption of
edible oil has grown from some 23.8kg/
capita in 2013 to 29kg/capita in 2017,
according to Oil World statistics.
“In 2004, the consumption of edible
oil was around 12kg/capita, similar to the
level in China and below the European
average,” the report said. Comparatively,

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 EASTERN EUROPE
u Palm oil potential palm oil imports, with an import value people started using it out of curiosity
Romania’s consumption of palm oil is of US$45.8M and an export value of because of the low price per unit,
small although leading producer Malaysia US$518,000. This is relatively low com- and then discovered some benefits that
believes this could rise in coming years as pared to most other EU member states. are now passed on through word of
demand for oils and fats increases. A good proportion of imported palm oil mouth.”
A Business Review report in 2012 said is dominated by the brand OLINA, which Perceived attributes of palm oil were
that Romania imported 4,800 tonnes of is distributed by Romanian vegetable oils its durability as it oxidises more slowly,
palm oil in 2011. supplier Render Com. its odour-free properties, and that it is
In 2017, the National Institute of Statis- “The benefits of palm oil are little known absorbed into food at a smaller extent
tics (NIS) recorded that Romania in Romania,” the Visionwise palm oil report compared with other types of oil.
accounted for only 0.14% of global said. “The trend seems to have been that “Malaysian producers forecast that
demand for palm oil will go up in the
Crop 2017/18 2016/17 2015/16 2014/15 2013/14 region, promoting it as a cheaper
alternative to most edible oils. Demand
Soyabeans 365 263 262 203 151 should grow because palm oil is used for
Sunflowerseed 2,400 2,032 1,786 2,050 2,100 confectionery, pastry, dairy and
cosmetic uses, and fuel for renewable
Rapeseed 1,800 1,730 1,090 1,360 661
energy,” Business Review wrote.
Linseed 3 3 4 3 4 Malaysia also views Romania’s port of
Total 4,568 4,029 3,142 3,616 2,916 Constanta as a gateway into the
Eastern European market, according to
Table 1: Romanian oilseed crop production (‘000 tonnes) Source: Oil World Annual 2018 the Business Review report. Former
Malaysian Plantation Industries and
Commodities Minister Tan Sri Bernard
Production 2017 2016 2015 2014 2013
Dompok said in the report that Romania
Soyabean oil 50.3 57.7 42.9 34.8 36.6 was the ideal gateway to neighbouring
Sunflower oil 387.5 326.1 403.2 360.4 304.4 Source: Oil World Annual 2018 countries like Bulgaria, Hungary, Serbia
and Ukraine, and Malaysian companies
Rapeseed oil 144.4 134.0 131.6 122.0 87.1 were interested in shipping palm oil into
Butter as fat 10.2 10.0 9.4 8.9 8.2 the region through Constanta.
Lard 76.1 77.3 76.6 75.1 72.3
Black Sea hub
Linseed oil 0.9 1.1 1.0 1.0 0.9 The port of Constanta is regarded not
Tallow & Grease 14.1 14.2 14.2 14.2 14.0 only as a hub of commodities trading for
Romania, but for its neighbours, according
Total 683.6 620.4 679.0 616.4 523.6 to Cédric Mayor, chief trader of Swiss
EU total 3,549.0 3,262.0 2,896.0 3,204.0 3,165.0 grain and fertiliser trader Ameropa.
“This partly makes it the busiest port
Table 2: Romanian oils and fats production (‘000 tonnes)
in the Black Sea,” he told World Grain in
December 2018.
Consumption 2017 2016 2015 2014 2013 In June 2017, Ameropa opened its new
Chimpex terminal at the port, adding
Soyabean oil 34.4 40.2 35.4 26.9 26.9 200,000 tonnes to its existing 300,000
Sunflower oil 253.6 256.6 235.9 198.8 195.2 tonnes of storage capacity. The
Chimpex berth can handle up to 10
Source: Oil World Annual 2018

