Soy to power Argentina's biodiesel industry

Argentine soy farmers may find another opportunity in biodiesel production, according to a June 23 report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture.

 

Argentina, according to FAS, is one of the world's top producers and exporters of biodiesel as it is seen to produce 880 million litres, representing roughly 40 percent of the production capacity the country will have by the end of the year. FAS said that practically all production would be exported, with the EU being the main market by far.

 

On the other hand, FAS forecasts show that local consumption will grow significantly beginning 2010 when the official B5 mandate is in place. Production of fuel ethanol will begin in late 2009, with the focus mainly on the domestic market.

 

As biodiesel will be produced mainly from soyoil, several small plants are currently using recycled vegetable oil, sunflower, and canola (rapeseed) oil for biodiesel, according to FAS. Currently, a small distillery for alcohol in Buenos Aires is using sorghum for industrial use and a distillery in Tucuman will eventually utilise corn and sorghum in the future.

 

 

Argentina is the world's third largest soy producer and the world's top soymeal and soyoil exporter. Its current crushing capacity is roughly 155,000 tonnes a day with an annual oil production of about 7 million tonnes. Most local crushers see the production of biodiesel as an additional product that fits naturally in their global business, the FAS report states. It provides them with new opportunities for diversifying products and markets. However, this year's short crop due to a widespread drought (soy production will be 33 percent smaller than expected) will negatively affect supply and processing.