Archer Daniels Midland Co. has just announced a 5-year plan to invest in nearly 30,000 acres (equivalent to around 12,000 ha) of palm trees in Brazil and build a new processing plant to produce palm oil that may be used in the production of biodiesel.
"This investment adds a new crop to our value chain in Brazil and diversifies our feedstock options for biodiesel production there, while at the same time supporting our commitment to sustainability in terms of both agricultural production and the livelihoods of farm families in Brazil," CEO Patricia Woertz said in a statement.
My comment: a reality in Brazil is soy-bovine fat blends (usually 80:20) used in biodiesel production. Other feedstocks are less common and palm oil as a raw material has a clear "image" problem related to deforestation in Indonesia..Hence a large company such as ADM may have to do a lot of explaining as to why it is not focussing on widely available soy (and bovine fat) as raw material, especially in light of high palm oil prices. Strange decision.
Read more: http://www.chicagobusiness.com/article/20110209/NEWS05/110209851/adm-investing-in-brazilian-palm-trees#axzz1EJD7aBcK
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