Rapeseed oil 122.5 105.7 105.8 95.4 85.3

shipping vessels at one terminal and
Olive oil 4.6 5.9 4.8 4.7 4.5 demonstrates the company’s long-term
Palm oil 47.6 47.5 50.0 52.0 59.3 strategy to build exports from the region,
says Mayo
Palmkern oil 0.2 0.2 0.1 0.1 0.1
“Romania is an EU country but it’s part
Coconut oil 2.8 2.9 3.1 3.0 3.2 of the Black Sea,” he explains. “Its prices
Butter as fat 19.0 18.8 16.3 14.2 13.0T are similar to prices in Ukraine and Russia.
The country is also exciting because
Lard 73.4 74.5 74.1 73.3 73.6 agriculture is still developing, with a huge
Total 570.0 561.8 536.8 481.0 477.4 potential for yields to improve along with
agricultural techniques.”
Table 3: Romanian oils and fats consumption (‘000 tonnes)
Mayor says it is important to note that
Constanta is not only of Romanian origin
Exports 2017 2016 2015 2014 2013 but a hub for the whole Balkans.
“From Constanta, we ship from Slovakia,
Soyabean oil 20.6 25.9 14.9 7.1 12.9
Hungary, Serbia and Bulgaria all the way
Sunflower oil 168.6 125.8 187.9 192.7 191.5 down the Danube,” he told World Grain.
Rapeseed oil 29.9 39.3 35.3 30.0 21.4 Constanta is the biggest port in the
whole Black Sea and the most efficient,
Table 4: Romanian edible oils exports (‘000) Source: Oil World Annual 2018 Mayor says. “Our terminal being the

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 EASTERN EUROPE
sunflowerseed vessel for a French crusher.
2,500
That is never happening in Constanta.”
In addition to the Chimpex grain
2,000 terminal, Ameropa also acquired an
inland grain storage facility in 2016 in
1,500 Carpinis, which has total storage capacity

Source: National Institute of Statistics

of 56,000 tonnes.
“It’s railway access provides a key
1,000 logistical advantage and good connection
with western Europe and with our
500 Chimpex terminal,” the company said.

Conclusion
- With its position on the Black Sea and
2014/15 2015/16 2016/17 est 2017/18 fcst the advantage of being an EU member
state so its farmers are supported
Sunflower production Rapeseed production Soyabean production under the EU’s Common Agricultural
Policy, Romania is becoming an
Figure 2: Romanian oilseed production (‘000 tonnes) increasingly important producer and
exporter of oilseeds and grains.
biggest among the newest terminals, you will never see a 15-day line up at With the port of Constanta, Romania
is the most efficient as well.” Constanta except with winter has become a main trading hub for
The Chimpex terminal can load a conditions, ice and so on. That gives agricultural commodities, serving
Panamax vessel in two days. “It goes us a very nice advantage on trade, neighbouring Bulgaria, Hungary and
from 3,000 to 5,000 tonnes right up but also for a consumer, who knows Serbia.
to a 71,000 tonne intake,” Mayor says. when his wheat will come, what time It is a conduit to the outside world
“We loaded 10 of those to Vietnam at the port, when it’s going to leave. It for much of southeastern Europe and is an
two years ago, a combo of wheat and is rather different with other Black Sea important supplier of sunflowerseeds to
corn. ports,” he told World Grain. other EU countries, as well as destinations
“The efficiency of the terminal and the “We have experienced 40 days further afield. ●
port is way above Russian ones because waiting in front of Nikolaev with a Gabriel Day is OFI’s assistant editor

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 NEWS
PLANT & TECHNOLOGY

Global round-up of projects

Oils & Fats
International reports
on some of the latest
GEA wins contract to build
projects, technology olive oil mill in Saudi Arabia
and process news
and developments
around the world

IN BRIEF
BRAZIL: Biofuels producer
GranBio plans to resume
commercial operations
at its 82M litres Bioflex

