Biofuels and food security in the US, the EU and other countries

Abstract

Clean Air Act Amendments (CAAA90), the phasing out of MTBE, establishing the Renewable Fuel Standard (RFS) and other factors have boosted US bioethanol markets, which are the world’s largest. US bioethanol is produced mainly from corn—more than 40 % of corn consumption has been used for the production of bioethanol since 2009/2010. The US is the largest corn producer and exporter in the world. Accordingly, increasing bioethanol consumption can have an impact not only on domestic corn markets but also on world corn markets. Soybean oil is used for biodiesel production, and more than 20 % of soybean oil consumption is used for biodiesel production in the US. Increasing soybean oil consumption for biodiesel could impact not only the domestic market but also world soybean products markets. Reducing GHG emissions is the main incentive for promoting the biofuel program in the EU, which is the world’s largest biodiesel producer. More than 25 % of world rapeseed oil consumption is used for biodiesel production in the EU. Accordingly, EU biodiesel production can have an impact on global vegetable oil markets. Other Latin American countries (Argentina, Colombia, Peru), Canada and African countries are producing biofuels. These Latin American countries have set up a biofuel mandate. However, the blending mandates have been challenging. Canada will not become a major player in the global bioethanol markets in the near future.