Starch Pros

March 01^st 2018

ADM continues global expansion of sweeteners and starches footprint with 50 percent stake in corn wet mill business of Aston Foods.

Investment in Aston Foods and Food Ingredients builds on previous growth in Europe, Middle East and North Africa.

Archer Daniels Midland Company today announced an agreement to acquire a 50 percent equity stake in the sweeteners and starches business of Russia-based Aston Foods and Food Ingredients.

“ADM has substantially added to our global sweeteners and starches capabilities with acquisitions serving the European Union, Middle East and North Africa markets, and now we are expanding to serve the growing Russian food and beverage industry,” said Pierre Duprat, president, ADM Europe, Middle East and Africa. “Aston is a key player in this important market, and we look forward to joining them and bringing our experience and capabilities to help our new jointly-owned business grow.”

Under the terms of the agreement, ADM will become 50 percent owner of Aston’s corn wet mills in Ibred and Novlyanka, which are strategically located close to major customers in the Russian food and beverage industry.

“This investment is the latest in a series of important additions and enhancements we have made to grow our global Corn business,” said Chris Cuddy, president of ADM’s Corn Processing business. “Last year, we completed our acquisition of Chamtor, opening up access to key markets in Western Europe. In 2015 and 2016, we acquired corn facilities in Hungary, Bulgaria, Turkey and Morocco, then launched a significant expansion effort to enhance our capabilities in those businesses. And we’ve grown significantly in Asia, with our sweetener facility in Tianjin as well as several animal feed plants. Taken together with this expansion into Russia, these global additions represent a substantial transformation for our Corn business as we continue our geographical growth and diversification.”

ADM is targeting a close for the transaction, which is subject to regulatory approval, late in the second quarter of 2018.

Source: https://www.adm.com/news/news-releases

February 27^th 2018

Resistant starch: A promising ingredient in battling malnutrition in infants.

An ingredient as simple as resistant starch could hold the answer to reducing malnutrition among infants in low-middle income countries, according to a study led by researchers at Flinders University in South Australia. Resistant starch occurs naturally in foods such as oats, maize and green bananas but can also easily be added to food products. The addition of this prebiotic is thought to aid gastrointestinal health, which is of particular importance in areas where sanitation is lacking.

“Ultimately, we believe that supplementing foods with resistant starch in infants in a low-middle income country setting could prove beneficial to their nutritional status, gut physiology and immunity,” Flinders GI Global Health Unit Project Manager Elissa Mortimer states.

As part of their study, the researchers added the prebiotic to stools collected from pre-weaning and early weaning infants in an African village.

“With this method, the resistant starch is incubated with the feces in a test tube to determine fermentative capacity in a process that mimics digestion,” Mortimer says.

In a team led by Professor Graeme Young, the researchers found that both groups did have a fermentative capacity using an in vitro model. This fermentative capacity resulted in the production of the short-chain fatty acid acetate, which is important for gut health as it aids in reducing gut inflammation, regulating lipid and glucose metabolism and providing an energy source.

“It was previously understood that infants, especially those prior to weaning, were unable to ferment complex carbohydrates, having a less mature gut microbiota than adults and older children, with fewer bacteria which degrade polysaccharides and produce short chain fatty acids (SCFAs),” Elissa Mortimer explains.

“The use of prebiotics in low-middle income countries could be particularly beneficial owing to the damage to the gut from environmental pathogens in the everyday environment because of poor water and sanitation,” Mortimer says.

Repeated infections with these pathogens lead to repeated episodes of acute diarrhea and a sub-clinical syndrome called Environmental Enteric Dysfunction (EED), which is characterized by damage to intestinal structure and function.

“In a study done by Dr. Geetha Gopalsamy, a Ph.D. student with our team here at Flinders University, it was shown that healthy Australian infants do have the ability to ferment complex carbohydrates even prior to weaning. This is of particular interest with prebiotics such as resistant starch which cannot be digested by human digestive enzymes and pass into the large intestine undigested where they act as a substrate for bacterial species residing there,” Mortimer explains.

