German beer business is being hampered owing to more and more farmland now being used for harvesting the Biofuel crops.
As per a recent report "Biofuel Market Worldwide (2007-2010)" published by RNCOS it has been found that the policy makers in Germany have devised various instruments for promoting the competitiveness of bio fuel from domestic production. These instruments are targeted towards raising Biofuel's share to around 5.75% by the year 2010 in line with EU objective.
Brewers in Germany may be forced to raise beer prices in the coming months. Since increasing area of farmland in the country is now being used for growing subsidized crops used for obtaining bio fuels and not beer, thereby causing price rise on the ingredients of beer. Of the total 12 million hectares of farmland in Germany, almost two million is already being used to cultivate the plants that can be converted in to bio fuel. The area used to grow barley in the country is receding by nearly 5% a year.
"Many brewers have no choice but to raise their prices. They decided not to pass on the three-percentage point rise in value-added tax that came into force in Germany on Jan. 1, 2007 but in this case they have no alternative," as per Kai Schuerholt, German brewers' association's spokesman, as reported by DW-WORLD.DE on April 23, 2007.
"Biofuels are monopolizing the land," said Manfred Weizbauer, German millers' federation's head, which is necessitating a cut in subsidies that are granted to Bio fuel crops, as reported by DW-WORLD.DE on April 23, 2007. Bio fuel's impact isn't confined to beer only, bread prices may also see a rise of roughly 10% due to reduced production of grain, warned the German bakers' federation.
As per the RNCOS report "Biofuel Market Worldwide (2007-2010)", "Germany was the leading Bio diesel producer amongst the EU nations with its output reaching almost 1669000 Tons (2002.8 Million liter) during 2005. Germany, whose output grew by roughly 61.3% as against 2005, represents more than half of European Union Bio diesel production (52.4%)."
This research reports on "Biofuel Market Worldwide (2007-2010)", also addresses some interesting issues for today's Global business environment, such as the opportunities that exist for Biofuel in the global market, driving factors for the Bio fuel market worldwide, various government support programs and major Biofuel projects, and so on.
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