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Render Working with Government to Catch Grease Thieves Industry Listens and Waits on FSMA The International Magazine of Rendering December 2012 Determined Industry Deciphers Future at NRA’s annual convention

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Render

Working with Government to Catch Grease Thieves

Industry Listens and Waits on FSMA

The International Magazine of Rendering December 2012

Determined Industry Deciphers Future at NRA’s annual convention

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Thanks to our sponsors’ generous support, our recent convention was ranked “best” by many of the respondents in our post-convention attendee survey.

Please join us in saluting the generosity of this year’s NRA convention sponsors!

A Special Thank You to the Outstanding Sponsors of NRA’s 79th Annual Convention.

We Greatly Value Your Support.

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AC Corporation

Alfa Laval Inc.

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American Proteins, Inc.

Baker Commodities, Inc.

Birmingham Hide & Tallow

Bolton & Menk, Inc.

Brown Industrial, Inc.

Centrisys Corporation

Clapper Corporation

Dar Pro Solutions

De Smet Rosedowns Ltd

Diversified Laboratories

Farmers Union Industries

Florida By-Products, Inc.

• 2012 Convention Sponsors •

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Freightliner

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G.A. Wintzer & Son Co.

Gavilon

GEA Westfalia Separator

Haarslev, Inc.

Jenkins Centrifuge

Kemin Nutrisurance

Leem Filtration

MAC Trailer Mfg

Martin Sprocket & Gear, Inc.

Materia HNOS S.A.C.I.F

Mendota Agri Products

Onken, Inc.

Orthman Conveying Systems

Par-Kan Company

Refineria Sudamericana

Rothsay

Sacramento Rendering

Sanimax

SCP Control, Inc.

Separators, Inc.

Summit Trailer Sales, Inc.

The Dupps Company

Travis Body & Trailer, Inc.

Valley Proteins, Inc.

Walinga

Wellens & Co.

Wells Fargo

West Coast Reduction

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Won’t Let You Down

A word about quality from a friend at Dupps

Phone: 937-855-6555

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“Quality and experience, you see them in every part we make.”

“In the machine shop, we all understand how every part

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“We design the fixtures, we create the CNC programs

and we test the tooling. All in an effort to make the best

parts we can. A case in point: our new manufacturing

cell that makes our Pressor® cast flights. We applied the

latest machining and tooling technology so we could take

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flights are much stronger and have a much longer service

life. We can make the flights quicker now too, so they’re

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“I enjoy my contact with our customers too, because

it’s a chance for me to learn what their needs are. We

promise that a customer can reach us twenty-four

hours a day, seven days a week, and one of my jobs is

to answer calls on weekends. We’ll pull parts from the

warehouse and ship the same day to keep a customer

up and running.

“I feel our biggest advantage is our experience. We take

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4 December 2012 Render www.rendermagazine.com

Departments

Features10 Determined Industry Deciphers Future At NRA’s annual convention.

15 Research Group Moving Forward FPRF holds its annual meeting.

16 Industry Listens and Waits On the Food Safety Modernization Act.

21 Canadian Renderers Battle trials and tribulations.

6 View from Washington Fiscal cliffs and lame ducks.

8 Newsline Working with government to catch grease thieves.

18 From the Association First year in the bag, but are challenges ahead?

20 International Report Responsible aquaculture gets global nod.

22 Biofuels Bulletin Glimmers of a struggling global biodiesel industry.

26 ACREC Solutions    StudyonthermaldeathtimeofAI published.

28 Tech Topics   Nitrificationbasicsfor

wastewater systems.

30 Labor and the Law Dealing with a hostile employee.

33 Mark Your Calendar 34 People, Places, and... 36 Classifieds

Editorial Offices2820 Birch AvenueCamino, CA 95709Phone: (530) 644-8428Fax: (530) [email protected] http://rendermagazine.com

Editor and Publisher Tina Caparella

Associate Editor Cheríe Behar

Magazine Production Sierra Publishing

Contact the National Renderers Association at 801 N. Fairfax St., Ste. 205, Alexandria, VA 22314 (703) 683-0155 Fax (703) 683-2626, [email protected] http://nationalrenderers.org

Render (ISSN 0090-8932) is published bimonthly under the auspices of the National Renderers Association by Sierra Publishing, 2820 Birch Avenue, Camino, CA 95709 as a public service to the North American and global rendering industry. It is intended to provide a vehicle for exchange of ideas and information pertaining to the rendering and the associated industries. Render is distributed free of charge to qualified individuals upon written request. Publisher reserves the right to determine qualification. Periodical postage paid for at Camino, CA, and additional mailing offices.

© 2012 All rights reserved.Printed in USA

POSTMASTER: Send address changes to Render, P.O. Box 1319, Camino, CA 95709-1319.

Contents December 2012 Volume 41, Number 6

ENDERRENDERRThe National Magazine of Rendering The International Magazine of Rendering

On the CoverAlong with record product prices, US renderers also face challenges. p. 10

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www.rendermagazine.com Render December 2012 5

Rendertorial It’s that wonderful time of year when families and friends around the world gather together to celebrate Christmas and other religious holidays and the start of a new year. These get-togethers also give everyone the chance to catch-up on each other’s lives. The rendering industry is much like a family, gathering around the globe several times a year at various meetings to celebrate successes, plan solutions to challenges, and reconnect on personal and professional levels. Friendships are renewed around dinner or a glass of beer or wine and embraced until the next get-together. So when tragedy strikes a rendering family (or two), our hearts weigh heavy at their pain and suffering as we offer thoughts of strength and healing. At the recent National Renderers Association convention in California, we heard heartbreaking news affecting two rendering families – the Gays of Protein Products, Inc. in Gainesville, GA, who lost their 21-year-old son, Jeffrey, and the Andreolis of Baker Commodities, Inc. in Los Angeles, CA, whose 24-year-old son and grandson, Jimmy, suffered major injuries in a car accident. While Jeff and Cindy Gay grieve the death of a child, a loss so unfathomable, we as an industry mourn along with them at the passing of a young life full of potential and promise. We are saddened for them and offer our support and comfort as only an industry family can. Across the country, at almost the same time, Jim and Patricia Andreoili received devastating news that their son had been in a horrific, explosive car accident just blocks from home. With multiple surgeries and the finest medical care, Jimmy is slowly on the long road to recovery with healing prayers and thoughts from his extended rendering family. So as we celebrate this holiday season with family and friends, take a moment and say an extra prayer or light an extra candle for those rendering family members who are dealing with personal loss or challenges. And give an extra hug to those who mean so much in your life. Hugs to all of you and best wishes for a safe and joyful holiday season! R

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6 December 2012 Render www.rendermagazine.com

Fiscal Cliffs and Lame Ducks

View from Washington By Steve Kopperud, Policy Directions, Inc.

As they say, it’s all over but the shouting. I’m writing this early in the post general election lame duck session when the president of the United States (US), Speaker of the House of Representatives, and Senate Majority Leader are all saying the same conciliatory things about compromise, bipartisanship, and “reaching across the aisle.” It’s apparent both parties understand the outcome of the November 6 election was by no means a mandate to anyone. By voting the status quo, American voters effectively gave President Barack Obama and Congress a second chance. By the time you read this, we should be hip deep in the debate over how to build the guardrail that prevents the US economy from hurtling over the fiscal cliff. My best guess at this point is there will be no “grand bargain” slashing $1.4 trillion out of the federal budget over the next decade, nor will Congress have “dotted all the i’s and crossed all the t’s” on individual and corporate tax reform. Congress will likely make a “down payment” on the deficit – around $75 billion or so for 2013 – and it will then kick the heavy lifting into the next Congress beginning January 6, 2013. On taxes, Congress will extend the Bush individual and corporate tax rates for a time certain into 2013, mindful of Obama’s warning not to whack the middle class to ensure his sign-on, and there may or may not be a rate hit to those in the top one percent of the taxpaying public, folks earning over $700,000 a year. The tax action will carry some minor, noncontroversial issues including the expired tax credits for alternative energy production, biodiesel, and renewable diesel. Wind and solar credits are not such a done deal. These actions will consume most of the lame duck session, despite House Speaker John Boehner’s (R-OH) declaration that he does not like working major legislation in lame duck sessions because the number of departing members with nothing to lose increases the chances of mischief exponentially. However, because the “cliff” and its implications were a major campaign issue, because everyone and their brother has said they’ll fix it, and because of the guarantee that inaction plunges the country into a deeper recession if they don’t, at least a temporary fix will get done. The farm bill has a 50/50 chance of seeing enactment by Christmas, but again, there may be a move to simply extend the 2008 law and deal with it in 2013. There are those who argue a fiscal cliff solution makes the likelihood of a full five-year farm bill greater, but I’m not so convinced. We’ll likely come up with some expanded disaster assistance legislation as the impacts of Superstorm Sandy on New York City, NY, and northern New Jersey are still too real. Appropriations have already been punted into the next Congress, as have immigration reform, energy, and a host of other minor issues. What this all adds up to is the 113th Congress is going to be a very busy – and likely a very different – kind of place. What nags at Washington, DC, insiders is the continuing lack of any public or private details about how many of these

ugly political issues will be addressed. This is exactly what continues to frighten Wall Street and does nothing to ease the uncertainty corporate America points to when asked why it will not invest those buckets of cash it’s sitting on in expansion and employment. The president will look to his legacy, the priority of any second term chief executive, and not a small factor in all things presidential for the next four years. The first challenge will be to rebuild his cabinet. Secretary of State Hillary Clinton will move on as will Secretary of Transportation Ray LaHood, the only Republican in the Obama inner circle. Secretary of the Treasury Tim Geithner has made it clear he wants to return to the private sector, as has Attorney General Eric Holder. It’s speculated that Secretary of Agriculture Tom Vilsack, in the wake of his wife’s unsuccessful bid for an Iowa House seat, wants another job – perhaps an ambassadorship – in the Obama Administration. Environmental Protection Agency Administrator Lisa Jackson is strongly rumored to be at the end of her rope when it comes to being cast as the living embodiment of federal overregulation and Big Brother government. Not to worry because there are more than enough sitting, defeated, and retired members of Congress and enough retired or defeated governors to fill those slots, not to mention prospects among all those folks who were number two on the 2008 list of prospective cabinet members. The White House continues to struggle with whether to engage directly and consistently with Congress and risk losing on one or more key points, or allow Obama to sit back and await the results of congressional wrangling, and then pronounce whether what Congress achieves matches his priorities. No sitting president wants his legacy to be “he vetoed more bills than any sitting president in modern history.” However, the president continues to issue almost eerily conciliatory statements about comity and cooperation on all issues, meaning Congress is still getting campaign statements, not detailed action recommendations. On tax rates and deficit reduction, the president said at his November 13 press conference – the first he’s held since the beginning of June – he won’t “slam the door in their [Republicans’] face” as to how comprehensive tax reform and spending cuts must be achieved. While avoiding any “red line” on what must be included in the grand bargain, he repeatedly talked about his reelection not as a mandate, but rather as a plea from the middle class to make their lives better. He said he has the opportunity to be “an even better president in my second term than I was in my first,” but his office has not provided any detail about how he’d like to see the tax system reworked, achieve spending cuts, reform immigration, or fashion a national energy policy that works. For their part, congressional Republicans are no better, but their challenge is complicated by the realities of the general election. The GOP is struggling with how to deal with the strong voter message that there simply aren’t enough angry

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www.rendermagazine.com Render December 2012 7

Send old and new address to:P.O. Box 1319, Camino, CA 95709-1319

Fax: (530) 644-8429www.rendermagazine.com/subscribee-mail: [email protected]

MOVING??

