9 Ajinomoto Group Environmental Report 2010

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.

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

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”http://www.ajinomoto.co.jp/activity/theater/movie06.html

W e b

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 s e a s o n i n g A J I - N O -MOTO®. It also uses the by-products result ing f rom the amino ac id p r o d u c t i o n p r o c e s s to make nutr ient-r ich organic fer t i l izer and feed, which fosters life amongst the fields and fishes of the regions.

Nutrition for people

Nutrition for plants and animals

Raw materials Agricultural, livestock &

�shery products

In the case of umami seasoning AJI-NO-MOTO®

By-products are turned into organic fertilizers and feeds

Cane molasses etc.

Sugar caneNurturing variouslocal agricultural products

Initiatives to return all the fruits of agriculture to the fields where production takes place

Ajinomoto Group Environmental Report 2010 10

o v e r v i e w

In order to always provide good taste and healthy lifestylesThe Bio-cycle—A recycling-oriented framework for amino acid production

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 dif ferent 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 ve g e t a t i ve 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 cont inuous 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.

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.

Covers 70% of the chemical fertilizer (nitrogen content) required by 500,000 hectares of sugar cane fields

Cane molasses (syrup derived from sugar cane)

Sugar production plant

1.5 million tons

Absorption of atmospheric CO2 by photosynthesis

Chemical fertilizer

28 million tons

Raw sugar

4.2 million tons

Sugar cane

38 million tons

By-product1.6 million tons

Sun

Umami seasoning AJI-NO-MOTO®

Products

500,000 tons

B i o - c y c l e

Mechanism enabling permanent creation with the local region

500,000 hectares

Sugar cane fields

Recovering by-product as useful resources

Harvest

Umami seasoning AJI-NO-MOTO®

Nitrogencontent

Contributes to reduction in CO2 emissions arising from chemical fertilizer production

Organic fertilizer

1.6 million tons

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.

(Year)0

500

1,000

1,500

2,000

2003/04 2005/06 2007/08

627

289

555

392

1,863

137

711

1,088

1,936

164

748

1,109

2,021

229

746

1,124

2,099

696

282

623

418

2,019

722

288

610

421

2,041 RiceWheatCoarse grains except cornCorn

Use in food, seeds etc.Use in feedsUse 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.

Mill

ion

tons

Prod

uctio

nvo

lum

eCo

nsum

ptio

nvo

lum

e

Recent world trends in grain production volume by crop, and consumption level by use

Feed-use amino acids Functional foods SweetenersUmami seasoning AJI-NO-MOTO®

Average amount of glutamate extracted from 100 grams of dried kelp

for soup

Average amount of glutamate extracted

from 100 grams of ripe tomatoes

Calculated based on 2,240 milligrams per 100 grams

Calculated based on 140 milligrams per 100 grams

The Ajinomoto Group Initiatives “Work for Life”

Pharmaceuticals

Specialty chemicals

Cosmetics

etc.

What if we made seasoning ingredients from kelp and tomatoes?

500,000 tons 25 million tons 200 million tons

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.

Q

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.A

Ajinomoto Group Environmental Report 201011

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.Worth knowing

In the FieldsSpecial Feature 1

Co-products, making the most efficient use of the bounty of the fields and bringing abundant fruits of the field to the regions

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 “Co-Products,” which can be used to ensure continuous 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.

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.

France

Used for cattle feed etc.

Major amino acid production plants and uses of co-products

Fermented with power of microbes

Amino acid

GlutamateFeed-use

amino acid(Lysine, threonine etc.)

Other amino acids

Co-Products (Examples of types and transformation to resources)

By-products Uses

Concentrated fermentation liquor

Liquid fertilizer (Asia, North & South Americas), field crops, industrial crops, fruit (Thailand), marine cultivation (to increase plankton)

Liquid feeds (nitrogen additives) (Europe, North America) cattle

Raw material for solid fertilizers (Japan)

Silage enhancers

Cell protein Protein feeds (Europe) cattle, pig

Solid by-productsWaste activated carbon, excess sludgeSalt by-products, waste filter aids etc.

Raw material for solid fertilizers

Soil conditioners

Raw material for cement

Fuels etc.

Worker from our FD Green (Thailand) Co., Ltd.

Crops used as raw materials

Sugar cane, cassava, corn, beets, wheat etc.

Sugar cane Cassava

Tilapia

Ajinomoto Group Environmental Report 2010 12

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.

Worth knowing

Co-products, making the most efficient use of the bounty of the fields and bringing abundant fruits of the field to the regions

Peru

For sugar cane, vegetables etc.

Brazil

Mainly for sugar cane and oranges. The massive spraying operations are a special feature.

The United States

For cattle feed and fertilizer for corn. The huge corn fields are sprayed using trucks.

Japan

For the cultivation of rice and tea

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.

Co-products used in an array of ways in the agriculture and fisheries of each region

Grass hay4%

Coffee 1% Others 2%

Sugar cane50%

Oranges43%

BrazilLimeira Plant

Indonesia

Pineapple

13%

Corn31%

Rice 2% Others 2%

Sugar cane46%

Rubber cultivation widespread in Vietnam

Vietnam

Pineapple5%

Nuts 3%

Coffee 4%

Rubber60%Sugar cane

11%

Others17%

Thailand

Prapradeng Plant

Aquaculture is popular.

Sugar cane2%

Others 1%

Aquaculture97%

Vegetables

Rice

Rubber

Growth experiment of sugar cane using co-products (Thailand)

Liquid fertilizer storage tanks (Vietnam)

Coffee

Sugar cane Corn Cassava (tapioca)

Sugar beet Wheat

Major raw materials used at amino acid production plants of each region

The Ajinomoto Group Initiatives “Work for Life”

Ajinomoto Group Environmental Report 201013

To t h e Fu t u re

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.

Worth knowing

In the FieldsSpecial Feature 1

Towards the development of high-value-added co-products

Comparative cultivation of soybeans (Bolivia)

Not using AJIFOL® Using AJIFOL®

Towards higher-value-added co-products

Solid fertilizers with long-lasting effects Foliar spray Silage additiveDried bacterial

cell

Fermentation by-products

Direct absorption

Foliar spraying

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.

Sprayed leaf

Usually cultivated field Field treated with AmiHeartTM and AJIFOL®

Six weeks after planting….

Two weeks after first AJIFOL® application

Prevention of fertilizer lossGrapes

Soybeans

Spraying

Launch of high-value-added projectIn 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 2009. 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 conductedAJIFOL®, 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.

Solid fertilizer Liquid fertilizer Liquid feed

Foliar sprayingMinimal spraying helps trace elements to be effectively and easily absorbed

The soybeans grow better in

the fields 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. Cult ivation experiments are underway using a combination of AmiHeartTM and AJIFOL®.

Compared to the usual cultivation methods, growth is more uniform using AmiHeartTM and AJIFOL®

Ajinomoto Group Environmental Report 2010 14

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.

Worth knowing

Residue is fermented, dried and turned into fertilizer.

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.Vegetable residue, including cabbages

The Shikoku Plant of Aj inomoto 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 recycling-oriented 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.

Aiming to become a resource recycling-oriented plant that nurtures raw materials for products by turning residue 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.

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. 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-neutral1 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 CDM2 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

(Ajinomoto Frozen Foods Co., Inc., Shikoku Plant)

(Ajinomoto Co., (Thailand) Ltd. Kamphaeng Phet Factory)

The Ajinomoto Group Initiatives “Work for Life”