By Tina Caparella
Renderers have long been battling with the “b” word – bovine spongiform encephalopathy, or BSE. Well, a new “b” word has come along that is getting a more positive reception – biofuels.
At this year’s spring meeting of the National Renderers Association (NRA) in April, a newly formed committee drew a large crowd and much participation. And while biodiesel was addressed, as well as burning rendered products such as yellow grease and tallow, one type of process using animal fats piqued everyone’s interest.
Jeff Webster, Tyson Foods, explained how the company is partnering with ConocoPhillips to transform animal fats into “renewable diesel,” a product that is chemically diesel fuel.
“It is way different than anything on the market now,” Webster remarked. He went on to say that renewable diesel can be transported in the same way as petroleum diesel, can be blended with biodiesel, and the preferred feedstock for the process is animal fats, unlike biodiesel where the preferred feedstock is soy oil. Webster added that without the dollar-per-gallon tax incentive, producing renewable diesel would not be economical since 75 percent of the operating cost is feedstock price, much like biodiesel. Tyson uses a 20 percent biodiesel blend in its fleet and is the largest user of biodiesel in Arkansas, according to Webster.
Steve Kopperud, Policy Directions, reported to the NRA Biofuels Committee on the growing national interest in biofuels – 169 pieces of legislation for alternative fuels/biofuels has been introduced in Congress.
“The energy title is going to be an incredibly contentious part of the farm bill,” Kopperud commented.
Biofuels Committee Chairman Chuck Neece, Central Bi-Products, explained the various requirements to register with the Environmental Protection Agency (EPA) for fuel production and the Internal Revenue Service for tax credits, and said the National Biodiesel Board is taking the position that if a fuel is only blended for export, it should not qualify for the excise tax credit. Neece reported that some feedstock, such as palm oil, is being imported into the United States, blended, and then exported to receive the excise tax credit.
Todd Moser, Rothsay, reported that biofuels activity in Canada is picking up, beginning with the government’s mandate in late 2006 of five percent renewable fuel in gasoline by 2010, and two percent biodiesel in diesel fuel by 2012, although the Canadian Renewable Fuels Association (CRFA) is pushing to change the mandate date for biodiesel to 2010. Moser said the CRFA welcomed the Canadian government’s recent announcement of a 20 cent per liter producer’s federal credit, provided the federal budget gets approved.
The biofuels discussion spilled over into the NRA Legislative Committee meeting where some voiced their concerns of the implications the various new fuel technologies for biodiesel and renewable diesel will have on the federal tax incentives and possible competition from lower quality and cost feedstocks like palm oil or jatropha. After some debate, the committee agreed that any technology that opens up new uses for rendered products is good and voted for the NRA to have a feedstock, technology (process), and application neutrality with regards to biofuels tax incentives.
Other NRA committees also met, addressing environmental issues and product safety. Dr. David Meeker, NRA Scientific Services, informed Environmental Committee members that the California Assembly is considering a bill to allow, at the governor’s discretion, composting of deadstock in cases of emergency. The bill is a result of last summer’s heat wave in which tens of thousands of livestock died and had to be hauled to landfills due to a lack of rendering capacity. The Pacific Coast Renderers Association is working at limiting the scope of the bill, but Michael Koewler, Sacramento Rendering, commented that “it’s a battle.”
Meeker also addressed an EPA revision to the National Ambient Air Quality Standards for ozone. Currently the standard is 0.084 parts per million (ppm) averaged over eight hours. EPA is recommending a range below 0.080 ppm to 0.060 ppm for the primary ozone standard, which Meeker said would mean new non-attainment areas that could impact animal agriculture (see “Ozone Regulation Could Impact Animal Agriculture”).
Humphry Koch, West Coast Reduction, summed up for the committee the current circumstances surrounding Canada’s new enhanced feed ban due to take effect July 12, 2007: “It’s really not a pretty situation.” He said complying with the ban will be costly and is being dealt with on a regional basis. For example, in the west, specified risk materials will be rendered and taken to landfills or, eventually, used in cement kilns. Meeker passionately remarked that every pound of animal protein that is taken out of the food chain because of “perceived” risk is immoral when there are people around the world who are starving. He explained that smaller animal protein supplies lead to some fish used for human consumption being diverted to produce fish meal.
Neville Chandler, NRA regional director, reported that ruminant meat and bone meal will never again be fed to animals in the European Union (EU); meanwhile, it is being determined if other meals will be used in animal feed once a detection level is set. He said that EU regulation 1774 is being rewritten due to so many amendments, but at a slower pace than before because animal agriculture is surviving “just fine” without animal proteins. Currently, meat and bone meal is being burned in the EU, either in cement factories or for generating electricity.
Wrestling with the International Arena
Exports of U.S. rendered products has been a challenge since the discovery of BSE in the United States in an imported cow in December 2003. Markets have closed, reopened, and closed several times, including in mid-2005 after two more cases were announced, this time in native animals. Over the years, the NRA staff and International Market Development Committee (IMDC) have worked diligently to reopen markets and decided to hold this year’s strategic planning meeting in conjunction with NRA’s spring meeting to allow more interaction with the rendering industry. The daylong event began with Kent Swisher, NRA International Programs, stating that the opportunity continues to be in fish meal replacement and now, biofuels. He explained that Mexico took half of all U.S. exports in 2006, Korea is a major market for Canadian inedible tallow, and the EU is exporting poultry meal at an increased rate by aggressively approaching other countries with bilateral agreements. Swisher warned that those countries are beginning to require the United States to meet the same EU requirements.
In order to educate both end users and regulators about rendered products, NRA recently participated in an government-led international meeting in Brazil with over 130 in attendance (see “International Report”).
