Bakers Association urges Biden government to overturn biofuel reforms

The American Bakers Association (ABA) is pushing the Biden administration to lessen biofuel requirements, arguing that using fuel made from crops could raise the cost of donuts, bread, and other foods.

The trade group that represents some of the biggest baked goods companies in the U.S. such as the grocer Kroger, donut maker Krispy Kreme, and Tastykake’s parent company Flower Foods, met with the Environmental Protection Agency (EPA). The group requested the authority to reduce blending mandates, particularly for biodiesel.

The EPA is considering how much biofuel, such as corn-based ethanol, should be blended with gasoline and diesel under the Renewable Fuel Standard. The trade group is petitioning to lower the percentage of biofuel to 2019 levels or block a potential increase to the percentage.

Robb MacKie, the president of ABA said that the group has met with lawmakers involved in the issue to press its case.

The Hill reported that the Association has spent nearly $114,000 on lobbying through the first half of 2021, almost doubling its spending from the same period last year.

Mackie said the group held the meetings because its members are hearing from suppliers of soy and canola oil - staple ingredients in many foods - that they could run short of stocks by the end of the year as demand from the biofuels industry increases in global markets.

The U.S. Labor Department's Bureau of Labor Statistics stated that the average price of food in the U.S climbed 2.4% year-over-year, in June, rising from the previous 2.2% increase.

The oil industry is backing the trade group, citing that the cost of acquiring the biofuel could prove to be very expensive for small oil refineries. Meanwhile, biofuel industries believe that plant-based fuels could cut down on carbon emissions and help farmers.

Currently, the domestic production of biodiesel, is around 130,000 barrels per day, according to the U.S. Energy Information Administration.

The Biden administration has been urged by Midwest senators to include biofuels in the President’s climate agenda to support farmers.

(With inputs from The Hill)

Picture Credits: Reuters