(rich) white men in the United States to elect a GOP president. To return to its “big tent” origins, Republican leadership must reevaluate issues that keep Latinos, African Americans, most women, and the 18 to 44 year-olds out of the GOP. This means 2013 Republican policy initiatives may not be carbon copies of what’s been proposed before, particularly when it comes to the issues of tax fairness and immigration. There will be more than enough 2013 distractions from the base domestic issue agenda to keep both the White House and Congress spinning. It’s expected congressional hearings into the General Petraeus/Central Intelligence Agency soap opera will continue into the new Congress, but these forums will be less concerned with the salaciousness of romantic liaisons and more focused on implications for national security, as well as what did the White House know and when did it know it. The White House will wrestle not only with Congress, but also with the court of public opinion over the tragedy of the deaths at the Benghazi, Libya, consulate. US and Middle East/Israel policy will be tested as the deadline for action on Iran and its nuclear weapons ambitions – whenever that deadline might be – gets closer, and all of this will play out in the overarching context of trying to jump-start the economy. The other potential shift in phi-losophy and behavior will be reflected in the focus of the mainstream media. Accused of bias and generally ignoring all things negative to the president during the election campaign, the four-year Obama honeymoon is officially over. The various administration challenges – including the economy, taxes, the Middle East, Petraeus, Benghazi, etc. – are challenges to Congress as well, and the confluence of these issues is to the Washington, DC, press corps what blood in the water is to sharks. I’m hoping the 113th Congress, the second Obama Administration, and the information flow from the national media are as much unlike the past four years as can be achieved. It’s the only way forward. R

View past articles in Render at

www.rendermagazine.com

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8 December 2012 Render www.rendermagazine.com

Working with Government to Catch Grease Thieves

Newsline

Renderers across the country continue to struggle with ways to deter the theft of used cooking oil, also referred to as inedible kitchen grease. While many companies have hired private investigators, provided incentives to employees to report theft, and installed surveillance cameras and theft-deterrent container lids, California renderers and grease collectors have banded together with the California Department of Food and Agriculture (CDFA) to enforce and fine-tune laws already on the books. In 2011, the Pacific Coast Renderers Association and California Grain and Feed Association teamed up to get a legislative bill passed that developed a seven-member Rendering Industry Advisory Board (RIAB) to make recommendations to the CDFA and the state’s agriculture secretary on matters pertaining to CDFA’s Meat, Poultry, and Egg Safety Branch’s Rendering Program. The group held its first meeting with CDFA in early October, and although there was some slight frustration among a few members at the department’s limitations, all agreed it was a good start. Michael Koewler, Sacramento Rendering Company, was voted in as RIAB chairman with Daniel Stonesifer, president of the San Diego Fats, Oils, and Grease Haulers Association, elected as vice chairman. Most of the initial meeting addressed various activities by CDFA’s Inedible Kitchen Grease Program team members, including three investigators. Each investigator reported the various citations issued and fines implemented this year in both Southern and Northern California, with all agreeing that more work needs to be done in getting district attorneys to be receptive to prosecuting cases. Better success was reported when focusing on grease theft as an environmental crime. So far, most theft cases are settled out of court by the CDFA for the minimum fines, which is up to $1,000 per violation. However, beginning January 1, 2013, penalties could take a bigger bite out of thieves’ pockets when CDFA is allowed to implement fines up to $5,000 per violation and given more authority to collect those fines, such as garnishing state income tax refunds. The fines collected go back into the industry-funded program, which is financed by transporter registration fees. Investigator and some CDFA personnel salaries are paid out of the program, with no state funds being used. Another use of program monies is grants for city law enforcement personnel. Earlier this year, a grant of $51,544 was awarded to the city of Fontana to pay police overtime to catch thieves in the act of stealing used cooking oil. Another grant of $50,000 has been earmarked for educating the Orange County District Attorney’s Office where six theft cases are pending, and CDFA recommended perhaps another grant be

awarded in the Sacramento area to include the cities of Elk Grove and Roseville where thefts are on the rise.  Dr. Doug Hepper, CDFA’s Animal Health and Food Safety Services/Meat, Poultry, and Egg Safety Branch chief, encouraged renderers and grease collectors to file online police reports when a theft occurs as this leads to police agencies contacting the program’s investigators who in turn make them aware of the inedible kitchen grease program and grants for overtime work to catch thieves. CDFA recently sent a letter and educational flyer to state sheriff and law enforcement agencies making them aware of the rise in thefts and the state’s program, what suspicious activity to look for, and a new $500 reward being offered for an arrest leading to a conviction. CDFA

is also creating an 8” x 10” decal for grease containers and refrigerator magnets announcing the new reward program and grease hotline (855-HIT-GREASE) that allows confidential reporting of suspicious activity as it relates to inedible kitchen grease. An online reporting system is also being put in place at www.hitgreasetheft.cdfa.ca.gov, with tabs for reporting thefts, searching for registered transporters, and convictions. CDFA stated these tools are for restaurants and the general public to make reporting thefts as easy as possible; renderers should continue to file police reports. Koewler suggested reaching out to the California Restaurant Association to educate their members about the new reward, hotline, and online reporting website. Other RIAB members also recommended putting the decal, magnets, and other theft reporting information in Spanish as a large population of the state’s restaurant industry speaks this language. On CDFA’s to do list is a proposal to make it illegal for registered inedible kitchen grease transporters or other persons to obtain grease from unlicensed renderers or collection centers, and a manifest regulation, which is proceeding along. The initial public comment period has ended and substantial revisions are being made to the manifest in response to those comments. A second 15-day public comment period will follow, with an anticipated effective date of the manifest to be January 1, 2013. Also, inedible kitchen grease transporter applicants will need to provide a carrier identification number and motor carrier permit for 2013. If the transporter does not provide these items, which are required by the state vehicle code, CDFA can notify the California Highway Patrol. Prior to adjourning, the advisory board developed a subcommittee for enforcement ideas and targeted early March 2013 for their next meeting following the Pacific Coast Renderers Association convention. R

By Tina Caparella

An 8” x 10” decal encourages reports of grease theft.

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© Kemin Industries, Inc. and its group of companies 2012 All rights reserved.    ® ™ Trademarks of Kemin Industries, Inc., U.S.A.”

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10 December 2012 Render www.rendermagazine.com

Determined Industry Deciphers FutureBy Tina Caparella

lthough renderers throughout the United States (US) have been enjoying record prices for their products over the past few years, it hasn’t come without challenges, such as Indonesia closing its borders to meat and bone meal after the discovery in April of a fourth case of bovine spongiform encephalopathy in California and the increasing battle against grease theft. In spite of these setbacks and impending new regulations under the Food Safety and Modernization Act (FSMA), renderers appeared determined as the industry gathered in late October on the shores of Laguna Niguel, CA, for the National Renderers Association’s (NRA’S) 79th Annual Convention. Bringing a light-hearted tone to the country’s economic and political woes was keynote speaker Dr. Gene Stanaland, Auburn University, who is amazed at the misunderstanding of US economics and the perception Americans have of the presidency. “It is impossible for a president to repeal a law,” he declared. Laws are passed by Congress, which he said is like a lawsuit. “You go in a pig, you come out sausage. Politics comes first, everything else comes second.” Stanaland explained that when Congress threatens to cut the deficit, they don’t cut it from where it is, but from where it would be, and the US government is borrowing 40 cents for every dollar it brings in. He also clarified that under the Troubled Asset Relief Program, or TARP, monies loaned to Wall Street have since been repaid. The US economy has been at a two percent growth rate and an eight percent unemployment

rate for a while, creating uncertainty among Americans and businesses. Consumers have reduced their debt and businesses have lots of cash sitting around, indicating a lot of buying power ahead. Stanaland’s forecast is the economy will muddle through 2013 but should start picking back up in 2014. Steve Kopperud, Policy Directions, continued the dialog on politics, declaring that Congress is almost more important to the rendering industry than who sits in the White House. Addressing FSMA was Leigh Wilkinson, American Feed Industry Association (AFIA), who noted the new food safety regulation could have a $1.2 billion impact and will affect all ingredient processors, feed manufacturers, pet food producers, feed and ingredient importers, and transportation within these sectors. The new regulation will include good manufacturing practices for animal feed manufacturers based on human food good manufacturing practices. One concern at AFIA is a possible exemption for small food facilities selling intrastate within 275 miles, which would include small farmers markets and roadside stands.

A

10 December 2012 Render

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Determined Industry Deciphers Future “AFIA believes everyone should be included as the law intended,” Wilkinson stated. She predicted that the human food preventative rule will be released first, followed by the foreign supplier certification rule, then the animal feed rule. The problem with this scenario is the feed industry cannot comment on the foreign supplier certification rule without knowing what the animal feed rule contains. When the rules are finally published, there will likely be a 90 to 120 day comment period, with the Food and Drug Administration (FDA) then holding three public meetings, followed by an implementation period of 12 to 18 months. Wilkinson said it will be a “huge” job for FDA to hire and train inspectors, and encouraged renderers to use industry knowledge to start putting programs in place now. Wilkinson next focused on state regulations, beginning with a new feed law update in Idaho that removes tonnage reporting and fees but proposes product registration fees. This changes the burden from one industry (livestock) to the feed ingredient industry. AFIA did not support the bill, which was pushed for by the dairy industry because of costs, but will approach the Idaho legislature in January to fight the new proposed fees. Other states looking at possibly updating feed laws in 2013 include North Dakota, which hasn’t made changes since 1968, and New Mexico, no changes since 1978. Randy Blach, Cattle-Fax, turned the focus to the livestock industry, reporting that Brazil and Australia are seeing growth in beef cows and global slaughter bottomed out in 2010, with projected growth of just over two percent in 2013. Closer to home, one of the worst droughts in US history has caused slaughter numbers to drop anywhere from three to 12 percent this year over 2011, and that trend is predicted to continue through 2014. To supplement the decline in cow numbers, Blach estimates the United States will import 1.8 million cattle from Mexico. However, with cattle weights higher, up about 17 pounds just this year, “four steers produce as much beef today as five did 25 years ago,” he declared. Higher weights have offset about 75 percent of the impact of a declining cow herd over the last 20 years and helped to average US beef production at about 26 billion pounds per year over the past 15 years. The United States is the largest beef producer in the world, followed by Brazil, the 27 countries of the European Union (EU), and China, with all four combined producing around 60 percent of global demand. As for pork production, Blach reported there has been a huge increase in swine slaughter over the past few months due to high-priced corn causing pork producers to lose $40 to $50 per head. Globally, pork production is seeing a 3.6 billion pound per year growth, with China being the number one producer at just over 50 billion pounds per year followed by the EU at 23 billion pounds annually. However, on January 1, 2013,

a sow crate ban will take effect in China that could create a five to 10 percent drop in production. Blach predicts the United States will pick-up that decline. Currently, the country exports 24 percent of pork production, with estimates that number climbing to 30 percent in the next three to four years. On the poultry side, the average young broiler live weight is nearing six pounds, up from five pounds in 2000. Globally, poultry production is seeing an average growth rate of 5.1 billion pounds per year, with the United States, China, Brazil, and EU being the top four producers with 64 percent of the global production. Blach announced that tight corn stocks will keep prices high into next year. The United States has already met its renewable fuel standard requirements for corn ethanol and with 25 plants idle or operating below capacity due to high corn prices, ethanol imports are strong. Meat and bone meal prices and corn prices correlate about 83 percent. World soybean production is projected to be 9.4 billion bushels for 2012/2013, with the long-term trend reaching 12.9 billion bushels by 2020. The United States produces 31 percent of the world’s soybeans, but only consumes 17 percent of its production so the rest is exported. Soybean prices are expected to trade from a low of around $13.50 per bushel to highs of $16.50 per bushel during the next eight months. Blach commented that tallow prices are down slightly from 2011 and correlate about 85 percent with crude oil, which is expected to be priced in the $90 to $115 per barrel range for most of next year. Over the long-term, Blach pointed out that to meet the needs of a growing population, global food production will have to increase 40 percent by 2030 and 70 percent by 2050, with beef and dairy production needing to double by that time. However, farming in 2050 will occupy only 13 percent more land than was used in 2008, yet he believes agriculture will be able to respond with the increase in plant production technology. In closing, Blach commended renderers for the service they provide the livestock industry, and declared the industry “the picture of sustainability.”

Committees Converge NRA committees hashed out various issues, beginning with the Animal Protein Producers Industry (APPI) Committee where Dr. David Meeker, senior vice president, NRA Scientific Services, announced that of the 203 plants that participate in APPI’s Salmonella testing program, 116 have been certified under the North American Rendering Industry Code of Practice. “Good job, everyone,” he commended. Jessica Meisinger, director, NRA Education and Com-munications, shared that FDA wants to put together a video to help train existing and new inspectors on rendering plant

at NRA’s annual convention

Continuedonpage12

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Convention Continuedfrompage11

inspections. An FDA film crew and Meisinger will be the only personnel touring rendering plants and renderers have a say as to what can and can’t be filmed. Those areas of a plant that are not filmed will be diagramed to include in the final video. NRA will receive a copy of the final video for industry use and training under the Code of Practice. It was suggested to renderers that they should have a dry run with plant personnel of what is to be filmed before a film crew arrives. The NRA Communications Committee is in need of a new approach to gather industry statistics since the US government is no longer collecting the data. The committee decided a survey would be composed for rendering companies to directly report the needed data to perhaps a third-party accountant so the information is kept confidential. NRA will then compile the statistics so they can continue to be reported in each April issue of Render and also be used for government international support programs and by industry supporters and financial institutions. Meisinger noted that NRA now has a Twitter account (@renderers) as a way for “quick information dissemination.” The account currently has 55 followers including AFIA, National Chicken Council, the Food and Agriculture Organization Media Center, and noted agriculture bloggers. Environmental Committee Chairman Robert Vogler, Valley Proteins, Inc. reviewed the Environmental Protection Agency’s (EPA’s) greenhouse gas regulations, which required renderers to report emissions from anaerobic waste digesters by September 30, 2012. He explained that under EPA’s boiler maximum achievable control technology, or MACT, rule adopted last year, which applies to all but the largest sources, there are specific requirements for new and existing boilers of all sizes that burn fuels other than gas at industrial, commercial, and institutional facilities. These requirements include certain notifications, performance testing, tune-

ups, and energy audits. Vogler noted that some aspects of this rule, as well as regulations for major sources, are under reconsideration by EPA. Another EPA activity on NRA’s radar screen is draft guidance on the agency’s Environmental Justice initiative that will require greater public participation, community outreach, and participation in the permitting process for facilities near minority and low income areas. Tighter restrictions on emissions, operating hours, and traffic, as well as other changes, are likely to be imposed as part of a settlement of contested permitting cases and enforcement activities. Greg Sindt, Bolton and Menk, Inc. discussed activities relating to imposing total maximum daily loads in Iowa and elsewhere in the Mississippi River watershed. He raised concerns about the imposition of numeric limits for nitrogen and phosphorous and discussed alternative strategies. Sindt encouraged renderers to get involved in pending lawsuits and state regulatory activity on this issue. Biofuels was on the agenda next as Committee Chairman Chuck Neece, Farmers Union Industries, LLC warned that 2012 biodiesel production will be flat compared to last year, but he expects an uptick come next February or March. Kopperud chimed in that 2013 will be a battleground for alternative energy legislation as the biodiesel industry continues to work feverishly to reinstate alternative fuel tax credits that expired at the end of 2011. There was some discussion on the position of the Green Restaurant Association (GRA) that requires restaurants seeking certification by the group to recycle their used cooking oil through a biofuels producer. Committee members decided to have NRA staff contact GRA and encourage them to reconsider other sustainable uses for the disposal of used cooking oil. It was then announced that the National Restaurant Association is nearing completion of its own sustainability program that will be neutral on how restaurants recycle their used grease, and is welcoming NRA and renderers to be part of its sustainability

J.J. Smith (far right), Valley Proteins, presents a proposal to the NRA Legislative Committee to retain an attorney who would gather information on various grease theft laws and activities in the United States. The data would then be given

to the Federal Bureau of Investigations and other national agencies to spur interstate investigations.

