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Issue 3 - American Palm Oil Council

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Briefs<br />

Other issues involve defining<br />

‘gluten free', ‘low carb' and<br />

‘reduced carb' claims.<br />

The FDA is also due to issue<br />

guidance on the unintentional<br />

presence of allergens in food and<br />

beverage products, as well as to<br />

reconsider the regulatory<br />

framework for qualified health<br />

claims and permitted levels of lead<br />

in candy.<br />

Source: FOODUSA Navigator.com<br />

EU TO REVIEW<br />

BIO-DIESEL STANDARD<br />

BY 2009<br />

The quality standard for bio-diesel<br />

is expected to be changed by 2009,<br />

when a EU review is completed.<br />

At issue is whether the maximum<br />

iodine value (a measure of<br />

unsaturation of vegetable oils) for the<br />

feedstock blend should be increased<br />

above the current level of 120.<br />

because certain German auto<br />

manufacturers only provide an<br />

engine warranty when bio-diesel is<br />

made from rapeseed oil.<br />

The preference for rapeseed oil has<br />

resulted in prices of US$210/tonne<br />

premium over soybean oil.<br />

Source: Ag Perspectives<br />

GERMAN TAXES<br />

ON BIO-DIESEL<br />

Germany will phase in a<br />

€0.09/litre tax on bio-diesel from<br />

this year. This will rise to €0.06<br />

eurocents/litre per year from 2008<br />

to reach €0.45 eurocents/litre in<br />

2012.<br />

Vegetable oils used directly as fuel<br />

will be taxed at the same rates.<br />

About 2 million tonnes of biodiesel<br />

were sold last year, but the<br />

volume is expected to increase<br />

sharply this year.<br />

Zimbabwe is also facilitating the<br />

planting of the drought-resistant<br />

Jatropha curcas, a multi-purpose<br />

plant with high oil content in its<br />

seed.<br />

Bio-fuel made from this oil is<br />

targeted to supply about 10% of<br />

national requirements, thereby<br />

reducing the fuel import bill.<br />

Source: The Herald, June 30, 2006<br />

PETROBRAS LAUNCHES<br />

BIO-DIESEL<br />

Petrobras of Brazil has launched a<br />

bio-diesel product derived from a<br />

new refining process. H-Bio was<br />

created after investing US$38<br />

million in research.<br />

It is produced by mixing vegetable<br />

oil obtained from soybean and<br />

mamona or papaya, with mineral<br />

diesel.<br />

Source: Ag Perspectives<br />

The value currently limits the<br />

volume of soybean oil and<br />

sunflower oil used, and favours<br />

rapeseed oil instead.<br />

It is thought that the iodine value<br />

will be increased since the EU will<br />

need to use more soybean oil as a<br />

feedstock to meet its bio-fuel goals.<br />

EU bio-diesel manufacturers have<br />

already found a way to reduce the<br />

amount of rapeseed oil in biodiesel<br />

feedstock blends by adding a<br />

blend of soybean oil and palm oil.<br />

However, some hesitate to do so<br />

Source: Ag Perspectives<br />

BIO-DIESEL DEAL<br />

FOR ZIMBABWE<br />

Agro-industrial company Dutch<br />

Agricultural Development and<br />

Trading Company BV (Dadtco) has<br />

entered into a joint venture deal to set<br />

up a bio-diesel plant in Zimbabwe.<br />

Dadtco will bring in the required<br />

technology and expertise to build<br />

the plant, while South African firm<br />

Intshona Agriculture Products will<br />

provide the funds.<br />

CPO USE CAPPED<br />

FOR BIO-DIESEL<br />

Malaysia and Indonesia, the<br />

world’s largest palm oil producers,<br />

have agreed to limit the use of<br />

CPO for bio-fuel production.<br />

The ceiling has been set at 6<br />

million tonnes a year or 40% of<br />

their combined total production.<br />

This is designed to ensure<br />

sufficient supply of palm oil for the<br />

edible oil and oleochemical sectors.<br />

Source: Ag Perspectives<br />

GLOBAL OILS & FATS BUSINESS MAGAZINE •VOL.3 ISSUE 3, 2006 35

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