This week, ABA and other food trade associations urged EPA to utilize its legal authority to reduce the amount of advanced biofuels and the total renewable fuel needed this year. EPA anticipates cellulosic biodiesel shortfalls in 2013 and to compensate for this reduction, there will likely be a continued increase of advanced biofuels. This would mandate the increased use of food crops, such as virgin vegetable oils. With a 2013 mandate of 1.28 billion gallons of biodiesel, the USDA in its recent Agricultural Outlook Conference forecast, “The use of soybean oil for U.S. biodiesel production is projected at 5.2 billion lbs. – up 300 million from 2012/13.” “At this level, soybean oil accounts for just over half of the expected U.S. biodiesel production."
USDA also acknowledged that increased use of soy oil for biodiesel would lead to a decline in soy oil for food.