October 26/Global Round Up - Stocks -- Danisco has announced a pioneering investment in a novel method of extracting betaine from a side-stream of bioethanol production.

Danisco has forged a partnership with the world player in sugar, starch and bioethanol production, Tereos, with a significant investment into a new dedicated betaine production facility within the existing bioethanol production plant in Origny, the biggest sugar beet distillery in the world. This new facility will be managed and operated by Tereos, with technological support from Danisco.

"Natural betaine represents a key product in support of Danisco's strategy to provide innovative healthy nutrition solutions to the animal feed industry," notes a company release. This investment will substantially increase natural betaine availability, from the fourth quarter 2012, to address the "growing and unfulfilled market demand."

The new source of natural betaine will be extracted from the vinasse side-stream of bioethanol production using Danisco's proprietary technology and will be transported to Danisco's Finnish plant to produce the final Betafin(TradeMark) product.

Danisco was among those pioneering the research and application of natural betaine in animal nutrition in the early 1990s and says it has clearly demonstrated superior value compared to synthetic alternatives. Unlike synthetic betaine, natural betaine acts as an osmolyte, improving intestinal health and reducing the negative impact of heat-stress on animal production.

For Tereos, this partnership is the opportunity to increase the value of a distillery by-product and develop its industrial know-how on a large-scale plant. This new activity will create 20 permanent jobs in the Origny sugar factory-distillery. Tereos will manage and oversee plant operations, and Danisco's investment will bring new skills to the Origny plant.

James Laughton, executive vice president of Danisco Animal Nutrition says, "This is an exciting and significant step in strengthening our Betafin(TradeMark) business, a core part of our Healthy Nutrition strategy that combines enzymes, betaine and direct fed microbials into a unique offering. We are proud to be working with Tereos. This substantial investment brings together leading edge technology from both sides into an exceptional partnership that will bring considerable benefit to our customers."

Yves Belegaud, executive officer of Tereos, France, says, "We are pleased to achieve this project with such a professional partner like Danisco. Thanks to the association of Danisco's technology and Tereos' products and know-how, we are fully aligned with our strategic intent, as a cooperative, to find the best value for the sugar beet grown by our members."

The parties did not disclose financial details about the investment.

From the November 15, 2010, Prepared Foods E-dition