The combination of rising energy costs, increased global commodity demand, and the weak dollar are the main causes of rising food prices. It is important to note that U.S. biodiesel production is not a significant factor. In fact, in 2007, only 12% of U.S. soybean production and 4% of global soybean production was used by the U.S. biodiesel industry to produce fuel. And from the soybeans used to produce biodiesel, 81% of the soybean’s yield is protein that enters the market for
either human consumption or animal feed. Technological advances are certain to increase soybean yields from existing acreage in the future. In addition, other sources of biodiesel feedstock – such as restaurant grease, animal fat, corn oil derived from ethanol production, camelina, and algae – are currently being developed and utilized.