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Food industry fails to save on energy, researcher says

By Ahmed ElAmin, 16-Sep-2005

Related topics: Processing

A study showing that the European food industry failure to make significant improvements in energy efficiency over the past thirty years, has led to the researcher calling for governments and thesector to do more for the environment.

The call comes at a time when food processors are warning that high energy costs are cutting into their margins. The food and drink industry, as one of the largest sectors in the EU, is also underpressure to improve energy efficiency and reduce greenhouse gas emissions.

In her research, Andrea Ramírez found that while production growth has increased the energy requirements of the sector by an average of 1.8 per cent per year, savings in the amount of energyneeded to produce a unit of product have only led to an energy saving of 0.2 per cent.

Her conclusion is based on an analysis of energy consumption, energy efficiency and developments in the food supply chain in 13 European countries.

"There are a number of important reasons for the growing energy requirements in the food industry: the increased demand for feed production, a growing consumption per capita and an increasein the amount of transport - larger quantities of food have to be transported over greater distances," Ramirez said in a statement.

Ramirez, a researcher at Utrecht University's department of Chemistry, said unless significant improvements occur in the energy required per unit of product, the net requirements of the Europeanfood chain are set to increase.

"Such energy savings can be realised without harming the industry's economic growth," she said, "However, this will require greater efforts by the industry andpolicy-makers to improve the energy efficiency of the sector."

Some sectors, such as the dairy industry, have proven that reductions are possible, she claimed.

"Yet these improvements have mainly been due to the concentration of the industrial production, which in the majority of cases offers limited scope for the future," she stated.

The EU member states collectively agreed under a global agreement at Kyoto in 1997 to a eight per cent reduction in greenhouse gases. In June the European Commission adopted today a green paper onenergy efficiency. The Commission wants to put energy savings higher on the agenda due to increasing oil prices and the prospects of the bloc having to meet 70 per cent of its energy needs throughimports by 2030.

The green paper sets as a target a saving of 20 per cent of energy consumption by 2020. The text emphasises that half of the savings could be reached through

a full implementation by member states of already adopted legislation on buildings, domestic appliances or energy services.

The Commission also suggested a wide range of policy tools, including financial incentives, regulations, setting of objectives, information and training and improving energy pricing and taxation toensure that the polluter pays.

A directive on energy efficiency in buildings must be implemented by member states no later than 4 January 2006. There is an additional three-year period to allow members to apply some provisions.

Prices for crude oil recently topped a record $70 a barrel, while natural gas hovers around $10 per million British thermal units (BTU). The Center for Global Energy Studies expects oil prices toremain above $50 a barrel throughout 2006. Historical prices for natural gas usually were around the $1.25 to $2 per million BTU, according to the Plastics Exchange in Chicago.

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