FOOD, FEED AND FUEL
Rising grain and fuel prices and sticker shock in the grocery store, followed by a struggling economy, have all led to “food vs. fuel” discussions. However, Iowa’s farmers assure consumers that the issue is not a matter of feeding a hungry world or reducing our dependence on imported oil. Rather, soybean growers are committed to growing a crop that can be used for feed and food, as well as producing fuel. Here are some important facts which show their efforts are succeeding.
• Demand for soy biodiesel has little impact on the price of food. A soybean consists mostly of protein-rich meal, and 98 percent of that meal is used to feed animals that produce food such as poultry, pork, fish and milk. Increased crush for oil for soy biodiesel provides more soybean meal for feed.
• In 2007, only 4 percent of global soybean oil production and 12 percent of the U.S. soybean oil production was used to produce fuel by the U.S biodiesel industry.
• According to the U.S. Council of Economic Advisors, increased biofuel production accounted for less than 3 percent of the 43 percent global increase in food prices.
• According to International Energy Agency data, global biofuels production has cut consumption of crude oil by 1 million barrels a day, offering savings of $120 million dollars a day. That’s more than $43 billion in savings per year.
• Biodiesel production encourages a larger soybean crush, resulting in a larger supply of soybean protein meal for animal feed. Also, ethanol production uses only the starch in corn – the oil, fiber, and protein are captured independently and used in animal feed.
• According to the National Biodiesel Board, demand for soy biodiesel has stimulated research and investment in developing other products that can also be used to produce biodiesel, such as algae, camelina, and jatropha.
• A study by the Department of Energy shows that biodiesel, largely made from soybean oil, has the highest energy balance of any liquid fuel. For every unit of energy used to make soy biodiesel, 3.5 units of energy are gained. Petroleum diesel has a negative energy balance.
• 1 billion gallons of biodiesel will reduce current life-cycle greenhouse gas emissions by 16.12 billion pounds, the equivalent of removing 1.4 million passenger vehicles from U.S. roads.
• Demand worldwide continues to increase for all commodities including steel, oil, and food. Incomes around the world have been on the rise which leads to a greater demand for meat products. These meat products need to be fed DDGs/corn, wheat, or soybean meal. China alone accounts for about 45 percent of U.S. soybean exports.
• When the value of the dollar falls, pressure on U.S. commodities is directed upward because the purchasing power of foreign buyers and currencies is increasing.
• About 80 cents of every retail dollar spent on food goes to cover various costs such as marketing, distribution, packaging, and processing. These aspects, which include energy costs, drive increases in the cost of food more than competition from biofuels.
• Soy biodiesel can actually help lower food costs. Merrill Lynch commodity strategist Francisco Blanch has said that oil and gasoline prices would be about 15 percent higher if biofuel producers were not increasing their output. Higher energy costs would be passed on to diesel users, making food prices even higher.
• ISU CARD* found the growth in ethanol production has caused retail gasoline prices to be $0.29 to $0.40 per gallon lower.
• Overall, for all food, less than 17 cents of the consumer dollar goes to the farmers.
• USDA expects soybean supplies to increase this year. Companies such as DuPont and Monsanto plan to establish new soybean varieties in the next few years that could increase U.S. soybean yields by 9 percent to 12 percent.
• In 2007-2008, the U.S. exported record amounts of corn and soybeans to feed the world. Only 2 percent of the worldwide corn market accounts for ethanol.
While U.S. farmers’ focus will always be on feeding the world first, they are committed to producing the soybeans needed to meet the world’s demands for food, feed and fuel.
*For more information on the ISU CARD please http://www.card.iastate.edu/
Also, for more information visit www.biodiesel.org or www.unitedsoybean.org
• Demand for soy biodiesel has little impact on the price of food. A soybean consists mostly of protein-rich meal, and 98 percent of that meal is used to feed animals that produce food such as poultry, pork, fish and milk. Increased crush for oil for soy biodiesel provides more soybean meal for feed.
• In 2007, only 4 percent of global soybean oil production and 12 percent of the U.S. soybean oil production was used to produce fuel by the U.S biodiesel industry.
• According to the U.S. Council of Economic Advisors, increased biofuel production accounted for less than 3 percent of the 43 percent global increase in food prices.
• According to International Energy Agency data, global biofuels production has cut consumption of crude oil by 1 million barrels a day, offering savings of $120 million dollars a day. That’s more than $43 billion in savings per year.
• Biodiesel production encourages a larger soybean crush, resulting in a larger supply of soybean protein meal for animal feed. Also, ethanol production uses only the starch in corn – the oil, fiber, and protein are captured independently and used in animal feed.
• According to the National Biodiesel Board, demand for soy biodiesel has stimulated research and investment in developing other products that can also be used to produce biodiesel, such as algae, camelina, and jatropha.
• A study by the Department of Energy shows that biodiesel, largely made from soybean oil, has the highest energy balance of any liquid fuel. For every unit of energy used to make soy biodiesel, 3.5 units of energy are gained. Petroleum diesel has a negative energy balance.
• 1 billion gallons of biodiesel will reduce current life-cycle greenhouse gas emissions by 16.12 billion pounds, the equivalent of removing 1.4 million passenger vehicles from U.S. roads.
• Demand worldwide continues to increase for all commodities including steel, oil, and food. Incomes around the world have been on the rise which leads to a greater demand for meat products. These meat products need to be fed DDGs/corn, wheat, or soybean meal. China alone accounts for about 45 percent of U.S. soybean exports.
• When the value of the dollar falls, pressure on U.S. commodities is directed upward because the purchasing power of foreign buyers and currencies is increasing.
• About 80 cents of every retail dollar spent on food goes to cover various costs such as marketing, distribution, packaging, and processing. These aspects, which include energy costs, drive increases in the cost of food more than competition from biofuels.
• Soy biodiesel can actually help lower food costs. Merrill Lynch commodity strategist Francisco Blanch has said that oil and gasoline prices would be about 15 percent higher if biofuel producers were not increasing their output. Higher energy costs would be passed on to diesel users, making food prices even higher.
• ISU CARD* found the growth in ethanol production has caused retail gasoline prices to be $0.29 to $0.40 per gallon lower.
• Overall, for all food, less than 17 cents of the consumer dollar goes to the farmers.
• USDA expects soybean supplies to increase this year. Companies such as DuPont and Monsanto plan to establish new soybean varieties in the next few years that could increase U.S. soybean yields by 9 percent to 12 percent.
• In 2007-2008, the U.S. exported record amounts of corn and soybeans to feed the world. Only 2 percent of the worldwide corn market accounts for ethanol.
While U.S. farmers’ focus will always be on feeding the world first, they are committed to producing the soybeans needed to meet the world’s demands for food, feed and fuel.
*For more information on the ISU CARD please http://www.card.iastate.edu/
Also, for more information visit www.biodiesel.org or www.unitedsoybean.org
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Funded by the soybean checkoff
Funded by the soybean checkoff
