September 30, 2011


Tate & Lyle doubles profits on ethanol byproducts



UK sweeteners and starches group Tate & Lyle announced an "encouraging start" to its financial year, due to the "favourable market conditions" for byproducts of ethanol manufacture.


Tate & Lyle said that its profits from co-products, at about GBP10 million (US$15.56 million), had roughly doubled in the April-to-September period from income a year before.


"We have seen a continuation of favourable market conditions for co-products and in the US we have locked in sales further forward to take advantage of unusually strong demand," Tate & Lyle said.


The market for ethanol plant byproducts has firmed on high prices of traditional alternatives.


Taiwan last week committed to importing 500,000-750,000 tonnes of US co-products in 2012 and 2013, while imports of American distillers grains to the EU more than doubled, to 553,000 tonnes, in 2010-11.


The UK was among the biggest EU buyers, seeing a rise to 114,300 tonnes from 47,300 tonnes, despite the opening of fresh domestic wheat ethanol capacity boosting domestic output of byproducts, which are used in the main as livestock feed.

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