Starch Pros

October 28^th 2020

Tate & Lyle to acquire tapioca business in Thailand.

Agreement to purchase 85% shareholding in Chaodee Modified Starch in support of strategy to grow texturant portfolio.

Tate & Lyle PLC (“Tate & Lyle”), a leading global provider of food and beverage ingredients and solutions, announces that it has signed an agreement to acquire an 85% shareholding in Chaodee Modified Starch Co., Ltd. (“CMS”), a well-established tapioca modified food starch manufacturer located in Thailand.

This investment extends Tate & Lyle’s presence in speciality tapioca-based texturants and establishes a dedicated production facility in the main tapioca region of eastern Thailand.  The acquisition will enable Tate & Lyle to offer a broader range of tapioca-based solutions to meet customers’ needs for better tasting and clean label foods in categories including dairy, bakery, snacks, noodles and soup, sauces and dressings.

Tate & Lyle will operate CMS in partnership with the former owner.  Together with its partner, Tate & Lyle intends to invest in the facility over the next three years to increase significantly capacity for higher functionality starches.  The CMS facility will be supplied with substrate by a co-located tapioca starch mill fully owned and operated by Tate & Lyle’s partner.

Nick Hampton, Chief Executive of Tate & Lyle, said: “We are delighted to announce this investment to expand our tapioca offering and grow our texturant portfolio.  CMS brings new tapioca capabilities, raw material sourcing expertise and additional production capacity to Tate & Lyle, and expands our presence in the higher growth Asia Pacific region.”

Closing of the transaction will occur when customary approvals have been received.

Notes to Editor:

1. Thailand is at the centre of tapioca production, with over 90% of tapioca starch output globally. Source: LMC, Commoditia, T&L

2. Tapioca is the most popular and fastest growing texturant source in the Asian diet, and the fastest growing starch in new product formulations. Source: Mintel GNPD 2015-2019 CAGR

3. Tapioca has highly desirable functional properties such as a translucent colour, clean taste, and a soft gel-like texture.

Source: https://www.tateandlyle.com/news/tate-lyle-acquire-tapioca-business-thailand

October 19^th 2020

CMT’s 1st series of Starch Europe webinar will keep the industry connected to latest news and highlight the dynamic changes of the starch sector.

Managing Covid impacts, disrupted supply chain & uncertain grain production in EU & Black Sea region.

The EU Farm to Fork Strategy, published on 20 May 2020, is at the heart of the EU Green Deal structure and this strategy closely involves the starch industry.

The strategy aims to create a more robust and sustainable food system.

Currently the starch sector is already an important contributor to an EU sustainable food system through its leadership in the EU bioeconomy across food, feed and industrial application.

How can the EU starch stakeholders further play a role for the new F2F strategy’s successful implementation?

Is the market recovering after a year of Covid 19? How much disruption to supply chains has this caused ? Has COVID taken the attention away from other more pressing issues (crop and animal disease etc) and EU/UK trade negotiations?

One of the ambitious targets proposed by the F2F strategy is for the reduction of chemical pesticide and fertiliser use and increased organic farming to 25% of EU’s agricultural land. However many farmers view this as unrealistic as the policy calls for dramatically increasing food production while scaling up organic farming and slashing synthetic pesticide use, all without any clear plan as to how to address agricultural pests and productivity challenges.

EU grain exports in 2020-21 are predicted to decline according to USDA to 25 million tonnes from 28.8 million tonnes, a drop of 13% year-on-year.

Partially owing to extremely challenging planting conditions ,the big unknown for 2020-21 remains the impact of COVID-19 on the grain balances.

CMT’s 1st series of Starch Europe webinar will keep the industry connected to latest news and highlight the dynamic changes of the starch sector.

Supported by Starch Europe, Jamie Fortescue, Managing Director for the Association will represent the starch stakeholders to share the industry’s important role in the EU Green Deal and Bioeconomy strategy.

