BioFuels Journal

London—The 2008 Frost & Sullivan South Africa Biofuel Feedstock Market Share Advancement Award is presented to Rainbow Nation Renewable Fuels (RNRF).

The company is building the biggest soybean processing facility in Africa, a particularly strategic choice of location since South Africa has the greatest demand for biofuels in Southern Africa.

This, together with its coherent, growth-focused strategy will support the expansion of the company's market share in the biofuels market.

RNRF are investing over $200 million in the construction of a soybean processing facility in South Africa -- the processing plant will be the largest of its kind in Africa.

The company's objective is to supply the local market with soybean meal, soybean oil and biodiesel.

Production is expected to commence in the first half of 2010

"The facility will consume one million tons of soybeans annually, providing a consistent local demand that South African farmers can rely on year after year," states Frost & Sullivan Research Analyst Jhill Johns.

"It will be able to produce an impressive 288 million litres of biodiesel per annum."

RNRF are collaborating and have agreements with Commercial and Emerging farmers to supply beans, and to ensure a sustainable supply of raw material to the facility.

In addition, they also support the Eastern Cape Government Department of Agriculture's Massive Food Production Programme; and the Accelerated Shared Initiative of South Africa (ASGISA) Integrated Cropping System.

"A key requirement of participants in this programme is its engagement with local farmers, agricultural cooperatives and emerging-farmer groups to significantly expand their local supplier base of soybeans whilst developing the local farming community," explains Johns.

"The processing plant will also create significant employment capacity."

The location of the processing plant is well suited with regard to export markets.

South African soybean farmers currently do not produce enough crop. RNRF will be able to overcome initial shortages of soybeans by importing the shortfall via sea freight.

"Infrastructure from Port Elizabeth to the Western Cape and Gauteng regions is reasonably established and will allow RNRF to efficiently transport all products to its domestic consumers," adds Johns.

"Soybean from surrounding areas will be transported to the facility by truck while storage facilities on site will be in the region of 60,000 tonnes."

RNRF will produce approximately 800,000 tonnes of soybean meal for the animal feedstock market.

The company's operations will improve food availability for the domestic market and ensure food security.

"The facilities' local soybean meal production will be a boost for local livestock industries and will also reduce South Africa's balance of payments which is strained by increasing imports of soybean meal," states Johns.

"In addition to these markets, RNRF will also be targeting South Africa's growing mining sector to advance its strategic objectives."

The Frost & Sullivan Award for Market Share Advancement is presented to the company that has demonstrated excellence in increasing market share within its industry.

The recipient has demonstrated strategic excellence in product innovation, marketing, and sales strategies that have resulted in the largest gain in market share over the past year.

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