Agriculture, manufacturing unite behind Australian national ethanol, biodiesel mandate

For the first time, four of Australia’s most influential agricultural bodies—the National Farmers’ Federation, GrainGrowers, Australian Sugar Manufacturers and Cane Growers—have joined forces to urge the Australian government to introduce an immediate national mandate for ethanol and biodiesel to bolster fuel security, support regional jobs and unlock new value-adding opportunities for Australian agriculture.

Together, the four bodies speak for more than 150,000 Australian farming businesses and over 16 sugar manufacturing facilities—spanning grain, oilseed, pulse and cane growers as well as sugar manufacturers—representing a nationally significant cross-section of Australia’s farming and regional manufacturing base and contributing billions to regional economies.

The agricultural and manufacturing industry bodies warn the current fuel crisis has exposed the strategic vulnerability created by Australia’s over-reliance on imported fuel, and the failure to fully utilize Australian-made ethanol and biodiesel as practical, domestic fuel security solutions.

They emphasize that domestically produced biofuels offer a practical, immediate pathway to reduce reliance on imported fuel while delivering economic benefits across rural and regional Australia.

A national mandate would create the demand signal needed to increase the use of existing domestic production, unlock new investment in regional manufacturing and provide Australian farmers and processors with a reliable pathway to turn crops and agricultural byproducts into higher-value products here at home.

The Australian farming and manufacturing bodies are calling for:

• An immediate national mandate for ethanol and biodiesel.

• A firm, escalating pathway to grow demand for Australian-made ethanol and biodiesel over time.

• The inclusion of Australian-made ethanol and biodiesel as eligible low-carbon fuels under the federal government’s Cleaner Fuels Program.

These measures would strengthen Australia’s fuel security, support regional manufacturing, create new markets for Australian agricultural feedstocks and secure the use of existing domestic capability in the national interest.

“What this situation has shown is how vulnerable Australia is to global shocks and how quickly disruptions to critical inputs can put food production and regional businesses at risk,” said Mike Guerin, CEO of National Farmers’ Federation. “Quite simply, we cannot afford to be in this position again. Farmers already supply products that power biofuel industries overseas, it’s only logical and smart to support a domestic industry. A strong domestic biofuels industry will have the added benefit of helping diversify market opportunities for producers, a key element of risk management.”