EU Set To Use More Than Half It's Vegoil Supply For Biodiesel
The EU will have to use more than half of its vegetable oil supplies to manufacture biodiesel by 2018, according to the OECD's latest agricultural projections.
Average vegetable oil prices are expected to be more than 30pc higher in real terms over the next decade compared with the average for 1997-2006 as a result, the OECD said.
Global ethanol demand will contribute to rising demand for coarse grains as feedstock, necessitating a 10-20pc hike in average crop prices in real terms over the next 10 years compared with 1997-2006, they added.
The report warns that episodes of extreme price volatility similar to the hike in 2008 cannot be ruled out in coming years, particularly as commodity prices have become increasingly linked to oil and energy costs and environmental experts warn of more erratic weather conditions, they concluded.
Average vegetable oil prices are expected to be more than 30pc higher in real terms over the next decade compared with the average for 1997-2006 as a result, the OECD said.
Global ethanol demand will contribute to rising demand for coarse grains as feedstock, necessitating a 10-20pc hike in average crop prices in real terms over the next 10 years compared with 1997-2006, they added.
The report warns that episodes of extreme price volatility similar to the hike in 2008 cannot be ruled out in coming years, particularly as commodity prices have become increasingly linked to oil and energy costs and environmental experts warn of more erratic weather conditions, they concluded.