PRESIDENTS REPORT 2000
Gary G. Pearl, D.V.M.

Finding the Magic Combination for Success!

There is no other industry that can compete with that of the rendering industry in respect to the importance of its service and function while receiving the degree of criticism, challenges and lack of respect for what it contributes. Said that the industry is to be commended for the continued success, toughness and attention to details. Additionally as I have stated many times there is no industry that can compete with the congenial, honest and resourceful persons that make up the rendering industry. Thus the basic resources to absolve all challenges are in place.

From the time we are born we take certain roles in life. We all start out as son or daughter. Over time we take on other roles. Some of those roles we are forced to accept like being a student, brother or sister. Others we have an opportunity to choose, like husband or wife, church member, parent, veterinarian or being a renderer. The roles that we choose define what and who we are. Core values and basic beliefs that you bring to these chosen “jobs” become your life’s foundation. They are the building blocks of your personal and professional success. The roles that become most important to you are those areas of your life that you are most passionate about. Certainly in most cases family and spiritual beliefs rank high in passion. But it goes without saying that passion for the importance of rendering to your lives has been a driving force. Or you would not have persisted. This is why you have done it well and with the actions of dedicated work, discipline and the pursuit of higher standards.

Our passions however are challenged during times of adversity. The “fire” doesn’t burn quite as hot with fat prices sub-ten cents per pound and animal protein prices even below their nutritional contribution values. Passion alone will not solve all adversities. Passion alone is just an ignition switch. Attitude becomes equally important to keep our passion from fading. Attitude can and will sustain you through difficult circumstances. Attitudes generated from mis-trust, a poorly focused mission, a feeling that no-one really cares, or that everyone and every regulation is against us are challenges to our passions regardless of how deep they run. Negative or ill-devised attitudes can destroy passions. More importantly they can destroy positive actions.

Passion is necessary. Attitude is critical. But action is where it all gets fixed. The action step is the outward commitment to make something happen. Action is often the commitment to change. Action requires courage and demands discipline. Great accomplishments are not achieved overnight. Jonas Salk was a research scientist given the challenge of working with paralyzed infants. He committed himself to finding a vaccine for polio and spent eight years conducting trial after trial to complete his quest. In 1955 when human testing of the vaccine proved effective, Salk was deemed a miracle worker. His action was methodical, slow and calculated but successful and heroic.

Certainly all missions and objectives cannot be as precisely defined or as successful as Dr. Salk’s. There are numerous references to be recited of entire careers in which research expectations were never achieved. Therefore it is so important that a research organization like FPRF focus its resources on the things that “count” with the membership majority. FPRF cannot be everything for everybody! But with a focused mission, operating policies and activities that dictate direction, an attitude and image of success and the passion that historically has been evident from the rendering industry adversities will be just another opportunity.

Research

Research has been directed towards the current industry issues while addressing the important nutritional objectives. All projects are directed at resolving specific real problems. In the past seven years approximately ¼ of all projects have involved those of a non-nutritional objective. Investments in these projects have accounted for 40% of total research budget. The Board of Directors has directed that the project investments transition into a placement of approximately 75% that address industry issues and new use applications. Projects addressing biosecurity, biodiesel, soil amendments, odor, SPN and aquaculture has occupied a predominance of staff research time. Requests for Proposals addressing priorities and specific research issues is a procedural change. This procedure can expedite the research process and dictate emphasis on priority issues. It likewise enhances staff time in directing and providing literature review for proposal preparation.

During the 1999/2000 year 27 total projects received funding. These projects involved a total investment of $775,428 of which 64.7% ($501,330) were projects addressing non-nutritional or new use nutritional objectives. Fourteen of the projects were completed last year. Thus thirteen projects remain in progress with only 19.8% ($28,727) committed to a traditional nutrition based objective. A committee structure has been developed to more effectively focus on the identified real problems. Today’s environment necessitates that a more visionary and proactive assessment of issues and potential issues not only be an integral part of research planning but a distinct necessity. These changes and the necessity for participation, input and guidance have never been more important. The charges before the industry and this foundation thus dictate that both a forum and the willingness of participation are available. FPRF has several venues by which participation can be achieved. The membership needs to take active roles in their future. A more proactive approach is indicated in developing the role in where we are going.