“These species ferment the resistant starch, producing the SCFA metabolites which provide a variety of benefits including maintenance of gut integrity and regulation of inflammation and metabolism. SCFAs also provide an energy source for colonic epithelium cells which, in a context of poor food security can make a big difference to health outcomes,” Mortimer adds.

The Flinders University study is yet to be published, but Mortimer sets the estimated timeline for publication at about six months.

The resistant starch study builds upon previous studies by Mortimer and her colleagues, which analyzed the effect of a type of resistant starch called High Amylose Maize Starch in older children (3-5 years) in Malawi and India.

“Both of these studies showed that the study participants were able to ferment the resistant starch and that it modulated the gut microbiota and increased the concentration of SCFAs,” Mortimer says.

The High Amylose Maize Starch (HAMS) used by the researchers in these studies can be easily added to baked products such as biscuits, cookies and bread.

“The texture of HAMS is similar to normal wheat flour and there is no taste and little change to texture. In terms of products for infants, it has been added to complementary foods such as rice cereal or other infant porridges made from grains or pulses with good effect,” Mortimer adds.

“In terms of future studies, we have already completed a study with early-weaning infants in India in which we fed resistant starch by adding it to complementary foods which the infants consumed,” she says, adding that the results are pending, with lab work expected to be completed in the coming six months.

Source: http://www.flinders.edu.au/people/elissa.mortimer

February 16^th 2018

ADM will invest nearly $200 million in Iowa (USA) grain facility.

Chicago-based Archer Daniel Midland will invest nearly $200 million to update a grain processing facility in Clinton.

The company plans to revamp the early 1900s-era wet mill facility it acquired in 1982, according to state economic development documents.

ADM will spend about $196 million to revamp the mill, according to state records. That includes $146.5 million for machinery and equipment and $39.1 million in building construction costs.

The Iowa Economic Development Authority board approved about $8.2 million in economic incentives toward the build at its Friday meeting. That includes $7 million in investment tax credits and about $1.3 million in tax refunds.

Clinton must match the state award with a 5-year tax abatement, but the value of that incentive was undetermined on Friday.

ADM has agreed to retain 42 jobs, which must pay at least $15.99 per hour. Officials said the plant currently employs about 775 people. State officials do not expect large job losses, but the incentive award was contingent upon clarification of employment levels.

ADM’s mill separates corn so it can be converted into products like sweeteners, starches, ethanol, and bioproducts. That includes liquid dextrose, high fructose corn syrup, crystalline dextrose, native and modified dry starches, Fibersol®, ethanol, crude and refined corn oil, gluten meal and gluten feed.

“The equipment in the Mill has reached the end of its useful life and is installed in many of the original plant structures,” state documents read, “which are also beyond their economic life expectancies.”

Source: https://www.desmoinesregister.com/story/money/business/2018/02/16/adm-invest-nearly-200-million-iowa-grain-facility/345777002/

February 02^nd 2018

Ingredion capitalising as texture shapes innovation.

Ingredion is responding to the growing role that texture is playing in product development as it seeks to grow its starch business, part of its specialities unit.

Ingredion has placed its speciality ingredients business “at the centre” of its strategy, based on consumer and technology trends.

Ingredion also believes texturisers are a “large and increasingly influential” part of food formulation. According to data cited by the firm at its most recent investor day, global ingrediënt sales total $150bn and texture industry sales account for $40bn of this total.

Demand for texturisers is being supported by an increase in front of pack texture claims, which increased by 79% in number between 2011 and 2016, representing a compound annual growth rate of 12%.

Accordingly, incoming CEO James Zallie indicated, the company has developed a “speciality starch focus” that it believes will support growth in 2018. As products are reformulated, in particular, Zallie said it is “very important to build back texture”.

