Doris De Guzman/New York
The rapid pace of global biodiesel growth is expected to produce several negative scenarios on the fats and oils market, according to John Baize, president of agricultural trading consultancy John C. Baize & Associates.
Skyrocketing biodiesel capacity will drive vegetable oil prices higher, and cause a significant glut of protein meals, Baize said in his keynote speech presented last week at the annual American Fats and Oils Association Meeting in New York.
Current operational US biodiesel capacity is around 480.6m gallons/year, which could consume 1.66m tonnes of fats and oils at full capacity utilization. Capacity is estimated at 900m gallons/ear by the end of 2007, which would use 3.1 tonnes of fats and oils as feedstock, an equivalent to 28% of total US vegetable oil use in 2005/06...
...It would take 95% of US annual vegetable consumption, an equivalent of 10.7 tonnes, just to supply 5% of US annual diesel demand, adds Baize...
Transcribed from
ICIS Chemical Business October 23-29, 2006, Page 7.
For reference, 900M gallons of biodiesel is about 21M barrels, equivalent to about a day and a half of US oil
imports at the rate imported last week.
http://tonto.eia.doe.gov/dnav/pet/pet_move_wkly_dc_NUS-Z00_mbblpd_w.htmIf we ban McDonald's french fries and other nasty unhealthy fried foods entirely, biodiesel could easily provide as much as ten days of US oil imports.