Both groups gathered in October in Santa Barbara, CA, with FPRF beginning the week-long session with the research committee, and subsequently, the board of directors, approving funds for five proposals and a pre-proposal to be developed into a full proposal. The projects cover detection of ovine tissue in rendered products; nutrient protein pre-testing to improve product quality and reduce odor production; a certification for biodiesel; replacement of animal proteins for fish meal; non-feed applications for meat and bone meal; and a pre-proposal for optimizing sow diets.
In response to a growing market opportunity for rendered products, FPRF developed a Biodiesel Technical Advisory Board. The group also installed new officers for 2002-2003, which included Don Davis, Central Bi Products, as chairman; Dr. Ross Hamilton, Darling International, as vice chairman; and Kevin Kuhni, John Kuhni Sons, as treasurer. Dr. Gary Pearl was elected to continue his role as president.
Later that evening, a special reception was held to recognize FPRF’s 40th anniversary. FPRF Past Chairman David Kaluzny, Kaluzny Bros., recapped early research projects, emphasizing that in the past four decades, over 500 projects have been completed.
Overflow Crowd at Popular Venue
The second day of FPRF’s session has proven to be a must-attend event over the past few years. The “Emerging Issues and Opportunities Seminar” once again covered a gamut of hot industry issues and was attended by a near record audience.
Dr. Frank Klein, Neogen Corp., opened the day with an overview on the company’s new rapid test for detecting ruminant proteins in meat and bone meal, which are prohibited from feeding to ruminants. The test is a screening assay that focuses on a muscle tissue protein and can detect five percent actual bovine meat and bone meal in other meals, such as poultry, porcine, or fish meals. The kit is specific to ruminant species, detecting beef, sheep, and goat proteins in either rendered animal products or finished feed materials and ingredients, including vegetable meals and feed supplements.
The test uses a dipstick immunoassay, similar to over-the-counter pregnancy tests, where the dipstick device is placed into a liquid sample, eventually providing either a one-line negative or two-line positive result.
“We felt the assay had to be very easy to use, inexpensive, and very reliable,” Klein stated. “Basically, the test kit has everything you need to do any kind of testing.” Any additional equipment needed can be economically purchased at most discount retailers. He emphasized that the test is not meant to compete with laboratory-based testing, and that the Food and Drug Administration (FDA) is reluctant at this time to validate anything except laboratory methods.
“It’s important to ensure that this material remains useful and in the right channels,” Klein said.
Following next was Dr. Charles Chasteen, Novus International, who provided information on a test that determines the protein amino acid digestibility of feed ingredients. He explained that ingredients vary in protein digestibility, with studies showing 35 commercial samples of meat and bone meal ranged between 45 and 88 percent digestibility. The laboratory-based test, called the Immobilized Digestive Enzyme Assay, requires a few tools that most labs have and takes about two hours for meat and bone or poultry meal. Chasteen provided various reasons why renderers should use the test, including comparing their products with their competitors’, but stated, “The people in this room will best determine how to use this tool.”
A perspective from a rendered product end user was presented next as Deborah Dempsey, Uniqema, explained the benefits of using tallow in the manufacturing of fatty acids. She described the parameters of incoming raw material that are important to producers as being the titre, free fatty acid levels, color, iodine value, emulsion (a relatively new issue), and polyethylene. Dempsey said that in terms of oleochemical applications, 60 to 70 percent of fatty acids that are produced end up in applications such as soaps, detergents, tires, and paper.
“At the end of the day, they end up in consumer products and that’s important because that gives a view of how the oleochemical industry in various regions will tend to grow,” she stated, adding that oleochemical use in the United States and Europe is currently at a two to two-and-a-half percent growth. Rapid growth is seen more in developing countries such as Latin America, India, Pakistan, and some African countries.
Dempsey explained that in the United States, the oleochemical industry primarily uses tallow, with vegetable fatty acids that have similar compositions used as substitutes, while in Europe, statistics show more use of vegetable-based products. She estimated U.S. consumption of inedible tallow in 2002 to be about 3.6 billion pounds, with nearly one billion being used in fatty acids.
“We rely very heavily on tallow and we consider it to be a safe and effective raw material,” Dempsey commented. “It’s cost effective for the oleochemical industry and we have every intent of continuing to use tallow in our applications.” She pointed out that disease and regulatory constraints do pose threats to their industry in terms of the ability to consume tallow in their applications, but they are managing it rapidly and effectively with help from rendering industry representatives. Other threats for the future include development of alternative fuels/biodiesel, and the potential for vegetable substitution.
