EU: The impact of the growth of bio-fuels production on malting barley

Jacques Fidelle of JF Consultant reported on the impact of the growth of bio-fuels production on cereals, oilseeds crops and malting barley, during the barley, malt & beer conference organised by Roger Martin International in Budapest on March 28-30.

Bio-fuels represent the new farming outlet. There will be an increased competition for acreage between food, feed and energy crops. The petroleum prices are due to increasingly influence grains and oilseeds markets, agricultural prices are becoming oil driven. In the USA the ethanol production capacities currently operating and underway (i.e. excluding new projects) will already need a corn supply in excess of 100 million tons or one third of the current corn USA yearly production.

In Europe, the 2010 objective of 5,75% incorporation of bio-fuels in road fuel consumption is due to propel the energy crops acreage from today 7% of the arable land up to at least 16%, would this be at all possible. Malting barley users are recommended to pay the right price to the farmer, contract grow and make use of the winter malting barley potential.

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