Tallow&Market& Overview - Fats and Oils · PDF fileGlobal&Tallow&Markets&&& NRA Estimates, Render Magazine, Market Report, April 2014

Tallow Market Overview American Fats and Oils Associa6on

2014 Annual Mee6ng Kent Swisher Na6onal Renderers Associa6on

Overview

•  Produc6on and Outlook -‐ US •  Market Overview – US •  Market Overview – Global •  Biofuel Review •  Outlook

U.S. Produc6on

NRA Estimates, Render Magazine, Market Report, April 2014

U.S. Consump6on


U.S. Exports


Global Tallow Markets


Global Tallow Markets


U.S. Exports of Inedible Tallow


U.S. Exports of Yellow Grease/UCO

Source: Global Trade Atlas

Market Review -‐ EU


Comparison of Different UCO Verifica6on Requirements

RSB and Greenergy Protocol •  Requires point of origin

verifica6on and audi6ng •  Allows a single cer6ficate

for mul6ple UCO collectors •  No requirements for self-‐

declara6on points. •  Allows mixing of any UCO

that has had point of origin mixing verifica6on (cer6fica6on must be approved by RSB)

ISCC •  Requires point of origin

verifica6on and audi6ng •  Requires each company and

site to maintain its own cer6ficate

•  Requires all collec6on points to sign a self-‐declara6on form

•  Does not allow non-‐ISCC UCO to mix

EU Market Access Requirements •  European biodiesel producers require UCO carry

sustainability cer6fica6on, and that UCO include a point of origin verifica6on

•  ISCC, RSB and Greenergy have all adopted point of origin verifica6on guidelines

•  RSB accepts the Greenergy Protocol guidelines, and created guidelines based on the Greenergy Protocol

•  ISCC remains the strictest and most inflexible in their UCO verifica6on requirements

Contact

Matthew Rudolf Business Development & Americas Director

Roundtable on Sustainable Biomaterials Office: +1 919 533 4886 / Mobile: +1 919 810 2295 Skype: mateo1000 email: [email protected] www.rsb.org

Market Review -‐ China


Market Review -‐ Singapore


Singapore – Renewable Fuel Demand




According to Forbes Magazine, no one customer should exceed 20 percent of a company’s business

Renewable Fuel Market

Market Overview Global South American Soybean Oil Export Growth Limited by Growing Biodiesel ProducAon

USDA/FAS Oilseeds: World Markets and Trade; September, 2014

Produc6on/Capacity of the U.S. Biodiesel/Renewable Diesel

Market •  13 Biofuel Produc6on – 1.339 billion gal

•  13 Biofuel Capacity – 2.1-‐2.3 billion gal –  Industry opera6ng at 60% capacity

– Renewable Diesel • Diamond Green -‐ 135 million gal

•  Limi6ng Factors – RFS2, Raw Materials

Supply/Demand U.S. Biodiesel Market



The Biodiesel/Renewable Diesel Industry is Global

Supply/Demand – Raw Materials



NBB -‐ Promo6on

Why Should the Rendering Industry Care About the Renewable Diesel Industry?

Excess Supply of Compe6ng Products



Source: USDA/FAS PS&D

Corn Prices Weakening

Nearby corn trading close to $3.00/bu – equals fat value of $0.1875/lb

Palm Oil – Raw Materials

•  95% Correla6on in tallow and palm oil prices January 2003 – December 2011

•  65% Correla6on in tallow and palm oil prices January 2012-‐December 2013

Conclusion

Why Should the Rendering Industry Care About the Renewable Diesel Industry?

2013 Percent of Produc6on Going to Biodiesel/Renewable Diesel

Declining Export Markets

Declining Export Markets

Threats – IMPORTS!

US Imports of Renewable Diesel 2009 2010 2011 2012 2013 Singapore 0.0 0.0 0.0 12.2 170.4 Argen6na 1.5 0.0 0.0 0.0 123.0 EU28 0.0 0.0 5.2 18.6 115.8 Indonesia 0.0 0.0 0.0 0.0 52.4 Canada 5.5 6.9 10.8 17.8 33.0 Korea 0.0 0.0 0.0 0.0 16.8 Other 0.0 0.0 1.2 9.4 19.6 TOTAL 7.1 6.9 17.2 58.0 530.9

Million Gallons

Source: U.S. Energy Information Administration

Threats -‐ Disease Outbreak Poten6al

Outlook

•  Renderers can’t avoid the impact of the GLOBAL renewable diesel market on rendered products

•  Over 2.5 million metric tons (5.5 billion pounds) of rendered products are u6lized globally by the renewable diesel industry

•  Argen6na, Malaysia, Indonesia, Brazil are all rumored or are planning to increase biodiesel mandates

Outlook

•  U.S. Rendered Fat Exports – 18% of ProducAon

•  U.S. Rendered Fat Use in the Oleochemical Industry – 20% of ProducAon

•  Livestock feed, pet food, and carryover account for the rest

Outlook

•  “Now we see domes6c consump6on of biodiesel is the most significant factor if the government is really commiked to the program.”

•  “When this program runs smoothly, it will turn Indonesia into a major CPO consumer, thereby pushing up the global CPO price as the supply on the interna6onal market reduces.” – Fadhil Hasan, Execu1ve Director of the Indonesian Palm Oil Associa1on (Gapki)

Admin Makers

•  Small ruminant rule •  Electronic export cer6ficates •  ALAPRE – Cancun •  NRA – Palm Springs

THANK YOU

Tallow&Market& Overview - Fats and Oils · PDF fileGlobal&Tallow&Markets&&& NRA Estimates, Render Magazine, Market Report, April 2014

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