Friday, September 20, 2013

EU report: Brussels biofuels policy hikes food prices by up to 50%

If biofuels received no EU policy support, the price of food stuffs such as vegetable oil would be 50% lower in Europe by 2020 than at present – and 15% lower elsewhere in the world – according to new research by the EU’s Joint Research Centre (JRC).


The “significantly lower” results are because global prices for vegetable oils – which are 60% palm and soy oil – are “strongly driven” by their use as food, says the paper by the JRC, the EU's official scientific and technical research laboratory.

When more soy and palm oil are used for biofuels production, less is available for food use and the resulting scarcity drives food price inflation.

“Given that more than half of the vegetable oils are used for biodiesel production in the base (business as usual scenario) in 2020, any decrease in biodiesel production strongly affects the vegetable oil market,” the JRC study says.

READ MORE:  http://www.euractiv.com/energy/eu-report-brussels-biofuels-poli-news-530293

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