The product board MVO has made an analysis of the oils and fats market for biofuels for transportation.
The result is the 'Market analysis Oils and Fats for Fuel'.

The main reason for this report is the publication of the Renewable Energy Directive (RED). This directive aims at reducing greenhouse gas emissions, reducing energy dependency and creating employment in rural areas. This legislation has led to to a growing interest in vegetable and animal oils and fats as a source of renewable energy.

This publication is an update of the report published in December 2007 and is free to download from our website (see below). This update gives a clear overview of market developments in the global biofuels industry with a focus on the EU and its development in production capacities, volumes and consumption. Striking developments included the sharp increase of biodiesel production capacity in Spain and the strong shift of the EU biodiesel consumption from Germany to France in particular. Despite the poor market conditions for the European biofuels industry, the above three indicators showed a substantial growth.

Due to the increasing demand for raw materials from these industries the current and future supply thereof is also taken into consideration and the countries which play an important role in it. Besides attention to the (potential) supply within the EU the report also zooms in on countries outside the EU which play a major role in the global production of rapeseed/rapeseed oil, soybeans/soybean oil and palm oil. Attention is further given to the direct EU imports of biodiesel, which accounts for a significant part of the EU consumption of biofuels.

Full deployment of raw materials essential to future availability of oils and fats
The total deployment of raw materials (the so-called multi-sourcing strategy) is essential for the future availability of oils and fats for food en fuel. The authorities must apply a clear policy in this which is aimed at the long term and which creates a supportive investment climate.

The product board MVO identifies four concurring strategies which are necessary in order to satisfy future demand for oils and fats: 

1. Full application of all available raw materials, or in other words the so-called multi-sourcing strategy. This should apply not only for the production of biofuels for transport purposes, but also for the production of food and feed.
2. Streamlining of government policy in support of the multi-sourcing strategy. This means, amongst others:
   1. the abolishing of limitations concerning production, use and trade of existing raw materials,
   2. the adjusting of fuel quality and biofuel standards as to allow the application of multiple raw materials,
   3. the enlarging of the possibilities for the application of by- and residual products, like used frying oils and animal fats,
   4. the speeding up of the procedures concerning permits for the application of genetically modified organisms (gmo's) in the EU.
3. Improving of the existing raw materials' performance by the widening of the production area and the raising of average turnover per hectare.
4. Intensifying research and development to fasten the commercial introduction of new raw materials and biofuels.

In the Renewable Energy Directive (RED) durability requirements are included to which various raw materials used for the manufacturing of biofuels have to comply. These will influence the availability of feedstocks and may shift their trade flows. In April 2010, the European Commission will publish a "communication" about the implementation of the RED. Once this information is available, the Product Board for Margarine, Fats and Oils will publish an additional document to the "Market Analysis for Fuel Oils and Fats" which describes what this implementation means for the MVO industry. With this report and document MVO likes to contribute to the public debate about the introduction of biofuels.