Rendering Is:.. Essential! …Sustainable!

1. Ross Hamilton, Ph.D. Vice President Government Affairs & Technology Darling International Inc. Rendering Is:.. Essential! …Sustainable!

2. “The Legislature hereby finds and declares all of the following: The rendering industry is a critical health and safety infrastructure for California. Rendering is an effective tool to eliminate many human and animal disease pathogens, protects our groundwater and air resources, and greatly reduces greenhouse gas emissions compared to other alternative disposal options. *California Assembly Bill No. 1249, Chapter 280, Approved by Governor October 11, 2009. The California Legislature stated in Assembly Bill No. 1249*:

3. What is available to the rendering industry to recycle? Wastes generated by the meat and food industries in US.

4. Kills pathogenic organisms • Protects (sustains) the environment • Recycles carbon • Recycles energy • Provides control, verification and traceability to regulatory agencies and the public that condemned or expired meat products are not re-used as human food. What does rendering do? The industry does all of this within hours of receiving raw materials, rather than taking weeks or months as some popular alternative methods do.

5. Kills pathogenic organisms • Pathogens that may threaten human and animal health thrive on perishable organic materials. What does rendering do?

6. Challenge – Pathogens threaten human & animal health Salmonella Adequate heat kills conventional pathogens Pathogens are common in animal materials A Listeria A FPRF, 2001. 17 facilities sampled winter and summer. 64% of > 1400 human pathogens are zoonotic 73% of 177 emerging pathogens originated in animals • BSE agent is a potential hazard, but is addressed through compliance with FDA regulations

7. Time and Temperature ProfileContinuous cooker with fat added back Assume lower critical limit of 255˚ F Lower critical limit of 255 F. EU data

8. Predicted Bacteria Death Rate Initial population = 2*106 – Assume material exposed to 255˚ F LCT for 3 minutes Table supports using Clostridia as indicator, but is based on food industry data and may not apply to rendered products that are high in fat. A threshold log reduction has not been determined for animal feed.

9. Inspections Rendering uses HACCP principles for feed safety Used Cooking Oil Decanting • Animal Protein Producers Industry – Code of Practice • Based on HACCP-like (Hazard Analysis Critical Control Point) plan • Follows written procedures and process controls for feed safety • Verified by third party auditors • FDA agrees • Hazard analysis and hazard control are in Food Safety Modernization Act of 2010 Certifications Temperature Raw Material Sizing Heat Processing (Time x Temperature) Inspections Temperature Grinding Press Protein Compliance testing Labeling Storage/Load-out Fat clean-up Labeling

10. Protects surface and groundwater from pathogens • Used by federal agencies to eradicate diseases in animals • Some other disposal methods use bacteria to decompose material Rendering breaks disease cycle Disease cycle Rendering Sanitized products Rendering is the “Gate Keeper” New uses

11. Protects (sustains) the environment What does rendering do?

12. Obvious ways: • Prevents fats and oils from polluting waterways • Controls accumulation of nitrogen and phosphorus in soil • Assures landfill space available for non-recyclables • Rendering process removes water to reduce original volume by 60%. • Compared to other disposal methods, reduces discharges of particulates, SO, dioxins and hydrogen sulfide. • Proper grease disposal prevents occlusion of sanitary sewer systems • New benefit realized: • Recycling of carbon and nitrogen – the raw materials Darling recycles are rich in these elements. Fats and oils are 76% carbon. Animal proteins contain 22 - 30% carbon and 8 – 14% nitrogen. Sustains the environment

13. The rendering industry has been the gatekeepers of food safety and the environment for decades, offering a sanitary and eco-friendly way to dispose of the massive amount of meat and food by-products produced every year. Biofuel Animal Slaughter Animal Production Animal health Meat processing Meat byproduct Feed safetyprograms Restaurants Food Stores Feednutrients Trap Services Restaurant Services Rendering SUSTAINABILITY People Planet Profit

14. Recycles1 materials/nutrients: • Rendering is recycling. It processes used or waste food materials to make useful products having industrial uses, nutrients for animals and renewable fuels. • Rendering captures carbon and nitrogen to avoid greenhouse gas emissions. • Rendering captures many times more carbon than it emits from its processes. • Rendering recycles phosphorus and other minerals to prevent loading of the soil and waterways. • Rendering is a better example of recycling than recycling of aluminum cans, because rendering has remained economically sustainable for more than a century. What does rendering do? 1 Webster defines recycle as: “totreat or process used or waste materials so as to make suitable for reuse.”

