Market analysis for bast fibre crops in EU and · PDF fileMarket analysis for bast fibre...

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Market analysis for bast fibre crops in EU and China Jan E. G van Dam Food and Biobased research (DLO) Wageningen UR 1 NAROSSA, POZNAN 16-18 June 2014

Transcript of Market analysis for bast fibre crops in EU and · PDF fileMarket analysis for bast fibre...

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Market analysis for bast fibre crops in EU and China

Jan E. G van Dam

Food and Biobased research (DLO) Wageningen UR

1 NAROSSA, POZNAN 16-18 June 2014

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Fibre crops biorefinery production chain

Task 2.2 Markets for fibre crops

Description of fibre crop market development analysis: - State-of-the-art: Production statistics data update - Main market products (bast fibre) & Market trends - Secondary products (shives, seeds) - Innovations - Development needs (R&D; networking; commodification)

- SWOT analysis

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Biobased economy

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Circular BioEconomy

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Bast fibre crops in the cellulose matrix

5

z

HIGHVALUE

LOWVALUE

specialties

Textiles Non-wovenPaper and pulp Timber, board and panels

Bio-fuel and green energy

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To ensure exchange between bast fibre communities 2 twinning events are organized:

– First in Europe

(Wageningen, 2013)

– Second in China

(Changsha长沙, Hunan

2015)

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Twinning research projects/consortia

19 -20 March 2013 2nd FIBRA meeting, Roma

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EU-China trade statistics

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EU-China fibre trade

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Exports of flax fibre from EU to China for yarn spinning, weaving, and finished linen textile products manufacturing Imports of hemp and flax linen goods from China to EU

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Important fibre crops in China and EU

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Botanical family Common name Scientific name (ICN) Chinese name

Linaceae Flax / Linseed Linum usitatissimatum 亚麻

Cannabaceae Hemp Cannabis sativa 麻

Malvaceae Cotton Gossypium spp 棉

Kenaf Hibiscus cannabinus 红麻

Roselle (Meshta) Hibiscus sabdariffa var

Urena Urena lobata

China jute Abutilon theophrasti 苘

(Tiliaceae) Jute Corchorus capsularis 黄麻

Tosa jute Corchorus olitorius

Urticaceae Ramie Boehmeria nivea 苎麻

Nettle Urtica dioica 荨麻

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• EU & China Research projects on Fibre crops

– Textile

– Paper and Pulp

– Fibre reinforced composites

– Non-wovens

– Building materials

– Energy / biofuel

(see CORDIS (www.cordis.europa.eu/projects )

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Twinning research projects / consortia

19 -20 March 2013 2nd FIBRA meeting, Roma

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Research topics

• Breeding, genomics • Agronomy • Harvesting technology • Fibre extraction / retting • Fibre processing • Fibre application development

– Textiles – Paper – Fibre boards / insulation – Composites

• Life Cycle Assessment (environmental impact)

11 19 -20 March 2013 2nd FIBRA meeting, Roma

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• Collection of data, materials, methods and protocols used for fibre crop assessments and innovation and research – Cultivation practices/ processing systems /

industrial practices / end user markets and technical applications

• refining of input from task 4.1

• Exchange of materials (fibres / seeds)

• Fibre quality assessment / LCA

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Exchange of information

19 -20 March 2013 2nd FIBRA meeting, Roma

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Issues for the twinning events

• Production chains of bast fibre crops • Competitiveness with other fibre crops and cellulose

sources • Innovation for (nano)cellulose and cellulose derivatives • Biorefinery, by-products valorization • Marketing and market diversification • New fibre crops and agro-residues for cellulose

application • Environmental impact assessments • LCA and certification • Data base formation, ICT data management and

stakeholder accessibility

13 19 -20 March 2013 2nd FIBRA meeting, Roma

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Cooperation levels

• Public-private cooperation

• International cooperation – Government-to-government / knowledge to

knowledge (G2G / K2K) (AgentschapNL)

– Business matchmaking events

• Academic cooperation – EU framework program (open to Chinese

participation)

– National programs / student exchange

14 19 -20 March 2013 2nd FIBRA meeting, Roma

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Global production of fibre crops

