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Feedstock Options for Biodiesel Production

Feedstock Options for Biodiesel Production. Jon Slee Marketing Manager Riverland Oilseed Processors. Outline. Main sources – Animal & Vegetable What drives prices S & D World & Australia Summary. Tallow Fancy White Edible K Grade (NZ Tallow) Yellow Grease Recycled Fat.

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Feedstock Options for Biodiesel Production

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  1. Feedstock Options for Biodiesel Production Jon Slee Marketing Manager Riverland Oilseed Processors

  2. Outline • Main sources – Animal & Vegetable • What drives prices • S & D World & Australia • Summary

  3. Tallow Fancy White Edible K Grade (NZ Tallow) Yellow Grease Recycled Fat Canola/Rapeseed Soybean Oil Palm Oil Palm Olein Palm Sterein Sunflower Groundnut Main sources – Animal & Vegetable

  4. What drives prices: • World oil/fat supply & demand (stock to use ratio) • Substitution (Lowest cost oil Vs Intrinsic Use) • Feed Energy Costs (Floor price fat Vs Grain) • Logistics (Freight rates, shipping delays etc) • World move to “Just In Time” (JIT) • Politics – Import tariffs/duties • Biosecurity – BSE, Non GM Markets • Biodiesel & Biomas

  5. The bottom line: • Import Parity Vs Export Parity • Increase demand domestically for feedstock and the price will increase to an import parity level. • Eg Rapeseed Oil Price 5yrs ago in EU was US$20 premium to Sth American Soy today it is trading at US$200 premium.

  6. World Oilseed Production

  7. World Vegetable Oil Production

  8. CBOT Soyoil Price (Monthly) US Cents per lb Eg 25 cents * 22.0462 = US$551.16

  9. A$ Vs US$ Soyoil @ US$551 / 80cent = A$688 Soyoil @ US$551 / 50cent = A$1102

  10. International Oil Price Snap Shot: US$ Per metric Tonne Prices as per Oilworld Estimates

  11. Yellow Grease vs. CBOT Corn

  12. US Cattle Slaughter

  13. Australian Tallow Production

  14. Australian Tallow Markets

  15. Summary: • Multiple Feedstocks available (opportunity cost) • Export Vs Import parity Price • Currency Can Play a major role • Large Variation in regional supply • Think about the long term and look global

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