By Tina Caparella
What began 75 years ago as an opportunity to deal with common problems within California’s rendering industry continues in much the same manner today, only the faces and names have changed. Oh, and the location.
Back in 1932, a group of California renderers gathered on the second floor of a San Francisco restaurant to express their varying ideas about where the industry was going and where it might lead. According to the recollection of William H. “Bill” Floyd in the book Rendering: The Invisible Industry, “A single fact became apparent to each of them. They stood a better chance of achieving their individual goals if they got together and found common solutions to common problems.”
That statement still holds true in 2007 as the Pacific Coast Renderers Association (PCRA) gathered in late February at the Torrey Pines Lodge and Resort in the Southern California coastal community of La Jolla to celebrate 75 years of finding common solutions for renderers doing business in the western United States. And while the faces are now different, there was one rendering family who had a member at that first meeting as well as this year’s gathering: the Ottone’s from Salinas Tallow.
While finding solutions to common problems is the goal at every PCRA convention, the association also takes time to recognize a member who has gone above and beyond in their contributions to the rendering industry. This year, the prestigious Tallowmaster award was given to Richard Schoenberg, The Dupps Company, who has a history in the rendering industry dating back to the late 1950s. As Jim M. Andreoli, Baker Commodities, recalled as he prepared to present Schoenberg the award, “In the late 50s and early 60s, he was very instrumental in developing the continuous rendering system. Many, many, many hours, days, and nights were spent on developing the process.
“During his career, he has been dedicated to helping and advising many in the rendering industry,” Andreoli continued. “He is truly a great teacher, instructor, and supervisor. He is very articulate, knowledgeable, and intelligent. He is an expert in his field. Over the years, I have learned much from him and I just wish I knew as much as he knows.”
The 75th convention was also a time for changing officers. For the past three years, Jim A. Andreoli, Baker Commodities, has served as PCRA president and before he “faded into the sunset,” Andreoli thanked association members for their support during his term. He then handed the symbolic gavel over to incoming president Ken Kage, Darling International. Phil Ottone, Salinas Tallow, was elected vice president.
Common Solutions
Starting off the meeting of addressing common problems was Rich Matteis, California Grain and Feed Association, who updated renderers on various legislative activities in California’s capital. Two bills signed into law last year that took effect January 1, 2007, impose new requirements on grease haulers, including requiring an insurance bond, which has caused some new haulers in the biodiesel industry concern because of the high limit. Matteis said that by the February 23, 2007, deadline, nearly 5,500 pieces of state legislation were introduced.
“We certainly need 5,500 more laws to live a comfortable life,” Matteis commented. Some of the bills introduced relate to biofuels, including a minimum content of biodiesel blends and a 30-cent tax credit per gallon for biodiesel, which Matteis believes faces an uphill battle because it would cost the state money. Other bills introduced target animal confinement and food safety, which stems from the E. coli outbreak in spinach that was determined to come from some type of animal.
“We have to be concerned over time about anything that happens downstream from a livestock operation and the kind of liability it imposes on us in the future,” Matteis warned. “With food safety, it is a zero risk philosophy.” On a brighter note, PCRA has an initiative underway to help California renderers with future state permitting activities (i.e., air, water, land) to allow expansion. A package of information for state government has been developed that talks about the benefits of the rendering industry as a means for agencies to help facilitate expansion of the industry in California. In addition, Matteis has drafted a “spot” bill, AB 1352, that covers air permits and improves the nuisance odor protection bill put in place years ago.
Gary Conover, Western United Dairymen, reminded renderers that legislators, even those residing in the state’s central valley where agriculture is king, have no idea where the state’s deadstock or waste restaurant grease goes for disposal.
“This is the challenge the industry faces, to educate new legislators,” Conover stated. He added that two-thirds of the 5,500 bills introduced are just “ludicrous” and are primarily for show. Conover also commented that while dairy producer margins were down about three percent last year, it’s not always reflective of what’s happening on the farm, and that California is still growing its milk-cow herds.
Twenty years ago, cows were producing half the amount of milk they do today with genetics playing a role in that increase. But as cloning becomes more commonplace, it actually stops that genetic increase, Conover said.