“Our specialty starch focus… is centred around the breadth and depth of the portfolio that we have. So breath across various starch types – that would be corn tapioca, potato, rice and variations thereof,” he detailed during a call with analysts this week.

The group expects clean label innovation to underpin its future development, he continued. “We continue to expand functionalities for those products… Under that clean label wholesome umbrella, our starch texturisation program… is a big drive.”

Acquisitions have enabled Ingredion to ramp up its presence in the starch space. “From a product focus standpoint our potato starches, which we acquired with Penford acquisition a couple years ago, continue to do well because it provides different functionalities in certain applications like snacks and meats and cheese. And then also we’re very optimistic on the prospects for our rice starch acquisition from Banglen just this past year. And year-on-year we are anticipating very healthy growth from that rice portfolio not just in Asia Pacific but also in the EMEA as well as in North America.”

Speciality sales currently account for 28% of Ingredion’s business. The company sees this unit “in the mid-30% five years out”, Zallie revealed.

Vertical Group analyst Brett Hundley expects that the competitive environment and cost pressures to make growth in speciality – and the potential acquisitions – more of a focus in the coming year.

“Core margins are stable, but they are incrementally harder to drive higher now. Given some inflationary trends and some increased competition, specialty performance and M&A (Mergers and Acquisitions) become increasingly important, in our view,” he said.

Ingredion, which reported a 2% increase in full-year sales to $5.8bn earlier this week, said that higher speciality sales were improving its margin profile. The company indicated that it expected its sales mix to see further benefits from higher margin speciality sales in the coming year.

On M&A Hundley notes that ingredient valuations are currently high. However, he adds that the group can leverage its balance sheet to support investment.

Zallie also sees potential in developing partnership arrangements in order to access new customers. “Our go-to-market model globally and how we’re positioning with our customers makes us in a very attractive partner, and that’s why many companies come to us to want to leverage the sales marketing capabilities in the reach that we have globally.

“We’re very open minded to partnerships, but at the end of the day as it relates to M&A partnerships, it’s all about value creation, it’s all about shareholder value creation, and we’re going to be very disciplined.”

Source: http://www.newslocker.com/en-uk/news/food/ingredion-capitalising-as-texture-shapes-innovation/

January 30^th 2018

Cargill and AKV Langholt AmbA invest $22.5 million USD in Denmark potato starch production facility.

In a joint venture, Cargill and its Danish potato starch partner, AKV Langholt AmbA, are investing US$22.5 million (€19 million) in a new potato starch production unit at their
Langholt facility in Denmark. The plant expects to start operations in mid-2018.

“This investment demonstrates Cargill’s commitment to providing our food manufacturing customers the functional native starches they need to meet the demand of today’s label-conscious consumers,” says Simon Waters, global food starch leader, Cargill.

“Consumer demand for products made with familiar, trusted ingredients is increasing rapidly,” said Waters. “However, these ingredients must also stand up to the diverse processing conditions of modern processing. We understand these competing needs and are using state-of-the-art processing techniques make label-friendly starch solutions a reality.”

In an interview Laura Goodbrand, EMEA starch product manager for Cargill Starches, Sweeteners & Texturizers says: “Potato starch is a really exciting texturizing ingredient. Potatoes are interesting for Cargill because they allow us to develop new connections with
our customers, this investment will really take off in terms of the opportunities available in our customer markets and in particular, in Europe, where potato has a positive label declaration and consumer appeal.”

“The partnership with AKV Langholt AmbA has been ongoing for thirty years and the plant in Denmark is in a very nice location for the growth of potatoes. Our job with AKV Langholt AmbA is to work with the potato farmers to give them back the best they can get, from the products that they produce, and bring good value products right into the market. Cargill is responsible for commercializing the right products and helping them to get the right processing developments to ensure they can be successful while growing their raw ingredients,” she explains.

