Availability of raw materials

Demand for biodiesel is strong, and the overall US market for diesel fuel is huge. But there simply aren’t enough oil crops and animal fats available to supplant much of it. For the 2005/06 crop year, biodiesel production accounted for 5% of soybean-oil use. That’s expected to rise to 13% for 2006/07, representing about 8% of US soybean production in 2006, according to Keith Collins, USDA chief economist. However, because the demand for raw materials is increasing, Brazil and Arge