Webinar sponsor Suez Water Technologies & Solutions – will share solutions to improve water consumption and energy efficiencies in starch processing

Simon Bentley will give an update on the market with current ongoing Covid 19 – what has shifted within this year and was does it mean for the starch market trajectory.

Rabobank will give an outlook on the grains and oilseeds industry outlook in Europe and the Black Sea region.

Source: https://www.cmtevents.com/aboutevent.aspx?ev=WEB201138&

September 22^nd 2020

R5.35bn starch sale a relief for Tongaat Hulett.

The R5.35 billion sale of Tongaat Hulett’s starch business to Barloworld got the green light after an independent third party, Rothschild & Co, found that no material adverse change (MAC) had occurred due to the Covid-19 pandemic.

The two companies had reached a deadlock on the agreement for the sale of its starch business to Barloworld in May following the Covid-19 outbreak in the country in March.

Barloworld had said it was reasonably likely that the earnings before interest, tax, depreciation and amortisation (Ebitda) of the starch business for the financial year to end March 2021 would be 82.5 percent or less than the Ebitda of the starch business for the financial year to end March 2020 and that an MAC had, therefore, occurred.

Tongaat chief executive Gavin Hudson said yesterday that the group was pleased that the decision by the independent expert had confirmed Tongaat’s belief that a MAC event had not occurred and that the transaction would now go ahead.

“Throughout this process we have continued to work to close out work streams to meet our other obligations under the agreement reached with Barloworld in February this year, so that we can conclude the sale and move forward. It is expected that we will be able to finalise this process by the end of October with the starch business transferring to Barloworld from November 1,” Hudson said.

Hudson backed the asset and said the starch unit was a great business and Barloworld was fortunate to be buying such a valuable asset.

“However, the rationale for the sale remains unchanged – it will help us to continue meeting our debt reduction targets. Tongaat is a high-potential business with a significant asset base, and this decision will ensure that our focus remains on bedding down the turnaround of our organisation,” he said.

Tongaat has been disposing some of its assets in an effort to reduce its huge debt. In June the group also announced the sale of Tambankulu Estates to eSwatini’s Public Service Pensions Fund for R375 million in a share purchase agreement, with the proceeds earmarked to reduce its R13bn debt.

Tongaat’s target is to reduce its debt levels by R8.1bn by March 2021.

Barloworld said it was pleased that the starch business had shown resilience in the face of the economic challenges posed by the Covid-19 pandemic.

“The business is a highly cash generative, relatively asset light and defensive investment with a leading market position and a strong client base of highly regarded and well established multinational companies. These characteristics have underpinned the resilience of the starch business through the current economic challenges, validating Barloworld’s stated strategy of entering into the defensive consumer foods sector and serving industrial customers as a long term strategic pivot of its portfolio,” Barloworld said.

Barloworld also said it believed that the starch business would continue to show positive momentum into the financial year-end after the government moved the country to level 1 of the lockdown on Monday.

Source: https://www.news24.com/fin24/companies/agribusiness/sugar-producer-tongaats-shares-soar-after-impasse-on-sale-of-starch-business-ends-20200922

September 08^th 2020

“Project WaltrAut” — Construction of new roller drying plant is on schedule.

In the past few months, a lot has happened at the Emsland Group’s headquarters in Emlichheim. The construction of the new roller drying plant with autoclave (nicknamed “WaltrAut” for the German Walzentrocknungsanlage mit Autoklav) is progressing rapidly. In addition to necessary excavation and drainage work and the demolition of warehouses, recent weeks have seen the pile foundations successfully set in place.

Because of the peaty subsoil, 150 piles had to be driven up to 20 meters into the ground for WaltrAut’s foundation. On top of that, transformer stations were also installed. The base plate of the plant has been laid and the first walls have been built. Despite the coronavirus epidemic and delivery delays from various suppliers, intensive rescheduling made it possible for the building to be completed shortly after the turn of the year.