“The potato starch market is very important to us, we have a smaller footprint than other players in the market but we are certainly aiming to grow that.” No specifics were revealed in terms of capacity, but the move will give a “good amount of additional growth for this particular raw ingredient.” “It will become an even bigger opportunity for us to differentiate once again and offer a new scope to enter into markets, with clean label starches that our customers are asking for,” she adds.

Potato starches produced at the new facility expand Cargill’s SimPure portfolio of functional native starches. SimPure starches feature ingredients from a variety of botanical sources, providing food and beverage manufacturers access to the recognizable, simple ingredients consumers demand, while achieving necessary process tolerance, retail shelf-life and storage ability.

SimPure is an evolving range of functional clean label starches. “Watch this space for further developments as we are hoping to expand that brand even further so it will be a product range that you will still see around in the coming years,” says Goodbrand.

“The ingredient market is always vibrant, everyone is always looking for new and interesting ways to differentiate themselves and reinvent themselves in some cases and also to meet the needs of the consumers so for Cargill, it’s really about selecting the right areas and the right opportunities for growth. This particular investment in Denmark is really part of a key strategic opportunity for starch and Cargill Texturing Solutions as a whole,” she notes.

“Our key target application areas we are indeed focusing on are predominantly convenience and meat manufactures, basically those who see potato ingredients as having a really positive commercial style for consumer recognizability and also consumer relevance,” Goodbrand states. “When we make our soups at home we can thicken them with potatoes and so it’s a logical ingredient for these types of scenarios, such as making convenience foods more adaptable and easy to use in solutions. Equally, for meat manufactures, potato as a granule, holds much more water in terms of shelf-life stability, so for meat manufactures looking for a better water holding solution, potato is an exceptional option.”

“It’s a clean ingredient, people see it as a clean ingredient and it will make the end product label simple,” she adds. “The good thing about potatoes is that they have no taste or odor so can be used very well in many applications,” Goodbrand concludes.

Source: https://www.cargill.com/news/press-releases

January 25th 2018

Scientists eye potato starch as bio-based solution for paints and varnishes.

If a surface has to be protected against corrosion, in 80 percent of all cases this takes place through coating it with paints or varnishes. When doing so, the proportion of bio-based, environmentally-friendly solutions is extremely small. Researchers at the Fraunhofer Institute for Applied Polymer Research IAP, in cooperation with the Fraunhofer Institute for Manufacturing Engineering and Automation IPA, are looking to close this gap and are developing a cost-effecti-ve coating based on renewable raw materials. The focus of the research is on potato starch.

Climate change, finite resources, increasing burdens on the environment mean that more and more industries are focusing on sustainable production. And this is also the case in the production of coatings such as paints and varnishes. In Germany alone, 100,000 tonnes of coating materials for protection against corrosion are produced every year. However, in the past, paints and varnishes with bio-based binders or film formers have usually been too expensive or could not meet the requirements. But through the use of modified starch, scientists at the Fraunhofer IAP have found a way which even in this field makes sustainable and cost-effective solutions possible. “Until now, traditional industrial fields of application of starch have been the paper/cor­rugated cardboard and adhesives industries,” says Christina Gabriel, a scientist at the Fraunhofer IAP in Potsdam-Golm. “In the field of paints and varnishes on the other hand, starch was usually only used as a additive. With starch as the main component of a water-based dispersion, we now have very promising adhesion results.” At the center of the research is the coating of metals for indoor use, for example aluminum, which can be used, e.g. for fire doors, computer housings or window frames.

The use of starch as the main component of paints and varnishes posed various challenges to the Fraunhofer experts. “Film formers must fulfill several tasks. They must form a continuous film, which adheres well to the substrate material, is compatible with additional layers and additives and can embed pigments and fillers as well,” explains Christina Gabriel. “In its natural form, however, starch exhibits several proper­ties, which stand in the way of its use as a film former. For example, it is not soluble in cold water and neither does it form continuous, non-brittle films. We therefore had to modify the starch to adapt it to the requirements, as in spite of all the challenges, as a renewable and cost-effective raw material, starch is of great interest for many sectors.”

