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EMSLAND NEWS
Highlights National International People
Starch industry faces
challenges
Optimisation of starch
production
Newsletter June 2011
Emsland Group
participation in trade
fairs 2011
New colleagues

Summary
Foreword 3
Highlights
European potato starch industry faces challenges 4
National
Cultivation of starch potatoes after decoupling 5
Optimisation of starch production processes in Emlichheim 6
ERP implementation 7
International
People
Emsland Group participation in trade fairs 9
New colleagues 10
Craft certificates awarded by Chamber of Industry and Commerce 11
Employee service anniversaries 12
2

Foreword
Dear business partners,
dear colleagues!
In the previous issue of the Emsland News in June 2010 we mentioned the most difficult challenge that Emsland
Group met in the last 12 months. Unfortunately, at that time we didn't know that this could still escalate.
With only 70% of usual raw material quantities for the current business year 2010/11 and an extremely high
increase in demand for finished products in all business units, we found ourselves faced with an almost
unsolvable task.
We then consciously decided not to give up our position in the market and to find alternative solutions for our
customers. The additional tasks associated with this put heavy demands on all of us; we would like to take this
opportunity to once again thank all parties concerned for their efforts.
In an environment which saw high raw material prices in all areas of the industry, we were able to assert
ourselves in the market and are, as a result, currently and in the medium-term in a good position to participate
sustainably in the rapid rise in economic development.
With this issue of the Emsland News, we start our custom-made new and up-to-date communication with
shareholders, suppliers, colleagues, agencies, customers, friends and companions of Emsland Group.
We will, at shorter intervals of 4-6 times a year, report on the current situation in our group of companies in
order to ensure that you are all in a position to adapt your personal and business activities, in harmony with us,
in order to fit to the rapidly changing business environment.
On the following pages, you will see the most up-to-date theme reports presented by the responsible people
within Emsland Group.
Absolute command over all business processes, close cooperation between all partners, confidence and good
communication are, in our opinion, the key to the success of our consistently innovation-driven business.
We wish everyone success and are grateful for any suggestions.
Hubert Eilting Michael Schonert
3

European potato starch industry faces challenges
Current situation - after some turbulent months we now conclude there are enough starch and potatoes to
continue our factories during current inter-campaign. Although it has been impossible to supply every customer
with the requested goods we did the utmost to supply regular customers through re-allocation of quantities and
purchasing of additional starches on the free market.
Depending on weather conditions during summer, the start of the next potato campaign is now scheduled for
August 1 st , which is two weeks earlier than usual. Most probably this will reduce delayed deliveries and allow us
to catch up towards regular supply.
Forecast - when in 2012 the EU subsidy for starch potatoes will be discontinued this will likely result in a free
market with volatile prices but no longer production quotas. Since our farmers have the choice of cultivating
alternative, competitive crops such as corn for bio-ethanol production or feed, the cost price for potato starch
will increase by about 90 euros per ton with effect from 2012. Potato starch will therefore become less
competitive in some commodity driven market segments.
From that moment cost-price leadership and the ability to innovate and build partnerships with customers will
become crucial. For that reason we prepare manufacturing for flexible processing of other starches and have
already modernised our organisation. Further we will focus on markets with high added value such as food and
specialities. Also our distribution channels will be investigated and wherever possible costs will be reduced. In the
next article, the Director of Raw Materials Supply Mr. Wesselink provides information on how to secure
purchasing of potatoes during the next few years.
Innovations - within modern society developments related to ‘Bio-based Raw Materials’ innovations gain
momentum. For speciality products, Emsland Group continues to focus on environmental technologies and
replacement of synthetic oil based polymers. Production of bio-energy from side streams might also be of
interest. In the food sector, we focus on projects that allow our customers cost reductions on clean label starches
and on selected innovations realized in close co-operation with our customers.
H. J. Meijer
Director Innovation
4

