1. Feedstock Options for Biodiesel Production Jon Slee Marketing Manager Riverland Oilseed Processors

2. Outline Main sources – Animal & Vegetable What drives prices S & D World & Australia Summary

3. Main sources – Animal & Vegetable Tallow  Fancy  White  Edible  K Grade (NZ Tallow) Yellow Grease Recycled Fat Canola/Rapeseed Soybean Oil Palm Oil  Palm Olein  Palm Sterein Sunflower Groundnut

4. What drives prices: World oil/fat supply & demand (stock to use ratio) Substitution (Lowest cost oil Vs Intrinsic Use) Feed Energy Costs (Floor price fat Vs Grain) Logistics (Freight rates, shipping delays etc) World move to “Just In Time” (JIT) Politics – Import tariffs/duties Biosecurity – BSE, Non GM Markets Biodiesel & Biomas

5. The bottom line: Import Parity Vs Export Parity Increase demand domestically for feedstock and the price will increase to an import parity level.  Eg Rapeseed Oil Price 5yrs ago in EU was US$20 premium to Sth American Soy today it is trading at US$200 premium.

6. World Oilseed Production

7. World Vegetable Oil Production

8. CBOT Soyoil Price (Monthly) US Cents per lb Eg 25 cents * 22.0462 = US$551.16

9. A$ Vs US$ Soyoil @ US$551 / 80cent = A$688 Soyoil @ US$551 / 50cent = A$1102

10. International Oil Price Snap Shot: Prices as per Oilworld Estimates US$ Per metric Tonne

11. Yellow Grease vs. CBOT Corn

12. US Cattle Slaughter

14. Australian Tallow Production

15. Australian Tallow Markets

16. Summary: Multiple Feedstocks available (opportunity cost) Export Vs Import parity Price Currency Can Play a major role Large Variation in regional supply Think about the long term and look global