How do poultry and livestock farmers, the biggest users of U.S. soybean meal, benefit from increased biodiesel production that uses the oil from soybeans? Simple: increased demand for soybean oil from biodiesel manufacturers leads to expanded crush and, in turn, lower soybean meal prices for animal feed.
In fact, a checkoff-funded study says that the biodiesel industry’s demand for soybean oil has lowered meal prices by as much as $48 per ton.
That’s good news for the animal farmers who used the meal from an estimated 1.2 billion bushels of soybeans in 2011. Poultry consumed the majority of that soybean meal: 46 percent; hogs consumed 24.5 percent of that soybean meal; and dairy and beef cattle consumed almost 20 percent combined.
“Soybean meal provides a quality feedstuff to poultry and swine operations across the country,” says John Butler, a soybean farmer and former USB director from Dyersburg, Tenn. “And cheaper meal created by a larger crush helps boost animal farmers’ bottom lines.”
Livestock and poultry farmers also benefit from increased animal carcass values, as animal fats can be used to make biodiesel, too. In 2011, biodiesel producers utilized 1.29 billion pounds of animal fats, which contributed to nearly 30 percent of the total production.
This year, the use of 1.28 billion gallons of biodiesel will be required in the United States. To meet those requirements, manufacturers will need 9 billion pounds of vegetable oils and animal fats. At least 4.8 billion pounds of that could be soybean oil.
“It’s important to realize that sometimes, in our country, it might not be feasible for us to use biodiesel based on location,” adds Butler. “But U.S. biodiesel production still directly benefits us as an agriculture industry, and will continue to do so in the future.”
Source : unitedsoybean.org