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The impact on the food chain of using crops for non-food products

The impact on the food chain of using crops for non-food products. GRAHAM REDMAN. April 2013. WHICH STONE IS KEY?. Each stone represents a buyer, the bridge is the price. HOW ARE OILS PRICED?. EU OSR and Crude Oil Price Relationship. Source: HGCA / Andersons .

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The impact on the food chain of using crops for non-food products

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  1. The impact on the food chain of using crops for non-food products GRAHAM REDMAN April 2013

  2. WHICH STONE IS KEY? Each stone represents a buyer, the bridge is the price

  3. HOW ARE OILS PRICED? EU OSR and Crude Oil Price Relationship Source: HGCA / Andersons

  4. Biofuels Reduce Price Volatility Engels Curve on Agri-Commodities

  5. Biofuel Production (‘000 Barrels/Day)

  6. How do Biofuels affect Prices? • Increased demand for maize (or wheat) increases the price of other land based commodities • It does not make vegetables (or other land based goods) comparatively cheaper, but does make fuel cheaper (theoretically) • This demonstrates that agricultural inputs (e.g. land) are restricted • Biofuels now a maturing industry • Now we know how to produce 140 million tonnes more grain than we eat

  7. FUTURE OF RENEWABLES? • John Hayes, New Energy Minister - wind power sceptic • Owen Paterson, Environment Secretary - renewables sceptic • Energy Bill, reducing Renewables funds • EU Biofuels; proposals to remove support beyond 2020 • set in stone to 2020; no guarantees beyond then • note how Energy Crop Scheme subsidy removed • US biofuel subsidies being cut, even taxes possible • US biodiesel tax credits reinstated for 2013 • Even UKIP hates renewables

  8. UK COSTS OF PRODUCTION Nix Pocketbook costs of Producing Feed Wheat T/Ha 8.0 t/Ha

  9. NABIM WHEAT GROUPS

  10. WHO’S THE BIGGEST? All Grain Production by Major Region All Grain Exports by Major Producing Region Source: USDA / Andersons

  11. UK WHEAT TRADE UK Becomes a Net Wheat Importer by Processing More Source: HGCA / Andersons

  12. GRAINS AS COMMODITIES U.S. Corn Use for Feedgrain & Fuel Ethanol Source: Earth Policy Institute / Andersons

  13. Graham Redman • Direct 01664 503 207 • Office 01664 503 200 • gredman@theandersonscentre.co.uk April 2013

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