“People wanted to hear about rendered products,” Swisher said. “The BSE issue didn’t even come up. They need animal proteins, but we’re stuck at the government level.”
German Davalos, NRA regional director, highlighted the Latin America region, repeating the success in Mexico where a protein meal export record was reached last year and signs show a continued increase in 2007. With fish meal prices over $1,100 a metric ton, Davalos emphasized the opportunities in fish meal replacement and said the aquaculture growth to 2020 in Latin America is projected to be 20 percent.
NRA Regional Director for Asia Dr. Yu Yu discussed the challenges renderers face in his part of the world, including all poultry by-product meal being tested because of a shipment from Europe that contained ruminant meat and bone meal. He also emphasized the importance of the aquaculture industry and said several fish feeding trials were currently underway using non-ruminant protein meals.
One difficult market for U.S. renderers is China, which wants a marker for industrial use of tallow and yellow grease. However, the red dye being considered is not appealing to China’s soap industry because it cannot be removed and thus creates red soap. Yu is escorting a Chinese trade team to the United States in June, but warned it may be the last trip if the country does not reopen its borders to U.S. rendered products.
Yu provided an interesting bit of news on China’s yellow grease industry, where locally produced yellow grease is selling for about U.S. $506 metric ton, despite that it’s not a very clean product. The grease is used mostly as a fuel, sometimes being called biodiesel. Because of this activity, China is planning to issue a biodiesel standard this year.
Neville Chandler, NRA regional director, spoke about the markets in Europe, the Middle East, and Africa. Turkey imported about 150,000 metric tons of tallow for use in soap in 2006, a 20 percent increase, but will unlikely use tallow for feed due the country’s desire to become an EU member. In Egypt, there is currently a ban on poultry meal imports but the borders have just reopened to live chickens from the United States.
“This is the sort of prejudice you come across in these areas,” Chandler commented. Egypt is importing about 120,000 metric tons of meat and bone meal from Argentina and Uruguay because they need protein meals. Despite the struggles, Chandler feels Egypt is still an important market for U.S. renderers.
Dr. Bob Bokma, U.S. Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS)/Veterinary Services, provided an in-depth status of current export markets and their requirements. APHIS assigns approved export facilities and approval numbers for many countries. For Indonesia, some 46 U.S. facilities are approved for export, and the country’s position is that plant-by-plant inspection is necessary and specified risk materials be removed.
There are 102 U.S. facilities approved for export to China, which also issues its own approval number that is required on documentation. Bokma said negotiations are underway with China for industrial tallow and yellow grease to be used in biodiesel and soap.
For exports to Vietnam, APHIS does not have a special inspection program, which it prefers. However, Vietnam is requiring polymerase chain reaction, or PCR, testing of rendered products due to another country’s meat and bone meal being mislabeled. APHIS’s position is that U.S. rendered products exported to Vietnam are the same safe, quality products used domestically in the United States.
Although APHIS does not issue approval numbers for Canada or maintain a list of exporters, Bokma echoed Koch’s sentiments about Canada’s impending enhanced feed ban: “It’s a train wreck coming down the road.”
Research Remains Vital
Mixed among the discussions on biofuels and international markets was research. The Fats and Proteins Research Foundation (FPRF) took time to sort through numerous research proposals, hold their board meeting, and introduce some of the researchers and their projects via videoconference from the Animal Co-Products Research and Education Center (ACREC) at Clemson University.
FPRF Chairman Kevin Kuhni, John Kuhni Sons, complimented the formation of ACREC at the foundation’s board meeting, saying the center provides enhancement and leverage to the rendering industry’s research arena. July 1, 2007, will begin the second year of a three-year commitment to the center, which added nine research projects to its program at the meeting.
To illustrate the types of research projects being completed at ACREC, Center Director Dr. Annel Green passed around samples of plastic produced with blood meal at the center. Kuhni praised the results, saying, “This is just the tip of the iceberg.”
Sergio Nates, FPRF president, reported that there are currently 10 on-going research projects outside of ACREC, and that two new projects were approved by the research committee: “Bioavailability of amino acids in feather meals for aquaculture species” and “Replacement of fish meal with mixed rendered animal protein in practical diets for Siberian Sturgeon.” Nates also announced new FPRF members, including Meat and Livestock Australia, the European Fat Processors and Renderers Association, three large international aquaculture producers, two feed mills, and one biodiesel company.
J.J. Smith, Valley Proteins, commented that renderers today are enjoying increased prices and uses of rendered products because of the many FPRF projects completed over the years, such as animal fat inclusion in biodiesel and poultry by-product meal as a fish meal replacement. He highly encouraged those who are not members of FPRF to join to help the foundation continue its research successes on behalf of the industry.
The board of directors meeting concluded with Dr. Gary Pearl, FPRF past president, being presented with a lifetime honorary membership in the foundation.
“You’ve left your legacy at FPRF and we want to recognize that FPRF will benefit from the work you have done over the past 13 years,” Kuhni remarked.
FPRF’s Emerging Issues and Opportunities Symposium focused on introducing the many researchers from Clemson who are working on behalf of the rendering industry. Videoconference presentations were given on the various projects, such as biodiesel synthesis, currently underway or just completed at ACREC. Tony Ostrowski, Oceanic Institute, wrapped up the symposium with an in-person report on the increasing aquaculture research being done in Hawaii.
The four-day industry meeting wrapped up with the NRA Board of Directors gathering, where the Pacific Coast Renderers Association and NRA Eastern Region contributed a total of $26,000 to the IMDC. The Eastern Region also donated $4,000 to FPRF, with J.J. Smith challenging all renderers, including packers, to “dig down” and contribute to the foundation.
“We don’t know when the next bullet is going to come.”
NRA and FPRF will hold their next meetings October 22-26, 2007, in Miami, FL.
June 2007 Render