U.S. Biodiesel Import Limit Opens Door to Canola – The Western Producer
by Sean Pratt (Western Producer) A biodiesel trade war in the United States should result in new demand for Canadian canola oil, says an economist.
The U.S. commerce department issued a preliminary ruling last week paving the way for antidumping duties on imports of biodiesel from Argentina and Indonesia.
He (Scott Irwin, agricultural economist with the University of Illinois) said it is impossible to statistically determine what impact the duties have had on imported biodiesel because the most recent import data is a few months old. However, there is plenty of anecdotal evidence.
“Of all the people I’ve talked to in the industry, it’s a full-on stop of biodiesel imports to the U.S. from Argentina and Indonesia,” he said.
That is 2.1 billion litres of supply that is going to have to come from somewhere else now that the duties are in place.
“The simple answer is that the U.S. then uses all of its own biodiesel production capacity,” said Irwin.
There are 15.9 billion litres of biodiesel production capacity in the U.S. but only about 7.6 billion litres of actual annual production.
“We’ve got a lot of excess capacity that could easily make that up domestically,” he said.
The question is, is there enough soybean oil to feed those plants?
“I suspect that the U.S. just might see its soybean oil exports dry up completely and we’ll just use it all domestically,” said Irwin.
“It’s hard to see how we’re not going to have to import some soybean oil, canola oil or something,” he said. READ MORE