Source: GEA
1 cellulosic ethanol plant
located in Alagoas by the
end of January, Biofuels
Digest reported.
The plant is expected German food production technology firm GEA “We were able to offer Nadec a
to produce 30M litres of has won a €3M (US$3.4M) contract from differentiated and integrated solution from
ethanol this year and 50M the Saudi National Agricultural Development the hands of a single supplier,” said Rafael
litres in 2020. Company (Nadec) to build and supply the Cárdenas, head of the center of excellence
Bioflex 1 came on stream industrial equipment for a large olive oil mill in for olive oil of GEA in Úbeda, Spain.
in 2014 but operations Saudi Arabia. “The cooperative relationship between
were halted in 2016 The mill would be located in the Al-Jouf Nadec and GEA’s Olive Oil Center of
due to complications region and was part of a Nadec project Excellence began in 2014.
in the sugarcane load’s involving 5M olive trees from a single farm of “This project is a very good example
pretreatment. 3,000ha. of GEA’s ability to deliver large projects
The plant extracts “The order is the second phase of an anywhere in the world and provide high
bagasse and sugarcane ongoing project that will enlarge the existing added value to customers since not only the
straw to produce cellulosic plant built in 2016,” GEA said. equipment but also the knowledge of the
ethanol. It would involve civil engineering, process is key” said Alvaro Martinez regional
automation engineering, processes and the head of western Europe, Middle East and
INDIA: Biochemicals equipment required to manage the olive oil Africa for GEA.
producer Petron Scientech plant. Nadec was one of the largest agricultral and
Inc’s BiochemUSA has GEA was leading the project, which included food processing companies in the Middle East
signed a memorandum of several Spanish machine manufacturers. and North Africa, GEA said.
understanding with the
Gujarat government to
develop a US$433.9M
biorefinery that produces Algae World to construct facility in Bangladesh
ethanol, biodiesel, animal
feed and corn oil using Algae World Inc, USA,
biomass and corn plans to build an indoor
as feedstock, Biofuels Digest algae growth facility in
reported on 31 January. Bangladesh to focus on
The zero-liquid discharge pharmaceuticals, nutraceuticals
facility would use 1M and biodiesel.
tonnes/year of corn and The subsidiary company
300,000 tonnes/year of of KYN Capital Group an-
biomass. nounced its construction
The plant would create decision on 9 January.
2,000 jobs and be ready for Algae World produces
commissioning within algae for food, fuel and phar-
24-30 months. maceuticals using its patented
feeding system.

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 www.dsengineers.com
PLANT & TECHNOLOGY
Coshocton Grain to build
soyabean processing plant
Ohio grain company Coshocton deliveries,” Crown said. “The
Grain has begun construction beauty of the facility is that
on a new soyabean processing you have a soyabean processor
plant at its site in Coshocton, and corn processor in the same
reported World Grain on 11 county. I don’t know that there
February. is another county in Ohio that
The company’s CEO, Rhoda would have both like that.”
Crown, told the Coshocton Crown said the company
Tribune that the firm was expected to use a third of
looking to process an average the available soyabeans
of 3.36M bushels/year of in Coshocton and seven
soyabeans to produce 81,000 surrounding counties, while
tonnes of soyabean meal and the soya meal it produced was
12,600 tonnes of soyabean oil. expected to be used by dairy,
“We were looking to take the swine and poultry farmers
company in a new direction and within a 120km radius.
have more emphasis on the The facility is expected to be
bean deliveries versus the corn operational by July.

Aemetis to upgrade Indian Serving the

biodiesel and glycerine plant Vegetable Oil Industry

From Basic Engineering

Source: Aemetis

to
Full Turnkey Project

US biofuels and renewable chemicals company Aemetis

announced on 10 January that it had completed a two-year Single Point Responsibility through
upgrade of its Kakinada, India biodiesel and glycerine plant EPC or EPCM+® with guaranteed:
(pictured above).
The plant now had the annual capacity to produce 165,000
tonnes of biodiesel and 18,000 tonnes of glycerine, with the aver- ✔ Process Performances
age price of biodiesel sold in 2018 standing at US$900/tonne, and
US$1,000/tonne for glycerine, Aemetis said. ✔ Time Schedule
“The upgrade includes a pre-treatment unit to process low-
er-cost and waste feedstock into oil, and expansion of boiler and
other utility capacities to enable full production of 50M gallons ✔ Budget
(189M litres) of biodiesel and bio-oil while simultaneously operat-
ing the biodiesel, pre-treatment and glycerine refining units.”
“The Aemetis team in India is executing a rapid increase in
production and revenues this year to meet growing domestic
market demand for biofuels,” said Eric McAfee, chairman and CEO
of Aemetis. “As the only US company producing biofuels in India,
Aemetis built and has now fully upgraded our India biodiesel and
refined glycerine plant to use low cost feedstocks.”
The company said the 2018 India National Policy on Biofuels
raised the target for domestic biodiesel consumption from cur-
rently less than 1% to 5% of the approximately 25bn gallons (94bn Engineers & Contractors
litres)/year of petroleum diesel consumed.
In mid-2018, the Goods and Services Tax on biodiesel was re-
duced from 18% to 12% to encourage the usage of biodiesel. Belgium
In addition, the Indian government recently issued a purchase
Phone: +32 (0)10 43 43 00
requisition for some 260M gallons (984M litres) of biodiesel for
info@dsengineers.com
2019 to be supplied by domestic biodiesel producers,
Aemetis said. u

