Biofuels may push up beer prices

I was giving a presentation on the CAP during this week and I was asked if ending it would threaten food security in Europe. My reply was that no one was advocating dismantling the CAP overnight, so any adjustments would be phased in, but that the real challenge to food security came from the rapid expansion of growing crops as biofuels. A structural shift is going on in farm markets. An illustration of this is what is happening to the price of barley which is used for beer, whisky and animal feed.

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Biofuels- a cold look at a hot issue

Biofuels have been all the rage lately among EU decision makers and Council seems bound on setting an ambitious new binding target for their use. As climate change has finally made it to the top of the political agenda biofuels are being hailed as the silver bullet. Everybody seems to agree they are also a key to the future of the CAP, but consensus ends there. Some see energy production as the perfect excuse to maintain and even restore production subsidies, while others see the opportunity to junk the subsidies as farmers will be making a living from selling (subsidised) biofuels.

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