By Tina Caparella
The heat was on, not only outside, but also inside where attendees at the Fats and Proteins Research Foundation (FPRF) and National Renderers Association (NRA) annual meetings addressed some hot issues affecting the rendering industry. FPRF began the weeklong session, which took place in October in Phoenix, AZ, where record high temperatures were set all week.
At the foundation’s board of director’s meeting, Gary Pearl, FPRF president, explained that several industry and research representatives would be promoting rendered products at various universities in the coming months via seminars to agriculture students and departments. He said the program would focus on about 20 educational institutions throughout the country, with presentations from Dr. Fred Bisplinghoff, Dr. Bud Harmon, Dr. Terry Kopenstein, and other notables in the field of nutrition research. Pearl added that FPRF currently has 19 on-going research projects, with two additional projects focusing on the use of rendered fats in comparison with soybean oil in broiler rations and phosphorus digestibility characterization in rendered animal protein ingredients and fish meal initiated in the very near future. He emphasized that all projects should be completed within the next year, with the exception of a project to develop an immunoassay to detect ovine tissue in rendered products.
Clemson University’s Animal Co-Products Research Institute found support from attendees, including Ross Hamilton, Darling International, Inc., who recently toured the facility. J.J. Smith, Valley Proteins, Inc., believes the institute would be beneficial in obtaining research funding that FPRF may not have knowledge of or access to and FPRF Chairman Don Davis, Central Bi-Products Company, summed up a consensus that the research center is an “exciting opportunity.” Despite the enthusiasm, Michael Langenhorst, Anamax Corporation, wants to ensure that the research projects conducted at Clemson are timely and completed within a set time frame. Lewis Atkinson, Meat and Livestock Australia, recommended giving the university a context in which to operate. He added that it’s important research results be placed into industry use.
The second day featured FPRF’s popular Emerging Issues and Opportunities Seminar. Martin Kleber, Lurgi PSI, Inc., opened the session with a discussion on Lurgi’s biodiesel process. He explained that glycerin is an important by-product of biodiesel and that the company has used almost all vegetable and animal fats and oils in the testing of their process with success. Kleber described the processing steps of the equipment. First, the “dirt” in animal fats/used oils is removed through filters before the product enters the plant; then the oil is sent to storage for settling before continuing on to a preesterfication/degumming process.
Kleber described a 2.5 million gallon skid platform plant now being built that is portable. He said the scaled down version of the high-yield process is low in capital costs, only requires two people to operate it, and designed to be added on to an existing plant. In 1998, Huish Detergents, Houston, TX, began utilizing Lurgi’s biodiesel process using tallow and palm oil as feedstocks.
Klemens Rethmann, Saria Bio-Industries AG and Company, Germany, gave a renderers perspective on the hierarchy value of animal by-products. He presented a brief history of his family’s rendering company and explained that Saria has had to follow various regulations depending on which country their 36 processing plants are located in – Germany, France, Poland, Austria, Czech Republic, or Spain.
Rethmann stated that the “highest possible value of animal by-products is in human consumption” – what the United States considers raw material is eaten in most parts of the world. He went on to say that by-products used in animal feed is next down the value chain, followed by pet food, fertilization, energy, and waste. Rethmann shared his opinion of European Union (EU) regulations, including new legislation that would make it possible to use animal proteins in feed but only under very limited conditions and if the current feed ban is lifted in 2005 (see “International Report”).
“Rendering is a service for the society,” he commented. “Rendering, unfortunately, is under the rules of societies and states, and unfortunately, these rules are made on the basis of political science.”
Going down the hierarchy value list, Rethmann discussed the use of fat as a substitute fuel, which Saria uses in their steam boilers. In Germany, subsidies are available for biodiesel, making it economical to produce, and animal protein meals are used as a substitute combustible in coal-fired power stations and cement plants.
“You should take care that nobody regards your product as waste,” Rethmann recommended. “Learn from the Europeans’ mistakes.”
Brian Appel, Changing World Technologies (CWT), began by stating, “This is an industry clearly under attack.” He presented detailed information on the company’s thermo depolymerization and chemical reformer process, which transforms any carbon-based waste material into an oil, gas, or solid. He described CWT’s five-stage thermal process, which is a closed system with virtually no emissions. A pilot plant is in operation in Philadelphia, PA, and a Butterball turkey plant in Missouri has proven successful. Additional plants are under construction in Denver, CO, in cooperation with Con Agra, and in Italy.