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Continuedonpage14

program and a partner in the fight against grease theft. In the Legislative Committee meeting, Carlos Gonzalez, Novus International, Inc. presented a plan of action to submit a food additive petition to FDA to expand the use of ethoxyquin in the United States. This is in response to FDA issuing an industry reminder to the feed industry of the improper use or improper labeling of ethoxyquin, an antioxidant used most often in rendered fats and proteins. According to Gonzalez, FDA said the product should not be used in animal protein meals. Novus is asking for NRA’s and the industry’s support to show FDA the product is needed by renderers and the feed industry rather than just one company trying to make its product available for sale. In a letter explaining the petition process, Novus said if the petition is unsuccessful or cancelled, “renderers will no longer be able to use ethoxyquin in their product unless they can justify its use for stabilization of carotene, xanthophylls, and vitamins A and E. Regardless, product will need to be labeled and, until a second petition to increase application beyond 150 ppm [parts per million] is approved, they will need to maintain application levels at or below 150 ppm.” The committee then shifted their attention to grease theft with a proposal presented by J.J. Smith, Valley Proteins, Inc.to hire an attorney who would gather pertinent information on thefts from across the country, prepare an investigative plan with the assistance of a former or retired Federal Bureau of Investigations (FBI) agent, then meet with the current FBI director and his criminal division staff to brief them on the magnitude of the problem and the benefits of an interstate investigation. Similar meetings would take place with the US Attorney General’s office. The proposal does not target any one area of theft, but puts the issue on the radar screen of the FBI and US Attorney General’s office. John Mahoney, Mahoney Environmental, commented that any company who has an investigator on staff is “taking an incredible step toward this theft issue.” He emphasized the quality of the arrest is also key, which includes seizure of assets such as trucks, computers, and bank accounts. Mahoney remarked that his company has aided in 40 arrests and one conviction since last December. During the NRA Board of Directors meeting, it was

announced that the association welcomed three new renderer members this year – Smithfield Foods, Encore Oils, and Wardlaw’s Poultry – and a host of supplier members. The board then accepted proposed amendments to the NRA by-laws that will allow the board of directors to determine member dues on an annual fiscal basis. The by-laws now contain a set dues amount and the board must add monetary assessments each year to keep up with the rise in expenses. NRA members will be notified of the proposed dues changes and a vote to accept or reject those amendments will be done at a later time.

Globetrotting The NRA convention features a focus on global matters with reports from the association’s regional directors and invited speakers from around the world. First up was Niels Nielsen, president, European Fat Processors and Renderers Association, who announced that beginning July 1, 2013, porcine and avian processed animal proteins will be allowed in European Union (EU) aquaculture feed. However, before those proteins can be expanded into other animal feeds, proper tests must be put in place to ensure no banned ruminant proteins are being used. Currently, the official tests allowed in the EU are the polymerase chain reaction, or PCR, and microscopy. The European Food Safety Authority has determined the critical limits to be two percent ruminant protein in non-ruminant proteins, and 0.1 percent ruminant protein in feed. Nielsen explained the EU Renewal Energy Directive’s goal of 20-20-20 by 2020 as a 20 percent greenhouse gas emissions reduction compared to 1990, a 20 percent cut in energy consumption through energy efficiency, and a 20 percent share of renewable energy in the total energy mix, which includes a sub-target of 10 percent renewable energy in the transportation sector as biofuel. Under a proposed revision to the directive, five percent of that 10 percent biofuel target would come from first-generation biofuels (i.e., soybean, rapeseed, and palm oils, and wheat ethanol) with the other five percent derived from second-generation biofuels from animal fat and used cooking oil. Second-generation biofuels also count twice toward the target. Julius Rath, Australian Renderers Association, provided an

Dr. Gene Stanaland, Auburn University, tries to simply

explain US economics and politics.

David Hull (left) explains Onken’s locking grease container lids to Julius Rath, Peerless Holdings Pty., Australia.

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Winners at the GEA Westfalia Separator booth at the tabletop reception are Todd Scherbing (right), Smithfield Foods, and Don Davis, Farmers Union Industries. GEA Westfalia’s Rawn and Janice Walley presented the prizes.

update from his country where the biggest concern is a carbon tax introduced in July 2012 that has increased energy costs for all industries and will likely raise $136 billion in tax revenue. “This is the single biggest political issue in the country that will likely lead to a change in government,” Rath declared. As for market access, Australian meat and bone meal exports to China have been interrupted due to licensing regulations, but all plants have now been inspected and approved and are awaiting final health certifications. Indonesia became the top market for Australian proteins in 2011 over China and will most likely continue that trend for 2012 due to Indonesia’s ban on US meat and bone meal. Australian renderers produced 638,000 metric tons of animal proteins in 2011, of which 253,100 metric tons was exported and 207,000 metric tons was used in poultry feed. Tallow exports to China, Australia’s largest market, have also been disrupted due to product substitution; users have found industrial tallow from Chinese food factories. Australia was seeking to export tallow to the EU for biodiesel use, but EU authorities voiced concerns over Australian cattle being treated with growth hormones. However, renderers are working with the EU government and are waiting for the market to open. Total tallow production in Australia in 2011 was 546,700 metric tons, of which 362,200 metric tons was exported. Rath mentioned that due to ongoing consolidation, JBS and Cargill have now become the largest meat and rendering operations in Australia, then invited all to attend the Australian Renderers Association Congress July 23-26, 2013, in Melbourne, Australia. Alexandre Ferreira, SINCOBESP (Brazil’s rendering association), predicted Brazil’s meat industry will grow about 20 percent between now and 2020. Prices for animal proteins in the country have risen seven percent from 2010 to 2011, with animal fat prices rising 27 percent. About 3.3 million metric tons of animal protein meals and 1.9 million metric tons of animal fats were produced in 2011 and are primarily used domestically. Eighty-three percent of animal meals produced are used for animal feed, 14.7 percent goes into pet food, and 2.3 percent is exported. As for all animal fats, 42 percent is used for cleaning products/soap, 32 percent into animal feed, and 19.7 percent for biodiesel. Tallow consumption in Brazil is mostly used for soaps (56 percent), biodiesel (25.6 percent), and animal feed (12.5 percent). Ferreira also extended an invitation to Brazil’s rendering industry meeting in Sao Paola, April 24-25, 2013. Covering other global issues were NRA regional directors, beginning with German Davalos, who announced that Chile has become a very interesting market in the past 18 months, becoming the second largest salmon producer in the world after Norway. The country has increased its use of animal proteins in fish feed from one percent in 2000 to 20 percent today, mostly poultry by-product meal and feather meal. Of the 105,000 metric tons imported the first eight months of this year, 49,266 metric tons was from the United States and is anticipated to reach 70,000 metric tons by year’s end (other imports are from the EU, Brazil, and Argentina). Davalos added that if the trend of US protein exports to Mexico (65 percent poultry meal, the rest porcine meal) continues, imports could

reach 100,000 metric tons by the end of 2012. NRA regional director for Asia Peng Li informed the crowd that the association hosted a Chinese customer delegation to the United States in late August to examine rendering operations with the hope of opening the market for ruminant meat and bone meal. In Thailand, there is strong competition from the EU and market access issues for US meat and bone meal. Li did have encouraging news about some opportunities in Cambodia and Burma. Kent Swisher, vice president, NRA International Programs, wrapped up the world tour with a look at US statistics, where 39 percent of protein meal consumption goes to poultry feed, 31 percent to pet food, and 20 percent is exported. Of rendered fat production, 35 percent is used in livestock feed, 29 percent is exported, 18 percent goes to biodiesel, and nine percent is taken by the oleochemical industry. Swisher showed how fat prices have “really” increased over time, and despite a stable demand for meals, prices have been dramatically rising as well, with Asian countries notably increasing their imports of animal proteins. R

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New FPRF officers are, from left, Erica Weltzien, vice chairman, David Kirstein, chairman, and Duane Anderson, treasurer.

Geoff Smolkin, West Coast Reduction, examines a

biodegradable liner for raw material collection bins.

Research Group Moving Forward

For 50 years, the Fats and Proteins Research Foundation (FPRF) has been meeting the research needs of the North American rendering industry, whether it’s searching out new markets for proteins and fats or verifying the rendering process to ensure compliance with government regulations. As the group met in October for its annual meeting, future demands were examined along with the challenge of continuing to raise much-needed funds. Foundation Chairman Carl Wintzer, G.A. Wintzer and Sons, noted that it has been of great benefit having Jessica Meisinger, director of education and communications, National Renderers Association (NRA), help review current and past research reports. NRA President Tom Cook added that the management of FPRF by NRA is working very well as all staff is located in one office, and Dr. David Meeker, FPRF director of research, is completely sold on the Animal Co-Products Research and Education Center (ACREC) at Clemson University. “We are really starting to realize why the center was established in the first place,” he commented. “Everything funded currently fits the priorities established.” Meeker went on to state that looming Food and Drug Administration (FDA) regulations has the rendering industry nervous, but process verification research currently being studied at ACREC will help meet those regulations. FPRF Treasurer Erika Weltzien, Rothsay, reported that the foundation is providing more communication outreach, such as a layman’s summary of current and past projects and a one-page summary of all projects; a report of research expenditures by research and development category; and an increased profile of the foundation to draw the best researchers possible. Two at-large (outside of ACREC) research projects were approved by the FPRF Board of Directors: (1) Using essential fatty acid requirements of fishes in the context of rendered fat-based aquafeeds by J.T. Trushenski ($69,931); and (2) Evaluation of techniques used to extend shelf-life and methods for analysis of rendered protein meals in pet foods

by G. Aldrich ($45,000). Both projects are slated for one year. Several ACREC researchers provided updates on their projects, beginning with Andrew Hurley who has created a biodegradable liner for raw material collection containers made from cornstarch that could be a solution for the polyethylene problem often experienced by renderers. About 2,500 liners are currently in final industry-scale testing with much success so far. Hurley revealed the liners don’t stretch, but instead break when they go through the

 auger. Dr. Charles Gooding reported on potential high value products from tallow he assigned his students to research. One student developed a biodegradable lubricant that would fit well into the 40 million metric ton global market. Gooding emphasized that biobased lubricants from vegetable oils are gaining market share as cost-effectiveness and biodegradability boost demand. He then thanked FPRF for the funding to provide real-world challenges to over 150 Clemson undergraduate students. At the conclusion of the meeting, new FPRF officers were voted in for the next two years. Elected chairman was David Kirstein, Darling International, Inc. while Weltzien moved into the vice chairman position. Duane Anderson, Farmers

Union Industries, was selected as treasurer.  Following the annual meeting was the emerging issues seminar that began with Dr. Donald Palmquist, Ohio State University, scientifically reviewing oxidative rancidity of rendered fats and the impacts on animal health, nutrition, and performance. Ben Bowen, Kemin Industries, discussed what the industry has learned from thousands of peroxide value tests on rendered products, and Greg Aldrich, Kansas State University, offered ways to smooth the interface between renderers and pet food customers. R

