Agriculture

Agriculture and forestry are increasingly seen as integral part of the supply chain of the renewable energy sector in particular for biofuels such as biodiesel and ethanol. Low value biomass is becoming another important feedstock for biogas and green charcoal. One of Vital Planet's core activities is industrial processing of biofuels. As the price of feedstock is by far the largest cost factor in that business, in order to be successful it is virtually mandatory to be involved in agricultural development which is the key to plentiful, affordable feedstock. An optimal plan includes a combination of industrial and agricultural competence plus land ownership. Therefore, Vital Estates works with an international team of experts on sustainable agricultural development, targeting multi purpose solutions to optimize yields, to improve soil quality and to untangle the indefensible competition between cropping for energy and for food.

Outsourcing
Vital Planet has developed a unique supply strategy to satisfy its demand for feedstock in the biofuels division. This strategy is based on short/medium term contracts, outsourcing the production to cooperative farmers who guarantee to grow specific feedstock according to certain sustainability criteria, and consent to regular auditing by an independent supervisory body. This added value model allows to introduce a certified label of a quality standard for sustainable biofuel feedstock production in order to comply with future sustainability policies on biofuels, which are expected to be implemented in a number of countries shortly.

Oilseed Crushing
Souring prices and shortage of vegetable oils on the global market is a growing concern to biofuel producers. Scarcity of oilseed crushing capacity in most developing countries makes it a valid strategic issue for Vital Planet to reduce the dependency of feedstock for Vital Diesel production and to add value in the supply chain of vegetable oils for the markets. The investment adds considerable value to local rural economies and improves the company's bottom line.