Make the Most Efficient Use of All the Riches of the Land, and Fostering Abundant Regional Fruits of the Field
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1 Special Feature 1 In the Fields Make the Most Efficient Use of All the Riches of the Land, and Fostering Abundant Regional Fruits of the Field Amino acids are known as the source of all life. Over the past 100 years the Ajinomoto Group has provided all sorts of amino acid-related products including umami seasoning AJI-NO-MOTO, the product that forms the foundation of the Group s business, as well as health, pharmaceutical and feed-use products. As the Group thought about how to jointly progress with the bounty of the fields providing the raw materials and the regions that nurture them, in order to continue making these products on a permanent basis, we arrived at a recycling-oriented manufacturing model that makes the most efficient use of the raw materials and helps to create a cycle in which they continue, without any waste, to be used for the benefit of both the human and natural environment. This sustainable mechanism is now the keystone of the Ajinomoto Group s varied and diverse worldwide businesses. Initiatives to return all the fruits of agriculture to the fields where production takes place In the case of umami seasoning AJI-NO-MOTO By-products are turned into organic fertilizers and feeds Nutrition for people Cane molasses etc. Raw materials Nutrition for plants and animals Agricultural, livestock & fishery products Nurturing various local agricultural products The Ajinomoto Group does not merely use the amino acids obtained from fruits of the field such as sugar cane and cassava to make nutritious seasoning for people, such as umami seasoning AJI-NOMOTO. It also uses the by-products resulting from the amino acid production process to make nutrient-rich organic fer tilizer and feed, which fosters life amongst the fields and fishes of the regions. Web There is a movie on our website introducing our initiatives to connect life in the fields in the amino acid production process. (Japanese only) A series of movies that introduce the Ajinomoto Group activities 9
2 o v e r v i e w What s the demand for plant resources? In recent years there has been a growing demand for plant resources as carbon-neutral materials in many fields, such as bioenergy. Considering the limitations of the spaces available for crop cultivation, and the fact that the local farmers have carefully cultivated all the crops, it is vital that the raw materials are used efficiently and without any waste. And it is even more important than before that we do not just take the rich bounty of local regions for the sake of our production, but run our businesses with an awareness that we have to give something back to both the local communities and the ecosystem. The Ajinomoto Group Initiatives Work for Life Recent world trends in grain production volume by crop, and consumption level by use Million tons 2,000 1,500 1, ,936 1, , ,019 2, ,109 2,041 2,099 Rice / / /08 (Year) NB: Of the production volumes, coarse grains, with the exception of corn, include barley, rye and sorghum etc. Of the consumption volumes, industrial use includes raw materials for the brewing of ethanol, starch and beer etc ,124 Production volume Consumption volume Wheat Coarse grains except corn Corn Use in food, seeds etc. Use in feeds Use in industry Source: Compiled from the USDA s Grain: World Market and Trade (August 2007), the IGC s Grain Market Report (June 2007) and other data. Parts of the data are estimates. In order to always provide good taste and healthy lifestyles The Bio-cycle A recycling-oriented framework for amino acid production Pharmaceuticals Specialty chemicals Umami seasoning AJI-NO-MOTO Feed-use amino acids Functional foods Sweeteners Cosmetics etc. At the Ajinomoto Group s amino acid production plants, which are being spread all over Asia, America, Europe and the rest of the world, many different amino acids are produced, such as umami seasoning AJI- NO-MOTO, using the power of microbes to ferment easily o b t a i n e d l o c a l v e