The solution by the Potsdam scientists involves an initial degradation step of the starch in order to improve its solubility in water and the subsequently associated solids content of the starch in water, as well as its film forming ability. However, in order to produce a starch-based coating material, which is comparable with a conventional coating, this is not yet sufficient, as although the film former should initially be soluble or dispersible in water, the coating must subsequently no longer dissolve in water.
The starch must therefore be modified further. This takes place by way of a chemical process known as esterification. The resulting starch esters are dispersible in water, form continuous films and have very good adhesive properties on glass and aluminum surfaces. In cooperation with the Fraunhofer IPA, the esterified starch is then “cross­linked” through which the sensitivity of the coating to water is reduced further.

The stability tests to check the long-term stability are then also carried out at the Fraunhofer IPA. In the tests, the coated materials are exposed to rapidly changing temperature cycles in a time-compressed form to simulate the change from day to night and the course of the seasons. In addition, the test objects are exposed to electrolyte-enriched water in order to see how the coating reacts to water and how resistant it is under extreme conditions.

In the next step, the resistance to corrosion and adhesion of the modified starch on different metal substrates is examined. New “recipes” are also being tested, which are intended to optimize the properties of the coating even further. “Apart from the already tested aluminum, two other important metals, steel and galvanized steel, are to be tested” states Gabriel. “Our investigations show that with its good film forming and very good adhesion properties on various substrates, starch esters have the potential to be future alternatives to petroleum-based film formers in the coatings industry.”

Source: https://www.fraunhofer.de/en/press.html

January 22^nd 2018

Cargill makes first investment in Saudi Arabia, targets Middle Eastern growth.

Through a joint venture between Cargill and Arasco, the Kingdom of Saudi Arabia (KSA) has a new corn milling facility to meet the growing demand of the region’s food and beverage industry. The Middle East Food Solutions Company (MEFSCO Corn Milling Facility), inaugurated in Al-Kharj, is Cargill’s first investment in KSA. The investment marks the company’s commitment to the Middle Eastern economy and support for the region’s food and beverage manufacturers.

The MEFSCO facility was built to serve the Gulf Cooperation Countries (GCC), which include Saudi Arabia, the UAE, Kuwait, Oman, Bahrain and Qatar. With the new plant, the joint venture is able to double its glucose and starch production capacities, triple total production volume and expand its product portfolio to include high fructose corn syrup to meet the growing demand across the confectionery, juice, bakery and catering segments in the region.

Julian Chase, global Leader for Cargill starches, sweeteners and texturizers said: “The Middle East food industry is one of the world’s fastest-growing markets. The MEFSCO facility gives regional food and beverage manufacturers access to a high quality, innovative products produced specifically for them. Arasco’s local knowledge and supply chain infrastructure were crucial in our ability to design a facility that best serves local market needs.”

The expansion allows MEFSCO to offer enhanced, market-specific solutions for Middle Eastern customers.

Ziyad Alsheikh, Chief Executive Officer of MEFSCO, said: “In the Middle East, consumer awareness around food safety and hygiene is growing steadily. Cargill’s expertise in processing agricultural commodities into high-quality sweeteners and starch-based products will provide our regional customers with an edge in making products that respond to this consumer trend. Customers will be able to serve the market’s demand for products that MEFSCO will manufacture to the strictest food safety and hygiene standards in our state-of-the-art Al-Kharj facility.”

The MEFSCO joint venture was established by Cargill and Arasco, a leading food manufacturer in KSA, in 2013. The new starches and sweeteners facility marks the joint venture’s first investment in KSA.

Source: http://www.prnewswire.co.uk/news-releases/news-releases-list/

January 19th 2018

Cargill diversifies starches and sweeteners site in Krefeld, Germany.

