The biodiesel boom is changing the dynamics of the global vegetable oil industry, according to a new report out by Rabobank’s Food and Agribusiness Research group. According to a news release, the report “finds that the increasing global appetite for biodiesel and other biofuels is driving demand for vegetable oils to historic levels in world markets, leading to higher prices for vegetable oils relative to meals and causing soybean crushers to reevaluate their business models.”
Alejandro Reca, PhD, Executive Director of Rabobank’s Food and Agribusiness Research group in the Americas says “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. The result is that our energy and agricultural markets are becoming increasingly interrelated.”
Could it be that we might be able to produce BOTH food and fuel from crops and not have to choose one or the other???