Membership

FPRF has focused primarily on members that are active producing and marketing rendered animal products and those that are ancillary to the rendering industry. FPRF currently has 84 Sustaining, Full and Associate members. Membership has decreased by 9 since 1996, due primarily from consolidation or business closures. International based companies make up 15% of the membership. There currently are 48 Sustaining/Full members and 36 Associate (contributing less than $1,000.00). With the exception of packer-renderers and poultry processing renderers the industry is one of consolidation and decreasing numbers. Independent renderers are still the primary supporters and financiers of FPRF.

Membership maintenance at its current level will continue to be a challenge considering the trends in consolidation, termination and packer/poultry processing renderers. International interests are promising FPRF should explore the alternative and feasibility for transitioning into a World Fats and Proteins Research Foundation.

Industry Relations

FPRF has been represented with presentation or committee participation at the following:

• National Biodiesel Board (6)
• AVMA – Aquaculture & Seafood Advisory Committee (3)
• University of Illinois – Animal Science and Veterinary Science Department
• AOCS – Proteins Section
• Mississippi Valley Veterinary Conference
• USDA - New Uses Workshop 306
• AFIA – Nutrition Council (2)
• Rob Shirley’s Masters Degree Dissertation Committee
• APPI – ICE: Basic Animal Nutrition
• International Poultry Conference
• Aquaculture 2000
• AFIA Aquaculture Committee (2)
• Illinois Dairy Issues Committee
• Joint Subcommittee of Aquaculture Issues
• Battelle Memorial Institute
• American Soybean Association
• American Association Swine Practitioners
• Bovine Alliance on Management of Nutrition –
• “Biosecurity of Dairy Farm Feedstuffs” Manual Committee
• USAHA – Committee on Aquaculture
• Maryland Nutrition Council
• National Institute of Animal Aquaculture (LCI)
• APPI – Toronto Meetings
• Central NRA
• NBB – Washington DC Conference
• Animal and Dairy Science Society
• Ohio State University
• Poultry Science Association / World Poultry Science
• USDA/ARS – Biofuels Workshop 307
• United Soybean Board
• US Poultry and Egg – Protein Fat Council Seminar
• National Biobased Products and Bioenergy Conference
• Iowa State University
• Clemson University
• AFIA Quality Council
• Global Soy Forum
• USAHA – Feed Safety Committee
• Future Farmers of America (FFA)
• Council Agriculture & Science Technology
• Bioenergy & Energy Alternatives – National Program Workshop
• National Institute of Animal Agriculture – Emerging Disease Committee

Specific Activities

Scholarship program – Several meetings including a joint meeting of the Department Heads of Purdue, Illinois, Ohio State, Michigan State, University of Kentucky and Iowa State has failed to gain acceptance of a scholarship program directed at generating research ideas for new uses. Issues such as “intellectual property”, confidentiality or proposal opportunities, stipends for advisors and several other issues prompted my attention to other priorities. An alternative – “Innovative and New Use Research Awards” program is being proposed for review.

Technical Services Bulletins were provided nine times during the year along with nine Directors Digests. The information concentrated on odor, burner fuels, biodiesel, dust control and adding value to animal by-products. FPRF contributed to all monthly volumes of the Rendition, Quarterly publishing of ARA – Rendering Circles, three articles of Render, articles published in Feedstuffs, Aquaculture 2000 and the required manuscripts that accompany presentations. All research projects were summarized into Executive Summaries for distribution in October and April. Final reports have been made available on disc when requested.

The discovery of patent pending application has been filed and approved by both Canadian and US Patent offices for the soil amendment project. Dr. George Lazarovits of Agriculture and Agri Canada is listed as inventor. FPRF will be named as a co-agent in holding the patent rights.

Biodiesel/Biofuels

This past year has been monumental for the attention and commercialization of biodiesel as well as biofuels in general. High petroleum prices coupled with lower feedstock prices for fats and oils have been stimulatory. However actions in alternative fuel involving both regulatory and legislatively have been primary. The EPACT, B-20 designation as alternative fuel, ASTM Provisional Standard 121, and completion of the health effects testing were key successes. Successes bring challenges and those challenges have likewise been evident. The marketplace and several characterizations have placed feedstock derivatives above quality standards and specifications. These actions have prevented a unified promotion and attention to Biodiesel. Additionally they have prevented the commercialization and expansion of markets that the current opportunities provide. All of these activities have commanded a considerable time commitment from FPRF.