15. Rendering protects the environment: Our Green Impact Rendering Annually Recycles (million lb) : • US rendering facilities utilize world-class processing equipment, treatment processes and control equipment to minimize the discharge impact on the local environments’ air and water.

16. Recycles carbon : • Rendering captures many times more carbon than it emits from its processes. • Carbon and nitrogen captured in rendered products cannot form CO2, methane or nitrous oxide. • Thus, rendering is considered to be an effective Carbon capture and GHG avoidance technology. What does rendering do?

17. Rendering is a net carbon capture technology Assumptions: (1) 70.6 billion lb of animal byproducts generated on-farm, at slaughter, from processing and by grocery stores; and (2) 5.6 billion lb of used frying oil generated by the food industry is recycled by the rendering industry. GHG Sources 1 Calculated using data from Shanwei et al., 2007 for composting animal remains: 100% of carbon emitted as gases (96% as CO2 and 4% as methane) and 6% of nitrogen emitted as nitrous oxide.

18. Recycles energy: • Captures the energy in the raw materials and packages it into stable products that can be stored, transported and used easily. • All rendered products contain significant amounts of energy. • Fats , greases and oils are nature’s way of concentrating and storing energy, • Whether energy is measured in calories or as BTU, it is still energy. What does rendering do?

19. Rendering More energy than Anaerobic Digestion. Energy of rendered and AD products, BTU/lb Anaerobic Digestion1 • Peak biogas production not reached for 10 days • Products are biogas and effluent. • Complete digestion not likely: • Ash (15 to 30%) left in effluent • 19% of volatile solids left after 28 days • Biogas characteristics • 76.3% BTU of natural gas • 73% methane • 27% carbon dioxide • Methane is used to make electricity or in boilers. • CO2 not combusted and is released as greenhouse gas • Effluent dried for land application • VFAs may be toxic to plants 1 Data from Zhang et al.2007 Bioresource Tech. 98:929 Rendering • Products recycled same day received • Energy in protein meals is used by animals for growth and production. • Energy in fats is used by animals for growth & milk/egg production, as a fuel source in boilers or as a feedstock for biodiesel /renewable diesel.

20. Rendering captures the energy contained in animal byproducts and food waste into stable products that are easy to store, transport and use. The 76.2 billion pounds of animal byproducts and used frying oil generated each year in the US contains more than 364 million MMBTU. The quantities of common sources of energy needed to provide an equivalent number of BTU are listed below.

21. Rendering animal byproducts and food waste captures the energy into stable products that are easy to store, transport and use. The energy that would be captured by rendering all of the 76.2 billion pounds of animal byproducts and used frying oil generated each year in the US1 would be equivalent to the following sources of energy used by typical US households in a year: 1 More than 364 million MMBTU.

22. Provides control, verification and traceability to regulatory agencies and the public that condemned or expired meat products are not re-used as human food. What does rendering do?

23. USDA/APHIS Raw Material composition Collection-transportation State Dept of Agriculture USDA/FSIS Processing Non-Feed Use Tallow Protein State Dept of Agriculture USDA/APHIS FDA-CFSAN Exports FDA-CVM Fatty Acid Splitters Animal Feed How rendering is regulated and control is maintained over raw/finished materials: US & State EPA, OSHA, DOT, etc. Meat not for human food FDA-CVM City & State Health Dept

24. 21 CFR §§ 589.2000 & 589.2001 – CMPAF (Feed Rule) • Effective October 26, 2010 – the primary rule for compliance Public Health & Bioterrorism Preparedness Act • 21 CFR Parts 1 and 20 – Facility Registration • Each facility (except trap only) is registered - will ask for number • 21 CFR §§ 1.276 through 1.285 – Prior Notice • Notify FDA when “Food” is to be imported (i.e. Canadian fat & bone) • 21 CFR Parts 1 and 11 – Record Keeping Requirement • Trace material one-step forward and backward (including transport) • 21 CFR Parts 1, 10 and 16 – Administrative Detention • Procedures to detain “food” reasonably likely to be unsafe Food & Drug Administration Amendments Act of 2007 • FD&C Act Section 415 – Reportable Food Registry • Report adulterated food that may cause death/serious illness Food Safety Modernization Act of 2010 – regulations pending… Key FDA Regulations Renderers Must Comply With