g e t a t i v e materials including sugar cane, cassava, corn and wheat. In order to produce amino acid the crops providing the raw materials have to be procured on a continuous basis. The Ajinomoto Group realized that the nutrient-rich liquid (by-product) left over after extracting amino acid from the fermentation liquors is also par t of the precious bounty of the fields, and created a mechanism for continuous creation by returning it to the production region in the form of organic fertilizers and feeds. The mechanism has now been in practice for over thirty years. Covers 70% of the chemical fertilizer (nitrogen content) required by 500,000 hectares of sugar cane fields Recovering by-product as useful resources By-product 1.6 million tons Contributes to reduction in CO2 emissions arising from chemical fertilizer production Umami seasoning AJI-NO-MOTO Products Umami seasoning AJI-NO-MOTO 500,000 tons Organic fertilizer 1.6 million tons Chemical fertilizer Mechanism enabling permanent creation with the local region Nitrogen content B i o - c y c l e Cane molasses (syrup derived from sugar cane) 1.5 million tons 500,000 hectares fields Sugar production plant Absorption of atmospheric CO2 by photosynthesis Harvest 28 million tons Raw sugar 4.2 million tons 38 million tons The chart assumes worldwide annual production of approximately 500,000 tons of AJI-NO-MOTO seasoning produced by the Ajinomoto Group using only sugar cane. The values for sugar cane grown and sugar production represent average global use, while the values for resources used for producing AJI-NO-MOTO and values for by-products are based on actual Ajinomoto Group statistics. Q A What if we made seasoning ingredients from kelp and tomatoes? 500,000 tons 25 million tons 200 million tons Sun Average amount of glutamate extracted from 100 grams of dried kelp for soup Calculated based on 2,240 milligrams per 100 grams Average amount of glutamate extracted from 100 grams of ripe tomatoes Calculated based on 140 milligrams per 100 grams Each year 30,000 tons of dried kelp on average is produced in Japan and 125 million tons of tomatoes throughout the world, so these resources could be exhausted at any time. 10
3 Special Feature 1 In the Fields Co-products, making the most efficient use of the bounty of the fields and The Ajinomoto Group returns nearly 100% of the nutrient-rich by-products arising from its amino acid fermentation process to agriculture, livestock and fisheries to use for fertilizers and feeds, ensuring that these by-products play a role in a seamless cycle of production. The Group sees these by-products as valuable CoProducts, which can be used to ensure co ntinuous procurement from local agriculture and the abundant production of other crops, and continues to practice the recycling-oriented amino acid production that is rooted in the local area. Worker from our FD Green (Thailand) Co., Ltd. Major amino acid production plants and uses of co-products France Used for cattle feed etc. Tilapia Thailand Used for rice and sugar cane, and as a source of nutrition for the cultivation of fish such as tilapia. Indonesia Used for sugar cane, corn, pineapple, rice etc. Amino acid Glutamate Crops used as raw materials Feed-use amino acid (Lysine, threonine etc.), cassava, corn, beets, wheat etc. Other amino acids Co-Products (Examples of types and transformation to resources) By-products Fermented with power of microbes Uses Liquid fertilizer (Asia, North & South Americas), field crops, industrial crops, fruit (Thailand), marine cultivation (to increase plankton) Concentrated Liquid feeds (nitrogen additives) (Europe, North America) fermentation liquor cattle Raw material for solid fertilizers (Japan) Silage enhancers 11 Cassava Cell protein Solid by-products Protein feeds (Europe) cattle, pig Raw material for solid fertilizers Waste activated Soil conditioners carbon, excess sludge Raw material for cement Salt by-products, waste filter aids etc. Fuels etc. Our liquid fertilizer is sold under the name of AMI-AMI in Vietnam, and AMINA in Indonesia. The foliar spray AJIFOL is also being commercialized.
