Strategic Review of Corn Starch Industry & Markets

This report is a comprehensive document with detail information and industry data along with description of how industry or plants are managed. Report includes detail review of several areas that cannot be found in other publications. It is also a very informative representation of production, markets, products, costs, capacity and the players in the US. The data sets of sweeteners, starch derivatives, co-products and the impact of trade regulations are provided. None of this is available in any currently marketed reports, as we have attempted to compile in this report. In the last section of report is a complete list of plants of small to large global players of this industry. We provide deep insights into how this industry operates its costs, products and markets; an insider's view with almost 100+ yrs. of experience of our associates. Our expertise in technology and marketing includes several aspects of this industry, several assignments in the operations, research and development; marketing and technology transfer in the U.S. and Europe. A great tool for current and future processors, suppliers, customers and an excellent resource to train new professionals in various functional departments within an organization or those who desire to enter this industry.

Starch processing and refining plants are highly sophisticated bioprocess operations that produce range of products (listed in Corn Annual) such as citric acids, lactic acids, lysine, threoninie, xanthan gums, erythritol, sorbitol, xylitol, mannitol, hydrogenated starch hydrolyzates, maltodextrins, glucose hydrolyzates and the most recent nutritional products Sucromalt (more on this later). DuPont's 1, 3 propendiol (PDO) a monomer for 3 GT polymer an alternative to synthetic fiber and Cargill Dow's polylactate for biodegradable film to replace plastic film are other examples that can replace petroleum based products, there will be many more to come such as integration of wet and dry milling could be one of the major changes. Further merging of these technologies with petroleum refining model will enhance the contribution of this bioprocessing industry to renewable fuels.

Corn processing industry has undergone many evolutionary changes and is currently under tremendous pressure to maintain/improve margins. Late last year, finally National will become a business of Akzo Nobel. Our understanding is that National will be managed as an independent business unit. Recent demand on starch from ethanol has greatly enhanced the margins including HFCS. The HFCS demands have flattened due to concerns of obesity and glycemic trends. Corn ethanol production and co-products increased dramatically from 2003 to 07.

In the area of starch nothing significant has happened in the sense of paradigm shift since introduction of waxy in the 40'sand high amylose in the 50's. There are number of promising new product areas such a Novation/natural series of products to provide alternatives to chemical modifications and new hybrids with specific functions via biotechnology that are creating opportunities for high value new business segments. Modified starches and the derivatives present excellent opportunities to grow value added high margin specialties. Our separate detail report on Global Modified starches 09 can be excellent source.

Researcher: Sakharam K Patil, Ph. D., S. K. Patil & Associates