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Biodiesel Increases Vegetable Oil Price - 5/22/08

More attention is being drawn toward the Food to Fuel topic. It is being reported there are worldwide shortages and soaring prices for palm oil, soybean oil and many other types of vegetable oil.

The food price index of the Food and Agriculture Organization of the United Nations climbed 37% last year. This is up from the 14% increase in 2006.

China has put price controls on cooking oil, grain, meat, milk and eggs. Protest has erupted in Pakistan over wheat shortages and in Indonesia over soybean shortages.

Half the demand growth for vegetable oil is coming from biodiesel and ethanol which represents 7% of the total consumption of the oils.

In 2001 palm oil was $220 a ton, in 2007 it was $600 a ton and now it is above $1,000 a ton, five times more than in 2001.

Will petroleum oil production peak and start declining? I believe it has peaked. As the price of petroleum oil goes up the price of vegetable oil will follow. It causes more demand for vegetable oil to be turned into biodiesel.

Where will all this lead? I believe an effort equal to putting a man on the moon needs to be started yesterday to create a massive build up of nuclear and wind power. Also, the promotion of other alternative energy needs to be taken seriously, reducing the demand for agriculture products to produce fuels like biodiesel. Biodiesel is not a bad thing, but it should only be a small part of the overall solution.

Start making your own biodiesel fuel for only 70 cents a gallon! - Fuelmeister Biodiesel Processor

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