Food industry urges caution on biofuel promotion plan

A plan to increase biofuel production could lead to an increase in prices for agricultural ingredients, in particular rapeseed, the bloc’s food industry association warns in a position paper.

The concern is expressed in a position paper published by the Confederation of the food and drink industries of the European Union (CIAA), which is calling for a careful monitoring of the effects of the plan on agricultural supplies and prices. The organisation also calls for biofuel production to be based on a diversified supply of agricultural products rather than just on one or two commodities.

..The organisation noted that its members are already facing price increases for rapeseed oil. According to Oil World, rapeseed oil prices recently were up to 45 per cent above the five-year average to 2000. Demand for rapeseed oil within the EU is forecast to increase by 26 per cent.

“This trend can be explained by different factors, notably the development of the biodiesel industry and the total shift of food demand from soy oil into rapeseed oil because of the GMO (genetically modified organisms) issue,” the CIAA stated.

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