Researching a Global Business Market

We were approached by the Company President of a U.S. firm who were proposing to builid a biodiesel plant in North America, although the exact location and production process had not yet been decided (eg whether to use centrifuges in the process or not). Along with the biodiesel plant, there was also a proposal to build an associated mill to crush rape seed and produce rape seed (or canola) oil. This oil would then be used as the feedstock for the biodiesel plant.

The economic viability of the project was based on supplying biodiesel (and possibly any excess canola oil) to the US and Canadian markets. However, as part of the overall project analysis, a review of possible export opportunities to the EU market was also considered necessary. If this was viable, it may have effected the location of the plant to facilitate transport links.

BDRI Ltd were asked to investigate the size and growth of the overall EU biodiesel market including:

  • size of the EU market compared to the World market
  • current EU biodiesel demand, drivers and forecast growth trends
  • current EU production capacity and forecast growth trends
  • what production technologies are used
  • overall feedstock supply
  • any EU issues which may affect the future

As a result of this initial investigation, the research was then focused on Germany and the UK. Please see the following case study for more information.

Having defined the objectives, the first part was to conduct desk research (sometimes called secondary research). This was principally conducted through the internet, although the local council library and University libraries also provided additional sources of information.

Government sources of information were searched for relevant information. These sources included:

  • Office of National Statistics website eg www.statistics.gov.uk
  • UK Government Departments websites eg www.defra.gov.uk
  • Similar Government websites from other countries eg US, Germany etc eg www.usda.gov
  • European Union websites eg ec.europa.eu/eurostat

News media sources such as the BBC, Financial Times and the Economist were consulted, as were professional bodies and trade associations linked to the subjects. Other companies and competitors supplying into the market were also investigated.

Reports published by other research firms, management consultancies and academic institutions were reviewed, although care was taken to cross reference and substantiate any figures, where possible. Sources included:

  • Research firms – Mintel, Keynote, Datamonitor, Forrester etc
  • Management consultancies – McKinsey, PwC, KPMG etc
  • Universities
  • Other national and international bodies within the industry
  • Other independent bodies

The report collated this secondary information and presented conclusions and recommendations for further action. An abbreviated copy of the report (edited to remove information restricted by confidentiality agreements) is below.

EU Biodiesel Market and Production

The (understated) response of the Company President was:

Thank you for your excellent note

Understated perhaps, as the final report (including both this overall analysis and the Germany and UK focus) was almost 100 pages!

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    Tel: 0845 8056705
    Email: info@bdri.co.uk

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