PRESIDENTS MID-YEAR REPORT
October, 1999
Gary G. Pearl, D.V.M.

The FPRF By-Laws state that the President shall make a full report of the affairs and activities of the Foundation at its Annual Meeting. Even without mandate it has always and remains so this year a pleasure to highlight the accomplishments and influence this organization commands. The rendering industry is routinely applauded for its support and guidance of its quality, non-proprietary, proactive approach in scientifically addressing the research needs for its industry. This has only been possible through the adherence to a well focused mission and defined progressive agenda. It requires a supportive Board of Directors, a committee structure that continues to be visionary and a participating membership that is willing to provide resources for the industries research needs. Again this past year these requirements have been very evident in the affairs and activities of the Foundation.

As an addendum to this report and as a request of the Executive Committee a “FPRF - Adaptations For the Future” is being made available in the distributed Board of Directors manuals. Additionally a separate Financial Review has been prepared for distribution.

During the 1998/99 fiscal year, thirty-two (32) individual projects were under various stages of completion. Ten of these were completed with final reports. These projects comprised a total Foundation investment of over three quarters of a million dollars ($771,981.00). Of these twenty-two (22) remain in progress into next year with a remaining $139,981.02 towards their committed completion. Three projects with objectives specific to biosecurity issues were initiated at a total cost of $101,306. A past study demonstrating the effectiveness of the rendering process in inactivating the Pseudorabies Virus was presented and provided to State Veterinarians during the enhanced PRV eradication program. During the past six years, the Foundation has initiated 77 individual research projects.

Research Utilization

The findings of these projects in addition to first being distributed to the supporting membership have been presented both by the grantees and the Foundation to innumerable audiences. Additionally both peer reviewed publications and the popular press utilized FPRF material at a heightened level this past year. The FPRF website (www.fprf.org) has strengthened the communication process but has not reached its full potential as resources and priorities dictate. The FPRF website is visited approximately 20 times weekly with a resultant increase in e-mail information requests.

As per the recommendation to the Executive Committee, a website representing the organizations of FPRF, NRA and APPI could be an enhanced industry service. Individual members have been very effective in utilizing and communicating FPRF information. Notably the Australian Renderers Association (Meat and Livestock Australia) and the International Marketing Representatives need to be referenced. Your president has shared Tech Topic articles in Render and Participates with a regular “FPRF Corner” for Renditions. Rendering Circles has comprised nearly 50% of available text to FPRF information.

The Foundation again this year participated in the Animal, Poultry, and Dairy Science meetings with an exhibit booth structured to be informational to academia, government, commercial nutritionists and veterinarians. Emphasis has been directed to interfacing with “end user” influencers with a resulting decrease in FPRF member contacts. The participation of FPRF as a staff resource to the APPI Institute for Continuing Education and as program speaker exemplifies the continued coordination between the two organizations.

Membership

FPRF currently has 86 members that contributed as Sustaining, Full and Associate members. This is a net loss of 7 from last year. The consolidation of companies and the promise of re-instatement of several past members attributes to the membership decrease. A concerted effort by the officers and staff of FPRF towards recruitment of prospective renderers and associate suppliers has been a year long activity. An activity with disappointing results. Recruitment of new membership and the maintenance of current members needs to remain a priority and will be an ongoing opportunity to the Foundation. A Membership Committee has been proposed as an assist to the activity. A concerted focus on those organizations actively producing and/or marketing rendered animal products and acquiring their support is so very important to the long term strength of FPRF.

Biodiesel

This past year has resulted in more positive biodiesel activities than in the past 7 years of its modern exploration. Regulatory actions both at the federal level and within states recognizing and providing biodiesel opportunities within the regulations of environmental concerns have been extremely positive. The B20 designation as an EPA acceptable fuel for designated containment areas and as an alternative fuel was a major milestone and opened new market opportunities. FPRF provided its data to be used in concert with the National Biodiesel Board (NBB) to support these designations. FPRF Biodiesel consultants were instrumental in obtaining these unexpected actions. The industry has experienced new production facilities and enhanced marketing efforts for biodiesel produced from both the plant oil and animal fat suppliers. NBB has restructured to permit biodiesel marketers and producers as representatives of its board as compared to the exclusive soy association member format. FPRF has been an Associate Board of Director member since 1994.

Biodiesel as it has been developed and by definition is feedstock neutral. Specific marketers have made attempts at uncoupling the origin of feedstock as a specific issue. This effort has been resolved and could have been extremely detrimental and costly to the future development of the biodiesel industry. FPRF maintains research projects that are important to the commercialization and specification development of biodiesel. The Foundation continues to experience an excellent cooperative relationship with NBB, the National Renewable Energy Laboratory, USDA - Office of Energy Policy and New Uses, the USDA/ARS and currently serves on its National Workshop Committee for New Uses, Quality and Marketability of Plant and Animal Products.

Administration

During this past year the Registered Agent, Registered Office and Attorney were changed from Wilson and Mc Ilvaine to Bruce Thiemann. FPRF Annual Reports and registration are filed at 627 Commerce Bank Building, 416 Main Street, Peoria, Illinois 61602. The Foundation has been fully re-instated as a registered Not-for-Profit Corporation by the Illinois Secretary of State.

FPRF has obtained the consulting services of Gordley Associates in Washington, DC with Ms. Krysta Harden as the primary resource for biodiesel activities exclusive of lobbying. Gordley Associates also serves as lobby for the American Soybean Association. Ms. Harden can be given considerable individual credit for the B20 success.

The 1997/98 financial audit was completed by Timothy M. Jeffries, 549 West Coates, Moberly, MO 65270. It was distributed to all Board of Directors, Attorney and made available to all membership upon request. All financials have been presented to the Jeffries firm for completion of the 1998/99 fiscal year.

FPRF carries a Directors, Officers and Trustees Liability Insurance policy with the Valentine Insurance Agency, 630 North Marley, Suite 110D, Moberly, MO 65270. This policy was reviewed this past year for the assurance that a defense endorsement declaration be in the contract. The Valentine Agency is also the carrier of the equipment coverage policy within the FPRF office.

The Foundation has operated this past year with its President, 2 part-time secretaries and a part time accountant. Much credit again needs to be given to Chris Newport, Sandy Pearl and Dara John for their “full” time commitment and interest in the success of your Foundation.

We often express envy in comparing FPRF to other research entities and the resources that are available. The plant sector of proteins and oils have tremendous advantages over the animal sectors. Initially their basic products are comprised of virtually all “edible” components. The various factions of the plant commodity groups are well organized with both marketing and a designated research structure with established funding sources (check-off). Due to various reasons (i.e. regulatory, tradition, ethnic, etc.) approximately 40-50% of all animal production is destined to be labeled “inedible”. Comparatively animal production commodity organizations expend the predominance of their resources on the edible fractions. Producer and processor financing for research and science to support the 40-50% of their production processed as byproducts has and continues to be minimal. The stigma, misconceptions and misrepresentations of the animal byproduct industries are ever present. Unfortunately from sectors that in actuality are an integral component. With this as a reality, the organizations with exclusive missions and objectives of serving the rendering industry must remain focused to their most important priorities. They must coordinate their efforts in a synergistic, proactive non-duplicating methodology. The necessity for collaboration for the exploration of specific objectives and mission has never been more important. FPRFÕs mission is very specific to the conduct of research supportive to the needs and wants of the rendering industry. FPRF as is evidenced by the affairs and activities during this past year from its Board of Directors, committee membership, its members, and its President continue to work towards this objective.