After a brief break, John Starkey got things going again with a presentation on the U.S. Poultry and Egg Association’s Poultry Protein and Fat Council (PPFC). He described the dues structure, which is assessed at 75-cents per ton, and the various research and promotional projects the dues are used towards, including one research possibility of turning chicken feathers into an ingredient in plastics. Two other projects currently underway focus on the utilization of poultry by-product meal in diets for hybrid striped bass production and guidelines for storage of poultry-derived biofuels and petroleum mixtures for industrial boilers.
Starkey explained that the PPFC is initiating a detailed feather meal analysis to provide more complete nutrient information that addresses and identifies variability concerns. He described the issues the council faces as increasing export markets, the adoption of an environmental policy statement, and the Environmental Protection Agency’s (EPA’s) effluent limitation guidelines, not only for the poultry industry but for recyclers of poultry products.
“It’s not looking as positive for renderers as originally thought,” Starkey commented. He demonstrated how the council’s literature review program works, which is available on the Internet at www.poultryegg.org. The program, which is ideal for nutritionists, contains Association of American Feed Control Officials (AAFCO) product definitions, product compositions, processes used, a list of research papers and a review of those projects, and a by-product category with brief abstracts.
“It’s been a very successful marketing tool,” said Starkey, who recommends a similar program for the rendering industry.
John Dupps Jr., The Dupps Company, gave an overview of The Terminator, a thermal oxidation system Dupps has agreed to sell in the United States for the European manufacturer. He explained it treats cooker vapors and high intensity odors from rendering systems by oxidizing at high temperatures. The hot gases from the oxidation process are then used to generate steam in a waste heat boiler.
“This is considered best available technology in Europe,” Dupps commented. No condenser is required for the cooker vapors because they are treated in vapor state and no wastewater treatment is necessary since no condensation is generated. He added that the company is currently comparing the energy usage of this system with a conventional rendering plant.
Max Morley, Pinches Industries, New Zealand, wrapped up the morning session with a review of the company’s airless drying and superheated steam system (see June 2003 Render). He stated that Pinches is in the development stages of an alternative rendering system that takes the principles from the dryer and applies them to a rendering system, a project in partnership with Meat New Zealand and Meat and Livestock Australia.
Following a lunch break, Dr. Giles Shih, Bio Research International, spoke on his recent research work on enzymatic prion degradation, followed by Phil Kemp, Australian Dehydration Technologies (ADT) Pty., Ltd., who discussed ADT’s modified low temperature system. Dr. Dave Higgs, Canada Department of Fisheries and Oceans, presented research results on novel products derived from the co-processing of animal carcasses and offals with oilseeds.
Dr. Dominique Bureau, University of Guelph, Canada, offered a “hodgepodge” of information on aquaculture. He explained that the value of the fish determines the quality of feed used – if the price of the fish increases, fisheries are willing to spend more money on feed. Bureau presented research that showed fish oil in feed formulations could be replaced with animal fat and stated that soybean oil is a “minor” player in high quality trout feed.
Bureau described the opportunities in aquaculture feed production: 6.9 million metric tons (MMT) of carp feed; 1.57 MMT of shrimp feed; and 1.04 MMT of marine finish feed. Other research results he presented showed rendered products as a good replacement for fish meal in aquaculture diets and research conducted in Australia determined good results when using meat meal in shrimp diets. Bureau recommended renderers explore opportunities in aquaculture.
Wrapping up the day were several brief overviews from various industry representatives. Glen Carter, Agri Stats, Inc., explained that the company is overhauling a rendering report completed three years ago, which is due out within the next several months. The report covers raw material costs, plant cost, yield, manufacturing efficiencies, and sales revenue performance.
Dick Talley, Biosource Fuels, a joint venture with Kenosha Beef and Resodyn Corporation, described the company’s biodiesel technology. He explained that the rendering industry has an advantage going into biodiesel production because the feedstock cost is low. Talley recommended those venturing into biodiesel choose technology that won’t limit the production to one feedstock and that is cost effective. Pearl added to Talley’s discussion by stating that as an industry, renderers must keep feedstock neutrality in front of legislature and regulators.
“The most powerful thing we can promote is renderers have the least cost feedstock available for biodiesel production,” Pearl stated.
Drs. William Marmer and Rafael Garcia, U.S. Department of Agriculture (USDA), Agriculture Research Service, Eastern Regional Research Center, gave an update on the center’s fats, oils, and animal by-products projects, which includes future research on using rendered products as a fermentation media. Dr. Davis Clements, Renewable Products Development Laboratories, Inc., finished the day with an overview of energy production from rendered products. He stated the ideal alternative fuel should have high energy content and density, is easy and safe to transport, nontoxic, and is low in energy cost. Clements described research being conducted to convert fats and oils to synthetic gasoline and a project using meat and bone meal as a direct combustion in a moving grate burner or a fluid bed combuster.
