Biotech Updates

Positive and Negative Impacts of Biofuels in the Philippine Agricultural Landscape

March 9, 2007
http://ats.agr.ca/asean/4299_e.htm

A report by Senen Reyes of the University of Asia and the Pacific, Center for Food and Agribusiness, describes that the demand of ethanol and biodiesel will have a positive effect on Philippine agriculture in terms of adding value for traditional crops. On the other hand, it could also put pressure on the production of agriculture feedstocks and raises the issue as too how much area should be cultivated for food and how much should be allocated for fuel. These feedstocks include sugarcane, coconut, cassava, and corn, among others. The report estimates that for a 5% ethanol blend and an average annual gasoline consumption of four billion liters, about two hundred million liters of ethanol will be needed. This could be derived from 2.4 million tons of sugar cane, 0.5 million tons of corn, or 1.2 million tons of cassava. For biodiesel, about 70 million liters of biodiesel (as methyl esters) will be needed for a 1% blend, assuming an annual diesel consumption of seven billion liters. The requirement would need about 70,000 tons of coconut oil or palm oil, equivalent to an area of about 23,000 hectares of coconut, or 18,000 hectares of palm oil. Among the strategies identified to satisfy the demand of feedstock volume include an increase in harvested area, or an increase in productivity in existing areas. Based on a number of factors, sugarcane and palm oil were identified as potentially good feedstocks..