1. THE IMPACT ON THE FOOD CHAIN OF USING CROPS FOR NON-FOOD PRODUCTS April 2013 GRAHAM REDMAN

2. WHICH STONE IS KEY? Each stone represents a buyer, the bridge is the price

3. HOW ARE OILS PRICED? EU OSR and Crude Oil Price Relationship Source: HGCA / Andersons

4. Biofuels Reduce Price Volatility Engels Curve on Agri-Commodities

5. Biofuel Production (‘000 Barrels/Day)

6. How do Biofuels affect Prices? Increased demand for maize (or wheat) increases the price of other land based commodities It does not make vegetables (or other land based goods) comparatively cheaper, but does make fuel cheaper (theoretically) - This demonstrates that agricultural inputs (e.g. land) are restricted Biofuels now a maturing industry Now we know how to produce 140 million tonnes more grain than we eat

7. FUTURE OF RENEWABLES? John Hayes, New Energy Minister - wind power sceptic Owen Paterson, Environment Secretary - renewables sceptic Energy Bill, reducing Renewables funds EU Biofuels; proposals to remove support beyond 2020 - set in stone to 2020; no guarantees beyond then - note how Energy Crop Scheme subsidy removed US biofuel subsidies being cut, even taxes possible - US biodiesel tax credits reinstated for 2013 Even UKIP hates renewables

8. UK COSTS OF PRODUCTION Nix Pocketbook costs of Producing Feed Wheat 8.0 t/Ha T/Ha 8.37.98.07.76.7

9. NABIM WHEAT GROUPS

10. WHO’S THE BIGGEST? All Grain Production by Major Region All Grain Exports by Major Producing Region Source: USDA / Andersons

11. UK WHEAT TRADE UK Becomes a Net Wheat Importer by Processing More Source: HGCA / Andersons

12. GRAINS AS COMMODITIES U.S. Corn Use for Feedgrain & Fuel Ethanol Source: Earth Policy Institute / Andersons

13. THE LONG-TERM CHALLENGE World Population

14. Graham Redman April 2013 Direct 01664 503 207 Office 01664 503 200 gredman@theandersonscentre.co.uk