A NEW study has found that US soybean farmers received an additional $US2.5 billion in net returns over the last four years due to the biodiesel industry’s demand for soybean oil.
That's equivalent to 25 cents in support for the per-bushel US price of soybeans.
But, additionally, the study found that higher demand for soybean oil led to an increased supply of soybean meal, resulting in soybean meal for livestock prices dropping by $19 to $45 per ton.
Centrec Consulting Group, LLC, conducted the study with funding by the United Soybean Board (USB) and soybean checkoff.
“Any lowering of the price of inputs for the animal agriculture industry is a plus,” USB says in a statement released with the findings.
“The swine and dairy industries have had a tough time lately.
"This is a benefit for them.
"Every little bit helps in the poultry and livestock industries as far as decreasing their costs.
"And this demonstrates how biodiesel demand can have a positive impact on this important aspect of our food supply.”
The findings could be of interest to Australian farmers, in view of the vigorous debate over claims that the use of grains such as sorghum for biofuels lifts feed grain prices in Australia.
The US study also says that, because the price of petroleum diesel has such a large influence on the price of biodiesel and soybean oil, the the rise of the biodiesel industry has essentially created a new floor for soybean oil prices.
* More information: www.unitedsoybean.org.
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