Biodiesel took the stage next with presentations from two renderers on their experience with this alternative fuel. Ron Wardrop, Rothsay, Canada, said the company began to examine biodiesel once the European market began to change for rendered products. He explained that industry groups approached the Canadian government as a team for tax relief on biodiesel, thus eliminating any feedstock issues. Currently, the Ontario province provides a 35.3¢ per gallon subsidy in addition to a federal tax relief of 10¢, but the subsidy does not take affect until a biodiesel plant is built. Some provinces are not receptive to tax credits, particularly Alberta, which is a large petroleum-producing province.
Currently, Rothsay is running a small biodiesel pilot plant in their Montreal facility but is examining the various biodiesel technologies before expanding further. Wardrop added that city transit systems and large inner-city fleets, such as the postal service, are very receptive to using biodiesel, and stressed that there were no cold flow problems when Rothsay ran their fleet of trucks on B20 (a blend of 20 percent biodiesel with petroleum diesel) last winter.
Mike Langenhorst, Anamax Corporation, took the podium next to share his company’s biodiesel experience, which began by asking themselves a number of questions, including economic factors. One stumbling block Langenhorst realized was the few tax credits available for animal fats-based biodiesel. He explained that current programs provide greater credits for soy-based fuel and the proposed credits in the U.S. energy bill encourages use by blenders and consumers of soy-based products.
“It’s ludicrous,” he commented, demonstrating that when all tax credits are calculated, soy oil has an advantage of $1.15 to $1.47 per gallon. “What kind of government program is that?” Langenhorst, Dennis Griffin, Griffin Industries, Gary Pearl, and Steve Kopperud, NRA legislative consultant, have been meeting every six to eight weeks in Washington, DC, for the past six months working with legislators to eliminate the credit discrepancies. He encouraged all renderers to write letters to the U.S. Department of Agriculture (USDA), Congress, and the Senate requesting that any tax credits for biodiesel be feedstock neutral.
“All we ask for is equality,” Langenhorst stated. Currently, 29 states are considering biodiesel legislation.
Switching fuel gears was Dr. Tom Adams, University of Georgia, who presented results of a jointly funded project on using rendered fats and greases as industrial boiler fuels. He shared the advantages of substituting the biofuels for No. 2 and No. 6 fuels, such as practically no sulfur or odor; no significant difference in efficiency between biofuel oil blends and No. 2 fuel oil; and the furnace is almost as clean as burning natural gas. Adams recommended filtering the fats and oils prior to use and examining fuel storage issues, such as whether fats and oils can be stored in the same tanks as No. 2 fuel oil. He feels the winter months would be ideal for use of biofuels because of the cost advantage, and that an American Society of Testing and Materials standard needs to be developed for biofuels. Full results of the project are posted on the FPRF Web site at www.fprf.org.
Max Morley, Pinches Consolidated Industries, New Zealand, introduced an airless drying technology, which utilizes super heated steam as the medium. The system is a process loop up to 450 degrees Fahrenheit operating in an atmospheric pressure environment. He explained the operational benefits, including a 15 to 20 percent faster drying time compared to conventional units, resulting in significant energy savings, and a near absence of oxygen, eliminating risk of fire or explosion. The company has invested over 2,500 hours of design time and currently has a system in operation processing meat and bone meal. Morley believes final data should be available on the unit’s results within the next six months.
John Haid, Simmons Foods/ANC Technology LLC, presented a brief explanation on a trademarked nutrition compound currently produced from poultry products.
Dr. Kent Bullard, Channel Islands National Park, who is a biodiesel advocate, shared the park’s efforts at utilizing renewable energy. The park consists of five islands about 20 miles off the coast of southern California. Currently, 60,000 gallons of diesel are being used per year by the park’s boat fleet, an amount Bullard has worked hard at reducing with the introduction of biodiesel. He said the park has used 20,000 gallons of B100 (pure biodiesel) since August 2000.
“If we had our druthers, we would be using between 35,000 and 40,000 gallons of B100 in the park,” Bullard said. Currently, the biodiesel being used in the park is soy-based; however, Bullard prefers to use rendered fats-based biodiesel and touched on the obstacles in obtaining the preferred fuel.
“Because of commodity support, soy is the front runner right now,” he commented. Fuel distribution and availability is also another issue.