By Tina Caparella

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Over 300 participants listened to presentations primarily focusing on government regulations at the conference held by the Pet Food Institute and National Grain and Feed Association (NGFA). Dr. Dan McChesney, director of the Food and Drug Administration (FDA) Office of Surveillance and Compliance/Center for Veterinary Medicine, declared that the United States (US) has the safest food and feed supply in the world, “however, we have become a global supply system and the current FDA inspection system, albeit good, cannot keep up.” He explained that FSMA mandates a change in how FDA does its work, breaking it down into the “Big Four Rules + 1”: produce, preventive controls for human food, preventive controls for animal food, foreign supplier verification program, and third party certification being the plus one. McChesney reiterated that the current US food safety system is not sustainable as a reactive system and that FSMA moves the system to a preventive approach. He then remarked that FDA has accomplished “a lot” on FSMA, reminding all that the bovine spongiform encephalopathy regulations took four years to finalize. All FSMA proposed regulations, except third party certification, are currently being reviewed by the Office of Management and Budget, with pet food labeling regulations having a two- to three-year implementation period. McChesney encouraged everyone to sign up for updates on the FSMA website at www.fda.gov/food/foodsafety/fsma. On a positive note, pet food recalls for the period October 2011 to September 2012 are down from the previous year, with 24 recalling firms this year compared to 64 during the same timeframe in 2011, and 85 total products recalled in 2012, down from 212 the previous year. Switching gears to FDA inspection and training plans in a post-FSMA world was Scott MacIntire, director of FDA’s Chicago District Office, who encouraged feed manufacturers to reach out to their respective FDA state officials and begin a dialogue. Under a revised leadership, FDA’s Food and Feed Operations now focuses only on one product instead of all FDA product areas and physically inspects less than one percent of all imports, which this year total 24 million shipments of food, devices, drugs, and cosmetics at US ports of entry. MacIntire estimated that 15 to 20 percent of all food now consumed in the United States originates outside the country, up to 40 percent of drugs Americans take are imported, and up to 80 percent of the active pharmaceutical ingredients in those drugs

come from foreign sources. “We’re good cops,” MacIntire declared. “We only have to play bad cop when companies don’t regularly comply.” He noted that in the FDA Investigations Operations Manual, photos may now be used to document violations and the agency will do dioxin samples for surveillance. Ross Korves, economic policy analyst, The ProExporter Network, focused on the impacts the US drought and ethanol production are having on the feed and pet food industries’ primary plant-based ingredients. He stated that world carryover stocks of corn and soybeans are very tight with plantings just beginning in Brazil and South America. “If we don’t get a crop out of South America like we expect, we’re going to be in bigger trouble than we think we are,” Korves warned. Although ethanol producers are scaling back, estimated to use about 4.5 billion bushels of corn in 2012 compared to five billion in 2011, Korves does not expect the Renewal Fuel Standard to disappear. He also doesn’t anticipate US corn ethanol production to grow much more, but instead be supplemented by imports of sugar cane ethanol from Brazil. Dr. Craig Henry, Deloitte and Touche, LLP discussed developing and implementing a supply chain verification program that FDA and customers may demand. “Supply chain management is about due diligence to assure products in from the supplier meet required regulatory, legal, and contractual standards of safety,” he explained, adding that the biggest hurdle of FSMA is that feed manufacturers are going to have to know the supplier to a supplier to their supplier, all the way down the chain. Henry also made note that regulators will ultimately require a responsible party (company) to protect the consumer first and the brand second, that government agencies have a lot more tools in the form of regulations than they did five years ago, and that documentation, including accredited third-party certification, will be key to ensuring compliance. Continuing the discussion on FSMA was Rachel Lattimore, partner at Arent Fox, who said the act really changed the inspection game. The term “reasonable” is used throughout the regulation and is open to interpretation by all, from regulators and government agencies, to the courts and industry. “FDA wants to be a good cop, but they are a cop,” Lattimore reminded. She encouraged manufacturers to have more than one person in a plant/company trained to work

Industry Listens and Waits on FSMABy Tina Caparella

Like many in the food and feed industry, pet food companies are anxiously awaiting the final regulations of the Food Safety Modernization Act (FSMA) signed into law in January 2011 and required to be in place by July 2012. Those who attended the third annual Feed and Pet Food Joint Conference in St. Louis, MO, in early October still didn’t hear exactly when the regulations would be released, except “maybe a sneak peek sometime in November.”

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Rachel Lattimore, Arent Fox, warned about varied interpretations of the new FSMA.

with FDA inspectors in case that individual is off work the day an inspector shows up. Companies are also advised to consult an attorney before allowing an inspector to take photos or samples, but if allowed, the company representative should take the same photos and samples as the inspector. David Fairchild, NGFA, announced the development of the Food Safety Preventive Controls Alliance (FSPCA) under the Institute for Food Safety and Health. FSPCA’s core is to develop a standardized food safety prevention controls training curriculum for food industry personnel that addresses hazard analysis, prevention controls, monitoring, corrective action, verification, and recordkeeping, all elements specified in FSMA. A 27-member steering committee consisting of regulatory, academia, and industry representatives has established a working group, with a further goal of creating an animal feed and pet food steering committee to direct alliance activities specifically related to these food/feed types. The objective is to take the food industry standard curriculum, expected in January 2013, and adapt it to animal feed/pet food. Going outside the FSMA box to discuss weather and climate change was Dr. Elwynn Taylor, professor of Agricultural Meteorology, Iowa State University, who declared that the climate is changing; it always has, and always will. “We just don’t know how much and when it will change,” he commented. Taylor then stated that demand for biofuels, which may consume one-third of the world’s agriculture production, is affecting grain prices and that the world is using more fossil fuels than the earth is creating, increasing carbon dioxide levels. “If we use biofuels that we’ve just grown, it is carbon neutral and saves some fossil fuels,” he remarked. “Biofuel is fine if used wisely. Biofuel does not need to replace fossil fuel, just augment it.” Taylor went on to say that corn is currently not the most efficient crop to produce biofuels, but it is the plant of choice. When corn yield reaches 200 bushels per acre (double what it is now), only then will it be the most efficient biofuel plant. Charlie Arnot, Center for Food Integrity, examined why science isn’t enough, that consumers need to trust today’s pet and livestock feed industries.

“It’s very important to get the right message to the right audience at the right time,” he stated. More concerns have been raised about pet food because consumers love their pets, therefore they are becoming more aware of what goes into the feed (antibiotics, genetically modified organisms, etc.). Arnot mentioned that shared values between consumers and companies have been shown to be more important in building trust than demonstrating competence through research. “Science needs to play a different role in how we build trust with consumers,” he noted, adding that transparency is no longer optional. “We are moving from mass communication to masses with communication.” Regarding the lean finely textured beef incident, Arnot advised industry to collectively support “recovery technology” no matter the source (i.e., fruit, beef, etc.) as sustainable and environmentally friendly. He also recommended seeking legislation making it illegal to not report animal abuse if witnessed as opposed to banning cameras, which make it appear the industry has something to hide. Covering contracting and trade rules were John Augspurger, DeBruce Feed Ingredients, and David Barrett, Cunningham and Eselgroth, LLP. Augspurger said trade rules are important due to volatility and encouraged attendees to know the difference between a contract, a confirmation, a counterparty confirmation, and a broker confirmation, if applicable. He pointed out that anything can be negotiated. Barrett emphasized that manufacturers must know their suppliers, communication has to flow both ways to be effective, and risk can be allocated in contracts. He also underscored the need to have an arbitration clause in contracts, and that many container shipments follow Grain and Feed Trade Association, or GAFTA, rules out of London, England. During the conference, attendees had the opportunity to meet with various companies exhibiting their technologies and services. One such exhibitor was Darling International/Griffin Industries debuting their new Dar Pro brand. Steve Thomas, Griffin Industries, commented that although the pet food industry continues to rely on animal proteins as feed ingredients, he has seen a shift to products not labeled “by-products.” He pointed out that pets digest meat products better than plant products. R

Dr. Dan McChesney, FDA, discusses forthcoming changes to the food safety system in the United States.

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First Year in the Bag, but are Challenges Ahead?

From the Association By Gerald (J.J.) Smith, Chairman, National Renderers Association

Editor’s note – The following is a speech given by Gerald (J.J.) Smith, Valley Proteins, at theNationalRenderersAssociation79thAnnualConventioninOctoberinLagunaNiguel,CA.

It has now been one year since I assumed the office of chairman of our great organization. Last year when folks asked me what is involved with being the chairman of the National Renderers Association (NRA), I told them that it was impossible to know what my two-year chairmanship would be like since all administrations are shaped by the events and circumstances that occur during the years in office. Overall, I am very happy to report that it has been a fairly uneventful first year and I have high hopes that this coming year will be just as smooth. I am also pleased to report that NRA membership and dues are stable. Even better, I am delighted to welcome back Smithfield Foods as both a maximum dues paying member and a board member. Another positive is that there have been no major company acquisitions during the past 12 months so NRA has not lost any significant members due to consolidations. The NRA staff is also stable and very experienced. We have lost no staff members in the past year and have added Jessica Meisinger as the director of Education and Communications. Meisinger will be helping take some of the load off Dr. David Meeker now that he is wearing three hats with NRA, the Animal Protein Producers Industry, and the Fats and Proteins Research Foundation. The rendering industry’s main challenge these past 12 months relates to the discovery of a fourth case of bovine spongiform encephalopathy in the United States (US) that resulted in a suspension of ruminant meat and bone meal imports into Indonesia. As most of you know, Indonesia was one of only two countries that were importing US ruminant meat and bone meal and certainly was by far our largest international outlet. Although the Indonesian government earlier this summer indicated that it would resume imports from rendering plants that solely process material from US Department of Agriculture inspected slaughter facilities, to date we know of no product that has made it into Indonesia since April of this year. The NRA staff and Hong Kong regional office continue to work with both the US and Indonesian governments; however, we still cannot provide a definitive date on when to expect this market to reopen. This year, US renderers have seen the highest protein prices and second highest fat prices in history. The downside of these high prices has been a reduction in exports – over 25 percent for fats and about 10 percent for proteins. The US corn production has experienced a significant drought – one that only occurs about twice each century. This has brought record high corn prices, but due to the suspension

of the biodiesel and alternative fuel mixture credits, renderers have not experienced any lift in fat prices from these elevated corn prices. In fact, rendered fats are currently selling at their lowest multiples to corn prices in over 10 years. I believe this is mainly due both to the loss of biofuel subsidies and to significant increases in palm oil production and the reported record stocks of palm oil. A great offset for US renderers, however, has been very low natural gas prices, especially in comparison to the prices for both petroleum and rendered fats. In many cases, US renderers

are now paying more to fuel trucks than to operate boilers. It is very unusual to have low boiler fuel prices at a time when the industry is enjoying near record fat prices. Looking ahead to the next 12 months, I see the following issues that will most likely affect the US rendering industry and NRA in some way. • The results of the presidential and congressional elections have the potential to significantly change the balance of power in Washington, DC, and along with it, US federal income tax policies. There could also be very different regulatory policies based on the outcome of the presidential election, especially at the Department of Labor, Department of Energy, and Environmental Protection Agency. • The upcoming farm bill, other budget-related debates, and, possibly, sequestration could have significant outcomes regarding the NRA’s Foreign Agriculture Service funding and with regard to the extension of biofuel-related tax credits. • Due to record high commodity costs, animal and poultry processors will continue to find it difficult to earn a profit. The majority of these businesses will eliminate most of their marginally valued production in order to reduce losses. This will cause renderer’s supplies to decline in many cases and to grow very little in others. Cattle slaughter will be declining for the next several years and is projected to decline three to four percent in the coming year. Poultry production is not expected to increase and may possibly decline by one to two percent. Hog production will be the exception since it is projected to increase around three percent. • Exports will continue to be under pressure due to record high commodity prices, but will continue to be supported by a fairly weak US dollar since the Federal Reserve continues to print money and hold down interest rates at near zero. • Animal protein exports may be helped by reduced competition from the European Union (EU) since the EU has a target to reintroduce processed animal proteins back into aquaculture feeds on June 1, 2013. But don’t hold your breath on this one since this was being discussed when I made my first trip to the European Fat Processors and Renderers Association congress in June 2008! • The biggest wild card for the US rendering industry

Gerald (J.J.) Smith

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is the Renewable Fuel Standard (RFS). The RFS 2013 obligation has been set at 1.28 billion gallons for biodiesel that will continue to support rendered fat markets. But, and this is a big but, the very elevated corn prices and projections for extremely tight corn supplies next summer have greatly amplified the debate regarding the RFS with regard to corn ethanol. I would argue that renderers have enjoyed much more lift in fat prices from elevated corn prices over the past six years than we have from increased disappearance of fats into biofuels. These increased corn prices have resulted from increased corn demand mostly driven by the RFS. If the opponents are successful in getting the government to suspend or eliminate the standard, then renderers could see significant declines in the price for fats. Just as I remind my employees when they talk with exuberance about high fat prices resulting from high corn prices, be careful what you wish for because you just might get it. This year’s corn prices have the potential to break the RFS camel’s back. R

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Responsible Aquaculture gets Global Nod

International Report By Tim JuzefowiczSecond Vice President, World Renderers Organization

The World Renderers Organization (WRO), an association member of the Global Aquaculture Alliance (GAA), was a silver sponsor at this year’s Global Outlook for Aquaculture Leadership conference held in Bangkok, Thailand. Over 330 people from around the world attended the meeting that featured more than 40 speakers and a theme of “Making a Difference Through Responsible Aquaculture,” designed to build on last year’s theme of “Double in a Decade.” The conference has been held every year since 2003 in various cities around the world. Next October, the conference will be held in Paris, France. The first day of the conference included a presentation by GAA President George Chamberlain of the alliance’s Lifetime Achievement Award to Dr. Chingchai Lohawatanakul (known as Dr. Lin) for his work in developing the shrimp aquaculture industry. He received a standing ovation from attendees. The production session followed with discussion on aquaculture growth predictions and the state of global macroeconomics. The expectation is for China’s middle class to grow significantly, necessitating new demands for seafood products. This will become both a challenge and an opportunity for the aquaculture industry. Aquaculture Health Management discussed case studies describing the control of infectious salmon anemia in Chile and the growing concern of early mortality syndrome in shrimp. There are more unknowns with this disease than answers but collaborative studies are underway. The second day of the conference included presentations and views by various investment organizations and GAA’s Social Accountability Panel. Steven Hedlund described how the alliance’s Best Aquaculture Practices (BAP) program was developing quickly with over 500 facilities certified so far and certified tonnage up 25 percent. It was explained that progress should be measured by whether GAA and its BAP program are “making a difference on the ground,” ensuring that aquaculture is growing in a responsible manner. Emphasis was made that the necessary mechanisms are in place to encourage global aquaculture production

growth and the BAP program is part of that mechanism On the final day, the marketing sessions covered certification, sustain-ability, and supplier audit programs. There were three separate marketing panels made up of representatives from some of the world’s leading suppliers and retailers. The panel members were asked a number of questions on issues affecting sustainability of the global fish meal supply to the role of “ecolabels” to rising seafood prices. Reference was made to the use of “trash fish” in aquaculture feeds and how this practice is not sustainable in the future. Renderers around the world should recognize the future growth of aquaculture as an excellent opportunity to promote animal protein meals and fats/oils for use in aquaculture feeds. R

Mike Berthet (left), M&J Seafood, Ltd. discusses marketing issues.

