Food industry calls for a more balanced biofuel policy

With the increasing use of some of their raw materials for the production of biofuels, the food industry is starting to call on the European Commission to take measures to ensure they do not face further price hikes for their supplies.

Recently the Association of Chocolate, Biscuits and Confectionery industries of the European Union (Caobisco) and the International Margarine Association of the Countries of Europe (Imace) spoke out against the setting of a mandatory target, saying it will damage the food industry by leading to a “serious” shortage of raw materials and price hikes.
“Biodiesel is grabbing an increasing share of our vegetable oil supply. The competition will be seriously distorted if mandatory obligations are included for the mineral oil companies” said Inneke Herreman, Secretary General of IMACE.

Rapeseed oil price doubled over the last five years and the price of cereals, starches, and glucose recently increased by about 20 per cent, the two organisations said in a joint statement. They blame governments and the European Commission for promoting biofuels through tax incentives. High crude oil prices have also stimulated production.

The result has been a growing conflict between the food and the energy industry for supplies.

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