4 The Ajinomoto Group Initiatives Work for Life bringing abundant fruits of the field to the regions Major raw materials used at amino acid production plants of each region Corn Sugar beet Wheat Japan Cassava (tapioca) Liquid fertilizer storage tanks (Vietnam) For the cultivation of rice and tea The United States For cattle feed and fertilizer for corn. The huge corn fields are sprayed using trucks. Growth experiment of sugar cane using co-products (Thailand) Vietnam In addition to the widely cultivated rubber trees, it is also used in various vegetables and fruits such as sugar cane, pineapple and coffee. Brazil Peru For sugar cane, vegetables etc. Mainly for sugar cane and oranges. The massive spraying operations are a special feature. Co-products used in an array of ways in the agriculture and fisheries of each region Coffee 1% Brazil Limeira Plant Others 2% Grass hay Others 1% Thailand Prapradeng Plant 4% 2% Oranges 43% 50% Aquaculture 97% Aquaculture is popular. Indonesia Rice 2% Others 2% Pineapple Corn 31% 46% Rice Coffee 17% Coffee 4 % Rubber Pineapple 5% 60% 11% Rubber cultivation widespread in Vietnam Rubber Others Nuts 3% 13% Vegetables Vietnam Rubber cultivation is widespread in Vietnam, and co-products created at the Ajinomoto Vietnam Co., Ltd s amino acid fermentation plants are also used as fertilizer. Resin from rubber trees is used as a raw material for rubber, while the wood from those trees that grow to a particularly large size are used to make luxury furniture. 12
5 Special Feature 1 In the Fields To t h e Fu t u r e Towards the development of high-value-added co-products Although about 90% of co-products are turned into fertilizer mainly in the agricultural industry, the effects and application vary depending on the regions and agricultural product. Further research on the agricultural practice and method applied for crops met in each region and verification are underway. In addition, using the concept of returning the bounty of nature to the agricultural industry of each region that helps provide the amino acid fermentation material, the Group is working on research into further high-value-added by-products and application development for contributing not only to agriculture but also to livestock and fisheries. Launch of high-value-added project In order to accumulate more knowledge and expertise to strengthen the Ajinomoto Group s co-product business, including data on the effective use of co-products on local crops, which had been promoted at the Group s amino acid manufacturing plants across the globe, we launched the A-Link project in Under this project, we develop higher-valued added and in-demand co-products through collaboration between the Group s production sites and regional technology centers around the world and the research institutions of Ajinomoto Co., Inc. We have developed foliar spray fertilizers that contain amino acids and minerals derived from fermentation by-product liquid to make crops healthy and increase harvests, as well as other unique ingredients to make crops resistant to diseases. We have also developed amino acid fermentation by-product feed that is rich in protein and can be used in place of fish meal, for which there is a concern over imminent resource depletion. We will continue to develop and commercialize products like these, which offer added value to customers and are useful for ecological conservation and resource protection. AJIFOL, which is a spray fertilizer for use on the leaves of plants to help them absorb nutrients, is an example of the Group s high-value-added co-products. Demonstration experiments on the AJIFOL foliar spray are conducted AJIFOL, a spray fertilizer that helps the leaves of plants to effectively absorb nutrients, is typical of the high-value-added co-products. Originating in Brazil, the AJIFOL project has been underway since 1988, and the product is currently used on soybeans, corn, fruit trees, cotton and so on. Since 2007 operations have spread to Peru, Thailand, China, Indonesia, Vietnam and the United States. It is reported that the product enables effective provision of nutrition with small amounts, and improves immunity to diseases. Examinations are being conducted into different ingredients and spraying techniques according to the region where it is used. Towards higher-value-added co-products Solid fertilizers with long-lasting effects Foliar spray Dried bacterial cell Silage additive Solid fertilizer Liquid fertilizer Liquid feed Spraying Soybeans Fermentation by-products Foliar spraying Minimal spraying helps trace elements to be effectively and easily absorbed Foliar spraying Direct absorption Grapes Prevention of fertilizer loss Comparative cultivation of soybeans (Bolivia) Not using AJIFOL Using AJIFOL Comparative cultivation of rice (Japan) The liquid and solid fertilizers produced at the Kyushu Plant of Ajinomoto Co., Inc. are used in the cultivation of rice, vegetables and fruits. Cultivation experiments are underway using a combination of AmiHeart TM and AJIFOL. Six weeks after planting. Usually cultivated field Field treated with AmiHeart TM and AJIFOL The soybeans grow better in the fields using AJIFOL Sprayed leaf Two weeks after first AJIFOL application Compared to the usual cultivation methods, growth is more uniform using AmiHeart TM and AJIFOL 13 The business of Ajinomoto Fine-Techno Co., Inc. includes activated carbon. Activated carbon features tiny pores known as micropores in much larger quantities than ordinary carbon, and is characterized by its absorption of chemical substances. It is used in food manufacturing, water cleansing and for the absorption of harmful chemical substances. Research is underway on its use as a soil cleanser on agricultural land.
