Cattle lotfeeders have welcomed a new report that has recommended government support for the Australian biofuels industry be removed because the costs outweigh the benefits.
Australian Lot Feeders Association vice president, Jim Cudmore, says the report has added to the considerable weight of evidence around the world "that Governments need to rethink their support for biofuels and in particular grain derived ethanol production".
He says the report, "Biofuels - at what cost?" by the International Institute of Sustainable Development
found that Federal Government support for the biofuels industry was as much as $95 million in 2006-07.
"Alarmingly it found that not only was Australian Government assistance per litre of ethanol greater
than in the US (65c versus 47-57c) but it was forecast to increase further to 2011," Mr Cudmore says.
"The effective rate of assistance for sorghum-derived ethanol production at 240pc was also massively higher than for intensive livestock industries (5pc) that are forced to compete with the ethanol industry for grain.
"This situation is distortionary, unfair and inconsistent with Australia's stance in support for deregulation and reduced Government protection.
"The study states that Government grain derived ethanol industry assistance is not cost effective, should be removed and that the objectives for biofuels could be cheaper met through other means.
"This conclusion supports the findings from the Federal Biofuels Taskforce, ABARE, the Parliament
of Australia and the Victorian inquiry into biofuels."
* The report can be downloaded from http://www.iisd.org/pdf/2008/biof uels_subsidies_aus.pdf