Developing a viable market for Jatropha feedstock production in the Philippines
2009
Espiritu, N.O. | Casin, M.C.S. | Palacpac, A.B. | Garcia, L.N. | Corpuz, E.B., Philippines Univ. Los Baños, College, Laguna (Philippines). Forestry Development Center
The transport sector accounts for the highest consumption of energy at 80% of the total oil supply in 2007. Hence, there is pressure to pursue the blending mandates of the Biofuel's Law. Among the potential energy crops, Jatropha curcas L. has been promoted as a feedstock for biodiesel production. Even with the dearth of information on the economic, socio-political, and technical aspects of Jatropha, many LGUs, private companies, as well as entrepreneurs, were emboldened to embark on Jatropha production which could help boost rural employment and income on the one hand, and a sustainable source of clean energy on the other. This study conducted an estimation and valuation of the economics of Jatropha feedstock production and a socio-economic impact analysis of Jatropha production, promotion and development both from the growers' and project implementors' perspectives. Investment analysis showed that Jatropha production is not a viable business investment at the current government-buying price of P4.50/kg of seeds. The total expenses in terms of labor operations and materials are greater than the expected revenues from the sale of seeds. Analysis of policies also showed that because of the prevalent view that biofuel feedstock production is a threat to food supply, market and non-market incentives are more pronounced for downstream investors like venture capitalist in processing plant than the upstream investors or the growers of Jatropha. In the light of these findings, the study has formulated several recommendations towards making a viable investment market for jatropha seed production.
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