FEDIOL calls for investigation into biodiesel imports as EU rapeseed markets face mounting pressure
FEDIOL, the vegetable oil and protein meal industry, has drawn attention to acute market developments due to massive increases of imported biodiesel into Europe.
The association said this is leading to “devastating consequences” for European rapeseed feedstock up to EU farm level.
Imports of renewable diesel or biodiesel classified as waste-based “are taking place at such scale that it has led to important disturbances” in the EU markets for biodiesel made from rapeseed oil and, consequently, also in the rapeseed and rapeseed-oil markets, FEDIOL stated.
“Over the last five months, prices for rapeseed oil have dropped significantly by over 30 percent to 800 euros (USD$859) per ton, driving down physical rapeseed prices for spot delivery from 625 euros (USD$671) per ton to 410 euros (USD$440) per ton over the same period,” the organization stated.
“Also, futures prices for new rapeseed crop, providing rapeseed farmers with a price indicator, have declined from about 600 euros (USD$644) per ton in early January to levels of about 400 euros (USD$429) per ton by mid-May,” FEDIOL added. “This will not only impact rapeseed farmers’ revenue, but also future planting decisions.”
These trends cannot be explained by other market developments, according to FEDIOL, and “are a signal that there is abnormal market behavior.”
FEDIOL further stated that “The magnitude of biodiesel imports’ growth is such that it raises question as to the authenticity of their classification as originating from waste streams. There is urgent need to investigate the legitimacy of these imports.”
In April, the International Sustainability and Carbon Certification system publicly raised the topic of potentially fraudulently mislabeled “waste-based” biodiesel entering Europe from Asia and is working to address this, at least from the perspective of sustainability certification.