Setting the Example

Brazil, Business News/Analysis, European Union (EU), Farming/Growing, Feedstocks, Infrastructure, Opinions, Policy, Sustainability

January 2, 2013

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by Robert Vierhout (ePURE/Ethanol Producer Magazine) … Hopefully, European regulators will take note of what has happened. If they are intellectually honest, they should acknowledge that if the U.S. biofuel policy has no real negative impact on the food/feed market, then surely the European policy cannot have any impact at all. Compared to the U.S. volumes, the European volumes are simply too small to have any significant impact. Even the estimated volumes for 2020 are small, comparable in size with today’s ethanol production in the U.S. Unfortunately, EU regulators seem to be under the spell of Big Food and the self-righteousness NGOs no one seems to question.

I have always wondered why there is this anxiety in the EU around food.

Europe has become the biggest food importer in the world since it reformed the European Common Agricultural Policy. This reform was partly the result of international trade agreements. Land the size of Germany (35 million hectares, or 86 million acres) is needed outside Europe to feed Europeans. The result is that Europe has taken arable land out of production year-on-year and we have created a huge protein deficit. It is not that we couldn’t produce these proteins ourselves, but we cannot do it competitively with soymeal. As the EU common agricultural policy no longer allows production support for farmers, we have no other option but to import protein, importing 35 million metric tons of soymeal annually to feed animals.

We reduced arable land use in Europe for another reason. In 2006, under pressure of a World Trade Organization ruling, Europe reduced its sugar production by 6 million tons, equal to 700,000 hectares. A total of 83 sugar refineries had to be closed. Europe was restricted in its sugar exports and mainly Brazil is benefiting from this situation. This 700,000 hectares can be used for growing wheat or corn for ethanol production. It would not impact on land outside the EU, nor commodities for food use.

According to the Food and Agriculture Organization of the United Nations, the EU is taking 500,000 hectares of arable land out of production each year. Yet, it seems that this is not enough; another 7 million hectares should be taken out of production to boost green farming. At least that is what the European Commission proposed as part of another reform of Europe’s agricultural policy. READ MORE

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