The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Manav Gupta - UBS Investment Bank, Research Division - Analyst
: My question first is on a little bit on the macro side. How do you view the recent staff proposal by CARB which increases compliance by 50% by
2030, also has the [AAR] mechanism, which pulls forward the program in case of over generation of LCFS. Do you believe this will be supportive of
RD economics once it kicks in 2025?
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NOVEMBER 08, 2023 / 2:00PM, DAR.N - Q3 2023 Darling Ingredients Inc Earnings Call
Question: Manav Gupta - UBS Investment Bank, Research Division - Analyst
: Okay. I'm assuming you're basically referring to the fact that the [AAR] will pull forward the program into 2024. So the program could actually start
in third quarter 2024?
Question: Manav Gupta - UBS Investment Bank, Research Division - Analyst
: Okay. Very quick follow-up is on Slide [11]. You indicate lower fat sales volume were $32 million year-over-year headwind and lower protein sales
volume were a $13 million year-over-year headwind. Given that integration is going well for both valley and FASA, should we assume this was just
a temporary blip and the volumes will come back as we go ahead?
Question: Paul Cheng - Scotiabank Global Banking and Markets, Research Division - Analyst
: Randy, trying to understand sequentially from the second to third quarter, the Feed ingredient revenue is down. The sales volumes is actually flat.
And all the market indicators, whether it's UCO, tallow or (inaudible) is actually up. We're trying to understand that what's causing the sequential
revenue drop from second to third quarter in the Feed business? That's the first question.
Question: Paul Cheng - Scotiabank Global Banking and Markets, Research Division - Analyst
: And so Brad, should we -- based on that means in the fourth quarter, we should see, comparing to the market indicator, your revenue, we see more
of an upside or then the lag effect is going to take longer than that?
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