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FOR IMMEDIATE RELEASE: May 5, 2008 JEFFERSON CITY - Consumers across the state are facing soaring fuel prices and higher grocery bills. Missouri soybean farmers are working to help alleviate both issues for consumers with biodiesel. Biodiesel is capable of extending the country’s limited fuel supply and creating an abundance of livestock feed. By increasing the supply of both feed and fuel, the biodiesel production process puts downward pressure on prices. The state’s House Transportation Committee recently held a hearing on legislation that would require all diesel fuel sold in Missouri to be blended with 5 percent biodiesel fuel. Dave Drennan, executive director of the Missouri Dairy Association, testified in support of the biodiesel legislation. “The Missouri Dairy Association supports biodiesel and this bill,” said Drennan. “As more soybeans are crushed to meet the demands of biodiesel producers, more soybean meal is made available to livestock producers in greater quantities. Affordable feed is important to maintaining any dairy operation. By increasing the supply of soybean meal, biodiesel helps dairy producers keep costs down.” High fuel prices have also impacted dairy prices. According to the Missouri Department of Transportation, 85 percent of all products that are produced and purchased in the state are shipped by diesel-powered trucks. Despite local dairy production, Missouri is a milk-deficit state and imports 1.7 billion pounds of milk from other states each year. “If you put that much milk in tanker trucks end-to-end, the line would stretch westward from downtown St. Louis past Salina, Kansas,” said Drennan. “We are talking millions of dollars in transportation costs alone. We could put that money to work in Missouri if we could grow our dairy industry and use more biodiesel.” According to the Food and Agricultural Policy Research Institute at the University of Missouri, rising usage of soybean oil to produce biodiesel has strengthened soybean oil prices while weakening soybean meal prices. This means more livestock feed is available at lower prices. Soybean meal is created when soybeans are crushed to extract the oil needed for biodiesel. Soybean oil is the only part of the soybean needed to produce biodiesel. For every gallon of biodiesel that is produced, 4 gallons of livestock feed are created. “Without a doubt, biodiesel production has dramatically increased our soybean crushing capacity in Missouri,” said Greg Sharpe, Lewis County farmer and president of the Missouri Soybean Association. “We know we can provide enough feed for animal agriculture, food for people and fuel for consumers. When you look at the facts, it’s easy to see how biodiesel is positively impacting feed prices. Cheaper feed prices give livestock producers the ability to produce meat and dairy products more affordably; and that can only benefit consumers at the supermarket.” ###
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© Missouri Soybean Programs |