Exciting times ahead
"Huge potential and exciting times lay ahead for the bio fuels industry in Wales," was how NFU Cymru's South East Wales Arable Chairman Ed Thomas summed up the annual meeting held in the Senedd in Cardiff Bay recently.
NFU Cymru members and Assembly members, including the Rural Affairs Minister Elin Jones, gathered at the Senedd for the annual NFU Cymru South Wales arable meeting which this year took the form of a debate on the future of the bio fuels industry in Wales and the UK.
Dr Naylor Firth started off the debate by informing members about the science behind the industry and the future direction and advancements in technology that would increase the efficiency of production. Dr Firth said, "I believe that this industry has huge potential to improve the livelihood of farmers across the arable growing areas of Wales and meeting the Government's renewable transport fuel obligation will be a major driver in this industry. Many farmers can potentially benefit from this growing market."
The second speaker was the NFU's senior economist Carmen Suarez who gave a presentation on the economics of bio fuel production. Ms Suarez informed members that the UK is more than capable of meeting the renewable transport fuel obligation rate of 5% by 2010.
Ms Suarez then went on too talk about the effect on food prices. She said, "All things being equal we will see a modest rise in food prices due to bio fuel production but it is important that we keep this in perspective.
"Retail prices have not fallen in line with lower producer prices over the years so there is absolutely no economic imperative for them now to rise just because producer prices are recovering."
Mr Martin Savage, Trade Policy Manager at the National Association of British and Irish millers gave a food manufacturers' perspective on the situation and Mr Graham Perkins from Pembrokeshire Machinery Ring spoke to members about the opportunity for co-operation between farmers in bio fuel production. He said, "There are many opportunities ahead and it is important that we as farmers work together in order to dictate the future shape of this young industry and enable us to direct the future and make sure we realise the potential returns as farmers and not be dictated too by others and in order to do this we need to work in co-operation."
