 |
|
Soybean/Soybean Oil Biodiesel Project - n/a Enterprise & Agriculture United States 2003 - 2004 USDA |
Researching Market Opportunities for Arkansas Farmers
RATIONALESoybean production is one of the largest agricultural enterprises in Arkansas. Farmers in eastern Arkansas have been negatively affected by the consolidation of the soybean processing industry and the limited number of soybean processors that are currently available in the state. Freight costs have become a heavy burden. Farmers are seekiing ways to improve profitability. The most promising opportunity seems to be expeller pressed soybean meal for animal feed markets and bio-diesel production from the soy oil. Studies have shown that expeller pressed soybean meal has significant nutritional advantages for feeding certain livestock and fish compared to conventional soybean meal. Also, with recent changes in regulations and technology improvements, bio-diesel has received positive publicity and support from consumers, government and industry. There is no research currently avaiilable on the economic benefit of coupling small expeller pressed soybean meal and oil facilities with smail bio-diesel production facilities. These facilities could be located closer to rural communities and provide new market opportuinites for farmers.
OBJECTIVES
Assist farmers in pooling their resources to access better markets and improve profitability of locally produced crops.
ACTIVITIES
The focus of this project will be to conduct research resulting in a written document covering the following areas: local market potential for expeller pressed soybean meal, bio-diesel oil, and other by-products; analysis of available resources for the location, design, development, and use of a processing facility; and financial analysis focused on the feasibility of coupling soybean oil extrusion and bio-diesel production. The results of this research will help determine if this would be a viable option for Arkansas farmers and recommendations will be made for developing a business plan.
ACCOMPLISHMENTS
The following tasks were completed:
- Research: Winrock conducted detailed research to determine the merit of constructing expeller pressed soybean meal and oil production facilities coupled with bio-diesel production facilities for the purpose of improving markets for farmers in the project area.
- Market Research: Winrock conducted necessary market and legal structure research required to determine the merit of selling locally produced soybean oil to a local bio-diesel plant.
- Document Production: Contains vital information needed by Arkansas farmers to determine whether to go forward with plans to construct and operate a bio-diesel production facility coupled with an expeller pressed soybean meal facility. These project documents determined whether the idea should be taken to the next step, which is to complete a business plan.