Cultivation of starch potatoes after decoupling
The framework conditions for the cultivation and processing of starch potatoes will be given by the EU for the
last time in the current cultivation year 2011. This existing contract model between producer and factory will
expire in 2012, thus necessitating new agreements for the cultivation of starch potatoes after 2011.
A consequence of this so-called decoupling is that the starch potato sector will have to do without previous
compensation payments from the EU to the amount of approx. 90 €/t of starch. To ensure future supply of raw
materials, this additional amount will have to be obtained by Emsland Group. At the same time, we will continue
to work to increase the yields in agricultural holdings.
The preparations for all potato cultivation have to be carried out early, because either seed potatoes have to be
planted one year in advance for propagation, or those potatoes which have been ordered in advance in a
corresponding amount are needed. The basic seeds needed for this cultivation will in turn be propagated another
year in advance. Thus, the potato economy needs a lead time of between one and two years for quantity
planning. Because of this, planting decisions in the farms are not made in the short term, but instead have a
structural character.
For this reason, agricultural farms of Emsland Group had already made clear in 2010 that a perspective for the
cultivation of starch potatoes after the end of the EU regulations had to be demonstrated by winter 2010/11,
because planting decisions for 2012 will be taken at this time.
For Emsland Group, these demands from our producers meant that, in winter 2010/11, we had already offered a
quote for commodities which would only be produced after August 2012 and thus 18 months later. In light of
heavily fluctuating markets for agricultural commodities, such an early price quote can pose a risk.
During various conversations between representatives of the producers and Emsland Group, a suggestion was
put together for this situation, which takes into account the needs of both contractual partners:
On the one hand, a payment system for the producers should make successful potato production possible even
after 2011, while on the other hand, the price quotes should not prevent Emsland Group from being able to sell
their products competitively on the international market.
A compromise was achieved by offering the producers a minimum price that would cover basic cultivation costs.
This future (minimum) payment price for starch potatoes will be linked to the price for grain. If the price of grain
increases, the price of starch potatoes will also increase at the same time as a result of the linkage, which means
that potato cultivation remains interesting for producers in comparison to other cultures. If the price of grain
should sink again, the price of starch potatoes will also sink simultaneously, so that Emsland Group remains
competitive on the market. The "grain price dependent additional price" will be calculated after the campaign,
on the basis of a listed annual price average for feed wheat. At the same time, the entire contract system
comprises, as before, a programme of quality objectives promoting the supply of good quality raw materials.
One of the producer representatives who participated in the formulation of the future payment system is the
chairman of the producers' association for starch potatoes in Emsland, Mr Gebhard Bakker: "Due to the
uncertainties regarding the future development of starch potato cultivation after 2011, many of our colleagues
in the field last year reduced their investments in cost-intensive potato farming. It is vital that the payments
that Brussels had previously guaranteed as compensation are in future provided by the market, as without them
production will be significantly set back. The payment system developed together with Emsland Group gives
producers a new basis for calculation and a new outlook for starch potato cultivation after 2011. At the same
time, the model makes it possible for Emsland Group to sell their products competitively despite fluctuating
prices for agricultural commodities."
5

According to both contractual partners, the result of the discussions presents the basis for a successful
continuation of their cooperation, enabling customers worldwide to be supplied with potato starch products of
the highest quality at competitive prices, even after the end of the EU market regulations.
G. J. Wesselink
Director Purchasing Raw Material
Optimisation of starch production processes in Emlichheim
In 2008, the decision was made to optimise the entire starch process. In the preliminary planning stage, great
value was placed on the quality, hygiene and energy consumption of the systems which were to be newly
designed. This implicated the core removal of the wet starch, dismantling outdated machines, complete
renovation of piping and electrical wiring as well as the redesign of the control system and the entire pulp
dehydration system. Due to the campaign operation, there were only around 4 months available for the
renovation, thus the renovation measures were divided over a 2 year period.
Fine Fibre System:
Business year 2009/10 New construction of the fine fibre system and modification of the control system.
The new construction of the fine fibre system could in the first instance enable an additional yield of around
2000 to/a of starch. By bringing forward the changes to the control system, the staff could be trained in the new
conditions in order to ensure a smooth start in the second phase of system reconstruction.
Optimisation of wet starch:
Business year 2010/2011 Core removal of wet starch; reconstruction of extraction facilities; reconstruction of
sand separation in the extraction system feed; re-piping throughout all systems and renovation of the pulp
dehydration system.
In the course of the reconstruction, all old plumbing was removed. The entire concrete surface on which the
machines had stood previously was raised up by approximately 80 cm. The machine processes can now be
brought together, freeing up various pumps. As a result of the new plumbing, which has been implemented
entirely in stainless steel, it is now possible to reduce system pressure and thus save energy, as well as improving
hygiene conditions.
6

Complete layout extraction facilities
Today the plant processes approx. 5,500 - 6,000 tonnes of potatoes per day and at the same time as the yield
increased, the qualitative and hygiene conditions in the plant have been improved and approx. 1/3 energy has
been saved. By redesigning starch production and pulp dehydration, we were also able to significantly reduce
noise emissions.
R. Knoop
Coordinator Energy
ERP implementation
For about one year, Emsland Group has been busy preparing for the introduction of an ERP system. ERP stands
for Enterprise Resource Planning, and is an IT system for mapping operational processes. All processes are
integrated into one continuous system. The main reason for the implementation of this system is poor
integration, which cannot be improved significantly using the current IT systems.
The aim of the new design is to achieve more efficient, effective processes, more transparency and to improve
the competence of the organisation.
7