Furthermore, the construction of the plant on the company premises has also brought plenty of other tasks with it. Hundreds of tons of steel have to be installed in pipe bridges, which WaltrAut will integrate into the production processes. As part of this huge investment project, large parts of the infrastructure are being overhauled and substantial preparatory work is already being carried out for other major projects to come. “The expertise involved in building this department is being provided by the Emsland Group’s own employees,” explains Florian Schmidt-Hickmann, Process Engineering Project Manager at the Emsland Group.

With all that’s happening, the “skyline” in Emlichheim is growing. The building has a total floor area of about 750 m² and reaches a height of over 31 meters. The integrated stair tower made of reinforced concrete reaches a height of almost 34 meters.
WaltrAut, an investment of over 33.9 million euros, is a new drying plant in which potato and pea starch is physically and chemically modified and dried in pressure reactors to meet the highest demands in technical applications. The extensive product range produced here is used in the surfactant and textile industry as well as in many construction and adhesive industry sectors.

After completion, the most modern equipment and machines will be installed in the new building and assembled into a complete plant. Commissioning is planned for summer 2021.

Source: https://www.emsland-group.de/news/2020

September 07^th 2020

Emsland Group offers new waxy potato starch solution.

EMWAXY® is based on high amylopectin potatoes, containing more than 99% amylopectin, resulting in high quality end products. This natural potato variety is being cultivated through traditional, non-GMO breeding techniques. EMWAXY® is a new commercial available amylopectin potato starch giving improved performance to final products at our customers.

Being specialized in the production, application and supply of vegetable ingredients, the Emsland Group is able to promote constant growth and demand for healthy and genuine ingredients. In close cooperation with their partners, the Emsland Group has now developed high amylopectin potatoes EMWAXY® product range.

By means of contract farming, the Emwaxy potatoes are exclusively grown for the Emsland Group. Therefor the potato meets all the quality requirements of the company. Within the Emsland Group, all products manufactured at all sites are plant based, non GMO, Kosher and Halal.
The EMWAXY® range fits seamlessly with the current product portfolio of the Emsland Group.

The cultivation of this new potato variety is a clear sign that raw material manufacturers still have the ability to truly innovate in the market place. With the introduction of EMWAXY® potato starch, the Emsland Group presents a waxy potato starch, which has an amylopectin content of more than 99%.

Heidrun Lambers, Head of Food Application Technology at the Emsland Group explains “EMWAXY® can provide high transparency, new textures, high viscosity, physical shelf life extension as well as smooth and glossy appealing products”.

In food applications the use of EMWAXY® has next features:
• High viscosity
• Clarity, smooth and glossy appearance
• Clean flavour and bland taste
• Excellent creamy mouthfeel
• New textures, resulting high expanded crispy snack products
• Optimized process possibilities. Lower gelatinization temperature, fast hydration, quicker cooking times and lower energy input in comparison with other starches can be the result.

EMWAXY® is high valuable with a lot of benefits in food applications and offers a good start to create new innovative appealing products. These unique material characteristics of EMWAXY® serves todays trends e.g. easy handling, natural, lower dosage possibilities, non-GMO, kosher & halal, gluten and allergen free as well as clean label opportunities.

Source: https://www.emsland-group.de/news/2020

September 01^st 2020

German personal care major has developed a hair styling blend with saccharose and starch replacing synthetic polymers.

Writing in its international patent, Henkel said it had developed the natural blend using saccharose, hydroxypropyl methylcellulose and carboxymethyl starch. It said the blend could be used to manufacture hair styling gels, foams, mousse, waxes, lotions or clays.

Hair styling gels traditionally contained synthetic polymers – cationic, anionic, nonionic and amphoteric – and/or waxes; the former of which Henkel said were conventionally sourced from fossil substances like crude oil. It therefore remained desirable to design products made from “renewable raw materials with the least possible use of energy”, the personal care major wrote in the patent filing.

“A quantity reduction or even an exchange of said fully synthetic polymers can, however, only be carried out if the substitute polymers produce the properties desired for the intended use and give the keratin-containing fibres a sufficient, stable hold.”

