On December 7, 2021, the U.S. Environmental Protection Agency proposed a mandated volume increase for biodiesel, a move that will further add strain to the delicate food supply chain and make it more difficult for Americans to find basic products on grocery store shelves and favorite foods in restaurants.
The American Bakers Association (ABA), along with a broad coalition of other edible oil stakeholders, strongly advocated for the Administration to pause the rate of growth of mandates for biodiesel. The group based its recommendation on overwhelming data illustrating the extreme pressures in the current edible oil market and food supply chain disruption impacts, that have been exacerbated by the COVID-19 pandemic.
“In the past several months, the combination of federal and state mandates, as well as tax credits, has led to a bidding war between biofuel producers and food producers such as bakers,” said Robb MacKie, President and CEO, American Bakers Association. “An already extremely tight supply and demand situation for U.S. soy oil would be exacerbated by the EPA’s Renewable Fuel Standard’s whopping 25% increase in advanced biofuel renewable volume obligations (RVOs) from 2020 to 2022.”
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