Current system landscape Target system landscape
Angebotsverwaltung
.NET
Absatzplan/
Statistik
Finanzplanung
Analyzer
Corporate Planer
Warenwirtschaft (Bitex)
- Vertriebsabwicklung - Produktionsaufträge
- Beschaffungsabwicklung - Qualitätskontrolle
- Lagerwirtschaft
Kartof
AS/400
Rohstoff-
Disposition
.NET
Waage/Rhstf
-Annahme
HSpro
EPN
.NET
Prod.steuerung
Dralle/ Excel
Berichte
Excel/ Access/
Dralle
Personal
- Zeiterfassung
- Lohnbuchhaltung
AS/400
Labor
- Endkontrolle
Instandhaltung
AS/400
PMS
Betriebsdatenerf.
Excel/
Access/ Schraml
Anlagen-/
Energiedaten
icontrol/Orbis/SPS
AS/400
Dokumente
Muster-
Intranet
versand
.NET
Markt/ Planung Beschaffung Produktion
Logistik/ Dokumente Buchhaltung
1) Intranet
- Qualitätskontrolle
- Verkaufsstatistik
- Rohstoffbeschaffung
- Frachten
- IMS
.NET, SQL, ASP
1)
- Qualitätskontrolle
- Verkaufsstatistik
- Rohstoffbeschaffung
- Frachten
- IMS
.NET, SQL, ASP
EVA
Verpackung
Logopak/
Elsa/ Paula
Provisionsabrechnung
AS/400
Buchhaltung (Schilling)
- Finanzbuchhaltung
- Kostenrechnung
Produktkalkulation
- Anlagenbuchhaltung
- Projektabrechnung
Excel
AS/400
ERP
CRM
Auftragsabwicklung
Absatzplanung
Produktentwicklung
MES
Material-
Management
Feinplanung/ -
steuerung
Anlagensteuerung
SPS1
…
Produktionsplanung
Beschaffung
Rohstoff-
Beschaffung/ -
Abrechnung
Qualitätsmanagement
Qualitätskontrolle
Leistungsanalysen
Anlagensteuerung
SPSn
Logistik
Bestands-/
Lagermanagement
Instandhaltung
Finanzen
Lohn- und
Gehaltsabrechnung
Controlling
Stammdaten Datawarehouse/
BI
Personaleinsatz
BDE /
Rückmeldung
Verpackung
Logopak
Rohstoff-
Annahme
HSpro
Finanzplanung
Corporate Planner
Zeiterfassung
Cash-
Management
Einkaufsplattform
Dokumentenverwaltung
Consense
Betriebs- und
Energiedaten
Modul
Isgus
S-Firm
Onventis
Orbis
Anwendung/ System
maschinelle Schnittstelle
(beidseitiger Transfer)
Over the last 14 months, a specification sheet was created on the basis of an analysis of the current situation
and the target concept. The specification sheet will describe future processes and define the system
requirements. Emsland Group will quickly decide on a system and a partner that will enable the best coverage
and connection.
Implementation will take place over several phases.
Implementierungsphasen
Verhandlung, Vertrag, Vergabe
Vorbereitung Implementierung
Kickoff
Erstellung Detailkonzept
Aufbau System, Tests
Aufbau Stammdaten
Rollout inkl. Schulung,
Go Live, Hypercare
Werk Emlichheim
Werk Kyritz und Wietzendorf
Werk Cloppenburg und Wittingen
Sicherstellung Effizienzsteigerung
2011 2012 2013 2014
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
25.03.
While developing the concept, we will determine how the processes described by Emsland Group will be mapped
in the system. Then follows the setup of the new system while development of master data takes place parallel
to this. Once the system is taken out of the testing phase, preparation for its roll-out can begin.
Due to its scope, the roll-out will take place in three phases. This will all take place in close cooperation with the
process experts at Emsland Group and with consultants from our IT partner. Emsland Group is thus building a key
user organisation with coverage of all departments and plants.
8

