News Energy
'Mandatory biodiesel leads to expensive food'
The American Bakers Association, which includes some of the largest manufacturers of bakery products in the United States, is calling on the US government to tone down its ambitions for biofuels. That fuel, made from crops, is pushing up food prices, according to the organization.
With the call, the American Bakers Association is joining the debate on American energy policy. The criticism from the American Bakers Association is an unexpected boost for the American oil industry that has been fighting against mandatory biofuels for years.
Tight stock
The organization confirmed to Reuters news agency that it held talks with the Environmental Protection Agency (EPA) last week. The mandatory blending (especially in diesel) worries the Bakers Association. According to Robb MacKie, president of the American Bakers Association, several members have been told by suppliers that supplies of soybean and canola oil are dwindling and are likely to become tight towards the end of the year.
These oils are an important ingredient in many foods. "We're trying to raise the alarm without being alarmists," MacKie told Reuters. The bakers ask that the standards for admixture be lowered again to those of 2019 or at least not to raise the standard.
Clap for agriculture
The legislation introduced in 2005 is intended, among other things, to reduce dependence on oil in the agricultural sector. An additional effect is that a market for approximately 75 billion liters of oil has been created annually.
The National Biodiesel Board is vehemently against tinkering with blending standards. According to them, biodiesel is one of the cleanest fuels with low CO2 emissions on the market today. In addition, the organization points out that the agricultural sector is still recovering from (market) disruptions caused by trade wars and weather extremes. The consequences of the corona crisis are also still noticeable. Undermining the energy targets is therefore not a solution, according to the National Biodiesel Board.
EPA is currently in the process of determining what the admixture standards should be for the coming year under the new US energy law. This process has been delayed due to, among other things, the coronavirus and political sensitivities. About 40% of the soybean oil in the US goes into fuel, the rest is mostly processed in food. The average food price in the US has risen by 12% in the last 2,4 months.
Jurphaas Lugtenburg
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