“I should not have to bring fuel from Kentucky,” he stated. “We need production facilities locally making our fuel.”
Continuing on the biodiesel topic was Tim Maneely, Superior Process Technologies, who discussed the considerations renderers need to examine in planning a biodiesel plant. He told attendees to look at where their biodiesel markets are located, how the product will be distributed, and distance and availability of feedstock supply. Maneely also touched on construction matters, such as choosing an experienced contractor and obtaining permits.
NRA Committees Meet First
In a switch from previous conventions, NRA scheduled two committee meetings on the first day of the group’s gathering, providing ample time to address important issues.
First up was the Environmental Committee, which was well attended and included a teleconference with John Thorne, NRA consultant, on the Environmental Protection Agency’s (EPA’s) effluent limitation guidelines (ELG) rule. He stated that indirect discharge systems are being left out of the final rule, which is expected in December 2003, and that EPA should release a Notice of Data Availability (NODA) in the spring that will report the results of requested surveys submitted to EPA by industry members. Thorpe noted that EPA acknowledges the proposed rule is flawed, but he had hope for a minimal effect on renderers.
“I think the meat and poultry processing industries will be harder hit than renderers,” he commented, adding that a comment period will follow the release of the NODA, and EPA could eventually release more than one NODA based on industry comments.
Next on the agenda was an effort by the association to get EPA approval on using animal fats and oils as a replacement for burner fuel. It was decided to include the results of the University of Georgia boiler fuel project in the final figures submitted to EPA, which in turn should produce a “guidance letter” by the end of December.
The Legislative Action Committee took over the table next where there was much discussion about the energy bill (H.R. 4), including the inequality of feedstocks eligible for biodiesel tax credits. Steve Kopperud recapped the extensive work he, NRA staff, and various NRA members have done to educate Washington, DC, policy makers about the use of rendered products in biodiesel.
“In meetings on the hill, I don’t think Tom [Cook] and I ever went away from someone who said anything other than, ‘This makes perfect sense. If we’re going to do biodiesel, we’re going to do it on an equitable basis,’” Kopperud said, adding that 15 animal agriculture and restaurant groups signed a letter supporting equality in biodiesel.
“This letter effectively showed that this was no longer soybeans versus rendering,” Kopperud commented. “This was soybeans versus all of animal agriculture and the commercial restaurant industry when it came to the future of biodiesel. It was very effective.” He predicted that it would be some time before the energy bill went forward.
Jim Rudbeck, vice president, NRA International Programs, shared the impact the European Union’s (EU’s) animal by-products regulation (see International, page 30) will have on U.S. trade, pointing out that tallow exports to the EU will “go down the drain,” although there may be opportunities for packer tallow.
“There is still light at the end of the tunnel on country classification,” Rudbeck added, stating that the rendering and pet food industries are pushing for Category I for the United States under the EU’s new proposed bovine spongiform encephalopathy (BSE) risk country classifications, but that it may be difficult due to the fact the U.S. feed ban has not been in place for seven years, a requirement of being classified Category I. Many industry members voiced their concerns about the ripple effect EU legislation will have around the world.
“There are a lot of countries out there who look to Europe as the lead and you have to be sensitive to that,” warned David Harley, Proctor and Gamble.
Tom Cook, NRA president, told all in attendance how successful the Congressional Fly-In was this past summer and that members agreed to make it an annual event, with next year’s fly-in taking place June 9-11, 2003.
“If you can get to [Washington] DC next year, do it!” encouraged Kopperud. “It’s an incredible benefit to your industry.”
Langenhorst recapped the chronic wasting disease (CWD) situation in Wisconsin, stating that while the state’s renderers offered assistance in dealing with the 20,000 to 30,000 deer planned for eradication, the state chose to incinerate all material.
Convention Gets Underway
The general session got underway that afternoon with a welcome address from NRA Chairman Humphry Koch, West Coast Reduction, Ltd. Following him was Michael Campbell, host of Canada’s “Money Talks” Corus Radio Network, who shared his views on the world’s economic status, the stock market, and the rendering industry.
“This industry is needed in a profound way by the communities you serve,” Campbell commented.
Doug Ward, president, European Fat Processors and Renderers Association, and World Renderers Organization, discussed the changes in the European rendering industry due to BSE, which has now been discovered in 21 countries, primarily in Europe, where 16 million tons of meat and bone meal is destroyed annually with an econo-mic impact of $3 billion. Ward added that while the animal by-products regulation is justified in the EU, no such ban is currently in place in any other country in the world.
