Food markets are facing an historic boom as consumer
demand for biodiesel and biofuels is rising nationwide,
according to industry researchers.
Consumer needs are driving up demand for vegetable oils,
leading to higher prices for vegetable oils relative
to meals and causing soybean crushers to reevaluate their
business models, according to Rabobank’s Food and
Agribusiness Research group.
In fact, Dr. Alejandro Reca, executive director of the
research group in the Americas, predicts that the recent
income gains in the global vegetable oil sector will
continue over the long term.
“Biodiesel is proving to be a significant demand
shifter in the overall vegetable oil industry, but the
canola and palm sectors will benefit more proportionally
from this growth, thanks to their high oil content and
the oils’ multiple uses as food and foodstock,” Reca
said in a PRNewswire report.
“The tremendous opportunities presented by biodiesel
today are attracting non-traditional investors to the
agribusiness sector, such as financial institutions and
private equity firms, as well as traditional energy and
agribusiness players,” Reca said.
“Today’s market conditions create the ideal
environment for investment in and promotion of alternatives
to petrofuels, and biodiesel in particular is attracting
significant support on both the supply and demand side.
As a result, the growth in the biodiesel market has economic
and commercial implications far beyond just the energy
markets, from increasing production and creating new
trade flows for vegetable oils, to attracting new investors
to the agribusiness sector, and ultimately to increasing
the integration of global agricultural and energy markets,”
concluded Reca.
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