www.ofimagazine.com OFI – MAY 2019 27

Reliability through Experience

MAY P&E.indd 3 25/04/2019 10:50:00

 PLANT & TECHNOLOGY
u
IN BRIEF PKN looks at co-treating vegetable
oils or used fats on industrial scale
NIGERIA: A planned
cassava-based ethanol
production facility that
would process 300-400 Polish refiner PKN ORLEN is launching an op- PKN will assess its experience with co-hydro-
tonnes/day of cassava in erational biofuels programme to prepare for the treating vegatable oils on an industrial scale and
Ondo state is expected to EU’s new renewable energy directive (REDII), a the transposing of REDII into national law, to
be commissioned soon, statement said on 18 December. decide whether or not it will build a standalone
Biofuels Digest wrote on PKN plans to use its existing refinery units in HVO unit by 2020.
19 March. Płock, Poland and Litvínov, Czech Republic to REDII gives more prominence to second-gen-
Local press reported that take co-hydrotreatment to an industrial scale by eration biofuels made from waste materials.
the project came about co-feeding vegetable oils or used fats with pe-
after the state governor’s troleum distillates into refinery units to produce
visit to China last year, diesel oil with hydrotreated vegetable oil (HVO).
where a memorandum of “We expect the role of renewable energy in
understanding was signed the transport sector to rise, and we consider
between the Ondu State REDII a key driver of the fuels market in the
government and the Linyi future. We are intent on preparing our business

Source: PKN ORLEN

Municipal Republic, Biofuels for these changes as best we can.” said Armen
Digest said. Artwich, member of the management board of
The Nigerian Tribune wrote PKN for corporate affairs.
that the plant could provide To go ahead with the programme, PKN must
employment opportunities adapt its refineries to receive the new com-
for youths in the state. ponent and to organise raw material supply
logistics.
SINGAPORE: Investment
holding firm USP group
announced on 20 Febru- Pertamina and Eni to develop green refinery
ary that it had agreed to
biodiesel manufacturing Indonesian state-owned energy company Italian oil company Eni SpA to develop a green
subsidiary, Biofuel Research PT Pertamina said in a statement on 31 refinery in Indonesia and to process a palm oil-
Pte Ltd, to investment firm January that it had signed an agreement with based fuel mixture in Italy, Reuters reports.
AJ Shanaya Venture Pte Ltd. The refinery in Indonesia would produce
AJ Shanaya was also in- fuel derived from crude palm oil (CPO).
terested in acquiring 100% The agreement would also allow Pertamina
of Biofuel Research for a to process CPO at Eni’ refinery in Italty to
consideration of produce hydrotreated vegetable oil (HVO),
US$4.4M, USP said. which can be used as a mixture in diesel fuel,
USP CEO Kan Bright Reuters wrote.
Pan said the group would The two companies were also in talks to
be exploring new markets potentially produce HVO in Indonesia. They
and opportunities, as well agreed to conduct studies into potentially
as investing in research to converting three Pertamina refineries to
increase its product range. produce palm-based biodiesel.
Additionally, the companies agreed to
Source: Pertamina

The statement said a

definite conditional sale and discuss collaboration in waste transformation
purchase agreement would processes and biomass development
be signed no later than processes.
30 March. Eni has been operating in Indonesia since
2001.

