Biodiesel profits slim as sales rise
Posted By RichC on November 15, 2007
An analysis article written my Timothy Gardner and published in Reuters summarizes the challenges of running a biodiesel business. Although fuel prices have risen significantly and demand for alternative have tripled sales of biodiesel to 250 million gallons last year, the oil feed crops have risen as well. Soyoil, the primary oil feed crop in the U.S., have risen to a 33 year high this past year as plants continue to come online processing the oil into fuel. The spike in feedstock has pinched margins for processors and is taking a toll on profits.
According to the article, the amount of U.S. produced soyoil being used for biodiesel “should be 20% this year, which is up 6%'” The concern is that even with record crude oil prices that some biodiesel producers are still facing negative margins.
“We’ve produced capacity well beyond the ability of the market to absorb it today,” Lapp told the Soya and Oilfeed Summit 2007 this week.
And any increase in soybean production may not help much because demand for soyoil for food keeps growing as the global population rises, experts said.
Even record oil prices above $90 a barrel are unlikely to boost demand for soy biodiesel as a substitute for diesel made from crude, because the food industry will always outbid the energy industry for soyoil, Lapp said.
“The food industry is always going to be willing to do what it takes to produce that food,” he said.
To end on a positive note, the alternative and biodiesel industry is even more serious about looking into new feedstocks — ones that are not a food-based oilstock. About the only problem is that North American based oil crops are grown on traditional farms, ones that are currently growing soybeans or canola. Perhaps this new demand for ‘grown oil’ will simulated the Algae to Oil research and development?
We are all familiar with an online mailbox, but do you know about 
If you live in the city of Erie Pennsylvania (pop 102,000), or the surrounding county (pop 280,000), you will soon be seeing a significant donation being put to use through community based charities. A recent anonymous donation will benefit some 46 charities distributed through the Erie Community Foundation. A wealthy Community Foundation ‘friend,’ who wants to remain anonymous, has donated a $100,000,000 (that’s 100 million dollars) to the Erie community; this should make a significant impact on the community and people in need of charitable services in the area. What an incredible gift to a community.
In doing an informal survey of about Veterans Day this past week, it was apparent that very few people realized that it was originally called Armistice Day or Remembrance Day. (interesting the U.S. holiday is often written incorrectly with an apostrophe, but it is Veterans Day … without an apostrophe) We celebrate the U.S. State and Federal holiday on November 11th each year honoring all military veterans. The day is the anniversary of Germany signing of the Armistice that ended World War I on the 11th hour of the 11th day of the 11th month in 1918. President Wilson proclaimed the first Armistice Day in 1919. U.S. Congress then formally set November 11 as a legal ‘Federal’ holiday in 1921 to honor all those who participated in World War I along with establishing the Tomb of the Unknown Soldier in Arlington National Cemetery. It wasn’t until 1938 did Congress pass legislation that made November 11th a legal Federal Holiday. In 1954 the name was changed to Veterans Day which honored those who not only served in WWI, but WWII and Korea as well. Congress made a change to the date in 1968 which would celebrate Veterans Day as the fourth Monday in October beginning in 1971. Then in 1975 under public pressure, congress passed legislation to return the Federal observance of Veteran’s Day to November 11th beginning in 1978.
While driving through Columbus Ohio I often tune into check the traffic on AM radio 
The lobby group