USDA data show cost of food has declined despite biofuels surge

In Washington, data reported in the U.S. Department of Agriculture’s Food Price Outlook shows that the Consumer Price Index for grocery store items is 2.3 percent lower than the last year, all while biodiesel production is higher than ever.

“Food is a universal part of most holiday celebrations, and this year prices have dropped even as biodiesel production is breaking records,” said Donnell Rehagen, CEO of the National Biodiesel Board. “As we’ve said for almost a decade, more biodiesel production helps the food supply, despite what opponents incorrectly claim.”

Biodiesel production has grown steadily most years since Congress enacted the federal Renewable Fuel Standard in 2005. NBB expects a more than 2.6 billion gallon biodiesel and renewable hydrocarbon diesel market in the U.S. in 2016 – a record.

“One reason biodiesel benefits the food supply is because it is made from fats and oils. When we grow protein to feed the world, we naturally get more fat and carbohydrates than we can eat,” said Don Scott, NBB’s director of sustainability. “One example is a soybean. To produce the oil needed to make just one gallon of biodiesel soybeans make 30 pounds of protein and 22 pounds of carbs and dietary fiber for the food supply at the same time.”

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