BASF to expand plant capacity for biodiesel catalyst

German chemicals firm BASF announced diesel, while also supporting higher yields BASF said its Guaratinguetá site was also
on 8 April that it was increasing production and low preparation costs. located close to Brazil’s leading biodiesel
capacity by 30% at its sodium methylate “Brazil is an important and significant producers and Santos port, providing it
plant in Guaratinguetá, Brazil. market for biodiesel and corresponding with a logistical advantage for exports to
The increased capacity from 60,000 catalysts,” the company said. the region.
tonnes to 80,000 tonnes was set to come “Customers’ demands and requirements “We will invest to join our customers
on stream in 2020. have been evolving to accomplish the en- in their fast growth and to support their
BASF said that sodium methylate was vironmental and economic strategy of the future requirements.” said Alejandro Heine,
a catalyst that provided a sustainable country, supporting the local agriculture vice president of BASF Industrial Chemi-
solution for the production and use of bio- and biofuels production.” cals South America.
28 OFI – MAY 2019 www.ofimagazine.com

MAY P&E.indd 4 25/04/2019 10:50:04

 COMMODITY TRADING

Biofuels drive demand growth

the number of middle class at 5bn (3bn in palm oil (CPO) for power.
The recent POC2019 2018). “By far the most important thing is
conference in Malaysia He said world food production had to biofuel demand at the moment”, Fry said,
increase 70% within the next 30 years to which would increase CPO demand by
focused heavily on rising ensure adequate food supplies by 2050. 1.5M tonnes this year.
Looking at the bigger picture, Bek-Niel- Fry forecast palm oil prices of
palm oil demand and son said that of all global agricultural land RM2,240/tonne (US$548) to RM2,360/
combating the negative (5bn ha), oil palm only took up 20M ha tonne (US$577) this year.
(0.4% of global agricultural area), while Thomas Mielke, executive director of Oil
image the industry faces accounting for 35% of total oils and fats World, added that global palm oil output
production and more than 55% of all net was expected to reach 75.26M tonnes for
Gabriel Day exported oils and fats today. 2019, a small increase from the 72.48M
“There are three figures I would like you tonnes produced in 2018. Mielke also
Sustainability, biofuel blending mandates to remember. Palm oil, today, occupies stated that biodiesel production in both
and combating the negative public 0.4% of the total area under agriculture, Indonesia and Malaysia was expected to
narrative on palm oil were the key issues it has accounted for less than 5% of the rise in 2019 to 7.5M tonnes in Indonesia
highlighted at the Palm and Lauric Oils total deforestation from 1995 to 2015 and 1.4M tonnes in Malaysia, thanks to
Price Outlook Conference and Exhibition and it could cater for just over 35% of the higher mandates in both countries.
(POC2019) in Malaysia from 4-6 March. world’s population calorific requirement. Mielke estimated that worldwide,
Malaysian Minister of Primary Industries So in terms of a food crop, palm oil is right 18.3M tonnes of palm oil would be used
Teresa Kok told the conference that the up there in terms of its importance.” for biodiesel production in 2019, an
government was fully committed to im- increase from 15.1M tonnes last year.
plementing strategies to keep the industry Outlook and mandates He also projected that global production
competitive, thriving and sustainable amid Regarding the outlook for palm oil this of biofuel for 2019 would reach 44.07M
all the issues and challenges. year, the industry expects to see a growth tonnes, the highest producers being the
“In light of these initiatives, the Ma- in demand, partly down to rising biofuel EU, Indonesia and the USA.
laysian Sustainable Palm Oil (MSPO) mandates. According to Mielke, palm oil was
certification compliance has been made Dr James Fry, chairman of LMC Interna- undervalued at the end of February and
mandatory from 1 January 2020.” tional, said that Malaysia had introduced prices were expected to rise.
its B10 biodiesel programme for its trans- Fry said that the palm oil market was
Feeding the population portation sector in December; Colombia, currently in a very odd situation with
Carl Bek-Nielson, vice chair and chief its B10 programme in March last year; regards to production cycles. “Up until 18
executive director of United Plantations Thailand, its B20 for heavy vehicles and months ago, it was perfectly normal for
Berhad, explained that by 2050, the Indonesia was looking at a potential B30 the Malaysian cycle and the Indonesian
global population would be 10bn, with later this year and direct burning of crude cycle to be the same. Suddenly they are u

www.ofimagazine.com OFI – MAY 2019 29

poc2019.indd 2 29/04/2019 11:35:24

 COMMODITY TRADING
ing by US$200/tonne for soyabean oil in
late 2018 since the end of 2017, along
with the price of biodiesel itself.
This had indirectly affected the export
price of palm oil. As the price of soyabean
oil fell by US$200/tonne since early 2016,
the price of gas oil increased US$500/
tonne in the same time. Fry stressed how
the lowering demand for biofuel created a
cap on the CPO FOB price, which fell to a
12 year low last year.

