Center for Advanced BioEnergy Research, University of Illinois at Urbana-Champaign

Wednesday, May 16, 2007

Starbucks Next Cost Problem: Biodiesel

Last week I wrote about how ethanol was increasing milk costs and how this will impact the bottom line at Starbucks (SBUX). Today we need to look at biodiesel. Currently Brazil is famous for two things, coffee and ethanol. Their national ethanol program has allowed them to become independent of imported oil and now they are turning their sights on biodiesel. Researchers have found an economically viable way to turn coffee beans into biodiesel. The oil-extraction from coffee bean rate, now at 92% to 94% means the project will begin next year and this years harvest will be affected as coffee bean supplies are built in anticipation.

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