6 The Ajinomoto Group Initiatives Work for Life The Ajinomoto Group companies various initiatives to make the most efficient use of the riches of the land Making the most of unused biomass in producing the energy required for amino acid fermentation (Ajinomoto Co., (Thailand) Ltd. Kamphaeng Phet Factory) Ajinomoto Co., (Thailand) Ltd. produces amino acids using sugar cane and cassava as raw materials. The Kamphaeng Phet Factory, located four hours drive north of Bangkok in a busy agricultural district full of rice paddies and sugar cane fields, is aiming to become a Green Factory. In December 2008 the factory installed a biomass boiler, to utilize not only the raw materials used in amino acid fermentation but also the region s unused biomass as an energy source. The fuel they use instead of heavy oil is the husks resulting from local rice production. Three rice crops are harvested in a year in Thailand, so rice husks are available on a stable basis throughout the year. The husks are a hitherto untapped agricultural resource and a carbon-neutral 1 fuel. The installation of the boiler has helped the factory to reduce its CO2 emissions by around 50%, or 100,000 tons per year. The Ajinomoto Group has, for the first time, applied to and received approval from the Japanese and Thai governments for this CDM 2 Project. The Group also plans to apply to the United Nations to register it as a CDM project. Unused biomass that does not conflict with food resources can be efficiently used not only for the raw materials used directly in products, but also in producing energy required for the production of these products. Study is commenced in Europe and other regions to extend such approaches to the entire Ajinomoto Group. 1. Carbon neutral: Biological plants absorb CO2 by photosynthesis in their growth period, which offsets CO2 emissions from their incineration. So the CO2 emissions have no impact on the atmospheric CO2 emissions. 2. Clean Development Mechanism (CDM): One of the mechanisms set for th in the Kyoto Protocol. It enables projects that reduce emissions in developing country parties to be funded by entities in industrialized countries in return for credits for any emissions reductions that result from the project. Huge silo in which about one month s supply of rice husks (10,000 tons) can be stored (back) and the biomass boiler (front) Husks of the long-grained rice grown in Thailand Aiming to become a resource recycling-oriented plant that nurtures raw materials for products by turning residue into fertilizer (Ajinomoto Frozen Foods Co., Inc., Shikoku Plant) The Shikoku Plant of Ajinomoto Frozen Foods Co., Inc. produces a range of over 100 household and business-use food products, including stuffed dumplings and hamburgers. It is situated in an area that grows plenty of the ingredients of the products, such as cabbages and onions. The production process results in large amounts of animal and vegetable residue, including inedible cabbage stalks and outer leaves, and other material that cannot be used in products. In order to use these without any waste as parts of nature s benefits, a fertilizer conversion facility was opened in the latter half of fiscal 2006, and sales of fertilizer launched. The residue can be turned into fertilizer by fermentation and drying. An experimental initiative has also been launched to create a resource recyclingoriented plant in which the fertilizer obtained is used to nurture the cabbages, onions and so on, which are in turn used as raw materials for the frozen food products. Residue is fermented, dried and turned into fertilizer. Since the second half of fiscal 2008, the fertilizer has been gradually sold to contracted local farmers, and the resource recycling areas have been expanding. The company intends to steadily continue with its efforts to promote resource recycling and the efficient use of nature s bounty through its frozen foods business. Vegetable residue, including cabbages Contracted farmers use the fertilizer when they grow cabbages and onions. The farmers cooperate in ongoing testing of the efficacy of the fertilizer and how growth is progressing. Thailand enjoys stable rice production throughout the year as it harvests the crop three times annually. The biomass boiler at Ajinomoto Co., (Thailand) Ltd. s Kamphaeng Phet Factory is backed up by the steady supply of husks from rice cultivated with amino acid fermentation by-products. 14
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