German sugar crop sweetened by bioethanol
Germany's sugar farmers are targeting sales to the bioethanol industry to shift a large crop this season.
Germany is forecast to produce 3.6 million tonnes of refined sugar from its 2008/09 crop, in excess of the country's European Union sugar production quota of 2.7 million tonnes, which has been cut as part of EU reforms to curb farming subsidies.
The bioethanol market is a growing outlet, but farmers face competition from the grains sector where falling prices have made cereals a viable biofuels feedstock.
With 178,000 tonnes of unsold sugar from last season added to this season's production quota, German sugar industry body WVZ estimates the country will produce 956,000 tonnes of sugar outside its EU quota, which cannot be sold as food.
With Germany raising its biofuel blending levels with fossil fuels in 2009, bioethanol demand is likely to be high.
Germany is raising compulsory biofuel blending as part of its programme to cut greenhouse gases which are said to contribute to global warming. Oil companies must achieve these blending levels, which in turn raises demand for biofuel raw materials.
Two bioethanol plants owned by German sugar company Nordzucker use only sugar as a feedstock. Bioethanol producers, including Verbio and CropEnergies, said earlier this year they would use more sugar as feedstock to replace expensive grain.
Germany is forecast to produce 3.6 million tonnes of refined sugar from its 2008/09 crop, in excess of the country's European Union sugar production quota of 2.7 million tonnes, which has been cut as part of EU reforms to curb farming subsidies.
The bioethanol market is a growing outlet, but farmers face competition from the grains sector where falling prices have made cereals a viable biofuels feedstock.
With 178,000 tonnes of unsold sugar from last season added to this season's production quota, German sugar industry body WVZ estimates the country will produce 956,000 tonnes of sugar outside its EU quota, which cannot be sold as food.
With Germany raising its biofuel blending levels with fossil fuels in 2009, bioethanol demand is likely to be high.
Germany is raising compulsory biofuel blending as part of its programme to cut greenhouse gases which are said to contribute to global warming. Oil companies must achieve these blending levels, which in turn raises demand for biofuel raw materials.
Two bioethanol plants owned by German sugar company Nordzucker use only sugar as a feedstock. Bioethanol producers, including Verbio and CropEnergies, said earlier this year they would use more sugar as feedstock to replace expensive grain.
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