Henkel said its natural blend – made up of 1-5 wt% saccharose, 3-7 wt% hydroxypropyl methylcellulose and 0-3 wt% carboxymethyl starch, with a water content of 60-90 wt% – showed a strong performance, with key hair styling qualities maintained.

“Surprisingly, it has been found that, contrary to expectation, no negative aspects such as plaque formation have been found (…) Other commonly required properties of cosmetic agents for the temporary shaping of keratin fibres, such as long-term hold and low tackiness, remained.”

“…The agents according to the invention have outstanding styling properties that are in no way inferior to or even exceed conventional agents based on fully synthetic polymers,” Henkel wrote.

Positive effects on the hairstyle hold and good application could be achieved if the saccharose (sucrose), hydroxypropylmethyl cellulose and carboxymethyl starch content were kept “within narrower quantity ranges”, it said.

Henkel said it would also be important to incorporate a vegetable oil like wheat germ, jojoba or coconut oil to “give the hair a silky sheen and make the hair more resilient”. The oil component had to be included at 0.05-1 wt%. Vitamins, perfumes and preservatives could also be added.

In addition to the ingredients outlined above, Henkel said it was also possible to work with chemically modified biopolymers for setting agents. Chitosan, for example – a biopolymer obtained from shrimp shell – could be incorporated into the blend as a useful “cheap raw material” that was “available in large quantities”.

“…As already mentioned, the provision of agents based on renewable raw materials is an advantage of the present invention. It is therefore preferred to incorporate only those ingredients into the agents according to the invention which meet these criteria. If necessary, the use of synthetic preservatives may be indicated for legal reasons,” Henkel said.

WIPO Internatinoal Patent No. WO/2020/164769
Published on: August 20, 2020. Filed on: November 11, 2019.
Title: “Natural hair styling gel”
Inventor: Henkel – N. Koomann

Source: https://www.cosmeticsdesign-europe.com/Article/2020/09/01/Henkel-patents-natural-hair-styling-formulation-with-saccharose-and-starch

July 15^th 2020

Ingredion launches range of PURITY Bio Organic native starches.

Ingredion Incorporated, a leading global provider of ingredient solutions to diversified industries, today launched three new organic native starches for the U.S. and Canada, PURITY Bio 201 organic native corn starch, PURITY Bio 301 organic native tapioca starch and PURITY Bio 805 organic native waxy rice starch.

The PURITY Bio range of organic native starches offers food manufacturers a compelling value proposition for converting to a more attractive “organic” corn, rice or tapioca starch label, enabling associated claims. The high-performing, certified organic starches can help manufacturers replace undesirable ingredients in existing products and develop new products with shorter lists of more familiar names to enhance product appeal and cost savings potential.

In food systems, PURITY Bio organic native starches impart a bland flavor and can be dropped into the same food processes where it’s conventional (non-organic) native starch counterparts are used, without any change in functionality or formulation. The new organic native starches are ideal for a wide variety of organic food applications, including yogurt (dairy and plant-based alternative dairy), soups, sauces, dressings, frozen and refrigerated ready-meals, meats, batters and breadings, bakery and confectionery (gummies).

“The launch of PURITY Bio organic native starches builds on Ingredion’s two decades of experience in clean label leadership,” said Jim Low, Ingredion’s vice president and general manager, Systems and Ingredients Solutions. “Our continued investment in an organic supply chain provides food manufacturers with an extensive range of certified organic ingredients to help them attract today’s mindful consumers.”

PURITY Bio 201 organic native corn starch and PURITY Bio 301 organic native tapioca starch exhibit a smooth, short texture when hot, set to an opaque gel when cooled (7% concentration) and form a strong gel after cooled in a cooked dispersion. PURITY Bio 805 organic native waxy rice starch offers superior freeze/thaw stability, high viscosity, excellent water-holding capability, strong adhesion and binding properties, and is characterized by a white color and bland flavor. The three starches can be labeled simply as “organic corn starch,” “organic tapioca starch” and “organic rice starch” respectively.