25. Food Drug & Cosmetic Act definition of “Food” • Articles of food or drink for man or other animals – including components of any such articles Safety of rendered products used in feed regulated by the U.S Food & Drug Administration (FDA) • FDA considers rendered products safe (CPG 7126.24). This guidance recognizes that rendering: • Has provided more than 100 years of recycling to meat and food industries. • Has supplied nutrients to animals since the 1940’s. • Processes designed to assure the resulting feed ingredients pose no threat of disease transmission to animals.

26. Because rendering recycles fats and proteins, it avoids the release of significant amounts of greenhouse gases. The alternative disposal options are all net producers of GHG. • Methods that use decomposition to breakdown the material convert all of the carbon to methane and carbon dioxide and some nitrogen to nitrous oxide. • Composting – CO2 primarily released with some CH4 & N2O. • Landfills – Large amounts of CH4 produced; some CO2 & N2O • Burial – Similar to landfills • Even if landfills capture methane, burning it as fuel or as a flame releases CO2. How do alternative disposal methods stack up ?

27. Rendering Prevents the Spread of Disease Cooking Kills Salmonella In 2001, the Government of the United Kingdom ranked various disposal options according to their risk of exposing the public to hazards. Bacterial hazards: • Food pathogens (E.Coli, salmonella, botulism) • Disease pathogens (Anthrax, TB, Plague, Tetanus) • Drinking water pathogens Chemical hazards: • Methane • Carbon dioxide • Hydrogen sulfide • Other harmful chemicals The UK concluded that rendering is thepreferred method of disposal Risk increases with bar height • Meat and food byproducts provide an excellent environment for pathogens to grow and multiply. • Temperatures (> 250°F) used during the rendering process are more than adequate to kill conventional disease-causing organisms, such as bacteria and viruses.

28. Cosmetics Tires Electricity Paints Greenhouse Gases Oleo-chemical Lubricants Animal Feed Generator Pet Food Fertilizer Biofuel Fertilizer Biogas 75% Methane 25% CO2 Dryer Captured C ? 7:1 capture to emit ratio Water Effluent Compost Digester Rendering Meat waste

29. How rendering compares to alternatives1 1 Compost and digester comparisons from Mata-Alvarez and Llabres, 2000 2 If meat included in compost, potential violation of 21CFR 589.2000/2001 & Swine Health Protection Act 3 Use for animals regulated. Certain products can not be fed to cattle and other ruminants 4 Volatile fatty acids present in effluent may be toxic to plants..

30. Rendering is the preferred disposal method • Essential “Gate Keeper” for People & PlanetWithout rendering…. critical issues using other methods of disposal: • Composting - Volume would fill 10,000 new Dallas Cowboy stadiums per year • Composting mammalian flesh is prohibited in California (14 CCR § 17855.2) • Landfill – Volume would reduce existing US landfill space by 25% per year and increase GHG emissions • Incineration – Cost prohibitive and has air quality issues • Burial – Potential for ground and surface water contamination • Abandonment –Greatest threat to environment and human/animal health • Withoutgrease collections –municipal sewers would become occluded and cost $millions to clean • None reach rendering’s level of sustainability.

31. Summary Rendering provides essential services to society. • Rendering offers a sanitary and eco-friendly way to dispose of the massive amount of meat and food by-products produced every year. • If not recycled, the large amounts of carbon, nitrogen and phosphorus present in these organic materials may contribute to global warming, soil loading and water contamination. • Our facilities utilize world-class processing equipment, treatment processes and control equipment to minimize the discharge impact on the local environments’ air and water. Rendering is Essential! Rendering is the Solution !!

32. Rendering … Mission Critical, Necessary, Essential andsustainable