Food Business News - July 19, 2011 - (Page 18)

Global industrial processing of grains in slower growth International Grains Council forecasts usage up 2% in 2011-12 LONDON — A marked slowing of growth in global industrial use of grains is in prospect for 2011-12, according to the International Grains Council. The Council estimated world industrial use in the crop year that has just begun as 2% above the prior crop year, in contrast with the gain of 6% in the prior year and 13% in 2009-10 over 2008-09. The further deceleration from the rapid pace of prior years “mainly reflects slowing expansion in the ethanol sector, especially in the United States,” the Council indicated. The I.G.C. forecast industrial use of all grains in 2011-12 at 303.4 million tonnes, compared with 297.3 million in the previous year and 279.8 million in 2009-10. Industrial use at the indicated level would represent 17% of expected 1,820.9 million tonnes of all grain to be used in 2011-12. Besides industrial use, expected disappearance includes 628.8 million tonnes for food and 763.9 million for feed. Use of grains to make biofuels, which has been the primary force accounting for industrial use expansion, was forecast to rise 1.3% in 2011-12, to 149.7 million tonnes, against 134.3 million in 2009-10 and 110.4 million in 2008-09. Global use of grains for making ethanol in 2011-12 was projected at 163.6 million tonnes. “Having grown by an annual average of 24% in the past five years, use for biofuels was forecast to rise by only 2% in 201112,” the I.G.C. said. “In order to meet government-mandated levels of ethanol use, the industry in the U.S. expanded rapidly during the past decade, but, with annual targets already exceeded, expansion is slowing. The industry is still on course to surpass the 2011 ethanol blending requirement of 12.6 billion gallons, but high maize prices have negatively affected biofuels production levels recently and the expiration of ethanol tax credits and import tariffs at the end of the year, if not renewed, may impact some less efficient plants in 2012.” Of the 149.7 million tonnes of grain that are projected to be used in 2011-12 to make biofuels, the United States will account for 129 million, or 86%. The U.S. usage would be essentially unchanged from 128.8 million tonnes in 2010-11. The latter was up 11% from 117.6 million in 2009-10, and the latter was an increase of 23% from 96.1 million in 2008-09. The European Union was a distant second that relates to 2 billion liters. That is in line with Canada’s existing capacity to make ethanol. Further, a 2% renewable content in diesel and heating oil is due to be implemented. Canada’s use of grains for biofuels in 2011-12 was forecast at 2.7 million tonnes, against 2.6 million in the previous crop year. China’s use of grains to make ethanol in the new season was projected at 6.1 million tonnes, compared with 5.7 million in 2010-11 and 5.5 million in 200910. According to the I.G.C., the government of China continued to limit grain-based ethanol production to five plants processing wheat and maize. China intends that future growth in renewable fuels production be based on non-food feedstock, including cassava. At present, 10 provinces have a 10% ethanol mandate, and due to limited production, that is not likely to be extended to other parts of Having grown by an annual average of 24% in the past five years, use for biofuels was forecast to rise by only 2% in 2011-12. in processing grains into biofuels. It was forecast to use 10.1 million tonnes in 201112, compared with 8.3 million in the prior year and 7.4 million in 2009-10. The I.G.C. pointed out that few of the E.U. member states achieved the targeted 5.75% share of renewable fuel (ethanol and biodiesel) in the transport sector in 2010. The Council said the alternative fuel industry is being affected by rising input costs and competition from lowerprice imports with some plants running at reduced capacity or idled. “Nevertheless, expansion is expected to accelerate in the years ahead in order to meet the legally binding target of a 10% share of transport fuels by 2020,” the I.G.C. said. In Canada, where the government requires 5% bioethanol content in gasoline, the country, the Council stated. Of the 149.7 million tonnes of grains that are forecast to be processed into biofuels in 2011-12, the I.G.C. estimated that maize, or corn, will account for 138.2 million, or 92%. The U.S. alone will account for 127 million tonnes of the maize used to make ethanol. Global use of maize projected for 2011-12 was about the same as 137.6 million in 2010-11. Global use of wheat to make ethanol was estimated at 7.4 million tonnes, against 6 million in the prior season; sorghum, 2.4 million, unchanged; barley, 1 million, against 600,000, and other crops, 700,000, against 600,000 in 2010-11. The E.U., at 5.4 million, Canada, at 2.1 million, and China, at 1 million, account for wheat use in fuel production. FBN 18 FOODBUSINESS NEWS ® July 19, 2011

Table of Contents for the Digital Edition of Food Business News - July 19, 2011

Food Business News - July 19, 2011
U.S. rice production situation changes dramatically
Marketing standards for children’s products proposed
Campbell to invest less in sodium reduction
Editorial - Data transparency hugely important for markets
Dannon to invest $88 million in Ohio yogurt plant
Pfi zer may sell Nutrition business
Nestle Health Science acquires stake in Vital Foods
Hispanic consumers seek authentic menu options
Kraft names Timothy Cofer to European leadership
Gary Lane named c.e.o. of Ottens Flavors
Nestle to buy 60% interest in Chinese confectioner
Sun Capital acquires Contessa Premium Foods
Reser’s Fine Foods to acquire Vaughan Foods
Campbell to invest less in sodium reduction
Hamburger consumption on the rise
Dunkin’ looks to raise $461 million through i.p.o.
Buckhead Beef to build new facility
Global industrial processing of grains in slower growth
Higher adult obesity rates recorded in 16 states
More than 2,000 organizations in support of MyPlate
U.S. rice production situation changes dramatically
Washington - Agreement ends cross-border trucking dispute
Sodium Reduction - Conflicting views on sodium and mortality
Potassium chloride comes with taste issues
Children’s Nutrition - Questions arise about children and food allergies
DAIRY BUSINESS NEWS - Dairy ingredient innovations
DAIRY BUSINESS NEWS - Fonterra names chief executive officer
Dairy Business News - New OptiSol ingredient works with frozen yogurt
Dairy Business News - New Danisco system targets artisan ice cream
Dairy Business News - Regional ice cream maker ceases production
Dairy Business News - Dairy organizations team to form consortium
Dairy Business News - Harris sees consumers continue to focus on value, spending cuts
Dairy Business News - General Mills completes Yoplait acquisition
Dairy Business News - Shadow Beverages acquires Whey-Up brand
Dairy Business News - Dean Foods settles lawsuit for $140 million
Dairy Business News - Sargento Foods expands R.&D. staffi ng
New Product Trends - Beyond meat protein
New Food Products - Zatarain’s introduces frozen meals
New Food Products - Bear Naked launches Nut Cluster Crunch cereal
New Food Products - Kraft adds caulifl ower to new mac and cheese item
New Food Products - AdvancePierre Foods adds Graham Snackers
New Food Products - WhiteWave foods expands product line
New Food Products - Mott’s enters vegetable juice category
New Food Products - Orgain introduces shakes for children
New Food Products - Field Roast launches vegetarian frankfurter
INGREDIENT MARKET TRENDS - Spring wheat crop forecast 11% lower than 2010
Ingredient Markets
Supplier Innovations and News - Caravan launches base for single-serve items
Supplier Innovations and News - B vitamin supplier changes name to Prinova
Supplier Innovations and News -Testing method screens for Salmonella
Supplier Innovations and News - Cargill commits to 2015 sustainable palm oil goal
Supplier Innovations and News - European Commission approves stevia’s use in some foods
Supplier Innovations and News - Kemin hires technical sales manager
Supplier Innovations and News - Bell expands by buying facility
Ad Index
Food Business in the News

Food Business News - July 19, 2011