Oil obtained from soybeans is a key input to produce biodiesel.
“On Monday we had breakfast with exporters transferred the impact of the soybean dollar at $ 200 to the local market and we started having a raw material with an increase of between 45% and 47% overnight”Said the biodiesel producers who preferred not to reveal their identity.
The increase it has a strong impact on the cost structure of the 28 SMEs that make up this sector producing 60,000 tons per month since then soybean oil is the main input for the production of this biofuel, representing 85% of production costs. For this reason, this increase “puts the numbers in the negative,” they say.
The manufacturing companies had agreed with the Ministry of Energy on a price of $ 220,000 for biodiesel for the entire month of September, but 45% lower FAS value of oilseed oil was considered for this calculation compared to that established by the exporters, those who supply this input, after the entry into force of the decree that fixed a dollar of soy at $ 200. “Today with a price of our product of 220,000 dollars, it is impossible to buy the raw material at value required by oil companies “, underlined the producers. For this, at this moment there are no oil operations and there is no production of biodiesel.
To put it in numbers, yesterday, for example, for an oil that last week it would sell for $ 140,000 in the local market, asking for $ 195,000. “It’s very simple, in order to sell for $ 220,000, which is the price we have, we have to buy for $ 130,000 or $ 140,000 otherwise we can’t cover the costs,” say biodiesel SMEs.
“We ask that the FAS value of oil support us. Last week it was between USD 900 and USD 950, depending on the day, and on Monday it was USD 1,365”They said.
The blocking of soybean oil purchases and biodiesel production could also affect diesel production, already in a delicate supply situation.
Faced with this scenario, either the prevailing FAS price for soybean oil prior to the current soybean dollar could be maintained and allowed biodiesel to be sold for $ 220,000, or the latter value of sales to oil companies. it may have increased, which may be difficult for companies to accept. For their part, SMEs argue: “It is impossible to sustain this increase in raw materials, we would make a loss”.
These days, biodiesel producers and energy ministry officials have frequent conversations to find a quick solution to the problem, and SMEs hope it will be resolved within the next week.