“We must ensure that protein that is safe is not destroyed,” he stated.
Paul Stenzel, president, Australian Renderers Association, presented news from down under, including export figures for rendered products that show a 41 percent drop to Japan, and 76 percent increases to both Korea and Canada. Australia’s ruminant feed ban was recently expanded to include fish, feather, and poultry by-products; the only exemptions are milk, dairy products, and tallow.
Stenzel updated the audience on Australian Dehydration Technologies’ new rendering system introduced last year that claims to kill prions. He said further trials are needed but the cost is approximately one million dollars. The company is seeking investors.
As for the biodiesel industry in Australia, Stenzel said the government believes that unless biodiesel is used at 100 percent, there should be no excise taxes. Other issues renderers down under are facing are a low raw material supply due to the country’s 20-month drought; public perception; and differentiation in legislation between states. Two rendering plants burned down last year within two weeks of each other, including one in Brisbane that processes for all poultry slaughterers in Australia.
“About 30,000 tons of poultry guts and feathers went to landfill,” said Stenzel. “Never had the Environmental Protection Authority in Australia really understood what the rendering industry does for the community until this situation. They couldn’t do enough to get that plant back operating.”
Animal Agriculture and Terrorism
The following day, Dr. Gary Smith, Colorado State University (CSU), presented future trends in the livestock industry, including growing interest in chemical dehairing, which has been shown to significantly reduce the presence of E. Coli 015787 on carcasses; theories on the reason for the spread of CWD; and a study currently underway at CSU to evaluate carcass disposal options.
Addressing Canadian animal agriculture issues was Dr. Sara Kahn, deputy chief veterinary officer, Canada-Ottawa, who affirmed that carcass disposal was “very much front and center in the veterinary community.” She discussed the various Canadian policies with regards to animal diseases, which are similar to the United States. Kahn stated there are 30 rendering plants in Canada that are inspected annually, and a self-assessment study performed by the Canadian Food Inspection Agency (CFIA) on the risk of BSE in Canada concluded a low to negligible risk existed. The CFIA commissioned the University of Guelph to perform a cost-benefit analysis of options to rendering, which was due at the end of November.
“My opinion is that the essential role of the rendering industry as a safe, environmentally acceptable means to dispose of animal by-products needs to be better understood,” Kahn commented. “This requires leadership and maybe self-promotion.
“The public needs to be aware and understand that the agricultural industry produces waste and the rendering industry is a integral part of the system to ensure environmental protection and food safety,” she concluded.
Following was Dr. Lisa Ferguson, USDA/Animal and Plant Health Inspection Service (APHIS) Transmissible Spongiform Encephalopathy Working Group, who clarified that, “BSE is not scrapie is not CWD! These are each unique diseases.” She discussed the various activities of the group, including surveillance programs for the three diseases, and stressed that the FDA’s advance notice of proposed rulemaking further examining the feed ban is a “way to open up a discussion.”
Stephen Woodgate, Proper de Mulder Ltd., United Kingdom, recapped the situation in Europe. He said a significant amount of mammalian rendered fats are combusted in steam boilers and that the rendering industry was a “white knight” during last year’s foot and mouth disease outbreak in the United Kingdom.
Kopperud rounded out the morning’s session with an eye-opening discussion on agro-terrorism.
“It is not a matter of ‘if’ it’s going to happen, but ‘when’ it’s going to happen,” he stated. “The threat is real.” He told renderers to think about what it would take to shut their company down and take steps to prevent it, and to ask customers and raw material suppliers what they are doing about biosecurity. Kopperud said over 30 pieces of security legislation have passed in the past year and that in the future, FDA will require renderers to register as a “food processor.” He recommended that renderers examine a comprehensive biosecurity checklist produced by the American Feed Industry Association, which is available on the Internet at www.afia.org.
International Arena
The afternoon discussion began with Dempsey’s second presentation of the week on tallow. She stated that the oleochemical industry looks at tallow properties differently than the feed industry, and that there will be much confusion as EU member states will implement the new animal by-products regulation as they see fit. Presently, the assumption is that U.S. tallow will fall under Category 2 of the regulation.
