The European Starch Industry Association (AAF) represents 24 starch companies across Europe. In 2010, these companies: - Processed 22 million tons of raw materials like cereals and potatoes into starch products. - Produced 9.9 million tons of starch, generating €7.7 billion in annual turnover and employing over 14,000 people. The AAF sees opportunities in the end of the EU sugar regime in 2015, growing bioeconomy initiatives, and recommendations from the High Level Forum on the food supply chain. However, compliance costs from EU regulations on food, feed, and the environment, as well as international competition pose threats to the industry. The AAF supports dialogue to address these challenges.

1. THE EUROPEAN STARCH INDUSTRY ASSOCIATION -
AAF AND ITS EU PUBLIC AFFAIRS PRIORITIES
Jamie Fortescue – Managing Director
27 June 2012

2. Key figures*
Processing 22 million tons of raw materials
(i.e. 15 million tons of cereals and 7 million tons of
starch potatoes)
9,9 million tons of starch products
24 companies - 69 plants
€7,7 billion total annual turnover
14 400 direct jobs
€860 million investment in Europe, * 2010 data
except last line
with R&D of €104 million 2008-2010

3. Members’ location
AAF MEMBERS HAVE
PRODUCTION FACILITIES
IN 21 OUT OF 27
EUROPEAN UNION
MEMBER STATES
Legend:
Producing Member States
Non-starch producer
Non-EU member

4. AAF’s membership
Full Members
- Agrana Stärke (*) - Skrobany Pelhrimov
24 COMPANIES - AKV Landholt - Südstärke
- Altia Corporation - Sveriges Stärkelseproucenter
- Amilina Förening-Lyckeby Stärkelsen
- Avebe Group - Tereos Syral (*)
- Beneo Remy - Tate & Lyle
- Cargill - Wielkopolskie Przedsiebiorstwo
- Chamtor Przemyslu Ziemniaczanego (WPPZ)
- Copam Associate Members:
- Crespel & Deiters
- Emsland Stärke - British Starch Industry Association
- Finnamyl - Czech Starch Association
Legend: - Hermann Kröner - Fachverband der Stärke Industrie
- 12 companies - Hungrana - Finnish Starch Manufacturers
producing cereal based
- Jäckering Association
starch products
- 9 companies producing - Kartoffelmelcentralen - Humaiz (Spain)
potato starch
- National Starch & Chemical - USIPA (France)
- (*) 3 companies
produce both cereals and - Roquette Frères (*) - VNFG (The Netherlands)
potato starches

5. Starch production in the EU – 2010
Processed raw Starch products in starch
materials equivalent
31,7% 34,3% 14,2%
38,3%
Potatoes Wheat Potatoes
Wheat
Maize
Maize
34% 47,5%
Total : 22 Mio tons Total : 9,9 Mio tons

6. Applications of starch and starch derivatives
(EU market segments - 2010)
Pharma.
and chemicals Other non-food
Confectionary and drinks
6% 4%
31%
29%
Corrugating
and paper making
1%
29%
Feed*
Processed food
Total Market : 9 mio tons in 2010
* Excluding co-products amounting to about 5 million tonnes

7. AAF public affairs priorities
• Opportunities
– End of EU sugar regime
– Bio-economy
– HLF on food supply chain
• Threats
– EU food/feed/environment law compliance costs
– International competition
– Potato starch

8. Opportunity -EU sugar quotas
• Isoglucose – 5% of sugar quota equating to
690,000 tonnes
• Full support to proposal to end quota in 2015
• Potential of 2-3 million tonnes in EU quota
free market
• But no investment without certainty on
timeline

9. Opportunity - Bio-economy
• Established sector in replacing fossil-fuel
components with renewable agricultural raw
materials
• Strong supporter of ‘Europe 2020’, ‘lead market
initiative’, ‘Commission Communication on bio-
economy’
• Active support and participation in CEN work
• EU has R&D knowledge base and other good
foundations
• Need to turn political support into concrete
action or miss out, e.g CAP 2020

10. Opportunity - HLF
• Supporter of the dialogue and the HLF
recommendations
• Not member but through PFP registered
stakeholder in B2B and competitiveness
groups
• Keen interest in what concrete next steps are
expected

11. Threat – compliance costs
• Food/feed law
– Pesticides
– processing aids
– mycotoxins
– additives
– labelling
– GM
• Environment costs
– ETS
– REACH

12. Threat – international competition
• ASEAN
– Thailand – 2 million tonnes of tapioca starch p.a; government subsidised and
particular threat to potato starch and bio-economy
• Mercosur
– Brazil – 1.8 million tonnes of starch p.a (cereals and tapioca); sugar cane in
polyols; 100 million Euro investments planned
• India
– 5th largest grower of tapioca, overproduction of polyols, subsidised starch
industry
• China
– Anti dumping/subsidy case – EU potat starch
• EU/US HLG
– massive economies of scale for US corn starch
• Rules of origin
• Customs duties needed to preserve EU competiveness

13. Threat – potato starch
• End to EU support in July 2012
• Likely 40% decline in market
• Industry accepts end to EU support (as should
sugar industry in sugar market !)
• Any future recoupled Member State support
must not distort fair competition in the EU

14. Thank you for
your attention
Any questions?