Environmental lawsuits continue to target the dairy industry, often forcing small herds to shut down and large herds (5,000 to 10,000 cows) to get bigger because they have the capital and personnel to install more high-tech equipment on the ranch.
“It’s unpleasant to watch some of these farming families that have been in it for generations go out of business, but they’re just having difficulty keeping up with the science and the technology and the resources needed,” Conover explained.
Within the state, there is a migration of dairies from Southern California to California’s central valley and other states because of the high property values in Southern California and the more stringent regulatory requirements. Conover described how fast the permitting process is in Texas, where a dairy can get permitted in about two months.
National Renderers Association (NRA) Chairman Dave Kaluzny II took the podium with good news, starting with no word from the Food and Drug Administration (FDA) on their proposed additional feed ban rule after the NRA submitted comments causing FDA to go back to the drawing board.
“That is not to say that we’ll never hear from it again,” Kaluzny stated. “However, the longer it sits, the more that BSE [bovine spongiform encephalopathy] becomes a non-issue. And as the Europeans move meat and bone meal back into the feed chain, it becomes even more ludicrous to further modify our U.S. feed rule.”
The food versus fuel debate is starting to be asked of renderers, and Kaluzny said the industry needs to have an answer. While the farm sector has control over their production, renderers are constrained by the rate of growth in the meat production sector.
“Tallow supplies only increase if beef production increases,” Kaluzny commented. “As precooked and restaurant food production increases so does our yellow and brown grease supply. However, we have no control over these units of production as a farmer can control his production. Hence, the answer to the question, food or fuel, will be more cut and dry for us than for the farming sector. Ultimately, barring government intervention, the free market will answer the question.”
Kaluzny offered predictions for the future, including seasonal price fluctuations that will be irrelevant and basically won’t exist.
“We are going to go where no renderer has been before,” he quipped. “These are exciting times and time to capitalize on them as only renderers can.” One way the NRA is looking to the future is by forming a standing committee on bioenergy. The committee is seeking volunteers and will meet formally at the NRA spring meeting in April in Chicago.
Ross Hamilton, Darling International and past chairman of the Fats and Proteins Research Foundation (FPRF), said many state veterinarians are supportive of rendering as a means of animal disposal but that many states lack the infrastructure. He added that while California State Veterinarian Dr. Richard Breitmeyer and the California Department of Food and Agriculture (CDFA) recognize and support the importance of rendering in protecting human and animal health and the environment, other state, regional, county, and city environmental and planning agencies are not as supportive. Hamilton commented that some overzealous circuit prosecutors view rendering to be irresponsible and undesirable.
“I think we need some help in trying to educate these people about the importance of the industry, the service that we provide,” Hamilton stated. On the topic of permits, California’s governor believes bureaucracy should not hinder progress and explained that as long as the permit applications are submitted in order and the standards are going to be met, there’s no reason to delay the permitting process at all – it’s a simple yes or no decision.
“We’re not asking for special favors,” Hamilton commented. “We have to expect to be responsible corporate citizens, we should be expected to meet standards in terms of air and wastewater quality, but at the same time we shouldn’t be targeted either to delay the process or line up in somebody’s crosshairs to prove a point.”
Hamilton presented several projects that are in progress at the Animal Co-Products Research and Education Center at Clemson University, including amino acid digestibility of meat and bone meal in broiler and turkey poults, improving fat utilization by the young pig, metabolizable energy value of meat and bone meal, and a number of aquaculture and biosecurity projects. He explained that the challenge for FPRF is funding due to the rendering industry’s consolidation.
FPRF President Dr. Sergio Nates said his goal is to make FPRF more global, and recognized Australia as one of the top contributors to the foundation. FPRF has committed $600,000 to research projects over the next two years and will host a videoconference with Clemson University personnel at the foundation’s emerging issues meeting in April in Chicago.
Dr. Dennis Thompson, CDFA, highlighted the agency’s activities enforcing the state’s grease theft program, which included inspecting every vehicle that is registered to transport inedible kitchen grease including a lot of new registrants that are transporting grease for fuel processing. The state investigated a processor that was receiving grease from unregistered trucks, a violation of state statutes that PCRA helped put in place. After months of working with the local district attorney who was determined to prosecute, the state was informed that the case had slipped through the cracks.
