Biofuel Feedstock Production Encounters Problems in SA

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Food Insecurity Complicates Land Use for Biofuel Feedstock Production in Southern Africa

CAPE TOWN – 17 November 2008 – Significant potential exists for additional crop production in Southern Africa based on land availability. However, growing crops for biofuel feedstock will only be realized if there is concerted effort from key stakeholders to address the food shortages in the region.

New analysis from Frost & Sullivan (https://www.chemicals.frost.com), entitled “Opportunities for Biofuel Feedstock Production in Southern Africa”, finds that the market is still in its development stage. Expansion of the agricultural sector to include crop production for biofuels has been hampered by the absence of coherent biofuel policies, a lack of resources dedicated to the agricultural sector, declining agricultural production and climate change.

“Available land is a key driving factor encouraging the production of agricultural crops for the biofuels industry,” notes Frost and Sullivan Research Analyst Jhill Johns. “Underutilization of land resources for agricultural production presents Southern African countries with an opportunity to access the growing global biofuels market. By doing so, these countries will also be able to derive numerous benefits, most importantly reducing their fuel and economic dependency.”

Southern African countries including Botswana, Mozambique, Namibia, South Africa and Zimbabwe have sizeable tracts of arable land available. Most of the crops that can be used as feedstock sources are already grown in the region, but the expansion of the current agricultural production to include crops for biofuels would require significant investments.

Southern Africa’s rapidly declining crop production has left millions facing starvation, with rural populations being the most affected. Although governments favor the establishment of a strong biofuels industry, they lack the financial resources to incorporate feedstock production into an already strained agricultural sector.

“Most countries in Southern Africa are net importers of staple crops,” adds Johns. “Crop production for biofuel feedstock purposes should however be over and above a country’s domestic food requirement.”

Opportunities for growing crops for biofuels may therefore be determined by the ability of the countries in the region to first increase production to sustainable levels for food requirements. It is also imperative that governments finalize their biofuels policies and stipulate clarity on the use of agricultural resources for feedstock production.

“Investors in biofuel feedstock would then be able to adopt a holistic approach, conducive to sustainable agricultural production,” advises Johns. “Alternatively, governments need to promote the use of non-food crops such as jatropha for feedstock purposes.”

If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants with an overview of the opportunity analysis of the Southern African biofuel feedstock market, then send an e-mail to Patrick Cairns, Corporate Communications, at patrick.cairns@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by e-mail.

Opportunities for Biofuel Feedstock Production in Southern Africa is part of the Chemicals & Materials Growth Partnership Service Program, which also includes research in the following markets: Sub-Saharan African Biofuels Markets; and South African Biofuels Markets. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company’s TEAM Research, Growth Consulting and Growth Team Membership™ empower clients to create a growth-focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents. For more information about Frost & Sullivan’s Growth Partnerships, visit https://www.frost.com.

Opportunities for Biofuel Feedstock Production in Southern Africa
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Contact:
Patrick Cairns
Corporate Communications – Africa
P: +27 18 468 2315
E: patrick.cairns@frost.com

https://www.frost.com