Research directed at biodiesel has generally met the requirements for establishing the quality, performance and emissions quantifications. Further work is indicated in defining lubricity properties and further reducing nitrous oxide reduction. An enhancement of efforts for assuring and monitoring quality standards is indicated. Additionally assuring an equal regulatory and legislative arena for biodiesel derived from all feedstocks that meet the ASTM standards is a priority. FPRF is not staffed or funded to accomplish this requirement. FPRF is not in a position to lobby legislative and regulatory issues that has and will continue to affect the utilization of animal fats and recycled cooking oils for biodiesel production. FPRF needs to maintain its leadership role, technical presence and respond to the necessary research to allow for the utilization of the approximate 11 billion pounds processed by our industry.

This past year has likewise brought forth the opportunities that exist for the use of these resources for commercial burner fuels and home heating fuels. Development of technical background response to inquiries and researching resources has been an extensive time commitment. Proposals are in place to address the opportunities.

Biosecurity

A major project addressing the effectiveness of North American rendering processes of eliminating common foodborne bacterial organisms in rendered animal products is under way. Both winter and summer samples have been acquired from seventeen cooperating facilities. A report on the projects significance and preliminary results will be presented during the World Rendering Meeting program by Dr. Fred Troutt. A like study addressing a representative grouping of viral agents has been approved awaiting the development of final protocol, logistics and associative costs.

Dr. Annell Greene has completed the “Thermal Death Time – Bacterial Study” and awaits review, interpretation and publishing. Additionally, Dr. Franco and I have been addressing the need to expedite a base line analytical study to evaluate the alleged presence of pentobarbital and perhaps in conjunction with a screening for antimicrobial compounds.

E-Mail / Website

So much e-mail, so little time! Without doubt the FPRF website and availability to e-mail has greatly enhanced the visibility of FPRF globally. The website has been updated quarterly but is not in a state of desired day to day completeness or current contents. Several hundred visits per month are reported. A resultant influx of non-member inquiries and international requests are received on e-mail. This varies from at least two per day to upwards to twenty-two in one day. Sandy has been a primary responder. Telephone and Fax inquiries have likewise increased (Please note telephone expenditures).

Though an excellent position to be in, the FPRF office has not fully conquered the ability to respond to the enhanced information and query requests while attending to all of the other FPRF business. We’re working on it!

Summary

FPRF experienced a very rewarding first year of the new millennium. The restructuring of the FPRF organization and policies, accomplished without interruption has provided for a more efficient, proactive, responsive and involving organization. I thank the officers and the directors for their support and guidance. In particular my thanks to Kevin Custer for his dedication as Chairman the past two years, the commitment of Dean Carlson and Barry Talley in serving as stalwarts on the Board of Directors and as in the past the work done behind the scenes by Chris Newport, Dara John and Sandy Pearl. Thanks to all of the members for their demand for a quality research program to support the industry.

The Fats and Proteins Research Foundation

“Innovative and New Use Awards”

Purpose: To promote and reward original and innovative research that utilizes animal protein and fat co-products as new use and innovative uses resulting in possible new markets.

Awards: FPRF will provide $1,000. Annually in up to five stipend awards of $2,000. Any individual enrolled in any graduate program or is employed as an associate, assistant or Full Professor is eligible. Applications and the required information must be postmarked no later than ____________________.

A Selection Committee appointed by representatives of ASAS, ADSA, PSA, AOCS and FPRF shall make selection of the recipients of the research awards.

Applications, nomination procedures and selection criteria for the awards may be obtained by downloading a copy from the FPRF website www.fprf.org .

Eligibility:

1. Applicants must submit an abstract for presentation at a recognized society meeting. Abstracts must be related to research as outlined in the purpose.

2. Applicants are not limited to the number of abstracts/applications submitted for consideration.

3. Abstracts found unacceptable for publishing/presentation as per the respective society standards will not be considered.

4. Abstracts must be accepted for presentation at specific respective society meetings.

5. In addition the submitted abstract, an expanded abstract not exceeding five pages (characters and spaces) must be submitted.

6. Each application should contain a biography not more than 2500 characters and spaces in length and a citation of not more than 1600 characters and spaces suitable for presenting at an awards ceremony.

7. Entries must be postmarked by ___________________.