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Cellulosic fibres

103 ton/y % of total fibres

major producing countries HS code

Cotton 23500 80.1% China, Brazil, India, Pakistan, USA, Uzbekistan

5201-5212

Jute 3055 10.4% Bangladesh, India 5303, 5307, 5310

Coir 1100 3.7% India, Viet Nam, Sri Lanka 5305, 5308, 5311

Flax 620 2.1% EU, China 5301, 5306, 5309

Kenaf 390 1.3% China, India, Thailand 5303, 5307, 5310

Sisal 350 1.2% Brazil, Kenya, Tanzania 5304

Ramie 120 0.4% China, Laos, Philippines 5305, 5308, 5311

Kapok 100 0.3% Indonesia, Thailand -

Hemp 100 0.2% China, DPR of Korea, EU 5302

Agave 34 0.1% Colombia, South America 5304

29360 100% Total world Source: FAO STAT (FAO 2010) and personal communication

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Fibre commodity products

Commodity: raw materials, products or intermediate products that are often exchangeable and being traded in bulk volumes world-wide. (e.g. industrial textile products, fibre raw materials and fabrics)

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A full commodity Not a commodity Easily transported and stored high energy content, low moisture, low volume Quality standardized

Fungible (exchangeable) Standard transport, contracting, insurance, safety, etc Standard processing, etc

Functioning market Trade system Price formation Financial instruments (futures, etc) High “tradability”

Sustainability Standard certification (GHG, LCA)

Not easily transported or stored No standards (quality, sustainability, safety, etc) No exchange markets No market price No financial instruments (futures) No sustainability standards Transaction costs higher Security of supply becomes very important/difficult Long term relationships needed One on One and Case by Case relations Vertical chain integration

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Fibre crop markets

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market Products Niche markets for bast fibre

1 Textiles fabrics of cotton, linen,

viscose, lyocel, acetate Apparel, carpet backing, upholstry sacking, geotextiles

2 Ropes, cordage and twine

Agricultural twine, baler & binder twine, packaging

3 Non-woven needle punched, wet laid, air laid,

hygienic tissues, diapers, wipes, filters Padding, insulation, geotextiles, mulch fleece

4 Wood & timber*

building and construction, furniture, carving and wood working

-

5 Pulp, paper and board

newsprint, writing, specialty paper, corrugated boards

Security paper, cigarette paper Wrapping paper, filters

6 Cellulose dissolving pulp

viscose, lyocel, cellulose derivatives, CA, CMC, HEC

-

7 Cellulosic Films packaging, membranes, -

8 Building materials Veneer*, plywood*, fibre boards,

Insulation, plaster and blocks Particle boards Insulation materials , fibre concrete

9 Cellulosic fibre composites

moulded compounds (sheet, compression, or injection), laminates, mineral matrix fibre composites

Automotive interior parts,

10 Green chemicals bioethanol, organic acids, furans,

biopolymers -

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CELC Masters of Linen

Flax area W. Europe (France, Belgium and NL) ca80.000 ha

E. Europe ca100.000 ha

(Belarus, Russia,Ukraine)

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Flax markets and products

Flax : 90% classical textile markets

long fibers: linen clothing (60%) and household textile (15%) , upholstry (15%) high prices ca 2000 € / t in competition with textile fibers (synthetics, cotton, viscose); fashion sensitive

technical uses 10%: fibre composites in automotives and sport (tennis, squash rackets) or boats; insulation blankets

shives : particle boards, animal bedding

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Bast fibre

CardingDegummingDecortication spinning Textilesbaling weaving

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EU Hemp markets and products

Specialty (thin) paper market (ca 0.50€/kg incl 25% shives) 55 %

Competes with: Wood pulp, (eucalyptus from south America); Cotton short fiber (lint); Flax short fiber (tow); Kenaf fiber

Producers: LCDA , Agrochanvre

Insulating wool in building applications

mulch agricultural fleece non-woven 30 % Competitors : paper pulp, flax fiber, glass wool, mineral wool, PUR, PS

Producers: Hock, Cavac, Technichanvre;

Suppliers: Eurochanvre, Agrofibre, Hemptechnology, Hempflax, Planète Chanvre

Plastic reinforcing fiber (ca 0.75€/kg, <5% shives) 15 %

Producers: Hempflax, Hemptechnology, Agrofibre, Eurochanvre, PlanèteChanvre

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European Hemp Industry Association

Total Hemp cultivation area in the EU around 10- 15.000 ha.

Competition with energy crops!

