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Biofuel co-products as livestock feed - Opportunities and challenges

Biofuel co-products as livestock feed - Opportunities and challenges

Biofuel co-products as livestock feed - Opportunities and challenges

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Sustainable <strong>and</strong> <strong>co</strong>mpetitive use of <strong>co</strong>-<strong>products</strong> <strong>as</strong> <strong>feed</strong> in the rural bio-ethanol industry 287efficiency. It is also fe<strong>as</strong>ible to establish market linkages withthe animal production sector <strong>and</strong> to position the nutritionalsupplements b<strong>as</strong>ed on their <strong>co</strong>mpetitive production price in<strong>co</strong>mparison with <strong>co</strong>mmercially available <strong>products</strong>. However,the work <strong>co</strong>nducted by CLAYUCA <strong>and</strong> <strong>co</strong>llaborating agencies,institutions <strong>and</strong> private sector <strong>co</strong>mpanies h<strong>as</strong> focusedon a strategy designed to promote biofuel production <strong>and</strong>use by small-scale <strong>co</strong>mmunities <strong>and</strong> farmer groups, i.e. theRUSBI approach. In this sense, the initial beneficiaries ofthe technology developed for the preparation <strong>and</strong> use ofthe nutritional supplements will be the <strong>co</strong>mmercial groupsthat are already operating the bio-ethanol distilleries, withlarge volumes of effluents that need to be managed withe<strong>co</strong>nomic <strong>and</strong> environmental efficiency. The small-scalerural <strong>co</strong>mmunities, <strong>co</strong>operatives <strong>and</strong> farmer groups thatthe RUSBI approach is targeting will not be able to <strong>co</strong>mpetewith the large-scale biofuels distilleries <strong>and</strong> sugar caneoperations. The objective of the RUSBI approach is not toenter this market. What RUSBI aims to achieve is to addvalue to the biofuels that can be produced by small-scalefarmers, promoting local use, for their own <strong>co</strong>nsumption,or for <strong>co</strong>mmercialization in local markets, supported by thegovernment (social ethanol) or by private-sector initiatives.The sustainable, <strong>co</strong>mpetitive management of the effluentsbe<strong>co</strong>mes a plus <strong>co</strong>mponent of this approach, with potentialto help farmers improve the <strong>feed</strong>ing systems for their animals<strong>and</strong> incre<strong>as</strong>e in<strong>co</strong>mes.For facilitating access by target farmers to the potentialbenefits of these technologies, the rural social biorefinerieshave to be promoted <strong>and</strong> established in the rural are<strong>as</strong>,<strong>and</strong> this process may still require some time, <strong>co</strong>nsideringthe initial investment required (around US$ 100 000 fora 300 L/day distillery). CLAYUCA h<strong>as</strong> been working ongenerating the data required to <strong>co</strong>nvince <strong>and</strong> sensitizenational <strong>and</strong> local governments, rural development agencies<strong>and</strong> the donor <strong>co</strong>mmunity, regarding the importanceof supporting strategies aimed at promoting production<strong>and</strong> local uses of biofuel by poor farmers, located in remotevillages, <strong>and</strong> lacking access to any source of energy. Astudy w<strong>as</strong> <strong>co</strong>nducted (Gomes, 2010) to evaluate the technical<strong>and</strong> e<strong>co</strong>nomic fe<strong>as</strong>ibility of the implementation of arural social biorefinery (500 L/day) in three rural are<strong>as</strong> ofColombia (Puerto Carreño, La Macarena <strong>and</strong> Leticia), withproblems of high energy <strong>co</strong>sts <strong>as</strong> a <strong>co</strong>nsequence of theirtotal dependence on fossil fuel. The study <strong>co</strong>ncluded thatthe implementation of the rural social biorefinery project isviable in one region (La Macarena), in which all the g<strong>as</strong>oline<strong>co</strong>nsumed h<strong>as</strong> to be brought in from other regions, at veryhigh <strong>co</strong>st. In <strong>co</strong>ntr<strong>as</strong>t, in other regions, due to their proximityto other <strong>co</strong>untries (Venezuela <strong>and</strong> Brazil) that guaranteesa steady supply of g<strong>as</strong>oline at lower prices, the bio-ethanolproduced in the rural social biorefinery would not be <strong>co</strong>mpetitive(Figure 5).Another study, <strong>co</strong>nducted in Brazil (Rosado, 2009),evaluated the e<strong>co</strong>nomic fe<strong>as</strong>ibility of establishing a smallscalebiorefinery, with a specific focus on small rural properties.The viability of the operation of the distillery w<strong>as</strong>analysed for both a <strong>co</strong>operative system <strong>and</strong> an <strong>as</strong>sociationtype of organization. The operation of the biorefinery <strong>as</strong>part of a productive model within a large rural property w<strong>as</strong>also simulated. The analysis <strong>co</strong>nsidered two raw materialoptions: sugar cane plus sweet sorghum, <strong>and</strong> sweet potatoplus sweet sorghum.The e<strong>co</strong>nomic analysis w<strong>as</strong> carried out through a c<strong>as</strong>hflow simulation for a period of ten years, including the taxationelement <strong>as</strong> appropriate for each c<strong>as</strong>e. Different levelsFIGURE 5Comparison of g<strong>as</strong>oline, g<strong>as</strong>ohol <strong>and</strong> ethanol prices in 3 regions of Colombia1.61.41.411.21.171.211.17 1.191.1410.80.670.920.850.60.40.20Leticia La Macarena Puerto CarreñoPrice per liter of g<strong>as</strong>olinePrice per liter of g<strong>as</strong>ohol(30% ethanol)Production <strong>co</strong>st x liter of ethanolSource: Gomes, 2010.

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