MOVE AHEAD WITH BIOFUEL
STOP DISMANTLING COMMON ORGANISATION OF THE GRAIN MARKET
9/27/2006
The AGPB, AGPM and FFCAT have been actively supporting biofuel, in particular bioethanol. It is a strategic line for development for the grain sector and coincides with energy and environmental concerns in the European Union.
These professional associations have, however, protested against changes to conditions applying to the release of public stocks onto the market for conversion to energy. Since the meeting of the management committee on grain, held on September 21, it has been possible to conduct specific sales below the intervention price.
This is a serious threat to the Common Organisation of the Grain Market. Under these circumstances, intervention management will no longer be a systematic factor having a stabilising effect on markets. Furthermore, this new option introduces yet another element of uncertainty to the market, inevitably causing further disturbances.
This measure will therefore have a negative impact on both market regulation and on the income of grain producers, and will incur substantial expense for the EU budget. Different measures could be much more helpful in supporting the development of biofuel, and more than just an increase in acreage eligible for aid for energy crops, e.g. harmonisation of the measures adopted to develop biofuel in the different EU Member States, or even support for initiatives undertaken in the New Member States.