Committees Kick Off Convention
The NRA began the first morning of their 70th Annual Convention with several committee meetings. The Environmental Committee gathered first, with an update from Deb Atwood and Jennie Meeker, Capitolink, via phone. Atwood stated that although EPA’s spill prevention rule became final in July 2002, the agency is willing to rewrite Subsection C so it pertains more to animal fats and vegetable oils. Hope is that work will begin on the rewrite in February 2004, after EPA gathers information on current regulations and guidelines on these products and maintenance specifications for edible oils.
“They [EPA] are not looking to duplicate regulations that are covered by other agencies,” stated Meeker, who addressed effluent limitation guidelines next.
“Nitrogen seems to be the key parameter at this time,” she continued. Current deadline for a final rule is December 31, 2003, but there is discussion it may be extended to February due to new information emerging.
The NRA Legislative Committee opened their meeting with a discussion on the energy bill, where equality for biodiesel feedstocks is receiving support from many representatives, including Chairman Bill Thomas of the Ways and Means Committee. Steve Kopperud, Policy Directives, commended the renderers for their recent Congressional Fly-In in June that educated legislatures on the fact that biodiesel can be made from recycled cooking oils.
“That investment is paying off royally,” Kopperud commented. “We were able to get a significant member of the House to contribute by making a personal call to Chairman Thomas asking for equality, only because he had talked to Valley Proteins back in June.” He also gave credit to California renderers who have kept Thomas informed on the biodiesel equality issues.
Kopperud then addressed the Food and Drug Administration’s recently released report on industry compliance with the ruminant feed ban (available on Render’s Web site at www.rendermagazine.com). He stated that the small number of non-compliance issues deal primarily with paperwork not filed properly or not filed within the allotted timeframe and are usually corrected within 30 days.
Discussed next was USDA’s Animal and Plant Health Inspection Service (APHIS) certification for companies exporting rendered products to the EU. Kopperud said material must be tested for certain microbiological strains before certification can be received. Michael Rempe, Swift and Company, encouraged renderers who export to the EU to get inspected and certified from APHIS as soon as possible to meet the December 31, 2003, EU-imposed deadline. David Kirsten, National By-Products, LLC, commented that protein blenders are not required to test by APHIS; only paperwork is required stating that Category 3 (fit for human consumption) material is used and what is referred to as specified risk material (SRM) is removed.
With regards to a discussion on properly handling of animal disposal in the event of a disease outbreak, the consensus among committee members and meeting attendees was that the industry needs to be proactive with the U.S. government to establish strategies to handle disposal. The committee decided to conduct an educational workshop for government agencies and is asking various rendering companies to participate.
“I think what we need to keep pushing is that rendering is the solution,” commented Humphry Koch, West Coast Reduction, Ltd.
Opening Session
NRA’s convention got underway in the afternoon with an opening address from Koch, NRA chairman, who commented that the association’s membership now includes most independent renders and packer renderers (see “From the Association”). Following Koch was Dennis Avery, Hudson Institute, who gave an insightful and thorough presentation on sustaining both plants and people, the moral challenge of the 21st century.
Andy Bennett, vice president, Australian Renderers Association (ARA), gave a light-hearted presentation on the land down under, which suffered its worst drought last year causing farmers to depopulate their herds quite significantly. He said farmers are now beginning to restock.
A snapshot of the Australian rendering industry showed 120 rendering plants “scattered throughout Australia,” employing 2,500 people. Sixty-eight percent of the tallow produced is exported along with 36 percent of meat and bone meal production. Bennett stated that a number of Australian renderers are examining biodiesel and ARA has doubled its membership in the past six years to 111 members, which includes 77 active, 24 associate, and nine international/honorary members.
Bennett shared issues that Australian renderers face, including skyrocketing insurance rates due to two large rendering plant fires two years ago; a rebounding currency rate; and various regulatory bodies, especially environmental.
Doug Ward, president, European Fat Processors and Renderers Association, covered bovine spongiform encephalopathy (BSE) statistics and a new EU regulation that would allow meat and bone meal back into the feed chain under very strict conditions (see “International Report”).
“I don’t have any doubt that meat and bone meal in Europe will return to the marketplace,” he stated. “It’s not a question of if, but when.” He encouraged the industry to lobby worldwide organizations for the continued use of safe products.
