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Agrofuels Workshop Background

The term “agrofuels” has been coined by social movements in Latin America to describe the use of food and oil crops produced in large-scale plantation-style production systems. These crops are processed and blended with petroleum and used as an energy source, primarily for motor vehicles. Biofuels on the other hand, describe the traditional use of wood, dung and other biological materials for fuel.

Agrofuels comprise of bioethanol and biodiesel. Bioethanol is made from starch plants (such as maize, wheat and cassava) and sugar plants (such as sugar beet and sugar cane). Biodiesel is produced from coconut oil, soybean oil, and other vegetable oils.

Given the increasing cost of petroleum, and concern over climate change, there has been a growing interest in agrofuels, which appear to pollute less than fossil fuels, and are considered ‘renewable’, because they can substitute for conventional fuels derived from finite mineral resources. Energy hungry economies in the North and big capital are desperately searching for new methods to produce energy and are increasingly seeking land and crops to produce agrofuels, both in order to maintain energy intensity, and to reduce carbon emissions.

Agrofuels embody the further entrenchment of the agribusiness model based on industrial agriculture, which includes the use of monocultures, genetically modified (engineered) organisms and agrochemicals. This model will inevitably result in environmental destruction and the impoverishment of societies, especially in rural areas.

In 2005, a grouping of industrialists established a lobby group called the Southern African Biofuels Association (SABA), to pressurise the South African government to subsidise large-scale agrofuels projects. That same year, the South African cabinet appointed a Biofuels Task Team (comprising national departments and state entities) to develop an industrial strategy for agrofuels.

A draft strategy released in November 2006 proposed a 4,5% agrofuels content in liquid fuels. After a public process to obtain comment, the target was reduced to 2,5%. The strategy identifies Cassava and Sugar Cane (ethanol), as well as Soy Bean and Sunflower (biodiesel) as key crops to help meet the target, but also promotes research into other crop varieties and crops ‘enhanced’ through biotechnology, as a means to increase production.

A critically important selling point for the Biofuels Strategy is to move subsistence farmers into commercial crop farming and create a value chain for agrofuels that would result in job creation and provide market access to such farmers.

Although touted as ‘green’ there are a number of negative potential issues relating to agrofuels that need to be addressed by South Africa. These include:
 
- Increasing staple food prices as wealthy nations compete with the poor for grain supplies.

- Although the strategy assumes job creation, large-scale agrofuel production is likely to use mechanised chemical-intensive agricultural methods that will impact negatively on both natural and sustainably cultivated areas and yield few jobs.

- Further multinational control over local land and water resources.

- Introduction of genetically engineered crops and other invasive species into the environment.

- The limited role of agrofuels in poverty alleviation and reducing energy poverty, if their production is focused on meeting external energy demands.

There is insufficient public information and debate concerning the possible consequences of engaging in agrofuel production. Vulnerable communities and small and medium scale farmers have had little opportunity to discuss and contribute viewpoints on the agrofuel agenda with regards to land rights, industrial agriculture, food security and access, and environmental degradation.

Although the initial enthusiasm for agrofuels has recently started to wane, there is still political pressure to establish an export-oriented agrofuels industry in South Africa. There is also pressure from elements in the agriculture and energy sectors to have the government support subsidy schemes that would help make agrofuel industry ventures financially viable, rather than to support subsidised public transport.

Growing crops for fuel will only exacerbate the pressure on land, soil and water. In addition, it will add to the current food crisis and the poor will always be the losers. South Africa is in the process of creating a land, water, food, environmental and humanitarian crisis, as well as a exacerbating the impacts of climate change. There is no evidence that there will be tangible benefits that will accrue to rural communities to justify the expenditure of large amounts of public funds to subsidise an agrofuels industry.

South Africa, together with Brasil, China, India, the United States and the European Commission are part of the International Biofuels Forum. The IBF has been established to aggressively promote an international market for agrofuels, and to force down the throats of the rest of the world, international standards to ensure that ethanol is turned into an internationally tradable commodity. The next meeting of the IBF is in Brasil during November 2008.

This workshop is being organised and hosted in order to share information about agrofuels in SA, and to discuss and agree upon an appropriate response.

Provisional workshop programme