EIHA members

Non-EIHA members

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Acreage & production of fibre crops in China

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year Acreage (1000 ha) Output (1000 tons)

ramie flax Jute/ kenaf

hemp sisal ramie flax Jute/ kenaf

hemp sisal

2005 132.0 157.7 31.0 11.0 15.7 277.1 694.6 82.8 41.3 60.2

2006 141.8 86.6 31.0 11.0 16.7 286.8 414.8 86.8 42.0 60.9

2007 142.8 66.7 33.0 17.8 20.7 291.3 283.9 99.1 47.9 100.3

2008 126.0 56.7 26.0 12.0 22.0 250.4 257.0 84.3 45.0 86.8

2009 122.0 17.7 24.0 13.5 30.3 248.0 85.5 75.3 48.0 45.9

2010 98.1 8.7 19.0 13.2 20.5 70.0 44.6 69.0 48.0 46.3

2011 84.0 6.0 19.0 6.0 20.3 158.0 39.0 75.0 16.0 45.2

[Honglin Yang, 2013]

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Ramie planting area

Yellow River area Shanxi, Henan, and South Shandong

Yangtze River area Hunan, Sichuan, Chongqing, Hubei,

Jiangxi, and Anhui

Southern area

Guangxi, Fujian, Guangdong, Yunnan

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Non-woven fleece and felt

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• Agrotextiles, horticultural covering, geotextiles

• Thermoset and thermoplastic composites

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Pulp, paper and board

• Specialty paper grades; cigarette paper

• Absorbing wet strength filter papers

• Security papers bank notes

– Small niche

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Biorefinery / dissolving pulp

• 2nd generation biofuel, C6 fermentation

• Dissolving pulp, for cellulose derivatives

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Composites & building materials

• Polymer composites in automotive – Compression moulding – Injection moulding – NMT prepregs – Sheet moulding

• Fibre boards (MDF, HDF) – Particle (shives) boards

• Mineral fibre composites – Cement / lime/ magnesite / clay

• Insulation rolls and blankets

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European Hemp

Hemp fibre applications: 25,589 tonnes (EIHA 2012)

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EU Hemp markets and products

Hemp Shives:

horse and other animal bedding and horticulture 50-70%

Competitors: wood pellets, cereal straws

light weight concrete, particle boards 15%

Competitors: Wood chips / flax shives / straws

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Hemp Shives Applications: 43,621 tonnes (EIHA 2012)

European Hemp 2010

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Fibre based construction

Biobased building: Renewable Hemp house (UK, FR) Hemp in concrete (Hempcrete) Soprema roofing membranes Flax door panels, insulation Separation walls Grow2Built / CA’PEM

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Oil seeds

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Food / Non-food / health varnishes, paints, inks and coatings, linoleum flooring, and putty cosmetics and body care, detergents (soaps) and surfactants Lignans / linseed gum (ice creams, juice & jelly) / protein health food

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Hemp Seed Applications: 5,991 tonnes (EIHA 2012)

European Hemp 2010

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Other market developments

• Ramie: multi-purpose crop animal feed & mushroom growing medium

• Soil remediation

• Folk medicine

• Forage & animal feed (bird seeds,

• Animal bedding & absorbants

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SWOT

Strength EUR CHN

Weakness / risks EUR) C

HN

Established production + + Relative small scale industry + +

Full commodity market + + Eroding market position + +

Diversity of market outlets + + Interdependency in production and supply chain + +

Ecological positive image + + Labour intensive production + +

Good seed varieties available + + Obsolete retting & degumming methods + +

Well known agronomics + + climate dependency of crop productivity + +

limited fertilizer, pesticide, chemicals + + Annually variable qualities + +

Mechanisation of crop production + - Fashion trend dependency of top quality market product + +

Strong fluctuating market prices + +

Opportunities /chances Threats

Ecological & sustainable products + + Low profits for chain partners + +

High quality products + + Loss of skilled chain partners + +

Diversification and new innovative products + + Alternative production methods + +

Non-traditional bulk markets + - Competing low cost fibre products + +

Competing arable crops + +

Poor organization of the sector + -

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SWOT of Flax and Hemp

Europe and China

• Small holders involved in the whole production and supply chain.

• Competition among producers is high on local and international levels

• High demands on the product quality, high risks of crop failure

• Suppression of production costs and increasing wages are scrutinizing the competitiveness of the sector and affects the quality of the products

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SWOT of Flax and Hemp

Europe and China

• High prices for maintaining production of top quality textile fibres results in lower competitive with bulk products like manmade fibres and cotton

• High costs of production contra-productive for lower-end fibre bulk market products, (building materials and composites) where cheaper and established products are available.

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SWOT of Flax and Hemp

Europe and China

• Ecological and sustainable preference of increasingly conscious consumers can be exploited as niche market

• Diversification of the markets for bast fibres the decline of production area may be reversed both in Europe and China.

• Mechanisation of the production of fibres of different quality standards is of interest.

• The trade of fibres as commodity product needs further expansion, when the sector is to survive in the 21st century.

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Thank you

for

your

attention

感谢您的关注

NAROSSA, POZNAN 16-18 June 2014