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The European Parliament has voted against a draft delegated regulation from the European Commission that sought to categorize soybeans as a feedstock carrying a high risk of indirect land-use change (iLUC). This rejection has been met with approval by Germany's Union for the Promotion of Oil and Protein Plants (UFOP), which asserted that the proposed regulations would have had a detrimental impact on the economic viability of soybean cultivation and processing within the European Union.
A significant ramification of the suggested classification would have been the imposition of limitations on the utilization of soybean oil in biofuel production. UFOP highlighted that, had the regulation come into effect, soybean oil—a co-product of soybean processing—would no longer have been eligible to contribute towards national transport quotas and climate targets when employed as a biofuel feedstock. The European Parliament's decision to reject this proposal ensures the continued viability of this crucial marketing channel for soybean oil.
UFOP also pointed out a clear inconsistency between the proposed restrictions and the EU's broader commitment to enhancing domestic plant protein output. Concurrently with its rejection of the soybean classification regulation, the European Parliament endorsed the EU Protein Plan, an initiative aimed at expanding the cultivation of protein crops. The organization argued that promoting soybean production within Europe becomes illogical if regulatory measures simultaneously diminish the market opportunities for soybean processing products.
For European producers, the capacity to market all outputs derived from soybean processing is vital for sustaining purchase prices and maintaining the profitability of their cultivation efforts. UFOP advocates for the expansion of protein crop acreage to be primarily driven by market-based incentives. Furthermore, the organization suggested that origin labeling for ingredients, a feature anticipated under the EU Protein Plan, could provide additional support to producers.
Despite these domestic efforts, the European Union is expected to remain reliant on imported plant proteins for the foreseeable future. UFOP emphasized that all imported products must adhere to the requirements of the EU Deforestation Regulation (EUDR) and that these rules should be harmonized with existing sanctions regimes. The organization additionally urged for an end to deforestation and the conversion of natural areas, supported by effective penalties for environmental damage.
Source: UkrAgroConsult