QRFA: Ethanol fuel tide carries all industries

By Queensland Renewable Fuels Association | February 08, 2017

Since the Queensland ethanol fuels mandate, discussions have commenced over the effect it has on other agricultural industries such as grain and livestock.

Queensland Renewable Fuels Association is addressing all concerns and questions about the significance and affects the ethanol fuel industry has on these productions.

Larissa Rose, managing director of QRFA, acknowledges that the ethanol industry does impact agricultural industries but not how it is often perceived.

“Ethanol production can slightly raise grain prices, which supports a stronger rural economy by supporting grain farmers. This price increase has prompted farmers around the world to expand planted acreage of grains in order to keep the supply and demand in balance. Both spot and forward grain markets have developed to a large extent, giving opportunity to both Australian farmers and Australian grain users to manage their grain price exposures.”

“Ethanol production creates jobs, builds a stronger main street and because it helps improve the price of grain, it improves the income of grain farmers, who put money back into their local community,” Rose said.

How ethanol benefits the livestock is by the production of distillers grain which is a high fat, high protein and high fibre feedstock used to feed cattle worldwide. This process is when starch is removed from the grain and converted to sugar to ferment into ethanol.

“As the old saying goes ‘a rising tide carries all ships.’ A strong rural economy makes all agriculture more sustainable. The agriculture industry will always be affected by other sectors but what needs to be considered most is that by supporting the ethanol industry you are supporting the Australian economy, environment and farmers,” Rose said.  

Studies have shown that 80 percent of the revenue generated from an ethanol plant is spent within a 100 kilometre radius of the plant. That translates into direct investment back into local business and the economy. 

QRFA is the peak state-based industry body that supports and advocates for the renewable fuel industry.

For more information please visit the QRFA website www.qrfa.com.au