Marketing 101: Biofuels Market Extends Beyond State Border

• We’ve heard a lot of talk during the Iowa biofuels mandate debate about national security and foreign oil dependency. These are extremely important issues, but should be addressed at the federal level using an integrated approach – working with retailers, producers and vehicle manufacturers. The federal government has implemented increased fuel economy standards and new rules for the renewable fuels standard with positive results. This combination of efforts will help us decrease our dependence on foreign oil more effectively than individual state biofuels mandates.
  
  
• Iowans should take a global perspective on biofuels. We should look for more demand in the global marketplace. Supporters of the mandate recently shared an analogy with the House Ag Committee, pointing to Texas. While they are no longer a top oil producer, the state continues to enjoy significant revenue through value-added services. This ongoing success, however, was not acquired by forcing Texans to buy Texas oil. It was developed by taking a strong, global leadership position in the oil industry. If Iowa is going to maintain and enhance its biofuels leadership position, it will not be by eliminating supplier competition and fuel choice in Iowa.
  
  
• As we’ve said from the beginning, our coalition supports biofuels, we simply oppose product mandates. We agree that renewable fuels offer great potential for Iowa farmers and entrepreneurs. So let’s develop a sound, global business strategy to grow this industry with strategic marketing strategies rather than free-market-corrupting mandates.
  
  
• A new report from Pike Research, a Colorado-based cleantech market research and consulting firm, says biodiesel has a bright future. Innovations in feedstocks will begin to have a meaningful impact on world energy markets over the next several years. They predict industry revenues will climb to $71 billion worldwide by 2020 – up from a projected $18.4 billion this year. Big picture thinkers are not focused on an additional 45 million gallons with in-state mandates.