Biodiesel can increase livestock production’s profitability

Biodiesel is known for powering vehicles across the country—but it also works for poultry and livestock farmers by powering their profitability.

That was the message at Western Dubuque Biodiesel’s plant, where soyabean groups hosted a tour of the biodiesel facility and gave an economic presentation to members of the state livestock industry.

The United Soybean Board (USB), Iowa Biodiesel Board (IBB) and Iowa Soybean Association (ISA) hosted about 40 ag leaders to share information and answer questions on how biodiesel impacts the profitability of the livestock industry. 

An increased demand for biodiesel also increases the demand for US domestic soyabeans to crush, growing the supply of soyabean meal.

This greater supply lowers the meal’s price, which decreases the relative cost of it to poultry and livestock farmers.

That means in addition to soybean farmers, animal agriculture also benefits from biodiesel.

‘Animal agriculture is the soyabean farmer’snumber one customer with 97% of soybean meal going to feed poultry and livestock,’ says Delbert Christensen, a soybean farmer from Audubon, Iowa and director at USB. ‘Biodiesel helps animal agriculture by creating demand for soyabean oil, which helps lower the cost of animal feed and creates an additional market for animal fats.’
 
Increased demand for biodiesel helps keep soyabean meal prices competitive as demand for soybeans continues to rise globally.

‘In the last five years, biodiesel has lowered soybean meal prices by at least $21 (€19) per tonne,” says Alan Weber, a National Biodiesel Board consultant and fellow farmer.

Biodiesel demand impacts more than meal costs for animal ag farmers as animal fats and tallow can also be used to make biodiesel, adding value to their products.

For Iowa farmers, these meal savings and increased fat and tallow values really add up.

Weber notes that in 2013 alone, pork farmers saved $60,802,700 and dairy and beef farmers saved $25,511,700 respectively, which helps strengthen animal agriculture in Iowa.

In addition, glycerin, a byproduct of the biodiesel manufacturing process, can go back into farmers’ feed troughs as an additional energy source, creating a full circle.

Soyabeans act as a common thread between the biodiesel and animal ag industries to fuel profitability in new ways.

‘It’s important for pork, poultry and other livestock farmers to understand the connection between biodiesel and increased profitability,’ says Christensen. ‘Soybean and animal farmers may wear different hats, but we all benefit from biodiesel.’

The Iowa Biodiesel Board is a state trade association representing the biodiesel industry.