This report reviews whether the grain market and grain price can be stabilised by the variation of the use of grain in the EU-27's production of bioethanol. The time horizon of this study is 2020, whereby account is taken of the minimum 10% obligation for biofuel use in the EU-27. An economic computational model was used to develop a baseline scenario and a number of alternative scenarios for 2020. The alternative scenarios assume the use of a larger or smaller quantity of grain than in the base scenario for the EU-27's production of bioethanol. This variation depends on the availability of grain as compared to the baseline scenario. The effect of this variation on the grain price is then examined.
Report 2010-039 Stabilisation of the grain market by the flexible use of grain for bioethanol