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By Tina Caparella

Renderers in Canada continue to face challenges with export markets, grease theft, and the temporary closure of a major meat processor. To find possible solutions to these issues, members of the Canadian Renderers Association (CRA) met while also attending the National Renderers Association convention in Laguna Niguel, CA, in late October. First on the agenda was exports of Canadian tallow to China, a market that has “technically” been open since this past summer but so far no product has been shipped due to a box on the importation certificate that requires a Chinese import permit number. Because China does not issue import permits, no tallow has been shipped. According to renderers, the Chinese government’s concern is there is no control over the tallow once it arrives. Graham Clarke, government liaison for CRA, reported that Indonesia and the Philippines are currently the only export markets for Canadian meat and bone meal, which is helping to fulfill Indonesia’s needs after it banned meat and bone meal from the United States following the discovery of bovine spongiform encephalopathy in California in April. Bangladesh is now being examined as a potential third market for Canadian meat and bone meal. Switching the conversation to biofuels was Alan Rickard, Rothsay, who explained that under European Union regulations, yellow grease is labeled a rendered product while used cooking oil is a waste material, allowing used cooking oil to be exported to Europe for biodiesel but not

yellow grease. On a related note, grease theft took up a good amount of discussion, where it was noted that CRA has written talking points aimed at restaurants and provided them to the Canadian Restaurant Association who has agreed to distribute to its members. Todd Moser, Rothsay, shared that his company has been successful in apprehending grease thieves. In one case, a truck driver was caught siphoning grease from a container that did not belong to him. Police were called who took the crime seriously and confiscated the truck. It was later learned that the truck had been released the previous day from impound for another theft. Moser stated the thefts are very sophisticated by organized operations. Clarke proclaimed that better containers is a “moot issue,” while Barry Glotman, West Coast Reduction, mentioned that in the scrap metal industry, the collection center tracks who they are purchasing scrap metal from, something the rendering industry should consider. Clarke lastly addressed the large meat recall by XL Foods due to a small number of E. Coli cases, resulting in the processor shutting down its Alberta plant and subsequently being managed by JBS USA. He remarked there is a lack of transparency in the Canadian government and that it’s frustrating for the industry. He gave an example of a public press conference held about the recall by the Canadian Food Inspection Agency (CFIA) prior to contacting the meat industry, which resulted in cattlemen receiving media calls about an incident they knew nothing about. CRA members decided renderers need to be more proactive with CFIA and will organize a meeting with them in Ottawa, ON, Canada. R

Canadian Renderers Battle Trials and Tribulations

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Glimmers of a Struggling Global Biodiesel Industry

Biofuels Bulletin By Tina Caparella

Revenue losses, idled plants, auctions, and bankruptcy have plagued the biodiesel industry over the years, but as 2012 was coming to a close, those announcements were heard all too often. Two reasons being blamed for the hiccups in the United States (US): the expiration of the renewable fuel tax credits at the end of 2011 and the biomass-based diesel requirements under the Renewable Fuel Standard being met by the end of October, depressing renewable identification number prices from a high of $1.50 to a low of 40 cents. As for Europe, the explanation is overcapacity. In North America, Renewable Energy Group (REG), the largest biodiesel producer in the United States, announced its adjusted third quarter 2012 EBITDA (earnings before interest, taxes, depreciation, and amortization) was a loss of $2.3 million, a decrease of 105 percent compared to $45.7 million for the same period in 2011. The company pointed out that its balance sheet remained strong with cash of $88.3 million, it had sold 62 million gallons by the end of September, up 40 percent year-over-year, and its revenue of $323 million was up 26 percent over the same period last year. REG just recently added two more biodiesel production plants to its inventory (see further in this article). Although Syntroleum Corporation, a renewable and synthetic fuels technology company based in Tulsa, OK, reported operating income of $10 million ending September 30, it recorded a loss of $5.7 million from its subsidiary Dynamic Fuels, creating a net loss of $1 million. Dynamic Fuels is a renewable diesel producer that uses animal fats and used cooking oil as its feedstock. Syntroleum reports Dynamic Fuels on a three-month lag so the loss was incurred for the period ending June 30, 2012. As of September 30, Syntroleum’s available cash was $17.6 million. In Canada, Biox Corporation, a renewable energy company that designs, builds, owns, and operates biodiesel production facilities, has temporarily suspended production at its Hamilton, ON, biodiesel facility based on the existing conditions within the US biodiesel market. The company said it would monitor market conditions, including biodiesel production volumes as well as trading liquidity and pricing, to determine the appropriate time to resume production. Along with the suspension, Biox has reduced its operations group by 17 positions on a temporary basis. Biox will continue to operate the recently commissioned stand-alone glycerin refinement system to upgrade crude glycerin in inventory to technical grade glycerin. “Given our balance sheet, we are in a strong position to manage through this short-term setback,” said Kevin Norton, chief executive officer, Biox. “We remain confident in the long-term fundamentals of the broader biodiesel market, specifically given the 28 percent increase in the mandated minimum volume of biomass-based diesel for 2013, and we expect to resume production in due course.” The current market conditions are also impacting the

construction of Biox’s second facility in New York Harbor in New York. The company has deferred purchasing certain long-lead time, capital-intensive components and reduced its project planning team related to construction. An estimated commission date of the facility has not yet been announced. In Europe, Austrian-based BDI – BioEnergy International AG, a technology supplier and plant manufacturer in the waste-to-energy market, reported an EBIT loss of 1.5 million euros ($1.9 million USD), compared to a gain of 3.2 million euros ($4 million USD) the previous year, and a reduction in sales of 30 percent to 19.1 million euros ($24.3 million USD) for the first nine months of 2012. The company attributes project delays to the lower sales. BDI stated that due to a difficult market situation and poorer sales and earnings than planned in the biogas segments, it made extraordinary goodwill write-downs totaling three million euros ($3.8 million USD). “In spite of positive financial earnings and income from investments, this led to period earnings of a loss of 3.3 million euros ($4.2 million USD) in the first nine months of the fiscal year,” the company said in a statement. In Germany, Cargill has closed one of its two biodiesel plants because of overcapacity in the biofuels sector. The 120,000 metric ton annual capacity facility at Wittenberge in East Germany has stopped production and a new investor is being sought for the plant, which has 28 employees, is a joint venture with German agricultural cooperative Agravis, and primarily uses rapeseed oil. Cargill also has a 250,000 metric ton biodiesel plant at Hoechst near Frankfurt. According to reports, Germany’s biodiesel industry, Europe’s largest, has only been running at about 50 percent capacity since the country taxed biodiesel, cutting consumption. At the beginning of 2012, about half of Germany’s plants had been idled or declared insolvency. On the bright side, Paseo Biofuels, LLC, a joint venture of Cargill, the Missouri Soybean Association, and hundreds of agriculture producer investors, is expanding its Kansas City, MO, plant capacity by 40 percent to meet what it says is the increasing demand for biodiesel. Using soybean oil as its primary feedstock, the facility, which opened in 2008, produces 40 million gallons of biodiesel and 30 million pounds of food-grade glycerin annually. The expansion is expected to be complete by March 2013.

Europe Plans to Limit Food-based Biofuels The European Commission (EC) published a proposal in mid-October to limit the use of food crop-based biofuels to just half of the 10 percent renewable energy target of the Renewable Energy Directive. The five percent cap is an effort to stimulate the development of alternative, so-called second-generation biofuels from non-food feedstock that

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emit substantially less greenhouse gases than fossil fuels and do not directly interfere with global food production. The estimated global land conversion impacts – indirect land use change (ILUC) – will be considered by the EC when assessing the greenhouse gas performance of biofuels. According to a statement by the EC, recent scientific studies have shown that when taking into account ILUC, for example when biofuel production causes food or feed production to be displaced to non-agricultural land such as forests, some biofuels may actually be adding as much to greenhouse gas emissions as the fossil fuels they replace. The commission is therefore proposing to amend the current legislation on biofuels through the Renewable Energy and the Fuel Quality Directives and in particular the following. • Increase the minimum greenhouse gas saving threshold for new installations to 60 percent in order to improve the efficiency of biofuel production processes as well as discouraging further investments in installations with low greenhouse gas performance. • Include ILUC factors in the reporting by fuel suppliers and European Union (EU) member states of greenhouse gas savings of biofuels and bioliquids. • Limit the amount of food crop-based biofuels and bioliquids that can be counted towards the EU’s 10 percent target for renewable energy in the transport sector by 2020, to the current consumption level, five percent up to 2020, while keeping the overall renewable energy and carbon intensity reduction targets. • Provide market incentives for biofuels with no or

low ILUC emissions, and in particular the second- and third-generation biofuels produced from feedstocks that do not create an additional demand for land, including algae, straw, and various types of waste, as they will contribute more towards the 10 percent renewable energy in transport target of the Renewable Energy Directive. The European Biodiesel Board is opposed to the EC proposal, saying it is “based on unfounded and immature ILUC science and a five percent cap in 2020 would destroy the biofuels industries and related sectors such as crushing and sugar facilities. Any change in policy must safeguard the investments made and ongoing toward fulfilling the commission’s initial objectives of 10 percent renewable energy for transport production in the EU. Fundamental problems remain in the EC proposal which will have devastating impact on the biofuels industries and diversification of farmers’ revenues.”

Biofuel Project from Used Cooking Oil Launched in China A newly formed technology center created by Boeing and Commercial Aircraft Corp. (COMAC) of China has announced that Hangzhou Energy Engineering and Technology Co., Ltd. (HEET) will conduct the center’s first research project. HEET, a company with experience developing alternative energy technologies, will focus on ways to convert discarded

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Biofuels Continuedfrompage23

cooking oil into a component of sustainable aviation biofuel at the Boeing-COMAC Aviation Energy Conservation and Emissions Reductions Technology Center in Beijing, China. The project aims to identify contaminants in used cooking oil, which often is described in China as “gutter oil,” and processes that may treat and clean it for use as jet fuel. The focus of the project for the first year will be to demonstrate the feasibility of achieving significant cost reduction in converting gutter oils and other waste oils into jet fuel through improvement of conversion efficiency and associated technology. The Boeing-COMAC technology center is working with China-based universities and research institutions to expand knowledge in areas such as sustainable aviation biofuels and air traffic management that improve commercial aviation’s efficiency and reduce carbon emissions. Funded by both companies, the center opened in August at COMAC’s new Beijing Aeronautical Science and Technology Research Institute (BASTRI). “China is the world’s fastest growing aviation market and the biggest consumer of cooking oil,” said Qin Fuguang, president of BASTRI, COMAC. “There’s great potential for converting the waste cooking oil into sustainable aviation fuel.” China annually consumes about 29 million metric tons of cooking oil, while its aviation system uses 20 million metric tons of jet fuel.

British Supplier Sets up in Georgia British chemical equipment supplier Biodiesel King, LLC has selected Cumming, GA, as the home of its United States headquarters and distribution center, according to the Cumming Forsyth County Chamber of Commerce. The company specializes in supplying chemicals, fuels, additives, equipment, and accessories to the biodiesel industry. Collection of used cooking oil from restaurants, hotels, and other sources is a primary service offered by Biodiesel King, as well as an incentive of paying up to $1 per gallon to area suppliers. Managing member Ian Dawson said the company would create about five new jobs.

NBB Elects Governing Board National Biodiesel Board (NBB) members selected their association leadership, electing three returning governing board members and four new members to lead the group. Officers elected are Gary Haer, Renewable Energy Group, chair; Ed Ulch, Iowa Soybean Association, vice chair; Ron Marr, Minnesota Soybean Processors, secretary; and Steven Levy, Sprague Operating Resources, treasurer. NBB members also voted to fill seven board member spots. Elected to the governing board along with Levy are Greg Anderson, Nebraska Soybean Board; Jennifer Case, New Leaf Biofuels; Mike Cunningham, American Soybean Association; Brandon Foley, Sanimax; Tim Keaveney, Hero BX; and John Wright, Owensboro Grain Company. Bob Metz, Robert Stobaugh, Kris Kappenman, Ed Hegland, and Jim Conway also continue to serve on the governing board.

Portugal Plant to Use Animal Fats Assunto Importante SA has upgraded its existing biodiesel plant in Sines, Portugal, to utilize multi-feedstocks, opting to use animal fats and used cooking oil. The local mineral oil industry will be the end-user of the second-generation biodiesel produced. BDI – BioEnergy International AG was the contractor for the 25,000 metric ton per year plant. The objectives of the project were not only to increase the raw material flexibility of the existing plant but also to improve the quality of the biodiesel so as to satisfy the requirements of the stricter-quality European standard EN14214/2013 that will have to be observed in the future. This was done under BDI’s retrofit program that modernizes existing biodiesel plants, irrespective of the original technology used. BDI noted that this commission demonstrates the increasing demand for second-generation biofuels. “The use of waste materials is not just good for the environment, it also enables the quantity targets set by the European Commission for the proportion of fuel accounted for by sustainably manufactured biodiesel to be met,” stated BDI.

