In February 2013, the latest report released by Oil World, an industry journal based in Hamburg, Germany, showed that global biodiesel production has started to decline after years of continuous increase.

In a report, he said, "Beginning in July and August (2012) this year, global biodiesel production began to decline, during which major producers reduced their biofuel output, mainly in Argentina and the United States. Moreover, There are also a small number of biodiesel producers in Brazil and the European Union that are reducing their output."

According to the report, global biodiesel production in the calendar year 2012 is expected to increase by 900,000 tons to 22.92 million tons.

However, this increase will be significantly lower than the increase of 3.7 million tons in 2011 and an increase of 2.9 million tons in the previous five years.

"Oil World" said that this is mainly due to the impact of crop weather factors in the United States and South America, soybean prices hit a record high in summer this year, which led to the decline in the attractiveness of biodiesel production, mainly soybean oil as raw material.

At the same time, the EU also made important policy adjustments in September this year. Its plan restricts biodiesel production with food as the main raw material to be within 5% of its consumption, because its previous policy has led to biofuel production boosting global food prices. The criticism of the rally.

European biodiesel producers said that the effect of this policy adjustment on the entire biodiesel industry in the EU is fatal and that the European biodiesel production using rapeseed as a raw material was virtually terminated.

"Oil World" said that the EU region's biodiesel production this year fell from 9.13 million tons in the previous year to 9 million tons, ending the long-term growth trend.

The report also stated that the US biodiesel production this year is expected to increase from 3.29 million tons in the previous year to 3.48 million tons, but the output of biodiesel will be reduced by 360,000 tons during the July-December period this year, but the US will produce biofuels next year. The outlook is still bright.

"Given the tight supply of soybean oil in the United States in 2012/13, the country's biodiesel output will still have certain difficulties."

The report pointed out that Argentina’s biodiesel output is expected to increase slightly this year to 2.45 million tons from 2.43 million tons in the previous year, while in 2011, the country’s biodiesel output increased by 600,000 tons.

The report stated that "Argentina's biodiesel producers are currently facing a significant decline in export sales and a sharp reduction in domestic consumption."

The sluggish soybean output has led to higher soybean oil prices, which has also caused Brazil's biodiesel production this year to fall from 2.35 million tons in the previous year to 2.29 million tons.

However, Brazil raised the requirements for the biodiesel blending ratio next year, which will make the country's biodiesel output brighter next year.

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