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The EU puts limits on agricultural production

The EU puts limits on agricultural production


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By Pablo Adreani

This week I participated in Paris in a global meeting of the main oilseed producers associations in the world. The topics on the discussion agenda had a certain common denominator. The growing attack by NGOs, the vast majority environmentalists, on agricultural producers; the resistance of consumers to transgenic crops that has led to the passage of increasingly restrictive laws on production, mainly in the European Union (EU); the increasing limitations in the use of biofuels; and the greater demands of the governments of the European Union towards the production systems.

Biofuels.

For two years there have been debates in the EU about proposals that will increasingly limit the consumption of biofuels. Let's see how the current situation is. Since 2006/07 there has been a sharp increase in the consumption of biofuels, due to the increase in the price of oil and the obligation to use them in a cut with fossil fuels. As of 2010, the production and consumption of biofuels stopped growing, reaching nine million tons. Imports have remained in the range of one to two million tons. Biodiesel's place from rapeseed oil in the EU means that 70 percent of total rapeseed production is used for biodiesel. It is followed in second place, with 10 to 12 percent, palm oil as a raw material to produce biodiesel, and soybeans with a participation of five to six percent. In recent years, the use of biofuels from waste oil and animal fats has started to increase.

As of 2009, biodiesel began to be used in passenger transport, based on the European Parliament's rule that requires 10 percent to be used in this sector. This caused a reduction of six percent in the emission of gases.

According to EU regulations, biofuels from crops originally used for food cannot be used after 2020. The idea is to set a maximum threshold of five percent to use biofuels in transport.

There is no intention to renew the use of biofuels in transportation and this is generating strong opposition from producers.

In this sense, the associations of European producers will lobby to maintain the demand for biofuels, and not validate the proposal of the environmentalists.

In terms of the impact on the markets, we can say that the greater demands of the EU in the production of agricultural raw materials, limiting the use of agrochemicals and preventing the use of transgenic crops, will have a direct impact on the global production of the EU. It will try to ensure that the new member countries of the bloc have the responsibility of supplying its internal demand. It will also have, as an indirect consequence, the increasing dependence on imports of vegetable proteins.

For example, the EU is the world's leading importer of soybean meal, and it comes mainly from Brazil and Argentina.

In terms of global analysis, the greater restrictions that the EU imposes on its producers are equivalent to gradually reducing the agricultural area and its resulting production. What generates greater demand for its imports and having an impact of rising prices as a long-term trend.

South America will once again have the opportunity to supply this growth in world demand, not only because of the increase in per capita income but also because of the restrictions that developed countries increasingly impose on their producers.

The voice


Video: EU Agriculture- CAP- Produce food (July 2022).


Comments:

  1. Leonce

    Excuse me, I have removed this message

  2. Beartlaidh

    I offer you to come over to the website where there are many articles on this matter.

  3. Tosar

    This situation is familiar to me. I invite you to a discussion.

  4. Sajora

    Bravo, this magnificent thought has to be precisely on purpose



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