Raw Material for Biofuel Production Is Available on 7% of the Cultivated Area

Business News/Analysis, Farming/Growing, Feedstocks, Field/Orchard/Plantation Crops/Residues, Germany, Infrastructure, International, Opinions, Policy, Sustainability

January 24, 2022

Print This Article Share it With Friends

(Union for the Promotion of Oil and Protein Plants (UFOP)) In 2020, crops such as cereals, oilseeds, protein, sugar and fiber plants, fruit, vegetables, nuts, etc. were cultivated on 1.4 billion hectares worldwide. Most of these products were used to feed the population. Raw materials for biofuel production were only produced on around 7 percent of the cultivated area.

It is very clear that biofuel production is mostly located where there are surpluses of raw materials anyway (maize and soybeans in particular). Without biofuels, these quantities would have to be placed on the world market, which would weigh heavily on raw material prices. The use of biofuel reduces the production surplus, creates additional value and reduces the need for foreign exchange to import crude oil or fossil fuels. This problem particularly affects poorer countries.

Another advantage is the simultaneous accumulation of high-quality protein feed during biofuel production. Their need is constantly increasing. The proportion and the quality of the protein feed have a significant influence on the prices of the raw materials. They also determine the extent of the cultivated areas. Biofuels are by no means the price drivers on the raw materials markets. If necessary, the raw materials cultivated for biofuel production are primarily available for the food supply. In the case of a politically motivated extensification of arable farming, as the EU Commission is currently pursuing with its reduction strategy for fertilizers and pesticides as part of the “Green Deal”, this supply option for “buffering” the demand for food would no longer apply. READ MORE

Don’t Bank on Food Getting Cheaper Quickly If Crop Prices Ease (Bloomberg)

Comments are closed.

Advanced BioFuels USA