EU: Biofuel subsidy cuts threat to commodity volatility - Copa-Cogeca
Europe's food producers have warned key commodity prices could become unstable should the EU push ahead with plans to scrap policies promoting the production and use of key biofuels.
The European Commission has accepted scientific advice that palm oil, soybean and rapeseed-derived biodiesel generate as many carbon emissions as fossil fuels because the cultivation of their feedstocks promotes the clearance of virgin land, including rain forest.
The scrapping of duty reductions, subsidies and minimum biofuel content rules for blended fuels in the EU is likely to follow, depressing demand for biofuels, especially if the EU's lead is followed elsewhere.
Pekka Pesonen, secretary general of European food producers organisation Copa-Cogeca, warned food prices could rise in Europe as farming is scaled back. "We feel it is highly dangerous to destroy one of our new economies [biofuels]," said Pesonen. "Worst case scenario, [food prices] might actually increase if you cut off 10-20% of production that is reserved for biofuels."
Furthermore, should European oil seed production fall, the region would become more dependent on imports, causing potential supply problems given many of these commodities worldwide are GM and not welcome in the EU. "The consequences of such a change would be difficult," Pesonen said.
Companies: The European Commission
EU regulation on country-of-origin labelling across all meats could mean an "added burden" to the food industry and consumers, the British Meat Processors Association has said....
EU rules on nutrition labelling and on the health claims food companies can put on their products benefit the industry, the European Commission has claimed....
The EU's regulation of the food industry could lead manufacturers to shift their R&D investment outside the bloc, UK food manufacturers have warned....
- ConAgra Foods: what could happen next? - analysis
- Why Mars rice plan not just crop-ticking exercise
- Greencore's food-to-go focus paying dividends
- How Danone aims to meet its 2020 objectives
- What could be benefit of US approval of GM salmon?
- Hovis plans cuts amid anxiety over UK bread demand
- Aryzta regional CEO steps down
- "Serious" suitors lined up for Chicken of The Sea
- Unilever sets 2030 carbon positive goal
- Fonterra, Bellamy's strike baby nutritionals partn