Source: Thomas Mielke, Oil World

In China however, Mielke expects a de-
cline in soyabean imports and crushing by
about 7M tonnes, regardless of a possible
trade deal with the USA. Mielke said the
declining trend was set by meal demand
and partly influenced by the rise in African
swine fever in China. The Chinese had
overfed soyabean demand over the last
Figure 1: Monthly prices of crude palm oil, fob Indonesia (US$/tonne) few years and was now correcting this,
meaning the trend was unlikely to change.
Global soyabean meal demand was poor
2019 * 2018 2017 2016 2015 and world soyabean crushings would, at
EU 13.50 13.30 13.55 12.68 12.37 best, stagnate, according to Mielke.
“If Chinese crushings are declining by
USA 7.43 7.19 6.15 6.21 4.72 more than 7M tonnes, they will require
Source: Thomas Mielke, Oil World more imports of palm oil, probably ap-
Argentina 2.20 2.50 2.87 2.66 1.81
proaching about 6M tonnes.” Mielke said.
Brazil 5.17 4.68 3.75 3.33 3.46 This was part of Chinese efforts to
broaden its sources of oils and fats to
Colombia 0.60 0.57 0.54 0.51 0.51
manage the impact of its ongoing trade
Singapore 1.20 1.12 1.05 0.99 0.87 war with the USA.
Indonesia 7.50 5.20 2.92 3.18 1.22 According to Mielke, China was
expected to import 950,000 tonnes of
Malaysia 1.40 1.14 0.72 0.51 0.67 soyabean oil and 5.8M tonnes of palm oil
Thailand 1.55 1.42 1.21 1.12 1.14 in 2018/19, a dramatic increase from the
World 44.07 40.43 35.83 34.11 29.60 previous year, to compensate for smaller
domestic production from reduced soy-
Table 1: World production of biodiesel (M tonnes)  * Forecast abean oil crushings.

u out of phase with one another; Thailand peting oilseeds had been increasing their Disruption in India
and Colombia have the same basic cycle yields over the past 15 years; sunflow- Being the world’s largest importer of
as Malaysia. The only one similar to Indo- erseed up 53%, rapeseed up 26% and palm oil, agribusiness specialist and
nesia is Papa New Guinea.” soyabeans up by 18%. Mielke predict- independent expert G Chandrashekhar
Regions towards the south of the equa- ed a slowdown in Malaysian palm oil put forward an interesting point of view
tor had seen the strongest recoveries from production growth, from 3M tonnes/ on India’s relationship with Malaysia.
the effects of the El Niño in 2018, driving year in 2005 to 2018, to 2M tonnes/ He said Malaysia should not be sur-
production growth in Indonesian and Papa year in 2018 to 2025, and finally to 1.7M prised if India went beyond raising custom
New Guinea. The more southern regions tonnes/year in 2025 to 2030. duties, and urged the market to expect
in 2018 saw a year-on-year output growth some disruptions due to the stress the
of 20%-25%, whereas output only rose Soyabeans face weak year Indian agricultural industry was current-
0%-5% in the more northern regions. But while palm could see a possible rise in ly under. India was currently facing low
However, he added: “This cycle is similar demand, soyabeans face a weak year. farm-gate prices and domestic farmers
to the big El Niño of 1997 and 2001 but Fry said he did not believe the current protesting over this.
has never went as low as in those years. administrator of the US Environmental He suggested that Malaysia form a two-
Technically we’ve had a weak El Nino but Protection Agency (EPA) was interested in way partnership with India rather than use
it doesn’t look as if it’s anything more.” the production of biofuels, demonstrated the country as merely a market for bulk
Overall, growth in the eight largest by giving “waivers” to many refiners, cut- palm oil exports.
producers of crude palm oil (CPO) was ting their biofuel use and slashing renew- “I would think Malaysia must go beyond
slowing down, Fry said. The eight coun- able identification number (RIN) value. servicing India as a supplier of bulk palm
tries were expected to produce about A RIN is a serial number assigned to a oil. There are several challenges that the
71M tonnes of CPO this year, a growth batch of biofuel to track its production, Indian government faces, and there are
rate of 2.8M tonnes, and a decline from use and trading, as required by the EPA’s ways to strike a partnership with India and
5M tonnes in 2018. Renewable Fuel Standard. Fry’s figures work with Indian policy makers.” ●
u However, Mielke showed that com- showed the market value of RINs decreas- Gabriel Day is the assistant editor of OFI