Industry Forum
The second day of the convention focused on industry issues, beginning with an informative and well-attended presentation by Dr. Tom McGinn, North Carolina State Department of Agriculture and Emergency Programs. He shared North Carolina’s animal emergency plan, which includes sensitive information on all state animal producers and renderers that is protected from the Freedom of Information Act.
“We cannot be prepared if we do not know where people are, where facilities are, how to contact them, what their capacities are, all the kinds of things we need to know in a decision and not be out trying to gather during a decision,” McGinn stated. “So having protection of that in your state is critical.” He warned attendees to have a “plan B” also in case “plan A is taken out,” providing as an example the destruction of 28 fire trucks that responded to the World Trade Center disaster.
McGinn went on to say that over 170 million animals that feed U.S. citizens are vulnerable to terrorist attacks and a simulation showed that even if a national “stop movement” is ordered on day eight of a disease outbreak, over 236 million animals would have already been affected and destroyed.
“You [renderers] are the problem solvers as it relates to large animal emergencies,” McGinn commented, but also warned renderers to be sure their businesses are not susceptible to terrorists, which includes animal activists. A Terrorism Threat Vulnerability Self Assessment Tool is available on the state’s Web site at www.ncagr.com/bioterror_assesment.htm to help determine how vulnerable a business is to terrorism.
McGinn told attendees that state regulatory personnel need to be educated on how the rendering industry can help in an animal emergency, including plant capacity and hours of operation. He compared pros and cons of disposal options, stating that costs will help determine the best method of disposal, and encouraged renderers to look into pre-awarded disposal contracts with their state agriculture department so everyone is prepared when an animal disease crisis develops.
Switching gears, Len Condon, Altria Group, addressed international trade, stating that the global problem with trade is that there is too much government intervention in agriculture. He explained the progress and objectives of the Doha Round of trade negotiations, predicting, “We’re going to go further than we did in the Uruguay Round.” Condon pointed out that the global average of agriculture tariffs is 62 percent (the U.S. average is 12 percent), while tariffs for non-agriculture products averages four percent globally.
Dr. Graham Clarke, Agriculture and Agri-Food Canada, spoke to a packed room on the BSE situation in Canada. He explained that the investigation determined the one cow in Canada diagnosed with BSE was an indigenous case born prior to the ruminant feed ban imposed in 1997 that was possibly exposed to contaminated feed from an imported U.K. cow. Clarke credits the risk management measures put in place in Canada prior to the discovery as the reason for the disease not being found in other ruminants. An estimated $11 million was lost each day in the six months following the BSE discovery, and agencies and groups that usually don’t deal with agriculture issues found themselves involved with the crisis, such as human health, foreign affairs, and environmental because of the potential affects on those agencies.
“The BSE crisis has definitely had an impact on the entire rural economy, not just the beef sector,” Clarke stated, adding that many industries lost export markets besides beef producers, including renderers, pet food manufacturers, feel mills, and packing plants.
“We have not had any crisis of consumer confidence in the beef industry at all; quite the opposite in fact,” he commented. But the industry has had to restructure and continues to do so.
“Quite clearly we’re not going to go back to May 18,” Clarke said. “Certainly the rendering industry has had to restructure and has done a very admirable job of that.” Policy changes will also have to be done, including removal of SRM from animal feed.
Dr. Andrea Morgan, USDA/APHIS, discussed the United States’ reaction and collaborative efforts in the wake of the Canadian BSE case and the U.S. government’s own efforts in ensuring the country remains BSE-free. She explained that in 2003, over 20,000 suspect cattle have tested negative for BSE, with a goal of 40,000 in 2004. By international standards, the United States only needs to test 430 animals.
Going International
The afternoon session addressed international markets, beginning with German Davalos, NRA regional director, Latin America, who reported tallow imports in the region are up across the board, but the area lacks a demand for proteins. The goal is to increase NRA presence in Central America, the Caribbean, and South America, and focus on regulatory trade barriers and educate the region on animal proteins.
A brief summary on Mexico’s aquaculture sector showed a growing industry over the past 20 years, with 274,000 metric tons of aquafeed produced annually. Davalos said the hurdle is Mexico’s aquaculture industry has no experience using meat and bone meal in feed, but recently formed an aquaculture group within Mexico’s feed manufacturers association in order to be more competitive. He stressed that this industry needs to be educated on using cheaper alternatives, such as animal proteins, with similar results. Other opportunities in the region include the Ecuador shrimp industry and pet food market.