“I’m very sorry to report that,” Thompson stated. The state is examining other ways to bring the case back to the surface. Meanwhile, another case was successful where the violator pleaded no contest in December 2006 for theft of grease. Although the fines were minimal, he was placed on probation for 24 months that includes special conditions including CDFA access to his property and activities.
Thompson said the CDFA office at times receives complaints about renderers not picking up animal carcasses due to disruption of service, but felt the main cause of the complaints is lack of communication between the renderer and client. Thompson is also seeing California’s agriculture industry intensely searching for alternative methods of carcass disposal in what he believes is an attempt to avoid the fees renderers charge.
“The demand for alternatives to rendering continue to be communicated to CDFA on a regular basis,” he stated. “Our role isn’t to defend your industry, or protect it.” But Thompson said so far those seeking alternative methods could not answer questions such as:
• Does the alternative method reduce pathogens to levels that are safe for the intended destination of the final product?
• Is the finished product pathogen-free or does it comply with standards such as the Environmental Protection Agency 503 biosolids rule?
“So far those who are proposing alternative methods cannot answer yes to those questions,” Thomas stated. “However, the hue and the cry and the demand for other methods continues to come to us on a regular basis, and there’s special interest in alternate methods to address emergency situations and clearly that’s an area that’s going to be explored very intensely.” Legislation did go into effect in 2006 to allow alternative methods of carcass disposal in cases of declared emergencies by California’s governor after a summer heat wave killed tens of thousands of livestock that could not be properly handled by renderers in the state’s central valley.
Humphry Koch, West Coast Reduction, updated attendees on Canada’s enhanced feed ban that will take effect July 12, 2007. Among other things, the ban requires that specified risk materials (SRMs) be kept separate from removal through to disposal, be dyed, and be removed from slaughtered cattle at inspected facilities. A permit is required to handle, transport, or receive SRMs. Some Canadian Food Inspection Agency (CFIA) annual estimates include:
• 264,140 metric tons (MT) of SRMs from all sources across the country;
• 642,509 MT of raw bovine waste (SRM and non-SRM), of which 54,434 MT is deadstock;
• 70,525 MT of SRM meat and bone meal; and
• $1.07 to $25 (Canadian) cost per head depending on age of cattle, slaughter facility size, and location.
Koch believes that in the early stages of the ban, most material will probably be landfilled and that the CFIA and packer renderers are expecting the independent rendering industry to deal with most of the SRMs, particularly in the short term. At the same time, funds and encouragement have been given to development of a range of other disposal solutions such as hydrolysis, gasification, composting, and alternative fuel sources. The Canadian government has earmarked $80 million of federal funds to assist with compliance of the new ban, and Canadian renderers expect to receive some of the funding.
“The last four years have been interesting,” Koch commented. “We are no longer the silent industry. Everybody is into our business.”
Kent Swisher, NRA International Programs, discussed the strategies to promote rendered products as a solution in feed formulations, such as for fish meal replacement. A lot of effort is also being focused on reopening the Indonesian market because of the growth seen prior to the discovery of BSE in the United States. Yellow grease exports to the European Union substantially increased in 2006, especially to the Netherlands, and the NRA has seen a steady growth since 2001 in Foreign Agriculture Service funding for the association’s international market activities.
David Meeker, NRA Scientific Services and president, Animal Protein Producers Industry (APPI), informed renderers that the association has education programs available including videos and posters on such things as sanitation and hygiene, and 35 rendering plants have been audited and certified under APPI’s Code of Practice, representing a large production capacity.
NRA President Tom Cook discussed the group’s involvement with biofuels including assuring equity in feedstocks in any tax credits and the formation of a new NRA biofuels committee. He also encouraged renderers to attend the NRA Fly-In in Washington, DC, June 11-13 to meet with congressional leaders.
“I just can’t emphasize enough what it means for the renderers to go in and talk to these people and leave material behind because those contacts are followed up afterwards throughout the year,” Cook commented.
PCRA will hold its next meeting in February 2008 in Carmel, CA.
April 2007 Render