Cargill is expanding and diversifying its product portfolio at its starches and sweeteners plant in Krefeld, Germany with products such as vegetable wheat protein, specialized industrial wheat starches and advanced biofuel. Transitioning this site from a corn to wheat processing facility allows Cargill to add these products to its product portfolio and help customers address changing consumer needs in terms of nutrition, packaging and sustainable fuel.

Cargill’s corn processing facility at Krefeld produces high-quality starches and sweeteners from corn for a series of food, feed and industrial applications. As part of Cargill’s long-term strategy, the transformation to wheat will broaden Cargill’s product portfolio to address changing consumer needs such as an increasing demand for protein rich foods, rising need for paper and packaging solutions and renewable energy sources. The transformation is expected to be completed in 2020.

“Cargill wants to address the growing needs of its customers and the market – both in the Germany and across Europe – such as the increasing demand for vegetable proteins driven by a growing world population and the rising need for industrial starches used in packaging,” says Alain Dufait, Cargill Starches & Sweeteners Europe Managing Director. “In addition, we are exploring the opportunity to manufacture and offer our customers advanced biofuel produced from low-value streams.”

The new facility will be using the latest production technologies, allowing Cargill to further increase its plant reliability and to further improve its service to customers. Menno Timmermans, Cargill Starches & Sweeteners Europe Krefeld site manager says: “This is an exciting time for us as the Krefeld facility will broaden its product offering to provide our customers with the right choice of qualitative and competitive wheat based products for food, feed & industrial applications to address a growing world population’s need for protein rich foods, booming packaging industry due to growth in e-commerce and growing consumer sensitivity towards sustainable fuel alternatives.”

This intent to invest in the Krefeld plant demonstrates Cargill’s support for the German economy and the German and European farming community.

Source: http://www.finanznachrichten.de/nachrichten/uebersicht.htm

January 17^th 2018

Cargill invests in PURIS to accelerate pea protein production for North American and global markets.

With the rapid rise in consumer demand for plant-based protein, PURIS, the largest North American producer of pea protein, and Cargill have signed a joint venture agreement to accelerate a new wave of great tasting, sustainable and label-friendly plant-based foods.

“PURIS is a game changer in terms of taste and vertical integration in pea protein,” said David Henstrom, vice president, Cargill Starches, Sweeteners and Texturizers. “Cargill is excited to expand into the emerging pea protein space while continuing to support our conventional agricultural crops. It’s clear that PURIS is in alignment with Cargill’s vision to meet the growing demand for protein globally and to help customers deliver label-friendly products without sacrificing taste.”

“Cargill’s financial backing and market reach will power significant expansion of our operation globally. We will add substantial capacity, including a second plant, while maintaining our focus on U.S. production,” says PURIS President Tyler Lorenzen. “Cargill is investing in everything PURIS stands for, from our vertically integrated non-GMO pea seed development to our proprietary technologies and our commitment to U.S. Certified Organic pea farmers.”

A growing number of consumers are looking for great taste, simpler labels and alternative sources of protein to solve their personalized nutrition choices. Manufacturers are turning to pea protein because of its functional and nutritional attributes. Pea protein offers a non-GMO, Certified Organic, allergen-friendly option that checks all the boxes consumers are looking for in label-friendly products. It’s also compatible with vegetarian and vegan lifestyles. PURIS™ Pea Protein is known for its superior taste and is produced from peas grown sustainably and manufactured in the U.S.

“With Cargill’s support, our plant-based ingredients become available to customers and consumers on a global scale,” said Lorenzen. “Our founder set out to feed the world in 1986. Now it’s coming true.”

Source: https://www.cargill.com/news/press-releases

January 01^st 2018

NIVOBA and HOVEX combine their expertise.

Nivoba and Hovex to join forces and continue as one company being among the global leaders in starch engineering.

See their websites for their announcements: http://www.nivoba.com/ and https://www.hovex.com/.

In the video section of this Starch Pros’ website you can find the introduction video accompying the announcement of these two companies.

Source: http://www.nivoba.com/ and https://www.hovex.com/