Home 5 Ag Stories Food prices down as Biodiesel production grows

Food prices down as Biodiesel production grows

by staff writer

Consumers are paying less for food this year as the Consumer Price Index for grocery store items is 2.3 percent lower than last year, all while biodiesel production is higher than ever. The National Biodiesel Board says: “More biodiesel production helps the food supply, despite what opponents incorrectly claim.” Biodiesel production has grown steadily most years since Congress enacted the federal Renewable Fuel Standard.

The Biodiesel Board expects a more than 2.6-billion-gallon biodiesel and renewable hydrocarbon diesel market in the U.S. in 2016 – a record.

Biodiesel can be produced from any fat or vegetable oil, including recycled cooking oil, animal fats and soybean oil. By creating a market and value for unwanted soybean oil, biodiesel decreases soy protein meal prices by $20-40 per ton, according to a study by Informa Economics. This helps livestock producers with feed prices, and ultimately helps consumers in the price they pay for meat.

 

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