Neville Chandler, NRA regional director, Europe, Middle East, and Africa, highlighted Turkey, which, after Mexico, is the most important export market for U.S. renderers. But, he stressed, the country needs servicing. Turkey imported 130,000 metric tons of tallow last year with minimal contact.
“There is an opportunity in Turkey for feed fat which requires thinking outside the box,” Chandler commented, adding that poultry by-product meal also has prospects in the country.
Meat and bone meal exports to Egypt have been a challenge, Chandler said, due to acceptance levels of peroxide in the meal, but officials are currently in the decision-making process after attending a seminar in September. Egypt imports nearly all of its 140,000 metric tons of meal annually from the United States.
Chandler pointed out that the United States is exporting proteins to Russia, but that there is competition in the soap industry from Turkey.
“There are a lot of people in Russia, or rather Moscow, and they’re becoming more affluent,” he commented. The biggest challenge for U.S. renderers in the future is when the EU returns to the market because they will be producing single species material, it will be processed without SRM and at pressurized temperatures, and they will attack the aquaculture market.
“Make no bones about it, it’s what’s going to happen,” warned Chandler. Potentially, from 350,000 to 400,000 metric tons of product could be available from Europe. He stressed that information dissemination is more important now than ever before and U.S. renderers need to concentrate on new and developing markets.
Dr. Yu Yu, NRA regional director, Asia, said it’s been a “painful” year for Asia with the outbreak of severe acute respiratory syndrome (SARS), the detection of ovine material in meat and bone meal in China, Japan discovering its eighth case of BSE, a meat and bone meal ban in the Philippines, and the threat from vegetable proteins. Two bright spots in the region were Indonesia buying all the rendered products that could be provided and a strong growth in aquaculture.
Yu mentioned that SARS offered an opportunity for a hand washing campaign to promote the use of tallow in soap. Production increased 12 percent in the first half of 2003. He predicted the top markets for proteins in 2004 to be Indonesia, Vietnam, and China, with China remaining the biggest importer of fats in the region.
Vietnam is a promising developing market, Yu said, with feed production increasing 22 percent in 2002. He stated that Cargill is building its fourth feed mill in Vietnam, a $12.5 million investment. NRA currently has eight simple demonstration research projects in progress in the area to show the value of rendered products in feed formulations in many animal feeds.
Rounding out the day was the World Renderers Organization (WRO) Annual Meeting, where it was announced a report on TSE as a zoonotic disease has been widely distributed worldwide by the International Life Sciences Institute. Stephen Woodgate, PDM Group, said the paper is very well written. It was determined the WRO would develop a response to the report and submit it to the institute.
Business Matters
NRA Committees gathered the next day to address various industry issues. The AAFCO Committee met first, with Dr. Don Franco, Center for Bio-security, Food Safety, and Public Health, encouraging renderers to maintain a dialogue with their state feed officials to educate them on rendered products.
At the Communications Committee meeting, Chandler reported that the NRA Web site’s most popular page besides the home page is “Conventions,” followed by “About Us.” It was decided to post available convention presentations on NRA’s Web site and develop an ad hoc committee to gather information on the industry and distribute to those who need to be educated about rendering.
The International Market Development Committee (IMDC) began with a presentation on the Brazilian rendering industry by Dr. Claudio Bellaver, Embrapa, who is seeking his country’s participation in the WRO and investors in Brazil’s industry. He explained a 400,000 broiler-per-day rendering plant needs to be upgraded and trucks are needed for transportation of fats.
Mike Reiser, IMDC chairman, reported that Foreign Agriculture Service (FAS) funding for 2004 is at $1.5 million, a seven percent increase over 2003 and a 25 percent increase over the past five years. He added that industry contributions were $1.2 million, an all time high. Willie Brooks, USDA/FAS, added that program funding looks good for the next several years.
The last day of the convention wrapped up with the NRA Board of Directors meeting, where Tom Cook reported Dennis Mullane, Excel Corporation, is seriously ill. He recapped the association’s events this year, including the importance of the Congressional Fly-In.
“One thing I’ve discovered in Washington is that more and more people are learning about the rendering industry and it’s having a positive effect,” Cook commented. “We have made an impact, but we need to keep educating Washington lawmakers.”
After hearing reports from the various committees and electing new NRA officers for a two-year term (see “NRA and WRO Elect New Officers”), the meeting was adjourned until next year, when the association meets October 19-23, 2004, in New Orleans, LA.
December 2003 Render