Major Issues Affecting the Cottonseed Oil Industry - PowerPoint PPT Presentation

1 / 28
About This Presentation
Title:

Major Issues Affecting the Cottonseed Oil Industry

Description:

Major Issues Affecting. the Cottonseed Oil Industry. Robert M. ... Major corporations (e.g., WalMart) requiring verifiable sustainability polices from suppliers ... – PowerPoint PPT presentation

Number of Views:369
Avg rating:3.0/5.0
Slides: 29
Provided by: diana4
Category:

less

Transcript and Presenter's Notes

Title: Major Issues Affecting the Cottonseed Oil Industry


1
Major Issues Affecting the Cottonseed Oil
Industry
  • Robert M. Reeves, President
  • Institute of Shortening and Edible Oils
  • Presented at the
  • National Cottonseed Products Association
  • 111th Annual Convention
  • Destin, Florida
  • May 5-8, 2007

2
OVERVIEW
  • Trans Fat
  • Biodiesel
  • Federal Regulations
  • Environmental
  • Security
  • Food Labeling
  • Sustainability

3
FDA Food Labeling Regulation (Effective 1-1-06)
  • Requires Trans Fat Content on Label
  • Reason trans fats raise LDL cholesterol,
    therefore cause increased heart disease risk.
  • Applies to packaged foods at retail
  • Stimulated reformulation toward 0 g. trans
    fat/serving throughout retail food industry

4
AMOUNTS OF FAT IN DIET
  • Total Fat 32
  • Saturated Fat 11
  • Trans Fat 2

5
SOURCES OF TRANS FAT IN U.S. DIET
  • 80-85 - Hydrogenation of Vegetable Oils
  • 15-20 - Tissue of ruminant animals

6
(No Transcript)
7
(No Transcript)
8
(No Transcript)
9
(No Transcript)
10
(No Transcript)
11
(No Transcript)
12
TRANS FAT ALTERNATIVES
  • Trait enhanced oils
  • (e.g., low linolenic soy, high oleic canola)
  • Naturally stable oils
  • (e.g., palm, cottonseed, corn, mid oleic
    sunflower)
  • Mixing fully hydrogenated hardstock with
    unhydrogenated oils. Interesterification of
    mixture customizes melt point
  • Modification of hydrogenation process
  • (time, temperature, pressure, catalyst)
  • Gelling or emulsifying agents

13
COTTONSEED OIL AS A TRANS FAT ALTERNATIVE
  • Naturally stable without hydrogenation
  • Enhances flavor of foods cooked in it
  • Low flavor reversion
  • Economically competitive with other oils
  • Good source of essential fatty acids (linoleic,
    linolenic)
  • Beta-Prime crystalline structure promotes
    smooth creamy texture in shortening

14
STATE LAWS AND MUNICIPAL ORDINANCESRESTRICTING
TRANS FATS
  • 20 states have proposed regulations
  • Over 25 municipalities have proposed ordinances
  • New York City Health Code
  • Requires restaurants to reduce trans fat to less
    than
  • 0.5 g/serving in cooking oils, shortenings and
  • margarine, by July 1, 2007
  • All other foods must comply by July 1, 2008
  • (e.g. specialty baking shortenings)
  • Requires restaurants to provide calorie
    information for standardized menu items
  • Over 25 school districts have proposed standards

15
STATE LOCAL TFA RESTRICTIONS
16
SUPPLY AND DEMAND OF MAJOR TRANS FAT ALTERNATIVES
Demand 8 billion pounds (partially
hydrogenated oil subject to
replacement) Supply Billions
(Lbs.) Crop 0.90 low lin
soy 1.25 high oleic canola 1.75 palm
0.60 other stable oils 4.50 Total Resu
lt Large scale demand in short term unlikely to
be met with adequate supplies.
17
(No Transcript)
18
ETHANOL EXPANSION AFFECTING 2007 CROP OUTLOOK
  • Corn plantings for 2007 90.4 M acres (highest
    in 67 years)
  • Corn production 13.8 B bushels in 2007
  • Farm corn prices to average 3.60/bu in 2007-2008

19
(No Transcript)
20
(No Transcript)
21
(No Transcript)
22
(No Transcript)
23
MAJOR CROP PLANTED ACREAGE 2006-2007(Source
USDA April 11, 2007)
  • 2006 2007
  • Crop (M Acres) (M Acres) Change
  • Corn 78.3 90.5 15
  • Soybeans 75.5 67.1 -11
  • Wheat 57.3 60.3 5
  • Cotton 15.1 12.1 -20
  • Rice 2.8 2.6 - 7

24
ENVIRONMENTAL REGULATIONS
  • National Ambient Air Quality Standard for Ozone
    (NAAQS)
  • EPA ordered by Court to propose standard by
    6-20-07 and finalize rule by 3-12-08
  • EPA has proposed a standard of 0.06 ppm ozone
    average over 8 hours (current standard 0.08 ppm
    ozone)
  • Significant implications for generators of
    volatile organic compounds (VOC) and nitrous
    oxide (NO).
  • Edible oil extraction and refinement facilities
    potential generators of VOCs

25
ENVIRONMENTAL REGULATIONS (Continued)
  • Spill Prevention, Control and Countermeasure
    (SPCC) Rule
  • Designed to prevent oil spills
  • SPCC applies to any facility having 1320 gallons
    of oil on hand, (e.g., cottonseed oil mills and
    refineries)
  • Facilities in operation before 8-16-02 must
    maintain existing SPCC plan and amend/implement
    by 7-1-09
  • Facilities in operation after 8-16-02 through
    10-31-07 must prepare and implement by 7-1-09
  • Facilities in operation after 10-31-07 must
    prepare and implement plan before beginning
    operations

26
CHEMICAL SECURITY
  • Chemical Security Bill (S2145) passed 10-4-06 as
    part of Appropriations Bill
  • Department of Homeland Security (DHS) designated
    to establish and enforce security standards at
    chemical facilities to thwart terrorist attacks
  • DHS Interim Final Rule of 4-9-07 requires
    vulnerability assessments, response plans,
    facility registration, etc.
  • DHS screening chemicals of interest which
    include some that may be used in edible oil
    extraction/processing plants (e.g., chlorine,
    hydrogen, ammonia, boron trifluoride)

27
FOOD UNIFORMITY LEGISLATION
  • Requires food labels and warnings by states to be
    identical to federal rules
  • HR4167 passed House by voice vote in September,
    2006
  • S3128 submitted in Senate and hearing conducted.
    No action taken. Bill died in Committee as 109th
    Congress ran out of time. Unlikely to be revived
    under Democratic control of Congress

28
SUSTAINABILITY
  • Major corporations (e.g., WalMart) requiring
    verifiable sustainability polices from suppliers
  • Environmental stewardship principal goal/focus
    areas
  • Ingredients
  • Packaging
  • Energy use
  • Water use
  • Waste management/recovery
  • Emissions
Write a Comment
User Comments (0)
About PowerShow.com