A new year always brings predictions for what is in store for the next 12 months. This issue of Render is no exception as there appear to be plenty of challenges and opportunities for renderers in 2016.
First up is the extension of federal tax credits for biodiesel, renewable diesel, and alternative fuel mixtures. Combine this with the Environmental Protection Agency finalizing Renewable Fuel Standard volumes for alternative fuels a month prior and this market for rendered fats and oils should stabilize this year. However, getting volumes pegged down for subsequent years beyond 2016 (2017 for biomass-based diesel) along with increased imports of biofuels from other countries, especially Argentina, will continue to make this arena challenging and a prime focus.
Renewable diesel use continues to gain popularity in government and private fleets, as described in this issue’s Biofuels Bulletin on page 20. This is good news for renderers as most renewable diesel is produced using animal fats. However, again, increased imports of this fuel could hinder a rise in the use of rendered products and, subsequently, in product prices.
One of the biggest regulatory issues this year will be complying with the new Food Safety Modernization Act by September for most renderers (smaller firms have until 2017, and very small companies have until 2018). Add to that Occupational Safety and Health Administration activities and a new truck monitoring rule and 2016 will see a lot of government hub-bub in our daily working lives.
Livestock feed and pet food remain important customers for rendered products. Yet pressure from other feed ingredients, and the continued humanization of pets, will force the rendering industry to work diligently at educating all on the nutritional benefits of animal proteins and fats in feed.
These challenges are nothing new to renderers, who remain passionate about what they do and the products they produce. However, it will take a collaboration of industry leaders to ensure these hurdles can be easily cleared in 2016.
February 2016 RENDER | back