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Arable farmers providing cereals for the biofuels industry may face reduced demand due to trade restrictions imposed by the EU. To maintain access to the EU biofuels market, countries must comply with the Renewable Energy Directive (RED) and have updated Sustainability data, such as Nomenclature of Territorial Units for Statistics (Nuts II) data.

Changes in biofuel standards in the EU market could impact the sourcing of feedstocks, both locally in the UK and globally. The UK, like many other countries, is awaiting approval from the EU Commission after submitting compliance data in May.

Biofuel plants like Ensus and Vivergo play a significant role in UK biofuel production. Traders warn that if UK cereals are no longer utilized for biofuel production, there could be an oversupply of feed wheat, potentially lowering domestic prices and extending the milling wheat premium.

NFU’s senior combinable crops policy adviser, Luke Cox, expressed concerns about the delay in EU Commission ratification of Sustainability data, which could affect the supply chain for UK growers. Currently, only a few countries have received full approval to supply the EU market, while others, including the UK, are still awaiting recognition of their compliance data.

The UK government commissioned a review of Nuts II values earlier in the year, with a report submitted to the EU Commission in May. However, approvals are still pending, causing uncertainty for businesses relying on these values for biofuel production.

Livestock feed ingredients, a by-product of UK biofuel production, could also face supply constraints if there are disruptions in the biofuels industry. It is crucial for the UK to receive technical recognition for its Sustainability data to ensure continued market access and supply chain stability.

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