Emsland Group will not only implement a new system. In essence, this changeover can be seen as a means of
process optimisation. This requires good cross-departmental cooperation in order to move forward quickly.
T. de la Rie
Manager Process Management
Emsland Group participation in trade fairs
In 2011, an international presence is once again one of the prerequisites for a globally successful distribution
network. In 2009 and 2010, in addition to the important FiE (Food Ingredients Europe) Fair, Emsland Group also
discovered other interesting exhibitions in the food industry. Smaller - but no less efficient - fairs such as
Gulfood and SnackEx offer great potential for Emsland Group due to their specific character.
Thus our food sales team was already at Gulfood in Dubai in February 2011. This year, the biggest trade fair for
the food industry in the Middle East once again offered us the perfect platform for winning over potential
customers as well as securing our existing customers.
One month later, Emsland Group was represented at the internationally noted Snaxpo Fair in the USA. For the
first time, we went with our exhibition stand "across the pond". After all, Emsland Group certainly couldn't be
missing at the biggest snack fair in the world. With our wide range of flakes and granules - including potato and
pea starches - we presented undeniably high-quality key components for snack production and were able to
convince snack producers from around the world with new innovations and already well-established products.
Another snack oriented trade fair taking place this year is SnackEx in Barcelona. From 13 - 14 June, Emsland
Group will once again be presenting its diverse range of snacks, this time to a mainly European audience.
In order to continue to supply the important but highly competitive Asian market successfully, a continuous onsite
presence is essential. That's why food specialists from Emlichheim as well as our Asian agents will together
represent Emsland Group, first at Food Ingredients Asia in the Philippines in July, and then the SnackEx Asia in
September in the former Olympic city of Beijing.
Also our speciality team has planned a major trade fair participation in 2011. The ITMA textiles fair takes place
from the 22 - 29 September in the Spanish city of Barcelona. Over eight days, Emsland Group will present new
developments and established products from our textile range to an international audience.
9

The final appearance in 2011 will be at the same time our biggest trade fair. The Food Ingredients Europe is the
best known and most important trade fair in the food industry and will take place from 29 November to 1
December in Paris. It's a must for all suppliers in the food industry. Of course, Emsland Group will also be
represented here and concludes a comprehensive trade fair programme for 2011.
P. Geers
Marketing Department
New colleagues
Since 1 April 2011, our Research & Development Department has been strengthened by Ms Nataliya Atanasova,
who joined the food laboratory as a food technician. After completing her diploma in food technology in
Bremerhaven, she began studying biotechnology in 2009. She gained practical experience as a student assistant
and an intern in the microbiology department at the University of Bremerhaven.
Also on 1 April 2011, Mr Kim-Thomas Kronshage took up his role as Supply Chain Manager at Emsland Group.
The graduated engineer, who completed his studies in 1996 at the Lippe University of Applied Sciences in Lemgo,
has already worked for several different firms and brings a great deal of work experience with him to
Emlichheim. As former head of Supply Chain Management at Polyplast Müller GmbH and Head of Logistics at
Hansgrohe AG and Hansgrohe Inc., he is the ideal person for the job of Supply Chain Manager at Emsland Group.
Company management and colleagues wish them great success!
Nataliya Atanasova Kim-Thomas Kronshage
10

Craft certificates awarded by Chamber of Industry and Commerce
Along with 20 other chemistry production staff (IHK - Chamber of Commerce and Industry), seven employees of
the Emsland-Stärke GmbH (see image) also received their craft certificates from the Chairman of the Osnabrück
IHK examination board, Volker Suresch (also Training Officer at BP Europe SE Oil Refinery Emsland), at a small
ceremony.
The participants passed the examination with an average mark of "good" – one of the best results in the history
of the IHK.
The course was organised by ChemieNord Academy for Professional Training in the Chemical Industry in close
coordination with the Friends Association of BBS Lingen. In addition to technical mathematics, the 675 tuition
hours also included technological subjects and content on production processes.
The company management congratulates (v.l.) S. Höllmann, A. Harms-Ensink, M. Plaß, H. Klok, A. Van der Veen, H. Scheepers und G. Meyerink.
11

Employee service anniversaries
The company management would like to take this opportunity to cordially congratulate our colleagues who have
been able to celebrate service anniversaries in the first half of 2011.
For their 25 years of service, we thank:
Wolfgang Zellmer 01.01.2011, Warehouse
Joachim Oldehinkel 01.03.2011, Sewage treatment plant
Günter Diekmann 15.03.2011, Drying process
Gerrit Beckmann 01.04.2011, Technical center
Reiner Schulz 01.04.2011, Yard crew
Hildebrand Rosemann 15.05.2011, Drying process
Klaus List 09.06.2011, Guard
May many more years follow!
12