Biofuel boom to boost demand for corn, sugar and vegetable oils

Global biofuel production could increase by nearly 70% by 2030 compared with 2025, significantly boosting demand for corn, sugarcane, vegetable oils and other agricultural feedstocks, according to a study by Chatham House and the Forest Stewardship Council.

The expansion is being driven by new and higher biofuel blending mandates introduced or proposed in the US, Brazil, China, India, Indonesia and the EU. Higher fossil fuel prices are also improving the competitiveness of ethanol and biodiesel.

If all proposed mandates are fully implemented, the land needed to produce biofuel feedstocks could more than double by 2030 compared with 2023. This would require around 36 mln ha of additional land.

Demand is expected to rise particularly for traditional biofuel feedstocks such as corn, sugarcane and other food and feed crops. This could intensify competition between energy and food uses of agricultural commodities and support prices in these markets.

Amid the energy crisis, crude oil prices have risen by nearly 40% since late February, while corn and sugar prices have gained around 20%. Further expansion of biofuel programs could keep demand for agricultural feedstocks high in the coming years.

Tags: corn, vegetable oils, sugar, biofuel, global market, global demand