The president of the National Agency of Investment Developments, Beatriz Nofal and Jorge Piwko, director of Biodiesel del Plata, announced this morning the inauguration of a biodiesel plant using used vegetables oils.Â

Associated to spanish capitals, Piwko formed the company of renewable energy Ricard Set and with a total investment of u$s1,5 million the plant was built to produce biodiesel with an installed capacity of 1.200 monthly tons of biodiesel and 500 tons of industrial glycerine to 85% concentration, destinated to the export. It is forseen that the commercial production will begin in June.Â

Biodiesel del Plata is developing a plan of biodiesel elaboration starting from the gathering of used vegetables oils that will involve non governmental organizations, public and private schools, and beneficiaries of social plans and street collectors, creating ecological conscience and collaborating in the achievement of a clean and sustainable development in time.Â

This way, this initiative contributes doubly to reduce the levels of contamination. On one hand, because the vegetable oils of domestic use when they are degraded and poured by the drainages, they form films in the water that impede their oxygenation and they complicate the correct purification of the residual waters.Â

On the other hand, the biodiesel possesses aptitude to replace the fossil fuels in any conventional diesel motor providing significant reductions in the emanation of particles and of carbon monoxide in comparison with the petroleum diesel.Â

Also, their biological cycle in the production and the use reduces approximately in 80% the emissions of carbonic anhydride and almost 100% those of sulfur dioxide; and their combustion diminishes in 90% the quantity of total not burned hydrocarbons, and between 75-90% in the aromatic hydrocarbons.Â

ProsperAr will facilitate the access of Biodiesel del Plata to the support programs for the patenting that the national Government ahead is carrying out in the area of Science and Technology as well as the contacts with the authorities of investments of the county of Buenos Aires and their participation in commercial missions and international fairs.Â

Source:Infobae

A detailed study of the direct costs, of commercialization, harvests and tributary clearifies the numbers of the agriculture.

Of each $10 that a soya producer wins in Santa Fe, the State takes away $7.9. And of each $10 that a wheat producer wins in Santa Fe, the government takes away $6.9. Keeping up to 80% of the earnings, the government is already today the wholesale partner of the producer.

From where do the numbers arise? Punto Biz carried out a detailed study of the structure of the cost of the producers of the nucleus area to see the real incidence of the tax load.

Nobody likes to show their real numbers a lot, so Punto biz carried out several consultations to producers of the area in order to be able to compare them and to have a real estimate. Next, the results.Â

The case of the soyaÂ

For this report, a yield of 32 quintals per hectare and a price of $840.89 per clean ton for the producer was considered.Â

That value results of calculating a price of u$s 460 per ton FOB, to wich according to the new “chart”-it is necessary to subtract 40.48% in retentions, for what results u$s 273 per ton. To that price it must be rested u$s 6 of fobbing expenses and it results u$s 267 per ton ($840.89 to an exchange rate of 3.14)Â

Regarding direct costs, in this case the producer spends per hectare $144 in works, $127 in seeds, $623 in agrochemics and fertilizers; adding as result $893 per hectare.¼br />  Regarding crop costs and commercialization, in this case the producer spends $202 in crop (7.5% of full price per yield), $250 in freight (short and long), $35 in conditioning and 81 in commission (3%); resulting an expense of $567 per hectare. It is also necessary to add expenses of structure that is of $160.Â

When speaking of taxes, provincial taxes add up to $50 and the tax to the check adds $32; giving an operative result of $987 per hectare. To that value it is necessary to subtract 35% of Earnings (Ganancias) ($345), resulting then $641 and then $60 of Personal Goods (Bienes Personales).Â

In definitive, the producer had left $582 clean per hectare. Now, how much was left for the State? If all the taxes are added, the sum gives $2.318 per hectare. Simpler: 79% of the income.Â

Is it bette for the corn?Â

For this report, we took a yield of 90 quintals per hectare at $502 the ton. That value arises of u$s 220 per ton minus 24.5% of retentions, that gives u$s 166 per ton FAS and to wich it is necessary to subtract u$s 6 of fobbing, resulting finally u$s 160 per ton ($502 to the exchange rate of 3.14)Â

Regarding direct costs, per hectare the works cost $144, the seeds, $349; and agrochemics and fertilizers, $762; adding $1.255.