Rudbeck was up next with a glance at the global market, including the decline of U.S. tallow trade. He said that U.S. tallow once encompassed 60 to 70 percent of world trade; now that number is closer to 50 percent. The outlook is good in Egypt, though, where imports of meat and bone meal doubled in 2001, and had already doubled again in the first half of 2002. Rudbeck said the country prefers their material in bags. He encouraged all NRA members to join the International Market Development Committee (IMDC), even if they don’t export.
“Exports benefit the whole of the industry by disappearance of product,” Rudbeck stated.
Alberto Celis, NRA regional director, Latin America, recapped activities in the region, which included organizing or participating in eight seminars; a visit to U.S. renderers by two trade teams; and a successful second Latin American rendered products nutrition conference.
“There is a better understanding of the nutritional and sanitary status of rendered products in the region,” Celis commented. “I will not give up on education.” He invited everyone to the next Latin American nutrition conference to be held August 18-23, 2003, in Cancun, Mexico.
Neville Chandler, NRA regional director, Europe, Middle East, and Africa, rehashed the EU animal by-products regulation, and presented a gloomy report on exports, showing that during the first six months of 2002, exports to Europe are down dramatically compared to the same time last year. He emphasized the importance of Egypt, including tallow, which is used in soap manufacturing. Chandler believes that Nigeria is another promising region for exports, and that U.S. renderers should not give up on developing markets, even though they may require more work in niche areas, such as providing products in drums or bags, or arranging financing.
China is the best opportunity in Asia, according to NRA Regional Director Dr. Yu Yu, especially providing meat and bone meal as a fish meal replacement. He said 80 percent of aqua products are produced in China, which uses one million tons of fish meal annually. Another growing market in the region is for tallow in soap production, specifically transparent soap. China used 300,000 metric tons of tallow in soap manufacturing in 2001, of which 92 percent was imported. Currently, Australia has a stronghold on the China market for tallow, with Canada’s share increasing.
Committees Tackle Concerns
Committees met on the third day of the convention, beginning with the Association of American Feed Control Officials (AAFCO) Taskforce, where Kevin Custer, American Proteins, recommended that there be more renderer representation at AAFCO meetings. The Communications Committee followed, where it was mentioned that The Original Recyclers book is seven years old and is in need of being updated.
“We need to get a story out that tackles current issues,” commented Don Franco, NRA vice president, Scientific Services. “We have to tell our story. The quicker, the better.” The committee asked Franco to draft a proposal on what it would take to assemble a new book.
The IMDC met next, where Yu distributed preliminary shrimp feeding trial results and informed members that China’s tariffs will change January 1, 2003, with yellow grease dropping to a 16 percent tariff and 17 percent value added tax (VAT) and feather meal declining to a 12 percent tariff and 13 percent VAT. A heated debate followed over the suggestion by Yu to change “poultry meal” to “poultry meat and bone meal” in order to take advantage of lower tariffs.
“We need to change the tariff, not the name of our products,” said Rob Jones, West Coast Reduction. “We need to call it what it is and go to the government to make changes [to tariffs].” Renderers in attendance agreed.
Board Convenes, Colleague Saluted
The NRA Board of Directors gathered on the last day of meetings to address business. Cook recapped the association’s activities over the past year, including participation in the farm bill and the battle to ensure rendered products are included in the energy bill as a feedstock used in the production of biodiesel. He stated that a replacement for Rudbeck, who is retiring in March 2003, is underway and should be in place by February, and that a focus over the next year will be on increasing NRA membership.
Franco gave his last presentation, as he is retiring at the end of the year, telling all, “It was a pleasure to serve you.”
Rudbeck recognized Col. Kwan-Yong Kang, who served as NRA’s Korea representative from 1980 until his resignation in July, and appealed for greater participation in the IMDC; currently 20 of the 43 NRA member companies contribute to the committee. He said that funding from the Foreign Agricultural Service was $1.4 million for the year, but that in order to receive these monies, industry needs to support the international arena with matching funds, either by sponsoring overseas visitors, traveling abroad, or other activities related to international trade. NRA has the necessary forms for members to show contributions.
As this was his last convention too, Rudbeck thanked everyone for the strong support over the years.
During the gala dinner that evening, several colleagues honored Franco for his contributions to the association and industry.
“We didn’t hire Don,” said David Evans, former NRA chairman. “A higher power brought him to us.
“He became us – a renderer,” Evans continued. “We thank you. We love you. And we have no plans to leave you in peace.”
Next year’s convention is scheduled for October 21-25, 2003, in Scottsdale, AZ.
December 2002 Render