30 OFI – MAY 2019 www.ofimagazine.com



poc2019.indd 3 29/04/2019 11:35:26

 DIARY OF EVENTS
14-17 May 2019 12-15 June 2019 4-5 September 2019 29-30 October 2019
The 9 ICIS World Surfactants
th
30th Nordic Lipid Forum 6th High Oleic Oils Congress Organic & Non-GMO Forum
Conference Symposium Lisbon, Portugal Minneapolis, Minnesota, USA
Jersey City, USA Horsens, Denmark http://higholeicmarket.com/ www.ongforum.com
www.icisevents. https://lipidforum.info hoc-2019/
com/ehome/index. 28 October-1 November 2019
php?eventid=200178918 16-19 June 2019 5 September 2019 86th NRA Annual Convention
15th International Rapeseed Black Sea Oil Trade Park Hyatt Aviara Carlsbad,
21-22 May 2019 Congress Hilton, Kyiv, Ukraine California, USA
MCPD Esters and Glycidyl Berlin Congress Center http://bsg.ukragroconsult. www.nationalrenderers.org/
Esters – Symposium 2019 Germany com/bso/2019/en/ events/convention/
Berlin Germany www.irc2019-berlin.com conference
www.dgfett.de/meetings/ 9-10 November 2019
aktuell/berlin2019mcpd 17-19 June 2019 8-13 September 2019 2nd AOCS China Section
The 9th International FOSFA Basic Introductory Guangzhou, China
31 May 2019 Conference on Algal Biomass, Course www.aocs.org/network-
Odessa Shipping Dinner Biofuels and Bioproducts Egham, Surrey, UK and-connect/membership/
Odessa, Ukraine Embassy Suites, Boulder www.fosfa.org sections#china-section
http://grainandmaritime.com/ Colorado, USA
about-osd.html www.elsevier.com/events/ 25-27 September 2019 19-21 November 2019
conferences/international- Globoil India International Palm Oil
3-5 June 2019 conference-on-algal-biomass- Mumbai, India Congress & Exhibition 2019
CESIO 11th World Surfactant biofuels-and-bioproducts www.teflas.com Kuala Lumpur Convention
Congress Centre, Malaysia
Munich, Germany 23-28 June 2019 5-11 October 2019 http://pipoc.mpob.gov.my
www.cesio-congress.eu FOSFA Advanced Course 18th AOCS Latin American
Egham, Surrey, UK Congress and Exhibition on 22-23 Novemeber 2019
5-6 June 2019 www.fosfa.org Fats, Oils and Lipids PORAM Annual Events 2019
Oleofuels 2019 Foz do Iguacu, Brazil (Forum, Golf & Dinner)
Venice, Italy 7-10 July 2019 www.meetings@aocs.org Malaysia
www.wplgroup.com/aci/ 9th European Symposium on http://poram.org.my/p/
event/oleofuels Plant Lipids 8-9 October 2019
World Trade Centre The Annual Association of 9-12 February 2020
10-12 June 2019 Marseille, France Bulk Terminal Operators World Congress on Oils & Fats
2019 International Fuel www.dgfett.de/meetings/ (ABTO) Conference 2020/ISF Lectureship Series
Ethanol Workshop & Expo aktuell/marseille2019 Amsterdam, Netherlands International Convention
Indianapolis, USA www.bulkterminals.org/ Centre, Sydney, Australia
www.fuelethanolworkshop. 17-19 July 2019 events.html http://wcofsydney2020.com
com Oleochem Outlook
Dalian, China 20-23 October 2019 8-10 March 2020
11-12 June 2019 https://ienmore.com/ 17th Euro Fed Lipid Congress 10th International Symposium
IGC Grains Conference 2019 webedit/?activityId=871 Barceló Sevilla Renacimiento on Deep-Frying
London, UK Hotel, Seville, Spain Hagen, Germany
https://www.igc.int/en/ 11-13 August 2019 http://www.eurofedlipid.org/ www.dgfett.de/index.php
conference/registration/ Deep Vegetable Oil Frying pages/sevilla.html
regform.aspx Course 26-29 April 2020
Texas A&M University, USA 27-31 October 2019 2020 AOCS Annual Meeting
11-13 June 2019 https://perdc.tamu.edu/ Vegetable Oil Processing Montreal, Canada
2019 Advanced Biofuels event/vegetable-oil-frying/ (Refining) and Products of www.annualmeeting.aocs.org
Conference Vegetable Oil/Biodiesel
Omaha, USA 3 September 2019 Texas A&M University, USA 20-23 September 2020
www.advancedbiofuels Operational & Commercial www. https://perdc.tamu. 18th Euro Fed Lipid Congress
conference.com Aspects of Palm Oil Trade edu/event/vegtetable-oil- and Expo
Malaysia processing-and-products-of- Leipzig, Germany
12-15 June 2019 Email: poram@poram.org.my vegetable-oil-biodiesel/ www.eurofedlipid.org
EFPRA Congress 2019
La Baule, France For a full events list, visit: www.ofimagazine.com
www.efpralabaule2019.com