Regarding commercialization costs and harvests, they have to pay per hectare $317 for crop (7% of the full price per yield), $702 for freight (short and long), $126 for conditioning and $136 for commission (3%), adding this way $1.280. it is necessary to also add $160 in structure expenses.

Per hectare, the provincial taxes take $50, the tribute to the check results in $54 and Personal Goods costs $60.Â

In definitive, the operative result is of $1.662 per hectare. To that value it is necessary to subtract 35% of Earnings ($663) and after doing so we have as result $999. That is the clean amount that the producer wins per hectare.Â

And how much does the State take away? Adding the total of taxes paid, the State keeps $2.298 per hectare. In other words, 69% of the income of the production.

Questions and doubtsÂ

Keeping up to 80% of the earnings, the government became the wholesale partner of the producer and the questions that appear are: When the prices lower (something that sooner or later happens in all the markets) who will be able to last? What business will be able to put up with similar tax pressure? Will that be the moment when the wholesale partner of the rent takes advantage to also keep the capital? Or in other words: will that be the moment when the wholesale partner’s friends keep the capital, like is happening today with oil companies and airlines? Another doubt: a difference of $10 among what is kept by the State of the soya and of wheat is the great official incentive to combat the so called “soya boom”?Â

By Mariano GalindezÂ

Courtesy of Punto Biz for Nextfuel-Biodiesel.com.ar Š

IT WILL TURN THEM INTO THE MAYOR LOCAL PRODUCERS.

The cereal companies, that the Renova company conformed, will duplicate their present capacity in July, when they inaugurate new works. Thus, they will surpass AGD and Bunge, and Dreyfus.

Biodiesel plant/Photo: Fernando López King

The local cereal Vicentín and the multinational Glencore are building a second biodiesel plant elaborated from soya in San Lorenzo, Santa Fe, that will be ready between June and July of this year. This way, they hope to duplicate the production capacity of this biofuel that they have from last October, when they inaugurated in that point of the santafesino agro-industrial cord, one of the two majors factories in the country, with a production capacity of 240,000 annual tons.

Managers of both companies confirmed the project, although they preferred not to give more precisions. The plant that is operative, according to what was announced at the time, counts with a unit of crude soya oil refining with a capacity for 330,000 annual tons, that demanded an investment of u$s 40 million.

Renova, the company under which they merged in this business, is one of the two mayor biofuel exporting companies of the country. In fact, along with Ecofuel (the company of the other national-multinational cereal pair, Bunge and Aceitera General Deheza (AGD), that has the same present  production capacity and technology that Renova), were responsible for more of 90% of the exports of that product last year. According to the Secretary of Agriculture, in 2007, the sales of the exported biodiesel reached u$s 268 million, that came from 319,093 dispatched tons (equivalent to a value of u$s 841 per ton). Of those shipments, almost three quarters (73%) were destined to the United States, whereas the rest went to countries of Europe.

Interest of several

In the country there are eight qualified companies to export these vegetal fuels. Besides Renova and Ecofuel, the other plant that has certain weight in the export is the one that has Vicentín in its place of origin, Avellaneda, in the north of Santa Fe, with a capacity of 47,500 tons. The others are Biomadero, with a capacity for 72,000 tons, located in the Buenosairean locality of Villa Madero; Soy Energy, in the Buenosairean locality of Pilar, with a capacity for 32,400 tons; Energía Sanluiseña Refinería Argentina, in the city of Villa Mercedes, with a capacity for 30,000 tons; Advanced Organic Materials (AOM), also in the Buenosairean Pilar, with a capacity for 15,800 tons, and Biodiesel, in the santafesina Sancti Spiritu, with a capacity for 6,480 tons.

There are another five projects under construction, all in Santa Fe. Unitec Bio, of the media entrepreneur Eduardo Eurnekian, of 220,000 annual tons. Mills, food company of the Perez Companc family, began to construct a plant in Rosario, with a capacity for 100,000 tons. The French Trader Louis Dreyfus is building a greater plant, of 300,000 tons, in its General Lagos complex. Explora will produce 120,000 tons in Puerto San Martin, and Patagonia Bioenergía, 250,000 in San Lorenzo. Mean while, ACA just announced their association with two European companies to build a mega-plants of 250,000 tons of biodiesel in Puerto San Martin.

Alejandra Groba Buenos Aires

Source: Cronista.com