Other Presentation on Biofuels and Food Production: A systemic approach to study the relations and implications in complex agriculture markets

1. Biofuels and Food production a systemic approach to
study the relations and implications in complex
agriculture markets
Workshop on Biofuels and Food Security Interactions

2. Opportunities and weakness of biofuel/bioenergy drivers
I + D + i
Energy and
food
demand
evolution
• Population growth
• GDP evolution
• Urbanization
• Demand control
Energy
security
• Import dependency
• Foreign currency needs
• Natural resource
Environment
• Pollution
• Climate change
• Fragile ecosystems
Fosile fuel
substitution
alternatives
• Conventional and non
conventional fosile fuels
• Non conventional sources

3. WE MUST ALWAYS TAKE IN MIND HOW WE USE ENERGY IN ALL
FORMS WITH A SYSTEMIC APPROACH
WERE ARE WE HEADING AS MODERN SOCIETIES IN THE USE OF
ENERGY AND FOOD RESOURCESS

4. Food fuel studies must consider all the
components of bioenergy chain
Feedstock's
Conversión
process
Energy
carriers
(solids,
liquids y
gases)
Equipment
for biofuels
use
Final
products
(electric,
mechanic,
heat use).

5. Crop type
C3/C4
Soil use
Biofuels
Coproducts
National
regulations
International
regulations
MarketsTransport &
logistics
Food demand & diet
patterns
New
technologies
Use of agricultural
product dynamics
Conventional
energy
Agrochemical
supplies
Climate and crop
health
COMPLEX
MULTIPLE
INTERACTIONS
UNKNOWN IN
MARKETS
HISTORY

6. Bioproducts
(bioplastics,
biomolecules,
biophármaco etc.)
Biomaterials
(construction,
paper etc.)
Human food
Pets food
Fodder and animal food
Biofuels - Bioenergy
BIOMASS ADDED VALUE
ADDED VALUE OF THE TRANSFORMING PROCESS

7. Instalation
through
media
Sustainability public perception & awareness installation
in society and its consequences
Economic actors
NGO
“SCIENTIFIC”
SUPPORT
$$

8. Instalation
through
media
PUBLIC
PERCEPTION
CHANGE
Politician
Answer
Sustainability public perception & awareness
installation in society and its consequences
Economic actors
NGO
“SCIENTIFIC”
SUPPORT
$$

9. Instalación
del tema en
los medios
CAMBIO
PERCEPCION
PUBLICA
Respuesta
política
Regulation and
control
departments
REQUIREMENTS
Sustainability public perception & awareness
installation in society and its consequences
Economic actors
NGO
“SCIENCE”
SUPPORT
$$

10. Instalation
through
media
PUBLIC
PERCEPTION
CHANGE
Politician
Answer
Regulation and
control
departments
REQUIREMENTS
Search for
scientific
support of
new
measures
Universities
Research
Institutes
Sustainability public perception & awareness
installation in society and its consequences
Economic actors
NGO
“SCIENTIFIC”
SUPPORT
$$

11. Installed paradigms
 Direct relation between production capacity
and food security
 Food competence
 Advantages of non food crops (II generation) n
 Superior costs than conventional fuels
 Direct relation between crop use and biofuel
production
 Increase crop production altering forest areas
 Relative advantages on GHG savings
 Neutral or low Energy balances

12. Define the product :Principle characteristics of biofuels large
scale production
•Derive from a well established transforming chains (food,
fiber, feed etc.)
•Produced from a coproducts of flexcrop production
•Rely on logistics and size economy savings already
established.
•Produces multiple impacts in established markets generating
new products, price movements, replacements, food feed
patterns etc.
•Much affected by policy and administrative changes inside
and outside country boundaries
•The industry were feedstock transformation occurs has great
plasticity to produce or not the biofuels according to prices
profit etc.

13. Argentina is the principal provider of flour,protein feed, oil and biodiesel based on
soybeans of the world
Produces enough Food to feed more tan 400 million people with a population of 40.
Argentina will continue incrementing its participation based on itshigh tech and
competitive agricultura and agroindustrial complex
Fuente: USDA-Long Term Projections, Febrero 2011
El complejo sojero ArgentinoARGENTINA SITUATION IN THIS CONTEXT

14. Aspectos Económicos
BIODIESEL INDUSTRY ARGENTINA
Installed capacity 1500 million dollars investment

15. ?????????

16. The fall in biodiesel production is producing a “comodizations” of exports since we have to sell
higher volumes in an inelastic market.
SUSTEINABILITY OF THE VALUE CHAIN
Less foreing income less tax income less investment projects less Jobs and added value.