www.ofimagazine.com OFI – MAY 2019 31



Diary.indd 1 25/04/2019 10:52:21

 STATISTICS

STATISTICAL NEWS FROM MINTEC

Sunflowerseed and rapeseed
Sunflowerseed prices from Russia and Ukraine have fallen
year-on-year (y-o-y), 13% and 1% respectively, following
high production expectations for the 2018/19 season.
Russia and Ukraine have been increasing their
harvested area over the last few years, up 23% and 17%
respectively when compared to the 10-year average.
Weather conditions for sowings have been ideal,
adding to an expected increase in sunflowerseed
production for the 2019/20 season.
Both Russia and Ukraine have seen an early start to
warm spring weather, resulting in sowing commencing
Rapeseed and sunflower oil prices (€/tonne)
several weeks ahead of the usual mid-April start.
The EU oilseed market is relatively stable with
production forecast to rise 2% y-o-y for 2018/19, along
with consumption, and EU supply into the market is
expected to be adequate.
However, rapeseed prices are currently at a premium
to sunflowerseed prices in Europe following the
damage to rapeseed production from 2018 heatwaves.
Sunflowerseed production was not as affected, keeping
prices competitive. Consequently, there could be a shift
in demand.
Overall, global sunflowerseed production is expected
9% up y-o-y, with global ending stocks forecast up 27%
y-o-y for 2018/19.

Butter
Global sunflower oil production (M tonnes) EU March butter prices are down 6% month-on-month
(m-o-m) and are 17% below price levels in March 2018.
Butter 82% fat exp fob W Eur The main reasons behind falling prices are lacklustre
demand and seasonally increasing butter production.
Buyers tend to wait for the spring flush to resume buying
activity while, at the same time, current stock levels are
filled for the short-term. EU prices are trending below
Oceania and US levels, but this has still not triggered an
increase in demand, frustrating manufacturers.
The seasonal uplift in demand begins in the spring and
production is seasonally increasing as milk flows coming
off farms improve.
Export interest is also currently low, but this should
increase in coming weeks as EU prices are at a discount
on the global market.

Butter prices (€/tonne)

Prices of selected oils (US$/tonne) Mintec works in partnership with sales, purchasing
and supply chain professionals to deliver valuable insight
2017 Nov 18 Dec 18 Jan 19 Feb 19 Mar 19
into worldwide commodity and raw materials markets
Soyabean 829.0 719.5 711.7 718.3 737.9 715.7
using innovative technology and a knowledgeable team
Crude palm 690.0 522.8 526.6 585.5 588.4 557.9 of specialists. We provide
Palm olein 661.0 555.5 533.5 576.4 581.5 549.3 independent insight and trusted
Coconut 1,537.0 780.6 824.1 814.5 747.8 721.7 data to help the world's most
prestigious brands to make
Rapeseed 855.0 827.2 815.4 826.0 811.7 789.9
informed commercial decisions.
Sunflower 800.0 670.8 679.5 694.2 707.6 699.5
Palm kernel 1,250.0 718.2 752.9 799.6 740.8 685.6 Tel: +44 (0)1628 851313
Average 946.0 685.0 692.0 716.0 702.0 674.0 Email: sales@mintecglobal.com
Index 224.0 162.0 164.0 170.0 166.0 160.0 Web: www.mintecglobal.com

32 OFI – MAY 2019 www.ofimagazine.com

stats may.indd 1 25/04/2019 09:51:47

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