REG Purchases Two Biorefineries Within three weeks, Renewable Energy Group (REG) acquired two 15 million gallons per year biorefineries, one in New Boston, TX, the other near Atlanta, GA. The company paid $300,000 in cash and issued 900,000 shares of its common stock to North Texas Bio Energy for the multi-feedstock biorefinery located about 22 miles west of Texarkana. It is REG’s second Texas biodiesel production facility following its 2008 acquisition of its Houston-area plant. The New Boston facility began production in June 2008 and has been idle for four years. The plant will undergo some construction and minor upgrades prior to start-up, which is expected in the first quarter of 2013. REG plans to utilize animal fats and other high free fatty acid feedstocks to produce biodiesel at the refinery, and hire nearly 20 employees. REG has also purchased the former BullDog Biodiesel operation, a multi-feedstock facility in Ellenwood, GA, 11 miles southeast of Atlanta, for cash and in-kind consideration of about $2.6 million. No stock was issued related to this deal. No production date has been set for the re-start of the facility that will operate as REG Atlanta, LLC, which has run intermittently since January 2008. REG tolled the facility from April 2011 through April 2012 to support the company’s biodiesel sales in the Southeast. BullDog ceased operations in April 2012 due to a combination of poor market conditions and upgrades needed to make the facility more efficient.

Renewable Diesel Tested in Airport Shuttles Enterprise Holdings, owner and operator of the Enterprise Rent-A-Car, National Car Rental, and Alamo Rent A Car brands, is piloting a program with Mansfield Oil Company to use renewable synthetic diesel fuel in its airport shuttle buses at Louis Armstrong International Airport in New Orleans, LA, and

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Houston Hobby Airport in Houston, TX. “By using synthetic diesel and embracing alternative fuels, we are following our ongoing commitment to help grow the clean fuel market and increasing opportunities for alternatives to become commercially viable,” said Lee Broughton, head of corporate sustainability for Enterprise Holdings. Benefits of synthetic diesel compared to petroleum-based diesel include 16 percent reduction in particulate matter, 68 percent reduction in non-methane emissions, 33 percent reduction in nitrogen oxide gases, and 23 percent reduction in carbon monoxide. Enterprise is the first car rental company in the United States to utilize renewable synthetic diesel to power their shuttle buses, according to Mansfield Oil, which sources the renewable diesel from Dynamic Fuels in Louisiana. Dynamic Fuels uses animal fats, used cooking oil, and other waste oils to produce the alternative fuel. Enterprise also supports renewable fuels research. Since 2006, Enterprise’s owners, the Taylor family, have given $35 million to the Donald Danforth Plant Science Center and its Enterprise Rent-A-Car Institute for Renewable Fuels.

RFS Waiver Denied The United States (US) Environmental Protection Agency (EPA) has not found evidence to support a finding of severe “economic harm” that would warrant granting a waiver of the Renewable Fuels Standard (RFS). The decision is based on economic analyses and modeling done in conjunction with the US Department of Agriculture (USDA) and US Department

of Energy (DOE). The governors of several states requested that EPA waive the national volume requirements for the RFS program based on the effects of the drought on feedstocks used to produce renewable fuel in 2012-2013. Several other parties submitted similar requests. “We recognize that this year’s drought has created hardship in some sectors of the economy, particularly for livestock producers,” said Gina McCarthy, assistant administrator for EPA’s Office of Air and Radiation. “But our extensive analysis makes clear that congressional requirements for a waiver have not been met and that waiving the RFS will have little, if any, impact.” Economic analyses of impacts in the agricultural sector, conducted with USDA, showed that on average waiving the mandate would only reduce corn prices by approximately one percent. Economic analyses of impacts in the energy sector, conducted with DOE, showed that waiving the mandate would not impact household energy costs. EPA found that the evidence and information failed to support a determination that implementation of the RFS mandate during the 2012-2013 time period would severely harm the economy of a state, region, or the United States, the standard established by Congress in the Energy Policy Act of 2005. The act required EPA to implement a renewable fuels standard to ensure that transportation fuel sold in the United States contains a minimum volume of renewable fuel. A waiver of the mandate requires EPA, working with USDA and DOE, to make a finding of “severe economic harm” from the RFS mandate itself. This is the second time that EPA has considered an RFS waiver request. In 2008, the state of Texas was denied a waiver. R

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Study on Thermal Death Time of AI Published

ACREC Solutions By Annel K. Greene, PhD, Professor and Center DirectorClemson University Animal Co-Products Research and Education Center

ACREC researchers Laine Chambers (left) and Dr. William C. Bridges Jr. review data for the thermal destruction of

avian influenza in rendering materials.

A study on the thermal destruction of avian influenza (AI) in rendering materials conducted by Clemson University researchers Adam Leaphart, Thomas R. Scott, William C. Bridges Jr., Laine Chambers, and Annel K. Greene has been published in the December 2012 quarterly edition of the Journal of Applied Poultry Research. Raw poultry offal from poultry processing and mortalities can be a source of a variety of bacteria and viruses, including AI. During the rendering process, these animal tissues are heat-processed to kill inherent microbial agents. Since rendered poultry products are used worldwide for animal feeds, it is imperative that AI is destroyed to prevent passing the disease agent to other poultry, livestock, pets, and even humans. Many decades of anecdotal data have always suggested that rendering destroys AI but validation of the thermal conditions required to destroy the virus in the rendering process has been needed for regulatory issues as well as to address potential customer concerns. This study was conducted to validate the time and temperature required for processing poultry offal to destroy AI viral ribonucleic acid (RNA) and to confirm that current rendering cooking processes are sufficient to prevent spread of the disease via rendered poultry products. Poultry materials were collected post-cooker from three rendering facilities in South Carolina, North Carolina, and Georgia and evaluated for crude protein, fat content, and moisture. Crude protein ranged from 21.6 percent to 31.0 percent, fat ranged from 47.8 to 65.0 percent, and moisture ranged from 1.4 to 1.8 percent. Most rendering materials contain considerably higher fat than typical food products and the Clemson University researchers have previously determined that higher fat content can cause difficulties with standard methodology originally developed for and currently utilized in food microbiology. Due to biosecurity restrictions on the receipt and use of live AI strains, the researchers had to design the experiment within regulatory allowances but with material that would still represent typical Type A influenza. A β-propiolactone-inactivated strain of A/Turkey/Wisconsin/68 H5N9 was selected as the test material. This nonviable strain of AI viral RNA has an intact viral capsid as well as AI viral RNA. It was allowed for use under Biosafety Level 2 conditions available at the Clemson University Veterinary Diagnostic Laboratories in Columbia, SC. Using the selected AI strain, the initial step in the study was to verify ability to detect the virus in high fat rendering materials. During the initial months of the study, Scott developed an enzyme-linked immunosorbent assay detection test that is a common and effective method of measuring virus levels. However, Scott determined the unique high fat qualities of rendering materials interfered with use of this type of test procedure. Therefore, it was determined another method of detection would be needed to determine thermal destruction of the viral RNA.

Scott consulted with Leaphart and a wholly different test procedure was then utilized to detect intact viral RNA. This test procedure, known as real-time reverse-transcription polymerase chain reaction (PCR) is a highly sensitive method that utilizes technology to amplify very low copy numbers of RNA to create thousands to millions of copies of the sequence. Techniques for detection of these sequence copies were subsequently used. In this methodology, even if the sequence is present in the sample in only very small levels, amplifying it will allow its detection. After multiple preliminary experiments using the high fat rendering material matrix and the test strain of AI, it was determined the PCR technique was capable of detecting very low levels of the AI viral RNA in rendering materials. After determining the methodology capable of detecting the viral RNA, the next step in the study was to add the test strain with its viral RNA to poultry rendering materials and heat process the materials across various times and temperatures. Using custom-made stainless steel tubes and poultry rendering materials collected from South Carolina, North Carolina, and Georgia, the study was conducted at temperatures of 80 degrees Celsius (C) (176 degrees Fahrenheit (F)), 100 degrees C (212 degrees F), 110 degrees C (230 degrees F), 120 degrees C (248 degrees F), 130 degrees C (266 degrees F) and 140 degrees C (284 degrees F) for times ranging up to 120 seconds. Controls for the experiment included heated, non-dosed samples of rendering materials as well as unheated, dosed samples. After completion of the experimental phase, statistician Bridges analyzed the data. Experimental results indicated that with a thermal treatment of 30 seconds or longer at 100 degrees C (212 degrees F) or 15 seconds or longer at 110 degrees C (230 degrees F), “the RNA of low-pathogenicity avian influenza virus A/Turkey/Wisconsin/68 H5N9, equivalent to six log10 of viable virus, was destroyed within the poultry rendering

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materials.”1 The thermal treatment conditions reported by the rendering industry in the United States and Canada indicate rendering materials are treated for a minimum of 30 minutes with a cooker exit temperature of at least 118 degrees C (244.4 degrees F).2,3 Therefore, according to the published validation experiment, the thermal treatment applied during the rendering cooking process is more than sufficient to destroy the AI viral RNA. In addition, due to the test methodology used, the results of the PCR assay for the experiment actually indicated the entire RNA strand was completely destroyed, or in other words, all Type A influenza RNA was destroyed under these time/temperature conditions in poultry rendering materials. The thermal destruction time/temperature values determined were higher for rendering materials than the thermal destruction values previously noted for destroying AI within poultry breast meat and eggs; however, this difference was attributed to the much more complex matrix as well as higher fat content of the rendering materials than the poultry food products. Researchers Greene, Bridges, and Chambers, along with Dr. Xiuping Jiang and PhD graduate students M. Melissa Hayes and Yubo Zhang, are continuing studies on thermal death time to validate the time/temperature requirements for destruction of recognized animal feed pathogenic strains of Salmonella as well as for destruction of the sporeforming bacteria Clostridium perfringens. As noted in the AI study, the unique chemical composition of rendering materials (i.e., high fat content) has required modification of test procedures to allow accurate enumeration and identification of the pathogens. This work is continuing in order to provide the rendering industry with solid validation data for pathogens of concern. R

References:1. Leaphart, A.B., T.R. Scott, S.D. Chambers, W.C. Bridges Jr., and A.K. Greene. 2012. “Investigation of AI viral ribonucleic acid destruction in poultry co-products under rendering conditions.” Journal of Applied Poultry Research 21 (4):719-725.2. Pearl, G.G. 2004. “Rendering 101.” Render 33 (4):30-39.3. Meeker, D.L., and C.R. Hamilton. 2006. “An Overview of the Rendering Industry.” In EssentialRendering, edited by D.L. Meeker. 1-16. Alexandria:National Renderers Association.

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Tech Topics By Terry L. Joubert, microbiologist, T.L. Joubert and Associates, Inc.

Nitrification Basics for Wastewater Systems The rendering industry has a specific challenge not encountered in most wastewater systems in the form of handling unusually high amounts of ammonia in meeting effluent discharge compliance. When plants and animals die in nature, they are mainly degraded by bacteria and the nutrients are recycled back to nature. Nature has a way of self-correcting itself to keep everything in balance. One major source of correction or adjustment is nitrification. Nitrification is defined as the biological or biochemical removal (oxidation) of ammonia (NH4

+) by certain bacteria in the presence of oxygen. This special group of bacteria are called “nitrifiers,” “nitrifying bacteria,” or “nitrification bacteria.” Wastewater generated by the rendering industry along with other protein-related food processing industries will generate high levels of ammonia due mainly to the biological breakdown of proteins. This process generally proceeds as proteins are degraded to amino acids through the action of special enzymes called proteases. Amino acids are further degraded to organic compounds with the generation of ammonia through a process called deamination. Deamination of amino acids can proceed under both aerobic (with oxygen) and anaerobic (without oxygen) conditions. The generation of the resulting ammonia will be in two major forms, depending upon the pH of the waste. At a higher pH (more than 9.0), ammonia will be in the gaseous form, NH3, and at a lower pH (less than 9.0) in the water-soluble ammonium ion form, NH4

+. The gaseous form at a higher pH is the most toxic form to humans, animals, and aquatic life. Nitrification bacteria will be interested in the NH4

+ ammonium ion form. Below are the basic process requirements for the nitrification process. 1. Approximately 4.6 milligrams per liter (mg/L) or parts per million (ppm) of oxygen (Environmental Protection Agency 1975) is required for every ppm NH4

+ oxidized to nitrates (NO3-

). Another way of looking at this is 4.6 pounds of oxygen is needed to remove one pound of ammonia. 2. Dissolved oxygen content of at least two mg/L is recommended in the plant in the aerobic zones. Rates above four or five mg/L are generally considered “overkill” and a waste of energy in a conventional setting. 3. Low carbonaceous biochemical oxygen demand (CBOD) is required, preferably less than 50 mg/L. 4. Alkalinity and pH adjustments are needed to maintain proper levels. A safe operating range to run pH would be 7.6 to 8.2 and maintenance of a minimum total alkalinity of 50 mg/L. Nitrification will be sluggish to non-existent at pH levels below six, mainly due to the formation of toxic, nitrous acid (NO2

- ↔ HNO2) in the middle nitrite step.

5. Approximately 7.2 mg/L of alkalinity is required to remove one mg/L of ammonia (NH4

+) while maintaining a minimum baseline of 50 mg/L total alkalinity. 6. Alkalinity boosters are generally needed in low alkalinity wastewaters because nitrification is an acid generating process. Some candidates for use are sodium carbonate (Na2CO3), sodium bicarbonate (NaHCO3), calcium carbonate (CaCO3), caustic soda (NaOH), and lime (Ca(OH)2). Lesser-known alkalinity boosters used with great results are those derived from seawater, which contain beneficial trace minerals needed and stabilized carbonates in the form of magnesium and calcium salts. 7. Proper temperature control is needed to maintain proper growth rates of nitrifying bacteria. Their naturally slow growth rates in comparison to heterotrophic (CBOD removing) bacteria is problematic during cold weather. An ideal temperature range would be 28 to 30 degrees Celsius (C) for full activity. Nitrification proceeds at approximately 50 percent at 15 degrees C, 20 percent at 10 degrees C, and zero percent at five degrees Celsius or less. Wastewater lagoons are most susceptible to temperature inhibition because of larger wastewater volumes and less bacterial concentrations per milliliter.