“PURITY Bio organic native starches, made from corn, tapioca and waxy rice, deliver functionality in organic food processes in place of traditional native starches — no special preparation or equipment needed,” said Patrick O’Brien, Ingredion’s regional platform leader for Clean & Simple Ingredients in the U.S. and Canada. “The launch of this product line, with its unique inherent base characteristics, means that food manufacturers now have access to a broader range of high-performing certified organic solutions for developing on-trend products that deliver the taste, texture and performance that consumers demand.”

Source: https://www.ingredion.us/MeetIngredion/News/Ingredion-Broadens-Organic-Ingredient-Solutions-Lineup.html

July 09^th 2020

50% Capacity expansion of production facility in Belgium by 2022.

BENEO, one of the leading manufacturers of functional ingredients, has announced a 50 percent production capacity increase at its Wijgmaal facility to respond to rising customer demand for its rice starches. A two-stage expansion process valued at $56 million, will lead to increased capacity by March 2022.

BENEO forecasts that the growing demand for natural and clean label products, in applications such as coated confectionery, will intensify in major existing markets, including the Americas and Europe. Rice is widely considered a familiar and recognizable product, with 61% of consumers worldwide regarding rice starch as naturali, making it the ideal ingredient for the development of products that respond to the increasing trend for clean and clearer labels.

Roland Vanhoegaerden, Operations Managing Director Speciality Rice Ingredients at BENEO notes that the nature of the ingredients business is one of long-term thinking and economic resilience. “We fundamentally believe in the value of this investment with demand for rice starch coming from both natural and organic growth, as well as from new projects and applications. One of the key reasons for our confidence is the ‘clean label’ trend, where food manufacturers are moving away from artificial additives and replacing them with natural alternatives, such as rice starch.”

Rice starch is capable of filling up all of the micropores on the surface of coatings due to its very fine particle size. This so-called “smoothing effect” is especially beneficial for confectionery manufacturers during the production process, since it ensures a stable result where edges do not crack or splinter. Additionally, rice starch allows for the preservation of a brilliant white color for months.

Since January 1, 2020, titanium dioxide, which is used to fill microscopic irregularities in coatings, is no longer permitted for use in food products in France. There are expectations that other EU markets may follow the country in banning the additive. “We are already seeing some major companies looking at rice starch and we will soon have a much larger capacity in place to address this rising demand,” Vanhoegaerden explains.

Technical trials by the BENEO-Technology Center have shown that clean label rice starch can also play an important role in a variety of other applications including baked goods and products that need to undergo severe processing conditions, such as sauces and dressings, as well as pet food.

The Wijgmaal plant has a proud 160-year history in the area and BENEO has been significantly investing in the facility in recent years to make it a frontrunner in sustainability. A recent investment into its docking station means that the company can now accept two barges at its plant, rather than one. As a result, two-thirds of rice raw material is now received by barge and just one-third by truck. “The impact is on cost saving, but also on the environment, due to lower carbon emissions and a reduction in traffic. Our factory is in the middle of an urban area and by increasing barge use we can reduce congestion and noise levels in the neighbourhood,” Vanhoegaerden explains.

Rice starch production consists of several phases: rice cleaning, soaking, milling, sieving, separation, dewatering, and finally drying. BENEO’s investment at the Wijgmaal facilities will increase the number of production lines from two to three. The first phase of the BENEO investment will take place at the tail-end of the production process for existing lines. The installation of a third drier and dewatering line allows the company to reduce bottlenecks and further increase efficiency. The second expansion phase will involve the front-end of the production process, starting from soaking through to the separation of the starch from the proteins in the valorization step.

The facility, which currently employs 180 people, will add up to 20 full-time positions during the course of the expansion, as well as offer further work to maintenance and engineering contractors in the vicinity.

