The realisation that the cost of biofuel crops grown in temperate climates is too high to support a viable biodiesel industry has lead Europe to look elsewhere for cheaper raw materials. Africa, with its appropriate climate, soil fertility, and low labour costs can produce oil for biodiesel much more cheaply than Europe. Biofuels have been supported as a development path by the Food and Agricultural Organisation (FAO) and other agencies of the United Nations (UN), with the proviso that projects are properly implemented to avoid any impact on food production or the environment. Unfortunately, unscrupulous companies can quite easily take advantage of desperate small farmers and naive governments, to drive unfair contracts.

As someone living in South Africa, with some experience of working in poor rural areas, the stories of wealth and benefits for small scale farmers entering the biofuels sector make little sense to me. The shear scale of the world’s biodiesel demand result in numbers which just don’t make sense. Ashenafi Chote, who opened this story normally produced 100 kg of maize, which indicates that he is farming, at most, 0.4 ha. With normal yields this would produce about 160 litres of biodiesel which would allow a medium sized MPV to travel some 2,500 km. Therefore, 10 farmers are needed to keep the MPV on the road for a year. If farmers are expected to only change a third of their land to castor, this means 3 million farmers are needed to produce just 1 % of the UKs biodiesel consumption. The logistics of it are just impossible, imagine millions of farmers wanting to deliver their crop and collect their few dollars at harvest time. So I believe all these projects are actually designed around large scale commercial production with the small farmer component used to put a “good spin” on the project.

Read more of this story »