Inhibition of Nitrification in Rendering and/or Kill Plants The degradation by-products of proteins, fats, and cleaners/sanitizers can challenge nitrification bacteria if not properly treated. Ammonia (high levels), sulfide, and organic acid by-products or intermediates from protein degradation can be inhibitory as well as fatty acids and glycerol (an alcohol) generation from fats, oils, and grease degradation. Sanitizers and cleaners such as quaternary ammonium compounds, surfactants (anionic, non-ionic), and wastewater treatment polymers can produce ammonia, organic acid, and alcohol by-products that can also be inhibitory. These inhibitions are more pronounced in systems without pretreatment and/or anaerobic digesters to lower concentrations of the aforementioned entities prior to aerobic treatment. Even with these treatment steps included, ammonia levels have been observed in some instances to exceed 1,000 mg/L in the influent to the aerobic processes designed to handle nitrification and CBOD removal. High levels of ammonia can cause substrate inhibition (toxicity) of the nitrification process.

Table 1. Classical Equations for the Nitrification Process

NH4+ + Oxygen (O2) + Nitrosomonas spp. → NO2

- + O2 + Nitrobacter spp. → NO3-

(ammonium ion) (nitrite) (nitrate)

Nitrification is an aerobic, acid-generating process, with the following process equations:NH4

+ + 1.5 O2 → NO2- + 2H+ (hydrogen ions) + water + energy

NO2- + 0.5 O2 → NO3

- + energyNH4

+ + 2.0 O2 → NO3- + 2H+ + water + energy (Overall net reaction)

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www.rendermagazine.com Render December 2012 29

Bioaugmentation as an Aid to Nitrification The likelihood of having the benefit of soil runoff or some form of inflow/infiltration is slim to non-existent. As a result, nitrifying bacteria will not be naturally added to aerobic systems. Most wastewater systems in the rendering industry have anaerobic digesters in front of or upstream of aerobic processes and will get zero nitrifying bacteria with the influent. They will simply have to be added to the process from another source.

  One source is to add activated sludge from a similar process containing high numbers of nitrifying bacteria. The other source is to add a commercially available bioaugmentation product. Seeding with another activated sludge source generally will not contribute to the number or activity of nitrifying bacteria needed in the short term. There is also the risk of adding some unwanted bacteria such as filamentous bacteria that can cause some sludge bulking and other issues such as excessive foaming. The best solution is to add com-mercially available nitrifying bacteria to produce the desired nitrification or ammonia removal results. Products containing Nitrosomonas spp. and Nitrobacter spp. are the most common and best rated based on activity (nitrogen removal rates) rather than count value. This is an important point in evaluating products from vendors. Effective products generally have an average range of 500 mg NH3 and 500 mg NO2

- removal per hour per kilogram or liter product. Count values (colony-forming units per milliliter) are hard to obtain due to the difficulty to culture nitrifying bacteria using traditional

plate methods. Trace mineral based bio-stimulants have been extremely helpful in accelerating nitrification rates. This author has observed increased nitrification rates at 10 degrees C with the use of such products.

Conclusion Winter months traditionally offer the greatest challenges in meeting ammonia compliance results. Proper process controls along with the proper activity levels of nitrifying bacteria are

essential. Nitrification can be a challenging process under normal conditions in rendering wastewater plants due to the higher concentrations of ammonia generated compared to municipalities and other industries. The lowering of wastewater temperatures will only exacerbate the common problems encountered. Having the proper insights to process control and knowledge of bioaugmentation solutions will be ultimately helpful. R

Large colony of stalked ciliate thriving in sequence batch reactor under low ammonia conditions at

100 times phase contrast.

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Dealing with a Hostile Employee

Labor and the Law By Mark A. Lies II

Editor’sNote–MarkA.LiesIIisalaborandemploymentlawattorneyandpartnerwith theChicago, IL, lawfirmofSeyfarthShaw,LLP.Hespecializesinoccupationalsafetyandhealth law as well as related personal injury and employment lawlitigation. Legal topics providegeneral information, not specificlegaladvice.Individualcircumstancesmaylimitormodifythisinformation.

Unfortunately, workplace violence is becoming a fact of life in our society. Many employers will eventually have to deal with a hostile employee who may threaten co-employees or customers with verbal and non-verbal conduct. There are a number of actions that the employer must consider in light of existing legal obligations to protect the employees at the workplace, as well as the physical security of the facility. Conversely, the employee may have certain legal protections that must be considered in the employer’s strategy.

Acknowledge Co-employee Complaints While many employers do not have a formal workplace violence prevention policy (although they should have a stand-alone policy or combine it with a general anti-harassment policy), in a majority of situations, co-employees eventually come forward to report threatening or hostile behavior directed toward them or to co-employees. These complaints cannot be ignored and must be promptly investigated. If not, a tragedy could occur.

Commence Investigation It is critical that the employer develop a timely investigation strategy to determine whether the reported threatening or hostile behavior is credible, and if so, what action should be taken. Initially, the investigators should have familiarity with employment law, an ability to conduct a competent inquiry to seek the underlying factual information necessary to make an assessment, and – equally important – the ability to maintain confidentiality. Many employers establish a cross-disciplinary team, including legal, human resources, risk management, and security that will be available to confer on the complaint when received and develop an action plan. At the outset, the employees who come forward with information should be told that the employer will take all necessary action to protect them against retaliation and that the investigation will be maintained as confidential as possible, subject to disclosure in a court or administrative proceeding. While the investigation is proceeding, the employer should consider whether to temporarily suspend (with or without pay) the employee against whom the complaint has been made. This step should be seriously considered when the threats are specific in nature as to the action that is articulated (e.g., “I’m going to come in here and shoot the

entire mailroom.”) or directed at specific individuals by name or groups of individuals by description (e.g., “I’m going to kill Jane Doe or all of the employees from country, religious, ethnic group.”). Removal of the employee during this period will hopefully prevent the occurrence of an incident. The hostile employee should be told not to return to the workplace or to communicate with anyone at the workplace until he or she are authorized to return or engage in such communications.

Police Involvement As the investigation continues, and if credible threat information is received, the employer should seriously consider involving the local police authorities at the earliest opportunity. There is a well-recognized legal privilege to communicate with law enforcement authorities as long as such communication is truthful and made in good faith. In many instances, the police authorities may launch their own investigation and intervene directly to deal with the hostile employee. During the investigation, the employer should inform the employees involved (particularly the “target” employees) that they are free to contact the police if they believe it is appropriate and that there will be no adverse action for filing a report.

Employer Legal Obligations Every employer has a legal duty to prevent violence, and the underlying behavior that may generate it, based upon several different areas of federal and state law. Perhaps the most well-known duty arises out of Title VII of the Civil Rights Act of 1964, volume 42 of the United States Code (USC) section 2000e, which requires an employer to protect its employees against all forms of workplace harassment (e.g., sexual, racial, color, religious, national origin) that may create a hostile or offensive workplace environment. Frequently, employee violence is triggered by such harassing type of behavior, which causes the victim (or the victim’s spouse or relative) to react to the harasser (and sometimes to innocent co-employees or bystanders) with a reflexive anger in the form of verbal outbursts or even physical acts. The same anti-harassment rules apply under the Age Discrimination in Employment Act, 29 USC 621. Under the Federal Occupational Safety and Health Act, 29 USC 650, an employer is required to protect employees against “recognized” workplace safety and health hazards that are likely to cause serious injury or death. The Occupational Safety and Health Administration (OSHA) has identified workplace violence as such a hazard, particularly in the healthcare, retail, and taxicab industries. The agency has issued citations under its General Duty Clause with monetary penalties, alleging that employers have failed to develop appropriate workplace violence policies. OSHA has also issued guidelines that can be useful in developing such programs, which can be found on

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its website at www.osha.gov. In addition to the federal laws, most states have developed liability doctrines under common law (based upon a negligence theory) where an employer may be held liable for the violent acts of an employee if the employer: • negligently hired the employee (e.g., failure to investigate the employee’s work history to determine if there is prior violent conduct); • negligently supervised the employee (failure to warn or discipline an employee who engaged in threatening conduct); • negligently trained the employee (failure to provide training to employees regarding prohibited conduct that may give rise to violence and the consequences of engaging in such conduct); or • negligently retained the employee (failure to terminate an employee who has engaged in acts or threats of violence).

Employee Legal Rights When employers attempt to aggressively enforce a workplace violence policy, they are frequently confronted by federal and state laws that protect employees against discrimination involving mental or emotional conditions that may constitute legally protected “disabilities.” Under the Americans with Disabilities Act, 42 USC 12101, an employer is limited in its ability to screen and reject a potential employee on the suspicion that the individual may become violent because of a mental or emotional impairment. Further, after the employment relationship exists, an employer may have to accommodate a disruptive employee with a mental or emotional disability until such employee engages in conduct that renders the employee “unqualified” to continue to perform the job or that poses a “direct threat” to the safety or health of the employee himself or to other employees. In addition, many state right-to-privacy laws may severely restrict an employer’s ability to obtain information about an employee’s mental or emotional status and relevant activities outside of the workplace that might be essential in determining whether an employee poses such a risk. Employees may also have rights under the Family and Medical Leave Act,

29 USC 2601, or its state equivalent, to take unpaid leave for a “serious health condition” that could include treatment for conditions such as depression, bipolar disorder, attention deficit hyperactivity disorder, and other behavioral health conditions.

Reaching a Conclusion Assuming that the investigation identifies credible information of threatening behavior, the employer must timely conclude its investigation and

decide the action to be taken, including a verbal warning, written warning, suspension with a requirement that the employee seek medical treatment and present a fitness for duty certification before returning to work, or termination. The investigation information should be documented and preserved in the event that litigation arises. To buttress its decision, the employer may wish to engage a mental

Continuedonpage32

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health professional who is experienced in threat assessment and qualified to provide forensic testimony. A threat assessment can frequently corroborate the employer’s own assessment that the threat is indeed credible. The medical opinion can also undercut a subsequent contention that the employer’s assessment was based upon stereotypes of mental or emotional disabilities and an unlawful motivation for an employment decision to defend an employment discrimination complaint.

Termination Scenario Assuming that the decision is made to terminate, the employer may seriously consider termination by telephone (confirmed in writing) or by letter. There is no requirement to terminate an employee in person, particularly where the individual may threaten or harm the person who conducts the termination or gets loose within the workplace to retaliate against those employees whom the hostile employee suspects to have made the complaints. If the termination is done by letter, the employee should be informed in the letter that the investigation is complete, that it has revealed violations of company policies (identify them), and that the employer must regretfully terminate the

employment relationship. The employee should also be told not to return to the premises or to communicate directly or indirectly with any employees at the workplace. The letter should also identify a contact person at the company for completing any benefit documentation (e.g., insurance coverage). Finally, the employee should be told that any personal property would be returned to their residence by common carrier. At the same time that the termination correspondence is being sent to the employee, the employer may also wish to notify the police authorities that the termination is occurring and that additional patrols in the workplace neighborhood would be appreciated. The employer should also consider enhancing worksite security after the termination, including restructuring access to the worksite, changing security access codes, and hiring outside security or off-duty police for a short period after the termination to reassure the remaining employees and provide rapid response capability if the terminated employee returns to the site seeking to retaliate. There is no one guaranteed process to deal with a hostile employee. If the employer follows the guidelines outlined above, it should substantially reduce its liability for an incident resulting from the termination of a hostile employee. R

Labor Continuedfrompage31

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Rendered Products in Feed the Focus of Symposium The 2013 International Production and Processing Expo (IPPE) will feature an international rendering symposium entitled “Using Rendered Products to Combat High Feed Costs.” The program is co-sponsored by the National Renderers Association (NRA) and the United States (US) Poultry and Egg Association. “The main focus of the symposium this year is combating high feed costs,” said Dr. Jessica Meisinger, director of Communications and Education for NRA. “This program will include many nationally recognized speakers discussing very important and timely issues for the feed industry.” The US rendering industry collects and safely processes more than 50 billion pounds of animal by-products each year. Through this process, the industry converts these materials into fats and proteins used in animal feed. The rendering industry provides services for the safe collection of these materials, transports the materials in biosecure, leak-proof trucks, and uses heat (240 to 290 degrees Fahrenheit) to dehydrate and separate the fat and solid materials. This extensive process builds on the need to include safety and quality into a rendered product. Program topics will include the safety and quality of rendered products, innovation in the rendering industry, rendering as a green industry, quality assurance in manufacturing rendered products from a supplier perspective, controlling Salmonella in feed, production profile of rendered protein meals in Latin America and its market needs for the pet food market, and presentations about feeding rendered products to pets, aquaculture, poultry, and swine. IPPE will serve as the umbrella for the joint US Poultry and Egg Association, American Feed Industry Association, and American Meat Institute 2013 Expo in Atlanta, GA, January 29-31, 2013. The International Rendering Symposium is Thursday and Friday, January 31 and February 1. The conference agenda can be viewed at http://www.ipe13.org. R

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Mark Your Calendar

F A S T • S M O O T H • E F F I C I E N T

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January 2013Association of American Feed Control Officials Midyear MeetingJanuary 22-24, Albuquerque, NM • www.aafco.org

