Biofuel boom creates rapeseed demand in Argentina

Yellow fields of flowering rapeseed are a rare sight in Argentina, but strong global demand for biofuels is tempting more farmers to experiment with the oil-seed, especially as an alternative to wheat.

Farmers are expected to plant less wheat this year, partly due to government intervention in the market aimed at stemming rising food prices. Rapeseed oil is not consumed by Argentines, meaning the crop would escape such anti-inflation measures.
“People tend to think of wheat as a problem from a price perspective because it’s a political crop in Argentina, but that’s not the case with rapeseed,” said Diego de la Puente, an analyst at the agricultural consultancy Novitas.

Rapeseed, used to make oil and meal for animal feed, is the raw material of choice for Europe’s booming biodiesel sector, and demand is expected to grow strongly as wealthy European countries seek to reduce their dependence on fossil fuels.

Gulfnews