Biodiesel Counts for Farmers and Consumers

Market Segments :: Farming ::

Click to Enlarge Have a listen to how the numbers add up from a biodiesel expert who farms and is an economist too!

A little more than half of biodiesel produced in the U.S. is made from soy oil. Higher soy oil prices, driven by biodiesel demand, mean lower prices for meal used for animal feed. Those are real savings that ultimately benefit consumers. It's just one of the ways biodiesel benefits animal producers. Here's the rundown from several recent study: 

1. Lower relative meal prices
As more soy oil is processed for biodiesel production, more soy meal is available for livestock feed. 

“Demand for biodiesel creates demand for soy oil, which, in turn, lowers the cost of soy meal and the price of rations for our poultry and livestock farmers,” says Lewis Bainbridge, a soybean farmer from Ethan, S.D. and farmer leader with the United Soybean Board. 

The study found biodiesel’s demand for soy oil has lowered feed prices by as much as $48 per ton. That meant without biodiesel livestock producers would have paid $4.8 billion more in feed costs over five years. 

2. Increased animal carcass value
In 2014, biodiesel producers utilized nearly a billion pounds of animal fats, or approximately 25 percent of the animal fats produced in the US. Growth in biodiesel production has led to increased animal carcass value and higher value per head harvested for poultry and livestock farmers. According to independent economic analysis, increased demand for animal fats due to biodiesel production generated an additional $567 million for the beef industry, $165 million for the pork industry, and $51 million for poultry in 2013.

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