International Production and Processing ExpoFormerlytheInternationalPoultryExpoJanuary 29-31, Atlanta, GA • www.ipe13.org

February National Biodiesel Conference and ExpoFebruary 4-7, Las Vegas, NV • www.biodieselconference.org

Cattle Industry Convention and National Cattlemen’s Beef Association Trade ShowFebruary 6-9, Tampa, FL • www.beefusa.org

MeatExpo’13February 10-13, Las Vegas, NV • http://meatxpo.org

Aquaculture 2013Organized by the World Aquaculture SocietyFebruary 21-25, Nashville, TN • www.was.org

Pacific Coast Renderers Association 81st Annual ConventionFebruary 22-24, Carmel Valley, CA • E-mail [email protected]

March8th Annual World Biofuels MarketsMarch 12-14, Rotterdam, the Netherlands • www.worldbiofuelsmarkets.com

International Aboveground Storage Tank Conference and Trade ShowMarch 13-15, Orlando, FL • www.nistm.org

Canada Alters BSE Surveillance Program It has been more than nine years since the discovery of bovine spongiform encephalopathy (BSE) in Canada and although confirmed cases both in Canada and globally continue to decline, BSE surveillance remains important to the Canadian Food Inspection Agency (CFIA) and the country’s cattle industry. As more foreign markets open up for Canadian beef, the Canadian Cattlemen’s Association says it is critical for the industry to be vigilant and continue to participate in BSE surveillance. To encourage a much higher level of participation, CFIA has made changes this year to the Canada and Alberta BSE Surveillance Program (CABSESP). Starting November 1, 2012, the CABSESP will once again be accepting cattle in Alberta that are over 30 months of age without an upper age limit that are down, diseased, dying, or deceased. The previous restriction of a 30-day possession has also been eliminated. As such, cattle producers can now submit their animals for testing as long as they are over thirty months and fall into any of the high-risk categories. All other eligible criteria for the high-risk categories as well as the $75 reimbursement to producers to have an animal assessed are unchanged. Cattle producers with eligible animals are encouraged to call a licensed veterinarian certified by Alberta Agriculture and Rural Development to assess the animals at no cost. It is expected these new changes will result in more cattle being tested for BSE in Alberta. The CFIA has reported that national BSE surveillance numbers have dropped in recent years. In 2005, more than 57,000 samples were collected from cattle with only a slight decrease the following year. By 2008, the numbers had declined to about 48,000 samples. The downward trend appears to be continuing this year. By the end of September, there were 19,943 samples collected compared with 27,429 collected during the same period in 2011. R

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People, Places, and...

Meeker Elected USAHA President David Meeker, PhD, MBA, was recently elected president of the United States Animal Health Association (USAHA). He is currently senior vice president, Scientific Services, National Renderers Association. Meeker represents the industry at-large on the USAHA executive committee and brings a strong b a c k g r o u n d i n a n i m a l a g r i c u l t u r e , with diverse e x p e r i e n c e with a number of agriculture organizations. He has held positions with the National Turkey Federation and National Pork Producers Council, was director of the Board on Agriculture and Natural Resources at the National Academy of Sciences, and was an associate professor at The Ohio State University. Over the past three decades he has served as an advisor and consultant to numerous governmental, professional, and business organizations in the United States (US) and internationally. He is a member of the scientific advisory panel to the World Renderers Organization, and a member of the US Department of Agriculture Secretary’s Advisory Committee on Animal Health. He received his multiple degrees from Iowa State University. Other officers elected to USAHA include Stephen Crawford, DVM, New Hampshire state veterinarian, president-elect; Bruce King, DVM, Utah state veterinarian, first vice president; David Schmitt, DVM, Iowa state veterinarian, second vice president; Boyd Parr, DVM, South Carolina state veterinarian, third vice president; and Annette Jones, DVM, California state veterinarian, treasurer. David Marshall, DVM, North Carolina state veterinarian, will remain on the executive committee as immediate past president.

Darling, Griffin Launch New Brand Darling International, Inc. and Griffin Industries, LLC recently announced the launch of DAR PRO Solutions, a Darling/Griffin Brand. DAR PRO Solutions offers premium recycling services to the food service and restaurant industries in all 50 states, repurposing inedible meat and cooking oil by-products into globally-marketed animal feed nutrients, renewable fuels, and ingredients used in a diverse range of commercial and industrial applications.The DAR PRO Solutions brand brings a streamlined efficiency and unified identity to the products, services, and expertise Darling and Griffin have been providing their rendering and restaurant industry customers for over a century. The merging of these two well-established heritages within the rendering industry under one unified brand promises a greater national network for the future and the opportunity to focus on providing quality service to their customers.

Economic Impact of US Poultry Highlighted The United States (US) Poultry and Egg Association, National Chicken Council, National Turkey Federation, and United Egg Producers have released a new economic impact study and four new websites that highlight the positive impact the poultry industry has on jobs, wages, and federal and state revenue in the United States. A dynamic and integral part of the national economy, the poultry industry collectively provides 1.3 million jobs, $63 billion in wages, $265.6 billion in total economic activity, and $23.4 billion in government revenue. The study breaks down poultry into three subcategories: chicken, turkey, and eggs. Key economic data from each are as follows. • The chicken industry provides one million jobs, $47 billion in wages, $197.5 billion in economic activity, and $17.2 billion in government revenue. • The turkey industry provides 147,890 jobs, $6.9 billion in wages, $29.5 billion in economic activity, and $3.1 billion in government revenue. • The egg industry provides 123,100 jobs, $6.1 billion in wages, $25.8 billion in economic activity, and $2.1 billion in government revenue. The data is hosted on interactive websites that can be viewed collectively or by individual product, and then sorted nationally by state, congressional district, state house district, or state senate district. For information about the US poultry industry’s economic impact, visit www.poultryfeedsamerica.org, www.chickenfeedsamerica.org, www.turkeyfeedsamerica.org, or www.eggsfeedamerica.org The economic impact study was funded by US Poultry and conducted by John Dunham and Associates, based in New York City, NY, and uses data from 2012.

Novus Seeks to Expand Ethoxyquin Use Novus International, Inc. is working together with the Food and Drug Administration in an effort to develop and file a petition to expand allowable use of ethoxyquin to better preserve rendered products. In support of its customers and industry, Novus hopes to obtain a mutually beneficial outcome for the recommended use of Santoquin in the United States. Santoquin is a heritage product for Novus with over 50 years of safe and efficacious use worldwide. “As a leader in the antioxidant industry, we believe it is important to step out on behalf of our customers and file the petition and outline the challenges our customers face in managing feed ingredients,” said Carlos Gonzalez, senior manager of Novus Regulatory Affairs. “At present, there really isn’t a suitable substitute for ethoxyquin in the market.”

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Validus to Acquire Certification Provider Validus Ventures, LLC and the Facility Certification Institute (FCI), Inc. have reached an agreement whereby FCI and all of its contracted auditors will become a division of Validus. FCI was founded in 2001 to provide auditing and certification services for the American Feed Industry Association (AFIA) when it created the Restricted Use Protein Products (RUPP) program to meet the challenges of the emergence of bovine spongiform encephalopathy that began in Europe in the late 1990s. The program allowed North American-based feed and feed ingredient companies the ability to be audited and certified by an independent, third-party organization. Since 2001, FCI has added auditing and certification programs for the North American Spray Dried Blood and Plasma Producers Association, working with AFIA to form the Plasma and Hemoglobin Program. FCI then partnered with land-grant universities to create the first United States-based hazard analysis and critical control point auditing and certification program for the feed industry, followed by the Animal Protein Processor Industry (APPI) Code of Practice. In 2005, FCI started providing auditing services for AFIA’s Safe Feed/Safe Food Program, expanding to both auditing and certification in 2012. Validus, an ISO 9001 certified company based in Urbandale, IA, assists food companies and producers by providing specialized services at the farm level. These services focus on social responsibility in the areas of animal welfare, environment, food safety, worker care, and biosecurity. Since 2001, the company has conducted thousands of on-farm assessments and audits and has worked with clients to create and implement long-term solutions that safeguard operations while opening them to profit from new, expanding markets. The final transfer of business is scheduled to take place on December 31, 2012. AFIA and APPI have selected Validus/FCI as an ISO 65 qualified auditing body to continue auditing and certifying both groups’ programs. “Validus is a true independent, third-party organization which has no conflict of interest in adding FCI to their organization,” stated Richard Severson, president of FCI. “We have been assured Validus has no plans to add any lines of business which would present the potential of a conflict of interest by marketing services or products to the same customers for which they will be providing auditing and certification services. Conflict of interest concerns are a primary requirement to meet the proposed FDA [Food and Drug Administration] guidelines and ISO 65 requirements in independent, third-party certification programs.”

Valley Proteins Buys Perdue Plants Perdue AgriBusiness has sold its rendering plants in Accomac, VA, and Lewiston, NC, to Valley Proteins, Inc. of Winchester, VA. Both facilities have about 75 employees each. Valley Proteins will operate both plants while Perdue continues to send raw materials to the facilities, which are located adjacent to Perdue processing plants. “Although our rendering business has been a successful, profitable business for us, our ability to continue growing the business is limited,” said Perdue representative Julie DeYoung, adding that as a leader in the rendering industry, Valley Proteins “has a greater ability to help those facilities grow.” Valley Proteins collects and recycles used restaurant grease and inedible animal by-products into feed fat, meal products, and biofuels.

Ridley Purchases Leading Renderer Ridley Corporation, Ltd. of Melbourne, VIC, Australia, is acquiring BPL Melbourne Pty, Ltd. for $77 million (Aus), further strengthening Ridley’s ingredient sourcing capability. BPL is Victoria’s leading renderer of poultry and mammalian by-products and is being sold by the Baiada poultry group, the largest customer of Ridley’s poultry feed business. The BPL rendering facility is located adjacent to Baiada’s poultry processing plant. Raw material supply agreements have been agreed upon as part of the acquisition. BPL plays a major role in providing essential ingredients for a variety of uses, including meat and bone meal used for livestock feed, fertilizer products, pet foods, as well as pharmaceuticals and other chemicals. The company has a total capacity to process 240,000 metric tons per year and generates annual revenue in excess of $70 million. Ridley Corporation is Australia’s largest provider of high performance animal nutrition solutions and value added solar salt.

Dr. Tom Scott (left), dean of the Clemson University College of Agriculture, Forestry, and Life Sciences, presents outgoing Fats and Proteins Research Foun-dation Chairman Carl Wintzer, G.A. Wintzer and Son Co., with a special Clemson University limited edition Goebel tiger in appreciation of his service on the Animal Co-Products Research and Education Center Governing Board.

Wintzer Honored

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ENDERRThe National Magazine of RenderingThe National Magazine of Rendering

ENDERRThe National Magazine of Rendering The International Magazine of Rendering

American Fats and Oils Association . . . . . . . . . . . . . www.americanfatsandoilsassociation.comAmerican Feed Industry Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.afia.orgAmerican Meat Institute . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.meatami.comAnimal and Plant Health Inspection Services . . . . . . . . . . . . . . . . . . . . . . . www.aphis.usda.govAnimal Agriculture Alliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.animalagalliance.orgAnimal Protein Producers Industry . . . . . . . . . . . www.nationalrenderers.org/biosecurity-appiAssociation of American Feed Control Officials . . . . . . . . . . . . . . . . . . . . . . . . . . www.aafco.orgAustralian Renderers Association . . . . . . . . . . . . . . . . . . . . . . . . . . . www.ausrenderers.com.auCanadian Renewable Fuels Association . . . . . . . . . . . . . . . . . . . . . . . . . . . .www.greenfuels.orgEuropean Fat Processors and Renderers Association . . . . . . . . . . . . . . . . . . . . . .www.efpra.euFats and Proteins Research Foundation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .www.fprf.orgFood and Drug Administration (FDA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .www.fda.govFDA Animal and Veterinary . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.fda.gov/animalveterinaryNational Biodiesel Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.biodiesel.orgNational Cattlemen’s Beef Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.beefusa.orgNational Grain and Feed Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.ngfa.orgNational Pork Producers Council . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.nppc.orgNational Renderers Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.nationalrenderers.orgNational Renewable Energy Laboratory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.nrel.govOccupational Safety and Health Administration . . . . . . . . . . . . . . . . . . . . . . . . . www.osha.govPet Food Institute . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.petfoodinstitute.orgProcessed Animal Proteins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .www.papinfo.euU.S. Animal Health Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.usaha.orgU.S. Department of Agriculture (USDA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.usda.govUSDA Food Safety and Inspection Service . . . . . . . . . . . . . . . . . . . . . . . . . . . www.fsis.usda.govUSDA Foreign Agricultural Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.fas.usda.govU.S. Poultry and Egg Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.poultryegg.orgUnited Kingdom Renderers Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.ukra.co.ukWorld Renderers Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.worldrenderers.org

Industry Websites

Reach your customers...By advertising in Render magazine! Six times a year Render is read by thousands of potential clients and rates have remain unchanged since 2007! Why wait?

Call(530) 644-8428

e-mail: editors@ rendermagazine.com

www.rendermagazine.com/media_kit

Send old and new address to:P.O. Box 1319, Camino, CA 95709-1319

Fax: (530) 644-8429www.rendermagazine.com/subscribee-mail: [email protected] MOVING??

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Dupps Protein

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• Along with the most experienced service and support team in the industry, we maintain the largest inventory of maintenance and repair parts to ensure fast, dependable service and dramatically reduced downtime.

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