BENEO’s Wijgmaal plant, formerly known as Remy Industries, is a true hidden champion in the Flanders region. The factory is the source for more than half of the world’s rice starch, despite the rice crop being primarily imported from South East Asia. The plant was founded by Edouard Remy in 1856 and remained in family hands until the early 20th century. In the early 1990s, a German investor (Rutgers) installed a completely new starch line in a modernization move that reduced operational costs at Wijgmaal. The Remy plant was indirectly acquired by German-headquartered Südzucker in 2001, through their Raffinerie Tienen operations. It became part of the newly formed BENEO Group, when Südzucker founded a new three-pronged ingredients business unit in 2007, together with the legacy Orafti (Oreye, Belgium) and Palatinit (Mannheim, Germany) businesses.

Source: http://www.beneonews.com/Press_Releases/2020/Capacity_increase_Wijgmaal_plant/

July 08^th 2020

Tongaat, Barloworld appoint third party to check for material adverse change.

JSE (Johannesburg Stock Exchange)-listed companies Tongaat Hulett and Barloworld have appointed Rothschild and Co South Africa as the independent third party to evaluate whether a material adverse change (MAC) had occurred in the sale and purchase agreement terms between the companies.

The sale and purchase agreement relates to sugar manufacturer Tongaat disposing of its starch business to a Barloworld subsidiary, KLL Group, which was first announced in February.

Barloworld in May raised concern about the starch business, believing that Covid-19-related impacts on the earnings of the business had resulted in an MAC to the terms of the agreement.

The industrial group said it was reasonably likely that the starch business would achieve 82.5% lower earnings before interest, taxes, depreciation and amortisation for the financial year ending March 31, 2021, compared with the year ended March 31, 2020.

Tongaat, however, disagrees that an MAC has occurred.

The companies, therefore, decided to refer the matter to an independent accountant to determine if such a change had taken place.

South Africa’s competition authorities have this week given their approval for the transaction, which cannot be completed until the MAC matter is resolved.

Source: https://www.engineeringnews.co.za/article/tongaat-barloworld-appoint-third-party-to-check-for-material-adverse-change-2020-07-08

July 07^th 2020

Tongaat Hulett welcomes approval of Starch business acquisition by Barloworld subsidiary.

Agriculture and agri-processing company Tongaat Hulett said today it was pleased at the decision by South Africa’s Competition Tribunal to approve the acquisition of its Tongaat Hulett Starch business by the KLL Group, a wholly owned subsidiary of Barloworld.

It said the decision was the third approval in the jurisdictions relevant to the transaction, with the Botswana Competition Commission and the Common Market for Eastern and
Southern Africa (Comesa) Competition Commission having already approved the transaction without conditions.

The final approval is awaited from the Indonesian Competition Commission, probably in the first week of August.

Tongaat chief executive Gavin Hudson said the approval by the SA Competition Tribunal had been achieved within anticipated timelines, despite the impact on the process of the Covid-19 pandemic.

“This is good news and means we can focus on closing the final conditions relating to the deal,” he said.

“These involve obtaining the consent of our lenders, and the resolution of the MAC (material adverse change) event that Barloworld has called,” he said.

In May, Barloworld indicated it believed a material adverse change had occurred in relation to the sale of the starch business, but on Tuesday Tongaat said it remained “firmly of the view that a MAC has not occurred”. The matter has been referred to an independent third party for determination.

Hudson said the company was still committed to finalising the disposal of the business, one of a range of initiatives Tongaat Hulett has initiated as part of its broader business turnaround process.

“The successful execution of any of these transactions, or a combination of them, will ensure we can deliver on our strategic business partnerships; step-changing our transformation initiatives, protecting employee jobs and helping support the economies of the countries in which we operate,” he said.

Tongaat Hulett Starch is Africa’s largest producer of starch, glucose and related products using maize as its raw material at its five mills.

Source: https://www.africannewsagency.com/business/Tongaat-Hulett-welcomes-approval-of-Starch-business-acquisition-by-Barloworld-subsidiary-26123336