National Biodiesel Board credits increase in biodiesel production to lower food prices

The U.S. Department of Agriculture’s Food Price Outlook puts the Consumer Price Index for grocery items 2.3 percent lower than 2015, and Donnell Rehagen, CEO of the National Biodiesel Board (NBB), credits an increase in biodiesel fuel production for the reduction in food costs.

“Food is a universal part of most holiday celebrations, and this year prices have dropped even as biodiesel production is breaking records," Rehagen said in an article on the NBB website. "As we’ve said for almost a decade, more biodiesel production helps the food supply.”

The production of biodiesel has grown almost steadily since the Renewable Fuel Standard was enacted in 2005. The NBB expects 2016 will have yielded a record 2.6 billion gallons of biodiesel and renewable hydrocarbon produced in the U.S.

“One reason biodiesel benefits the food supply is because it is made from fats and oils," Don Scott, the NBB’s director of sustainability, said. "When we grow protein to feed the world, we naturally get more fat and carbohydrates than we can eat. ...A growing world population means we must grow more protein. We can’t grow protein without co-producing fat as a byproduct. Biodiesel can be produced from any fat or vegetable oil, including recycled cooking oil, animal fats and soybean oil.”