UFOP says that without biodiesel blending vegetable oil prices would collapse further

July 16, 2019 |

In Germany, following the FAO’s publication of vegetable oil trade data that shows prices are at their lowest levels since December 2018, the Union zur Förderung von Oel- und Proteinpflanzen (UFOP) said that the price situation in the vegetable oil markets would be even more dramatic, if countries such as Argentina, Brazil, the US and Indonesia did not ease market pressure by raising national blending quota requirements for soybean and palm oil biofuels, which leads to a rise in producer prices. With production capacities of more than 6 million tons, Indonesia is the world’s largest producer of biodiesel. The country is promoting a program to launch diesel with a 30 per cent incorporation rate (B30). UFOP stated that while governments in Germany and other EU countries are hiding behind a “food-or-fuel debate” that doesn’t draw on hard facts, these states are demonstrating how “bioeconomics” work. The association assumes that the countries in question – except the US – will take this biofuels policy into account in their national climate and energy plans they are required to provide by the end of 2020 under the Paris climate protection agreement. UFOP is again calling for a clear political commitment to “cultivated biomass” as an option to decarbonize the transport sector.

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Category: Producer News

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