17. Installed bioethanol capacity sugar cane plus corn
CAPACIDAD DE PRODUCCIÓN m3/día m3/año
BIOENERGIA LA CORONA 120 39.600
ALCONOA -TABACAL- 300 99.000
COMPAÑIA BIOENERGETICA LA FLORIDA 400 132.000
COMPAÑIA BIOENERGIA SANTA ROSA 120 39.600
BIO SAN ISIDRO 50 16.500
BIOTRINIDAD 160 52.800
RIO GRANDE ENERGIA 90 29.700
BIO LEDESMA 300 99.000
ENERGIAS ECOLOGICAS DE TUCUMAN -
GRUPO COLOMBRES-
100 33.000
VICENTÍN 180 60.000
BIO IV 250 82.500
PROMAIZ S.A. 440 145.000
ACABIO 440 145.000
DIASER 250 82.500
SUBTOTAL 3.200 1.056.200
BIOENERGIA LA
CORONA
4%
ALCONOA -TABACAL-
9%
COMPAÑIA
BIOENERGETICA LA
FLORIDA
12%
COMPAÑIA
BIOENERGIA SANTA
ROSA
4%
BIO SAN
ISIDRO
1%
BIOTRINIDAD
5%
RIO GRANDE
ENERGIA
3%
BIO LEDESMA
9%
ENERGIAS
ECOLOGICAS DE
TUCUMAN -GRUPO
COLOMBRES-
3%
VICENTÍN
6%
BIO IV
8%
ACABIO
14%
DIASER
8%
PROMAIZ S.A.
14%
BIOENERGIA LA CORONA
ALCONOA -TABACAL-
COMPAÑIA BIOENERGETICA LA FLORIDA
COMPAÑIA BIOENERGIA SANTA ROSA
BIO SAN ISIDRO
BIOTRINIDAD
RIO GRANDE ENERGIA
BIO LEDESMA
ENERGIAS ECOLOGICAS DE TUCUMAN -GRUPO COLOMBRES-
VICENTÍN
BIO IV
ACABIO
DIASER

18. Large plants

20. Infraestructure demands
of the agroindustrial complex
Biofuel industry growth was based on this advantages
18 20
30
40 38
-
5
10
15
20
25
30
35
40
45
2006 2007 2008 2009 2010
millionsoftons
Storage capacity for grains in silo bags
•Trains
•Roads
•Ports
•Storage capacity
•Feed industry

22. 0
1000
2000
3000
4000
5000
6000
7000
8000
0
5000000
10000000
15000000
20000000
25000000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
thousandTons
thousandHA
Years
Argentine Soybean cultivated area with regards to its Biodiesel and oil
production
Cultivated area (thousand Ha)
Soybean Oil (thousand tons)
Biodiesel (thousand tons)

23. INTERNAL MARKET OPORTUNITY DIFFERENCE BETWEN
IMPORTED DIESEL AND NATIONAL BIODIESEL

24. REGULATION FRAMEWORK
LAW 26093
“Regulation and promotion of sustainable biofuels
production and use”
ARTICLE 7. –MANDATORY BLEND OF 5 % BIODIESEL AND BIOETHANOL IN GASOLINE AND DIESEL
SOLD IN ARGENTINA FROM 2010
LAW 26190
“National regime for the use of renewable energy
for the production of electric energy”
ARTICLE 2º — 8 % OF THE TOTAL ELECTRICITY MUST BE PROVIDES BY RENEWABLE SOURCES
FRO2010

25. PARTICULARITIES OF A VERY HIGH
DEVELOPED AGRICULTURE PRODUCTION
SYSTEM
Intensive application of technology
Farmers knowledge share
History and experience
Presition agriculture
CROP PRODUCTION CHOICE
IS BASED ON COMPARATIVE PROFIT

26. High tec mature farm
machinery technology
Development of high level
employment in rural towns

27. Diesel emitions (TnCO2) 8.873.055
Biodiesel Min (TnCO2)
3.215.134
Mean reduction (TnCO2) 5.657.921
Diesel emitions (TnCO2) 16.912.164
Biodiesel emitions (TnCO2)
7.014.988
Mean reduction (TnCO2) 9.897.175
DOMESTIC MARKET
EXTERNAL MARKET
GLOBAL SAVINGS
2010-2013
15.555.096 TnCO2

28. New challenges for the agricultural
residue use
Carbon balance
Wind and water erosion control
Water cycle
Nutrients cycle and reposition
Edaphoclimatic factors interactions
Models for each agro ecological region
29

29. ARGENTINA
No till technolgy conserves energy water
resources and carbon in the soils
MORE THAN 80 % OF THE SURFACE
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%

30. FOOD CONTROVERSY ??
1/3 of food is thrown in the world according to FAO 2011
study
1.300 millones tons per year

31. United States 346 $/week Germany 500 $/week
Ecuador 31,5 $/weekTchad Africa 1,62 $/week
Peter Metzel amount of food and money spent by a family per week

32. Indirect impacts weakness and
risks

34. LUC & ILUC
EXTERNAL FORCES ACTING OVER THE SYSTEMS
50.000
2014
HISTORIC DROUGH
DOMESTIC POLICY

35. 36
http://inta.gob.ar/bioenergia

36. New books

37. THANK YOU
DISCUSSION………
• Ing.Agr. M.Sc. Jorge A. Hilbert
– INTA y UTN
– Tel +54 11 4665-0495 0450
– Mail hilbert.jorge@inta.gob.ar
–http://inta.gob.ar/bioenergia